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categories and 84 % 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.2 These households are also rent burdened and live-in overcrowded conditions3. While the City has seen increased production of affordable housing there has been a disproportionate production of above moderate housing with a total of 3,274 above moderate units produced between 2013-2021, the City exceeded its RHNA allocation 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 rental units are affordable to most of Santa Ana's working families. The need will be much greater as the COVID-19 pandemic has exacerbated housing 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: HousinEr Opportunity Ordinance Amendments • Proposed amendment to increase the in -lieu fee from $5 to $15+ per sq ft and Amendment to add percentage of rental units for extremely low income households The City should ensure that affordable housing is built on new housing developments or allow for developers to pay their fair share of funds to provide Santa Ana residents with affordable housing. The Commission supports the Planning Commission's recommendations to increase the onsite requirement options as follows: 20% at low income, or 15% at very -low income, or 10% at extremely -low income, or a blended option of 15% where 5% is at extremely low income, 5% very -low income and 5% low- income income. The City must update the in -lieu fee to $15 or above per sq.ft to be in line with a fee that is fair and allows the City to fund affordable housing for its residents. The City has identified that out of the $26 million in collected in -lieu fees, $6 million was collected at $5 and the rest was collected at $9 or above. The $15+ sq. ft. fee is in line with regional in -lieu fees and is further supported by a feasibility study of Santa Ana's housing and real estate market where a higher in -lieu fee range of $17.10 sq.ft.- $17.80 sq. ft. are recommended by the City's consultant. 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 for their local housing funds. ' 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 4 National Low Income Housing Coalition. Out of Reach The High Cost of Housing 2021,pg.18. Out of Reach 2021 (nlibc.ora)