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PUBLIC 1# LAWCENTER PROVIDING ACCESS TO JUSTICE FOR ORANGE COUNTY'S LOW INCOME RESIDENTS December 20, 2016 Mayor Miguel Pulido and Members of the City Council City of Santa Ana 20 Civic Center Plaza P.O. Box 1988, M31 Santa Ana, CA 92701 RE: Opposition — Amendment to Developer Agreement 2015 -03 Dear Mayor Pulido and Members of the City Council: The Public Law Center is a non -profit pro bono law firm in Orange County that provides access to justice for low - income and vulnerable residents. Our practice includes providing representation to low- income families in housing- related matters, preventing homelessness, and advocating for affordable and inclusionary housing. We write to express our strong opposition to amending Developer Agreement 2015 -03 as requested by the developer, Heritage Village, LLC. In February 2016, the City Council made an impactful decision to rezone over 18 acres of land from light industrial to residential, allowing for the development of a 1,221 unit market -rate development, the Heritage Village Project, and providing a significant windfall profit to Heritage Village, LLC. During the 2015 amendments negotiation to the Housing Opportunities Ordinance (HOO), pipeline projects such as the Heritage Village Project received incentives to a pay a reduced inclusionary housing in -lieu fee. At that time, the Heritage Village Project elected to receive the incentives and entitlements in full, in exchange for paying the reduced in -lieu fee. The Heritage Village Project committed to a very important community benefit, specifically the payment of nearly $10 million in inclusionary housing in -lieu fees. Heritage Village, LLC requested that its in -lieu fee be allocated to the First Street Apartments project. First Street Apartments seeks to build 69 affordable family units, and it depends on the Heritage Village Project's full payment of the $10 million in -lieu fees to help fund the First Street Apartments Project. The development of the First Street Apartments Project coincides with the development of the Heritage Village Project, thereby fast tracking the development of affordable housing in Santa Ana. These are 69 units of affordable housing that are needed now; the community cannot afford to wait. As it currently stands, the HOO promotes the construction of new affordable housing units. It is no secret that there is a great need for affordable housing in the City and the lack of an adequate supply is a barrier to livability. The City has made efforts to meet the affordable housing need with the HOO as a policy to help promote and ensure the development of affordable housing for low- and very-low income residents. It is necessary that the City continue to move forward in its efforts. The approval of Heritage Village, LLC's proposed amendment will be a set back and provide uncertainty for the future development of affordable housing. This is because there is a scarcity of quality affordable housing units in Santa Ana. Santa Ana has made efforts to meet the affordable housing need with the HOO as a policy to help promote and ensure the development of affordable housing for low- and very-low income 601 Civic Center Drive West • Santa Ana, CA 92701 -4002 • (714) 541 -1010 - Fax (714) 541 -5157