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Home My WebLink AboutItem 15 - Second Reading of the Local Resident Preference in Affordable Housing OrdinanceCommunity Development Agency www.santa-ana.org/community-development Item # 15 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report June 18, 2024 TOPIC: Local Resident Preference in Affordable Housing Ordinance AGENDA TITLE Second Reading of the Local Resident Preference in Affordable Housing Ordinance First reading at the June 4, 2024 City Council meeting and approved by a vote of 7-0. Published in the OC Reporter on June 10, 2024. RECOMMENDED ACTION Conduct a second reading of the Local Resident Preference in Affordable Housing Ordinance to comply with the State of California Local Tenant Preferences to Prevent Displacement Act and codify the City's existing local resident preference policy. ORDINANCE NO. NS-3066 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CREATING A NEW ARTICLE XXI IN CHAPTER 8 OF THE MUNICIPAL CODE TO CODIFY THE CITY'S LOCAL RESIDENT PREFERENCE IN AFFORDABLE HOUSING (includes determination that the ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment and 15060(c)(3) because the activity is not a project as defined in Section 15378 of the CEQA Guidelines) GOVERNMENT CODE 684308 APPLIES: No DISCUSSION At its June 4, 2024 regular meeting, the City Council approved the first reading of the Local Resident Preference in Affordable Housing Ordinance, and City Council authorized publication of title by a vote of 7-0. If adopted by the City Council on June 18, 2024, the ordinance will go into effect 30 days thereafter. FISCAL IMPACT There is no fiscal impact associated with this item. EXHIBIT(S) 1. Local Resident Preference in Affordable Housing Ordinance Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nunez, Acting City Manager EXHIBIT 1 ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CREATING A NEW ARTICLE XXI IN CHAPTER 8 OF THE SANTA ANA MUNICIPAL CODE TO CODIFY THE CITY'S LOCAL RESIDENT PREFERENCE IN AFFORDABLE HOUSING WHEREAS, the City of Santa Ana, California ("City") is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, the Housing Authority of the City of Santa Ana, California ("Housing Authority") is a public body, corporate and politic; and WHEREAS, Section VII of Article XI of the California Constitution provides that a city may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, on June 20, 2017, the City Council directed staff to develop a policy to allocate affordable housing development funds and criteria for selection of projects; and WHEREAS, on March 20, 2018, the City and the Housing Authority adopted the City's Affordable Housing Funds Policies and Procedures, which were developed to guide how affordable housing funds and land assets available to the City are allocated, committed, loaned and monitored for multi -family affordable housing development in the City; and WHEREAS, the Affordable Housing Funds Policies and Procedures detailed the City's local preference for Santa Ana residents and workers in tenant selection shall be a requirement of the programs implemented through the City's Affordable Housing Funds Policies and Procedures, among other programs if permitted ("Local Preference"); and WHEREAS, on August 18, 2020, the City and the Housing Authority adopted an Amended Affordable Housing Funds Policies and Procedures; and WHEREAS, since the adoption of the Affordable Housing Funds Policies and Procedures and subsequent Amendment, the City and the Housing Authority of the City of Santa Ana has continued to fulfill their duty to affirmatively further fair housing by taking meaningful actions to combat discrimination, overcome patterns of discrimination, and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics, by among other things: 1) implementing the City's Rent Stabilization and Just Cause Evicition Ordinance to prevent displacement and eviction in existing housing; 2) enforcing the City's inclusionary housing ordinance, known as the Affordable Housing Opportunity & Creation Ordinance, for new development; 3) holding an annual mandatory training for all staff in the City's Housing Division and Housing Authority; 4) providing annual small apartment managers' workshop to train and educate property owners, HOAs, property managers, and tenants about best practices in property management, neighborhood safety, and landlord/tenant responsibilities; 5) providing CDBG funding to the Fair Housing Council of Orange County to provide legal clinics for tenants on Ordinance No. NS-XXXX Page 1 of 4 EXHIBIT 1 tenants' rights and recourse for intimidation and unjust evictions; 6) providing housing assistance payments to eligible households who are participating in the Housing Choice Voucher Program; 7) providing down payment assistance; 8) providing funding for a single-family rehabilitation program; and 9) providing various sources of funding to develop affordable housing; and. WHEREAS, on January 1, 2023, the Local Tenant Preferences to Prevent Displacement Act, California Government Code Sections 7061, et seq. became effective, and states "Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community"; and WHEREAS, the Local Tenant Preferences to Prevent Displacement Act, requires any local government adopting a local tenant preference policy to create a webpage on its internet website containing the ordinance and its supporting materials, and to annually submit a link to its tenant preference webpage to the Department of Housing and Community Development; and WHEREAS, the City and the Housing Authority, in light of subsequent enactment of State law, desire to satisfy Federal funding requirements for development of affordable housing in accordance with the already adopted Local Preference provisions in the Affordable Housing Funds Policies and Procedures as Amended, and implement City policies and procedures in accordance with the Local Tenant Preferences to Prevent Displacement Act and the City's duty to affirmatively further fair housing under state law; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1. Recitals. The recitals above are true, correct and each incorporated herein by reference and adopted as findings by the Santa Ana City Council ("City Council"). SECTION 2. Addition. Chapter 8, Article XXII (Section 8-3500), of the Santa Ana Municipal Code shall read as follows: ARTICLE XXII — LOCAL RESIDENT PREFERENCE IN AFFORDABLE HOUSING Sec. 8-3500. — Local Preference. (a) The City may, through its Affordable Housing Funds Policies and Procedures, as amended from time to time, or by Resolution, or by other subsequently approved policies and procedures by City Council, adopt a Local Preference policy for Santa Ana residents and workers in tenant or homebuyer selection as a requirement of the City's local housing programs, and other State or Federal programs implemented by the City. (b) The Local Preference shall comply with Federal and State law, and implementing regulations or other program funding requirements. Pursuant to California Government Code Section 7061, the Local Preference shall be subject to the duty of public agencies to affirmatively further fair housing pursuant to Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2, the California Fair Employment and Housing Act (Part 2.8 (commencing with Section Ordinance No. NS-XXXX Page 2 of 4 EXHIBIT 1 12900) of Division 3 of Title 2), the Unruh Civil Rights Act (Section 51 of the Civil Code), the federal Fair Housing Act (42 U.S.C. Sec. 3601 et seq.), and any implementing regulations thereunder. (c) Subject to the requirements of this section, the Affordable Housing Funds Policies and Procedures may specify the criteria, qualifications and other requirements of the Local Preference. "Local" may be defined narrowly or broadly for any specific affordable housing project to include but not be limited to a specific zip code or City Council ward map in the City; and "Resident" may be defined narrowly or broadly to include people who are employed in the City of Santa Ana for a specific number of hours. (d) The Local Preference policy in effect through the City's Affordable Housing Funds Policies and Procedures, as they existed at the time of this enactment, shall continue until amended or superseded by an act of City Council or by the terms of the policies and procedures itself. SECTION 3. California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment and 15060(c)(3) because the activity is not a project as defined in Section 15378 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly and so is not a project. SECTION 4. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. SECTION 5. Effective Date. This Ordinance shall become effective thirty (30) days following its adoption. SECTION 6. Publication. The City Clerk shall attest to the passage and adoption of this Ordinance, causing it to be published as required by law, and it shall become effective thirty (30) days after its adoption. ADOPTED this day of , 2024. Valerie Amezcua Mayor Ordinance No. NS-XXXX Page 3 of 4 EXHIBIT 1 APPROVED AS TO FORM: Sonia R. Carvalho City Attorney 1 1)B dAj (., Y� Andrea Garcia -Miller Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, JENNIFER HALL, City Clerk, do hereby attest to and certify that the attached Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2024 and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Dated: City Clerk City of Santa Ana Ordinance No. NS-XXXX Page 4 of 4