HomeMy WebLinkAboutCORRESPONDENCE - 75B - ADDITIONAL15d
EL CENTRO
CULTURAL
' DE MEXICO
313 N. Birch Street Santa Ana, Ca. 92701
August 41h, 2015
Dear City Council,
This letter is to communicate el Centro Cultural de Mexico's great concern over the
modifications of the Inclusionary Housing Ordinance and the lack of public
participation in these changes. El Centro has been working on issues of
gentrification and displacement in the city of Santa Ana for about ten years.
We work with many families in helping create community spaces for art, culture and
community leadership. We have been able to talk to many residents, youth, adults
and families. Most recently we organized renters rights training where got to listen
to many stories about not only poor housing conditions but the high rate of housing
insecurity that exists in Santa Ana. These stories are far too common.
Policy in recent decades, whether implemented by the government, the corporate
sector or some combination of the two, has contributed to a loss of housing for low
income families. What is also a shame are the discourses that both government and
the private sector use to defend these policies. Either for the deconcentration of
property, investment, revitalization, or even sometimes the same need for
affordability, is used to promote development that has lead to the displacement of
members of our community. As enormous amounts of investment come into our
cities, their interests in maximizing profits undermine our interest in long-term
neighborhood stability.
We want policies that allow us to strengthen the bonds we build with each other in
our communities, and which help us to survive in the face of resource scarcity,
economic hardship, environmental degradation and political margin alization.
We assert our right to stay in the communities is that we have build and take part in
their future, and we refuse to be displaced. To this ends, we call for an end to profit
driven development that produces housing our communities cannot afford.
The changes in this ordinance represent the lack of the city's commitment to
housing for Santa Ana's residents, the failure to include the community in shaping
these significant policies. We call for more time and more public participation.
Sincerely,
Centro Cultural de Mexico Members
Mitre -Ramirez, Norma
From: Huizar, Maria
Sent: Tuesday, August 04, 2015 6:09 PM
Cc: Cavazos, David
Subject: FW: [Fwd: Comments HOO on item 75 on City Council agenda for 8/4/15]
Attachments: santaanaHOO8415.pdf
Categories: Correspondence
Communication on Agenda Item 75B Housing Opportunity Item
-----Original Message -----
From: cesarc@kennedycommission.org [mailto:cesarc@kennedycommission.org]
Sent: Tuesday, August 04, 2015 6:07 PM
To: Huizar, Maria
Cc: !City Council
Subject: [Fwd: Comments HOO on item 75 on City Council agenda for 8/4/15]
---------------------------- Original Message ----------------------------
Subject: Comments HOO on item 75 on City Council agenda for 8/4/15
From: cesarc@kennedycommission.org
Date: Tue, August 4, 2015 9:03 pm
To:
Cc: cesarc@kennedycommission.org
Maria,
Please see the Kennedy Commission's comments on item 75 the Housing Opportunities Ordinance.
Cesar Covarrubias
The Kennedy Commission
August 4, 2015
Honorable Mayor Miguel Pulido
Honorable Council Members
City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
RE: Proposed Changes to Santa Ana's Housing Opportunities Ordinance
Honorable Mayor and Councilmembers,
www.keunedyQommission.org
17701 Cowan Ave„ Suite 200
Irvine, CA 92614
949 250 0909
Fie 949 263 0647
The Kennedy Commission (the Conunission) is a broad based coalition of residents and
community organizations that advocates for the production of homes affordable for families
earning less than $20,000 annually in Orange County. Formed in 2001, the Commission has been
successful in partnering with jurisdictions in Orange County to create effective housing policies
that has led to the new construction of homes affordable to lower income working families.
The need to increase quality homes that are affordable to lower income working households
remains a high priority in the City of Santa Ana. The average asking rents is the City is $1,687,
which is a 9 percent increase from the year before and rents are expected to continue to increase, l
With lower wages that are not keeping up with rising rents, many renting families continue to
struggle financially to live and work in this City. Approximately 60 percent of renter households
are lower income' and 84 percent of residents field moderate- and low-income occupations that
paid less than $53,500 per year.3 In order for rent to be affordable, only 30 percent of an
individual's income should be used towards housing costs. Unfortunately, 57 percent of renters
overpaid or spent more than 30 percent of their income towards housing costs.' The typical
household size in the City is 4.4 persons per unit' and 43 percent of the City's renter households
live in overcrowded conditions, 6 These renters typically double or triple up with other family
households to make rent affordable.
The current inventory of residential projects under construction or in the pipeline, shows that the
around 3,000 units are currently planned in the City of Santa Ana. These developments will
provide housing opportunities (in its majority) to moderate and above moderate income
households. Considering the housing needs and development opportunities in the City we believe
that in planning for development the City needs to consider how these housing opportunity sites
will help it meet its housing goals and the housing needs of residents in Santa Ana.
Peeling the Pinch? Local Rent Prices Hit a Record High, Qrangc County Register, humary 16,2015.
' City of Santa Ana General Plan FCousing Elemenk2014-2021, p. 14 , January2014.
s City of Santa Ana General Plan Housing Element 2014-202t, p. 12 , Junnary 2014.
'City of Santa Ana General Plan Housing $Iement2614-2021, p. 20, January 2014.
s City of Santa Ana General Plan Housing Element 2014-2021, p. 11 ; January 2014.
° City of Santa Ana General Plan Housing Element 2014-2021, p.20 , January 2014.
The Commission would like to commend the City for its leadership and commitment in
encouraging and facilitating the development of homes affordable to lower income families
through the Housing Opportunities Ordinance. With cuts in state redevelopment and
federal funding the ordinance is a vital to the City in implementing its affordable housing
goals. The Ordinance is an integral tool for the City to effectively develop homes that are
affordable to lower income families in the City. With limited resources, potential changes to the
Housing Opportunities Ordinance may limit and negatively impact future affordable home
developments in the City.
As the City moves forward in proposing changes to the Housing Opportunities Ordinance, the
Commission urges the City to ensure changes would effectively strengthen the integrity and
intent of the Ordinance to produce homes that would be affordable to lower income working
families in the City. We believe a more comprehensive approach should be taken to understand
the City's planning, affordable housing needs and resources for affordable housing.
The Housing Opportunities Ordinance was established in 2011 and was created to:
"-encourage the development and availability of affordable housing by
requiring the inclusion of affordable housing units within developments that
involve an increase in the density otherwise available under applicable zoning
and development standards, a change in land use designation from a zoning
regulation that does not permit residential uses to one that does permit
residential uses; or the conversion of rental units to condominium ownership.7 if
the Residential Project consists of units for sale, then a minimum of 15 -percent
of the total number of units in the project shall be sold to Moderate Income
Households, or lower.' If the Residential Project consists of rental units, then a
minimum of 15 -percent of the units shall be rented to low or Very Low Income
Households.'
We want to provide the following recommendations:
The Housing Opportunities Ordinance needs to apply to all developments that are
proposing residential development. No exemption should be carved out.
Residential development must include 15% of housing units to be affordable to low
income residents.
This will allow the City to capture the community benefit of affordable housing for its
residents in the zoning and housing sites opportunities it has created for development.
Adaptive reuse and Apartment to condominium conversions should not be
exempted.
2. Developers should be given the opportunity to develop the affordable housing units;
- On-site a part of the project (at their cost)
- Off —site (at their cost)
- An in lieu fee may be considered as an option i£tlne fee is commensurate with the cost
to develop the affordable housing units.
'Santa Ann Housing Opportunities Ordinance, p. 1,201L
s Santa Ana Housing Opportunities Ordinance, p. 3, 2011.
' Santa Ana Housing Opportunities Ordinance, p. 3, 2011.
Projects Approved or in the pipeline should build affordable housing units on site or
pay an in -lieu fee commensurate with the actual costs of building affordable homes.
The proposed fee of $5 a square foot is only a fraction of the true cost of development of
affordable housing and will impose a significant burden on the City to find additional
resources to develop the housing. The Commission has done some preliminary
calculations on the $5 per square foot calculation proposed vs. a fee that gets closer to the
gap financing and actual costs.
Under the proposal City stands to create no new affordable housing units on pipeline
projects (around 2,700 units) propose on housing opportunity sites. In addition, under
proposed fee calculation of $5 square foot the City would fail to capture the appropriate
funding to build the affordable housing units elsewhere. In fact, just on the pipeline
projects.the city would lose over $20 million dollars in revenue from this inaccurate in -
lieu fee.
4. Increase the proposed in -lieu fee from $5 per square foot to be commensurate with
the actual costs of building affordable homes.
The Commission would recommend that the in lieu fee be reflective of the true cost of
developing the affordable housing units of site or allowing the City to leverage additional
housing tax credits or housing finance to create the units. A Commission's experience is
that the true in -lieu fee ranges from the low end of $15,000 (as gap financing) to
$50,000 per unit (actual cost). Calculation should be on a per unit basis to simplify
calculation. One fee should apply to all developments (render 20 units or more).
5, Restrict Moderate Affordable Housing for Sale to 80% Area Median Income (AMI)
(Family income around $75,000).
In Santa Ana Moderate Income in for sale unit range from 80% AMI to 120% AMI. A
for sale home at 120% AMI is virtually at market value for a home in Santa Ana.
6. Evaluation of the HOO should be on an annual basis.
7. Apply SS 1818 incentives only to development that build affordable units on-site.
The Commission looks forward to working with the City to implement an effective Housing
Opportunities Ordinance that will provide affordable home opportunities for all working families
in the City.
Sincerely,
Cesar Covarrubias
Executive Director