HomeMy WebLinkAboutNS-2994 - Amending Chapter 41, Article XVIII.I (Housing Opportunity Ordinance)ORDINANCE NO. NS-2994
AN ORDINANCE OF THE CITY OF SANTA ANA
AMENDING CHAPTER 41, ARTICLE XVIII.I (HOUSING
OPPORTUNITY ORDINANCE) OF THE SANTA ANA
MUNICIPAL CODE TO MODIFY APPLICABILITY AND
VARIOUS IMPLEMENTATION PROVISIONS OF THE
ORDINANCE
THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS
FOLLOWS:
Section 1. The City Council of Santa Ana hereby finds, determines and
declares as follows:
A. In Santa Ana, as in other cities in California, there has been a deficit in much
needed housing. It is difficult to meet the many housing needs which include,
but are not limited to: increasing the housing supply and mix of housing types,
rental or ownership opportunities, affordability, promoting infill development
and socio-economic equity, the protection of environmental resources, and
the encouragement of efficient development patterns.
B. In 2015, the City amended its Housing Opportunity Ordinance (HOO) in the
Santa Ana Municipal Code (SAMC Sections 41-1900 through 41-1910) to
require the construction of affordable units on or off -site or the payment of an
in -lieu fee in the amount of $5.00 per square foot of habitable space for
projects consisting of 5-20 units, and the payment of an in -lieu fee in the
amount of $15.00 per square foot of habitable space for projects with over
twenty (20) units.
C. In addition to the housing crisis, international, national, state, and local health
and governmental authorities are responding to an outbreak of respiratory
disease caused by a novel coronavirus named "SARS-Co V-2," and the
disease it causes has been named "coronavirus disease 2019", abbreviated
COVID-19 ("COVID-19").
D. On March 4, 2020, the Governor of the State of California declared a state of
emergency to make additional resources available, formalize emergency
actions already underway across multiple state agencies and departments,
and help the state prepare for the broader spread of COVID-19.
E. On March 13, 2020, the President of the United States of America declared a
national emergency and announced that the federal government would make
emergency funding available to assist state and local governments in
preventing the spread of and addressing the effects of COVID-19.
Ordinance No. NS-2994
Page 1 of 17
F. The Orange County Board of Supervisors and Department of Public Health
declared a local emergency and local public health emergency to aid the
regional healthcare and governmental community in responding to COVID-19.
G. On March 17, 2020, the Santa Ana City Council proclaimed the existence of a
local emergency to ensure the availability of mutual aid and support an
expedient response to the COVID-19 pandemic.
H. As a result of the public health emergency and the precautions recommended
by health authorities, City Hall and the public counters for development
processing and permit applications in Santa Ana were closed to the public
from March 18 through June 1, 2020, thereby limiting the processing of
development applications, delaying development projects that were already
approved, and thereby impacting development activities in the city for over 10
weeks.
I. The City Council of the City of Santa Ana is concerned about the unplanned
detrimental effects caused by COVID 19 on the local economy and the
development and construction of housing in the City. These unforeseen
issues are of grave concern as it is imperative for the City to maintain a
steady stream of housing units in the pipeline at all times.
J. As a result of current world events, construction of single-family homes
plummeted to its slowest pace in several years. Single-family housing starts
dropped 17.5 percent while multifamily housing starts (5 or more units in a
structure) fell 32.1 percent in April and were down 3.9 percent from a year
earlier.
K. Lack of housing units in the City of Santa Ana is a threat to public health and
safety and requires urgent intervening action by the City Council.
L. In an effort to combat the anticipated severe negative effects that a reduction
in the availability of housing units in the City of Santa Ana will cause to the
City and its residents, the City Council has determined that a reduction in the
HOO fee will serve as an incentive and a catalyst for builders to initiate
construction of housing in the City and for the City to continue providing
quality housing opportunities in the City.
M. The Santa Ana City Council finds that the construction of new housing units
will also stimulate the economy by providing jobs and the City is committed to
encouraging that end result.
N. The Santa Ana City Council finds that requiring projects with over twenty units
to pay the full $15.00 per square foot in -lieu housing fee would pose a serious
Ordinance No. NS-2994
Page 2 of 17
threat to the public interest, health, safety and welfare for the following
reasons:
(1) It would adversely impact the development of housing projects in the city;
(2) It would adversely affect the number of housing developments in the
pipeline;
(3) It would cause a decline in the available housing stock;
(4) It would put residents at risk for homelessness;
(5) It would cause a decline in housing units available at diverse price points;
and
(6) It would risk the public health, safety and welfare of the City residents
needing adequate housing.
O. The City Council of the City of Santa Ana desires to use the inclusionary
housing fund to increase and improve the supply of housing affordable to
moderate, low, very low, and extremely low income households in the city
with the priority on creation of affordable housing opportunities or units from
the existing market rate housing stock rather than construction of new
affordable housing units. This includes, but is not limited to, the purchase and
rehabilitation of units for sale and the recapturing of affordable housing units
at risk of market conversion. Monies may also be used to pay for one-time
programs for code enforcement, and quality of life and general health and
safety activities.
P. The Request for Council Action for this ordinance dated August 18, 2020, and
duly signed by the Executive Director of the Planning and Building Agency
shall, by this reference, be incorporated herein, and together with this
ordinance, any amendments or supplements, and oral testimony constitute
the necessary findings for this ordinance.
Section 2. The proposed ordinance has been reviewed with respect to
applicability of the California Environmental Quality Act ("CEQA") and the State CEQA
Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.). The project
is exempt from CEQA as it can be seen with certainty that there is no impact on the
environment [Section 15061(b) (3)] and a Notice of Exemption will be filed upon adoption
of this ordinance.
Section 3. The Santa Ana City Council hereby finds, determines and declares
that Santa Ana Municipal Code Chapter 41, Article XVIII.I is hereby amended and
restated, in its entirety as follows:
Ordinance No. NS-2994
Page 3 of 17
ARTICLE WILL - HOUSING OPPORTUNITY ORDINANCE
Sec. 41-1900. - Purpose.
This article establishes standards and procedures to encourage the development of
housing that is affordable to a range of households with varying income levels. The
purpose of this article is to encourage the development and availability of affordable
housing by requiring the inclusion of affordable housing units within new developments
or the conversion of rental units to condominium ownership when the number of units
exceed the densities permitted under the General Plan.
Sec. 41-1901. - Definitions.
As used in this article, the following terms shall have the following meanings:
Adjusted for household size appropriate for the unit means a household of one
person in the case of a studio unit, two (2) persons in the case of a one -bedroom unit,
three (3) persons in the case of a two -bedroom unit, four (4) persons in the case of a
three -bedroom unit, and five (5) persons in the case of a four -bedroom unit.
Administrative procedures means those regulations promulgated by the executive
director pursuant to section 41-1910 of this article.
Affordable housing cost means the total housing costs paid by a qualifying
household, which shall not exceed the fraction of gross income specified, as follows:
Extremely low-income households. Thirty (30) percent of the income of a household
earning thirty (30) percent of the Orange County median income adjusted for family
size appropriate for the unit.
Very low-income households. Thirty (30) percent of the income of a household
earning fifty (50) percent of the Orange County median income adjusted for family
size appropriate for the unit.
Low-income households. Thirty (30) percent of the income of a household earning
eighty (80) percent of the Orange County median income for family size appropriate
for the unit.
Moderate —income households. Thirty (30) percent of the income of a household
earning one hundred twenty (120) percent of the Orange County median income
adjusted for family size appropriate for the unit.
The qualifying limits for very low-income, low-income and moderate -income
households are established and amended annually pursuant to Section 8 of the
United States Housing Act of 1937. The limits are published by the Secretary of
Housing and Urban Development.
Developer means any association, corporation, firm, joint venture, partnership,
person, or any entity or combination of entities, which seeks city approval for all or part
of a residential project.
Ordinance No. NS-2994
Page 4 of 17
Development Agreement means an agreement approved by the City Council
between a property owner and the City pursuant to Government Code section 65864, et
seq.
Entitled Residential Project means a development project that includes residential
units subject to the provisions and applicability of this Article WILL that received
entitlement approvals by City Council action between August 4, 2015 and August 17,
2020 to construct the residential project and which has not been issued a building
permit prior to August 18, 2020. A list of the currently Entitled Residential Projects is
attached hereto as Exhibit A and is incorporated by reference.
Executive director means the executive director of community development for the
city.
General Plan means the adopted general plan for the City of Santa Ana.
Inclusionary housing agreement means a legally binding agreement between the
developer and the city, in a form and substance satisfactory to the executive director
and the city attorney, and containing those provisions necessary to ensure that the
requirements of this article are satisfied, whether through the provision of inclusionary
units or through an approved alternative method.
Inclusionary housing fund means the fund created by the city in which all fees
collected in compliance with this article shall be deposited.
Inclusionary housing plan means the plan submitted by the developer, in a form
specified by the executive director, detailing how the provisions of this article will be
implemented for the proposed residential project.
Inclusionary unit means a dwelling unit that will be offered for sale or rent to very
low, low, or moderate income households, at an affordable housing cost, in compliance
with this article.
Low-income units and very low-income units means inclusionary units restricted to
occupancy by low or very low-income households, respectively, at an affordable
housing cost.
Market rate units means dwelling units in a residential project that are not
inclusionary units.
Moderate -income units means inclusionary units restricted to occupancy by
Moderate -income households at an affordable housing cost.
Prior project means any project for which an application was submitted and the
application was deemed complete prior to August 4, 2015.
Regulatory agreement means an agreement entered into between the City of Santa
Ana or the Santa Ana Community Development Agency and a developer by which the
developer covenants to keep certain housing units at an affordable housing cost for a
specified period of time.
Rehabilitated units/rehabilitation means the improvement of a unit in substandard
condition to a decent, safe and sanitary level. Units are in substandard condition when,
while they may be structurally sound, they do not provide safe and adequate shelter,
Ordinance No. NS-2994
Page 5 of 17
and in their present condition endanger the health, safety or well-being of the
occupants.
Residential project/project means any of the following:
A subdivision resulting in the creation of five (5) or more residential lots or
residential condominium units; or
The new construction of a project consisting of five (5) or more multi -family units; or
The new construction of five (5) or more separate houses or dwelling units; or
The conversion of five (5) or more existing residential rental units to condominium
ownership.
Target area means that area designated by the city from time to time, on an as -
needed basis, as a priority area for rehabilitation due to health and safety concerns.
Total housing costs the total monthly or annual recurring expenses required of a
household to obtain shelter. For a rental unit, total housing costs shall include the
monthly rent payment and utilities paid by the tenant (excluding telephone and
television). For an ownership unit, total housing costs shall include the mortgage
payment (principal and interest), insurance, homeowners' association dues (if
applicable), private mortgage insurance (if applicable), taxes, utilities, an allowance for
maintenance and any other related assessments.
Sec. 41-1902. - Applicability and inclusionary unit requirements.
(a) Applicability. The requirements of this article shall apply to any new residential
project comprised of twenty (20) or more residential lots or residential units located
within the city, including new construction, and condominium conversions which
exceed the General Plan prescribed densities.
(b) Applications. The requirements of this article shall apply to any new residential
project proposed in connection with an application to do any of the following:
(1) Increase the permitted residential density of the subject property above the
density permitted by the General Plan at the time of the application. The
inclusionary requirements shall only apply to the incremental increase in the
number of units beyond that which is allowed by the applicable density
permitted by the General Plan.
(2) Increase the permitted percentage of residential development allowed for a
mixed -use development above the percentage at the time of the application.
The inclusionary requirements shall only apply to the incremental increase in
the number of units beyond that which is allowed by the density permitted by
the General Plan.
Ordinance No. NS-2994
Page 6 of 17
(3) Convert rental units to condominium ownership. The inclusionary
requirements shall only apply to the incremental increase in the number of units
beyond that which is allowed by the density permitted by the General Plan.
(c) Units for sale. If the new residential project consists of units for sale, then a
minimum of ten (10) percent of the total number of units in the project shall be sold
to moderate income households.
(d) Rental units. If the new residential project consists of rental units, then a minimum
of fifteen (15) percent of the units shall be rented to low-income households, or ten
(10) percent rented to very low-income households.
(e) Rounding of quantities in calculations. In calculating the required number of
inclusionary units, fractional units shall be rounded -up to the next whole unit. The
developer may choose to pay an in -lieu fee set forth in section 41-1904(c) for the
fractional units, which shall be calculated based on the number of habitable square
feet applicable in each case.
(f) Displacement of existing inclusionary units. Notwithstanding any other provision of
this article, any residential project subject to this article that results in the
displacement of very low and/or low income household(s) shall be required to
provide on -site inclusionary units as required by this article.
(g) Compliance with article. All inclusionary units required by this article shall be sold
or rented in compliance with this article.
Sec. 41-1903. - Exempt projects.
The following are exempt from the requirements of this article
(a) Applications deemed complete. Applications that include a residential project
for which a development application has been deemed complete prior to
November 28, 2011.
(b) Development agreements. A residential project that is the subject of a
Development Agreement under applicable provisions of the California
Government Code that expressly provides for an exclusion to this article or
provides for a different amount of inclusionary units from that specified by this
article, provided the Development Agreement was adopted on or before
November 28, 2011.
(c) Project with regulatory agreement. A residential project for which a regulatory
agreement has been approved, provided that the regulatory agreement is
effective at the time the residential project would otherwise be required to
comply with the requirements of this article, and there is no uncured breach of
the regulatory agreement before issuance of a certificate of occupancy for the
project. This may include a residential project that has obtained a density bonus
under article XVI.I of the Santa Ana Municipal Code. Such projects cannot be
used to satisfy the inclusionary requirement for another project.
Ordinance No. NS-2994
Page 7 of 17
(d) Adaptive Reuse. Adaptive reuse development projects pursuant to Chapter
41, Article XVI.II — Adaptive Reuse.
Sec. 41-1904. - Options to satisfy inclusionary requirements.
(a) On -site units. The primary means of complying with the inclusionary requirements
of this article shall be the provision of on -site inclusionary units in accordance with
section 41-1901, above. A developer may only satisfy the requirements of this
article by means of an alternative to on -site inclusionary units in accordance with
the requirements and procedures of this section.
(b) Off -site units.
1. New units. The developer may satisfy the inclusionary unit requirements for the
project, in whole or in part by constructing the required new inclusionary
housing at a different location within the city borders at the ratio of one square
foot of habitable inclusionary unit space for each required habitable square foot.
While the total habitable square footage area of the required new inclusionary
units must be the same as the sum -total of the number of habitable square feet
for the project as directed by this ordinance, the number of units and bedrooms
associated with the off -site units may be approved by the review authority of the
city, consistent with the type of affordable housing needed at the time of project
review.
2. Rehabilitated units outside a designated target area. The developer may satisfy
the inclusionary unit requirements for the project, in whole or in part by
substantially rehabilitating existing housing units elsewhere within the borders
of the city at a rate of one and one-half (1'/2) habitable square feet per each
required habitable square foot of inclusionary units.
3. Rehabilitated units within a designated target area. Upon application, the
developer may satisfy the inclusionary unit requirements for the project, in
whole or in part by substantially rehabilitating existing housing units elsewhere
within the borders of the city at a rate of one habitable square foot per each
required habitable square foot of affordable inclusionary units.
(c) In -lieu fee.
(1) More than 20 units. A Residential Project comprised of more than twenty (20)
residential lots or residential units, the developer may elect to satisfy the
Inclusionary Unit requirements for the Project, in whole or in part, by payment of
a fee in lieu of constructing some or all of the required units. The amount of the
fee allowed by this section shall be five dollars per square foot ($5.00/ft. 2 ) of
the sum total of the number of habitable square feet within the entire Project, as
measured from the exterior walls of the residential units. This calculation does
not include exterior hallways, common areas, landscape, open space or exterior
stairways.
Ordinance No. NS-2994
Page 8 of 17
(2) Entitled Residential Projects. The applicant(s) of an Entitled Residential
Project (see Exhibit A) may either construct the inclusionary units or pay an in
lieu fee as follows:
(i) Twenty (20) or fewer units. In the case of an Entitled Residential Project
containing between five (5) and twenty (20) residential lots or residential
units, the Developer may elect to satisfy the Inclusionary Unit requirements
for the Project, in whole or in part, by payment of a fee in lieu of constructing
some or all of the required units. The amount of the fee allowed by this
section shall be five dollars per square foot ($5.00/ft.) of the sum total of the
number of habitable square feet within the entire Project, as measured from
the exterior walls of the residential units. This calculation does not include
exterior hallways, common areas, landscape, open space or exterior
stairways.
(il) More than 20 units. In the case of an Entitled Residential Project
comprised of more than twenty (20) residential lots or residential units, the
Developer may elect to satisfy the Inclusionary Unit requirements for the
Project, in whole or in part, by payment of a fee in lieu of constructing some
or all of the required units. The amount of the fee allowed by this section
shall be five dollars per square foot ($5.00/ft.) of the sum total of the number
of habitable square feet within the entire Project, as measured from the
exterior walls of the residential units. This calculation does not include
exterior hallways, common areas, landscape, open space or exterior
stairways. The in lieu fee amount allowed herein by this subsection shall
revert to fifteen dollars per square foot ($15.00) on October 1, 2021 for any
construction which adds net residential units, which has City -approved
entitlements, that has not been issued a building permit by October 1, 2021.
(iii) A Residential Project that has been entitled and approved with conditions
to pay a specific in lieu fee or has a city council approved Development
Agreement to pay a specific in -lieu fee shall comply with the conditions or
the Development Agreement as approved and shall not be modified by this
Ordinance.
(3) Timing of payment. The developer shall pay the in -lieu fees allowed by this
section prior to issuance of the building permit for any construction which adds
net residential units. The developer may provide input regarding what project
the in lieu fees should be applied towards, but such input shall not be
dispositive. The in lieu fees collected by the city are city funds over which the
city has complete and absolute discretion.
(4) Inclusionary housing fund. Fees collected in compliance with this section shall
be deposited in the inclusionary housing fund.
Sec. 41-1904.1. - Inclusionary housing development incentives for production of units.
Ordinance No. NS-2994
Page 9 of 17
(a) In order to make the production of new inclusionary units on -site or off -site or off -
site rehabilitated units, certain incentives, standards and concessions shall be
allowed and prescribed as set forth herein below. Such concessions shall not be
available to those developers that choose to pay an in lieu fee rather than build the
units. The developer may opt to take advantage of up to two (2) concessions among
the following possible concessions:
(1) Parking concession. One on -site parking space for each zero to one bedroom
unit; two (2) on -site parking spaces for each two (2) to three (3) bedroom unit;
two and one-half (2'/z) parking spaces for each four (4) or more bedroom unit.
(2) Concession on one of the following Zoning Code site development standards:
(i) Setback reduction of up to twenty-five (25) percent reduction on subject
property;
(ii) Height increase of up to twenty (20) additional feet.
(b) A developer of a for sale Residential Project proposing to provide on -site
Moderate Income Units and a surrounding community benefit may opt to take
advantage of up to three (3) of the above concessions. The surrounding community
benefit will include but not be limited to park improvements, urban community
gardens, developer -funded down payment assistance, or subsidy of services,
activities or programs.
Sec. 41-1905. - Housing plan and housing agreement
(a) Submittal and execution. The developer shall comply with the following
requirements:
(1) Inclusionary housing plan. The developer shall submit an inclusionary housing
plan in a form specified by the executive director, detailing how the provisions of
this article will be implemented for the proposed residential project. The
inclusionary housing plan and its supportive documents, plans, and details shall
be submitted at the same time as the site plan and application materials for the
original project. All inclusionary housing plans shall be subject to the approval of
the executive director and subject to appeal processes and procedures set forth
in the Santa Ana Municipal Code.
(2) Inclusionary housing agreement. The developer shall execute and cause to be
recorded an inclusionary housing agreement. The inclusionary housing
agreement shall be a legally binding agreement between the developer and the
city, executed by the city manager, or his or her designee, and in a form and
substance satisfactory to the executive director and the city attorney, and
containing those provisions necessary to ensure that the requirements of this
article are satisfied, whether through the provision of inclusionary units or
through an approved alternative method.
Ordinance No. NS-2994
Page 10 of 17
(b) Discretionary approvals. No discretionary approval shall be issued for a residential
project subject to this article until the developer has submitted an inclusionary
housing plan.
(c) Issuance of building permit. No building permit shall be issued for a residential
project subject to this article unless the executive director has approved the
inclusionary housing plan, and any required inclusionary housing agreement has
been recorded.
(d) Issuance of certificate of occupancy. A certificate of occupancy shall not be issued
for a residential project subject to this article unless the approved inclusionary
housing plan has been fully implemented.
Sec. 41-1906. - Standards.
(a) Location within project, relationship to non-inclusionary units. All inclusionary units
shall be:
(1) Reasonably dispersed throughout the residential project;
(2) Proportional, in number of bedrooms, gross floor area of habitable space, and
location, to the market rate units;
(3) Comparable to the market rate units included in the residential project in terms
of design, materials, finished quality, and appearance; and
(4) Permitted the same access to project amenities and recreational facilities, as
are market rate units.
(b) Timing of construction. All inclusionary units in a residential project shall be
constructed concurrent with, or before the construction of the market rate units. If
the city approves a phased project, a proportional share of the required inclusionary
units shall be provided within each phase of the residential project.
(c) Location outside the proposed original project. For projects where the developer
proposes to either produce new inclusionary units or rehabilitate existing off -site
units to meet the inclusionary affordable housing requirements of this ordinance, the
off -site project(s) containing the required inclusionary units shall be subject to the
following requirements:
(1) The sum -total area (in habitable square feet) of all the newly constructed off -
site inclusionary units shall be the same number of habitable square feet of
inclusionary area as required by this ordinance. For the purpose of the
calculation of the number of square feet of required inclusionary housing, the
total gross habitable square feet of the housing units of the original market rate
project shall be used, as measured from exterior walls to exterior walls of the
market units provided as the base for calculation either ten (10) percent for very
low income or fifteen (15) percent for low income inclusionary units. The
common areas, exterior hallways, stairways, patios, and balconies shall not be
calculated in determining the number of required square feet of inclusionary
housing production. All new or rehabilitated units must meet all current zoning
and general plan standards.
Ordinance No. NS-2994
Page 11 of 17
(2) While the total number of square feet of inclusionary housing requirement is
calculated based on the requirements of this ordinance, the number of units,
bedrooms and other amenities on the proposed off -site inclusionary housing
location shall be approved by the review authority commensurate with the size
and type of units most in demand at the time of submittal of the application.
(3) Any off -site affordable inclusionary housing project shall be substantially
comparable to the market rate units included in the residential project in terms
of quality of design, materials and finishes.
(4) If tenants are displaced due to rehabilitation of housing to meet the
inclusionary unit requirement, the developer shall be responsible for relocation
costs as required by state law.
(5) No city, housing authority, or public funds, subsidies, or participation of any
kind shall be expended on the production or building of any inclusionary
housing projects associated with meeting the inclusionary unit requirement.
(d) Timing of construction. All inclusionary units in a residential project or proposed
off -site new inclusionary units or rehabilitated units shall be constructed concurrent
with, or before the construction of the market rate units. If the city approves a
phased project, a proportional share of the required inclusionary units shall be
provided within each phase of the residential project.
(e) Units for sale.
(1) Time limit for inclusionary restrictions. A unit for sale shall be restricted to the
target income level group at the applicable affordable housing cost for a
minimum of fifty-five (55) years.
(2) Certification of purchasers. The developer and all subsequent owners of an
inclusionary unit offered for sale shall certify, on a form provided by the city, the
income of the purchaser and that such owners will live in such inclusionary unit
as their primary residence.
(3) Resale price control. In order to maintain the availability of inclusionary units
required by this article, the resale price of an owner occupied inclusionary unit
shall be limited to the lesser of the fair market value of the unit as established
by a licensed real estate agent based upon three (3) comparable properties or
the restricted resale price. For these purposes, the restricted resale price shall
be the applicable affordable housing cost.
(4) Inheritance of inclusionary units. Upon the death of an owner of an owner -
occupied inclusionary unit, title in the property may transfer to the surviving joint
tenant or heir (in the case of the death of a sole owner or all owners of the
household).
(5) Forfeiture. If an inclusionary unit for sale is sold for an amount in excess of the
resale price controls required by this section, the buyer and the seller shall be
jointly and severally liable to the city for the amount in excess of the affordable
housing cost at the time of such sale of the inclusionary unit. Recovered funds
shall be deposited into the inclusionary housing fund. Notwithstanding the
ordinance No. NS-2994
Page 12 of 17
foregoing, city may allow the buyer and seller to cure any violation of the resale
price controls within one hundred eighty (180) days.
(f) Rental units.
(1) Time limit for inclusionary restrictions. A rental inclusionary unit shall remain
restricted to the target income level group at the applicable affordable housing
cost for fifty-five (55) years.
(2) Certification of renters. The owner of any rental inclusionary unit shall certify,
on a form provided by the city, the income of all members of the household
above the age of eighteen (18) at the time of the initial rental and annually
thereafter.
(3) Forfeiture. Any lessor who leases an inclusionary unit in violation of this article
shall be required to forfeit to the city all money so obtained. Recovered funds
shall be deposited into the inclusionary housing fund.
(g) Execution and recording of documents. The executive director may require the
execution and recording of whatever documents are required to ensure
enforcement of this section; including but not limited to promissory notes, deeds of
trust, resale restrictions, rights of first refusal, options to purchase, and/or other
documents, which shall be recorded against all inclusionary units.
(h) General prohibitions.
(1) No person shall sell or rent an inclusionary unit at a price or rent in excess of
the maximum amount allowed by any restriction placed on the unit in
accordance with this article.
(2) No person shall sell or rent an inclusionary unit to a person or persons that do
not meet the income restrictions placed on the unit in accordance with this
article.
(3) No person shall provide false or materially incomplete information to the city or
to a seller or lessor of an inclusionary unit to obtain occupancy of housing for
which that person is not eligible.
(i) Principal residency requirement.
(1) The owner or lessee of an inclusionary unit shall reside in the unit for not less
than ten (10) out of every twelve (12) months.
(2) No owner or lessee of an inclusionary unit shall lease or sublease, as
applicable, an inclusionary unit without the prior permission of the executive
director.
Sec. 41-1907. - Reserved.
Sec. 41-1908. - Enforcement.
(a) Violation. Any violation of this article constitutes a misdemeanor.
Ordinance No. NS-2994
Page 13 of 17
(b) Forfeiture of funds. Any individual who sells an inclusionary unit in violation of this
article shall be required to forfeit any money in excess of the affordable housing
cost at such time. Any individual who rents an inclusionary unit in violation of this
article shall be required to forfeit all money so obtained. Recovered funds shall be
deposited into the inclusionary housing fund.
(c) Legal actions. The city may institute any appropriate legal actions or proceedings
necessary to ensure compliance with this article, including actions:
(1) To disapprove, revoke, or suspend any permit, including a building permit,
certificate of occupancy, or discretionary approval; and
(2) For injunctive relief or damages.
(d) Recovery of costs. In any action to enforce this article, or an inclusionary housing
agreement recorded hereunder, the city shall be entitled to recover its reasonable
attorney's fees and costs.
Sec. 41-1909. - Inclusionary housing fund
(a) Inclusionary housing fund. There is hereby established a separate fund of the city,
to be known as the inclusionary housing fund. All monies collected pursuant to this
article shall be deposited in the inclusionary housing fund. Additional monies from
other sources may be deposited in the inclusionary housing fund. The monies
deposited in the inclusionary housing fund shall be subject to the following
conditions:
(1) Monies deposited into the inclusionary housing fund must be used to increase
and improve the supply of housing affordable to moderate, low, very low, and
extremely low income households in the city as specified in the city's Affordable
Housing Funds Policies and Procedures. A priority will be on the creation of
affordable housing opportunities or units from the existing market rate housing
stock rather than construction of new affordable housing units. This includes,
but is not limited to, the purchase and rehabilitation of units for sale. Monies
may also be used to pay for one-time programs for code enforcement, quality of
life and general health and safety activities. Monies may also be used to cover
reasonable administrative or related expenses associated with the
administration of this article.
(2) The fund shall be administered by the executive director, or his or her
designee, who may develop procedures in the city's Affordable Housing Funds
Policies and Procedures to implement the purposes of the inclusionary housing
fund consistent with the requirements of this article and any adopted budget of
the city.
(3) Monies deposited in accordance with this section shall be used in accordance
with the Affordable Housing Funds Policies and Procedures, housing element,
consolidated plan, or subsequent plan adopted by the city council to construct,
rehabilitate, or subsidize affordable housing or to recapture affordable housing
Ordinance No. NS-2994
Page 14 of 17
at risk of market conversion, or to assist other government entities, private
organizations, or individuals to do so. Permissible uses include, but are not
limited to, assistance to housing development corporations, equity participation
loans, grants, pre -home ownership co -investment, pre -development loan funds,
participation leases, or other public -private partnership arrangements. The
inclusionary housing fund may be used for the benefit of both rental and owner -
occupied housing.
(4) A developer receiving funding from the Inclusionary Housing Fund shall
implement a local preference in their resident selection criteria and marketing
policies meeting guidelines established by the executive director.
(5) A developer opting for the in lieu payment option or receiving funding from the
Inclusionary Housing Fund, as well as its contractors and subcontractors at
every tier performing work for the new housing units is encouraged and should
provide an enforceable commitment that a skilled and trained workforce will be
used to complete a contract or project in accordance with Public Contract Code
§§ 2601-2602.
Sec. 41-1910. - Administrative.
(a) In -lieu fee calculation. The amount per square foot of the inclusionary housing in -
lieu fee shall be subject to city council review and consideration before the end of
calendar year 2018, but after June 30, 2018. Between July 1, 2018 and December
31, 2018, staff shall report on the effectiveness of this ordinance and provide
options for council consideration on the components of this ordinance, including, but
not limited to, the monetary amount of inclusionary in -lieu fee per square foot.
(b) Prior projects. The applicant(s) of any project for which a site plan review
application was submitted and such application was deemed complete prior to
August 4, 2015, may either construct the inclusionary units pursuant to the prior
housing opportunity ordinance (Ordinance No. NS-2825) or pay an in lieu fee
calculated by the formula under the prior housing opportunity ordinance (Ordinance
No. NS-2825) or request to revise its inclusionary housing plan and/or inclusionary
housing agreement and pay an in -lieu fee of nine dollars and thirty-five cents
($9.35) per square foot of habitable space for the entire project's inclusionary
housing obligation.
(c) Administration fees. The council may by resolution establish reasonable fees and
deposits for the administration of this article including an annual monitoring fee and
an inclusionary housing plan submittal fee.
(d) Monitoring/audits. At the time of initial occupancy, and annually thereafter, the city
will monitor the project to ensure that the income verifications are correct and in
compliance with the inclusionary housing administrative procedures. For ownership
units, the city shall monitor to verify that owner -occupancy requirements are
maintained. Developer/property owners are required to cooperate with the city in
promptly providing all information requested by the city in monitoring compliance
with program requirements. The city will conduct periodic random quality control
Ordinance No. NS-2994
Page 15 of 17
audits of inclusionary units to assure compliance with rules and requirements. Such
audits may include verification of continued occupancy in inclusionary units by
eligible tenants, compliance with the inclusionary housing plan and agreement, and
physical inspections of the residential project.
(e) Administrative procedures. The city manager is hereby authorized and directed to
promulgate administrative procedures for the implementation of this article.
Secs. 41-1911-41-1999. - Reserved.
Section 4. If any section, subsection, sentence, clause, phrase or portion of
this ordinance for any reason held to be invalid or unconstitutional by the decision of
any court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council of the City of Santa Ana hereby
declares that it would have adopted this ordinance and each section, subsection,
sentence, clause phrase or portion thereof irrespective of the fact that any one or more
sections, subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
Section 5. This ordinance shall become effective thirty (30) days after its
adoption.
Section 6. The Clerk of the Council shall certify the adoption of this ordinance
and shall cause the same to be published as required by law.
ADOPTED this 1 st day of September. 2020.
el ulido
..
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
By: (4 � ` , ca-`cam_
Lisa Storck
Assistant City Attorney
Ordinance No. NS-2994
Page 16 of 17
AYES: Councilmembers Bacerra, Penaloza Pulido, Solorio, Villegas (5)
NOES: Councilmembers Mendoza, Sarmiento (2)
ABSTAIN: Councilmembers None (0)
NOT PRESENT: Councilmembers None (0
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached
Ordinance No. NS-2994 to be the original ordinance adopted by the City Council of the
City of Santa Ana on September 1. 2020 and that said ordinance was published in
accordance with the Charter of the City of Santa Ana.
Date:—
J
Daisy Gomez
Clerk of the Council
City of Santa Ana
Ordinance No. NS-2994
Page 17 of 17