HomeMy WebLinkAboutPresentation - #292021 Affordable Housing Opportunity
& Creation Ordinance
NOVEMBER 16, 2021
1
Proposed Action & Recommendation
Zoning Ordinance Amendment No. 2021-03 repealing and reenacting Article XVIII.I. of Chapter 41 of the Santa Ana Municipal Code regarding the Housing Opportunity Ordinance
Consider the recommendations made by the Planning Commission and take one of the following options:
o Approve first reading of the Ordinance as presented;
o Approve first reading of the Ordinance incorporating the changes recommended by the Planning Commission; or
o Approve first reading of the Ordinance with the incorporation of changes desired by the City Council
2CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
.
Background
o November 28, 2011 –Ordinance No. NS-2825 establishing the HOO
to implement the City’s Housing Element Goal of providing
affordable housing within the City
o September 1, 2015 –Ordinance No. NS-2881 amending HOO to
make the inclusionary housing requirements predictable for housing
developers and incentivize the production of affordable housing by
addressing applicability provisions, options to satisfy inclusionary
requirements, and calculation of the in-lieu housing fee
o September 1, 2020 –Ordinance No. NS-2994 amending the HOO
responding to impacts of the COVID-19 pandemic on the
development and construction of housing in the City by lowering the
in-lieu fee option amount from $15 to $5 per square foot, adjusting
the trigger of the ordinance to apply to general plan amendments
only, and expanding the eligible uses of in-lieu fees collected by the
City
3CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
Background
o March 2, 2021 –City Council established Ad Hoc Committee for
Housing to address various housing issues including the HOO
o Ad Hoc recommendations were presented, discussed, and
commented on by the City Council at their regular meetings of
July 6th , July 26th, and September 7th of 2021
o City Council also provided a forum to receive input from key
stakeholders and members of the public
o Directed staff to reach out to the developers and business &
labor organizations
o October 5, 2021 –City Council directed to staff proceed with final
drafting of the amendments to the HOO and to proceed with the
adoption process
o October 25, 2021 –Planning Commission Public Hearing
4CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
City Council Desired Changes
5CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
Policy Enhancements & Changes
•Revert to the triggers and in-lieu fee amount of the pre-September
2020 Ordinance
•Incentivize projects to incorporate skilled & trained workforce
•Incentivize local hire
•Prioritize production of housing for large families
•Prioritize down payment assistance
•Address regulatory applicability & vesting
•Incentivize onsite construction
•Extend period for payment of the in-lieu fee
Key Amendments Presented to Planning
Commission Addressing Desired Changes
6CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
Code Section Summary of Proposed Changes Accomplishing City Council Desired Changes
Title Updates title of the Ordinance to 2021 AFFORDABLE HOUSING OPPORTUNITY & CREATION
ORDINANCE
41-1900 Expands scope to also require affordable housing for zoning classification changes exceeding
permitted densities
41-1901 Updates and deletes outdated definitions
41-1902 Establishes triggers and requirements reflective of the pre-2020 HOO & establishes project
vesting trigger
41-1903 Clarifies exempt projects
41-1904 Revises the in-lieu fee and changes the timing of payment to make the larger fee more
reasonable and to help reduce carrying costs during construction
41-1904 (c)(1)(i)
& (ii)
Incorporates a sliding scale for the reduction of the in-lieu fee to $5 or $10 depending on the
level of utilization of a skilled and trained workforce and local hire
41-1909 Prioritizes spending for large families,down payment programs, and additional one-time
programs addressing housing security, eviction prevention, and housing legal assistance for
city residents
41-1910 Provides for periodic review at the option of the City Council
Planning Commission
The Commission voted 4:3:0 (Ayes:Alderete, Pham, Ramos, Woo;
Noes:Calderon, McLoughlin, Morrissey) to forward the draft
Ordinance with the following recommendations:
1.Increase the minimum inclusionary percentage for all income
categories
2.Increase the minimum starting dollar amount in the proposed
in-lieu fee sliding scale
3.Permit projects that have been approved (entitled) by the City
prior to the adoption date of the proposed Ordinance to vest
the existing regulations and provisions of the Housing
Opportunity Ordinance under Ordinance No. NS-2994
7CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
Draft Provision:
◦41-1902. Applicability: Applies to projects that have not been issued a building permit or have not paid their
HOO in-lieu fee as of November 17, 2021
◦Planning Commission recommends vesting of entitled projects instead. This would allow currently entitled
development projects to vest the regulations and provisions of the HOO in effect at the time when the
project was proposed and approved by the City. It will also help to maintain the financial assumptions and
constructability of the project as approved.
◦To be consistent with the above changes, Section 41-1903 (Exempt Projects) should be clarified to also
include a provision addressing projects to be vested under Ordinance No. NS-2994 and to include a vesting
project list (Exhibit 5 to report).
◦41-1902. Inclusionary Requirements
◦Planning Commission recommended increasing each income category by 5%. Prior to considering
increasing the inclusionary percentage, additional analysis is recommended to evaluate the impacts of
these changes to the constructability of a project.
8CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
Summary of Key Amendments Recommended
by Planning Commission with Modifications
As drafted PC Recommended Change
15%Low Income
10% Very Low Income
5% Extremely Low Income
10% Blended Income (5:3:2)
20%
15%
10%
15%
Draft Provision:
◦41-1904. In Lieu Fee: Draft Ordinance revises the in-lieu fee and changes the timing of payment as follows:
◦increase the in-lieu fee from $5 per habitable square foot to establish a sliding scale with a $6 -$15 range per
habitable square foot.
◦Prior to considering increasing the bottom step of the sliding scale and reducing the differential between each step
in the draft Ordinance, additional analysis is recommended to evaluate the constructability of a project in the 5-19
unit categories. It is challenging for small infill projects to construct affordable units onsite. If the in-lieu fee
amount is not aligned with the market gap, these smaller projects may not be feasible.
◦41-1904. Timing of payment. The draft extends the timing of payment from issuance of the building permit to issuance
of the certificate of occupancy, allowing a developer the option to pay after the project is developed in order to make the
larger fee more reasonable and to help reduce carrying costs during construction.
◦PC discussed the need to provide clarity on the timing of payment when the City approves a phased development
project. For consistency, timing payment should be proportional to each phase consistent with the timing of
construction of affordable units which is also proportional with each phase (Section 41-1906(b)) of a project. This
change would meet the intent of reducing the carrying cost during the project construction phase.
◦Planning Commission recommended increasing each income category by 5% Prior to considering
9CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
Units Fee Per Square Foot of
Habitable Area PC Recommended Change
5 –9 $6.00 $10.00
10 –14 $9.00 $11.66
15 –19 $12.00 $13.32
20 or more $15.00 $15.00
Summary of Key Amendments Recommended
by Planning Commission with Modifications
Summary of Key Amendments Recommended
by Planning Commission as Originally Drafted
1.Title: Update the title of the Ordinance: 2021 Affordable Housing
Opportunity & Creation Ordinance
2.41-1900 Purpose: Expands the scope of the to also require affordable
housing for zoning classification changes exceeding permitted densities in
addition to GPA.
3.41-1901Definition: Deletes “Entitled Residential Project” and “Prior
Project” definition and modifies various definitions to include a new
category for extremely low-income.
4.41-1902 Applicability: The HOO would apply to projects of 5 or more
units requiring a zone change or general plan amendment, including city
initiated zone changes and general plan amendments since November 28,
2011.
10CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
5.41-1904 In-Lieu Fee Options: Removes the 2020 incentive for “Entitled Residential
Projects” to obtain building permits during the current economic climate. The
provision for “Entitled Residential Projects” no longer applies after October 1, 2021.
6.41-1904 (c)(1)(i) & (ii) Skilled and Trained Workforce & Local Hire Incentives: This
section is amended to incentivize the use of a skilled and trained workforce and local
hire
◦Starting at projects with 15 or more housing units
◦30% STW, 2 trades & 35% local hire = $10/sf
◦60% STW, 3 trades & 35% local hire = $5/sf
7.41-1909 Inclusionary Housing Fund: Clarifies the use of the in-lieu fees collected
◦Prioritize large families, housing security, eviction prevention, legal assistance.
8.41-1910 –Periodic review of in-lieu fee by City Council as needed.
11CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
Summary of Key Amendments Recommended
by Planning Commission as Originally Drafted
2015 HOO Applicable Areas
12CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
Potential HOO Applicable Areas
13CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
Recommendation
Consider the recommendations made by the Planning
Commission and take one of the following options:
o Approve first reading of the Ordinance as presented;
o Approve first reading of the Ordinance incorporating the
changes recommended by the Planning Commission; or
o Approve first reading of the Ordinance with the
incorporation of changes desired by the City Council
14CITY OF SANTA ANA, PLANNING AND BUILDING AGENCY
20 CIVIC CENTER PLAZA, SANTA ANA, CA 92702
City Council Discussion
NOVEMBER 16, 2021
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