Item 19 - Density Bonus Agreement No. 2025-02 - Santa Ana 9 Townhomes

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VTTM No. 2025-02 and DBA No. 2025-02 — Santa Ana 9 Townhomes (125 and 205 S. Harbor Blvd.) June 3, 2025 Page 4 The project features a contemporary architectural style similar to many multiple -family or mixed -use residential communities under construction in Santa Ana and the region. The overall design, massing, features, and materials of the new construction will be compatible with the scale of buildings in the area. The contemporary industrial architectural style would include stucco finish, corrugated metal, brick veneer, metal awnings, and high quality architectural detailing (e.g., exterior lighting, entry doors, fenestration, etc.). Moreover, the residential structures are designed to fully screen all mechanical equipment within the structure, parapet walls, and landscaping. Overall, the project will include a design and solid construction materials that will ensure that the project ages well for the duration of the building's lifetime. Density Bonus The California Density Bonus law allows developers proposing five or more residential units to seek increases in base density for providing on -site housing units in exchange for providing affordable units on site. To help make constructing on -site affordable units feasible, the law allows developers to seek up to five incentives/concessions and an unlimited number of waivers or reductions in development standards. The incentives/concessions are generally reductions in site development standards or modification of zoning code requirements or architectural design requirements, and waivers are essentially variances from development standards (a site or construction condition). The first version of the Density Bonus Law was adopted in 1979 and has since been amended at various times. In early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to "justify" the density bonus and requested incentives/waivers and places the onus on local jurisdictions to prove that the incentives/concessions or waivers are not financially warranted. Pursuant to the California Density Bonus law, a project's affordability level is determined by dividing the number of proposed affordable units by the allowable "base" density (i.e., 50 du/ac). Moreover, the State density bonus law states that units added by a density bonus are excluded from the calculations. The base density for the 1.81-acre site at 50 du/ac is 91 units. However, only 36 units are being proposed, which is well within the allowable base density. Of the total units in the development, four units are proposed to be affordable. Therefore, the project would have an 11-percent (11%) affordability rate. As such, State density bonus law allows the developer to request a maximum density bonus of six percent (6%). Due to the project's 11-percent (11 %) affordability rate, the developer can seek one density bonus incentive/concession and unlimited waivers, pursuant to Section 65915 et al. of the California Government Code (Density Bonuses and Other Incentives). In addition, California Assembly Bill No. 2345, approved September 28, 2020, revised the State Density Bonus