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Clean Version (4:22 PM) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AMENDING SECTIONS 41-1900, 41-1901, 41-1902, 41-1903, 41-1904, 41-1906, 41-1909, AND 41- 1910 OF THE SANTA ANA MUNICIPAL CODE RELATING TO THE HOUSING OPPORTUNITY ORDINANCE THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines, and declares as follows: A. On November 28, 2011, the Santa Ana City Council adopted Ordinance No. NS-2825, known as the Housing Opportunity Ordinance and appearing as Article XVIII.1 of Chapter 41 of the Santa Ana Municipal Code. The Housing Opportunity Ordinance was adopted to implement the City's Housing Element Goal of providing affordable housing within the City. B. On September 1, 2015, the City Council adopted Ordinance No. NS-2881, which amended the Housing Opportunity Ordinance in various respects, including applicability, options to satisfy inclusionary requirements, and calculation of the in -lieu housing fee. These amendments were intended to make the inclusionary housing requirements more predictable for housing developers and to incentivize more affordable housing production on -site in conjunction with new market rate housing development. C. In response to impacts of the COVID-19 pandemic on the development and construction of housing in the City, including the reduction of housing starts, the City Council adopted Ordinance No. NS-2994 on September 1, 2020. Ordinance No. NS-2994 further amended the Housing Opportunity Ordinance to lower the in -lieu housing fee for all projects from $15 to $5 per square foot, adjust the trigger of the ordinance, and expand the eligible uses of in -lieu fees collected by the City. D. In early 2021, at the direction of the City Council, an Ad Hoc Committee for Housing was formed. The Ad Hoc Committee reviewed the Housing Opportunity Ordinance and recommended certain changes. The Ad Hoc Committee's recommendations were presented and discussed at the City Council Meeting on July 6, 2021. E. On July 26, 2021, the City Council conducted a work-study session to further evaluate the Committee's recommendations and to receive input from key stakeholders and members of the public. The City Council provided direction to staff to prepare amendments to the Housing Opportunity Ordinance concerning the applicability Ordinance No. NS-XXX Page 1 of 14 City Council 1 — 1 7/26/2021