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city's most affordable zip code, must earn $35.68 an hour to afford two -bedroom housing. (National Low Income Housing Coalition's "Out ofReach: 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)). Affordable Housing Fund Policies and Procedures - Eligible Uses and Activities (Page 75B 92) The proposed amendment removes Cooperative Housing Programs as an eligible use Cooperative housing programs have been used to create and preserve affordable housing throughout the country, reducing displacement among low and moderate income residents by retaining affordability even in the midst of rapidly gentrifying neighborhoods. Coupled with legislation allowing for the first right of refusal and opportunity to purchase, residents can retain their housing and experience supportive first time home ownership. Public Advocates, Housing California and the Coalition for Nonprofit Housing and Economic development are just a few of the many advocates for place -based strategies that stabilize tenants and communities through strategies like Cooperative Housing Programs. There should be no reason to remove a use that can increase the supply of affordable housing in Santa Ana and that aligns with the HOO.