60A - DENSITY BONUS AFFORD HOUSING

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EXHIBIT 2 SPR No. 2017-09/DBA No. 2017-02 May 21, 2018 Page 6 Nearly half (48 percent) of the project's units will contain one or two bedrooms. The original project proposed at the site contained both senior and family -oriented housing in nearly 700 residential units. Following feedback from elected officials and City staff on housing needs identified in the 2014 Housing Element, the applicant revised the project to completely eliminate the senior component; the unit count was reduced to the present 552. In doing so, the applicant increased the number of multi -bedroom units. In 2010, the US Census reported that the average household size in Santa Ana was 4.37 and that the average family size was 4.54. Santa Ana's average household and family sizes are above Orange County's, which has an average household size of 3.99. As a result, the lower bedroom count of the project may serve a different segment of the population not identified in any local demographic (household or family size) figures or in the 2014 Housing Element. This issue may be exacerbated by the community's overall lower -than -average unit square footage of 1,061 square feet, which is below the 1,200-square foot unit average stated as a guideline in the MEMU regulating plan. 2. Housing Opportunity Ordinance (HOO) and the State's Density Bonus Law Under the State's Density Bonus Law, developers of affordable family -oriented housing projects may request a numerical density bonus up to 35 percent from base density. The City's Housing Opportunity Ordinance (HOO), last updated in 2015, augments the density bonus concept by allowing a developer to seek an additional 35 percent density bonus calculated from base density (SAMC Sec. 41-1904.1). Despite this opportunity for a "double density bonus," staffs interpretation of the intent of both the State law and local ordinance support the concept of mixed -income housing development, with affordable housing units forming a component of such developments. Pursuant to SAMC Sec. 41-1600, the purpose of the City's ordinance is "to provide increased residential densities to developers who guarantee that a portion of their residential development will be available to low income, very low-income, or senior (also known as "qualified") households." Moreover, 'The regulations are intended to ... provide a balance of housing opportunities for low income, very low-income, and senior households throughout the city." Mixed -income housing developments provide a "portion" of affordable units in an integrated, mixed - income development unless it is financially or physically infeasible to do so, in which case a developer may pay an in -lieu fee to facilitate construction of affordable housing developments offsite. The City's Housing Opportunity Ordinance's furthers this goal, stating that is purpose is to "encourage the development of housing that is affordable to a range of households with varying income levels" (SAMC Sec. 41-1900). It is also important to note the language in SAMC Sec. 41-1600 that encourages development of affordable housing for "households throughout the City" (geographically dispersed). The developer has recently entitled an all -affordable senior project ("Villa Court") on a project site approximately 320 feet to the east at 2222 East First Street that will contain 418 units. If approved, the proposed project would add another 552 all -affordable housing units in nearby, for a combined 970 affordable housing units in close proximity to one another. 60A-52