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July 16, 2019 www.kennedycommission.org 17701 Cowan Ave., Suite 200 Irvine, CA 92614 949 250 0909 Mayor Miguel Pulido and Council Members City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 RE: Support for Density Bonus Agreement for Proposed Affordable Rental Development at 2110, 2114 and 2020 East First Street Dear Mayor Pulido and Council Members The Kennedy Commission (the Commission) is a broad based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $20,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering and working with Orange County jurisdictions to create effective housing and land -use policies that has led to the new construction of homes affordable to lower income working families. The Commission would like to commend the City's leadership and support in encouraging and facilitating the development of homes affordable to lower income working families. As the City continues its great efforts in addressing the City's workforce affordable housing needs, the Commission recommends the City to support the Density Bonus Agreement on the proposed 2110, 2114, and 2020 East First Street development. The proposed development will provide 552 much -needed affordable homes for very low- and low-income working families and households in the City. The development of these quality homes will not only provide safer and healthier homes but it will also significantly improve the quality of life for many lower income households in the City. Ranked among the top ten least affordable metropolitan areas in the country', Orange County is suffering from an affordable housing crisis. A resident must earn at least $39.17 per hour to afford a two -bedroom apartment at a fair market rent of $2,037 a month.' Orange County renters have also paid an average of $355 more a month and rents are projected to continually rise.3 During 2000 to 2015, Orange County's inflation -adjusted median rent increased by 28 percent while the median renter income decreased by 9 percent.4 The impact of this crisis is dire. Many Orange County renters are rent burdened where they spend more than 30% of their income towards housing costs. Struggling to make ends meet, many households take on more jobs or live in overcrowded substandard households. With high rents, low vacancy rates and an increasing number of residents needing affordable homes, the supply of affordable homes being built for lower income households has also not kept up with the demand. 2019 Out of Reach, National Low Income Housing Coalition, p. 15, June 2019. 3 2019 Out of Reach, National Low Income Housing Coalition, p. 39, June 2019. 3 Southern Californians Scrimp to Get By As Average Rents flit $1,900, Orange County Register, February 15, 2018. 4 California Rents Have Risen to Some of the Nation's Highest. Here's Flow that Impacts Residents, Orange County Register, February 15, 2018.