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City of Santa Ana Mayor Valerie Amezcua, Mayor Pro Tern Jessie Lopez, and Councilmembers Page 2 use designations that allow for potential density ranging from 7 dwelling units per acre to 125 dwelling units per acre. The City has created opportunity for potential growth located near existing and future transit in step with its Mobility Element. The City's growth projections indicate the Five Focus Areas, Specific Plans, and Zoning Overlay Districts have potential growth of 36,261 units.3 Based on the City's buildout methodology, the Specific Plans and Zoning Overlay Districts would see growth like previous planning periods and identified that the Adaptive Reuse Project Incentive Area could see growth during this planning period.4 From HCD's review of these materials, it is clear the City intends to guide residential growth within this planning period to specific areas while slowly increasing the density over time in others. Nevertheless, the City's laudable efforts to promote housing production do not exempt the City from complying with state laws. HCD understands that new and changing state housing laws require continuing adaptation and education, and HCD is available to assist local jurisdictions with statutory interpretation and compliance. Background AB 2011, the Affordable Housing and High Road Jobs Act of 2022, is codified at Government Code Title 7, Division 1, Chapter 4.1 (commencing with Section 65912.100) and becomes effective July 1, 2023. This law creates a new opportunity for by -right streamlined development of multi -family residential projects compliant with a set of eligibility requirements for affordable and mixed -income projects. HCD has authority to enforce AB 2011 pursuant to Government Code section 65585, subdivision (j)(13). HCD understands that the City proposes to exempt 502 parcels (11,295 potential units)5 under the affordable exemption under the AB 2011 affordable parcel exemption (Gov. Code, § 65912.114, subd. (i)) and 304 parcels (17,664 potential units)6 under the mixed income exemption (Gov. Code § 65912.124, subdivision (i)). On May 16, 2023, the City Council postponed hearing the resolutions to exempt parcels from AB 2011 and SB 6 to June 20, 2023. Since then, HCD has been working with the City to provide technical assistance focused on statutory compliance with the exemption requirements pursuant to AB 2011, Government Code sections 65912.114, subdivision (i), and 65912.124, subdivision (i), and SB 6, Government Code section 65852.24, subdivision (e), in advance of the June 20, 2023 City Council hearing. On May 23, 2023, HCD met with the City for an initial discussion regarding the proposed resolutions. During a call on June 2, 2023, HCD identified to the City various inconsistencies with AB 2011 exemption requirements. Then, on June 6, 2023, HCD followed up with the 3 Ibid. at page LU-11, Table LU-2. 4 Appendix B-b Santa Ana Buildout Methodology, pages 6-7. 5 The City of Santa Ana City Council Agenda Package Item 32, page 32-34, dated June 20, 2023. 6 Ibid. at page 32-46.