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Letter of Support Housing Opportunity Ordinance April 5, 2022 p. 2 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. 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. Further, the amendments to update the in-lieu fee to $15 per sq ft are in line with a fee that is fair and allows the City to fund much needed affordable housing for Santa Ana residents. The in-lieu fees have generated over $21 million in funding (and helped leverage millions of federal and state housing resources) to help the City fund the development of new housing opportunities and address housing insecurity. The City's February 2021 Quarterly Report for Housing Division demonstrated that, some of these in lieu fees supported the Santa Ana Arts Collective, Tiny Tim Plaza, Link Interim Emergency Shelter, Legacy Square, Habitat for Humanity "Lacy & Vance", Westview House, Wise Place Steps to Independence Public Service Program, and the City's Down Payment Assistance Programs. We also support the wider application of the Housing Opportunities Ordinance in the City of Santa Ana. This will continue to facilitate the development of affordable housing in various areas of the city. The Commission also recommends that the HOO apply to all residential developments in the City. At a minimum the HOO affordable housing requirements should apply to all residential and mixed-use developments that are asking for zone changes, upzonings, following city initiated specific plans, general plan updates or those asking for 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. Land use changes may create higher land values, profit, and incentives for market rate developers. At the same time many of these market developments are not affordable to the majority of Santa Ana's residents. In exchange for these development incentives, new affordable housing for Santa Ana residents must be created. The City must also ensure that the Inclusionary Housing Fund monies prioritize the construction of affordable housing for extremely low- and very low-income families. These are the families that have the most pressing needs in the City of Santa Ana. In addition, the fund should also 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 4 National Low Income Housing Coalition.Out of Reach The High Cost of Housing 2021,pg.18.Out of Reach 2021(nlihc.ora) 5 City of Santa Ana Quarterly Report for Housing Division page.4.February 2021. 601 Civic Center Drive West•Santa Ana,CA 92701-4002•(714)541-1010•Fax(714)541-5157