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80% of renters in Santa Ana fall into the moderate, low and very low-income category and 84 percent of residents hold low-income occupations that pay less than $53,500 per year. Santa Ana’s households are predominantly families comprising 81% of households. These households are also rent burdened and live-in overcrowded conditions. While the city has seen increased production of affordable housing there has been a larger increase of above moderate housing with the city’s 3,274 RHNA above moderate allocation being exceeded by 3,638% per the City’s RHNA progress reports submitted to the state. With average rents of $2000 - $4000, none of these above market rent units are affordable to most of Santa Ana’s working families. The need will be much greater as the COVID-19 pandemic has exacerbated needs that were already existing in our communities. Housing costs in Santa Ana have been out of reach and will continue to be out of reach in this current economic climate. Households in Santa Ana must earn $44.83 an hour to afford two-bedroom housing. The proposed amendments further incentivize housing units with market rate rents and are not affordable to the majority of the City’s residents. As such, we support the following amendments to the Housing Opportunity Ordinance and Affordable Housing Funds Policies and Procedures: Housing Opportunity Ordinance – Options to satisfy Inclusionary requirements  Proposed amendment to increase the in-lieu fee from $5 to $15 sq ft The City should ensure that affordable housing is built on housing developments or allow for developers to pay their fair share to allow the City to meet Santa Ana residents to housing needs at lower incomes. The City must continue to prioritize a 15% affordable housing requirement focused on extremely low, very low and low. The City needs to update the in-lieu fee to $15 to be in line with a fee that is fair and allows the city to create an in-lieu fund that will help build affordable housing for its residents. The proposed fee is in line with the regions in lieu fees and it has been recommended based on a feasibility study of Santa Ana's housing and real estate market. This funding will allow the city to secure additional state and federal funding sources to create much needed affordable housing. The City risks losing state and federal housing matching funds by not having the in-lieu fee at this level, at a time we face economic and housing instability because of the pandemic.  The HOO should apply to all city-initiated Land Use changes, rezoning. The HOO should apply to all residential developments in the City. At a minimum the HOO affordable housing requirements should apply to all residential developments that are asking for zone changes, upzonings or other development incentives. In addition, the HOO should apply to all developments taking advantage of city-initiated land use and zoning changes, specific plans and general plan updates and amendments. All these land use changes create more profit and incentives for market rate developers. At the same 1 City of Santa Ana General Plan Housing Element 2014-2021, p. 14, January 2014. 2 City of Santa Ana General Plan Housing Element 2014 – 2021 page 11 3 City of Santa Ana General Plan Housing Element 2014 – 2021 page 20