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City of Santa Ana <br />Mayor Valerie Amezcua, Mayor Pro Tern Jessie Lopez, and Councilmembers <br />Page 4 <br />No Net Loss Requirement <br />The City has not shown that under Government Code sections 65912.114, subdivision <br />(i)(3)(A) and 65912.124 (i)(3)(A), the development of the alternative parcels will result in <br />a "[n]o net loss of the total potential residential density in the jurisdiction." (Emphasis <br />added.) The total potential residential density in the jurisdiction includes both the <br />existing potential density resulting from local land use designations and zoning, and the <br />potential density created by AB 2011. Therefore, to meet the no net loss requirement, <br />the City must accurately count the total amount of lost potential density — and the <br />resulting unit capacity — that will result from exempting the parcels from AB 2011 and <br />accurately count the total amount of potential residential capacity created through <br />alternative sites to offset that loss and maintain the total potential residential capacity in <br />the jurisdiction. The same analysis applies to the requirement under sections <br />65912.114, subdivision (i)(3)(B) and 65912.124 (i)(3)(B) that development of the <br />alternative parcels will result in "[n]o net loss of the potential residential density of <br />housing affordable to lower income households in the jurisdiction." <br />The AB 2011 parcel exemption allows for two options for compliance with this <br />requirement, as described in Government Code sections 65912.114, subdivision (i)(2) <br />and 65912.124, subdivision (i)(2): <br />1. A local government may allow alternative parcels to be developed under AB 2011 <br />that "would not otherwise be eligible for development pursuant to this chapter" <br />(Gov. Code, §§ 65912.114, subd. (i)(2)(A) and 65912.124, subd. (i)(2)(A)), thereby <br />creating additional potential residential capacity in the jurisdiction. <br />2. A local government may allow for alternative parcels eligible for development <br />under AB 2011 to be developed at higher residential density than what is required <br />under the AB 2011 affordable density requirements (Gov. Code, § 65912.113, <br />subd. (b)) or mixed -income density requirements (Gov. Code, § 65912.123, subd. <br />(b)), thereby creating additional potential residential capacity. The mixed income <br />exemption also imposes certain restrictions on height limits (Gov. Code, § <br />65912.123, subd. (c)). <br />The City's proposed AB 2011 resolution attempts to use a combination of both options to <br />meet this requirement. However, while the alternative parcels that could not have <br />previously been developed under AB 2011 would create new potential residential <br />capacity that can offset some of the loss, the City has not demonstrated that it has <br />increased the potential residential density on the alternative parcels already eligible <br />under AB 2011, instead relying erroneously on the fact that these sites already support <br />densities greater than what AB 2011 requires. Relying on existing densities does nothing <br />to create new residential capacity that can further offset the loss from the exemptions. <br />To be sure, the baseline to which a local government should measure its no net loss for <br />AB 2011 exemption purposes is, at present, not explicit. But statutes must be read to <br />give its intended effect, and the most reasonable interpretation of AB 2011, read in its <br />