The URL can be used to link to this page

Home My WebLink AboutPOWERPOINT - 65B HOUSING OPPORTUNITY ORDINANCE (HOO)HOUSING OPPORTUNITY ORDINANCE (HOO): STATUS REPORT AND FUTURE DIRECTION CITY COUNCIL December 4, 2018 65B HOO REVIEW AND FUTURE DIRECTION History of the  Inclusionary Housing Ordinance Santa Ana Ordinance  Effectiveness Programs in Other  Cities Future Direction for  Santa Ana Program CURRENT ORDINANCE IN-LIEU FEE Habitable square  feet of residence. Project SizeFee 20 or Fewer $5per sf Does not include:  Units Exterior hallways  More than 20 $15 per sf Common areas,  Units Landscape areas,  Open space, or  Exterior stairways  ORDINANCE REVIEW REQUIRED Between July 1, 2018 and December 31, 2018, staff shall report on the effectiveness of this ordinance and provide options for council consideration on the components of this ordinance, including, but not limited to, the monetary amount of inclusionary in-lieu fee per square foot. ORDINANCE EFFECTIVENESS: IN-LIEU FEES Total Amount of In-lieu Fees Collected: $13,885,436  Total Units developed with In-Lieu Fees: 108 units  Santa Ana Arts Collective (under construction): Received  $4,775,000 of in-lieu fees to develop 57 units of affordable housing Tiny Tim Plaza (pre-construction): $1.3 million of in-lieu fees  for 51 units The Link Interim Emergency Shelter: $3,131,700 of in-  lieu fees for 200 emergency shelter beds SANTA ANA ARTS AND TINY TIM PLAZA PROJECT ORDINANCE EFFECTIVENESS: ON-SITE UNITS BUILT 23 for sale homes 5 homes at Magnolia Lane  18 homes at City Ventures  10 apartments at the Marke IN LIEU FEES –POTENTIAL UNITS HOO # of Units Built Project NameIn-Lieu Fees Received On-Site* 15%10% Skyline Towers$ 1,047,000.003495335 The Marke at South $ 900,000.003004530 Coast Metro City Place $ 555,000.0073118 Harbor Venture$ 1,475,000.0079128 520 S. Harbor Blvd.$ 484,575.003564 The 301– $ 1,407,390.051822819 PRISMA Apts. The Line$ 1,224,437.202884429 VentanaWalk$ 757,600.0062107 HeritagePhase I$ 2,712,304.1073811174 HeritagePhase II$ 3,322,129.804837349 TOTAL$ 13,885,439.002589393263 OTHER CITIES WITH INCLUSIONARY HOUSING ORDINANCES City Set-Aside Affordable Housing Non-Residential (Year In-Lieu Fee & Notes Sq. Ft. BasisIncentivesApplicable Projects Requirement Requirement Impact Fee Adopted) $15 per square foot Options include build on-for residential site, off-site or in-lieu fee; projects larger than 20 units or more =$15 Santa Ana Only when changes to 20 unitsEncourages State Residential projects 5 or Limited to Residential 15%square foot. Less than 20 (2011) land use and zoning $5 per square foot Density Incentives more unitsConstruction units =$5 square foot designations are for residential requestedprojects ranging from 5-19 units Case-by-case basis. Fee is equal to the Brea median Development of 20 Units Development of Brea home price minus the Encourages State Limited to Residential 10%or More; Options include Case by CaseResidential Projects with (1993)maximum affordable Density Incentives Construction build on-site or in-lieu fee20 Units+ price for a comparable unit All residential Only projects with 15 developments must Irvine units or less can opt to Encourages State All residential Limited to Residential 15%include affordable Per Residential Unit (2003)pay in-lieu fee of Density Incentives developmentsConstruction housing; donation of land $16,693/unit is also an option All Development; Only Huntington $16,420 to $51,466/unit All new residential projects under 30 units Encourages State Limited to Residential Beach 10%depends on the number of Per Residential Unitprojects three or more can opt to pay an in-lieu Density Incentives Construction units units in size. (2004) fee Options include build San onsite, off-site or in-lieu 1% of construction Local Density Limited to Residential Clemente 4%fee and only applies to Case by Case valuationBonusesConstruction projects of six units or (1980) more In Lieu Fee per Square Foot $33.86-$70.72 Residential Impact Options include build depending on the Fee Reduction onsite, off-site or in-lieu Applies to housing Pasadena submarket and size of $33.86-$70.72 per $957 vs $21,651 Limited to Residential 15%fee and only applies to developments of 10+ (2001)project. $41,645-$60,110 Square Footper 2-bd unitConstruction projects of six units or units per market rate unit Building Permit Fee more depending on the partially waived submarket. OTHER CITIES WITH INCLUSIONARY HOUSING ORDINANCES City Set-Aside Affordable Housing Non-Residential (Year In-Lieu Fee & Notes Sq. Ft. BasisIncentivesApplicable Projects Requirement Requirement Impact Fee Adopted) Formula (Monthly Projects that are market rent – proposing the Options include build affordable rent)x 10 year San Juan construction, addition, Limited to onsite or in-lieu fee and affordability covenant x Capistrano 10%Per Residential UnitN/Aor interior remodeling of Residential applies to projects of 2 10% = Housing In-Lieu any residential project Construction (1995) units or morefee per unit. Estimated involving two (2) or more between $10,400- units $14,942 All residential units except single family West Inclusionary projects The majority of projects Limited to $13.19-$28.30 per Encourages State homes non profit Hollywood 20%greater than 10 units provide the affordable Residential Square FootDensity Incentives developers, and all low cannot pay the in-lieu fee.housing units on-site.Construction (1986) or moderate income housing projects. Any building permits that Exemptions for results in additional affordable housing; non- $8-$18 dwelling units or guest residential development Fee calculated by type $1-$18 rooms additional non-under 15,000 sq. ft.; Includes $3-5 for Los Angeles based on type of $3-$5Measure JJJ Transit 15%residential floor area, a ADUs; Certain grocery non residential (2017)development project and plus $3 if there is a Density Bonuses single family residential stores; Adaptive reuse uses per sq. ft. Cost of Market areanet loss of dwelling project resulting in a net projects; Non-residential units increase of more than construction within 1500 sq. ft. promise zones. $10.57-$26.30 per Square Foot for $4 per sq. ft. Glendale Inclusionary Zoning Ownership Projects\[Moving toward Residential projects 5 or citywide for 11-15% (2018)Ordinance and $22.11-$55 per mandating on-site\]more unitscommercial Square Foot for development Rental Residential under 10 All new residential units, the fee rate per Exemptions for development that is at square foot is on a residential development least two units is subject to sliding scale and Sliding scale under with at least 10% of Limited to San Diego an Inclusionary Affordable increases for each 10 units and total dwelling units 10%Residential (2003)Housing Fee. The developer additional unit. For $10.82 for larger affordable to and Construction can also provide affordable projects that are 10 projectsoccupied by households units on or off-site of the units or more, the earning up to 65% of project.current fee is $10.82 per AMI. square foot. KEY POLICY AREAS TO EVALUATE CITY DENSITY BONUS  Current ordinance allows second density bonus on top of State Density  Bonus –Can almost double base density permitted. However, these are a given. Project are not required to design or operate in ways that promote affordable housing goals. Options:  Remove City Density Bonus  Modify so that City Density Bonus is Merit-based  No change  PERCENT SET-ASIDE  Current ordinance: 15% Low income and 10% Very Low income. Other  cities also allow 15% with no incentive for Very Low income, Options:  Change to 15% with no reductions  Modify to allow a reduced percent set-aside for Very Low Income as well as  other housing including Special Needs Housing or Housing types that meet our RHNA requirements. No change.  KEY POLICY AREAS TO EVALUATE IN-LIEU FEE: Calculation  Current ordinance: Gives developer option to pay in-lieu fee rather than  build on site. This is consistent with other cities. However, the resulting revenues generated are greater than $15 per sf Options:  Eliminate the In-Lieu fee entirely. Require all affordable units to be build on  site. Modify the fee to be more comparable with other cities’ fees.  No change  IN LIEU FEE: Payment Timing  Current ordinance: Requires payment for entire project at issuance of  building permits. For large, phased developments it can be difficult for the City to administer and difficult for the developer to finance. Options:  No change. Continue to require in-lieu fee to be paid at building permit  issuance. Allow payment of in-lieu fees in phases based on a developer’s project  schedule. Allow payment of in-lie fees at issuance of the certificate of occupancy or  when the building permit is finalized. KEY POLICY AREAS TO EVALUATE APPLICABILITY OF THE ORDINANCE: General Plan Update Completion  Current ordinance: Applies only to housing projects that result in a change  of density or use. This does not allow the City to require inclusionary housing for residential projects in residential zones. It is anticipated with the adoption of the new general plan all housing projects will be in residential zones. Options:  Allow the ordinance to remain recognizing that revenues and housing units will  decrease once the general plan update is completed. Modify the ordinance to apply to all housing projects.  APPLICABILITY OF THE ORDINANCE: Adaptive Reuse  Current ordinance: The Housing Opportunity Ordinance requires adaptive  reuse projects to provide onsite affordable housing or pay an in-lieu fee. Adaptive Reuse Ordinance allows developers to convert vacant or underused existing office or commercial space to residential uses. Certain incentives are provided to encourage the provision of housing in this way. Options:  Allow the ordinance to remain  Create a reduced requirement for adaptive reuse projects  Eliminate inclusionary housing requirements for adaptive reuse projects.  KEY POLICY AREAS TO EVALUATE APPLICABILITY OF THE ORDINANCE: Non-residential Uses  Current ordinance: Applies only to housing projects that result in a  change of density or use. In addition, some other cities, require inclusionary housing fees for non-residential projects. Options:  Modify the ordinance to create an inclusionary housing fee for non-  residential uses. Allow the ordinance to remain the same.  FUTURE DIRECTION Next Steps: Conduct Stakeholder Outreach With Private  Developer Community and Nonprofit Community Present a Result of Findings and Bring back a  Draft Revisions for a City Council Work Study Session prior to the end of the Fiscal Year.