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Variance Nos. 05-64 and 05-65 December 12, 2005 Page 2 Project Description The project involves the rehabilitation of the existing 30 unit apartment complex into an affordable, rent controlled 24 unit complex. The structure and room layouts will be modified by combining existing studio units to create one, two and three bedroom units. Units will range in size from approximately 509 square feet for a one bedroom apartment and 764 square feet for a two bedroom unit. The unit breakdown includes 13 one-bedroom units and 11 two-bedroom units. Various external and internal improvements are proposed for the project. Exterior improvements will include new stucco and paint for the exterior walls, repairing and repainting all decks and the removal of exterior doors where units are removed. Interior enhancements will include the reconfiguration of walls and the installation of new bathrooms and kitchens within each unit. Additionally, new paint, windows, doors and flooring will be provided for each apartment (Exhibits 3 and 4) . Analysis of the Issues Orange Housing Development Corporation, in partnership with the City's Housing Division, is in the process of purchasing the existing apartment complex. Once the purchase is completed, the applicant intends to rehabilitate the existing complex and provide 24 affordable, rent controlled units that will include occupancy restrictions. However, due to the rehabilitation involved with the project, a variance for a reduction in parking and for a reduction in the minimum size of a unit is needed. The first variance pertains to a reduction in required parking for the complex. Section 41-681.3(3) of the Santa Ana Municipal Code (SAMC) requires this nonconforming multiple-family residential project to comply with the City's parking requirements if the number or size of the bedrooms will be increased on the site through a rehabilitation. In analyzing this request for a reduction in parking, staff considered the following information. The applicant will be reducing the number of units on the site by six, effecti vely reducing the parking demand for the proj ect. Additionally, through deed restrictions and covenants, the overall occupancy of the project will be reduced from 105 to a maximum of 70 (3 persons per one bedroom unit and 4 persons per two bedroom unit), also reducing the demand for parking. Finally, since the applicant has completed several similar proj ects, the applicant has found that the need for parking has been reduced with this type of project. 758-3