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HomeMy WebLinkAbout60A - DENSITY BONUS AFFORD HOUSINGREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MAY 7, 2019 TITLE: APPROVE A DENSITY BONUS AGREEMENT TO ALLOW A 552 UNIT AFFORDABLE RENTAL PROJECT AT 2110, 2114, AND 2020 EAST FIRST STREET (STRATEGIC PLAN NOS. 3, 2; 5,3) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: 61=•r v ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute a Density Bonus Agreement with Santa Ana Pacific Associates, and Santa Ana Pacific Associates II, or assigns, for a 55-year term, for the development of a 552-unit affordable rental project at 2110, 2114, and 2020 East First Street, subject to non -substantive changes approved by the City Manager and City Attorney. PLANNING COMMISSION ACTION At a Special Meeting on June 4, 2018, the Planning Commission recommended approval of the Density Bonus Agreement No. 2017-02 by City Council as conditioned to allow construction of a 552-unit affordable rental residential community at 2110, 2114, and 2020 East First Street located in the Metro East Mixed Use Overlay District (OZ-1). Planning Commission approved the recommended action by a vote of 4:1 (Bacerra opposed). DISCUSSION The Pacific Companies in partnership with Jamboree Housing ("Developer') is seeking to develop a 552-unit affordable housing project at 2110, 2114 and 2020 East First Street ("Project'). In order to do so, they have requested specific concessions permissible under California Density Bonus Law and the City's Housing Opportunity Ordinance. While the Density Bonus Law is not going to increase the number of units that they can actually build, the concessions will allow the Developer to build the proposed number of units. The Developer is seeking approval of this Density Bonus Agreement in order to receive their building permit and move forward on their Project. Specifically, the California Density Bonus Law allows developers to seek increases in allowed zoning density by providing additional affordable housing units on -site. To make development of on -site affordable housing units feasible, the law allows developers to request incentives or waivers, which are essentially variances from development standards. Specifically, the developer requested the following concessions: ' 60A-1 Density Bonus Agreement for 2110, 2114, and 2020 East First Street May 7, 2019 Page 2 Standard Required by the MEMU Provided Stories Minimum 3, no maximum 6 Minimum Site Area 1 acre 6.89 acres Permitted Frontage Forecourt, shopfront, gallery, or Shopfront, with plaza on First Street arcade as permitted by MEMU Publicly Accessible Open Space 15 percent of total lot area Less than 2 percent — Requires Concession (1 of 3), Cat. Gov't Code Sec. 65915 d 1 Private/Common Open Space 100 square feet per unit 104 square feet per unit Building Setbacks 0-20 feet (front), 0-10 feet (side), 100 6 (front), 6-40 (side), 45 (rear) — feet (rear) Requires Concession (2 of 3), Cat. Gov't Code Sec. 65915 d 1 Residential Parking 2 spaces per unit overall — every unit 1.03 spaces per unit — Requires must be allocated at least 1 space Concession (3 of 3), Cal. Gov't Code Sec. 65915 d 1 Courtyard height -to -width ratios 2 to 1 (enclosed on four sides), 3 to Complies; various ratios in excess of 1 (open on one or more sides 2 to 1 and 3 to 1 provided Driveway width 24 feet maximum 38-46 feet — Requires Waiver, Cat. Gov't Code Sec. 65915 e 1 Building Massing A variety of massing, volume, and Complies; the building features a step -backs are required to increase step -back along First Street and building articulation breaks in volume to reduce massing The first version of the Density Bonus Law was adopted in 1979 and has been amended from time to time. In early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to justify a density bonus and places the burden on local granting authorities to prove that the requested incentives/waivers are not financially warranted. The California Density Bonus Law applies to projects proposing five or more residential units and grants density bonuses to those projects meeting certain requirements for affordability levels and types of housing (family, veterans, etc.). Pursuant to State law and the City's Housing Opportunity Ordinance, rental units in such developments that are designated "affordable" must remain so for at least 55 years. For affordable housing projects, a developer may seek a density bonus up to 20 percent from base density. In addition, the City's Housing Opportunity Ordinance (HOO), last updated in November 2015, augments the California Density Bonus Law by allowing a developer to seek an additional 35 percent density bonus calculated from base density (SAMC Sect. 41- 1904.1). A summary of the project's proposed density calculation is provided below: Project Density Calculation Density or Bonus Allowed for Project Provided 620 units (6.89 acres x 90 units/acre base density used as a standard for Base Density developments in areas designated 552 units DC by the General Plan Land Use element 35-Percent State Density Bonus +217 units 620 x 0.35 0 35-Percent Bonus Provided by the +217 units (620 x 0.35) 0 Housing Opportunity Ordinance Total Units 1054 units maximum 552 units proposed 60A-2 Density Bonus Agreement for 2110, 2114, and 2020 East First Street May 7, 2019 Page 3 Although the Project is proposing a total number of units (552) that is below the maximum City - prescribed density for the Project site based on its acreage (620 units), the developer is able to seek up to three (3) density bonus concessions and a waiver because it is a 100-percent affordable Project. The three (3) requested concessions and the waiver are permitted by State Density Bonus Law. Specifically, the developer is seeking concessions allowed pursuant to Government Code section 65915(d)(1) as listed above pertaining to: publicly accessible open space; building setbacks; and, residential parking; as well as a waiver allowed pursuant to Government Code section 65915(e)(1) pertaining to driveway width. In order to receive these three (3) density bonus concessions and a waiver, the Developer has agreed to restrict all units in the Project, except for five (5) manager's units, to eligible low- and very low-income households. Based on the above calculations, the proposed Project complies with both the California Density Bonus Law and the City's Housing Opportunity Ordinance. As such, a Density Bonus Agreement has been prepared (Exhibit 1). The Developer has paid the City's Density Bonus Setup fee in the amount of $82,084.05 to prepare this agreement. The Planning Commission Staff Report from June 4, 2018 provides much more detailed information regarding the requested incentives/concessions (Exhibit 2). Key Items in the Density Bonus Agreement The following is a list of key items agreed upon in the Density Bonus Agreement: • The Project shall have no less than five -hundred and fifty-two (552) units which shall be comprised of twenty-seven (27) one -bedroom units, and two -hundred and thirty-nine (239) two -bedroom units, and one -hundred and forty-six (146) three -bedroom units, and one - hundred and forty (140) four -bedroom units, of which five (5) unrestricted units (i.e. manager's unit) with unit sizes as may be determined by the Developer. The affordable units shall be restricted to use and occupancy by eligible households for a total period of no less than fifty-five (55) years including: o No less than fifty-six (56) affordable units in the Project shall at all times during the term of the Agreement be rented to very low income tenants at 50% Area Median Income (AMI); and o No less than four -hundred ninety-one (491) affordable units in the Project shall at all times during the term of the Agreement be rented to low income tenants at 60% Area Median Income. • Affordable Rent Schedule. The affordable rents shall be determined by the regulatory agreements entered into between the Developer and the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC) governing the Project. • Maintenance. The Owner shall, at all times during the term of this Agreement, cause the Property and the Project to be maintained in a decent, safe and sanitary manner. If at any time the Developer fails to maintain the Project then the City shall have the right to enter upon the applicable portion of the Project and perform all acts and work necessary to protect, maintain, and preserve the Project, and to attach a lien upon the Property, or to assess the Property, in the amount of the expenditures arising from such work. • Maintenance Agreement. Developer shall execute a Maintenance Agreement with the City which shall be recorded against the property prior to occupancy. 60A-3 60A-4 Density Bonus Agreement for 2110, 2114, and 2020 East First Street May 7, 2019 Page 4 • Marketing Program. Developer shall prepare and obtain City's approval a marketing program for the leasing of the units at the Project prior to occupancy. • Management Plan. Developer shall submit a "Management Plan" to the City which sets forth in detail Developer's property management duties, a tenant selection process in accordance with the Agreement, a security system and crime prevention program, the procedures for the collection of rent, the procedures for eviction of tenants, the rules and regulations for the Property and manner of enforcement, a standard lease form, an operating budget, the identity and emergency contact information of the professional property management company to be contracted with to provide 24-hour onsite property management services at the Property ("Property Manager'), and other matters relevant to the management of the Property. • Selection of Tenants. The Developer shall give preference in leasing units to households that live and/or work in the City of Santa Ana or who have an active Housing Choice Voucher issued by the Housing Authority of the City of Santa Ana or any other Public Housing Authority. Implementation of the preference will be monitored by staff in the Community Development Agency. • Monitoring. Owner agrees to pay a reasonable fee for the City's obligation to monitor Owners compliance with the affordability restrictions contained in the Agreement. • Application and Financial Preparedness. Developer shall submit for review and approval, a booklet to inform interested persons regarding minimum application and eligibility requirements and to assist interested persons with application and financial preparedness and eligibility for residency at the Project at the initial leasing of the units. Developer shall also hold a minimum of two workshops to be coordinated by the Developer at least 12 months prior to the initial leasing of the units. • Onsite Supportive Services, Programs and Amenities. Throughout the term of the Agreement, 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 is not limited to: health and wellness services, transportation services, social activities, and physical or recreational amenities. • Alternative Transportation and Energy Source, Resource Conservation, and LEED Certification. 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 GreenPoint Rater (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. • Crime Free Housing. Developer shall work with City staff to develop a crime free housing policy, procedure, and design plan. • Onsite Parking Management Plan. Developer shall provide onsite parking for residents and visitors of the Project and actively monitor the parking demand of the Project site. Developer shall continually monitor and take appropriate measures to manage the parking 60A-5 Density Bonus Agreement for 2110, 2114, and 2020 East First Street May 7, 2019 Page 5 demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way. As part of the Parking Management Plan, Developer must implement a parking shuttle and/or valet service. Prior to issuance of the Certificate of Occupancy, Developer shall submit and obtain approval from the Planning and Building Agency for a Parking Management Plan. The Density Bonus Agreement has been signed by the Developer to acknowledge their acceptance of the terms. The Agreement is not considered final until the City Council has reviewed and approved the Agreement and the Agreement is executed by all parties. Project Description The Project includes demolition of two commercial buildings and construction of an affordable rental family -oriented mixed -use community with 10,000 square feet of leasable commercial space. The Project will contain two structures consisting of a ground -level parking area and five levels of residential above. The original addresses of the two commercial buildings that were demolished were 2110 and 2114 East First Street. The adjacent office building at 2020 East First Street was included in the public noticing. Once constructed, the two new structures will receive new addresses. 2110 will become 2112 East First Street, and 2114 will become 2116 East First Street. The new development does not alter or affect the existing office building located at 2020 East First Street. Although not part of the current entitlement, the applicant has submitted a tentative parcel map application to subdivide the Project site forfinancing purposes in orderto facilitate construction of both buildings. The tentative parcel map application will require review and action by the City's Zoning Administrator. A total of 552 affordable rental units will be provided on the Project site. The project will include one -bedroom units (27), two -bedroom units (239), three -bedroom units (146), and four -bedroom units (140) ranging in size from 610 to 1,266 square feet. All units will contain full kitchens, bedrooms, bathrooms, in -unit storage, and open/common (living) areas. A total of 566 resident and guest parking spaces will be provided in an at -grade parking area beneath the residential levels, as well as 50 parking spaces for the commercial component and 4 spaces for the leasing office and the development's employees. As proposed, the Project requires approval of a waiver from the Metro East Mixed Use (MEMU) overlay district's development standards and concession of the California Government Code Section 65915 (d)(1) for the total number of residential parking spaces per unit. Two (2.0) spaces per unit overall are required by the MEMU and 1.03 spaces per unit are provided. Constructing 2.0 parking spaces per residential unit on the Project site would require the developer to construct an additional level of parking either above- or below -grade resulting in increased construction costs and/or a loss of an entire level of residential units. The potential impacts to the Project and neighborhood resulting from the reduced parking will be mitigated by the inclusion of a parking shuttle and/or valet service on site. The concession for onsite parking was included in the Site Plan Review No. 2017-09 approved by the Planning Commission as conditioned. The Planning Commission Staff Report from June 4, 2018 provides detailed information regarding this concession. The approval of the Density Bonus Agreement is in compliance with Section 41-1600 and Section 41-1904.1, et seq., of the Santa Ana Municipal Code, and Section 65915, et seq., of the California 60A-7 .1 m Density Bonus Agreement for 2110, 2114, and 2020 East First Street May 7, 2019 Page 6 Government Code. However, the approval of the Density Bonus Agreement shall not be construed as approval of the financing requested by the Developer for the Project and does not bind the city in any form to provide future funding for the development of the Project. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 3 - Economic Development, Objective #2 (create new opportunities for business/job growth and encourage private development through new General Plan and Zoning Ordinance policies), Objective # 5 (leverage private investment that results in tax base expansion and job creation citywide) and Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT There is no fiscal impact associated with this action. Steven A. Mendoza Minh Thai Executive Director Executive Director Community Development Agency Planning and Building Agency Exhibits: 1. Density Bonus Agreement 2. Planning Commission Staff Report from June 4, 2018 60A-9 60A-10 EXHIBIT 1 RECORDING REQUESTED BY: AND WHEN RECORDED MAIL TO: City of Santa Ana Clerk of the Council 20 Civic Center Plaza (M-30) P.O. Box 1988 Santa Ana, California 92702 Attention: Clerk of the Council Free Recording pursuant to Govemment Code 27383 DENSITY BONUS HOUSING AGREEMENT This DENSITY BONUS HOUSING AGREEMENT ("Agreement'), made and entered into this 16's day of April, 2019 ("Effective Date"), by and between the City of Santa Ana, a charter city and municipal corporation of the State of California ("City"), and Santa Ana Pacific Associates,- A California Limited Partnership, a California limited partnership, and Santa Ana Pacific Associates II, A California Limited Partnership, a California limited partnership (collectively, "Developer"). City and Developer are sometimes referred to collectively as the "Parties" and individually as a "Party." RECITALS A. Developer is the leasehold owner of certain property located within the City of Santa Ana, County of Orange, State of California, commonly known as 2110, 2114, and 2020 East First Street, Santa Ana, California, and legally described as set forth in Exhibit A attached hereto and incorporated herein by this reference as if set forth in full ("Property"). B. Developer is proposing to develop an affordable rental family -oriented mixed use commercial and residential community consisting of 9,998 square feet of leasable commercial area and five -hundred and fifty-two (552) residential units on the Property as more particularly set forth in Density Bonus Application No. 2017-02 and Site Plan Review No. 2017-09 ("Project'). C. Santa Ana Municipal Code sections 41-1600, et seq. ("City Density Bonus for Affordable Housing"), and California Government Code sections 65915, et seq. ("State Density Bonus Law"), set forth a process to provide increased residential densities to property owners who guarantee that a portion of their residential development will be available to low income, very low- income, or senior (also known as "qualified") households. These regulations are intended to materially assist the housing industry in providing adequate and affordable housing for all economic segments of the community and to provide a balance of housing opportunities for very low-income, low income and senior households throughout the city. D. Although the Project is proposing a total number of units (552) that is below the maximum City -prescribed density for the Project site based on its acreage (620), the Developer is able to seek up to three (3) density bonus concessions and a waiver because it is a 100-percent 60A-11 affordable Project. The three (3) requested concessions and the waiver are permitted by State Density Bonus Law. Specifically, Developer is seeking concessions allowed pursuant to Government Code section 65915(d)(1) pertaining to: publicly accessible open space; building setbacks; and, residential parking; as well as a waiver allowed pursuant to Government Code section 65915(e)(1) pertaining to driveway width. E. For the purpose of implementing State Density Bonus Law, City Density Bonus for Affordable Housing, and City Housing Opportunity Ordinance concessions in response to Developer's request for three (3) density bonus concessions and a waiver, Developer has agreed to restrict all Units in the Project, except for five (5) manager's units, to Eligible Households, which includes Very Low Income and Low Income Tenants. F. The Project complies with the affordable housing requirements set forth in the State Density Bonus Law, City Density Bonus for Affordable Housing, and City Housing Opportunity Ordinance. For purposes of this Agreement, the Project shall be the "housing development" as defined in the State Density Bonus Law. G. In light of the purpose of the State Density Bonus Law, City Density Bonus for Affordable Housing, and City Housing Opportunity Ordinance, and the express provisions of Government Code section 65915(n), as well as Santa Ana Municipal Code section 41-1904.1, the City has determined to grant Developer's application for density bonuses and related concessions and incentives. H. This Agreement, and the exhibits attached hereto and incorporated herein by reference, is intended to set forth the terms and conditions for the implementation of the Project's requirement to provide affordable housing units in exchange for receiving the Density Bonus concessions and incentives set forth herein. I. The Developer has paid the City's Density Bonus Setup fee in the amount of $82,084.05. NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein by this reference, and of the mutual covenants contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. DEFINITIONS AND EXHIBITS 1.1 Definitions. In addition to the terms that may be defined elsewhere in this Agreement, the following terms when used in this Agreement shall be defined as follows: 1.1.1 "Adjusted for family size appropriate to the unit" shall have the meaning set forth by the California Tax Credit Allocation Committee, from time to time, in administering the low income housing tax credit programs. 2 60A-12 1.1.2 "Affordable Rent" means the maximum Monthly Rent that may be charged to and paid by an Eligible Household for the Affordable Units, as required by the terms of this Agreement. 1.1.3 "Affordable Rent Schedule" means a rent schedule established as of the date of issuance of an occupancy permit (exclusive of tenant utility payments or security deposits) for the required number/percentage of the total number of units in the Project which are to be rented or available for rent to very low or low income tenants. Said Affordable Rent Schedule shall be established at the time of the issuance of the occupancy permit ("Initial Rent Schedule") and shall be created in accordance with the Orange County, California Primary Metropolitan Statistical Area ("PMSA") as published by the United States Department of Housing and Urban Development ("HUD"), adjusted for family size. 1.1.4 "Affordable Units" means five -hundred and fitiv-two (552) units which shall be comprised of twenty-seven (27) one (1) bedroom Units, two -hundred and thirty-nine (239) two (2) bedroom Units, one -hundred and forty-six (146) three (3) bedroom Units, and one -hundred and forty (140) four (4) bedroom Units, ofwhich five (5) Unrestricted Units (i.e. —manager's unit), with unit sizes as may be determined by the Developer. 1.1.5 "Agreement" means this Density Bonus Housing Agreement. 1.1.6 Reserved 1.1.7 "City" means the City of Santa Ana, California 1.1.8 "City Council" means the City Council of the City of Santa Ana. 1.1.9 "City Attorney" means the City Attorney for the City of Santa Ana. 1.1.10 "City Manager" means the City Manager for the City of Santa Ana. 1.1.11 "City's Planning Commission" means the Planning Commission for the City of Santa Ana. 1.1.12 "Density Bonus Housing Agreement Term" means the period during which this Agreement shall be in full force and effect, as provided for in Section 6.1 below. 1.1.13 Reserved 1.1.14 "Developer" means collectively, Santa Ana Pacific Associates, A California Limited Partnership, a California limited partnership, and Santa Ana Pacific Associates II, A California Limited Partnership, a California limited partnership, and their permitted successors and assigns to all or any part of the Property. 1.1.15 "Effective Date" means the date the City Council of City approves this Agreement and from then on this Agreement shall be in full force and effect. 60A-13 1.1.16 "Eligible Household" means a Household whose income does not exceed the qualifying limit for a "very low income tenant" or "lower income tenant" as defined herein, which means persons and families whose income does not exceed the qualifying limit for very low income or lower income households. 1.1.17 "Household" means all persons residing in a Unit. 1.1.18 "Low Income Tenant" means persons and families whose income does not exceed eighty percent (801/o) area median income for the Orange County, California PMSA, adjusted for household size, as published by the California Tax Credit Allocation Committee. 1.1.19 "Median Income" means the Orange County, California area median income, adjusted for family size appropriate to the unit, as periodically published by the California Tax Credit Allocation Committee. 1.1.20 "Monthly Rent" means the total of monthly payments for (a) use and occupancy of each Affordable Unit and land and facilities associated therewith, (b) any separately charged fees or service charges assessed by Developer which are required of all tenants, other than security deposits, application fees or credit check fees (c) a reasonable allowance for an adequate level of service of utilities not included in (a) or (b) above, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuels, but not including telephone or cable service, and (d) possessory interest, taxes or other fees or charges assessed for use ofthe land and facilities associated therewith by a public or private entity other than Developer. In the event that certain utility charges are paid by the landlord rather than the tenant, no utility a]lowance shall be deducted from the rent for that type of utility charge. 1.1.21 "Project" means that certain residential development as more particularly described in Recital B and Section 2 of this Agreement. 1.1.22 "Property" means that certain real property more particularly described in the legal description in Exhibit A and improvements thereon. 1.1.23 "State Density Bonus Law" means Government Code sections 65915, et seq., as they exist on the Effective Date. 1.1.24 "Unit" means a residential dwelling unit within the Project to be constructed by Developer pursuant to this Agreement. 1.1.25 "Unrestricted Units" means the Units within the Project to he constructed by Developer to a Household without restriction (i.e. — manager's unit). 1.1.26 "Very Low Income Tenant' means persons and families whose income does not exceed fifty (50%) of the area median income for the Orange County, Califomia PMSA, adjusted for household size, as published by the California Tax Credit Allocation Committee. 60A-14 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: 1.2.1 Exhibit A — Legal Description of the Property 1.2.2 ExhibitB— TenantVerification 2. DEVELOPMENT OF THE PROPERTY 2.1 Project. Developer shall develop, operate, and maintain the Property as a five - hundred and fifty-two (552) Unit affordable rental family -oriented mixed -use commercial and residential community. 2.2 Density Bonus, The Project shall have five -hundred and fifty-two (552) Units, to be rented, occupied, operated, and maintained pursuant to the terms and conditions of this Agreement. Developer understands and agrees that Developer is not utilizing a density bonus increase provided by the State Density Bonus Law or a density bonus provided by the City's Housing Opportunity Ordinance. However, Developer is only proposing five -hundred and fifty- two 552 Units, so Developer shall not construct or develop, or otherwise claim a right to construct or develop any additional State and/or City Density Bonus Units on the Property. 2.3 Development Concessions and Waivers. As set forth in the City entitlements, Developer petitioned for and was granted the following concessions and waivers as part of the approval of Site Plan Review No. 2017-09 for the Project: 2.3.1 The residential parking requirements for the Project shall be reduced from two (2) spaces per unit overall to.1.03 spaces per unit. 2.3.2 The publicly accessible open space requirement calculation shall be reduced from 15% of total lot area to less than 2°/u of total lot area. 2.3.3 The building front yard setback requirement shall be amended from a minimum of twenty (20) feet to a minimum of six (6) feet. The building side yard setback requirement shall be amended from a minimum of ten (10) feet to a minimum of six (6) feet. The building rear yard setback requirement shall be amended from a minimum of one hundred (100) feet to a minimum of forty-five (45) feet. 2.3.4 The driveway width requirement shall be increased from a maximum of twenty-four (24) feet to thirty-eight to forty-six (38-16) feet. 2.4 In exercising the rights granted to the developer under AB 744 the parking requirements for the Project shall be reduced in accordance with Government Code Section 65915(p), such that a total of 566 resident and guest parking spaces will be provided in an at -grade parking area beneath the residential levels, as well as 50 parking spaces for the commercial component and 4 spaces for the leasing office and the development's employees. 60A-15 2.5 No Further Concessions or Incentives. Developer acknowledges and agrees that the waivers and incentives set forth in section 2.3 above fully satisfy any duty City may have under the Santa Ana Municipal Code, the Density Bonus law, or any other law or regulation applicable to the Project, to provide any development incentive or to waive any building, zoning, or other requirement. By this Agreement, Developer releases any and all claims Developer may have against City in any way relating to or arising from City's obligation to waive requirements of or provide development incentives pursuant to any state, federal, or local law, rule, or regulation applicable to the Project. 2.6 Unrestricted Units. The Project, for purposes of this Agreement, may have no more than five 5 Unrestricted Units (i.e. — manager's unit) with unit sizes as may be determined by the Developer. Developer may alter the unit distribution of the Unrestricted Units in Developer's discretion, provided that the Project has the minimum number of Affordable Units and the minimum distribution thereof as specified in this Agreement. 2.7 Affordable Units. The Project, for purposes of this Agreement, shall have no less than five -hundred. forty-seven (547) Units designated as Affordable Units pursuant to the terms and conditions ofthis Agreement. The Affordable Units shall be consistent with all City approvals, and shall be located throughout the Project. 2.8 Minimum Development Standards for Affordable Units. The Affordable Units shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as provided for any Unrestricted Units, regardless of whether such Unrestricted Units are in the Project. 2.9 Permits and Processing: Compliance with Laws. Developer at its sole cost and expense shall secure or cause to be secured any and all permits that may be required by City or any other federal, state, or local governmental entity having or claiming jurisdiction over the Property or Project. Upon securing any and all permits, Developer shall carry out and perform the development, operation, and maintenance of the Project in conformity with all applicable federal, state, and local laws and regulations, and all conditions of approval issued by the City Council and City's Planning Commission for the Project. Any changes to the Project shall be reviewed by the City to determine compliance with this Agreement. If any changes to the Project shall materially alter the ability of Developer to comply with any terms of this Agreement in City's sole determination, then City shall have the option to declare this Agreement null and void in its sole discretion. 2.10 Relocation Prior to Develonment of Proiect. If relocation is required prior to the completion of development of the Project, Developer shall have the sole and exclusive responsibility for providing relocation assistance and paying all relocation costs as may be required to comply with applicable federal and state laws and regulations. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all �• •. alleged or actual claims, causes of action, liabilities, and damages from any third party for relocation assistance, benefits and costs prior to the completion of the development of the Project. 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. 2.12 Mechanic's Liens: Indemnification. Developer shall take all actions reasonably necessary to remove any future mechanic's liens or other similar liens (including design professional liens) against the Property or Project, or any part thereof; by reason of work, labor, services, or materials supplied or claimed to have been supplied to Developer or anyone holding the Property or Project, or any part thereof, through or under Developer. Prior to the recording of this Agreement (or memorandum thereof) pursuant to Section 4.1 below, Developer shall provide evidence from the Title Company of any new recordings against the Property or Project. City hereby reserves all rights to post notices of non -responsibility and any other notices as may be appropriate upon a filing of a mechanic's lien. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities; and damages from any third party by. reason of a mechanic's lien or work, labor, services, or materials supplied or claimed to have been supplied to Developer or anyone holding the Property or Project, or any part thereof, through or under Developer. 3. AFFORDABILITY 3.1 Total Affordability Term. Each Affordable Unit shall be restricted to use and occupancy by an Eligible Household for a total period of no less than fifty-five (55) years ("Total Affordability Term"). The Total Affordability Term for an Affordable Unit shall commence on the date that the Affordable Unit receives all required occupancy permits from the City. Byway of explanation of the foregoing two sentences, it is possible that the Total Affordability Period for one Affordable Unit will neither commence on the same date nor terminate on the same date as another Affordable Unit, and it is possible that the Total Affordability Terms for all Affordable Units will commence on different days and terminate on different days. 3.2 Memorializing Commencement of total AffordabilitvTerm. Developer shall keep detailed records of the commencement date of the Total Affordability Term for each Affordable Unit. City shall have the right to review and verify said records to ensure that the commencement date specified by Developer for an Affordable Unit coincides with the date that the initial 60A-17 Affordable Unit received all permits from City required for occupancy of the Unit. In the event that a conflict exists between the date specified by Developer for the commencement of the Total Affordability Term for an Affordable Unit and the date specified by City's issuance of all required permits for occupancy of the Unit, the date specified by City's issuance of all required permits for occupancy of the Unit shall control. 3.3 Levels of Affordability. 3.3.1 Very Low Income Tenants. Developer covenants that no less than fifty-six (56) Affordable Units in the Project shall at all times during the Density Bonus Housing Agreement Term be rented to, or held vacant and available for immediate occupancy by Very Low Income Tenants, at a rent that does not exceed thirty percent (30%) of fifty percent (50°/n) of the area median income, as adjusted for household size, including an allowance for utilities. 3.3.2 Low Income Tenants. Developer covenants that no less than four hundred. ninety-one (491) Affordable Units in the Project shall at all times during the Density Bonus Housing Agreement Term be rented to, or held vacant and available for immediate occupancy by Lower Income Tenants, at a rent that does not exceed thirty percent (30%) of sixty percent (60%) of the area median income, as adjusted for household size, including an allowance for utilities. 3.4 Affordable Rental Schedule. The Affordable Rental Schedule shall be determined by the regulatory agreements entered into between the Developer and the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC) governing the project. 4. OWNERSHIP AND OPERATION OF THE PROJECT BY OWNER 4.1 RecordineofDocuments. No later than issuance of building permits for the Project, Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement. City shall cooperate with Developer in promptly executing in recordable form this Agreement. Upon the date of recording, the terms and conditions of this Agreement shall be binding upon and run with the Property and the Project. It is the express intent and agreement between the Parties that this Agreement shall remain binding and enforceable against the Property, the Project, and the Units to ensure compliance with the State Density Bonus Law, City Density Bonus Law, and the City Housing Opportunity Ordinance, and to ensure the continued supply of Affordable Units in the Project. 4.2 Rental of Units. Upon the completion of construction of the Project and receipt by Developer of all required permits for the occupancy of the Units, Developer shall rent or cause to be rented each Affordable Unit for the Total Affordability Term for such Affordable Unit in accordance with the terms and conditions set forth in this Agreement, which provide among other terms and conditions for the rental of each Affordable Unit at an Affordable Rent to an Eligible Household for the Total Affordability Term. �. 1 4.3 Location of Affordable Units. During the Density Bonus Housing Agreement Term, the Affordable Units shall be disbursed throughout the Project in accordance with the terms and conditions set forth in this Agreement. 4.4 Occupancy Levels. The number of persons permitted to occupy each Affordable Unit shall not exceed the occupancy permitted pursuant to the requirements of the United States Department of Housing and Urban Development. In the event that a household residing in an Affordable Unit exceeds the permitted number of persons, then that household shall be placed on the waiting list for the appropriate -sized unit and be eligible for transfer when that unit becomes available. If the household refuses to transfer to the appropriate -sized unit then the Owner will have grounds to terminate that household's lease. 4.5 Use of the Property. All uses conducted on the Property, including, without limitation, all activities undertaken by the Developer pursuant to this Agreement, shall conform to all applicable provisions of the Santa Ana Municipal Code and other applicable federal, state, and local laws, rules, and regulations. The Project shall at all times during the term of this Agreement be used as an apartment complex and none of the Housing Units in the Project shall at any time be utilized on a transient basis, nor shall the Property or any portion thereof ever be used as a hotel, motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest home, or be converted to condominium ownership. All of the community facilities and any social programs provided to the Project's residents shall be available on an equal, nondiscriminatory basis to residents of all Housing Units at the Project. 4.6 Maintenance. Owner shall, at all times during the term of this Agreement, cause the Property and the Project to be maintained in a decent, safe and sanitary manner, regardless of cause of the disrepair. Owner shall be fully and solely responsible for costs of maintenance, repair, addition and improvements. City, and any of its employees, agents, contractors or designees shall have the right to enter upon the Property at reasonable times and in a reasonable manner to inspect the Project. If at any time Developer fails to maintain the Project or the Property in accordance with this Agreement and such condition is not corrected within five (5) days after written notice from City with respect to debris and waste material, or thirty (30) days after written notice from City with respect to general maintenance, landscaping and building improvements, then City, in addition to whatever remedy it may have at law or at equity, shall have the right to enter upon the applicable portion of the Project or the Property and perform all acts and work necessaryto protect, maintain, and preserve the Project and the Property, and to attach a lien upon the Property, or to assess the Property, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by City and/or costs of such cure, including a reasonable administrative charge, which amount shall be promptly paid by Developer to City upon demand. 4.6.1 Property Maintenance Agreement. Subject to review and applicability by the Planning and Building Agency (the "PBA"), the CDA, the Public Works Agency (the "PWA"), and the City Attorney to ensure that the property and all improvements located thereupon are properly maintained, Developer (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the applicant) shall execute a maintenance agreement with the City of Santa Ana prior to occupancy which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City Attorney. The 9 60A-19 maintenance agreement shall contain covenants, conditions and restrictions relating to the following: (a) Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.); (b) Compliance with ongoing operational conditions, requirement and restrictions as applicable, the proper storage and disposal of trash and debris, and/or restrictions on certain uses; (c) Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable; (d) Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon (including but not limited to controls on the proliferation of trash and debris about the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); (e) If Developer and the owner of the property are different (e.g., if the applicant is a tenant or licensee of the property or any portion thereof), both the applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms; (f) The maintenance agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the maintenance agreement; (g) The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the property. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City; and, 10 60A-20 (h) The execution and recordation of the maintenance agreement shall be a condition precedent to the issuance of the Certification of Occupancy. 4.7 Marketing Program. Each Affordable Unit shall be leased to Eligible Households selected by Developer who meet all of the requirements provided herein. Prior to Certificate of Occupancy, Developer shall prepare and obtain City's approval, which approval shall not be unreasonably withheld, of a marketing program for the leasing of the Housing Units at the Project ("Marketing Program"). The leasing of the Housing Units shall thereafter be marketed in accordance with the Marketing Program as the same may be amended from time to time with City's prior written approval, which approval shall not unreasonably be withheld. Upon request, Developer shall provide City with periodic reports with respect to the leasing ofthe Housing Units. 4.8 Management Plan. Prior to Certificate of Occupancy, Developer shall submit for the reasonable approval of City a "Management Plan" which sets forth in detail Developer's property management duties, a tenant selection process in accordance with this Agreement, a security system and crime prevention program, the procedures for the collection of rent, the procedures for eviction of tenants, the rules and regulations for the Property and manner of enforcement, a standard lease form, an operating budget, the identity and emergency contact information of the professional property management company to be contracted with to provide 24-hour onsite property management services at the Property ("Property Manager"), and other matters relevant to the management of the Property. The Management Plan shall require Developer to adhere to a fair lease and grievance procedure. The management of the Property shall be in compliance with the Management Plan as approved by City. If City determines that the performance of the Property Manager is deficient based upon the standards set forth in the approved Management Plan and in this Agreement, City shall provide notice to Developer of such deficiencies and Developer shall use its best efforts to correct such deficiencies. In the event that such deficiencies have not been cured within thirty (30) days, City shall have the right to require Developer to immediately remove and replace the Property Manager with another property manager or property management company which is reasonably acceptable to the City Manager, which is not related to or affiliated with Developer, and which has not less than five (5) years experience in property management, including significant experience managing housing facilities of the size, quality and scope of the Project. 4.9 Selection of Tenants. 4.9.1 Developer shall be responsible for the selection of tenants for the Housing Units in compliance with lawful and reasonable criteria and the requirements of this Agreement. Developer agrees that all of Affordable Units will be available to families or qualifying residents as defined under California Civil Code section 51.3. 4.9.2 Local preference for Santa Ana residents and workers in tenant selection shall be a requirement of the Project. Subject to applicable laws and regulations governing nondiscrimination and preferences in housing occupancy required by the State of California, the Developer shall give preference in leasing units to households that live and/or work in the City of 11 60A-21 Santa Ana or who have an active Housing Choice Voucher issued by the Housing Authority of the City of Santa Ana or any other Public Housing Authority. 4.9.3 Prior to the rental or lease of an Affordable Unit to a tenant(s), Developer shall require the tenant(s) to execute a written lease and to complete a Tenant Income Verification Form (in substantially the form attached hereto as Exhibit B) certifying that the tenant(s) occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility requirements established for the Affordable Unit. Developer shall verify the income of the tenant(s) as set forth herein. 4.10 Income Verification and Certification. Owner covenants to City that it will at all times abide by all specific compliance standards set forth in the regulatory agreements entered into between the Owner and the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC), including but not limited to such standards as relate to the number of very -low and low income affordable units by number of bedrooms, standards for qualifying household incomes and other qualifying criteria. Owner shall provide City with a certified copy of each of the recorded Regulatory Agreements applicable to the Project. The compliance standards set forth in said Regulatory Agreements are hereby incorporated by reference as fully set forth herein. In the event of a conflict between this Agreement and the Regulatory Agreements: (1) the more stringent requirement shall prevail if such interpretation eliminates the relevant conflict; or (2) the Regulatory Agreements, or any of them, shall prevail. Developer agrees to make a good faith effort to verify that the income and asset statement provided by an applicant in an income certification is accurate by taking at least one of the following steps as a part of the verification process: (1) obtain three months consecutive pay stubs for the most recent pay period, (2) obtain an income tax return for the most recent tax year, (3) obtain an income verification form from the applicant's current employer, (4) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies, or (5) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. 4.11 Monitorine and Recordkeenine. Throughout the Term of this Agreement, Developer shall annually complete and submit to City a Certification of Continuing Program Compliance in the form provided by City. Owner agrees to pay a reasonable fee, as set by City resolution, for the purpose of paying the actual costs associated with the City's obligation to monitor Owner's compliance with the affordability restrictions contained in this Agreement related to the Density Bonus units, not to exceed monitoring costs for up to 133 units. The City shall first start with the review of all reports and monitoring prepared by Owner for the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC) each year. Representatives of City shall be entitled to enter the Property if necessary after review of above documentation, upon at least forty-eight (48) hour notice, to monitor compliance with this Agreement, and shall be entitled to inspect the records of the Project and to conduct an independent audit or inspection of such records at a location within the City that is reasonably acceptable to the City. Developer agrees to cooperate with City in making the Property and the 12 60A-22 records of the Project available for such inspection or audit. Developer agrees to maintain each record of the Project for no less than five (5) years after creation of each such record. Developer shall allow the City to conduct annual inspections of each of the Affordable Units on the Property after the date of construction completion, with reasonable notice. Developer shall cure any defects or deficiencies found by the City while conducting such inspections within ten (10) Business Days of written notice thereof, or such longer period as is reasonable within the sole discretion of the City. 4.12 Application and Financial Preparedness. Developer shall submit for review and approval by the CDA and the PBA, a booklet completed by the Developer at least 12 months prior to the initial leasing of the units. This booklet can be made available at the Property Manager's office or at another location agreed upon by the Owner, the CDA, and the PBA. The purpose of this booklet is to inform interested persons regarding minimum application and eligibility requirements and to assist interested persons with application and financial preparedness and eligibility for residency at the Project at the initial leasing of the units. Developer shall also work with CDA to hold a minimum of two workshops to be coordinated by the Developer at least 12 months prior to the initial leasing of the units. 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. 4.14 Alternative Transportation and Enerev 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 GreenPoint Rater (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. 4.15 Reserved. 4.16 Onsite Property Manager. The Project shall include the provision to have 24-hour on - site Property Management services and personnel. Up-to-date 24-hour contact information for the on -site personnel shall be provided to the following City Agencies on an ongoing basis: (a) Police Department 13 60A-23 (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 4.17 Emergency Evacuation Plan. Developer shall submit and obtain approval of an Emergency Evacuation Plan (the EEP) from City Police and Fire Protection agencies prior to issuance of a Certificate of Occupancy. Up-to-date 24-hour emergency contact information for the on -site personnel shall be provided to the City on an ongoing basis and the approved EEP shall be kept onsite and also be submitted to the following City Agencies: (a) Police Department (b) Fire Department (c) Planning and Building Agency (d) Community Development Agency 4.18 Crime Free Housing. Developer shall work with City Staff to develop a crime free housing policy, procedure, and design plan (the "CFH Plan"). Developer shall submit and obtain approval from the PBA the CFH Plan meeting the requirements of this Subsection 4.18 prior to issuance of the Certificate of Occupancy. The approved CFH Plan shall be implemented and administered by Property Management. 4.19 Onsite Parkins Management Plan. Developer shall provide onsite parking for residents and visitors of the Project and actively monitor the parking demand of the Project site. Developer shall continually monitor and take appropriate measures to manage the parking demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way. Prior to issuance of the Certificate of Occupancy, Developer shall submit and obtain approval from the PBA a Parking Management Plan (the "PMP") meeting the requirements of this Subsection.4.19. The approved PMP shall be adhered to and be enforced by the Project at all times. 4.20 Parking Shuttle and/or Valet Service. (a) Developer must identify which parking lots have agreed to rent out parking spaces for the valet service; (b) Developer must identify specific shuttle stop locations and must obtain approval from the Orange County Transportation Authority (OCTA) to utilize its bus stops/pullouts as part of its shuttle service operations; (c) All residents of driving age must disclose any owned, leased, or rented vehicles to be permitted to park on the project site or any properties as part of the valet or shuttle service; (d) Each tenant must agree to terms prohibiting parking of his or her vehicle on any City -owned property; (e) Every such agreement must contain penalties/consequences for violating the terms of the agreement; (t) Terms shall also be incorporated into the City's housing plan or agreement for the Project; (g) The shuttle shall be operated by the Developer and be at the Developer's expense; 14 60A-24 (h) The Developer and/or management company shall maintain a copy of the shuttle's operating plan, including days, times, and frequency of service, with the City's Planning Division and Public Works Agency; (i) The City can record a lien to collect any unpaid fines or monitoring costs; (j) The City may require the Developer and/or management company to include lease provisions that limit the number of vehicles a tenant may possess during the term of occupancy; and, (k) The Developer and/or management company shall work with the City's Planning Division, Public Works Agency, and City Attorney's Office to document and record the agreement. 4.21 Prior to issuance of building permits for above -ground construction, the Developer shall provide the City of Santa Ana a copy of a recorded easement for reciprocal access (ingress, egress, and fire access) for any and all proposed shared drive aisle(s) between the project site and the adjacent property to the west. 5. [INTENTIONALLY RESERVED] 6. TERM OF THIS AGREEMENT 6.1 Term. The term of this Agreement ('Density Bonus Housing Agreement Term") shall commence on the Effective Date and shall continue until the date that is fifty-five (55) years after the City issues the last certificate of occupancy for the Project. 7. DEFAULT AND TERMINATION: INDEMNIFICATION 7.1 Default. Failure or delay by any Party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of notice from the other Party specifying the default (or such other period specifically provided herein), constitutes a default under this Agreement; provided, however, if such default is ofthe nature requiring more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a total of ninety (90) days). Except as required to protect against further damages, the injured Party may not institute proceedings against the Party in default until the time for cure has expired. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 7.2 Riahts and Remedies Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party. 7.3 Indemnification. In addition to any other indemnity specifically provided in this Agreement, Developer agrees to defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel 15 60A-25 upon City's and Developer's consent) indemnify and hold harmless City and its respective officers, officials, agents, employees, representatives, and volunteers (collectively, "Indemnitees") from and against any loss, liability, claim, or judgment arising from any act or omission of Developer in connection with its obligations under this Agreement, except to the extent caused by the active negligence or willful misconduct of Indemnitees. 8. ASSIGNMENT: COVENANTS RUN WITH THE LAND 8.1 Assignment by Developer. 8.1.1 Prohibited Transfers or Assignments. Except as authorized in Section 8.1.2 below, Developer shall not sell, transfer, or assign the Property or Project in whole or in part, or transfer or assign Developer's rights and obligations in this Agreement, without City's prior written approval, which shall not be unreasonably withheld. Except for Permitted Transfers set forth in Section 8.1.2 below, Developer shall: (i) notify City in writing of the sale, transfer, or assignment of all or any portion of the Property, and (ii) deliver to City an assignment and assumption agreement (or other agreement) in a form approved by City and executed by Developer and its transferee/assignee pursuant to which Developer's transferee/assignee assumes all of Developer's covenants and obligations set forth herein with respect to the Property or the portion thereof so transferred. Any request for transfer or assignment of the Agreement by Developer shall require the payment of fees or a deposit to compensate the City for approximate expenses incurred by Developer to City, as applicable, for the City's review of the request. 8.1.2 Sale of Property/Change of Use: Owner agrees and declares that the Property and the Project shall be held, conveyed, mortgaged, encumbered, leased, rented, used, occupied, operated, sold, and approved subject to all obligations set forth or incorporated in this Agreement, all of which are for the purpose of enhancing and protecting the value and attractiveness of the Property and the Project. All of the obligations set forth or incorporated in this Agreement shall constitute covenants which run with the land and shall be binding on Owner and its successors and assigns, and all parties having or acquiring any right, title or interest in, or to any part of the Property or Project. Owner further understands and agrees that the Density Bonus permit approvals received for this Project have been made on the condition that Owner and all subsequent owners, or other successors and assigns of the Property and/or Project lease and rent the Units in accordance with the terns and conditions stipulated in Sections 4, 5 and 6 of this Agreement for a term of 55 consecutive years commencing upon the date that the Project is first occupied. 8.1.3 Subsequent Assignment. As used in this Agreement, the term "Developer" shall be deemed to include any such transferee or assignee after the date such sale, transfer, or assignment occurs in compliance with this Agreement. 8.1.4 Unpernitted Assignments Void. Any sale, transfer, or assignment made in violation ofthis Agreement shall be null and void, and City shall have the right to pursue any right or remedy at law or in equity to enforce the provisions of the restriction against unpermitted sales, transfers, or assignments. 16 �• •. 8.2 Covenants Run with the Land. The Property shall be held, sold, conveyed, hypothecated, encumbered, used, occupied and improved subject to the covenants, conditions, and restrictions set forth herein. The covenants, conditions, restrictions, reservations, equitable servitudes, liens and charges set forth in this Agreement shall run with the Property and shall be binding upon Developer and all persons having any right, title or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall inure to the benefit of City and its successors and assigns, and may be enforced by City and its successors and assigns. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of City and its successors and assigns, and the parties hereto expressly agree that this Agreement and the covenants herein shall run in favor of City, without regard to whether City is or remains an owner of any land or interest therein to which such covenants relate. However, all such covenants and restrictions shall be deemed to run in favor of all real property owned by City which real property shall be deemed the benefited property of such covenants and this Agreement shall create equitable servitudes and covenants appurtenant to all real property owned by City and running with the Property in accordance with the provisions of Civil Code Section 1468. Furthermore, all of the covenants, conditions, and restrictions contained herein shall also constitute easements in gross running in favor of City. City is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Developer hereby declares its understanding and intent that the burden of the covenants set forth herein touch and concern the land and that the Developer's interest in the Property is rendered less valuable thereby. Developer hereby further declares its understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the citizens of City and by furthering the health, safety, and welfare of the residents of City. 9. MISCELLANEOUS 9.1 Entire Agreement. This Agreement and all of its exhibits and attachments set forth and contain the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 9.2 Amendment. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance approved by the City Council and signed on behalf of each party. Any requested alteration, change or modification of the Agreement by Developer shall require the payment of fees or deposit by Developer to City, as applicable, for the City's review of the request. Each alteration, change, or modification to this Agreement shall be recorded against the Site in the Official Records of Orange County, California. 17 60A-27 9.3 Notices. 9.3.1 Delivery. As used in this Agreement, "notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) two (2) days after deposit in the United States mail in a sealed envelope, first class mail and postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with a known and reliable next -day document delivery service (such as Federal Express), charges prepaid and delivery scheduled next -day to the recipient named below, provided that the sending party receives a confirmation of delivery from the delivery service provider; or (v) the first business day following the date of transmittal of any facsimile, provided confirmation of successful transmittal is retained by the sending Party. All notices shall be addressed as follows: If to City: City of Santa Ana Community Development Agency 20 Civic Center Plaza (M-26) P.O. Box 1988 Santa Ana, California 92702 Attention: Housing Manager With a copy to: Office of the City Attorney City of Santa Ana 20 Civic Center Plaza, 7th Floor (M-29) Santa Ana, California 92702 If to Developer: Santa Ana Pacific Associates, A California Limited Partnership Santa Ana Pacific Associates II, A California Limited Partnership 430 E. State Street, Suite 100 Eagle, Idaho 83616 With a copy to: BCP/First Point 1, LLC BCP/First Point II, LLC c/o Boston Capital Partners One Boston Place, 21It Floor Boston, MA 02108 Attention: Asset Management (First Point Apartments) 9.3.2 Change of Address. Either Party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. 18 9.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder ofthis Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement. 9.5 Interpretation and Governing Law. This Agreement and any dispute hereunder shall be governed and interpreted in accordance with the laws of the State of California without regard to conflict of law principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof. 9.6 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 9.7 Singular and Plural. As used herein, the singular of any word includes the plural, and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include the other as context so dictates. 9.8 Joint and Several Oblieations.Ifatany time during the term ofthis Agreement the Property and/or Project is owned, in whole or in part, by more than one Developer, all obligations of such Developer under this Agreement shall be joint and several, and the default of any such Developer shall be the default of all such Developers. 9.9 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an'element. 9.10 Conimitation of Days. Unless otherwise specified in this Agreement or any Exhibit attached hereto, use of the term "days" shall mean calendar days. For purposes of this Agreement and all Exhibits attached hereto, "business days" shall mean every day of the week except Saturdays, Sundays, official State holidays as recognized in Government Code Section 19853(a) or successor statute, and any days in which Santa Ana City Hall is closed for business. 9.11 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party's right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter. 9.12 Non -Discrimination. In performing its obligations under this Agreement, Developer shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, training, utilization, promotion, termination or other related activities. Developer affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. f IA 60A-29 9.13 Third Party Beneficiaries. No person or entity, other than City and Developer shall have any right of action based upon any provision of this Agreement. 9.14 Porte Maieure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the Party's control (including the Parry's employment force), court actions (such as restraining orders or injunctions), or other causes beyond the Parry's control, including delays by any governmental entity (although the City may not benefit from this provision for a delay that results from City's failure to perform its obligations under this Agreement), or an insurance company of either party. If any such events shall occur, the term of this Agreement and the time for performance by either Party of any of its obligations hereunder may be extended by the written agreement of the Parties for the period of time that such events prevented such performance. 9.15 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party. 9.16 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all permitted successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each Party and each successor in interest approved pursuant to this Agreement during ownership of the Property or any portion thereof. 9.17 Counterparts. This Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the Parties had executed the same instrument. 9.18 Jurisdiction and Venue. Any action at law or in equity under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court. 9.19 Project as a Private [Indertaking. It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property and the Developer of such property. 20 60A-30 9.20 Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either Party at any time, the other Party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. City hereby authorizes City Manager to take such other actions and negotiate and execute any additional agreements as may be necessary or proper to fulfill the City's obligations under this Agreement. The City Manager may delegate her or his powers and duties under this Agreement to an authorized management level employee of the City. 9.21 Estoppel Certificate. Within ten (10) business days following a written request by any of the Parties, the other Party shall execute and deliver to the requesting Party a statement certifying that (i) either this Agreement is unmodified and in full force and effect or there have been specified (date and nature) modifications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without modification, except as may be represented by the requesting Party, and that there are no uncured defaults in the performance of the requesting Party, except as may be represented by the requesting Party. 9.22 No Subordination. City's approval of the necessary land use entitlements that authorize Developer to develop, operate, and maintain the Project was based upon Developer's obligation to provide the Affordable Units pursuant to the State Density Bonus Law, City Density Bonus Law, City Housing Opportunity Ordinance, and the terms and conditions ofthis Agreement. For the Term of the Density Bonus Housing Agreement, this Agreement shall have priority over any and all mortgages, deeds of trust, and other similar forms of secured financing recorded against the Property or any portion thereof. Developer expressly understands and acknowledges that state law requires preservation of affordability covenants in connection with the approval ofthis density bonus project. 9.23 Attornevs' Fees and Costs. If either Party to this Agreement commences an action against the other Party to this Agreement arising out of or in connection with this Agreement, the prevailing Party shall be entitled to recover reasonable attorneys' fees, expert witness fees, costs of investigation, and costs of suit from the losing Party. 9.24 Authority to Execute. The person or persons executing this Agreement on behalf of each Party warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind the Party to the performance of its obligations hereunder. (Signatures on following page) 21 60A-31 IN WITNESS WHEREOF, the parties hereto have caused this Density Bonus Housing Agreement to be executed on the date set forth at the beginning of this Agreement. ATTEST: Norma Mitre Acting Clerk of the Council APPROVED AS TO FORM Sonia R. Carvalho City Attorney By: Wyan WHodge Assistant City Attorney RECOMNIIENDED FOR APPROVAL: Steven A. Mendoza Executive Director Community Development Agency CITY OF SANTA ANA Kristine CkyManager SANTA ANA PACIFIC ASSOCIATES, A CALIFORNIA LIMITED PARTNERSHIP //'-/Z� Ca 99b Roope TPC Holdings VI, LLC General Partner SANTA ANA PACIFIC ASSOCIATES II, A CALIFORNIA LIMITED PARTNERSHIP 161-� Ca b Roope T Holdings VI, LLC General Partner 22 60A-32 A notary public or other officer completing this certificate verifies only the Identity of the Individual who signed the document to which this certificate Is attached, and not the truthfulness, accuracy, or validity of that document. State of Idaho County of Ada On March 26, 2019 before me, Peter Van Dome, Notary Public, personally appeared Caleb R000e, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the Instrument. I certify under PENALTY OF PERJURY under the laws of the State of Idaho that the foregoing paragraph is true and correct. WITNESS my harA and offic Signature lw (Seal) =11YATE RNE 32357 BLIC AHOES 00110112023 60A-33 A notary public or other officer completing this certificate verifies only the identity of the Individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document State of Idaho County of Ada On March 26, 2019 before me, Peter Van Dome, Notary Public, personally appeared Caleb R000e, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the Instrument. I certify under PENALTY OF PERJURY under the laws of the State of Idaho that the foregoing paragraph is true and correct. WITNESS my Nrld an o ial seal. Signature (Seal) 611 ------------- PETER VAN DORNE COMMISSION #32S57 NOTARY PUBLIC STATE OF IDAHO MY COMMISSION EXPIRES o8r01/2029 60A-34 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY 23 60A-35 Exhibit A Legal Description All that real property situated in the City of Santa Ana, County of Orange, State of California and more particularly described as follows: PARCELI: THAT CERTAIN PARCEL OF LAND, LOCATED AT 16812 EAST FIRST STREET, SANTA ANA, CALIFORNIA, WHICH PROPERTY IS MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF LOT "D" OF THE STAFFORD AND TUSTIN TRACT, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 2, PAGES 618 THROUGH 619, OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, THENCE WEST ALONG THE SOUTH SIDE OF FIRST STREET, 417.75 FEET OF A POINT; THENCE SOUTH 733.36 FEET TO A POINT; THENCE EAST 417.75 FEET TO THE EAST LINE OF SAID LOT "D"; AND THENCE NORTH 733.36 FEET TO THE POINT OF BEGINNING. EXCEPT THEREFROM THE NORTHERN NINETEEN (19.00) FEET, AS CONVEYED TO THE CITY OF SANTA ANA, A MUNICIPAL CORPORATION, IN A DOCUMENT RECORDED DECEMBER 22, 1965 AS INSTRUMENT NO. 16905, IN BOOK 7781, PAGE 486 OFFICIAL RECORDS. NOTE: SAID LAND IS ALSO SHOWN ON A RECORD OF SURVEY, FILED ON JULY 13, 1964 IN BOOK 74, PAGE 3 OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. PARCEL 2: A DRAINAGE EASEMENT FOR DISCHARGING WATER FROM THE EAST 417.75 FEET OF THE NORTH 733.36 FEET OF LOT "D" OF THE STAFFORD AND TUSTIN TRACT AS PER MAP THEREOF RECORDED IN BOOK 2, PAGES 618 AND 619 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, BY MEANS OF UNDERGROUND PIPELINES, WITH THE RIGHT TO LAY, PLACE, USE, MAINTAIN, ALTER, ADD TO, REPAIR, REPLACE AND/OR REMOVE SAID PIPELINES, ALONG THE FOLLOWING DESCRIBED REAL PROPERTY: PARCEL (A): THE SOUTH FIVE (5.00) FEET OF THAT CERTAIN REAL PROPERTY IN THE RANCHO SANTIAGO DE SANTA ANA, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS: COMMENCING AT THE NORTHWEST CORNER OF LOT "D" OF THE STAFFORD AND TUSTIN TRACT AS PER MAP RECORDED IN BOOK 2, PAGE 618 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA; THENCE EAST ON THE NORTH LINE OF SAID LOT "D" 225.75 FEET TO A POINT, A STONE A-1 OVER A BRICK BEING SET IN THE GROUND 3 INCHES EAST OF SAID POINT; THENCE SOUTH 733.36 FEET TO A POINT, A STONE SET OVER A BRICK BEING SET IN THE GROUND 3 INCHES WEST OF SAID POINT; THENCE WEST 225.75 FEET TO THE WEST LINE OF SAID LOT "D"; THENCE NORTH 733.36 FEET TO THE POINT OF BEGINNING. PARCEL (B): THE WEST SIX (6.00) FEET OF THAT CERTAIN REAL PROPERTY IN THE RANCHO SANTIAGO DE SANTA ANA, IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA., DESCRIBED AS: A PORTION OF THE SOUTH HALF OF LOT "D" OF THE STAFFORD AND TUSTIN TRACT, AS SHOWN ON A MAP RECORDED IN BOOK 2, PAGES 618 AND 619, MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE NORTH LINE OF THE COUNTY ROAD KNOWN AS MAIN STREET, SAID POINT BEING ALSO THE SOUTHEAST CORNER OF SAID LOT "D"; THENCE NORTH ALONG THE EASTERLY LINE OF SAID LOT "D", 501.13 FEET; THENCE WEST 9.75 CHAINS TO THE WEST LINE OF SAID LOT "D'; THENCE SOUTH 501.5 FEET TO THE NORTH LINE OF MAIN STREET; THENCE EAST 9.75 CHAINS TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION OF SAID LAND DESCRIBED IN A DOCUMENT TO LEROY G. CONNELLY AND WIFE, RECORDED DECEMBER 3, 1954, IN BOOK 2887, PAGE 120, OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM THAT PORTION OF SAID LAND DESCRIBED IN A DOCUMENT TO THE STATE OF CALIFORNIA, RECORDED NOVEMBER 17, 1955, IN BOOK 3285, PAGE 542, OFFICIAL RECORDS. APN: 402-191-01, 402-191-02, 402-191-04 A-2 60A-37 EXHIBIT B TENANT VERIFICATION 24 EXHIBIT B INCOME COMPUTATION AND CERTIFICATION NOTE TO APARTMENT OWNER This form is designed to assist you in computing Annual Income in accordance with the method set forth in the Department of Housing and Urban Project ("HUD") Regulations (24 CFR 813). You should make certain that this form is ate all times up to date with the HUD Regulations. Re: Santa Ana, California I/We, the undersigned state that I/we have read and answered fully, frankly and personally each of the following questions for all persons who are to occupy the unit being applied for in the above apartment project. Listed below are the names of all persons who intend to reside in the unit 1. 2. 3. 4. 5. Name of Members Relationship of the to Head of Social Security Place of Household Household Age Number Employment _ HEAD SPOUSE Income Computation 6. The total anticipated income, calculated in accordance with the provisions of this Certification, of all persons over the age of 18 years listed above for the 12-month period beginning the date that I/we plan to move into a unit is $ Included in the total anticipated income listed above are: (a) all wages and salaries, overtime pay, commissions, fees, tips and bonuses and other compensation for personal services, before payroll deductions; (b) the net income from the operation of a business or profession or from the rental of real or personal property (without deducting expenditures for business expansion or amortization of capital indebtedness or any allowance for depredation of capital assets), (c) interest and dividends (including income from assets excluded below); (d) the full amount of periodic payments received from social security, annuities, insurance policies, retirement funds, pensions, disability or death benefits and other similar types of periodic receipts, including any lump sum payment for the delayed start of a periodic payment; B-1 60A-39 (e) payments in lieu of earnings, such as unemployment and disability compensation, workmen's compensation and severance pay; (f) the maximum amount of public assistance available to the above persons other than the amount of any assistance specifically designated for shelter and utilities; (g) periodic and determinable allowances, such as alimony and child support payments and regular contributions and gifts received from persons not residing in the dwelling; (h) all regular pay, special pay and allowances of a member of the Armed Forces (whether or not living in the dwelling) who is the head of the household or spouse; and (i) any earned income tax credit to the extent that it exceeds income tax liability. Excluded from such anticipated income are: (a) casual, sporadic or irregular gifts; (b) amounts which are specifically for or in reimbursement of medical expenses; (c) Iump sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and workmeds compensation), capital gains and settlement for personal or property losses; (d) amounts of educational scholarships paid directly to the student or the educational institution, and amounts paid by the government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships or payments to veterans not used for the above purposes are to be included in income; (e) special pay to a household member who is away from home and exposed to hostile fire; (f) relocation payments under Title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970; (g) foster child care payments; (h) the value of coupon allotments for the purchase of food pursuant to the Food Stamp Act of 1977; (i) payments to volunteers under the Domestic Volunteer Service Act of 1973; 0) payments received under the Alaska Native Claims Settlement Act; (k) income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes; (I) payments or allowances made under the Department of Health and Human Services Low - Income Home Energy Assistance Program; RIN (m) payments received from the Job Training Partnership Act, (n) income derived from the disposition of funds of the Grand River Band of Ottawa Indians; (o) the first $2,000.00 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the Court of Claims; and (p) at the discretion of Housing Authority of the City of Santa Ana all other income exclusions recognized by the HUD Section 8 Certificate and Voucher Programs. 7. Do the persons whose income or contributions are included in item 6 above: (a) have savings, stocks, bonds, equity in real property or other form of capital investment (excluding the values of necessary items of personal property such as furniture and automobiles and interests in Indian trust land)? No Yes (b) have they disposed of any assets (other than at a foreclosure or Credit Bankruptcy sale) during the last two years at less than fair market value? No Yes (c) If the answer to (a) or (b) above is yes, does the combined total value of all such assets owned or disposed of by all such persons total more than $5,0007 No Yes (d) If the answer. to (c) above is yes,. state: (1) the amount of income expected to be derived from such assets in the 12-month period beginning on the date of initial occupancy in the unit that you propose to rent (2) the amount of such income, if any, that was included in item 6 above: 8. (a) Are all of the individuals who propose to reside in the unit full-time students*? No _ Yes *A full-time student is an individual enrolled as a full-time student during each of 5 calendar months during the calendar year in which occupancy of the unit begins at an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance and is not an individual pursuing a full-time course of institutional or farm training under the supervision of an accredited agent of such an educational organization or of a state or political subdivision thereof. B-3 60A-41 (b) If the answer to 8(a) is yes, is at least 1 of the proposed occupants of the unit a husband and wife entitled to file a joint federal income tax return? No Yes 9. Neither myself nor any other occupant of the unit I/we propose to rent is the owner of the rental housing project in which the unit is located (hereinafter the "Owner"), has any family relationship to the Owner; or owns directly or indirectly any interest in the Owner. For purposes of this paragraph, indirect ownership by an individual shall mean ownership by a family member, ownership by a corporation, partnership, estate or trust in proportion to the ownership or beneficial interest in such corporation, partnership, estate or trustee held by the individual or a family member; and ownership, direct or indirect by a partner of the individual. 10. This certificate is made with the knowledge that it will be relied upon by the Borrower to determine maximum income for eligibility to occupy the unit, and I/we declare that all information set forth herein is true, correct and complete and based upon information I/we deem reliable and that the statement of total anticipated income contained in paragraph 6 is reasonable and based upon such investigation as the undersigned deemed necessary. 11. I/we will assist the Owner in obtaining any information or documents required to verify the statements made herein, including either an income verification from my/our present employer(s) or copies of federal tax returns for the immediately preceding calendar year. 12. I/we acknowledge that I/we have been advised that the making of any misrepresentation or misstatement in this declaration will constitute a material breach of my/our agreement with the Owner to lease the unit and will entitle the Owner to prevent or terminate my/our occupancy of the unit by institution of an action for ejection or other appropriate proceedings. I/we declare under penalty of perjury that the foregoing is true and correct Executed this day of in the City of . California. Applicant Applicant [Signature of all persons over the age of 18 years listed in number 2 above required] B- 4 60A-42 FOR COMPLETION BY APARTMENT OWNER ONLY: 1. calculation of eligible income: a. Enter amount entered for entire household in 6 above: $ b. (1) If answer to 7(c) above is yes, enter the total amount entered in 7(d)(1), subtract from that figure the amount entered in 7(d)(2) and enter the remaining balance ($ ); (2) Multiply the amount entered in 7(c) times the current passbook savings rate to determine what the total annual earnings on the amount in 7(c) would be if invested in passbook savings ($ ), subtract from that figure the amount entered in 7(d)(2) and enter the remaining balance (3) Enter at right the greater of the amount calculated under (1) or (2) above: $ C. TOTAL ELIGIBLE INCOME Line 1.a plus line l.b(3)): $ 2. The amount entered in 1.c: Qualifies the applicant(s) as a Low Income Tenant(s). Does not qualify the applicant(s) as a Low Income Tenant(s). 3. Number of apartment unit assigned: _ Bedroom Size: _ Rent $ 4. This apartment unit [was/was not] last occupied for a period of 31 consecutive days by persons whose aggregate anticipated annual income as certified in the above manner upon their initial occupancy of the apartment unit qualified them as Low Income Tenants. 5. Method used to verify applicant(s) income: Employer income verification. Copies of tax returns. Other ( ) Manager RM INCOME VERIFICATION (for employed persons) The undersigned employee has applied for a rental unit located in a project financed under the Housing Authority of the City of Santa Ana Multifamily Housing Revenue Bond Program for persons of low income. Every income statement of a prospective tenant must be stringently verified. Please indicate below the employee's current annual income from wages, overtime, bonuses, commissions or any other form of compensation received on a regular basis. Annual wages Commissions Total current income Overtime Bonuses I hereby certify that the statements above are true and complete to the best of my knowledge. Signature Date Title I hereby grant you permission to disclose my income to in order that they may determine my income eligibility for rental of an apartment located in their project which has been financed under the Housing Authority of the City of Santa Ana Multifamily Revenue Bonds. Signature Please sent to: U" Date INCOME VERIFICATION (for self-employed persons) I hereby attachd copies of my individual federal and state income tax returns for the immediately preceding calendar year and certify that the information shown in such income tax returns is true and complete to the best of my knowledge. Signature Date EXHIBIT 2 REQUEST FOR Planning Commission Action PLANNING MEETING DATE: JUNE 4, 2018 TITLE: PUBLIC HEARING — SITE PLAN REVIEW NO.2017-09 AND DENSITY BONUS AGREEMENT APPLICATION NO. 2017-02 TO ALLOW CONSTRUCTION OF AN AFFORDABLE RENTAL RESIDENTIAL COMMUNITY WITHIN THE METRO EAST MIXED USE OVERLAY DISTRICT AT 2110, 2114, AND 2020 EAST FIRST STREET, AMG & ASSOCIATES, APPLICANTS {STRATEGIC PLAN NOS. 3, 2; 5,31 Prepared by Ali Pezeshkpour Executive Director RECOMMENDED ACTION PLANNING COMMISSION SECRETARY APPROVED ❑ As Recommended ❑ As Amended ❑ Set Public Hearing For DENIED ❑ Applicant's Request ❑ Staff Recommendation CONTINUED TO / ,4 � Kanagdr 1. Adopt a resolution approving Site Plan Review No. 2017-09 as conditioned. 2. Adopt a resolution approving Density Bonus Agreement Application No. 2017-02 as conditioned. Executive Summary Gene Broussard, representing Affordable Housing Land Consultants, Inc. ("AMG & Associates"), is requesting approval of a site plan review (SPR) and a density bonus agreement (DBA) to allow the construction of an affordable 552-unit rental family -oriented mixed -use commercial and residential community known as First Point. As proposed, the project requires approval of several waivers from the Metro East Mixed Use (MEMU) overlay district's development standards and/or development concessions through the density bonus agreement pursuant to California Government Code sections 65915 through 65918 and Santa Ana Municipal Code (SAMC) Section 41-1600. The project also includes construction of a portion of the project's required fire lane on an adjacent, developed property located at 2020 East First Street. Staff is recommending approval of the applicant's request due to the projects satisfaction of meeting the intent of the MEMU overlay district to promote a pedestrian -oriented environment with a mix of land uses and because the project will provide additional affordable rental housing stock to an underserved segment of the region's population. Table 1: Project and Location Information Item Information ' Project Address 12110, 2114, and 2020 East First Street Nearest Intersection First Street and Golden Circle Drive General Plan Designation District Center (DC) 60A-47 EXHIBIT 2 SPR No. 2017-09/13BA No. 2017-02 May 21, 2018 Page 2 Item Information Zoning Designation General Commercial (C-2) with the Metro East Mixed Use (MEMU) overlay district OZ-1 , Active Urban sub -district Surrounding Land Uses Commercial North Commercial East Educational South Commercial West Site Size 6.89 acres combined Existing Site Development The site contains two commercial buildings Use Permissions Mixed -use projects permitted by the OZ-1 designation; deviations/concessions will address proposed deficiencies Zoning Code Sections Affected Uses OZ-1, Section No. 4 Developmant Standards i 5Z-1, Section Nos. 4 through 7 Project Description The project includes demolition of two commercial buildings and construction of an affordable rental family -oriented mixed -use community with 10,000 square feet of leasable commercial space. The project will contain two structures consisting of a ground -level parking area and five levels of residential above. A total of 552 affordable rental units will be provided on the project site. A total of 566 resident and guest parking spaces will be provided in an at -grade parking area beneath the residential levels, as well as 50 parking spaces for the commercial component and 4 spaces for the leasing office and the development's employees. The project will include one -bedroom units (27), two -bedroom units (239), three -bedroom units (146), and four -bedroom units (140) ranging in size from 610 to 1,266 square feet. All units will contain full kitchens, bedrooms, bathrooms, in -unit storage, and open/common (living) areas. Open space will be provided through a publically-accessible plaza fronting First Street, eight private courtyards, and amenity areas. The public plaza with open seating will front First Street and will also contain seating, landscaping, and hardscape areas suitable for programming with temporary kiosks or events. The project's commercial area and leasing office will also front First Street, enhancing the development's street presence. Eight courtyards with distinct themes and amenities for children and adults will be located throughout the interior of the site. Interior common rooms such as recreation areas, fitness centers, and laundry rooms will provide additional amenities to residents and visitors. A common open space 'view room" on the upper levels will face north toward First Street with views toward the Xerox Tower and the recently - completed Nineteen01 mixed -use development. The project will feature a contemporary architectural style common of many multiple -family or mixed -use residential communities under construction in Santa Ana and the region. Ceramic tile, fiber cement board and siding, smooth stucco finishes, and metal railings will contribute to this theme. These solid materials will ensure that the project ages well for the duration of the building's lifetime. Although not a part of the current entitlement, the applicant intends to submit a tentative parcel map application at a future date to subdivide the project site into two lots for financing purposes in order to facilitate construction of both buildings. The applicant is currently preparing the EXHIBIT 2 SPR No. 2017-09/DBA No. 2017-02 May 21, 2018 Page 3 required tentative parcel map, which will clarify if the proposed subdivision will be for fee -simple lots or for condominium purposes. The tentative parcel map application will require review and action by the City's Zoning Administrator. Table 2: Conformance to Development Standards Standard Re uired'b 'the MEMU Provided Stories Minimum 3, no maximum 6 Minimum Site Area 1 acre 6.89 acres Permitted Frontage Forecourt, shopfront, gallery, or Shopfront, with plaza on First Street arcade as ermitted b MEMU Publicly Accessible Open Space 15 percent of total lot area Less than 2 percent — Requires Concession (1 of 3), Cal. Gov't Code Sec. 65915 d 1 Private/Common Open Space 100 square feet per unit 104 square feet per unit Building Setbacks 0-20 feet (front), 0-10 feet (side), 100 6 (front), 640 (side), 45 (rear) — feet (rear) Requires Concession (2 of 3), Cal. Gov't Code Sec. 65915 1 Residential Parking 2 spaces per unit overall — every unit 1.03 spaces per unit — Requires must be allocated at least 1 space Concession (3 of 3), Cal. Gov't Code Sec. 65915 d 1 Courtyard height-to-wtdth ratios 2 to 1 (enclosed on four sides), 3 to Complies; various ratios in excess of 1 (open on one or more sides 2 to 1 and 3 to 1 provided Driveway width 24 feet maximum 38-46 feet — Requires Waiver, Cal. Gov't Code Sec. 65915 e 1 Building Massing A variety of massing, volume, and Complies; the building features a step -backs are required to increase step -back along First Street and building articulation breaks in volume to reduce massing Table 3: Density Bonus Calculation Densi buBonus' d , , ;".' :Allowed for Rro ect; ,.' Provided! , :: `'i Base Density 620 units (6.89 acres x 90 units/acre 552 units base density used as a standard for developments in areas designated DC by the General Plan Land Use element 35-Percent State Density Bonus +217 units 620 x 0.35 0 35-Percent Bonus Provided by the +217 units (620 x 0.35) 0 Housing Opportunity Ordinance Total Units 1054 units maximum 552 units proposed Although the project is proposing a total number of units (552) that is below the maximum City - prescribed density for the project site based on its acreage, the developer is able to seek up to three density bonus concessions and a waiver because it is a 100-percent affordable project. The City's Housing Opportunity Ordinance (HOO) allows developers to request up to two concessions to facilitate construction of affordable housing. However, none of the concessions listed in the HOO are being requested by the applicant. Instead, the three requested concessions and the waiver are permitted by Section 65915 et al. of the California Government Code (Density Bonuses and Other Incentives). Pursuant to California Government Code sections 65915 (d)(1) and 65915 (e)(1), a local jurisdiction is limited in its ability to deny the requested concessions and waiver and is Z I • EXHIBIT 2 SPR No. 2017-09/DBA No. 2017-02 May 21, 2018 Page 4 preempted from denying the Density Bonus Agreement application. Although the City has analyzed the project and has identified several areas of concern, the conditions of approval proposed for the project are intended to address any of the project's potential impacts. Background The Metro East Mixed Use overlay district was adopted in 2007 as a result of interest in developing mixed -use residential and commercial projects in its project area. The regulating plan, which establishes land uses and development standards, allows a variety of housing and commercial projects, including mixed -use residential communities, live/work units, hotels, and offices. Since its adoption, one mixed -use project at 1901 East First Street has been constructed and is occupied. Another affordable rental residential project by the same developer at 2222 East First Street was entitled in September 2017, and a market -rate mixed -use development at 200 North Cabrillo Park Drive is currently entitled. The California Density Bonus law allows developers proposing five or more residential units to seek increases in base density for providing on -site housing units in exchange for providing affordable units on site. To help make constructing on -site affordable units feasible, the law allows developers to seek up to three incentives/concessions and an unlimited number of waivers, which are essentially variances from development standards that would help the project be built without significant burden and without detriment to public health. The first version of the Density Bonus Law was adopted in 1979 and has since been amended at various times. Recent revisions allow affordable housing developers to request incentives/concessions and/or waivers for 100-percent affordable developments, even if they do not require a numerical density bonus. Moreover, in early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to 'justify' the density bonus and requested incentives/waivers and places the onus on local jurisdictions to prove that the incentives/concessions or waivers are not financially warranted. Analysis of the Issues Section 8 of the MEMU regulating plan, Implementation, requires the Planning Commission to review an application for development subject to the provisions of the overlay district. Upon review of the required Site Plan Review (SPR) application, the Planning Commission may take the following actions: approve, approve with conditions, or deny the SPR. The City's Development Review Committee has reviewed the project and finds that it is incompliance with the majority of development standards contained within the MEMU regulating plan, with the exception of the four development standard deviations requested by the applicant indicated in this report. In addition, Section 41-1607 requires an application for a density bonus agreement containing "deviations" (incentives/concessions and/or waivers) to be approved by the Planning Commission. The following subsections analyze the applicant's request for both the Site Plan Review and the Density Bonus Agreement applications. Table 4: Analysis of the Requested Incentives/Concessions (3) and Waiver (1) Standard I Analysis 60A-50 EXHIBIT 2 SPR No. 2017-09/DBA No. 2017-02 May 21, 2018 Page 5 Standard Analysis Publicly Accessible The MEMU regulating plan requires that publicly -accessible open space be provided Open Space along main street -facing fagades. Because the project has frontage on only one street, (Incentive/Concession) meeting this requirement would result in the building being pushed back significantly from First Street and would render almost the first 1/4 of the site's depth unusable for building area, resulting in the developer having to construct a parking structure or subterranean parking, significantly increasing building costs. Moreover, in order to maintain the current proposed unit count, the developer would be required to construct additional levels, resulting in a different type of construction (steel-frame/Type I versus woodfrype III), further increasing development costs. If the publically accessible open space standard were applied as written, the result would be a significant loss of units and parking area. Pushing the building back would also reduce the contribution to creating a more urban, walkable environment. The applicant intends to compensate for this reduction by providing a greater average square footage of private/common open sace per unit on the project site. Building Setbacks For a project of this size and construction type, OCFA requires 360-degree circulation (Incentive/Concession) on the project site with minimum 20-foot fire lanes. The addition of landscaping and walkways around the project perimeter results in the project not being able to meet the maximum 10-foot side yard requirement. Further, for a project of this height, the MEMU requires a 100-foot rear yard setback. In order to maintain the current proposed unit count, the developer would be required to construct additional levels, resulting in a different type of construction (steel -frame versus wood), further increasing development costs. Implementing this standard as written would result in the building being set back an additional 55 feet from the rear lot line, resulting in a significant loss of units and parking area. Onsite parking Constructing 2.0 parking spaces per residential unit on the project site would require (Incentive/Concession) the developer to construct an additional level of parking either above- or below -grade, resulting in increased construction costs and/or a loss of an entire level of residential units. Driveway width (Waiver) If the project were designed with narrower driveways, the driveways would not conform to minimum standards established for fire ingress/egress by OCFA and for trash truck ingress/egress established by the Public Works Agency and Waste Management, the current waste collector contracted by the City. As a result, a waiver from the maximum driveway width is required. When analyzed cumulatively, the three requested concessions could be avoided if the project were constructed using a different site plan and building type. If the project were designed with a multi- level parking and/or subterranean parking structure, or If the applicant used different building materials (non-combustible, Type 1) to construct a taller project, additional area on site would become available to provide open space and parking, and to meet the required rear yard setback. However, these changes would increase development costs, resulting in the affordable housing project becoming financially infeasible due to the significantly -increased financial implications of using Type I construction. Additional Issues The City thoroughly reviewed the applicant's request to construct the proposed project and identified several additional items for consideration. These items are listed below and analyzed in the following paragraphs. 1. Large Family Housing and Unit Bedroom Mix 60A-51 EXHIBIT 2 SPR No. 2017-09/DBA No. 2017-02 May 21, 2018 Page 6 Nearly half (48 percent) of the project's units will contain one or two bedrooms. The original project proposed at the site contained both senior and family -oriented housing in nearly 700 residential units. Following feedback from elected officials and City staff on housing needs identified in the 2014 Housing Element, the applicant revised the project to completely eliminate the senior component; the unit count was reduced to the present 552. In doing so, the applicant increased the number of multi -bedroom units. In 2010, the US Census reported that the average household size in Santa Ana was 4.37 and that the average family size was 4.54. Santa Ana's average household and family sizes are above Orange County's, which has an average household size of 3.99. As a result, the lower bedroom count of the project may serve a different segment of the population not identified in any local demographic (household or family size) figures or in the 2014 Housing Element. This issue may be exacerbated by the community's overall lower -than -average unit square footage of 1,061 square feet, which is below the 1,200-square foot unit average stated as a guideline in the MEMU regulating plan. 2. Housing Opportunity Ordinance (HOO) and the State's Density Bonus Law Under the State's Density Bonus Law, developers of affordable family -oriented housing projects may request a numerical density bonus up to 35 percent from base density. The City's Housing Opportunity Ordinance (HOO), last updated in 2015, augments the density bonus concept by allowing a developer to seek an additional 35 percent density bonus calculated from base density (SAMC Sec. 41-1904.1). Despite this opportunity for a "double density bonus," staffs interpretation of the intent of both the State law and local ordinance support the concept of mixed -income housing development, with affordable housing units forming a component of such developments. Pursuant to SAMC Sec. 41-1600, the purpose of the City's ordinance is "to provide increased residential densities to developers who guarantee that a portion of their residential development will be available to low income, very low-income, or senior (also known as "qualified") households." Moreover, 'The regulations are intended to ... provide a balance of housing opportunities for low income, very low-income, and senior households throughout the city." Mixed -income housing developments provide a "portion" of affordable units in an integrated, mixed - income development unless it is financially or physically infeasible to do so, in which case a developer may pay an in -lieu fee to facilitate construction of affordable housing developments offsite. The City's Housing Opportunity Ordinance's furthers this goal, stating that is purpose is to "encourage the development of housing that is affordable to a range of households with varying income levels" (SAMC Sec. 41-1900). It is also important to note the language in SAMC Sec. 41-1600 that encourages development of affordable housing for "households throughout the City" (geographically dispersed). The developer has recently entitled an all -affordable senior project ("Villa Court") on a project site approximately 320 feet to the east at 2222 East First Street that will contain 418 units. If approved, the proposed project would add another 552 all -affordable housing units in nearby, for a combined 970 affordable housing units in close proximity to one another. 60A-52 EXHIBIT 2 SPR No. 2017-09/DBA No. 2017-02 May21, 2018 Page 7 The City is required to revisit the HOO before December 31, 2018 to evaluate any amendments to the ordinance. On May 14, 2018, the Economic Development, Infrastructure, Budget and Technology (EDIBT) Council Committee met. Staff presented a verbal update on the HOO, and the Committee discussed HOO-related topics for discussion, including geographic dispersal of units and incorporating affordable units into mixed -income projects. The HOO is silent on policies regarding all -affordable housing projects or geographic dispersing of affordable housing. Accordingly, these areas of discussions were not applied to analysis of the project. 3. Project Open Space Although stated as a guideline in the regulating plan, the project's unit sizes are generally well below the 1,200-square-foot average unit size objective. Under such circumstances, a project would typically provide greater onsite open space per unit, either as private open space or as common open space for the residents of the community. The applicant has considered this guideline and proposes to compensate through a greater average private/common open space area of 104 square feet per unit instead of the 100-square-foot minimum, which results in 2,200 additional square feet of open space. However, given the large nature of the project and the reduction in private, common, and publically accessible open space, the extra four (4) square feet per unit may be insufficient to compensate for the overall open space reduction. In addition, only 12 units of the 552 total will have balconies or terraces. 4. Development Intensity and Requested Deviations The project is proposing a project density of 80 units per acre, which is below the typical 90 units per acre assumed by the District Center General Plan land use designation that is applied to the project site. However, in reviewing the proposed project, staff drew comparisons against the recently -entitled Madison mixed -use residential and commercial community at 200 North Cabrillo Park Drive, also in the MEMU area. The Madison was entitled with an overall density of 93 units per acre (260 units on 2.79 acres). This project was able to meet all MEMU regulating plan's development standards, including open space and building setbacks, with the exception of required onsite parking and maximum driveway widths, both of which the City Council approved through variance applications. Staff analysis indicates that the Madison was able to meet all MEMU standards due to the projects site plan, which features a multi -level parking structure at the heart of the development. The location and multi -level nature of the parking structure frees additional space on the project site that enables the development to meet MEMU standards, including all forms of open space (publically accessible, common, and private/per unit). 5. Reduction in Required Parking and Proposed Shuttle and Parking Valet Service Staff has analyzed the proposed project and finds that there is potential that the project and neighborhood may be impacted by the reduced parking. The City has identified the MEMU area for high -intensity, mixed use development in order to reduce demands for parking and traffic impacts. However, the MEMU area is still in transition, and portions including the MEMO area have yet to 60A-53 EXHIBIT 2 SPR No. 2017-09/DBA No. 2017-02 May 21, 2018 Page 8 redevelop and produce the pedestrian -scale environment envisioned by the plan. To mitigate these impacts, the applicant prepared a parking study that shows that providing valet service and/or a shuttle to major transit stops will reduce parking demand on the site by 150 parking spaces. The study also identifies the project and its proximity to transit will generate 105 new transit trips. Based on these factors and comparison against other major parking studies prepared by public agencies (San Diego, 2011 and Los Angeles, 2016), the parking study states that the project will have a peak demand of 349 vehicles for the residential component only and 399 parking spaces, including the commercial component. The report and staff analysis also show that the site lies along an express and a standard bus line that provide service approximately every 10 to 15 minutes during rush hour. These lines connect the project to points west (central Santa Ana, Garden Grove, and Westminster), north (Tustin, Orange, and Placentia), and east (central Tustin). As a result of the parking reduction requested for a family -oriented project, staff coordinated with the applicant to explore alternate options for reducing parking demand on the project site. In response, AMG prepared a parking management plan and draft concept for parking valet service to nearby privately -owned parking lots and to operate a shuttle from the project site to various transit stops nearby. To defer the costs of monitoring the shuttle, AMG and the City will include terms in the Density Bonus Agreement to address operations of the shuttle and/or valet service. The Planning and Building Agency, in coordination with the Public Works Agency and City Attorneys Office, have worked with the developer to refine the deal points. After careful consideration, the City and developer have agreed to the deal points, which will be incorporated into the Density Bonus Agreement and subject to review after one year. These terms are described in the "Density Bonus Agreement Deal Points' section of this staff report. 6. Additional Density Bonus Law Considerations There are no historic resources in the immediate vicinity that would be impacted by the proposed development. The project's design and operations, with the requested incentives/concessions and waiver, will not be detrimental to public health or safety as the project was reviewed by the City's Development Review Committee, which consists of representatives from Planning, Building Safety, Public Works, Housing, the City Attorney's Office, and the Orange County Fire Authority (OCFA). Should the Density Bonus Agreement application be approved, the agreement will be authorized by the City Council after the Planning Commission considers the application for the project as a whole, including the Site Plan Review and Density Bonus Agreement applications together. Density Bonus Agreement Deal Points The applicant is currently negotiating terms of the Density Bonus Agreement with the City's Community Development Agency (CDA). The terms will include deal points that are intended to provide community benefits and services to the residents of the development and the greater Santa Ana community, and to address operations and the parking shuttle and/or valet service. Community Benefits 60A-54 EXHIBIT 2 SPR No. 2017-09/DBA No. 2017-02 May 21, 2018 Page 9 • AMG and the City will negotiate ongoing onsite supportive services, programs, and amenities • AMG must ensure routine maintenance, access for inspections, and 24-hour emergency management • The project will incorporate green building features • AMG will engage in local hiring and Santa Ana work/live preference • AMG will support crime -free housing policies • AMG and the City will refine financial reporting requirements Parking Shuttle and/or Valet Service • AMG must identify which parking lots have agreed to rent out parking spaces for the valet service • AMG must identify specific shuttle stop locations and must obtain approval from the Orange County Transportation Authority (OCTA) to utilize its bus stops/pullouts as part of its shuttle service operations • All residents of driving age must disclose any owned, leased, or rented vehicles to be permitted to park on the project site or any properties as part of the valet or shuttle service • Each tenant must agree to terms prohibiting parking of his or her vehicle on any City -owned property o Every such agreement must contain penalties/consequences for violating the terms of the agreement o Terms shall also be incorporated into the City's housing plan or agreement for the project • The shuttle shall be operated by the developer and be at the developer's expense • The developer and/or management company shall maintain a copy of the shuttle's operating plan, including days, times, and frequency of service, with the City's Planning Division and Public Works Agency • The City can record a lien to collect any unpaid fines or monitoring costs • The City may require the developer and/or management company to include lease provisions that limit the number of vehicles a tenant may possess during the term of occupancy • The developer and/or management company shall work with the City's Planning Division, Public Works Agency, and City Attorney's Office to document and record the agreement Table 5: CEQA. Strategic Plan Alignment and Public Notification & Community Outreach CEQA, Strategic Plan Alignment, and Public Notification & Community Outreach CEQA CEQA Type Previously approved environmental document EIR No. 2006-01 Reason(s) In accordance with the California Environmental Quality Act (CEQA), the recommended Exempt or Analysis action has been determined to be adequately evaluated in the previously certified EIR No. 2006-01 as per Sections 15162 and 15168 of the CEQA guidelines. All mitigation measures in EIR No. 2006-01 and associated Mitigation Monitoring and Reporting Program (MMRP) have been enforced and continue to apply to the proposed project. As required by the MMPR, a traffic impact analysis was performed to analyze any potential 60A-55 EXHIBIT 2 SPR No. 2017-09/DBA No. 2017-02 May 21, 2018 Page 10 CEQA, Strategic Plan Alignment, and Public Notification & Community Outreach changes in area traffic as a result of the proposed development. The study concluded that no additional significant impacts would trigger the requirement for additional environmental review. In addition, a health risk assessment (HRA) was prepared to identify any impacts from developing a residential community near a major freeway. The HRA finds that no mitigation measures are required for the project due to its distance from the Santa Ana (I- 5) and Costa Mesa (SR-55) freeways. In considering additional analysis, the applicant submitted a greenhouse gas study to indicate that the project will not negatively impact greenhouse gas reduction goals. As outlined in this staff report, the project is consistent with the City's General Plan and the MEMU regulating plan. Further, it is consistent with the density bonus provisions outlined in the City's Housing Opportunity Ordinance. The project site is located within city limits and is less than five acres in size. It is already in an urbanized setting surrounded by urban uses, and the project has not been identified as habitat for endangered, rare or threatened species. Strategic Plan Alignment Goal(s) and Policy(s) Approval of this item supports the City's efforts to meet Goal No. 3 (Economic Development) Objective No. 2 of creating new opportunities for businesstjob growth and encourage private development through new General Plan and Zoning Ordinance policies. The item also supports Goal 5 (Community Health, Livability, Engagement & Sustainability) Objective No. 3 to facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods. Public Notification & Community Outreach Required Measures A public notice was posted on the project site on May 25, 2018. Notification by mail was mailed to all property owners and occupants within 500 feet of the project site on May 25, 2018. Newspaper posting was published in the Orange County Reporter on May 25, 2018. The applicant held a Sunshine Ordinance community meeting on September 7, 2016 at the Saint Jeanne de Lestonnac School. Two members of the public attended: a schoolteacher from the facility and a representative from the City of Tustin. Both voiced their support for the project. No additional communications regarding the meeting were received after. The Lyon Street Neighborhood Association was contacted by phone to identify any areas Additional Measures of concern. At the time this report was printed, no issues of concern were raised regarding this application. Conclusion Based on the analysis provided within this report, staff recommends that the Planning Commission adopt a resolution approving Site Plan Review No. 2017-09 and Density Bonus Agreement Application No. 2017-02 as conditioned. Ali Pezeshkpour, AICP Senior Planner Z I •. EXHIBIT 2 SPR No. 2017-09/DBA No. 2017-02 May 21, 2018 Page 11 AP:sb S.'1Planntng Canmission1201MPR17-09 DBA17-02 AMG Assoc 2110 and 2114 E FlrsLpc Exhibits 1. Resolution 2. Vicinity Zoning and Aerial Map 3. Site Photo 4. Site Plan 5. Unit Floor Plans 6. Building Elevations 7. Building Perspectives 8. Landscape Plans 9. Air Quality and Greenhouse Gas Technical Report 10. Health Risk Assessment 11. Parking Study and Management Plan 60A-57 EXHIBIT 2 This page left blank intentionally. �. 1 EXHIBIT 2 LS 6.04.18 RESOLUTION NO. 2018-xx A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA ANA APPROVING SITE PLAN REVIEW NO. 2017-09 AS CONDITIONED AND DENSITY BONUS AGREEMENT NO.2017-02 AS CONDITIONED FOR A NEW MIXED -USE FAMILY AFFORABLE RENTAL RESIDENTIAL AND COMMERCIAL DEVELOPMENT FOR THE PROPERTIES LOCATED AT 2110, 2114, AND 2020 EAST FIRST STREET BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Planning Commission of the City of Santa Ana hereby finds, determines and declares as follows: A. Gene Broussard, representing Affordable Housing Land Consultants, Inc. (AMG & Associates, hereinafter referred to as "Applicant'), is requesting approval of Site Plan Review No. 2017-09, as conditioned, and Density Bonus Agreement No. 2017-02, as conditioned, to allow the construction of a new mixed -use 552-unit family affordable rental residential and commercial development at 2110 and 2114 East First Street. B. The Metro East Mixed Use overlay district was adopted in 2007 as a result of interest in developing mixed -use residential and commercial projects in its project area. The regulating plan, which establishes land uses and development standards, allows a variety of housing and commercial projects, including mixed -use residential communities, live/work units, hotels, and offices. C. The California Density Bonus law allows developers to seek increases in base density for providing on -site housing units in exchange for providing affordable units on site. To help make constructing on -site affordable units feasible, the law allows developers to seek incentives/concessions or waivers that would help the project be built without significant burden and without detriment to public health. D. On June 4, 2018, the Planning Commission of the City of Santa Ana held a duly noticed public hearing and at that time considered all testimony, written and oral. E. Section 41-595.5 of the Santa Ana Municipal Code (SAMC) requires a review by the Planning Commission of all plans within a zoning district classification combined with an OZ suffix where the applicant wants to Resolution No. 2018aoc Page 1 of 11 66N! BY EXHIBIT 2 apply the overlay zone, to ensure the project is in conformity with the overlay zone plan. F. The zoning designation for the subject property is Metro East Mixed Use (MEMU) Overlay Zone (OZ-1) in the Active Urban land use district. G. The Planning Commission determines that the following findings, which must be established in order to grant this Site Plan Review pursuant to SAMC Section 41-595.5, have been established for Site Plan Review No. 2017-09 to allow construction of the proposed project. That the proposed development plan is consistent with and will further the objectives outlined in Section 1.2 for the MEMU overlay district. The proposed development project will be compatible with Section 1.2 (Objectives) of the Metro East Overlay zone. The proposed project will contain 552 residential units (including one manager's unit) with a substantial (up to 10,000 square feet) commercial component. In addition, the project has been designed to feature a public plaza at its frontage on First Street, designed for temporary activities or kiosks. Constructing 552 units in the project area will add to the residential population in the area, stimulating demand for community -serving commercial uses such as restaurants, retail stores, dry cleaning services, and other similar uses. Finally, the project meets several General Plan goals and policies, including the Land Use Element's Goal 2 (to encourage diversity of quality housing, affordability levels, and living experiences), Goal 4 (to provide adequate rental and ownership housing and supportive services), and the Housing Element's policies HE-2.3 and 2.4 (to encourage construction of rental housing, facilitate diverse types of housing, prices, and sizing). 2. That the proposed development plan is consistent with the development standards specified in Section 4 of the MEMU overlay district. Although the project complies with the majority of development standards enumerated in the MEMU regulating plan, it does not meet the requirements for publicly - accessible open space, building setbacks, off-street parking, and driveway widths. These standards require approval of incentives/concessions and/or waivers through the Density Bonus Agreement application. Resolution No. 2018-xx Page 2 of 11 EXHIBIT 2 3. That the proposed development plan is designed to be compatible with adjacent development in terms of similarity of scale, height, and site configuration and otherwise achieves the objectives of the Design Principles specified in Section 5 of the MEMU overlay district. The proposed development consists of a six -level project surrounded by multi -level and single -story structures. A single -level school campus abuts the site to the south, and single -story commercial development is to the north across First Street and east abutting the site. A midrise office building abuts the site to the west. The MEMU anticipates developments of this scale or larger in the "Active Urban" land use district, and this development would continue the scale of existing buildings in its immediate vicinity. Moreover, the project contains ground -floor non-residential (commercial and community) spaces at the front of the project, which will activate First Street. These spaces have been designed to feature ground -floor ceiling heights between 12 and 22 feet tall, enhancing the urban, mixed -use atmosphere envisioned by the MEMU overlay district. 4. That the land use uses, site design, and operational considerations in the proposed development plan have been planned in a manner that will result in a compatible and harmonious operation as specified in Section 7 of the MEMU overlay district. The proposed project is consistent with the scale and intensity of projects anticipated in the original MEMU EIR (EIR No. 2006-01) and in the MEMU overlay district regulating plan. No negative impacts from noise, air quality, aesthetics, or traffic are expected except for temporary impacts arising during construction of the project. The site's design is intended to activate its frontage on First Street by providing flexible community areas that can be programmed with activities or temporary uses, and the landscape palette has been carefully selected to complement existing landscape patterns of the surrounding land uses. H. The Planning Commission determines that the following findings, which must be established in order to grant this Density Bonus Agreement pursuant to SAMC Section 41-1607, have been established for Density Bonus Agreement No. 2017-02 to allow construction of the proposed project: 1. That the proposed development will materially assist in accomplishing the goal of providing affordable housing Resolution No. 2018-xx Page 3 of 11 60A-61 EXHIBIT 2 opportunities in economically balanced communities throughout the city. The proposed development will provide 552 affordable rental family housing units, contributing toward the City's rental housing stock to serve the needs of diverse and underserved populations. The area in which the project is proposed, the Metro East Mixed Use overlay district, currently contains one market -rate mixed use community and another entitled market -rate mixed use community. The construction of this project will contribute toward an economically balanced community by providing housing for different demographic and income levels in an area rich with employment opportunities, commercial development, and market -rate housing. 2. That the development will not be inconsistent with the purpose of the underlying zone or applicable designation in the general plan land use element. The project site is located in an area already identified in both the City's Zoning Code (the Metro East Mixed Use overlay district) and General Plan (the Land Use and Housing elements) for new residential communities. Moreover, the proposed density of 80 units per acre is consistent with the anticipated development intensity of 90 units per acre in the General Plan Land Use element, and is below the density bonus provisions in the California Density Bonus Law for family -oriented projects (35-percent density bonus) and in the City's Housing Opportunity Ordinance (35- percent density bonus). 3. That the deviation is necessary to make it economically feasible for the Applicant to utilize a density bonus authorized for the development pursuant to section 41-1603. The proposed project requires three deviations through incentives/concessions: publicly -accessible open space, building setbacks (side and rear), and offsite parking, as well as one deviation through a waiver in driveway width. The four deviations are described as follows: First, the MEMU regulating plan requires that publicly - accessible open space be provided along main street -facing fagades. Because the project has frontage on only one street, meeting this requirement would result in the building being pushed back significantly from First Street and would Resolution No. 2018-xx Page 4 of 11 60A-62 EXHIBIT 2 render almost the first 1/4 of the site's depth unusable for building area, resulting in the developer having to construct a parking structure or subterranean parking, significantly increasing building costs. Moreover, in order to maintain the current proposed unit count, the developer would be required to construct additional levels, resulting in a different type of construction (steel-frame/Type I versus wood/Type III), further increasing development costs. If the publically accessible open space standard were applied as written, the result would be a significant loss of units and parking area. Pushing the building back would also reduce the contribution to creating a more urban, walkable environment. The Applicant intends to compensate for this reduction by providing a greater average square footage of private/common open space per unit on the project site. Second, for a project of this size and construction type, OCFA requires 360-degree circulation on the project site with minimum 20-foot fire lanes. The addition of landscaping and walkways around the project perimeter results in the project not being able to meet the maximum 10-foot side yard requirement. Further, for a project of this height, the MEMU requires a 100-foot rear yard setback. In order to maintain the current proposed unit count, the developer would be required to construct additional levels, resulting in a different type of construction (steel-frame/Type I versus wood/Type III), further increasing development costs. Implementing this standard as written would result in the building being set back an additional 55 feet from the rear lot line, resulting in a significant loss of units and parking area. Third, constructing 2.0 parking spaces per residential unit on the project site would require the developer to construct an additional level of parking either above- or below -grade, resulting in increased construction costs and/or a loss of an entire level of residential units. Staff has analyzed the proposed project and finds that there is potential that the project and neighborhood may be impacted by the reduced parking. The City has identified the MEMU area for high - intensity, mixed use development in order to reduce demands for parking and traffic impacts. However, the MEMU area is still in transition, and portions including the MEMU area have yet to redevelop and produce the pedestrian -scale environment envisioned by the plan. To mitigate these impacts, the applicant prepared a parking study that shows that providing valet service and/or a shuttle to major transit stops will reduce parking demand on the site Resoluton No. 2018-xx Page 5 of 11 EXHIBIT 2 by 150 parking spaces. The study also identifies the project and its proximity to transit will generate 105 new transit trips. Based on these factors and comparison against other major parking studies prepared by public agencies (San Diego, 2011 and Los Angeles, 2016), the parking study states that the project will have a peak demand of 349 vehicles for the residential component only and 399 parking spaces, including the commercial component. The report and staff analysis also show that the site lies along an express and a standard bus line that provide service approximately every 10 to 15 minutes during rush hour. These lines connect the project to points west (central Santa Ana, Garden Grove, and Westminster), north (Tustin, Orange, and Placentia), and east (central Tustin). Finally, the Applicant is proposing valet service to nearby parking lots and a parking shuttle to major transit stops to further reduce the demand for on -site parking. Fourth, if the project was designed with narrower driveways, the driveways would not conform to minimum standards established for fire ingress/egress by OCFA and for trash truck ingress/egress established by the Public Works Agency and Waste Management, the current waste collector contracted by the City. As a result, a waiver from the maximum driveway width is required. The .three. requested concessions. could be avoided _ if the project were constructed using a different site plan and building type. If the project were designed with a multi -level parking and/or subterranean parking structure, or if the applicant used different building materials (non-combustible, Type 1) to construct a taller project, additional area on site would become available to provide open space and parking, and to meet the required rear yard setback. However, these changes would increase development costs, resulting in the affordable housing project becoming financially infeasible due to the significantly -increased financial implications of using Type I construction. I. The Applicant agrees to indemnify, hold harmless, and defend the City of Santa Ana, its officials, officers, agents, and employees, from any and all liability, claims, actions or proceedings that may be brought arising out of its approval of this project, and any approvals associated with the project, including, without limitation, any environmental review or approval, except to the extent caused by the sole negligence of the City of Santa Ana. Resolution No. 2018-xx Page 6 of 11 EXHIBIT 2 Section 2. In accordance with the California Environmental Quality Act (CEQA), the recommendation is exempt from further review pursuant to Sections 15162 and 15168 of the CEQA guidelines. In accordance with the California Environmental Quality Act (CEQA), the recommended action has been determined to be adequately evaluated in the previously certified EIR No. 2006-01 as per Sections 15162 and 15168 of the CEQA guidelines. All mitigation measures in EIR No. 2006-01 and associated Mitigation Monitoring and Reporting Program (MMRP) have been enforced and continue to apply to the proposed project. As required by the MMPR, a traffic impact analysis was performed to analyze any potential changes in area traffic as a result of the proposed development. The study concluded that no additional significant impacts would trigger the requirement for additional environmental review. In addition, a health risk assessment (HRA) was prepared to identify any impacts from developing a residential community near a major freeway. The HRA finds that no mitigation measures are required for the project due to its distance from the Santa Ana (1-5) and Costa Mesa (SR-55) freeways. In considering additional analysis, the applicant submitted a greenhouse gas study to indicate that the project will not negatively impact greenhouse gas reduction goals. As outlined in the accompanying staff report, the project is consistent with the City's General Plan and the MEMU regulating plan. Further, it is consistent with the density bonus provisions outlined in the City's Housing Opportunity Ordinance. The project site is located within city limits and is less than five acres in size. It is already in an urbanized setting surrounded by urban uses, and the project has not been identified as habitat for endangered, rare or threatened species. Section 3..The Planning,Commission of the City of Santa Ana, after conducting the public hearing, hereby approves Site Plan Review No. 2017-09 and ,Density Bonus Agreement No. 2017-02 as conditioned in Exhibit A attached hereto and incorporated as though fully set forth herein. This decision is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Planning Commission Action dated May 14, 2018, and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference. ADOPTED this 41h day of June, 2018 by the following vote: AYES: Commissioners: NOES: Commissioners: ABSENT: Commissioners: ABSTENTIONS: Commissioners: Resolution No. 2018-xx Page 7 of 11 EXHIBIT 2 Mark McLoughlin Chairman APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney Lisa Storck Assistant City Attorney CERTIFICATE OF ATTESTATION AND ORIGINALITY I, SARAH BERNAL Recording Secretary, do hereby attest to and certify the attached Resolution No. 2018-xx to be the original resolution adopted by the Planning Commission of the City of Santa Ana on June 4, 2018. Date: Recording Secretary City of Santa Ana Resolution No. 2018-xx Page 8 of 11 EXHIBIT 2 Site Plan Review No. 2017-09 and Density Bonus Agreement No. 2017-02 are approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code, and all other applicable regulations. In addition, it shall meet the following conditions of approval: The Applicant must comply with each and every condition listed below prior to exercising the rights conferred by this site plan review. The Applicant must remain in compliance with all conditions listed below throughout the life of the development project. Failure to comply with each and every condition may result in the revocation of the site plan review. A. Planning Division All proposed site improvements must conform to the Development Project Review approval of DP No. 2016-33. 2. Prior to issuance of building permits for above -ground construction, the Applicant shall record terms into an agreement with the City of Santa Ana detailing operations of the proposed shuttle and/or valet service. The terms and contents of the agreement may be included in any required density bonus and/or inclusionary housing agreement and shall be reviewed and approved by the Planning Division, Public Works Agency, and City Attorney's Office prior to recordation. Upon review and approval, proof of the agreement's recordation shall be submitted to the Planning Division prior to building permit issuance. After 12 months of operation, the Applicant shall prepare a review of the operations detailed in the agreement, including the shuttle and/or valet services, for review and analysis by the City, after which modifications and/or alternate parking reduction strategies will be considered if necessary. Any modifications and/or alternate parking reduction strategies will be reviewed by the Planning Manager, after which a determination will be made if the agreement can be amended by the City Manager or his designee, or if the Planning Commission must review any new proposed conditions of approval. The initial "deal points" are outlined below: • AMG must identify which parking lots have agreed to rent out parking spaces for the valet service • AMG must identify specific shuttle stop locations and must obtain approval from the Orange County Transportation Authority (OCTA) if it wishes to utilize its bus stops/pullouts as part of its shuttle service operations Resolution No. 2018-xx Page 8 of 11 60A-67 EXHIBIT 2 • All residents of driving age must disclose any owned, leased, or rented vehicles to be permitted to park on the project site or any properties as part of the valet or shuttle service • Each tenant must agree to lease terms prohibiting parking of his or her vehicle on any City -owned property o Every such agreement must contain penalties/consequences for violating the terms of the agreement o Terms shall also be incorporated into the City's housing plan or agreement for the project • The shuttle shall be operated by the developer and at the developer's sole expense • The developer and/or management company shall maintain a copy of the shuttle's operating plan, including days, times, and frequency of service, with the City's Planning Division and Public Works Agency • The City can record a lien to collect any unpaid fines or monitoring costs • The developer may require include lease provisions that limit the number of vehicles a tenant may possess during the term of occupancy • The developer and/or management company shall coordinate with the City's Planning Division, Public Works Agency, and City Attorney's Office to document and record the agreement 3. Prior to issuance of building permits for above -ground construction, the Applicant shall provide the City of Santa Ana a copy of a recorded easement for reciprocal access (ingress, egress, and fire access) for any and all proposed shared drive aisle(s) between the project site and the adjacent property to the west. Any amendment to this site plan review, including modifications to approved materials, finishes, architecture, site plan, landscaping, unit count, mix, and square footages must be submitted to the Planning Division for review. At that time, staff will determine if administrative relief is available or if the site plan review must be amended. 5. A residential property manager shall be on site at all times that the project is occupied and the developer and onsite management shall at all times maintain a 24-hour emergency contact and contact information on file with the City. 6. All mechanical equipment shall be screened from view from public and courtyard areas. 7. A final detailed amenity plan must be reviewed and approved prior to issuance of any building permits. The plan shall include details on the hardscape design, lighting concepts and outdoor furniture for amenity, plaza, or courtyard areas as well as an installation plan. The exact specifications for these items are subject to the review and approval by the Planning Division. Resolution No. 201 S-xx Page 9 of 11 EXHIBIT 2 8. Prior to installation of landscaping, the Applicant shall submit photos and specifications of all trees to be installed on the project site for review and approval by the Planning Division. Specifications shall include, at a minimum, the species, box size (24 inches minimum), brown trunk height (10-foot minimum), and name and location of the supplier. 9. After project occupancy, landscaping and hardscape materials must be maintained as shown on the approved landscape plans. 10. A Resident Storage Plan shall be provided for the project prior to occupancy. Storage shall be available at no cost to the residents. 11. Prior to issuance of building permits, the Applicant shall submit a construction schedule and staging plan to the Planning Division for review and approval. The plan shall include construction hours, staging areas, parking and site security/screening during project construction. Resolution No. 2018-xx Page 10 of 11 • EXHIBIT 2 This page left blank intentionally. 60A-70 613/2018 SPR 2017-09 & DBA 2017-02, "AMG First Point" EXHIBIT 2 Ana Boundary b5 C.1 , .y 44 - �` rrtasS:e_d _ - .. i i •I b t F ., ton Oeaupbon � I�7 � �. _t • ❑SL I1 rMa I � `.a r,jT f. 4 [e l' -> N1 ■ G ,: ■: ti' G. a is t r i g `x LJ ©< ... 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May 2, 2018 Alexis Gevorgian AMG Associates, LLC. 16633 Ventura Boulevard, Suite 1014 Encino, CA 91436 Re: Parking Demand Analysis for the 2114 E. 111 Street Apartments INTRODUCTION This report describes the parking demand characteristics of the proposed mixed -use project located at 2114 E. 1s' Street in the City of Santa Ana. The purpose of this report is to present the expected parking demand of the proposed project. PROJECT DESCRIPTION The 2114 E. 15t Street Apartments is proposed to be a mixed use project with 552 apartment units over ground floor retail and a 620 space parking garage. There will also be 10,000 square feet of ground floor retail space. The project is located on the southeast corner of 1 st Street and East 1 st Street in the City of Santa Ana. The site is currently occupied by a used car dealership several other businesses in a single store office building. TRANSPORTATION SETTING Surrounding Land Uses - The project would be located within walking distance of shopping, restaurants, and a number of major employers such as Caltrans, the Social Security Administration, Kaiser Permanante's Offices, the Tustin Rehabilitation Hospital, and the Orange County Global Medical Center. Roadway Network - The primary roadway that would be affected by this project is 1 st Street. 111 Street is a six -lane street along the frontage of the project, and changes to have two eastbound lanes just east of the project site. It is an arterial street with traffic signals at all major intersections but no parking is permited in the vicinity of the proposed project. E. 1st Street is a two-lane private dead end road that currently has on -street parking that is designated as being restricted to authorized vehicles only. Please note that E. 15t Street is within the boundary of the project site and would be realigned as part of the proposed project. Transit Service - There is bus transit service provided by Orange County Transportation Authority (OCTA) adjacent to the project. Route 64 operates next to the project site with connections to other bus routes at Larwin Square in Tustin and at the Westminster Mall in EXHIBIT 11 1875 Olympic Boulevard, Suite 210 • Walnut Creek, CA 94596 - 925.945.0201 - Fax: 925.945.7966 60A-84 Page 2 of 8 — 2114 E. 11' Street Parking Demand Analysis Abi-969"Alls6ciates TRAFFIC ENGINEERING, INC. Huntington Beach. Please note the nearest bus stops are less than a block from the site. About two blocks away are bus stops for Routes 71 and Express Route 64X. PARKING DEMAND ANALYSIS This section discusses the estimated parking demand for the project. The proposed project is proposing to provide on on -site parking garage with 620 spaces. The amount of auto use would be less than a typical apartment project as a result of the affordability component of the project and the proximity to transit. As a result, it is expected some auto trips would be replaced by transit trips, pedestrian trips, and bicycle usage. There are a couple factors that the City could consider when reviewing parking demand for this project. These include: 1. Residential Parking Demand for Transit Oriented Developments -There is extensive evidence available that apartment units in transit oriented developments generate less parking demand than market rate units. 2. Affordable Housing Parking Generation Rates - There is also extensive evidence that affordable apartment units generate less parking demand than market rate units. Residential Parking Demand for Transit Oriented Developments - For a location in business district with bus transit access (and located near major employers), the parking demand would be less than the typical parking demand rate in the ITE Parking Generation Manual. The availability of transit, the use of bicycles, and the attractiveness of walking in the mixed -use business district environment would clearly result in reduced vehicle trip generation and an associated reduction in the need for parking. Since it is anticipated that a higher portion of all travel will occur by walking, bicycling, and through the use of public transit, it is expected that some of the apartment residents would not have personal vehicles. According to S.B. 743 a project's parking impacts are no longer be considered significant impacts on the environment if the project is a Transit Oriented Development (TOD). In the State of California a TOD is defined as a project that is 1) residential, mixed -use residential, or an employment center project, and 2) located on an infill site within a transit priority area. A transit priority area is defined as being an area within one-half mile of a major transit stop. A major transit stop is defined as containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods. In the case of the proposed project all of these criteria are met with one minor exception. Less than two blocks away there is a intersection of two major bus routes. While the overall frequency of the bus service at the intersection is 15 minutes one of the lines at the intersection (Route 71) operates on slightly higher service intervals of about 20 minutes. �• • Page 3 of 8 — 2114 E. 1" Street Parking Demand Analysis Abr§K4N1Ts6ciates TRAFFIC ENGINEERING. INC. The project is also proposing to meet the major transit stop requirement by providing a shuttle service to the Santa Ana Regional Transit Center. The Santa Ana Regional Transportation Center (SARTC) is a major transfer center that provides access to regional Amtrak and Metrolink rail services as well as intercity and interstate bus transportation. The shuttle is planned to include service during the weekday peak commute hours with a maximum headway of 15 minutes using a 20-passenger shuttle bus. Other than the project itself, the shuttle would include the following stops to serve residents: V Street at Cabrillo Park Drive 18' Street at Lyon Street 1 sI Street at Grand Avenue 1 sc Street at Standard Avenue Santa Ana Boulevard at Santiago Boulevard (The Santa Ana Regional Transit Center) Grand Avenue at Santa Ana Boulevard Based on data from MTC's travel survey for projects within 1 mile of a train station, during the peak commute hours the project would be forecast to generate approximately 105 transit trips. However, please note that that it is forecast that approximate three quarters of these trips would be expected to use the planned shuttle service and the other 25% of these transit trips would be made via existing public transit in the area. Again, please note that there are public bus stops located less than a block from the site. With the addition of the shuttle service to the SARTC the project will meet the definition of a transit oriented development (subject to City approval) and, as such, a reduction in the parking demand from the project would be forecast to occur. Based on a detailed analysis of 12 large TOD housing projects the parking demand for the proposed project, when compared to a project without any major transit stops nearby, would be expected to be reduced by a minimum of 23%. Therefore, the addition of the shuttle service is estimated to equate to a minimum reduction in parking demand of approximately 150 parking spaces.' In addition, the detailed surveys of TOD housing projects have found that the peak parking demand recorded at TOD sites has been found to be a minimum of 45% less than the peak parking demand rates for apartments published by the Institute of Transportation Engineers (ITE).2 For the proposed project (ITE Land Use Code 222) the peak parking demand for non-TOD sites is 1.37 vehicles per unit. Therefore, based on surveys of similar TOD apartment projects the parking demand is forecast to be approximately 0.62 vehicles per unit, meaning the parking demand for the residential portion of the project could reduced for transit access by as much as 414 spaces (i.e. the Statewide Transit Oriented Development (TOD) Study Special Report — Parking and TOD: Challenges and Opportunities, Business, Transporation, and Houiing Agency of the Calfiornia Department of Sacramento, CA, February, 2002. z Parking Generation at Transit -Oriented Developments: Five US Case Studies, Reid Ewing, College of Architecture and Planning, Univerisyt of Utah, Salt Lake City, UT, November 2016. �� • •, Page 4 of 8 — 2114 E. ls' Street Parking Demand Analysis Abr9tWIN FIciates TRAFFIC ENGINEERING, INC. maximum potential reduction). Please note these reductions are based on market rate units near major transit stops but do not account for the affordability component of the project. Affordable Housing Parking Demand - There is extensive evidence that trip generation and parking demand at affordable housing projects is substantially less than would occur at a comparably sized market -rate apartment project. The following is a summary of some available data on this subject: City of Los Angeles Affordable Housing Survey - For example, a 2016 survey of affordable housing sites in the City of Los Angeles indicated the daily traffic generated at the sites was approximately 40% less than the ITE rates for market rate housing? Please note the City of Los Angeles allows up to a 50% reduction in parking for affordable housing projects. City of San Diego Affordable Housing Parking Study- The City of San Diego conducted an affordable housing parking study in 2011.4 About 2,750 surveys were distributed to 34 affordable housing developments. The survey found that parking demand for affordable projects is about one half of typical rental units in San Diego; almost half the units surveyed had no vehicle. The survey indicated that in urban areas (defined as somewhat conducive to walking with moderate transit access) affordable housing units had an average of 0.5 vehicles per household. Please note that affordable housing in central business district (core) area for very low income households were found to be as low as 0.1 cars per household. Assembly Bill No. 744 Planning and Zoning: Density Bonuses - It is also important to note that A.B. 744 allows developers of low income housing types to request lower parking minimums. Based on A.B. 744 it appears that mixed -income housing within Yz mile of a well -served transit stop and with at least 11 percent of the units set aside for extremely low-income residents or 20 percent set aside for low-income residents theoretically requires only 0.5 parking spaces per bedroom. According to the California Public Resources Code a well -served or "major transit stop" means a site containing an existing rail transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods. In the case of the proposed project there is a intersection with two major bus routes located much less than a /: mile from the site (about 700 feet from the site). At the nearby intersection of 15' Street and N. Tustin Avenue Route 64 and 64X operate with approximately 15 minute headways and Route 71 operates with approximately 20 minute headways. In addition the project is also proposing to provide shuttle service to the Santa Ana Regional Transporation Center with 15 minute headways. This proposed service is decribed in more detail below. It should also be noted that ' Transportation Impact Study Guidelines, City of Los Angeles, Los Angeles Department of Transportation, CA, December, 2016. ^Affordable Housing Parking Study, City of San Diego, San Diego, CA, February, 2011. �� • Page 5 of 8 — 2114 E. 161 Street Parking Demand Analysis AbrNWWOsgdates TRAFFIC ENGINEERING, INC. to meet the requirements of A.B. 744 projects must provide unobstructed access to the transit stop that they are near, meaning that a resident must be able to access the stop without encountering natural or constructed impediments. Based on our review this requirement would be met since there is an existing sidewalk between the project site and the transit stop in question. SUMMARY OF FINDINGS ON PARKING Table 1 presents a summary of the project's parking requirements and forecast demand based on the City's code, the ITE parking generation rates, the referenced transit oriented development studies, and also the affordable housing surveys. The residential parking providec would be forecast to generate a demand for about 756 spaces based on the unadjusted ITE parking rates.5 This publication indicates that market rate apartments (ITE Land Use Code 222) typically generate a maximum peak parking demand of 1.37 vehicles per unit. Table 1 Off -Street Parking Calculations Data Source Land Use Size Parking Ratio Required Spaces City of Santa Ana Municipal Code Apartments 552 units 1.25 690 City of Santa Ana Municipal Code Retail 10,000 sq. ft. 5 50 Municipal Code Parking Requirement 740 ITE Parking Demand Rates Apartments 552 units 1.37 756 ITE Parking Demand Rates Retail 10,000 sq. ft. 2.55 26 ITE Unadjusted Demand Estimate 782 Transit Oriented Development Rates Apartments 552 units 0.62 342 ITE Parking Demand Rates Retail 10,000 sq. ft. 2.55 26 TOD Parking Demand Estimate 368 Affordable Housing Rates Apartments 552 units 0.5 276 ITE Parking Demand Rates Retail 10,000 sq. ft. 2.55 26 Affordable Housing Parking Estimate 302 5 Parking Generation Manual, 4tb Edition, Institute of Transportation Engineers, Washington D.C., 2010. 146 . . �1� � •• Page 6 of 8 — 2114 E. 181 Street Parking Demand Analysis Abr9&1WTs6dates TRAFFIC ENGINEERING, INC. Based on the most recent data available from the City of Los Angeles affordable housing projects generate about 40% less vehicles per day than a typical market rate apartment building. Based on this data the residential portion of the project would have an estimated parking demand of approximatrely 302 vehicles. Therefore, with the proposed shuttle service to meet the transit access requirements the City could consider making the findings that allowing the project to proceed with 0.5 spaces per unit is reasonable and appropriate. This could be based, in part, on the fact that this is an affordable housing project in a location within walking distance of bus transit and major employment centers. If this were approved, the following is a calculation of the potential parking requirements: 552 units times 0.5 spaces per unit equals 276 parking spaces. Including the 50 spaces required for the retail space would increase the net total parking requirement for the project 326 parking spaces. The justification is as follows: Transit Services - There are existing bus stops less than one block from the site that provide direct access other regional bus routes in the area. Route 64 operates next to the project site with connections to other bus routes at Larwin Square in Tustin and at the Westminster Mall in Huntington Beach. About two blocks away are bus stops for Routes 71 and Express Route 64X. In addition to these services the project is proposing to provide free on -demand shuttle service to the Santa Ana Regional Transportation Center for residents that would operate on 15 minute headways during the peak commute hours. The Santa Ana Regional Transportation Center (SARTC) provides access to regional Amtrak and Metrolink rail services and also intercity and interstate bus transportation. City of Santa Ana General Plan Policies - The City of Santa Ana has a number of policies that support a reduction in on -site parking. These include policies related to the goals of increasing the use of public transit, limiting increases in vehicular traffic, improving air quality, limiting fuel consumption, and improving conditions for pedestrians in the area. Each of these factors, goals, and objectives is described in the City's General Plan. These policies could provide additional support for making the findings to approve the project with reduced parking. Assembly Bill No. 7" - The proposed project is within two block of an intersection of two major bus routes, which is clearly much less than the typical ''/z mile requirement for a project to be considered a transit oriented development. At the nearby intersection of 1s1 Street and N. Tustin Avenue Route 64 and 64X operate with approximately 15 minute headways and Route 71 operates with approximately 20 minute headways. However, it is important to note that this project will provide additional demand for bus service in the area and the applicant has said they plan to open a discussion with OCTA about increasing the frequency of service. As mentioned above, the project is also proposing to provide shuttle service to the Santa Ana Regional Transporation Center with 15 minute headways. This would provide a direct and convienient connection to the Santa Ana Regional Transportation Center. The Santa Ana Regional Transportation Center (SARTC) provides extensive access to numerous transit services including Amtrak and Metrolink rail services, multiply OCTA bus routes, airport and taxi services, and also intercity and interstate bus transportation. Z.. �1 1 � 1 Page 7 of 8 —2114 E. 13' Street Parking Demand Analysis AbrgfT1Sj715skiates TRAFFIC ENGINEERING, INC. CONCLUSIONS The proposed project qualifies as a transit oriented development due to its close proximity to a major transit stop where two major bus routes intersect. While the applicant is expecting to open discussions with OCTA about increasing the frequency of bus service near the project site, the project will not rely on this to achieve alternative transportation goals. To ensure the project fully qualifies as a transit oriented development the project is also proposing to provide residents with private shuttle service to the Santa Ana Regional Transporation Center with 15 minute headways. If the City were to allow the applicant to provide 0.5 spaces per unit, as specified by A.B. 744, the parking required for the project would theoretically be 326 parking spaces. Please note this includes the 50 spaces required for the retail uses. The parking demand can also be estimated based on the 4th Edition of the ITE Parking Generation Manual. Since the project is two blocks from a major transit stop and will be providing free shuttle service to the SARTC, the proposed project would be expected to have a 23% reduction to the ITE parking demand.' In addition, an additional reduction to the ITE forecasts can be applied due to the fact that the entire project would be restricted to residents making 60% or less of the Area Median Income (AMI). The City of San Diego's 2011 Affordable Housing Parking Study found that parking demand for affordable housing projects is about one half of typical rental units in San Diego and almost half the units surveyed had no vehicle. However a more conservative esimate comes from the 2016 survey of affordable housing sites conducted by the City of Los Angeles. This study determined that the number of vehicles generated by affordable housing projects is about 40% of what is generated by comparably sized market rate projects. Using the assumptions above the residential portion of the project is forecast to have an unadjusted peak parking demand of 349 vehicles. Including the 50 spaces required for the retail space would increase the forecast total peak parking demand for the project to 399 parking spaces. Please note that if it were conservatively assumed that all the affordable housing sites surveyed in the Los Angeles study also had excellent transit access (and the separate reduction for transit access was eliminated from the parking calculations) then the project would have a forecast average peak parking demand of 504 vehicles. Based on the proposal to accommodate this demand with an on -site parking garage with 620 parking spaces our conclusion is that no parking impacts to the surrounding roadways or properties in the area would be anticipated. Z I • Page 8 of 8 — 2114 E. 1a' Street Parking Demand Analysis Abr§?4W'Ts6ciates TRAFFIC ENGINEERING, INC. Please don't hesitate to contact me if you have any questions about this information. Sincerely, 54L Stephen C. Abrams President Abrams Associates T.E. License No. 1852 60A-91 ILLIN MIN Is W� mom_ 4® A In rd w � N H m X LU O a L ■ LL i O Cl) O N LL C O Q) cc .� Q.cuL_ CU > c_0 LL (6� c 0- U) L l • w t� �. oa F- (l5 4-1 Qi oo E r � co c� G 0) L 0- 4-1 L L ■ � LL Q. 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