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Specifically, we are concerned with the following Council amendments <br />proposed on the August 41h,2015 City Council Meeting. <br />Increasing the In -Lieu Fee from $5 to $15 per Square Foot: This <br />amendment triples the in -lieu fee from Staffs original <br />recommendation. For a typical 1,000 square foot unit this equates <br />to $15,000. This cost will ultimately be transferred to a would-be <br />home owner or renter, making it more expensive to build and <br />attain housing in Santa Ana. Furthermore, a fee of this magnitude <br />may push developers out of Santa Ana to other jurisdictions. <br />• Redefining Moderate Income from 110% of Area Median Income <br />to 80%: This proposed change inappropriately modifies the <br />definition of Moderate Income to be equivalent to a Low Income <br />Household. There was consensus in the stakeholder meetings <br />(and in the broader affordable housing arena) that achieving low <br />income affordability levels with ownership housing is impractical <br />for many reasons. Very low and low income levels are more <br />efficiently served through rental programs. <br />With the input from local stakeholders, Staff embarked on updating the <br />City's Housing Opportunity Ordinance to assist Santa Ana with <br />activating new housing in the City. We encourage the Council to <br />preserve the original recommendations presented by Staff in order to <br />incentivize new development. <br />Thank you for your thoughtful consideration. <br />Respectfully, <br />Michael Balsamo <br />Chief Executive Officer <br />