Those are the only two options to finding quality candidates?

Try talking more about the meta of coding itself. Get into the developers head by _talking_ to them and understanding how they would approach and attack different problems. You can show them code and ask them what they would do differently / how they would go about implementing X-Y-Z. Just because you can write foobar doesn't mean you understand how to apply algorithms or w/e specific problems [your] team has. It's _far_ better to understand how they would solve a problem over their syntax anyway.