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ZOA No. 2025-01 and OA No. 2025-01 (Group Home Ordinance) <br />September 16, 2025 <br />Page 2 <br />5 <br />3 <br />0 <br />9 <br />DISCUSSION <br />At the August 19, 2025 meeting, the City Council conducted a first reading of an <br />ordinance, Zoning Ordinance Amendment No. 2025-01, amending several sections of <br />Chapter 41 (Zoning) and Ordinance Amendment No. 2025-01, to add Article XXIII to <br />Chapter 8 (Buildings and Structures) of the Santa Ana Municipal Code relating to the <br />location, licensing, permitting, and operational requirements for group homes and land <br />use definitions. The ordinance, approved 7:0, requires a second reading and adoption to <br />become effective October 16, 2025. <br /> <br />No changes to the ordinance were made by the City Council. A copy of the ordinance for <br />second reading is attached to this report as Exhibit 1. <br />ENVIRONMENTAL IMPACT <br />Pursuant to the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines, <br />the adoption of this ordinance (“Project”) is exempt from CEQA review pursuant to <br />Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result <br />in a direct or reasonably foreseeable indirect physical change in the environment. The <br />Project is also exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA <br />Guidelines as it can be seen with certainty that there is no possibility the ordinance will <br />have a significant effect on the environment. The amendments provide definitions and <br />standards to regulate the location, operation, and licensing of group homes and do not <br />authorize new development or changes in density or intensity of land use. Moreover, the <br />Project is categorically exempt from further review per Section 15301 (Class 1 – Existing <br />Facilities) of the CEQA Guidelines. This exemption applies to the operation, repair, <br />maintenance, permitting, leasing, licensing, or minor alteration of existing public or private <br />structures, facilities, mechanical equipment, or topographical features, involving <br />negligible or no expansion of existing or former use. The Project merely establishes <br />administrative and land use oversight procedures for group homes already operating or <br />proposed within existing residential structures, and will not expand the existing use. None <br />of the exceptions to the use of categorical exemptions identified in CEQA Guidelines <br />Section 15300.2 apply to the Class 1 exemptions or this ordinance. Specifically, the <br />Project will not result in cumulative impacts, will not affect any scenic or historic resources, <br />and will not involve unusual circumstances leading to a significant impact. Therefore, a <br />Notice of Exemption, Environmental Review No. 2025-43, will be filed for the Project. <br />FISCAL IMPACT <br />The proposed ordinance has a net neutral fiscal impact, as the passage of the ordinance <br />would generate fiscal impacts to the City in the form of additional expenditures offset by <br />new revenues. Based on best available data for the 74 existing known and suspected <br />residential care and group home facilities, staff estimates one-time permit revenues of <br />approximately $358,000 and approximately $17,000 in total annual permit revenues <br />thereafter. Such revenues recover the City’s costs associated with equipment, materials, <br />and personnel already budgeted. Therefore, an appropriation adjustment is not required.