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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />NOVEMBER 18, 2014 <br />TITLE: <br />INCLUSIONARY HOUSING AGREEMENT BETWEEN <br />THE CITY OF SANTA ANA AND 1901 E. FIRST <br />STREET OWNER, LLC —1901 E. FIRST STREET <br />(STRATEGIC PLAN NO. 5,3B) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />F11 »:100A01 <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1� Reading <br />❑ Ordinance on 2n° Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Receive and file the Inclusionary Housing Agreement with 1901 First Street Owner, LLC. <br />DISCUSSION <br />On November 28, 2011, the City Council adopted the Housing Opportunity Ordinance <br />( "Ordinance ") to encourage the development of affordable housing by requiring the inclusion of <br />affordable units within developments that involve either an increase in the density otherwise <br />available under applicable zoning and development standards; a change in land use designation <br />from a zoning regulation that does not permit residential uses to one that does permit residential <br />uses; or, the conversion of rental units to condominium ownership. This ordinance applied to all <br />projects entitled after November 2011, with the exception of any project that had an approved <br />development agreement. <br />Lyon Communities, developer of the 1901 E. First Street project, was intending to comply with <br />the affordable housing provisions of a previously approved development agreement for a project <br />that was entitled on the site in 2007. This agreement did not require the construction of <br />affordable units but required an in -lieu fee in the amount of $3,000 per unit. Prior to the approval <br />of the new entitlements for the Lyon project, the issue of providing on -site units at the project was <br />raised. After discussions with the applicant, on November 18, 2013, the City Council adopted <br />Ordinance No. NS -2850 and amended Development Agreement No. 2007 -01. The revised <br />agreement modified the inclusionary housing requirements for the Project and mandated the <br />construction of ten (10) low- income affordable units within the project. <br />The developer has been working with staff to complete the documents required by the Housing <br />Opportunity Ordinance. The Inclusionary Housing Agreement (Exhibit 1) satisfies the <br />inclusionary housing requirement of the Project and is consistent with the standards set forth in <br />the Ordinance. <br />19H -1 <br />