HomeMy WebLinkAboutPOWERPOINT - 60A - Density Bonus Agreement
City Council: October 16, 2018
Steven Mendoza
CDA Executive Director
Item # 60A
1
On 9/11/2017, Density Bonus
Agreement was approved by
Planning Commission
On 5/1/2018, the Agreement was
continued at City Council with
direction to staff to provide
additional information
2
State of California Density Bonus Law adopted in
1979:
◦Allows developers to seek increases in allowed
zoning density in exchange for providing
additional affordable housing units on-site.
◦Allows developers to request incentives or
waivers (variances) from development
standards.
◦Allows for a 20% Density Bonus for Senior
Projects.
3
Santa Ana’s Density Bonus Ordinance Adopts the
State’s Law:
◦Requires a Developer to submit the Agreement
to City Council for approval or rejection
City’s Housing Opportunity Ordinance (updated
in November 2015) augments the State’s Density
Bonus Law and the City’s Ordinance by allowing
a developer to seek an additional 35 percent
density bonus calculated from base density.
4
Density or Bonus Allowed for Project Provided
285 units (3.17 acres x 90
units/acre base density used
as a standard for
Base Density 285 units
developments in areas
designated DC by the General
Plan Land Use element)
20-Percent Density Bonus for
Senior Projects Provided by 285 x 20% = 57 units + 57 units
California Density Bonus Law
35-Percent Density Bonus
Provided by the City’s
285 x 35% = 100 units + 76 units
Housing Opportunity
Ordinance
Total Units 442 units maximum 418 units proposed
5
415 units of affordable housing:
◦42 units for very low-income
◦373 units for low-income
Affordable rents tied to tax credit rents
Preference will be given to households that live
and/or work in the City or have a Section 8
Voucher
Discounted or no-cost supportive services,
programming, and amenities that promote
independent living to be available to the residents
6
7
Developer requests modifications to the following sections of the
agreement: local hiring/procurement, increased energy efficiency
standards, increased accessibility standards, or provision of social
services
Local hiring/procurement:
◦2.11 Local Sourcing Plan. Developer agrees to make a good faith
effort to encourage contractors and suppliers to hire and procure
locally, to the extent that it is cost effective and does not delay the
overall project development schedule. Prior to issuance of Building
Permit, Developer shall develop and submit to the Community
Development Agency (the “CDA”) a local sourcing plan for the
Project targeting, to the extent feasible, the hiring of qualified
workers, construction contractors, or the purchasing of goods
locally within the City of Santa Ana. The plan must be reviewed and
approved by the CDA which if not granted or denied within five (5)
Business Days, shall be deemed approved (with such approval not to
be unreasonably withheld) and be implemented for the construction
of the project prior to issuance of Building Permit.
8
Increased energy efficiency standards:
◦4.14 Alternative Transportation and Energy Source, Resource
Conservation, and LEED Certification. While not a condition of the
project’s Density Bonus, in recognition of the City’s desire to
optimize the energy efficiency of the project, Developer agrees to
consult with the project design team, a CABEC certified 2016
Certified Energy Analyst, a LEED AP Homes (low-rise and mid-rise),
LEED AP BD+C (high rise), National Green Building Standard (NGBS)
Green Verifier, or GreenPointRater (one person may meet both of
these latter qualifications) early in the project design process to
evaluate a building energy model analysis and identify and consider
energy efficiency or generation measures beyond those required by
the TCAC minimum construction standards. Prior to the meeting,
the energy analyst shall complete an initial energy model based on
either current T24 standards or, if the project is eligible, the
California Utility Allowance Calculator using best available
information on the project. To the extent financially feasible for the
project, Developer agrees to incorporate and optimize energy
efficient building materials, methods, and amenities.
9
Increased accessibility standards:
◦4.15 Emergency Backup Generator. While not a
condition of the project’s Density Bonus, in
recognition of the City’s desire to optimize the
safety and welfare of residents of the project,
Developer agrees to consult with the project design
team regarding the appropriateness of the
emergency planning, routing, lighting, as well as
ingress and egress of elevators, hallways, common
corridors, parking areas, and stairways. To the
extent financially feasible for the project,
Developer agrees to reasonably incorporate and
optimize such safety provisions and amenities
above applicable building code.
1
0
Provision of social services:
◦4.13 Onsite Supportive Services, Programs and
Amenities. Throughout the Term of this
Agreement, and to the extent such can be
coordinated with and largely supplied by
philanthropic and other social welfare providers,
Developer shall provide residents of the Project
access to discounted or no-cost onsite supportive
services, programming, and amenities that
promote independent living and include but are
not limited to: health and wellness services,
transportation services, social activities, and
physical or recreational amenities.
1
1
The Developer is proposing to build 970 affordable housing
units on two sites located at 2222 and 2114 East First
Street.The Planning Commission approved the entitlements
for these projects on September 11, 2017 and June 4, 2018,
respectively.
On December 19, 2017, City Council conducted a TEFRA
hearing for all three projects. During the hearing and within
the staff report, it was made clear that holding the TEFRA
hearing was not a commitment to approve entitlements nor to
provide any other funding for these projects.
On June 26, 2018, the Developer submitted a written request
to the City for a sole source award equal to $60 million
comprised of a $15 million loan and $1.5 million per year
over a 30-year period.
1
2
On March 20, 2018, City Council adopted Affordable
Housing Funds Policies and Procedures to provide a
transparent, open and fair process for developers,
businesses, non-profit organizations, individuals and
other entities interested in the allocation of affordable
housing funds and land assets available to the City for
affordable housing development.
Per that Policy, on July 2, 2018 an RFP was issued.
◦
Thirteen proposals were received following the issuance
of that RFP.
On August 20, 2018, the City responded to the
Developer’s request for financial assistance by referring
them to our Affordable Housing Funds Policies and
Procedures and the RFP that was issued on July 2, 2018.
1
3