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1.2 Constraints Analysis <br />Typically, this section discusses market, governmental, and <br />environmental constraints to development. From our initial assessment, <br />some sections of the 2000-200S Housing Element are still accurate. <br />In other cases, significant changes to state and federal laws, as well as <br />ambiguities in the present Housing Element, will necessitate changes. <br />With this background in mind, we propose to update the following <br />sections of the Housing Constraints Analysis. <br />Nongovernmental Constraints <br />The housing boom in southern California has dramatically changed the <br />landscape for affordable housing. We will analyze the market prices for <br />land, construction materials, and labor. This section will also provide <br />updates on costs, vacancy rates, construction costs, fees, and other <br />factors that affect housing prices. We assume that the City's <br />Redevelopment Division and active nonprofit organizations in the <br />immediate area can provide the latest pro formas for proposed <br />residential projects for this type of analysis. <br />Santa Ana faces uniQue market constraints to development. The <br />Department of Housing and Community Development (HCD) typically <br />assumes that certain residential densities are sufficient to both facilitate <br />and encourage the production of affordable housing. Although many <br />areas of the City allow for significant residential density, the density <br />thresholds do not necessarily guarantee that affordable housing could be <br />built. In fact, many higher density products are more costly than lower <br />density ones, particularly in higher -end areas such as MacArthur Place. <br />Governmental Constraints <br />Housing Elements must contain an analysis of potential governmental <br />constraints to the production, maintenance, and improvement of housing <br />affordable to persons of all income levels and disabilities. We will <br />conduct a focused analysis of the current governmental and regulatory <br />framework for approving and producing housing in Santa Ana. <br />Issues to anayze in this section include: <br />• Allowable housing types permitted in each zone <br />• Residential development standards and density <br />• Permit processes, including discretionary review <br />• Parking reQuirements <br />• Building, development, and impact fee structures <br />Page 2-4 Proposal to City of Santa Ana <br />