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Housing Opportunity Ordinance <br />September 7, 2021 <br />Page 6 <br />2 <br />0 <br />5 <br />1 <br />Ordinance to serve as a cut-off threshold and provide clarity for development project <br />proposals currently undergoing the development approval process with the City. One <br />option is to apply the amended HOO policies to projects that have not yet received final <br />entitlement approvals from the City Council. Alternatively, another option is to apply the <br />amended HOO policies to projects that have not vested their entitlements by obtaining a <br />building permit or have not paid the HOO in-lieu fee payment as of the effective date of <br />the Ordinance. Both vesting options meet legal standards and are commonly practiced <br />by local governments when implementing new regulations and policies effecting land use <br />and development issues. As requested by the City Council, staff have provided maps <br />showing the current HOO and how the amended HOO will apply to various areas of the <br />City (Exhibit 2). <br />Analysis of Skilled and Trained Workforce and Sliding Scale for In-Lieu Fee <br />The consensus from the City Council is to evaluate and implement a mandatory skilled <br />and trained workforce requirement to create a living wage for projects that trigger the <br />HOO and develop a sliding scale for the in-lieu fee for projects that incorporate a skilled <br />and trained workforce. To analyze this policy area, staff reached out to three developers <br />(two market-rate and one affordable), The Building Industry Association (BIA) of Southern <br />California, and three labor unions to request data on the financial impact of a requirement <br />to use a skilled and trained workforce. As part of that outreach, staff requested data to <br />provide an understanding of the impacts and to facilitate the development of a sliding <br />scale option of the in-lieu fee amount if a developer provides an enforceable commitment <br />to use a STW. The BIA indicated that their members typically do not share this <br />information; the labor organizations representing the various construction trades in <br />Orange County are not privy to project level financial data; and the development <br />community indicated this type of data was confidential and therefore did not share it. <br />Staff met with the local labor unions at their request and received input regarding the STW <br />and the various benefits that it will bring to the City and residents. This meeting included <br />the Building and Construction Trades Council, Local 652 of the Laborers’ International <br />Union of North America based in Santa Ana, Local 441 of the International Brotherhood <br />of Electrical Workers, Local Union 105, and the Southwest Regional Council of <br />Carpenters (collectively referred to as the building trade labor unions). The labor unions <br />recognize that there is a cost increase when using a skilled and trained workforce and <br />contend that the waterfall of benefits are tangible and address the core of the affordable <br />housing crisis. An employee earning a living wage with employment benefits can attain <br />decent housing and a higher quality of life. Other key benefits include a reliable and <br />stable workforce, reduced public reliance on government assistance programs, higher <br />efficiency from a trained employee, a career pathway to the various construction trades, <br />promote regional jobs-housing balance, promote environmental benefits from reduced <br />vehicle miles traveled, local pride of working on a project developed in Santa Ana, and <br />many other social and economic benefits. The labor unions also expressed support for <br />a sliding scale approach to incentivize the use of a STW.