Item 29 - Zoning Ordinance Amendment No. 2021-03

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Zoning Ordinance Amendment No. 2021-03 November 16, 2021 Page 5 2 2 3 7 In summary, if the City Council desires to incorporate Planning Commission recommendations 1 and 2, additional analysis should be completed to fully evaluate their impacts to the constructability of a project. Planning Commission recommendation 3 can be incorporated without the need to complete additional analysis of the impacts on the constructability of a project. Background and Process: On November 28, 2011, the Santa Ana City Council adopted Ordinance No. NS-2825, known as the Housing Opportunity Ordinance and appearing as “Article XVIII.I. – Housing Opportunity Ordinance” (“Housing Opportunity Ordinance”) of Chapter 41 (Zoning) of the Santa Ana Municipal Code. The Housing Opportunity Ordinance was adopted to implement the City’s Housing Element Goal of providing affordable housing within the City. On September 1, 2015, the City Council adopted Ordinance No. NS-2881, which amended the Housing Opportunity Ordinance in various respects, including applicability, options to satisfy inclusionary requirements, and calculation of the in-lieu housing fee. These amendments were intended to make the inclusionary housing requirements more predictable for housing developers and to incentivize the production of more affordable housing. In response to impacts of the COVID-19 pandemic on the development and construction of housing in the City, including the reduction of housing starts, the City Council adopted Ordinance No. NS-2994 on September 1, 2020. Ordinance No. NS-2994 further amended the Housing Opportunity Ordinance to lower the in-lieu fee option amount for all projects from $15 to $5 per square foot, adjust the trigger of the ordinance, and expand the eligible uses of in-lieu fees collected by the City. 41-1909 Inclusionary Housing Fund: Clarifies the use of the in-lieu fees collected This section is amended to further clarify the use of in-lieu fees paid to the City. It provides the Community Development Agency with a priority for the use of the funds for large families and allows the funds to be used for additional one-time programs addressing housing security, eviction prevention, and housing legal assistance for city residents. This section is also amended to strengthen and emphasize the goal for projects that receive inclusionary housing funds to negotiate in good faith to utilize a skilled and trained workforce with a local hire component. No recommended changes by the Commission. 41-1910 In-lieu fee calculation: Provides for periodic review at the option of the City Council; deletes “Prior Projects” This section is amended to provide for periodic review of the in-lieu fee when determined to be appropriate by the City Council. The amendment also deletes the paragraph on “Prior projects” since it is no longer applicable. No recommended changes by the Commission.