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May 3, 2016 - www.kennedycommission.org 17701 Cowan Ave„ Suite 200 Irvine, CA 92614 949 250 0909 Mayor Miguel Pulido and Council Members Fax 949 263 0647 City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 RE: Inclusionary Housing Agreement for the First and Pacific Townhome Project at 1506 1524 & 1548 West First Street Dear Mayor Pulido and Council Members, The Kennedy Commission (the Commission) is a broad based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $20,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering and working with Orange County jurisdictions to create effective housing policies that has led to the new construction of homes affordable to lower income working families. In Santa Ana, there is a significant need to address and provide housing opportunities for all economic segments of the community. As residents struggle to find available and affordable housing in Santa Ana, rents have continually increased. In the City, the 2016 average rent for a large rental complex was $1,786, which was a 3.7% increase from the year before.' These rents are far out -of -reach for many lower income working families in the City. The proposed First and Pacific Townhome development's affordable housing obligation does not meet the income levels required under the City's Housing Opportunities Ordinance. The proposed affordable housing units should be deed -restricted at low- and very low-income levels or the developer, The Olson Company, has the option to pay in -lieu fees. The Commission request the City to not approve the Inclusionary Housing Agreement and to deny the development requests and entitlement approvals until the proposed development meets the requirement of the Housing Opportunities Ordinance that ensures the proposed units are deed restricted at low- and very low-income levels. Please do not hesitate to contact me with any questions, I can be reached at (949) 250-0909 or cesarc@kennedycoimmission.org. Sincerely, Cesar Covarrubias Executive Director Tiny Spaces Not So Cheap: Studios are O.C.'s Priciest Rentals, Orange County Register, April 19, 2016.