HomeMy WebLinkAboutCORRESPONDENCE - 60A.00
City Council Meeting Correspondence
7/16/2019
DENSITY BONUS AGREEMENT TO ALLOW A 552 UNIT AFFORDABLE RENTAL PROJECT AT 2110,
2114, AND 2020 EAST FIRST STREET
Date of Name Representative of In Favor In Opposition Comment
Correspondence of RA*. of RA.*
1 7/16/2019 Ugochi L. Anaebere- Public Law Center Yes
Nicholson
2 7116/2019 Linda T on behalf of Cesar The Kennedy Commission Yes
Covarrubias
TOTAL: 2
"RA - Recommended Action
Tuesday, July 16, 2019 Page 1 of 1
Orono, Norma
From:
Ugochi Nicholson <
Sent:
Tuesday, July 16, 2019 2:51 PM
To:
eComment
Subject:
Item 60A
Attachments:
Letter of Support.pdf
Good afternoon,
With reference to the attached comment letter.
Sincerely,
Ugochi
Ugochi L. Anaebere-Nicholson I Directing Attorney
(pronouns: She/her/hers)
Housing and Homelessness Prevention Unit
Public Law Center
601 Civic Center Drive West
Santa Ana, CA 92701
714-541-1010, ext. 280 direct 1 714-541-5157 facsimile
lwww.publiclawcenter.org
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•
PUBLIC LAWCENTER
PROVIDING ACCESS TO JUSTICE
FOR GRANGE COUNTY'S LOW INCOME RESIDENTS
July 16, 2019
Mayor Miguel Pulido and Members of the City Council
City of Santa Ana
20 Civic Center Plaza
P.O. Box 1988, M31
Santa Ana, CA 92701
RE: Item 60A: Approve a Density Bonus Agreement to Allow a 552 Unit Affordable Rental
Project At 2110, 2114, and 2020 East First Street (Strategic Plan Nos. 3, 2, 5, 3)—LETTER OF
SUPPORT
Dear Mayor Pulido and Members of the City Council:
We submit this letter in emphatic support for a much -needed affordable housing project —the
552 Unit ("Unit") being proposed for 2110, 2114, and 2020 East First Street. As will be set forth
below, the Unit, as a one -hundred percent affordable housing proposal, qualifies for the Density
Bonus it seeks by right, and a decision to deny this project for arbitrary reasons not only violates
the spirit of the Density Bonus Law, it constitutes illegal housing discrimination against low-
income people under federal and state law. The Planning Commission and City Council Staff
have made an intentional decision to assist in the affordable housing crisis that has crippled State
of California. The Council should affirm the Planning Commission's decision, accept City
Council Staff's recommendation and approve this project.
The Public Law Center is a non-profit pro bono law firm in Orange County that provides access
to justice for low-income and vulnerable residents. Our practice includes providing
representation to low-income families in housing -related matters, preventing homelessness, and
advocating for affordable and inclusionary housing PLC is a non-profit pro bono law firm that
provides access to justice for low-income and vulnerable residents in Orange County, California.
We also collaborate with community organizations, statewide advocates, and law firms to push
Orange County jurisdictions to create and maintain effective housing policies for lower -income
working families.
This proposed project comes at an especially critical time for California, which is experiencing a
severe affordable housing crisis. Recently, the National Low Income Housing Coalition released
its Out of Reach Report.1 The report highlights Orange County's rising housing crisis and
exorbitant housing costs continue to challenge and affect Orange County's lower income
'See 30th Anniversary Out of Reach Report, National Low Income Housing Coalition (2019),
https://reports.nlihe.org/sites/default/frles/oor/OOR 2019.pdf (last visited on June 19, 2019)
601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157
Letter of Support re Item 60A Request for Approval of a Density Bonus Agreement to Allow a
552 Unit Affordable Rental Project at 2110, 2114, and 2020 East First Street
July 16, 2019
p. 2
working families. According to the report, workers need to earn $39.17 an hour to afford the rent
for a typical two -bedroom apartment in Orange County. The typical fair market rent (FMR) for a
two -bedroom unit here is $2,037 per month, ranking Orange County among the nation's top 10
most expensive metropolitan areas in the nation. The annual income needed to afford a two -
bedroom FMR is $81,480 and a minimum wage worker needs to work at least 131 hours per
week-3.3 jobs to afford a 2-bedroom FMR apartment. The report underscores the crisis facing
Orange County Residents, and the housing crisis facing Santa Ana residents is especially acute.
Many of the families that we assist are in desperate need of decent, affordable housing, such as
the project that the developers propose with this Unit. In the City —a majority renter city,
significant need exists to address and provide housing opportunities for all economic segments of
the community. Families in the City use the majority of their incomes (over 50%) to pay for
housing costs. This is unsustainable and it has led to actual and economic homelessness.
As residents struggle to find available and affordable housing in the City, rents have continually
increased. We have heard stories of landlords demanding that tenants pay rents that are in excess
of 50-80%, or face eviction and almost certain homelessness or relocation out of the City, while
this Council has remained silent to requests for a moratorium on rent increases or just cause
eviction ordinance protections. As of April 2019, the average rent for a one -bedroom apartment
in the City is $1,938 per month, while the average rent for a two -bedroom apartment is $2,582
per month.2 This Unit proposes to help ameliorate the crisis by adding 552 units to the housing
stock in the City. Accordingly, the City Council should embrace this Unit and not try to find
ways to crush it, as it will bring much needed affordable multi -family housing to the residents of
the City.
Pacific Companies and Jamboree Housing Corporation Are Eligible for a Density Bonus
Exception
The Density Bonus is a state mandate. An applicant who meets the requirements of the state law
is entitled to receive the density bonus and other benefits as a matter of right. (See Gov. Code
§65195, et seq.) A jurisdiction is required to grant the concession or incentive requested by the
applicant unless the jurisdiction makes a written finding based on substantial evidence of a
specific, adverse impact upon public health and safety, or on historic resources. (Gov. Code
§65195(d)(1)(B).)
The Staff Report for the June 4, 2018 Planning Commission hearing declared that there are no
historic resources in the immediate vicinity that this project would affect and the project's
designs and operations, will not be detrimental to the public health or safety. Moreover, none of
the councilmembers during the City Council meeting of May 7, expressed concern with the
project's impact on public health, public safety, or nearby historic resources. Because the Unit is
a 100% affordable development and the City Council has failed to produce the required written
findings based on substantial evidence of a specific, adverse impact of the Unit on public health,
public safety, or historic resources, the City Council should grant the parking concession
requested by the developers as a matter of right.
z See www.rentjungle.com/average-rent-in-santa-ana-rent-trends/ (Last visited on June 19, 2019).
601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Pax (714) 541-5157
Letter of Support re Item 60A Request for Approval of a Density Bonus Agreement to Allow a
552 Unit Affordable Rental Project at 2110, 2114, and 2020 East First Street
July 16, 2019
p. 3
Denying This Project Would Constitute Intentional Housing Discrimination
A. Denial of the 552 Unit Affordable Rental Proiect Constitutes Intentional Land Use
Discrimination against low-income people under Government Code section 65008
If the City denies the Unit, it would constitute intentional land use discrimination against low-
income persons under Government Code section 65008. Section 65008 generally prohibits and
declares as null and void various forms of discrimination against housing by cities, counties and
local agencies, including discrimination based upon the method of financing of any residential
development, or the intended occupancy of any residential development of persons or families of
low, moderate or middle income. This prohibition applies to any power exercised under the
authority of Title 7. §§ 65008(a)(1) and (2). Additionally, Section 65008 prohibits local
government agencies, including cities and counties from taking actions, including in the
administration of ordinances, or approval of developments, which prohibit or discriminate
against any residential development or shelter because the development is intended for
occupancy by "person[s] or families of very low, low, moderate, or middle income." (Gov. Code
§65008(b)(1) (Q.)
B. Denial of the 552 Unit Affordable Rental Project Would Violate Santa Ana's Duty to
Affirmatively Further Fair Housing
Additionally, should the City Council deny the developers' request for a permit to construct the
Unit, it would constitute fair housing discrimination, as it violates the City of Santa Ana's duty to
affirmatively further fair housing under federal and state law.' Affirmatively furthering fair
housing requires the City to take meaningful action that, taken together, addresses significant
disparities in housing needs and in access to opportunity, replacing segregated living patterns
with truly integrated and balanced living patterns, transforming racially and ethnically
concentrated areas of poverty into areas of opportunity, and fostering and maintaining
compliance with civil rights and fair housing laws. The federal Fair Housing Act prohibits
practices that "actually or predictably result[] in a disparate impact on a group of persons or
creates, increases, reinforces, or perpetuates segregated housing patterns."4 Further, California
Fair Employment and Housing Act makes it "unlawful ... to discriminate through public or
private land use practices, decisions, and authorizations `that have the effect, regardless of intent,
of unlawfully discriminating on the basis of [a] protected class."i5 Accordingly, denying the
developers the opportunity to build this needed Unit will continue to reduce the amount of
housing that would otherwise be available for lower -income households in the City, and
therefore could be construed as having disparate negative impact on certain racial and ethnic
groups.
42 U.S.C. 3608 and Executive Order 12892
4 Dept. of Housing and Urban Development Regs, Implementation of the Fair Housing Act's Discriminatory Effects
Standard, 24 C.F.R. § 100.500(a), 78 Fed. Reg. 11482 (Feb. 15, 2013).
'Gov. Code § 12955.8, subd. (b).
601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157
Letter of Support re Item 60A Request for Approval of a Density Bonus Agreement to Allow a
552 Unit Affordable Rental Project at 2110, 2114, and 2020 East First Street
July 16, 2019
p. 4
Further, the denial of the Unit violates recently enacted state legislation that codifies the directive
imposed by the Fair Housing Act on jurisdictions to affirmatively further fair housing. (Gov.
Code §65583) The City's current Housing Element underscores the need of the City to ensure its
legal compliance with the requirement to further fair housing opportunity. In the housing
element, the city notes that 58% of its renters pay more than 30% of their income on rent.6
These conditions ...lead to a number of hardships for the households and their families,
including insufficient income to afford other necessities, undue burden on families, and
accelerated use and wear on housing.' As such, the city has identified a deft in housing for
extremely low, very low, and low-income households that the law requires it to address.
Conclusion
There is a scarcity of quality affordable housing units in the City. The City's recent Housing
Element noted there is a scarcity of affordable housing units in the City: "[H]ousing affordability
is a critical issue for many households. The lack of affordable housing can create undesirable
situations, including overpayment and overcrowding."8 Five hundred and fifty-two units of
affordable housing could lessen the issues of overpayment and overcrowding by
increasing the supply of affordable housing for a community in desperate need of it.
Further, as set forth in the many staff reports associated with analysis of the Unit,
approval of this item supports the City's efforts to meet General Plan Goal Nos. 3; and 5,
and Objective No. 3. The City's residents desperately need help with affordable housing
and addition to the aged multifamily housing stock in the City, and they need it now. The
Council should approve this Unit now.
Sincerely,
/s/
Ugochi Anaebere-Nicholson
Directing Attorney, Housing and Homelessness Prevention Unit
e Santa Ana Housing Element (2014-2021), p. 20.
Ibid.
a Id. at p. 19.
601 Civic Center Drive West • Santa Ana, CA 92701-4002 • (714) 541-1010 • Fax (714) 541-5157
Orozco, Norma
From: Linda T <
Sent: Tuesday, July 16, 2019 3:42 PM
To: eComment
Cc: Cesar C; Isuri Kennedycommission
Subject: RE: Comments on Proposed East First Street Development
Attachments: Ltr_East First Street_19.7.16.pdf
Dear City of Santa Ana,
Please find attached the Kennedy Commission's comment letter regarding tonight's City Council Agenda Item
#60: Approve Density Bonus Agreement to Allow a 552 Unit Affordable Rental Project at 2110, 2114 and 2020
East First Street.
Please reply to confirm receipt of this email.
Thank you.
Sincerely,
Linda
2
July 16, 2019
www.kennedycommission.org
17701 Cowan Ave., Suite 200
Irvine, CA 92614
949 250 0909
Mayor Miguel Pulido and Council Members
City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
RE: Support for Density Bonus Agreement for Proposed Affordable Rental Development at
2110, 2114 and 2020 East First Street
Dear Mayor Pulido and Council Members
The Kennedy Commission (the Commission) is a broad based coalition of residents and community
organizations that advocates for the production of homes affordable for families earning less than
$20,000 annually in Orange County. Formed in 2001, the Commission has been successful in
partnering and working with Orange County jurisdictions to create effective housing and land -use
policies that has led to the new construction of homes affordable to lower income working families.
The Commission would like to commend the City's leadership and support in encouraging and
facilitating the development of homes affordable to lower income working families. As the City
continues its great efforts in addressing the City's workforce affordable housing needs, the
Commission recommends the City to support the Density Bonus Agreement on the proposed
2110, 2114, and 2020 East First Street development. The proposed development will provide 552
much -needed affordable homes for very low- and low-income working families and households in
the City. The development of these quality homes will not only provide safer and healthier homes
but it will also significantly improve the quality of life for many lower income households in the
City.
Ranked among the top ten least affordable metropolitan areas in the country', Orange County is
suffering from an affordable housing crisis. A resident must earn at least $39.17 per hour to afford
a two -bedroom apartment at a fair market rent of $2,037 a month.' Orange County renters have
also paid an average of $355 more a month and rents are projected to continually rise.3 During 2000
to 2015, Orange County's inflation -adjusted median rent increased by 28 percent while the median
renter income decreased by 9 percent.4
The impact of this crisis is dire. Many Orange County renters are rent burdened where they spend
more than 30% of their income towards housing costs. Struggling to make ends meet, many
households take on more jobs or live in overcrowded substandard households. With high rents, low
vacancy rates and an increasing number of residents needing affordable homes, the supply of
affordable homes being built for lower income households has also not kept up with the demand.
2019 Out of Reach, National Low Income Housing Coalition, p. 15, June 2019.
3 2019 Out of Reach, National Low Income Housing Coalition, p. 39, June 2019.
3 Southern Californians Scrimp to Get By As Average Rents flit $1,900, Orange County Register, February 15, 2018.
4 California Rents Have Risen to Some of the Nation's Highest. Here's Flow that Impacts Residents, Orange County Register, February 15, 2018.
An additional 111,996 affordable rental homes are needed to address Orange County's housing
needs for lower income renters.'
While Orange County is experiencing a shortage of quality housing opportunities at all levels of
affordability, the barriers to finding affordable rental homes are greatest for the County's working
poor families earning minimum wages and for households on fixed incomes. Categorized as
extremely low-income for a household of four, these households earn less than $35,600 a year,
which is 30 percent of Orange County's Area Median Income of $97,900,6 Many factors
contributing to the affordable housing crisis include: limited affordable housing options, high cost
of living and a growing low -wage job sector in Orange County. These issues are all placing a huge
burden on the quality of life for very low- and extremely low-income households.
The Commission looks forward to partnering with the City to increase the development of
affordable homes for lower income households in the City. Please keep us informed of any updates
and meetings regarding the proposed 2110, 2114 and 2020 East First Street Apartments.
If you have any questions, please free to contact me at (949) 250-0909 or
cesarc@lcennedycommission.org.
Sincerely,
Cesar Covamlbias
Executive Director
5 Orange County's Housing Emergency Update, California Housing Partnership, p. 1, May 2019.
6 State Income Limits for 2019, Department of Housing and Community Development, May 6, 2019.