CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD)

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11. The City had previously engaged in significant.upzoning through its Upzoned Sites. 12.HCD recognizes the City's efforts to build significant residential capacity, and acknowledges that the City could potentially demonstrate its compliance with AB 2011 and the Housing Crisis Act of 2019 without engaging in a potentially needless and costly local legislative process. Assuming the City's site analysis of its recently Upzoned Sites is correct, the City could comply with AB 2011 by downzoning sites to an intensity of use no less than what was allowed under the land use designation or zoning ordinance in effect on January 1, 2018; revert back to its previous general plan; and re-initiate its 2022 efforts to upzone the same or similar sites as suitable AB 201.1 replacement sites. Rather than compel the City to go through that process,the City and HCD agree to conduct a substantive site analysis review to determine if the Upzoned Sites do indeed offset the losses resultant from the Ordinance's exemptions, meet environmental criteria, are suitable for residential development,and collectively affirmatively further fair housing, (See Gov. Code, §§ 65912.111,subds. (b)-(f); 65912.121, subds. (b), (e)-(h); 65912.114, subd. (i)(1)-(3); 65912.124,.subd. (i)(1)-(3); 65583.2; 66300, subd. (b)(I).)The City and HCD further agree on a process to cure any AB 2011 compliance issues should any remain after the site analysis review described herein. TERMS AND CONDITIONS Now,therefore, acknowledging and representing the truth and accuracy of the Recitals above, each and all of which are hereby incorporated into this MOU,the Parties hereby mutually agree to the following steps to assist the City in demonstrating AB 2011 compliance. 1. City Action to Substantiate Compliance with State Law.The City shall,through the schedule outlined in Section 3 below, substantiate a no net loss in residential density in the jurisdiction by way of(1)providing the total amount of lost potential density—and the resulting unit capacity—that resulted from the exemption of parcels from AB 2011 in Santa Ana Resolution No. 2023-037,Urgency Ordinance No,NS-3045, and Ordinance No.NS- 3047(Urgency Ordinance No.NS-3045 and Ordinance No.NS-3047 are collectively referred to as the"Ordinances")and the total amount of potential residential capacity created through alternative sites from its Upzoned Sites. The City shall thereafter substantiate findings in the Ordinances that the Upzoned Sites offset the loss resultant from the Ordinances' exemptions. The City will then substantiate the finding in the Ordinances that no net loss of total potential residential density in the jurisdiction has occurred. (See Gov. Code, §§ 65912.114, subd. (i)(3)(A)-(B); 65912.124, subd.(i)(3)(A)-(B).) In addition,the City must substantiate: 1.1. That the alternative sites from its Upzoned Sites meet the criteria outlined in Government Code sections 65912.111, subdivisions(b) through(f) for affordable housing developments in commercial zones, and 65912.121,subdivisions(b) and(e)through(h) for mixed-income •