HOC has creatively responded to the changes that affected the production of affordable housing. As federal subsidies for public housing were slashed, HOC sought and found other ways to produce affordable housing in the County. Because of this, HOC is considered a leader in the nation in developing affordable housing.
 

Through the 1970s, HOC development activity consisted primarily of federally funded public and assisted housing. In accordance with federal regulations, public housing development is 100 percent low income, while other development (Section 236 projects owned by separate non-profit boards but managed by HOC) is targeted for moderate-income households. In addition to public housing. HOC also obtained and administered Section 8 rental subsidy certificates for the County. This program is now called the Housing Choice Voucher program.
 

During the 1980s, there were substantial cuts in federal funding for public housing development. In the early 1980s, HOC’s development activity expanded to issuing tax-exempt mortgage revenue bonds to refinance privately owned developments. Each of these privately owned developments included a set-aside of units that usually exceeded the minimum "public purpose" definitions established by the federal government as a condition for tax exempt financing. All of these privately owned and managed developments have a resident mix of at least 20 percent low- and moderate-income households. The federal tax reform act of 1986 severely limited the amount of private activity bonds HOC could issue.
 

During the mid-to-late 1980’s, HOC’s development activity has shifted to new construction of mixed income housing developments owned by HOC. These developments (with 20-50 percent low-income households) are financed through a combination of essential purpose bonds, HOC funds, and State and County subsidies.