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increase of above moderate housing with the city's 2,409 RHNA above moderate allocation being exceeded by 2,677%per the City's RHNA progress reports submitted to the state. With average rents of $2000 - $4000, none of these above market rent units are affordable to most of Santa Ana's working families. The need will be much greater as the COVID-19 pandemic has exacerbated needs that were already existing in our communities. Housing costs in Santa Ana have been out of reach and will continue to be out of reach in this current economic climate. Households that live in the 92701 zip code, the city's most affordable zip code, must earn $35.68 an hour to afford two -bedroom housing (National Low Income Housing Coalition's "Out of Reach: The High Cost of Housing in 2020" Report). The proposed amendments further incentivize housing units with market rate rents and are not affordable to the majority of the City's residents. The proposed amendments do not address the city's needs and create further inequity for the City's residents with the greatest housing need. As such, we oppose the following amendments to the Housing Opportunity Ordinance and Affordable Housing Funds Policies and Procedures: Housing Opportunity Ordinance - Sec. 41-1904. — Options to satisfy Inclusionary requirements • (c)(1) The proposed amendment reduces the in -lieu fee from $15 to $5 The City must retain a $15 in -lieu fee and secure this funding source for much needed affordable housing. The City risks losing state and federal housing matching funds by lowering the in -lieu fee, at a time we face economic uncertainty because of the pandemic. • (c)(2)(ii) The proposed amendments provide that the City will now allow Entitled Residential Projects to pay a reduced fee of $10 per square foot as an incentive to obtain building permits during the current economic climate. Santa Ana residents are those that are most affected by the current economic climate. The entitled projects in the pipeline would generate well over $30 million in in -lieu fees that the City urgently needs to create new affordable housing. Providing this incentive until April 2021, will likely result in a loss of 1/3 of the in -lieu fees expected to be collected, or over $10 million dollars, that would be used to build much needed affordable housing in the City. Housing Opportunity Ordinance - Sec. 41-1909. - Inclusionary Housing Fund • (a)(1)The proposed amendment allows for the use of inclusionary housing for'... one-time programs for code enforcement, and quality of life, and general health and safety activities.' The city needs to include language in the Ordinance that prohibits a future diversion of these funds to general public safety programs as well prohibits the use of funds for departments or activities that are not directly related to increasing and improving the supply of affordable housing. Since its inception the HOO has been clear in its language and purpose in that it states, "Monies deposited into the inclusionary housing fund must be used to increase and improve the supply of housing affordable to moderate, low, very low, and extremely low income housings in the city..." (sec. 41-1909. (a)(1)).