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IN Clergy & Laity United for Economic Justice Board of Directors Rev. Norman Copeland Chair So Cal AME Church The Rev. Frank Alton Rector, Congregation of St. Athanaslus at the Cathedral C ter of St. Paul Robert A. Branch SEIU -USWW /Security Division Rabbi Dr. Aryeh Cohen Professor, American Jewish University Rev. Jim Conn (get.), Dev't United Methodist Church Rabbi Stephen Einstein Founding Rabbi Emeritus, Congregation B'nai Tzedek Esperanza Fonseca Young Religious Leader Organizer, Fight For Fifteen The Rev. Francisco Garcia Treasurer Priest in Charge, Holy Faith Episcopal Church, Inglewood Father Mike Gutierrez St. John the Baptist Catholic Church, Baldwin Park Rev. Sarah Halverson -Cano Fairview Community Church, Costa Mesa Betty Hung, Esq. Asian Americans Advancing Justice Rev. Stephanie Jaeger, Ph.D Pastor, St. Matthew's Lutheran Church, North Hollywood Glynndana Shevlin Disney Worker Rev. William Smart Vice Chair, Secretary SCLC of Greater Los Angeles Rev. Heidi Worthen - Gamble Presbytery of the Pacific Richard Zaldivar The Wall Las Memories Project November 28 "', 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 Development Agreement No. 2015 -03 Dear Mayor Pulido and Councilmembers: CLUE educates, organizes, and mobilizes the faith community to accompany working people and their families in their struggle for good jobs, dignity and justice. Affordable housing is an essential component of Economic Justice. We must provide housing opportunities for all economic segments of Santa Ana. Families are extremely rent - burdened, over 50% of their limited income typically used to pay for housing costs. meanwhile, rents continually increase. Minimum wage eamers needs roughly 3.2 full -time jobs to afford rent for a typical two - bedroom unit. Santa Ana's average large rental complex rent was $1,786 this year, a 3.7% increase from 2015. These rents are far out of reach for low income working families, forcing them to choose between paying for their housing or for other necessities such as food, transportation, and healthcare. The City recognizes the dire need for affordable housing, creating a Housing Opportunity Ordinance. This ordinance was reviewed in 2015 with a working group created by the city consisting of housing advocates and developers, including the Heritage Village Project developer. This group agreed to clear standards that were established in the 2015 amendment of the Housing Opportunity Ordinance. During the 2015 amendments negotiation, pipeline projects such as the Heritage Village Project received incentives to a pay a reduced inclusionary housing in -lieu fee. The amendment assured development of affordable housing projects and provided different options to meet the city's affordable housing goals. In particular, it provided the developer with the option to provide affordable housing units on -site or to pay an in -lieu fee. In February of 2016, the City Council decided to rezone over 18 acres of land from light industrial to residential, allowing for the development of 1,221 unit market -rate development, the Heritage Village Project, and providing a significant windfall profit to the developer. At that time the developer elected to receive the incentives and entitlements in full in exchange for paying the reduced in -lieu fee. The Heritage Village Project developer committed to a very important community benefit, specifically the payment of nearly $10 million in inclusionary housing in -lieu fees. The lack of an adequate affordable housing is a barrier to livability. The City has made efforts to meet the affordable housing need with the Housing Opportunities Ordinance 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 payment of nearly $10 million in inclusionary housing in -lieu fees is needed now; we cannot afford to wait for phased payments. The approval of this proposed amendment to the Development Agreement will be a setback and provide uncertainty for the future development of affordable housing. We strongly oppose amending the Development Agreement as requested by Heritage Village OC, LLC /Alliance Residential. The developer sought to amend the Housing Opportunity Ordinance and the Planning Commission voted against recommending the proposed amendment to the City Council on Monday, July 25, 2016. The Housing Opportunities Ordinance has been preserved and adopting this amendment to the Development Agreement would undermine its preservation. The Planning Commission recognized this on Monday, November 14, 2016 when they voted against recommending the approval of the amendment to the City Council. We strongly urge the City Council to vote against approving the amendment to Development Agreement No. 2015 -03. Blessings, abbi Jonathan ll Executive Director 464 Lucas Ave 9202 + Los Angeles, CA 90017 • 213 -481 -3740 • wwwxlucjast ce.org • Printed in -house