CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD)

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N-2024-175 MAY 2 3 2024 Return FULLY EXECUTED • og Copy to City Clerk, M-30 ((.Mog0:1 0'"a MEMORANDUM OF UNDERSTANDING BETWEEN THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AND THE CITY OF SANTA ANA This Memorandum of Understanding(''MOU") is entered into as of May 23, 2024 between the City of Santa Ana,a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City")and the California Department of Housing and Community Development("HCD").The Parties enter into this MOU to establish deadlines for the City to demonstrate its compliance with AB 2011. (City and HCD are collectively referred to as"Parties"or singularly as a "Party.") PURPOSE Assembly Bill 2011,the Affordable Housing and High Roads Jobs Act of 2022,codified at Government Code Title 7, Division 1. Chapter 4.1 (commencing with Section 65912.100), became effective July 1, 2023 and grants by-right streamlined development of multi-family affordable and mixed-income residential projects in commercially-zoned sites. Said bill was subsequently amended by Assembly Bill 129(AB 129),a 2023-24 state budget rider bill that was signed by the Governor on July 10, 2023. On June 20,2023,the City adopted Urgency Ordinance No. NS-3045 and Ordinance NS-3047 (the"Ordinances").which exempts certain parcels in Santa Ana from AB 2011. HCD advised the City that the requisite findings to exempt parcels from AB 2011 permit streamlining may be inconsistent with state law and requested additional level of detail and specificity to allow HCD to make an accurate determination about compliance with AB 2011. (Gov.Code, §j 65912.1 14, subd. (i)(3)(A)-(B); 65912.124. subd. (i)(3)(A)-(B).) I lowever,the City had previously engaged in significant upzoning through its April 2022 General Plan Update("2022 General Plan Update"),and properties upzoned as part of the MainPlace Specific Plan (SP-4)and Metro East Mixed Use Overlay expansion (MEMU) (the 2022 General Plan Update, SP4 and the MEMU are collectively referred to as the"Upzoned Sites"). The City and HCD wish to take all steps necessary to assist the City with demonstrating AB 2011 compliance.To that end,the City and HCD propose and herein adopt milestones and deadlines to assist the City with demonstrating that its Upzoned Sites offset the loss resultant from the Ordinances' exemptions and meet all other AB 2011 criteria by September I, 2024,and in accordance with the commitments, milestones, and deadlines set forth below. RECITALS I. The California Legislature passed Assembly Bill 201 I (AB 2011). the Affordable Housing and High Road Jobs Act of 2022,and was signed into law by the Governor on September 28, 2022, with a scheduled July I, 2023, effective date.