Housing advocates suggest thinking small to help address homelessness

Persistent homelessness in Orange County has local leaders seeking new strategies to address the urgent need for affordable housing.

At a summit organized by Orange County Second District Supervisor Vicente Sarmiento on Wednesday, Nov. 5, local stakeholders explored how small-scale housing, or “tiny homes,” have been used in other counties as a viable solution.

“Tiny or small-scale homes are not ideal, but they are that missing middle that can help somebody transition from a shelter,” said Sarmiento. “We don’t want to just stick to the conventional options that have always been placed in front of us because the problem keeps getting worse. Whatever we’re doing isn’t solving the problem.”

Congregate emergency shelters, such as a county-owned facility with a capacity of 600 beds, are often criticized for their lack of privacy and for not being suitable for families. There is also a critical gap, advocates said, for individuals ready to transition out of shelters, but who remain unhoused due to a severe shortage of permanent, affordable housing.

The cost of building a traditional permanent housing unit ranges from $700,000 to $800,000 and can take 18 months to two years for entitlements and construction, advocates said. By comparison, a tiny home or modular small-scale unit can be produced at a fraction of the cost and time, at roughly $75,000 to $100,000 per unit and in just six to eight months.

“The need is so urgent right now that we really don’t have the luxury to wait,” added Sarmiento.

The summit featured two panels that addressed how to expand housing possibilities and use partnerships to overcome challenges.

Guest speakers included Orange County Chief Real Estate Officer Matt Miller, who discussed how the county could leverage its land for affordable housing through ground leases and public-private partnerships.

“We want to do these projects and to work with people, to reimagine parcels. We are here to be a willing partner,” said Miller.

Miller referenced the Placentia Veterans’ Village and Crossroads at Washington in Santa Ana as successful examples combining small, under-utilized parcels of county land with land from neighboring agencies to create new developments. The Santa Ana project, built on land jointly owned by the city and the county, resulted in an 86-unit development for people facing homelessness and extremely low-income families.

Officials called Tuesday’s summit a starting point to understand the challenges and successful practices for a potential future pilot project.