32A - DENSITY BONUS EDWARD PADILLA JR

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DBA 2010-01 and TTM 2009-01 August 9, 2010 Page 3 creates an economic advantage to the developer, which could then be used to subsidize any gap between market rents or sales prices and the price at which the unit would be affordable to those making less than the area median income. Under this law California cities, including charter cities, were required to adopt implementing legislation, which Santa Ana did in 2001 with the adoption of SAMC Article XVI.I - Density Bonus for Affordable Housing. Under this article, developers wishing to construct projects that meet the requirement for a specified percentage of affordable housing units may request to enter into a Density Bonus Agreement with the City and, pending approval of such an agreement, may also request deviations from the City's existing density caps and development standards that would be necessary to facilitate the development of the project. Under the State Density Bonus Law cities must grant the request of the applicant, unless it adopts written findings, based upon substantial evidence, that the request is not necessary in order to provide affordable housing, or that there would be a specific adverse impact upon public health and safety, or the physical environment, or on specified historic properties, and for which there is no feasible way of mitigating or avoiding the impact without rendering the project unaffordable to low and moderate income households. The City further supported the provisions of the State Density Bonus Law through the adoption of policies contained within the 2006-2014 Housing Element. In particular, Housing Program No. 25 of the Housing Implementation Summary states that the City will implement the density bonus ordinance to assist in the development of extremely low, very low, and low income rental units, and moderate income condos, and senior housing. Density Bonus Implementation of the Proposed Project Pursuant to the State law, the applicant is seeking an increase in density to that allowed by the Zoning district and General Plan, as well as deviations from the City's adopted development standards. As such, the developer has requested to enter into a Density Bonus Agreement with the City. The Density Bonus Agreement will be considered separately by the City Council and is not the subject of this request. Any recommendations for approval of the deviations from densities and development standards will be pending until approval of the Agreement. Both the State Density Bonus Law and the SAMC state that the law only applies to projects of five or more units. The proposed project meets this standard. There is a difference between the State law and the SAMC regarding the total number of units which may be constructed in excess of adopted densities. In the case of the SAMC, the development shall be permitted a density bonus of the amount of units requested by the applicant, up to a total project dwelling unit count of 125 percent. Under State law, the minimum bonus for projects providing 20 percent of the units to Lower income households is 35 percent. The following table details the percentage increases as they pertain to this project. 32A-5