CORRESPONDENCE- 75B_Received by Planning Commission

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Letter to the Planning Commission RE: Opposition — Zoning Ordinance Amendment No. 2020-03. August 3, 2020 It concerns us that the Planning Commission seeks to propose to substantially reduce the in -lieu fee altogether for proposed projects that fall under the HOO from fifteen to five dollars. Further, the City of Santa Ana proposes to reduce the applicability of the HOO to developments with 20 units or more, which was not previously the case.2 To reduce in -lieu fees when we are in the midst of one of the worst affordable housing crisis on record endangers the purpose of the HOO: to ensure that new development includes affordable housing units. Indeed, in prior years, the City of Santa Ana has used the in -lieu fees generated through the HOO to develop affordable housing projects in the City of Santa Ana, such as the First Street Apartments. The First Street Apartments are 69 affordable housing units that the City of Santa Ana developed with the transfer of $10 million dollars in in -lieu fees from Heritage Village LLC. Likewise, to delay the HOO until approximately April 2021 is equally problematic because we are approaching the 6th Cycle of the Housing Element where the Regional Housing Needs Allocation ("RHNA") will increase due to the rising need for affordable housing, which has been punctuated by a worsening homelessness crisis, statewide. The HOO, as is, would promote the construction of new affordable housing units during what is certain to be a boon for those searching for development opportunities in the City of Santa Ana, which would help the City of Santa Ana meet its forthcoming increased RHNA obligation. Additionally, the City of Santa Ana proposes to eliminate density incentives that we see helping towards to goal of obtaining more affordable housing, something the City of Santa Ana will need with an increased RHNA obligation and the need for more low-income housing.3 Thus, amending the HOO as proposed will undoubtedly jeopardize these goals. It is no secret that there is a great need for affordable housing in the City of Santa Ana and the lack of an adequate supply is a barrier to livability. The City of Santa Ana made efforts to meet the affordable housing need with the HOO as a policy to help promote and ensure the development of affordable housing for low- and very low-income residents. It is necessary that the City of Santa Ana continue to move forward in its efforts. Many of our clients are working families in the City of Santa Ana who are facing a housing affordability crisis and are in desperate need of safe, stable, and affordable places to live. In Santa Ana, there is a significant need to address and provide housing opportunities for all economic segments of the community. Families in the City of Santa Ana are extremely cash strapped and rent burdened, as many of them use their limited income (over 50%) to pay for their housing costs. As residents struggle to find available and affordable housing in Santa Ana, rents have continually increased. In the City of Santa Ana, the 2020 average rent for a large rental complex was $1,982, which a three percent (3%) increase from the year before.4 Furthermore, housing costs continue to skyrocket in California, as a resident in Orange County must now work an average of 3.3 jobs to afford fair -market rent.5 The rents are far out -of -reach for many lower - income working families in the City of Santa Ana, and if they are priced out of Santa Ana, there are not many places they can relocate to in Orange County, as the County is becoming more and more unaffordable. Hence, to protect the low-income residents of the City of Santa Ana, particularly during the Coronavirus pandemic, the Planning Commission should not amend the HOO as proposed. 2 Proposed Zoning Ord. Amend. No. 2020-03, §41-1901(c). 3 Proposed Zoning Ord. Amend No. 2020-03 §41-1901(a)(2). 4 https://www.rentcafe.com/average-rent-market-trends/us/ca/santa-ana/ (last visited on August 1, 2020). s Out of Reach 2020, National Low Income Housing Coalition https:Hreports.nlihc.org/sites/default/files/oor/files/reports/state/CA-2020-0OR.pdf (California) (last visited on August 1, 2020). 601 Civic Center Drive West • Santa Ana, CA 92701-4002 - (714) 541 -10 10 • Fax (714) 541-5157