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HomeMy WebLinkAboutCORRESPONDENCE - 60A.00 City Council Meeting Correspondence 7/16/2019 DENSITY BONUS AGREEMENT TO ALLOW A 552 UNIT AFFORDABLE RENTAL PROJECT AT 2110, 2114, AND 2020 EAST FIRST STREET Date of Name Representative of In Favor In Opposition Comment Correspondence of RA*. of RA.* 1 7/16/2019 Ugochi L. Anaebere- Public Law Center Yes Nicholson 2 7116/2019 Linda T on behalf of Cesar The Kennedy Commission Yes Covarrubias TOTAL: 2 "RA - Recommended Action Tuesday, July 16, 2019 Page 1 of 1 Orono, Norma From: Ugochi Nicholson < Sent: Tuesday, July 16, 2019 2:51 PM To: eComment Subject: Item 60A Attachments: Letter of Support.pdf Good afternoon, With reference to the attached comment letter. Sincerely, Ugochi Ugochi L. Anaebere-Nicholson I Directing Attorney (pronouns: She/her/hers) Housing and Homelessness Prevention Unit Public Law Center 601 Civic Center Drive West Santa Ana, CA 92701 714-541-1010, ext. 280 direct 1 714-541-5157 facsimile lwww.publiclawcenter.org Confidentiality Notice: E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender immediately at 714-541-1010, ext. 280, that you have deleted the e-mail, all attachments, and any copies thereof. Thank you. • PUBLIC LAWCENTER PROVIDING ACCESS TO JUSTICE FOR GRANGE COUNTY'S LOW INCOME RESIDENTS July 16, 2019 Mayor Miguel Pulido and Members of the City Council City of Santa Ana 20 Civic Center Plaza P.O. Box 1988, M31 Santa Ana, CA 92701 RE: Item 60A: 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)—LETTER OF SUPPORT Dear Mayor Pulido and Members of the City Council: We submit this letter in emphatic support for a much -needed affordable housing project —the 552 Unit ("Unit") being proposed for 2110, 2114, and 2020 East First Street. As will be set forth below, the Unit, as a one -hundred percent affordable housing proposal, qualifies for the Density Bonus it seeks by right, and a decision to deny this project for arbitrary reasons not only violates the spirit of the Density Bonus Law, it constitutes illegal housing discrimination against low- income people under federal and state law. The Planning Commission and City Council Staff have made an intentional decision to assist in the affordable housing crisis that has crippled State of California. The Council should affirm the Planning Commission's decision, accept City Council Staff's recommendation and approve this project. The Public Law Center is a non-profit pro bono law firm in Orange County that provides access to justice for low-income and vulnerable residents. Our practice includes providing representation to low-income families in housing -related matters, preventing homelessness, and advocating for affordable and inclusionary housing PLC is a non-profit pro bono law firm that provides access to justice for low-income and vulnerable residents in Orange County, California. We also collaborate with community organizations, statewide advocates, and law firms to push Orange County jurisdictions to create and maintain effective housing policies for lower -income working families. This proposed project comes at an especially critical time for California, which is experiencing a severe affordable housing crisis. Recently, the National Low Income Housing Coalition released its Out of Reach Report.1 The report highlights Orange County's rising housing crisis and exorbitant housing costs continue to challenge and affect Orange County's lower income 'See 30th Anniversary Out of Reach Report, National Low Income Housing Coalition (2019), https://reports.nlihe.org/sites/default/frles/oor/OOR 2019.pdf (last visited on June 19, 2019) 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 Letter of Support re Item 60A Request for Approval of a Density Bonus Agreement to Allow a 552 Unit Affordable Rental Project at 2110, 2114, and 2020 East First Street July 16, 2019 p. 2 working families. According to the report, workers need to earn $39.17 an hour to afford the rent for a typical two -bedroom apartment in Orange County. The typical fair market rent (FMR) for a two -bedroom unit here is $2,037 per month, ranking Orange County among the nation's top 10 most expensive metropolitan areas in the nation. The annual income needed to afford a two - bedroom FMR is $81,480 and a minimum wage worker needs to work at least 131 hours per week-3.3 jobs to afford a 2-bedroom FMR apartment. The report underscores the crisis facing Orange County Residents, and the housing crisis facing Santa Ana residents is especially acute. Many of the families that we assist are in desperate need of decent, affordable housing, such as the project that the developers propose with this Unit. In the City —a majority renter city, significant need exists to address and provide housing opportunities for all economic segments of the community. Families in the City use the majority of their incomes (over 50%) to pay for housing costs. This is unsustainable and it has led to actual and economic homelessness. As residents struggle to find available and affordable housing in the City, rents have continually increased. We have heard stories of landlords demanding that tenants pay rents that are in excess of 50-80%, or face eviction and almost certain homelessness or relocation out of the City, while this Council has remained silent to requests for a moratorium on rent increases or just cause eviction ordinance protections. As of April 2019, the average rent for a one -bedroom apartment in the City is $1,938 per month, while the average rent for a two -bedroom apartment is $2,582 per month.2 This Unit proposes to help ameliorate the crisis by adding 552 units to the housing stock in the City. Accordingly, the City Council should embrace this Unit and not try to find ways to crush it, as it will bring much needed affordable multi -family housing to the residents of the City. Pacific Companies and Jamboree Housing Corporation Are Eligible for a Density Bonus Exception The Density Bonus is a state mandate. An applicant who meets the requirements of the state law is entitled to receive the density bonus and other benefits as a matter of right. (See Gov. Code §65195, et seq.) A jurisdiction is required to grant the concession or incentive requested by the applicant unless the jurisdiction makes a written finding based on substantial evidence of a specific, adverse impact upon public health and safety, or on historic resources. (Gov. Code §65195(d)(1)(B).) The Staff Report for the June 4, 2018 Planning Commission hearing declared that there are no historic resources in the immediate vicinity that this project would affect and the project's designs and operations, will not be detrimental to the public health or safety. Moreover, none of the councilmembers during the City Council meeting of May 7, expressed concern with the project's impact on public health, public safety, or nearby historic resources. Because the Unit is a 100% affordable development and the City Council has failed to produce the required written findings based on substantial evidence of a specific, adverse impact of the Unit on public health, public safety, or historic resources, the City Council should grant the parking concession requested by the developers as a matter of right. z See www.rentjungle.com/average-rent-in-santa-ana-rent-trends/ (Last visited on June 19, 2019). 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Pax (714) 541-5157 Letter of Support re Item 60A Request for Approval of a Density Bonus Agreement to Allow a 552 Unit Affordable Rental Project at 2110, 2114, and 2020 East First Street July 16, 2019 p. 3 Denying This Project Would Constitute Intentional Housing Discrimination A. Denial of the 552 Unit Affordable Rental Proiect Constitutes Intentional Land Use Discrimination against low-income people under Government Code section 65008 If the City denies the Unit, it would constitute intentional land use discrimination against low- income persons under Government Code section 65008. Section 65008 generally prohibits and declares as null and void various forms of discrimination against housing by cities, counties and local agencies, including discrimination based upon the method of financing of any residential development, or the intended occupancy of any residential development of persons or families of low, moderate or middle income. This prohibition applies to any power exercised under the authority of Title 7. §§ 65008(a)(1) and (2). Additionally, Section 65008 prohibits local government agencies, including cities and counties from taking actions, including in the administration of ordinances, or approval of developments, which prohibit or discriminate against any residential development or shelter because the development is intended for occupancy by "person[s] or families of very low, low, moderate, or middle income." (Gov. Code §65008(b)(1) (Q.) B. Denial of the 552 Unit Affordable Rental Project Would Violate Santa Ana's Duty to Affirmatively Further Fair Housing Additionally, should the City Council deny the developers' request for a permit to construct the Unit, it would constitute fair housing discrimination, as it violates the City of Santa Ana's duty to affirmatively further fair housing under federal and state law.' Affirmatively furthering fair housing requires the City to take meaningful action that, taken together, addresses significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws. The federal Fair Housing Act prohibits practices that "actually or predictably result[] in a disparate impact on a group of persons or creates, increases, reinforces, or perpetuates segregated housing patterns."4 Further, California Fair Employment and Housing Act makes it "unlawful ... to discriminate through public or private land use practices, decisions, and authorizations `that have the effect, regardless of intent, of unlawfully discriminating on the basis of [a] protected class."i5 Accordingly, denying the developers the opportunity to build this needed Unit will continue to reduce the amount of housing that would otherwise be available for lower -income households in the City, and therefore could be construed as having disparate negative impact on certain racial and ethnic groups. 42 U.S.C. 3608 and Executive Order 12892 4 Dept. of Housing and Urban Development Regs, Implementation of the Fair Housing Act's Discriminatory Effects Standard, 24 C.F.R. § 100.500(a), 78 Fed. Reg. 11482 (Feb. 15, 2013). 'Gov. Code § 12955.8, subd. (b). 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 Letter of Support re Item 60A Request for Approval of a Density Bonus Agreement to Allow a 552 Unit Affordable Rental Project at 2110, 2114, and 2020 East First Street July 16, 2019 p. 4 Further, the denial of the Unit violates recently enacted state legislation that codifies the directive imposed by the Fair Housing Act on jurisdictions to affirmatively further fair housing. (Gov. Code §65583) The City's current Housing Element underscores the need of the City to ensure its legal compliance with the requirement to further fair housing opportunity. In the housing element, the city notes that 58% of its renters pay more than 30% of their income on rent.6 These conditions ...lead to a number of hardships for the households and their families, including insufficient income to afford other necessities, undue burden on families, and accelerated use and wear on housing.' As such, the city has identified a deft in housing for extremely low, very low, and low-income households that the law requires it to address. Conclusion There is a scarcity of quality affordable housing units in the City. The City's recent Housing Element noted there is a scarcity of affordable housing units in the City: "[H]ousing affordability is a critical issue for many households. The lack of affordable housing can create undesirable situations, including overpayment and overcrowding."8 Five hundred and fifty-two units of affordable housing could lessen the issues of overpayment and overcrowding by increasing the supply of affordable housing for a community in desperate need of it. Further, as set forth in the many staff reports associated with analysis of the Unit, approval of this item supports the City's efforts to meet General Plan Goal Nos. 3; and 5, and Objective No. 3. The City's residents desperately need help with affordable housing and addition to the aged multifamily housing stock in the City, and they need it now. The Council should approve this Unit now. Sincerely, /s/ Ugochi Anaebere-Nicholson Directing Attorney, Housing and Homelessness Prevention Unit e Santa Ana Housing Element (2014-2021), p. 20. Ibid. a Id. at p. 19. 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 Orozco, Norma From: Linda T < Sent: Tuesday, July 16, 2019 3:42 PM To: eComment Cc: Cesar C; Isuri Kennedycommission Subject: RE: Comments on Proposed East First Street Development Attachments: Ltr_East First Street_19.7.16.pdf Dear City of Santa Ana, Please find attached the Kennedy Commission's comment letter regarding tonight's City Council Agenda Item #60: Approve Density Bonus Agreement to Allow a 552 Unit Affordable Rental Project at 2110, 2114 and 2020 East First Street. Please reply to confirm receipt of this email. Thank you. Sincerely, Linda 2 July 16, 2019 www.kennedycommission.org 17701 Cowan Ave., Suite 200 Irvine, CA 92614 949 250 0909 Mayor Miguel Pulido and Council Members City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 RE: Support for Density Bonus Agreement for Proposed Affordable Rental Development at 2110, 2114 and 2020 East First Street Dear Mayor Pulido and Council Members The Kennedy Commission (the Commission) is a broad based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $20,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering and working with Orange County jurisdictions to create effective housing and land -use policies that has led to the new construction of homes affordable to lower income working families. The Commission would like to commend the City's leadership and support in encouraging and facilitating the development of homes affordable to lower income working families. As the City continues its great efforts in addressing the City's workforce affordable housing needs, the Commission recommends the City to support the Density Bonus Agreement on the proposed 2110, 2114, and 2020 East First Street development. The proposed development will provide 552 much -needed affordable homes for very low- and low-income working families and households in the City. The development of these quality homes will not only provide safer and healthier homes but it will also significantly improve the quality of life for many lower income households in the City. Ranked among the top ten least affordable metropolitan areas in the country', Orange County is suffering from an affordable housing crisis. A resident must earn at least $39.17 per hour to afford a two -bedroom apartment at a fair market rent of $2,037 a month.' Orange County renters have also paid an average of $355 more a month and rents are projected to continually rise.3 During 2000 to 2015, Orange County's inflation -adjusted median rent increased by 28 percent while the median renter income decreased by 9 percent.4 The impact of this crisis is dire. Many Orange County renters are rent burdened where they spend more than 30% of their income towards housing costs. Struggling to make ends meet, many households take on more jobs or live in overcrowded substandard households. With high rents, low vacancy rates and an increasing number of residents needing affordable homes, the supply of affordable homes being built for lower income households has also not kept up with the demand. 2019 Out of Reach, National Low Income Housing Coalition, p. 15, June 2019. 3 2019 Out of Reach, National Low Income Housing Coalition, p. 39, June 2019. 3 Southern Californians Scrimp to Get By As Average Rents flit $1,900, Orange County Register, February 15, 2018. 4 California Rents Have Risen to Some of the Nation's Highest. Here's Flow that Impacts Residents, Orange County Register, February 15, 2018. An additional 111,996 affordable rental homes are needed to address Orange County's housing needs for lower income renters.' While Orange County is experiencing a shortage of quality housing opportunities at all levels of affordability, the barriers to finding affordable rental homes are greatest for the County's working poor families earning minimum wages and for households on fixed incomes. Categorized as extremely low-income for a household of four, these households earn less than $35,600 a year, which is 30 percent of Orange County's Area Median Income of $97,900,6 Many factors contributing to the affordable housing crisis include: limited affordable housing options, high cost of living and a growing low -wage job sector in Orange County. These issues are all placing a huge burden on the quality of life for very low- and extremely low-income households. The Commission looks forward to partnering with the City to increase the development of affordable homes for lower income households in the City. Please keep us informed of any updates and meetings regarding the proposed 2110, 2114 and 2020 East First Street Apartments. If you have any questions, please free to contact me at (949) 250-0909 or cesarc@lcennedycommission.org. Sincerely, Cesar Covamlbias Executive Director 5 Orange County's Housing Emergency Update, California Housing Partnership, p. 1, May 2019. 6 State Income Limits for 2019, Department of Housing and Community Development, May 6, 2019.