2011-023 - Development Agreement Between the Community Redevelopment Agency

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Chapter 5 Statement of Overriding Considerations Mercy House project will provide one three-bedroom and five two-bedroom units. These units are appropriately sized to meet Santa Ana’s identified demographic needs. i. The City currently suffers from a shortage of affordable housing. As set forth in the City’s certified Housing Element (2006-2014), the City of Santa Ana’s share of the Regional Housing Needs Allocation (RHNA) for 2006-2014 3,393 units of new residential construction, 694 of which are to be affordable to very low income households, 574 of which are to be affordable to low income households, and 665 to be affordable to moderate income households (EIR, Section 4.9). State law mandates that in order to satisfy its RHNA requirement the City create opportunities for new housing, particularly affordable housing, through the application of zoning which allows for increased density. The existing maximum density allowed under the current zoning within the area covered by the Transit Zoning Code is 15 dwelling units per acre, though there are projects within the area that were constructed prior to the establishment of the current zoning that exceed the 15 dwelling units per acre. The State Department of Housing and Community Development (HCD) requires that cities provide zoning that allows for residential construction at a minimum density of 30 dwelling units per acre in order to meet the density criteria that HCD has established as being supportive of affordable housing production. The City’s Housing Element identified the Renaissance Specific Plan area, which shares the same geographic boundary as the Transit Zoning Code area, as one that has the potential to provide a new source of residential in-fill development and, as such, was used to partially satisfy the City’s RHNA requirement. During the planning period covered by the Housing Element (2006-2014) it is estimated that the City could anticipate up to 238 units of new residential development. Throughout the life of the Transit Zoning Code (a planning horizon of 20 to 30 years) it is estimated that there could be as many as 4,075 new residential units, a portion of which could be expected to meet affordability requirements. The Project implements the Housing Element and provides the zoning necessary to stimulate new affordable housing production. j. The Developer Project component of the Project and the Mercy House project (and/or another form of affordable housing or other use on the site of the Mercy House project) will provide up to 220 new residential units. As currently designed these projects will provide approximately 122 rental units affordable to those meeting the Orange County criteria for Low, Very-Low and Extremely Low Income, three manager’s units for the rental projects, approximately 24 for-sale units, up to five of which will be affordable to those meeting the Orange County criteria for Moderate Income, and the balance of which will be market-rate for-sale units. This creates a combined total of approximately 149 new residential units. Of these, approximately 127 will be deed-restricted affordable housing and will be counted towards the City’s RHNA requirement. These 127 affordable units represent 53% of all new units estimated to be constructed within the 2006-2014 planning horizon of the Housing Element for the Transit Zoning Code area and represent 10% of the City’s total RHNA requirement for Very Low and Low Income housing (1,268 units – City of Santa Ana Housing Element 2006-2014 Table 4). This is a significant contribution to meeting both the State mandated requirements for affordable housing production, as well as meeting a real need for the residents of Santa Ana. In addition, the Mercy House project (11 of the 127 previously described units) meets the City’s criteria for Special Needs housing, also identified as a need in the Housing Element. Failure to approve the Developer Project and the Mercy House project will eliminate an important new source of affordable housing and special needs housing. k. The Project furthers the City’s policy of “maximiz[ing] affordable housing on Agency-owned properties that is of high quality, sustainable, and available to various income levels.” (See Santa Ana Housing Element [2006-2014], Policy HE-2.8.) It meets the City’s policy to “encourage the Revised Station District Project and FOL Settlement Agreement Findings of Fact/Statement of Overriding 5-11 Considerations