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City of Santa Ana <br />Mayor Valerie Amezcua, Mayor Pro Tern Jessie Lopez, and Councilmembers <br />Page 5 <br />entire context, does not support the City's view that it can rely on its existing density <br />thresholds — even if recently increased — to offset the loss of AB 2011 exemptions. <br />As a result, the additional capacity created solely by the alternative parcels that were <br />not previously eligible under AB 2011 does not appear to be enough to offset the loss of <br />residential capacity resulting from the exemptions. Indeed, for the affordable <br />requirement, the difference appears to be several thousand units, while for the mixed <br />income requirement, the difference appears to be fewer than 1,000. To close these <br />gaps, the City must either identify more parcels that are not currently subject to AB 2011 <br />or upzone parcels that are eligible under AB 2011 to allow greater densities than <br />currently permitted. <br />Parcel Exemptions by Resolution <br />The proposed resolution includes a conclusory finding that the resolution is not a CEQA <br />project because it is an organizational or administrative activity that will not result in <br />direct or indirect physical changes in the environment.' It makes no other factual <br />findings to support its conclusion. HCD is skeptical that these findings can be factually <br />supported, as the resolution relates to the regulation of physical changes to the City's <br />land, i.e., exempting parcels from AB 2011 and allowing development on replacement <br />sites. To be sure, AB 2011 provides that if a City adopts an ordinance to implement the <br />provisions of AB 2011, including its exemptions, then such ordinance shall not be <br />considered a "project" under CEQA (Gov. Code, §§ 65912.114, subd. (o) and <br />65912.124, subd. (o)).8 But AB 2011 does not afford such consideration to city council <br />resolutions. Moreover, such local regulations are also typically enacted by way of <br />ordinance to allow for adequate public hearing and notice. (Gov. Code, § 65850 et seq. <br />[governing the scope of local legislative bodies to regulate land use by ordinance].) <br />Therefore, HCD is concerned that the City's proposed resolution — insofar as it is being <br />adopted as an effort to streamline certain residential development projects on certain <br />parcels, and to deem those to be suitable alternatives to AB 2011 sites — is at risk of <br />being invalid and ineffective. <br />Conclusion <br />HCD urges the City to refrain from adopting the proposed resolutions until it can correct <br />the issues identified in this letter and demonstrate through adequate written findings that <br />it fully complies with the exemption requirements in AB 2011 and SB 6. The adoption of <br />the proposed resolutions as -is would be inconsistent with AB 2011. <br />Al-3 <br />cont. <br />A1-4 <br />Ibid. at page 32-13. <br />8 Similar provisions exist for SB 6, and thus, the concerns raised here regarding the City's proposed <br />resolution for AB 2011 exemptions equally apply to its proposed resolution for SB 6 exemptions. <br />