Item 12 - Density Bonus Agreement No. 2025-03

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Density Bonus Agreement No. 2025-03 — Olive Crest (2130 E. Fourth Street) July 15, 2025 Page 3 Project Description The development will consist of two identical, two-story buildings each 7,976 square feet in size, to be located towards the rear (south) of the existing site. The Project would be developed with a gross density of 5.68 dwelling units per acre (du/ac) and a net density of 46.87 du/ac, well below the permitted 90 du/ac by the DC-3 land use designation. The property is currently improved with a two-story, 53,089-square-foot office building and associated surface parking lot, which will remain and continue to be occupied by Olive Crest, a nonprofit organization providing family and youth services. To accommodate the proposed development, 27 parking spaces will be removed from the existing surface lot. The new residential buildings will coexist with the existing office use in a horizontal mixed -use configuration that is functionally integrated, physically compatible, and consistent with the zoning allowances under the Metro East Mixed Use Overlay (MEMU). The units are designed as flats/apartments with Building Al having seven two -bedroom units and an area dedicated as Common Area, to include a community room, office, bathroom, and laundry area. Building A2 would include eight two -bedroom units. The unit sizes will vary between 761 and 785 square feet, and each unit will be fully equipped with a kitchen, bedrooms, bathrooms, and common living areas. As previously described, the Project will include affordable units, with three units designated for very low-income households earning 30-50 percent of the AM which is currently $84,600 for a four -person household, as determined by the California Department of Housing and Community Development (HCD). Two affordable units would be included in Building A2, and would be 785 square feet in size. The additional affordable unit would be included in Building Al and would be 761 square feet in size. Like the market rate units, each affordable unit will be fully equipped with a kitchen, bedrooms, bathrooms, and common living areas, ensuring a high standard of living for future residents. The Project incorporates a combination of a contemporary/Mediterranean architectural style consistent with many multi -family and mixed -use residential communities currently under construction in Santa Ana and the surrounding region. The overall design, massing, materials, and architectural features are intended to be compatible with, yet distinct from multi -family residences existing and currently under construction in the MEMU. The architectural style is characterized by a combination stucco walls painted in a warm earth tone color, natural stone wainscoting along the building base, decorative louvers, window trims, and exposed rafter tails. Density Bonus As part of the Project, the Applicant is seeking concessions and a waiver under California Density Bonus law, which allow 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