Item 28 - Housing Ad Hoc Committee Progress Report Regarding The Housing Opportunity Ordinance

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APPENDIX B - EXHIBIT II IN-LIEU FEE ANALYSIS RENTAL RESIDENTIAL DEVELOPMENT HOO: IN-LIEU FEE ANALYSIS SANTA ANA, CALIFORNIA Very Low Income Low Income I.Rent Difference 1 A.Studio Units Market Rate Units $2,420 $2,420 Affordable Units 876 1,063 Difference $1,544 $1,358 B.One-Bedroom Units Market Rate Units $2,600 $2,600 Affordable Units 1,000 1,213 Difference $1,600 $1,387 C.Two-Bedroom Units Market Rate Units $2,830 $2,830 Affordable Units 1,111 1,351 Difference $1,719 $1,479 D.Three-Bedroom Units Market Rate Units $3,750 $3,750 Affordable Units 1,220 1,487 Difference $2,530 $2,264 II.Distribution of Total Units 2 Studio Units 25%25% One-Bedroom Units 35%35% Two-Bedroom Units 35%35% Three-Bedroom Units 5%5% III.Annual Affordability Gap Per Inclusionary Unit $20,093 $17,468 Less: Property Tax Difference 3 (4,660)(4,050) Annual Affordability Gap Per Inclusionary Unit $15,433 $13,418 IV.Net Affordability Gap Per Inclusionary Unit 4 $333,000 $289,000 V.In-Lieu Fee Per Total Unit in the Project 5 $16,700 $17,300 Per Square Foot of Leasable Area 6 $17.10 $17.80 1 2 Based on the unit mix distribution applied in the pro forma analysis. 3 Based on the rent differential capitalized at a 5.0% rate to establish the value, and a 1.16% property tax rate. 4 Based on the Annual Affordability Gap Per Inclusionary Unit capitalized at the Threshold Return on Total Investment. 5 Based on the Affordability Gap Per Inclusionary Unit multiplied times the Inclusionary Housing Percentage. 6 Based on the Affordability Gap Per Inclusionary Unit divided by the average leasable area per unit. The market rents are drawn from the pro forma analyses (See APPENDIX A - EXHIBIT I). The Affordable Rents are based on the H&SC Section 50053 calculation methodology. (See APPENDIX B - EXHIBIT I). Prepared by: Keyser Marston Associates File name: 6 24 21 SA HOO Rent; Fee Page 8 of 8