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Home My WebLink AboutCORRESPONDENCE- 11DJanuary 17, 2017 City Council Meeting Correspondence 11D- FIRST AMENDMENT TO DEVELOPMENT AGREEMENT NO.2015-03 FOR THE HERITAGE VILLAGE MIXED-USE V LO T AT 2001 EAST DYER ROAD Date of Sender/ Representative Agency 1, 1/16/2017 Ugochi Anaebere-Nicholson Public Law Center C:\Users\aalcala\Desktop\_Exhibits_Correspondence_11 D.doc Alcala, Abigail From: Orozco, Norma Sent: Tuesday, January 17, 2017 3:49 PM To: Alcala, Abigail Subject: FW: Opposition to Amendment to Developer Agreement 2015-03- Ordinance No. NS -2911 Attachments: OPPOSITION TO DEV_ AGMT.pdf From: Ugochi Nicholson [ma iIto:unicholson(alpu bliclawcenter.org] Sent: Tuesday, January 17, 2017 3:10 PM To: eComment Subject: Opposition to Amendment to Developer Agreement 2015-03- Ordinance No. NS -2911 Attention Clerk of the City Council: With reference to the attached letter regarding our opposition to the Amendment of Developer Agreement 2015 -03 - Ordinance No. NS -2911. Sincerely, Ugochi Anaebere-Nicholson Ugochi L. Anaebere-Nicholson I Directing Attorney Housing and Homelessness Prevention Unit Public Law Center 601 Civic Center Drive West Santa Ana, CA 92701 714-541-1010, ext. 280 direct 1714-541-5157 facsimile unicholson@publiclawcenter.org lwww.publiclawcenter.org Confidentiality Notice: E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender immediately at 714-541-1010, ext. 280, that you have deleted the e-mail, all attachments, and any copies thereof. Thank you. PUBLIC LAWCENTER PROVIDING ACCESS TO JUSTICE FOR ORANGE COUNTY'S LOW INCOME RESIDENTS January 17, 2017 Mayor Miguel Pulido and Members of the City Council City of Santa Ana 20 Civic Center Plaza P.O. Box 1988, M31 Santa Ana, CA 92701 RE: Opposition —Amendment to Developer Agreement 2015-03- Ordinance No. NS -2911 Dear Mayor Pulido and Members of the City Council: The Public Law Center is a non-profit pro bono law firm in Orange County that provides access to justice for low-income and vulnerable residents. Our practice includes providing representation to low-income families in housing -related matters, preventing homelessness, and advocating for affordable and inclusionary housing. We write to express our strong opposition to the second reading and amendment of the Developer Agreement 2015-03 as requested by the developer, Heritage Village, LLC, which has been identified in the agenda for tonight's meeting as Ordinance No. NS -2911. In February 2016, the City Council made an impactful decision to rezone over 18 acres of land from light industrial to residential, allowing for the development of a 1,221 unit market -rate development, the Heritage Village Project, and providing a significant windfall profit to Heritage Village, LLC. During the 2015 amendments negotiation to the Housing Opportunities Ordinance (HOO), pipeline projects such as the Heritage Village Project received incentives to a pay a reduced inclusionary housing in -lieu fee. At that time, the Heritage Village Project elected to receive the incentives and entitlements in full, in exchange for paying the reduced in -lieu fee. The Heritage Village Project committed to a very important community benefit, specifically the payment of neatly $10 million in inclusionary housing in -lieu fees. Heritage Village, LLC requested that its in -lieu fee be allocated to the First Street Apartments project. First Street Apartments seeks to build 69 affordable family units, and it depends on the Heritage Village Project's full payment of the $10 million in -lieu fees to help fund the First Street Apartments Project. The development of the First Street Apartments Project coincides with the development of the Heritage Village Project, thereby fast tracking the development of affordable housing in Santa Ana. These are 69 units of affordable housing that are needed now; the community cannot afford to wait. As it currently stands, the HOO promotes the construction of new affordable housing units. It is no secret that there is a great need for affordable housing in the City and the lack of an adequate supply is a barrier to livability. The City has made efforts to meet the affordable housing need with the HOO as a policy to help promote and ensure the development of affordable housing for low- and very -low income residents. It is necessary that the City continue to move forward in its efforts. The approval of Heritage Village, LLC's requested amendment to the Development Agreement does nothing but set back and provide uncertainty for the future development of affordable housing. This is because there is a 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157 Letter to Mayor Pulido and Members of the City Council Re: Opposition — Amendment to Development Agreement No. 2015-03 January 17, 2017 Page Two scarcity of quality affordable housing units in Santa Ana. Santa Ana has made efforts to meet the affordable housing need with the HOO as a policy to help promote and ensure the development of affordable housing for low- and very -low income residents. We would also encourage the Council to take steps to ensure that the proposal being sought by Heritage Village, LLC is not inconsistent with the City's General Plan. As we have previously set forth in our prior opposition letters to the actions being sought by Heritage Village, LLC, amending the Development Agreement as requested by Heritage Village, LLC, but adopting Ordinance NS -2911, does not support the City of Santa Ana's efforts to meet the Strategic Plan Goal No. 5 and Objective No. 3. If the City Council amends the Development Agreement as requested by Heritage Village LLC, it will not facilitate diverse housing opportunities, and it will not support efforts to improve livability in Santa Ana. Amending the Development Agreement, moreover, to allow for the phased payment of inclusionary housing in -lieu fees will affect all future affordable housing developments, not just the First Street Apartments. It is therefore necessary that the City continue to move forward in its efforts. The payment of nearly $10 million in inclusionary housing in -lieu fees is needed now; City residents cannot wait for phased payments. Many of our clients are working families in Santa Ana who are facing a housing affordability crisis and who are in desperate need of decent affordable housing. In Santa Ana, there is a significant need to address and provide housing opportunities for all economic segments of the community. Families in our City are extremely rent burdened, as most of their limited income (over 500/0) is used to pay for housing costs. As residents struggle to find available and affordable housing in Santa Ana, rents have continually increased, In the City, the 2016 average rent for a large rental complex was $1,786.00, which was a 3.7% increase from the year before.' These rents are far out - of -reach for many lower income working families in the City. The HOO has been preserved and adopting this Amendment to the Development Agreement would undermine its preservation. The Planning Commission recognized this on November 14th, when they voted against recommending the approval of the Amendment to the City Council. For these reasons, we urge the City Council to vote against this second read to approve the Amendment to Development Agreement No. 2015-03 by not adopting Ordinance NS -2911. Sincerely, Ugochi Anaebere-Nicholson Directing Attorney, Housing and Homelessness Prevention Unit ' Tiny Spaces Not So Cheap: Studios are 0. C. 's Priciest Rentals, Orange County Register, April 19, 2016 601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 -Fax (714) 541-5157