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2013-2021, the City exceeded its RHNA allocation by 3,638% per the City's RHNA progress reports <br />submitted to the state. With average rents of $2000 - $4000, none of these above market rental units <br />are affordable to most of Santa Ana's working families. <br />The need will be much greater as the COVID-19 pandemic has exacerbated housing needs that were <br />already existing in our communities. Housing costs in Santa Ana have been out of reach and will <br />continue to be out of reach in this current economic climate. Households in Santa Ana must earn <br />$44.83 an hour to afford two -bedroom housing.' The proposed amendments further incentivize <br />housing units with market rate rents and are not affordable to the majority of the City's residents. <br />As such, we support the following amendments to the Housing Opportunity Ordinance and <br />Affordable Housing Funds Policies and Procedures: <br />Housing Opportunity Ordinance Amendments <br />• Proposed amendment to increase the in -lieu fee from $5 to $15+ per sq ft and <br />Amendment to add percentage of rental units for extremely low income households <br />The City should ensure that affordable housing is built on new housing developments or allow <br />for developers to pay their fair share of funds to provide Santa Ana residents with affordable <br />housing. The Commission supports the Planning Commission's recommendations to increase <br />the on site requirement options as follows: 20% at low income, or 15% at very -low income, or <br />10% at extremely -low income, or a blended option of 15% where 5% is at extremely low <br />income, 5% very -low income and 5% low-income income. The City must update the in -lieu <br />fee to $15 or above per sq ft to be in line with a fee that is fair and allows the City to fund <br />affordable housing for its residents. The City has identified that out of the $26 million in <br />collected in -lieu fees, $6 million was collected at $5 and the rest was collected at $9 or above. <br />The $15+ sq. ft. fee is in line with regional in -lieu fees and is further supported by a feasibility <br />study of Santa Ana's housing and real estate market where a higher in -lieu fee range of $17.10 <br />sq.ft.- $17.80 sq. ft. are recommended by the City's consultant. This funding will allow the <br />City to secure additional state and federal funding sources to create much needed affordable <br />housing. The City risks losing state and federal housing matching funds by not having the <br />in -lieu fee for their local housing funds.. <br />• The HOO should apply to all City initiated Land Use changes and rezoning. <br />The HOO should apply to all residential developments in the City. At a minimum the HOO <br />affordable housing requirements should apply to all residential and mixed use developments <br />that are asking for zone changes, upzonings, following city initiated specific plans, general <br />plan updates or those asking for other development incentives. In addition, the HOO should <br />apply to all developments taking advantage of City initiated land use and zoning changes, <br />specific plans and general plan updates and amendments. Land use changes may create <br />'National Low Income Housing Coalition. Out of Reach The High Cost of Housing 2021,pg.18. Out of Reach 2021 (nlihc.ore) <br />