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Planning and Building Agency www.santa-ana.org/pb Item # 9 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report December 7, 2021 TOPIC: Second Reading of Zoning Ordinance Amendment No. 2021-03 AGENDA TITLE: Adopt Ordinance No. NS-XXXX — ZONING ORDINANCE AMENDMENT NO. 2021-03 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA REPEALING AND REENACTING IN ITS ENTIRETY ARTICLE XVIII.I. OF CHAPTER 41 OF THE SANTA ANA MUNICIPAL CODE REGARDING THE HOUSING OPPORTUNITY ORDINANCE RECOMMENDED ACTION Place Ordinance on second reading and adopt. DISCUSSION The City Council conducted the first reading of the Ordinance on November 16, 2021. As part of the first reading of the Ordinance, the majority members of the City Council discussed, articulated, and directed staff to make conforming revisions to the Ordinance reflecting the following refinements for the second reading of the Ordinance: • Omit new priorities that do not directly relate to the production of new affordable housing units. • Reduce to 5% inclusionary for for -sale units. • Include a provision to vest entitled projects and make the necessary conforming changes to the Ordinance, and include a vested project list as an exhibit to the Ordinance. • Require and phase in the use of a local skilled and trained workforce only for new projects proposing 20 or more residential lots or units exercising the in -lieu fee option to satisfy the inclusionary requirements of the Ordinance, and clarify that the provision is not applicable to projects receiving funding from the inclusionary housing fund. The implementation of this provision shall be phased as follows: 11/17/2021 — 12/31/2025 1/1/2026 thereafter $15 — No requirements $15 — 30% STW & 35% local hire $10 — 30% STW + 2 trades & 20% local hire $10 — 60% STW & 35% local hire $ 5 — 60% STW + 3 trades & 20% local hire $ 5 — 90% STW & 35% local hire City Council 9-1 12/7/2021