HomeMy WebLinkAboutPOWERPOINT - 75B_HOUSING OPPORTUNITY ORDINANCE_FINAL REVHOUSING
OPPORTUNITY
ORDINANCE
City Council
Zoning Ordinance Amendment 2015-03
August 4, 2015
75B
UNDERLYING PURPOSE OF
HOUSING OPPORTUNITIES ORDINANCE
Ensure creation of high quality
affordable housing along with market
rate housing with minimum or no
public subsidy
.
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BACKGROUND
Current Housing
Opportunity Ordinance
Adopted November 2011,
referenced in 2014 Housing
Element
Requires 15 percent of new
housing to be affordable
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ORDINANCE APPLICABILITY
When does Ordinance
apply?
Zone change that results in residential
density increase
Approved applications proposing to
increase residential component exceeding
original mixed use development approval
Conversion of commercial or industrial
land to residential uses
Conversion of rental units to condominium
ownership of 5 units or more
Construction of New “residential projects”
of 5 or more units
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IMPLEMENTATION CHALLENGES
Unpredictable
Inconsistent
Too many unknown steps in process
Makes adaptive reuse too costly
Does not allow for reliable financial planning of
projects
Makes Santa Ana less competitive in attracting new
market rate housing investment
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GOALS OF ORDINANCE AMENDMENT
Create Affordable Housing Mixed with Market Rate
Housing
Minimize Public Subsidies for Affordable Housing
Production
Maintain Competitive Edge on Attraction of Private
Investment in Housing Production
Clear, Consistent, Predictable Development Pathway
Allow for Creation of Diverse Housing Options for Socio-
economically Diverse Population
Provide Options to Minimize Inclusionary Housing Cost
Minimize Negative Impacts on Existing Tenants on Rehab
Projects
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CONSIDERATIONS
Constrains Historic Adaptive
Reuse/ Building Re-purposing
Treats New and Existing
Development the same while
economics differ
Constrains alternatives to
construction of New units on-
site
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STAKEHOLDER OUTREACH
Housing Developers and Housing
Advocates
Stakeholders Discussions:
July 8, 2015
July 13, 2015
Planning Commission Meeting
July 20, 2015
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PROPOSED MODIFICATIONS
Exemptprojects approved prior to date
of adoption of original HOO ordinance
Inclusionary Units criteria:
For-Sale -Moderate 15 %
Rental -Low/ Very Low 10%
ExemptAdaptive Reuse from HOO
requirement
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ADAPTIVE REUSE & REPURPOSING
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PROPOSED MODIFICATIONS
Residential Projects over 20 unitsprovide
Inclusionary Units on-site
Provide for off-site construction of units (1
for 1)
Allow rehabilitationof off-site units at 1.5
rehabilitated units in-lieu of 1 newly
constructed unit (1 to 1 for Target Areas)
Inclusionary Unit production 100%
responsibility of developer; no City or
Housing Authority assistance
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REHABILITATION TARGET AREAS
Cornerstone Village
Cedar-Evergreen
Townsend-Raitt
West Myrtle
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PROPOSED MODIFICATIONS
All Inclusionary Units (rental and ownership) 55
years
Apply only to conversions for number of units in
excess of General Plan prescribed densities
RemoveTakings Determination from ordinance
RemoveExecutive Director Discretionary
Authority
Simplify In-Lieu fee calculation ($5/square foot
of habitable space)
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INCENTIVES AND CONCESSIONS
Similar to State Density Bonus :
(SB 1818)
Parking:
1 space/ 0-1 bedroom units
2 spaces/2-3 bedroom units
2 ½ spaces for 4 or more bedroom units
Development Standards:
Setback -up to 25 percent
Height –up to 20 feet
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INCENTIVES AND CONCESSIONS
Similar to State Density Bonus
(SB
:
1818)
Sliding Scale additional density bonus for
every additional affordable unit beyond
required inclusionary units
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PROPOSED MODIFICATIONS
Pipeline projects eligible for newly
adopted In-Lieu fee:
Deemed complete prior to August 4, 2015
Submit new or revised Housing
Inclusionary Plan
Pay In-Lieu fee of $5/ square feet
Revisit/reevaluatein 3 years
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DISCUSSIONS SINCE PC MEETING
Earmarking In-Lieu fees
In-Lieu fee for 21 or more unit
projects at a higher rate
Allowing up to 50 units to pay in-lieu
fee
Extremely Low not addressed
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EARMARKING IN-LIEU FEES
Affordable
Developer
Exclusive Rights over
Becomes a
Inclusionary Housing
Public Fund
Funds
Other Affordable
Housing Funds
Add Restrictions
Project
Restrictions on Citizenship
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OPEN REQUEST FOR PROPOSAL PROCESS
Inclusionary
Housing
Request for Proposals
Becomes a
Fund
(RFP)
Public Fund
Select Developer
Project
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PC RECOMMENDATION
Planning Commission recommends City
Council approve Zoning Ordinance
Amendment No. 2015-03
One Commissioner advocated NOT
exempting “adaptive reuse” projects
One Commissioner would like more time
to discuss and absorb draft ordinance
Two commissioners absent
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RECOMMENDATION & ALTERNATIVES
Recommendation:
Adopt Proposed Draft Amended Ordinance
Alternative 1:
Allow applicants with projects of 21 or more units to pay an in-lieu
fee at a higher flat rate established by the City Council;
Establish the higher in-lieu fee high enough to sufficiently fund
building new affordable housing through open, competitive public
process
Alternative 2:
Allow applicants with projects containing up to 50 units to be eligible
for paying the in-lieu fee
Alternative 3:
Make no change
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