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CLUE Clergy t3 Linty United for Economic Justice Board of Directors Rev. Norman Copeland Chair So Cal AME Church Robert A. Branch SEIU-USWW/Security Division Rabbi Dr. Aryeh Cohen Professor, American Jewish University Rev. Jim Conn (Ret.), Dev't United Methodist Church Rabbi Stephen Einstein Founding Rabbi Emeritus, Congregation B'nai Tzedek The Rev. Francisco Garcia Treasurer Rector, Holy Faith Episcopal Church, Inglewood Father Mike Gutierrez St. John the Baptist Catholic Church, Baldwin Park Rev. Dr. Sarah Halverson Care, Fairview Community Church, Costa Mesa Betty Hung, Esq. Aslan Americans Advancing Justice Rev. Stephanie Jaeger, Ph.D Pastor, St. Matthew's Lutheran Church, North Hollywood Glynndana Shevlin Disney Worker, UNITE -HERE Rev. William Smart Vice Chair, Secretary SCLC of Greater Los Angeles Mary Stancavage Against the Stream Buddhist Meditation Society Bishop Mary Ann Swenson Bishop, United Methodist Church (ret.) Rev. Heidi Worthen -Gamble Presbytery of the Pacific Richard Zaldivar The Wall Las Memorias Project Full-time Staff Rabbi Jonathan Klein, Executive Director Irene Arellano Christopher French Sandra Ortega Grecia Lopez -Reyes Gabriella Rosco Guillermo Torres February 3, 2017 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 SUBJECT: First Street Apartments - 1440 E. First Street Santa Ana, CA City Council Item 80A, February 7, 2017 Dear Mayor Pulido and Members of the City Council: Clergy and Laity United for Economic Justice (CLUE) is well aware of AMCAL's affordable housing proposal located on First Street in the City of Santa Ana. We are writing to express our strong support for this type of housing which is needed now more than ever. Clergy and Laity United for Economic Justice works closely with working families and immigrant communities throughout Santa Ana who are in great need of affordable housing during the current housing crisis in our City. The housing affordability crisis in Santa Ana is increasing each year, including home purchase prices and apartment rents that our residents can't afford. Skyrocketing rents and home prices are forcing our families to live in overcrowded housing and substandard housing conditions. Our families are extremely rent burdened, as most of their limited income (over half) is used to pay for housing costs. We support AMCAL's proposal for several reasons: Given the housing crises, we need affordable housing to be developed immediately, and First Street is approved and ready to move forward. The rental units are 100% affordable to households earning 30% and 60% of Area's Median Income, and half of the project provides three and four bedroom units designed for larger families— a great need and almost non-existent in the Santa Ana housing market. After two years of work, the First Street Apartments project is almost a shovel ready project and prepared to apply for the tax credit financing next month to break ground this year. We know that AMCAL's proposal was approved last year by the City with unanimous approval from the Planning Commission and City Council. We also know that First Street Apartments was approved by the City Council as a companion project of the Heritage to meet the requirements of the Housing Opportunity Ordinance. As a result of The Heritage receiving recent approval to pay the in -lieu fees in phases, First Street Apartments needs the funding requested today. The City funding of $8.795 million ($2.6 million from The Heritage and $6.195 million from the City) is needed to make the tax credit application competitive for an award, similar to past projects funded by the City. Without the necessary funding from the City of Santa Ana, First Street Apartments cannot go forward. First Street Apartments are also part of a key revitalization effort to develop residential uses along the First Street corridor - an important gateway for the City of Santa Ana. Our local residents deserve to be a part of this gateway and not be priced out by market rate projects in our City. Our residents can't afford to live in the newer market rate housing developed in Santa Ana. For example, at Nineteen 01, a luxury apartment community located down the street from First Street Apartments, the rent for a two bedroom apartment ranges from $2,700 to $4,100 per month, which is disheartening because none of our families can even come close to afford it.