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� � r housing trust fund, when established, will have characteristics similar to housing trust funds generally. Housing trust funds are permanently established reserves of capital, generating regularly renewable sources of revenue, that are dedicated to the production of affordable housing. Generally, housing trust funds are used to construct housing, rehabilitate housing, subsidize rents, assist in the purchase of homes, and subsidize other related costs such as impact fees for the development of housing. All of the above are usually targeted to the population segment with less than 120% of the median area household income. The monies for a housing trust fund can be obtained from a variety of sources such as from government housing programs, real estate activities, taxes, excess reserve funds or interest earnings on tax-exempt mortgage revenue bond reserve accounts, pension funds, and mineral or other resource extraction revenues. The funds collected in the housing trust fund are typically distributed through a Request for Proposal process, generally as loans, not grants, in order to maintain a revolving source of revenue. ALTERNATIVES AND ANALYSIS The- Department of Community Affairs Rule 9J-5 , Florida Administrative Code, requires local governments to include within their housing elements policies providing for the development of affordable housing for their residents. Due to economic and barrier island environmental constraints, the Town of Indian River Shores and the Town of Orchid are limited in their ability. to provide affordable housing within their respective town limits. Therefore, both towns have included policies in their plans supporting the provision of affordable housing in the unincorporated county, and indicating that they will participate with the county in the provision of that housing. Attached to this staff report is a copy of Indian River County's Housing Element Policy 4.6, the Town of Indian River Shores' Housing Element Policy 3-1.1.3, and the Town of Orchid's Housing Element Objective 1. Housing Element Policy 3-1.1.3 for the Town of Indian River Shores states that the town will provide financial assistance to the county consistent with the county's provisions for affordable housing. Housing Element Objective 1 for the Town of Orchid states that the town will participate in a county housing trust fund. While both the Town of Indian River Shores and the Town of Orchid, through their comprehensive plans, pledge support for the county's affordable housing activities, neither identifies the amount of support, the method of payment, or the timing of their participation. Since the AHAC is presently considering the structure, use, and revenue sources of the county's proposed housing trust fund, it is appropriate at this time to pursue the comprehensive plan commitments made by Orchid and Indian River Shores. Given the above mentioned information, it is staff's position that there are several alternatives available to the Indian River County Board of County Commissioners regarding this matter. * The first alternative would be for the Board to take no action; with this option, the Board would wait and see if and when the towns act on their affordable housing commitments. 27 MAR 17 199