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Judson Brown, City of Santa Ana June 28, 2021 <br />Housing Opportunity Ordinance: Updated In-Lieu Fee Analysis Page 5 <br /> <br /> 2106011.SA:KHH <br /> 19090.017.021 <br /> <br />Attachment 2: Ownership Housing Development <br /> Summary Table <br /> Appendix A: Home Sales Survey <br /> Appendix B: Affordability Analyses <br /> Exhibit I: Affordable Sales Price Calculations <br /> Exhibit II: In-Lieu Fee Analysis <br /> <br />RENTAL RESIDENTIAL DEVELOPMENT ANALYSIS <br />Affordable Housing Requirements <br />To assist in evaluating the supportable in-lieu fee for rental residential development <br />KMA compiled information pertaining to the development scopes and rents for recently <br />constructed projects. Based on this information KMA prepared conceptual pro forma <br />analyses to identify the magnitude of the income and affordability requirements that <br />could feasibly be imposed. <br />As proposed, the updated Ordinance would allow developers to select from one of the <br />following affordable housing obligations: <br />1. A 15% set aside for low income households; or <br />2. A 10% set aside for very low income households; or <br />3. A 5% set aside for extremely low income households. <br />The California Government Code Sections 65915 – 65918 (Section 65915) density bonus <br />can provide a valuable tool for mitigating the impact created by the imposition of <br />inclusionary housing requirements. The results of the KMA financial analysis indicate <br />that if the benefits provided by the Section 65915 density bonus can be effectively used, <br />the proposed income and affordability requirements should not create a constraint to <br />development. <br />The Section 65915 density bonus can only be used for projects that produce the <br />statutorily set number of affordable housing units. It is not possible to pay a fee in lieu <br />of producing the affordable units that generate the density bonus benefits. Therefore,