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Judson Brown, City of Santa Ana June 28, 2021 Housing Opportunity Ordinance: Updated In -Lieu Fee Analysis Page 11 Housing Development Analysis, the conceptual analysis prepared by KMA indicates this requirement could be supported under current conditions. As such, KMA applied this percentage in our analysis of the in -lieu fee that could be supported by ownership housing development. To assist in evaluating the financial characteristics of ownership housing development, KMA compiled information pertaining to the development scopes and sales prices for recently constructed projects. Based on this information I<MA prepared conceptual pro forma analyses to identify the magnitude of the incorne and affordability requirements that could feasibly be imposed. ➢t a4r,', 'r 'itt A^A^, ,,'i "c For the following reasons the prototype ownership housing development created by KMA for the pro forma analysis is a condominium project: 1. For single family homes, the average gap between the market rate price and the "Affordable Sales Price" is in the range of $600,000 for moderate income households. 2. Given the disparate characteristics of the new housing inventory in Santa Ana, and that the same in -lieu fee schedule will be applied to all ownership housing development, it is KMA's opinion that it is more equitable to base the in -lieu fee on the Affordability Gap associated with condominium development. As can be seen in the Summary Table: Ownership Housing Development Analysis, the development scope applied in the prototype analysis consists of the following: 1. The development site is set at one acre of land area. 2. The prototype project includes 35 units. 3. The units in the project included a weighted average unit size of 1,720 square feet of saleable area. 4. The parking provided complies with the City's parking code requirements. City Council 28 — 16 217dfi6 024i 19090 017 D21