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Planning and Building Agency <br />www.santa-ana.org/pba <br />Item # 28 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />July 6, 2021 <br />TOPIC: Housing Ad Hoc Committee Progress Report and Recommendations Regarding <br />the Housing Opportunity Ordinance <br />AGENDA TITLE: <br />Housing Ad Hoc Committee Progress Report and Recommendations Regarding the <br />Housing Opportunity Ordinance <br />RECOMMENDED ACTION <br />Receive the progress report from the Housing Ad Hoc Committee, discuss the <br />recommendations, and provide direction to staff. <br />BACKGROUND AND DISCUSSION <br />At the direction of the Mayor and City Council, the Housing Ad Hoc Committee was <br />formed on March 2, 2021. Committee members consist of Mayor Sarmiento and <br />Councilmembers Lopez and Phan. The Committee convened its first meeting on March <br />22, 2021 and has since conducted three additional meetings to discuss various housing <br />issues. The first set of recommendations from the Committee are related to the Housing <br />Opportunity Ordinance. <br />Ad Hoc Review of the Housing Opportunity Ordinance <br />The HOO was originally adopted in November 2011 to implement the City’s Housing <br />Element goal to provide affordable housing within the City. In October 2015, the HOO <br />was amended to make the inclusionary housing requirements more predictable for <br />housing developers and to incentivize more affordable housing production on-site in <br />conjunction with new market rate housing development. Some examples of the ordinance <br />changes included simplifying the complex in-lieu fee calculation and creating additional <br />incentives to allow developers the option of providing inclusionary housing units either on <br />or off-site. In September 2020, the HOO was amended again to decrease the in-lieu fee <br />amount for all projects from $15 to $5 per square foot, change the trigger of the HOO, <br />and expand the eligible uses of in-lieu fees collected by the City.