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22 – 23 September 2021 | The Line Hotel, Los Angeles, USA
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2
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1. The course fee is inclusive of the event proceedings,
materials, refreshment and lunch.
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3
2. Upon receipt of the complete registration form, invoice will
be issued. Trueventus request that all payments be made
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within 5 working days of the invoice being issued. Full
payment must be received prior to the event. Only delegates
that have made full payment will be admitted to event.
Clients are responsible for their own banking fees and
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4
banking fees will not be absorbed into the booking price.
3. Substitution & cancellations policy. Should the registered
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delegate is unable to attend, a substitute delegate is
welcome at no extra charge. Written notifications of all
substitutions is required 5 working days prior to the event.
5 ObnfKpc!Ujumf
Trueventus contracts carry 100% full liability upon receipt of
registration. Non payment does not constitute cancellation.
A 100% of cancellation fee will be charged under the terms
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outlined below: Due to limited event seats, Trueventus
agrees to book and confirm the seat for the client upon
issuance of invoice. Upon signing of this contract, client
agrees that in case of dispute or cancellation of this contract
6
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Trueventus will not be for total contract value. If a client does
not attend the event without written notification at least 5
working days prior to the event date, he/she will deemed as
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no show. A no show at the event still constitutes that the
client will have to pay the invoice amount that was issued to
them. Trueventus does not provide refunds for cancellations.
By signing this contract the client also agrees that if they
cancel that Trueventus reserves the right to pursue monies
owned via the use of local debt collection agency were the
client is situated. Furthermore the client will be held liable
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1626 Beverly Boulevard
Los Angeles / Orange Counties
Building and Construction
Los Angeles, CA 90026-784
Trades Council
Phone (213) 483-4222
RON MILLER
Affiliated with the Building & Construction Trades Dept., AFL-CIO
July 26, 2021
Santa Ana City Council
20 Civic Center Plaza
Santa Ana, CA 92701
City Council Members,
Orange Counties Building and Construction Trades represent more than 140,000 hard working
men and women covering 14 Trades and 49 Labor Organizations. Within the jurisdiction of
Building Trades Council, we have approximately 26 apprenticeship training centers that operate
day in and day out preparing the future construction workforce in the area.
Our request to continue to urge the City Council to strengthen the Labor component of the
Housing Opportunity Ordinance, still stands from when it was amended last year. We recognize
the importance of incentivizing residential construction but it must address wages, benefits and
apprenticeship training as well. The current Ordinance has verbiage that is only aspirational in
nature and given the lack of training offered by the housing sector and the income disparities that
exist not only in Santa Ana but across the Nation, we feel that the labor language should be more
of a requirement and enforceable. Instead of stating that the application of a Skilled and Trained
Workforce be aspirational we believe that it should be made a requirement. The State Public
Contract Code section 2603 should also be added to the referenced Code in the Ordinance.
Furthermore, the Ordinance should reference proof that there is a good faith effort mechanism to
do true local/veteran hire.
In the State and across the Nation, construction is a separated into two subsectors with strikingly
different working conditions: one is a high wage and generally unionized nonresidential
construction sector. The other subsector is a low-wage, often exploitative residential construction
sector. This has resulted in less training being offered to workers while increasing unsafe
working conditions. Construction has the third highest occupational fatality rate of all industrial
sectors.
practices, applying worker misclassification and cash payments made under the table, earning
just 52 cents for every dollar earned by workers with employee status. It is estimated that 19% of
California Latino construction workers that were independent contractors were misclassified and
only make about 70 cents on the dollar as white workers with the same skills. They are
significantly more likely to be uninsured and ironically, struggling with housing costs. A study
showed that 70% or more workers in the LA residential construction sector experienced non-
payment of overtime and wage theft.
Њ
Due to misclassified occupations in the State, construction workers earned a median wage of just
$14.98 in 2017. Overall
one-third of these were misclassified and two-thirds were being paid under the table. Latinos
dominate the residential sector, comprising 2/3 of the workforce and a disproportionate share of the
workers in residential construction are undocumented immigrants13% nationally in 2014 who
may fear reprisals for speaking up for their rights.
In California, 48% of construction working families are significantly more likely to participate in
safety net programs compared to the 36% of all other working families. Construction working
families participate at higher rates in each of the five programs individually as well. This translates as
a large subsidy paid for by the taxpayers of the State.
Given that direct construction labor comprises only 15% of project development costs and
construction worker payroll growth has lagged industry price & profit growth, the housing industry
has room to absorb wage increases for the men and women building the housing.
Providing Labor Standards through Apprenticeship requirements such as Skilled and Trained
Workforce and Prevailing Wages
productive capacity. In collaboration with our signatory Employers we invest $200 Million a year
into our Joint Labor Management Apprenticeships. It is why we graduate well over 90% of the
Journey level workers in construction among the State Certified Apprenticeships.
We have also invested in Santa Ana via our Apprenticeship Readiness Program. We have partnered
with Rancho Santiago Community College District at Santa Ana College Continuing Adult
Multi Craft Core Curriculum Course (MC3). We have
placed many students that have successfully completed the course into our Apprenticeship Training
Centers offering them a pathway to the middle class in careers in construction. We have also
partnered with Santa Ana Unified School District offering the MC3 at Century High School. This
Because housing affordability amongst blue collar construction workers is also declining
particularly amongst workers of color in high cost metropolitan and coastal regions incorporating
apprenticeship standards into a housing development streamlining package is a reasonable and cost-
effective approach for boosting overall supply while helping to close the affordability gap for
hundreds of thousands of California families.
So again, we urge that you work with the Los Angeles and Orange Counties Building and
Construction Trades Council, its affiliates and associated construction trades to strengthen the labor
language in the Housing Opportunity Ordinance, as it was originally proposed unanimously by the
Planning Commission last year.
Respectfully,
Ron Miller Ernesto Medrano
Executive Secretary Council Representative
RM/EM/:ag.opeiu#537/afl-cio
Ћ
Ɏ
th
July 26, 2021
PRESIDENT
SUNTI KUMJIM
Mayor Vicente Sarmiento
MBK RENTAL LIVING
Santa Ana City Council
VICE PRESIDENT
20 Civic Center Plaza
ERIC NELSON
Santa Ana, CA 92701
TRUMARK HOMES
TREASURER
Re: Item 1. Housing Opportunity Ordinance Work Study Session
BROOKE DOI
SHEA HOMES
Dear Mayor Sarmiento and Honorable Council Members:
SECRETARY
NICOLE MURRAY
TAYLOR MORRISON
The housing crisis in California grows more serious with each passing day.
IMMEDIATE PAST PRESIDENT
RICK WOOD
Studies show that the State needs over 180,000 new units each year and at best
we are producing 80,000.
TRADE CONTRACTOR V.P.
ALAN BOUDREAU
BOUDREAU PIPELINE
CORPORATION
Just over a year ago, this Council made the prudent decision to amend the
Housing Opportunity Ordinance (HOO) in order to encourage residential
ASSOCIATE VICE PRESIDENT
development. That amendment responded to a simple fact: during the 2016
MARK HIMMELSTEIN
NEWMEYER & DILLION, LLP
2019 period immediately following the 2015 HOO fee increase, 2,900 units were
approved by the City, yet not one permit was pulled to trigger paying the higher
MEMBER-AT-LARGE
fee.
PETER VANEK
INTEGRAL COMMUNITIES
One election and one year later, here we are again having the same discussion
MEMBER-AT-LARGE
with the same facts. A $15.00/sf in-lieu fee still renders new residential
SEAN MATSLER
COX CASTLE & NICHOLSON, LLP
development financially infeasible.
EXECUTIVE OFFICER
On Monday, July 26th, this Council will take stakeholder input on a further
STEVE LA MOTTE
amendment to the HOO that would largely undo the progress made just one year
ago.
City back where it was between 2016-2019: projects will not proceed, jobs and
tax revenue will not be created, and the City will remain stuck in time. The only
technical data supporting the pending amendment is a June 28, 2021 memo from
consultant, Keyser Marston Associates, Inc. (KMA).
BIA members experienced in the development of both market rate and affordable housing have
closely reviewed the KThe conclusion
of this review is clear: KMA vastly overstates the prototypical
supportable in-lieu fee. BIAOC analysis supporting this conclusion is attached hereto
as Attachment A.
Given all this, BIA respectfully requests that this Council direct KMA to revisit its assumptions
based on the data set forth in Attachment A. Until that is done, this Council should not proceed
with any changes to the current HOO.
Thank you for your thoughtful consideration.
Ɏ
Respectfully,
Steven C. LaMotte
Executive Officer
ATTACHMENT A
Santa Ana Housing Opportunity Ordinance
Review of KMA Analysis
Conclusion:
Residential Development that overstate the prototypical
supportable in-lieu fee, including:
1. Acquisition / land costs are significantly understated.
Ώ KMA assumed $43,560 per Unit or $60 per Land SF
Ώ BIA that higher land costs of $65,000 to $100,000 per
Unit are more realistic.
Ώ well as the
supportable in-lieu fee.
2. Construction costs are significantly understated.
Ώ One BIA member is currently developing three affordable housing rental projects with
significantly higher construction costs -rate prototype projects.
o Avg. construction costs: $317/gsf$43/gsf HIGHER-rate prototype
project
o Avg. TDC: $521/gsf $120/gsf HIGHER -rate prototype project
Ώ New ground-up market-rate projects will require much higher hard costs when compared to
example affordable projects in order to achieve the rent premiums garnered by 4-star (and
o d costs are significantly understated.
Ώ Furthermore, due to the spike in construction costs, the cost estimates that
receiving today are significantly higher than those received from contractors 6-12 months ago.
3. Parking costs are potentially/likely understated.
Ώ
parking code.
Ώ
surface, below-grade.
Ώ Givconservative parking requirements, parking is a significant driver of hard costs.
Ώ
.
4. Efficiency factor is overstated
Ώ KMA assumed an efficiency factor (NRSF / Gross Building Area) of 85%, which is too high and
not realistically achievable.
Ώ An efficiency factor of 75-80% is more appropriate.
Ώ s well as the
supportable in-lieu fee.
5. Return metrics are not fair and reasonable.
Ώ 4.6% - this does not
.
Ώ Yield on cost of at least 5.25% represents a more reasonable market rate of return.
Ώ Driving to a below-market rate of return inflates the supportable in-lieu fee.
6. Lower market--lieu fees.
Ώ Santa Ana historically has some of the lowest rents in the County and is less capable of
supporting an in-lieu fee when compared to Irvine, Newport Beach, etc.
o Market rate developers incorporate the costs of such fees into their capitalized budgets.
supportable by the rents in the area.
o Construction costs, design costs, insurance, marketing and financing costs do not change
by city. These costs remain the same whether you are building in Santa Ana, Irvine or
Newport Beach.
o Consequently, cities with higher rents are able to afford higher in-lieu fees. Cities with
lower rents are able to afford less.
o Historically, Santa Ana has had the lowest rents in the County. Santa Ana should have
the lowest in-
-rate projects vs. three BIA
member affordable projects that are in predevelopment / under construction:
Development:
Ώ The City is striving to prioritize home ownership, as stated in its annual RFP for
Affordable Housing Development.
lower
direct/construction costs relative to its rental development analysis, on a per GSF basis.
Ώ
Ώ $274/gsf
Ώ BIA member
Ώ Conversely, ownership/condo development should reflect higher construction costs vs.
rental.
Ώ When compared to BIA member
costs are significantly understated.
developer profit of 8.5% - this
does not represent fair and reasonable profit.
Ώ Driving to below-market profit metrics also overstates the supportable in-lieu fee.
Ώ Developer profit of 15-20% represents more reasonable profit metrics.
Araiza, Fatima
From:Dave Elliott <delliott@santaanachamber.com>
Sent:Monday, July 26, 2021 11:39 AM
To:eComment
Subject:Special Session on Affordable Housing
Dave Elliott, President/CEO
I plan to participate via Zoom but in case not heard just want to reiterate my position to not raise the WOO
from $5.00 to $15.00 at this time. Coming out of a devastating Pandemic to our community including our
businesses and residents it is not prudent at this time to impose additional regulations, increased taxes and
fees. We need additional affordable housing but this can discourage future residential development from our
city. I believe no project while the $15 was in place and 2 projects since September 2020 at the $5.00 fee.
I think to at least delay this for 1 year would be something to look at or a compromise in the fees increased
over time.
I do not think we need to discourage business at this point. We may want more housing and affordable but
we cannot make developers come if they cannot make it work.
thanks for consideration
Dave E
1
July 26, 2021
www.kennedycommission.org
17701 Cowan Ave., Suite 200
Mayor Sarmiento and Council Members
Irvine, CA 92614
City of Santa Ana
20 Civic Center Plaza
949 250 0909
P.O. Bo 1988, M31
Santa Ana, CA 92701
Re: Support: Strengthen Housing Opportunity Ordinance and Affordable Housing Funds
Policies and Procedures
Dear Mayor Sarmiento and City Councilmembers,
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 $27,000 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.
Our letter is supporting the proposed amendments to the Housing Opportunity Ordinance
and Affordable Housing Funds Policies. Many working families in Santa Ana continue to be
impacted by the rising cost of housing and the scarce housing available at rents they can afford.
In addition, many continue to face economic uncertainty because of the ongoing COVID-19
pandemic and loss of jobs. It is crucial that the City strengthen the Housing Opportunity
Ordinance (HOO) to ensure that housing opportunities are created for all residents in Santa Ana.
Increasing affordable housing development opportunities along with market rate housing will be
crucial in creating new affordable housing that residents in Santa Ana can truly afford. The
creation of housing at all income levels is vital to our recovery and stability of the majority of
Santa Ana residents that are struggling with housing availability and cost. Creating new
affordable housing needs to continue to be a top housing priority in Santa Ana.
The City of Santa Ana is a renter majority city and despite the City’s progress towards meeting
its Regional Housing Needs Assessment (RHNA) allocation for very low and income housing
there continues to be a great need for housing that is affordable to its residents. The current
pandemic has increased the economic and housing pressures on low-income families in Santa
Ana. As incomes are decreasing and jobs are being lost, many low-income families are
struggling to remain housed. This is especially true for the majority of Santa Ana’s low-income
households that are suffering with the impacts of housing cost and economic uncertainty. As an
example, according to the City’s local data, 70 percent of Santa Ana renters are low and very
low-income renters.
1
City of Santa Ana General Plan Housing Element 2014-2021, p. 14, January 2014.
2
City of Santa Ana General Plan Housing Element 2014 – 2021 page 11
3
City of Santa Ana General Plan Housing Element 2014 – 2021 page 20
80% of renters in Santa Ana fall into the moderate, low and very low-income category and 84
percent of residents hold low-income occupations that pay less than $53,500 per year. Santa
Ana’s households are predominantly families comprising 81% of households. These households
are also rent burdened and live-in overcrowded conditions.
While the city has seen increased production of affordable housing there has been a larger
increase of above moderate housing with the city’s 3,274 RHNA above moderate allocation
being exceeded by 3,638% per the City’s RHNA progress reports submitted to the state. With
average rents of $2000 - $4000, none of these above market rent units are affordable to most of
Santa Ana’s working families.
The need will be much greater as the COVID-19 pandemic has exacerbated needs that were
already existing in our communities. Housing costs in Santa Ana have been out of reach and will
continue to be out of reach in this current economic climate. Households in Santa Ana must earn
$44.83 an hour to afford two-bedroom housing. The proposed amendments further incentivize
housing units with market rate rents and are not affordable to the majority of the City’s
residents.
As such, we support the following amendments to the Housing Opportunity Ordinance and
Affordable Housing Funds Policies and Procedures:
Housing Opportunity Ordinance – Options to satisfy Inclusionary requirements
Proposed amendment to increase the in-lieu fee from $5 to $15 sq ft
The City should ensure that affordable housing is built on housing developments or allow
for developers to pay their fair share to allow the City to meet Santa Ana residents to
housing needs at lower incomes. The City must continue to prioritize a 15% affordable
housing requirement focused on extremely low, very low and low. The City needs to
update the in-lieu fee to $15 to be in line with a fee that is fair and allows the city to
create an in-lieu fund that will help build affordable housing for its residents. The
proposed fee is in line with the regions in lieu fees and it has been recommended based
on a feasibility study of Santa Ana's housing and real estate market. This funding will
allow the city to secure additional state and federal funding sources to create much
needed affordable housing. The City risks losing state and federal housing matching
funds by not having the in-lieu fee at this level, at a time we face economic and housing
instability because of the pandemic.
The HOO should apply to all city-initiated Land Use changes, rezoning.
The HOO should apply to all residential developments in the City. At a minimum the
HOO affordable housing requirements should apply to all residential developments that
are asking for zone changes, upzonings or other development incentives. In addition, the
HOO should apply to all developments taking advantage of city-initiated land use and
zoning changes, specific plans and general plan updates and amendments. All these land
use changes create more profit and incentives for market rate developers. At the same
1
City of Santa Ana General Plan Housing Element 2014-2021, p. 14, January 2014.
2
City of Santa Ana General Plan Housing Element 2014 – 2021 page 11
3
City of Santa Ana General Plan Housing Element 2014 – 2021 page 20
time many of these market developments are not affordable to the majority of Santa
Ana's residents. In exchange for these development incentives, new affordable housing
for Santa Ana residents needs to be
created.
HOO- Inclusionary Housing Fund
The city needs to make new construction of affordable housing a priority when using the
housing fund to increase availability and housing options for Santa Ana residents.
Diversion of these funds to other programs would not be directly related to increasing and
improving the supply of affordable housing. Since its inception the HOO has been clear
in its language and purpose in that it states, “Monies deposited into the inclusionary
housing fund must be used to increase and improve the supply of housing affordable to
moderate, low, very low, and extremely low-income housings in the city…” (Sec. 41-
1909. (a)(1)).
We urge you to support the proposed changes to the Housing Opportunity Ordinance. The
proposed amendments will help the city increase affordable housing options for residents and
help the city meet equitable housing production goals.
Sincerely,
Cesar Covarrubias
Executive Director
1
City of Santa Ana General Plan Housing Element 2014-2021, p. 14, January 2014.
2
City of Santa Ana General Plan Housing Element 2014 – 2021 page 11
3
City of Santa Ana General Plan Housing Element 2014 – 2021 page 20
Araiza, Fatima
From:Julie Paule <julie@pauleconsulting.com>
Sent:Monday, July 26, 2021 2:32 PM
To:eComment; Gomez, Daisy
Subject:E-comment for Housing Opportunity Ordinance Work Study Session
Council Members-
WMA is a member of the coalition of business and housing providers opposed to increasing Santa Ana’s Housing Opportunity
Ordinance In-Lieu Fee.
Our issues intersected with BIA’s opposition to increasing fees on new housing units. When landlords must compete for
tenants, rents decrease. When landlords have ample supply of renters in need of housing, rents increase. Currently there just are
not enough housing units to meet the demand and the rent levels reflect this. The city should be laser focused on removing
every barrier to housing production to reap the rewards more housing provides its community—more affordable market prices,
mobility in housing type and lower rents overall.
Thank you for this important discussion and we will continue to be involved.
Julie Paule, Regional Representative
WMA
40335 Winchester Rd. #E-165
Temecula, CA 92591
(951) 704-2427
julie@pauleconsulting.com
1
Araiza, Fatima
From:Nathaniel Greensides <mynci90@gmail.com>
Sent:Monday, July 26, 2021 3:01 PM
To:eComment
Subject:Special Meeting eComment
Dear Council Members,
I am in support of the item as presented and request only that it be made clear that neither any proposed rent
stabilization, nor any tenant protections affects new development and thus the HOO.
Best regards,
Nathaniel Greensides
Ward 1 Resident
1