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A-2020-241-34-02
<br />Exhibit A to Side Letter 2
<br />1. Project Understanding
<br />Incorporated in 1886, the City of Santa Ana has a rich cultural history that is reflected throughout its
<br />neighborhoods and downtown area. As the seat of Orange County, Santa Ana has grown into one of the
<br />most socioeconomic, transit -oriented, and diverse urban centers and gateway cities in the region.
<br />Today, the City is regional hub for retail, manufacturing, commerce, entertainment and tourism,
<br />resulting in a high demand for housing, with the potential to result in informal or unpermitted dwelling
<br />units (UDU) throughout the city as detailed below.
<br />High Demands for Housing
<br />In 2022, the U.S. Census reported a total population of 308,203 residents living in 82,395 housing units.
<br />Of these, 56.4% of Santa Ana households are considered lower income, compared to 40.5% Countywide.
<br />Further, a total of 18,185 households (approximately 24%) are classified as Extremely -Low Income
<br />Households, with 14,255 (or 78%) being renter -occupied.
<br />Furthermore, the U.S Census reports that the median "Persons per Household" in Santa Ana is 4.04 (or
<br />37% higher) when compared to 2.97 in Orange County, and 2.94 in Los Angeles County.' In line with
<br />these findings, the 2021-2029 Housing Element and Regional Housing Needs Allocation (RHNA) requires
<br />the city to enable the development of at least 3,137 new housing units by 2029.
<br />Given the high demand for housing, especially for lower income individuals and families, the potential
<br />risk for UDUs also remains high. As evident by their unpermitted and illegal nature, UDUs are not
<br />actively tracked or known by city officials and have a high potential to for faulty or dangerous
<br />construction, poor livability, air quality, lighting and access, and disproportionate economic costs and
<br />rents for the occupants.
<br />In preparation of this scope, the Psomas team conducted initial research on current programs, policies,
<br />and ordinances within the City of Santa Ana. Our team found that only a portion of the Zoning Code,
<br />Section 41-619(a) — Prohibited additions to residential buildings, clearly addresses UDUs stating,
<br />"No addition shall be made to a residential building if such addition would promote the ability of the owner
<br />or occupant of the building to create an illegal additional dwelling unit in the building."
<br />Beyond the Zoning Code, in October 2022, the City of Santa Ana became the first city in Orange County
<br />to enact a Rent Stabilization Ordinance (No. NS-3027) that would require all landlords to register all
<br />rental units. Pursuant to the Ordinance:
<br />"Commencing October 1, 2023, the City may commence enforcement against any Landlord who fails to register
<br />a Rental Unit, or provide current and accurate data regarding a Rental Unit, according to this Division."
<br />While the ordinance presumably gives the City the authority to enforce existing UDUs, the ordinance
<br />itself does not clearly lay out a process or program for doing so. Through this proposal, Psomas will
<br />provide the necessary research of existing UDU programs in California from which the City of Santa Ana
<br />can begin to construct its own local policy and procedures to address UDUs. Our research will not only
<br />look at cities that are limiting or removing the presence of UDUs, but it will also explore best practices
<br />and programs that incentivize and encourage legalization of UDUs, bringing such units up to code and
<br />livable quality, so that they can provide value to property owners as well as legally -contributing units to
<br />the City's housing stock.
<br />i U.S. Census: Quick Facts (2017-2021 reporting period). https://www.census.gov/quickfacts.
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