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,--Kennedy • M M I S S 1 • www_kcnnedy€nmmi-5.sinn_nrg June 3, 2025 17701 Cowan Ave-Some 200 Irvine,CA 92614 Mayor Valerie Amezcua 949 2�0 0909 Santa Ana City Council Santa Ana City Hall 20 Civic Center Plaza Santa Ana, CA 92701 RE: Agenda Item #19—Density Bonus Agreement No. 2025-02 (125 and 205 S. Harbor Boulevard) To The Honorable Mayor Amezcua and Members of the City Council, The Kennedy Commission (the Commission)is a broad-based coalition of residents and community organizations advocating for the production of homes affordable for families earning less than $30,000 annually in Orange County. Since 2001, we have successfully partnered with jurisdictions across the county to create housing and land-use policies that increase affordable housing opportunities for lower-income working families. The Commission recognizes and appreciates the City's ongoing efforts to expand affordable homeownership opportunities. We also urge the City to continue to prioritize and include deeper levels of rental affordable housing that is greatly needed in Santa Ana. Currently, the agreement proposes four units affordable to moderate-income households (80-120% AMI). However, Santa Ana's most urgent housing needs continue to be among households earning significantly less—those in the Low-, Very Low-, and Extremely Low-income categories. Santa Ana's housing and population trends highlight just how critical deeper affordability is for the community. A majority of residents are considered low-income, a result of persistently low wages, high housing costs, and a limited supply of affordable units. With a median household income of $85,914, many households fall below key income thresholds: those earning under $68,731 are considered low-income, under $42,957 very low-income, and under $25,774 extremely low-income. These income limitations, combined with high rents, have led to widespread housing insecurity. Over half of renters (54.4%) and nearly 40% of homeowners are cost burdened, spending more than 30% of their income on housing. Overcrowding is also a significant concern, particularly among renters, who make up nearly 67% of overcrowded households. These conditions illustrate a clear and urgent need for housing that serves those at the lowest income levels. The City's RHNA progress underscores the imbalance in housing production: in the current 2021-2029 cycle, Santa Ana has already exceeded its above moderate-income housing goal by more than double (3,487 out of 1,624 units), while producing only 296 out of 606 very low-income units and 258 out of 362 low-income units. In the previous cycle, the City delivered 452 very low-income units out of a 1,045-unit goal, and only 116 out of 1,232 low-income units, again falling short of its lower-income goals while vastly exceeding production for higher-income households. These trends reflect a housing system that continues to leave behind those with the greatest needs. We respectfully request that the City continue to explore all viable avenues for incorporating units of affordable Housing to low-, very low-, and Extremely Low-income households into developments in the City. Alternatively, a greater percentage of moderate-income units than the minimum five percent required could help improve access to homeownership for working families 1