HomeMy WebLinkAboutPRESENTATION - 75BMODIFICATIONS TO THE HOUSING OPPORTUNITY ORDINANCE Application: ZOA No. 2020-03Description: •Review of the existing Housing Opportunity Ordinance•Updates to the ordinance to provide a catalyst for construction and future investments
BACKGROUND•Existing ordinance required review of ordinance by end of 2018 •Staff provided Council update in late 2018 and initiated comprehensive review of ordinance•Council ad-hoc committee formed in mid-2019 to work with staff on modifications•New ad-hoc committee formed in early 2020 to finalize changes to ordinance
ANALYSIS OF PROPOSED CHANGESMajor Changes: •Updated definitions•Applicability only to projects with 20 or more units and requesting increase in general plan density•Address adaptive reuse projects to be consistent with an Adaptive Reuse Ordinance amendment approved in 2015•Modified in-lieu fee option:•Reduces in-lieu fee for applicable projects to $5.00 per habitable square foot•Provides six-month window for “Entitled” projects to pay reduced fee of $10 per habitable square foot due to current market conditions
ANALYSIS OF PROPOSED CHANGES (cont.)Major Changes: •Incentives (3) for for-sale residential projects proposing on-siteModerate Income Units•Require “Community Benefit” contributions for projects•Eliminate “Double Density” option from incentives menu•Clarify use of in-lieu fees collected as specified in the City’s “Affordable Housing Funds Policies and Procedures”
PLANNING COMMISSION ACTIONVoted 7:0 to recommend approval and for the City Council to consider the following: •Incorporate enforceable skilled labor requirements by incorporating “shall” and “will” and evaluate the financial impacts of requiring skilled labors on a private development project. •Specify a nexus between code enforcement funding to activities that relate, enhance, and promote affordable housing •Set a new review period for the Ordinance.•Maintain original language requiring the full payment of fee at first building permit issuance.•Extend end date of April 1, 2021 to October 1, 2021 for Entitled Residential Project.•Consider a fee reduction to $10 per square foot for all projects (entitled and future).•Consider reducing fee to $5 per square foot for entitled projects and $10 per square foot for future projects.•Modify recitals section of the ordinance to add language that emphasizes economic development and housing construction as a catalyst, the use of skilled & trained workforce with a priority for Santa Ana residents and veterans, and local apprenticeships
AMENDMENT TO AFFORDABLE HOUSING FUNDS POLICIES AND PROCEDURESMajor Changes Corresponding to the New Ordinance:•Added activity for existing rental units to be acquired, substantially rehabilitated and then income and affordability covenants recorded on the units for rental or ownership.•Added activity for purchase and rehabilitation of homes with code-related issues for sale to low- and moderate-income buyers.•Added activity to pay for one-time programs and activities for code enforcement, quality of life and general health and safety issues that directly relate, enhance, and promote affordable housing projects and activities.•Deleted activity for predevelopment loans.•Deleted activity for cooperative housing programs.
RECOMMENDATION•Consider changes proposed by the Planning Commission•Approve ZOA No. 2020-03 as recommended by the Ad Hoc Committee