HomeMy WebLinkAboutFULL AGENDA PACKET)2021-07-26City Council Meeting
Agenda Packet
July 26, 2021
SPECIAL OPEN MEETING
CITY COUNCIL CHAMBER
22 Civic Center Plaza Santa Ana, CA 92701
5:00 PM
A
Vicente Sarmiento
Mayor
Thai Viet Phan
Councilmember—Ward 1
Jessie Lopez
Councilmember -Ward 3
Johnathan Ryan Hernandez
Councilmember -Ward 5
David Penaloza
Mayor Pro Tern - Ward 2
Phil Bacerra
Councilmember - Ward 4
Nelida Mendoza
Councilmember -Ward 6
Mayor and Council telephone: 714-647-6900
Agenda item inquiries: 714-647-6520
Sonia R. Carvalho Kristine Ridge Daisy Gomez
City Attorney City Manager Clerk of the Council
In compliance with the Americans With Disabilities Act (ADA), if you need special assistance to participate in this Meeting,
®contact Michael Ortiz, City ADA Program Coordinator, at (714) 647-5624. Notification 48 hours prior to the Meeting will enable
the City to make reasonable arrangements to assure accessibility to this meeting. The City Council agenda and supporting
documentation can be found on the City's website — www.santaana.org/citymeetings.
City Council 1 7/26/2021
CITY VISION AND CODE OF ETHICS
The City of Santa Ana is committed to achieving a shared vision for the organization and its
community. The Vision, Mission and Guiding Principles (Values) are the result of a thoughtful
and inclusive process designed to set the City and organization on a course that meets the
challenges of today and tomorrow, as follows:
Vision - The dynamic center of Orange County which is acclaimed for our: Investment in
youth • Safe and healthy community • Neighborhood pride • Thriving economic climate
Enriched and diverse culture • Quality government services
Mission - To deliver efficient public services in partnership with our community which ensures
public safety, a prosperous economic environment, opportunities for our youth, and a high
quality of life for residents.
Guiding Principles - Collaboration • Efficiency • Equity • Excellence • Fiscal Responsibility
Innovation • Transparency
Code of Ethics and Conduct - At the Special Municipal Election held on February 5, 2008,
voters approved an amendment to the City Charter which established the Code of Ethics and
Conduct for elected officials and members of appointed boards, commissions, and
committees to assure public confidence. The following are the core values expressed:
Integrity • Honesty • Responsibility • Fairness • Accountability • Respect • Efficiency
City Council 2 7/26/2021
PUBLIC COMMENTS — Members of the public who wish to address the City Council on the
Special Meeting items listed on the agenda may do so by:
1. MAILING OPTION written communications — Public comments may be mailed to: Office of
the Clerk of the Council, 20 Civic Center Plaza M-30, Santa Ana, CA 92701. All written
communications received via mail by 3:00 p.m. on the day of the meeting will be distributed
to the City Council and imaged into the City's document archive system which is available for
public review.
2. SENDING E-MAIL OPTION — Public comments may be sent via email to the City Clerk's
Office at eComment@santa-ana.org. Please note the agenda item you are commenting on in
the subject line of the email. All emails received before 3:00 p.m. on the day of the meeting
will be distributed to the City Council and imaged into the City's document archive system
which is available for public review.
3. PROVIDING LIVE COMMENTS OPTION — Members of the public may provide live
comments during the meeting by Zoom or Conference Call. To join by Zoom click on or type
the following address into your web browser https://us02web.zoom.us/j/315965149. To join
the Conference Call: Dial (669) 900-9128 and enter MEETING ID: 315 965 149#. You will be
prompted by the City Clerk when it is time to speak on items on the Special Meeting Agenda.
You may request to speak by dialing "9 from your phone or you may virtually raise your hand
from Zoom. After the Clerk confirms the last three digits of the caller's phone number or
Zoom ID and unmutes them, the caller must press `6 or microphone icon to speak. Callers
are encouraged, but not required, to identify themselves by name. Each caller will be
provided three (3) minutes to speak, unless due to the number of speakers wanting to speak
a decision is made to provide a different amount of time to speak.
Speaker queue will open at 4:30 p.m. YOU MUST JOIN ZOOM OR THE CONFERENCE
CALL BY 5:00 p.m. Speakers who are not in the speaker queue by 5:00 p.m. will not be
permitted to speak.
4. IN -PERSON PUBLIC COMMENTS OPTION - Members of the public can provide in -
person comments at the podium in the Council Chamber. The Council Chamber will have
seating available for members of the public to attend in -person up to full capacity. Face
coverings are optional for members of the public who enter City buildings who have been
vaccinated against COVID-19. Public comments are limited to three (3) minutes per speaker,
unless a different time is announced by the presiding chair. Speakers who wish to address
the Council must do so by submitting a "Request to Speak" card by 5:00 p.m. Cards
will not be accepted after the Public Comment Session begins without the permission of the
presiding chair.
About the Agenda
To download or view the attachments (staff report and other supporting documentation) for
each agenda item, you must select the agenda item to see the attachments to either open in
a new link (the eyeball 0) or download a pdf (the cloud symbol with the down arrow ).
City Council 3 7/26/2021
SPECIAL OPEN MEETING
CALL TO ORDER
ATTENDANCE Council Members
Mayor Pro Tern
Phil Bacerra
Johnathan Ryan Hernandez
Jessie Lopez
Nelida Mendoza
Thai Viet Phan
David Penaloza
Mayor Vicente Sarmiento
City Manager Kristine Ridge
City Attorney Sonia R. Carvalho
Clerk of the Council Daisy Gomez
PLEDGE OF ALLEGIANCE Mayor Sarmiento
PUBLIC COMMENT — Public comments will be held after staff presentations for the
item listed on the Special meeting agenda.
BUSINESS CALENDAR
1. Housing Opportunity Ordinance Work Study Session
Department(s): Planning and Building Agency
Recommended Action: Receive staff presentation, receive public comment from
stakeholders and the public, and provide direction to staff based upon the Council
Housing Ad Hoc Committee recommendations concerning:
1) to which housing projects the Housing Opportunity Ordinance (HOO) would apply,
2) rental and for -sale set -aside requirements,
3) building and in -lieu fee requirements, and
4) enhancements to implement the HOO.
ADJOURNMENT —Adjourn the Special City Council meeting.
City Council 4 7/26/2021
Clean Version (4:22 PM)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA AMENDING SECTIONS 41-1900, 41-1901,
41-1902, 41-1903, 41-1904, 41-1906, 41-1909, AND 41-
1910 OF THE SANTA ANA MUNICIPAL CODE RELATING
TO THE HOUSING OPPORTUNITY ORDINANCE
THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines,
and declares as follows:
A. On November 28, 2011, the Santa Ana City Council adopted Ordinance
No. NS-2825, known as the Housing Opportunity Ordinance and appearing as Article
XVIII.1 of Chapter 41 of the Santa Ana Municipal Code. The Housing Opportunity
Ordinance was adopted to implement the City's Housing Element Goal of providing
affordable housing within the City.
B. On September 1, 2015, the City Council adopted Ordinance No. NS-2881,
which amended the Housing Opportunity Ordinance in various respects, including
applicability, options to satisfy inclusionary requirements, and calculation of the in -lieu
housing fee. These amendments were intended to make the inclusionary housing
requirements more predictable for housing developers and to incentivize more
affordable housing production on -site in conjunction with new market rate housing
development.
C. In response to impacts of the COVID-19 pandemic on the development
and construction of housing in the City, including the reduction of housing starts, the
City Council adopted Ordinance No. NS-2994 on September 1, 2020. Ordinance No.
NS-2994 further amended the Housing Opportunity Ordinance to lower the in -lieu
housing fee for all projects from $15 to $5 per square foot, adjust the trigger of the
ordinance, and expand the eligible uses of in -lieu fees collected by the City.
D. In early 2021, at the direction of the City Council, an Ad Hoc Committee
for Housing was formed. The Ad Hoc Committee reviewed the Housing Opportunity
Ordinance and recommended certain changes. The Ad Hoc Committee's
recommendations were presented and discussed at the City Council Meeting on July 6,
2021.
E. On July 26, 2021, the City Council conducted a work-study session to
further evaluate the Committee's recommendations and to receive input from key
stakeholders and members of the public. The City Council provided direction to staff to
prepare amendments to the Housing Opportunity Ordinance concerning the applicability
Ordinance No. NS-XXX
Page 1 of 14
City Council 1 — 1 7/26/2021
and triggers for the ordinance, adjustments to the in -lieu fee calculation, set -aside units,
and options for satisfaction of inclusionary requirements.
F. On , 2021, the Planning Commission held a duly noticed public
hearing on the proposed amendments.
G. The Request for City Council Action for this ordinance dated
2021 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 City Council finds and determines that this ordinance is not
subject to the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a
direct or reasonably foreseeable indirect physical change in the environment, as there is
no possibility it will have a significant effect on the environment and it is not a "project',
as defined in Section 15378 of the CEQA Guidelines.
Section 3. The title of Article XVIII.1 of Chapter 41 of the Santa Ana Municipal
Code is amended to read in its entirety as follows:
2021 AFFORDABLE HOUSING OPPORTUNITY AND CREATION ORDINANCE
Section 4. Section 41-1900 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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
when the number of units exceed the densities permitted under the general plan, zoning
classification, or the conversion of rental units to condominium ownership.
Section 5. Section 41-1901 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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,
Ordinance No. NS-XXX
Page 2 of 14
City Council 1-2 7/26/2021
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 extremely low-income, 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.
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.
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.
Ordinance No. NS-XXX
Page 3 of 14
City Council 1-3 7/26/2021
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
extremely low, very low, low, or moderate -income households, at an affordable housing
cost, in compliance with this article.
Low-income units, very low-income units, and extremely low-income units means
inclusionary units restricted to occupancy by low, very low, and extremely 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,
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
Ordinance No. NS-XXX
Page 4 of 14
City Council 1-4 7/26/2021
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.
Section 6. Section 41-1902 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
Sec. 41-1902. - Applicability and inclusionary unit requirements.
(a) Applicability. The requirements of this article shall apply to any new
residential project comprised of five (5) or more residential lots or residential units which
has not received entitlement approvals by the City Council as of October 1, 2021,
including new construction, and condominium conversions which meets one or all of the
following applicability thresholds:
(1) A change in use to allow for residential or that exceeds the general plan or
zoning prescribed densities or percentage of residential development of the subject
property at the time of application.
(2) Implementation of the permitted residential density or percentage of
residential development allowed as a result of city initiated zone changes or city initiated
general plan amendments after November 28, 2011.
(3) Increase of the permitted percentage of residential development allowed
for a mixed -use development above the percentage permitted under the zoning
classification at the time of application.
(4) Development of new residential uses or increase of the permitted
residential density or percentage of residential development within an overlay zone
approved pursuant to Division 28 of Article I of this Chapter.
(5) Conversion of rental units to condominium ownership.
(b) Applications. The inclusionary requirements shall only apply to the
incremental units beyond that which is allowed as prescribed in Subsection (a) above.
(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,
ten (10) percent rented to very low-income households, or five (5) percent rented to
extremely low-income households.
Ordinance No. NS-XXX
Page 5 of 14
City Council 1-5 7/26/2021
(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.
Section 7. Section 41-1903 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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, provides for a different amount of
inclusionary units, or provides for a different specified method for determining the in -lieu
fee provisions of this ordinance, such as the timing of payment or the point in time for
determining the applicable in -lieu fee amount, to satisfy the inclusionary units from that
specified by this article.
(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.
(d) Adaptive Reuse. Adaptive reuse development projects pursuant to Chapter
41, Article XVI.II - Adaptive Reuse.
Ordinance No. NS-XXX
Page 6 of 14
City Council 1-6 7/26/2021
Section 8. Section 41-1904 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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 41-1902 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'/z) 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) Five (5) or more units. For a residential project comprised of five (5) or
more 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 total amount of the fee allowed
by this section shall be calculated using the In -Lieu Fee Schedule as shown below in
section 41-1904(c)(1)(i) multiplied by the sum total of the number of habitable square
feet within the entire project, as measured from the exterior walls of the residential units.
Ordinance No. NS-XXX
Page 7 of 14
City Council 1-7 7/26/2021
This calculation does not include exterior hallways, common areas, landscape, open
space or exterior stairways.
(i) In -Lieu Fee Schedule
Units
Fee Per Square Foot of
Habitable Area
—9
5-9
$6.00
10 — 14
$9.00
15 — 19
$12.00
20 or more
$15.00
(2) Timing of payment. The total fee amount for the entirety of a project is
calculated, determined, and set at the time of issuance of the first building permit for the
project. The developer shall pay all in -lieu fees allowed by this section for the entire
project prior to issuance of the first occupancy approval for any construction which adds
net residential units. The in -lieu fees collected by the city are city funds over which the
city has complete and absolute discretion.
(3) Inclusionary housing fund. Fees collected in compliance with this section
shall be deposited in the inclusionary housing fund.
Section 9. Section 41-1906 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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.
Ordinance No. NS-XXX
Page 8 of 14
City Council 1-8 7/26/2021
(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.
(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.
Ordinance No. NS-XXX
Page 9 of 14
City Council 1-9 7/26/2021
(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 in perpetuity.
(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 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 in perpetuity.
(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
Ordinance No. NS-XXX
Page 10 of 14
City Council 1 — 10 7/26/2021
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.
Section 10. Section 41-1909 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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 new affordable
housing opportunities for large families currently living in the City. Other eligible uses of
the inclusionary housing fund include but are not limited to:
(i) Creating affordable units from the existing market rate housing stock
including but not limited to, the purchase and rehabilitation of units.
Ordinance No. NS-XXX
Page 11 of 14
City Council 1 — 11 7/26/2021
(ii) Funding one-time programs for code enforcement, quality of life, and
general health and safety activities.
(iii) Implementing and promoting programs addressing housing security,
eviction prevention, and housing legal assistance for city residents.
(iv) Funding 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 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 fee 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 shall 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.
Section 11. Section 41-1910 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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.
Ordinance No. NS-XXX
Page 12 of 14
City Council 1 — 12 7/26/2021
(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 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.
Section 12. If any section, subsection, sentence, clause, phrase or portion of
this ordinance is 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 13. This Ordinance shall become effective thirty (30) days after its
adoption.
Section 14. The Clerk of the Council shall certify the adoption of this ordinance
and shall cause the same to be published as required by law.
Ordinance No. NS-XXX
Page 13 of 14
City Council 1-13 7/26/2021
ADOPTED this day of 2021
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
LIM
John M. Funk
Sr. Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached
Ordinance No. NS-XXX to be the original ordinance adopted by the City Council of the
City of Santa Ana on , and that said ordinance was published in
accordance with the Charter of the City of Santa Ana.
Date:
Clerk of the Council
City of Santa Ana
Ordinance No. NS-XXX
Page 14 of 14
City Council 1-14 7/26/2021
Redline Version (4:21 p.m.)
ORDINANCE NO. NS-XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA AMENDING SECTIONS 41-1900, 41-1901,
41-1902, 41-1903, 41-1904, 41-1906, 41-1909, AND 41-
1910 OF THE SANTA ANA MUNICIPAL CODE RELATING
TO THE HOUSING OPPORTUNITY ORDINANCE
THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines,
and declares as follows:
A. On November 28, 2011, the Santa Ana City Council adopted Ordinance
No. NS-2825, known as the Housing Opportunity Ordinance and appearing as Article
XVIII.1 of Chapter 41 of the Santa Ana Municipal Code. The Housing Opportunity
Ordinance was adopted to implement the City's Housing Element Goal of providing
affordable housing within the City.
B. On September 1, 2015, the City Council adopted Ordinance No. NS-2881,
which amended the Housing Opportunity Ordinance in various respects, including
applicability, options to satisfy inclusionary requirements, and calculation of the in -lieu
housing fee. These amendments were intended to make the inclusionary housing
requirements more predictable for housing developers and to incentivize more
affordable housing production on -site in conjunction with new market rate housing
development.
C. In response to impacts of the COVID-19 pandemic on the development
and construction of housing in the City, including the reduction of housing starts, the
City Council adopted Ordinance No. NS-2994 on September 1, 2020. Ordinance No.
NS-2994 further amended the Housing Opportunity Ordinance to lower the in -lieu
housing fee for all projects from $15 to $5 per square foot, adjust the trigger of the
ordinance, and expand the eligible uses of in -lieu fees collected by the City.
D. In early 2021, at the direction of the City Council, an Ad Hoc Committee
for Housing was formed. The Ad Hoc Committee reviewed the Housing Opportunity
Ordinance and recommended certain changes. The Ad Hoc Committee's
recommendations were presented and discussed at the City Council Meeting on July 6,
2021.
E. On July 26, 2021, the City Council conducted a work-study session to
further evaluate the Committee's recommendations and to receive input from key
stakeholders and members of the public. The City Council provided direction to staff to
prepare amendments to the Housing Opportunity Ordinance concerning the applicability
Ordinance No. NS-XXX
Page 1 of 16
City Council 1 — 15 7/26/2021
and triggers for the ordinance, adjustments to the in -lieu fee calculation, set -aside units,
and options for satisfaction of inclusionary requirements.
F. On , 2021, the Planning Commission held a duly noticed public
hearing on the proposed amendments.
G. The Request for City Council Action for this ordinance dated
2021 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 City Council finds and determines that this ordinance is not
subject to the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) and 15060(c)(3) of the State CEQA Guidelines because it will not result in a
direct or reasonably foreseeable indirect physical change in the environment, as there is
no possibility it will have a significant effect on the environment and it is not a "project',
as defined in Section 15378 of the CEQA Guidelines.
Section 3. The title of Article XVIII.1 of Chapter 41 of the Santa Ana Municipal
Code is amended to read in its entirety as follows:
2021 AFFORDABLE HOUSING OPPORTUNITY AND CREATION ORDINANCE
Section 4. Section 41-1900 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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
eF the E)P FeRtal units to eandeminium ewneFS";p when the number of units
exceed the densities permitted under the general plan, zoning classification, or the
conversion of rental units to condominium ownership.
Section 5. Section 41-1901 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
Sec. 41-1901. - Definitions.
As used in this article, the following terms shall have the following meanings:
Ordinance No. NS-XXX
Page 2 of 16
City Council 1 — 16 7/26/2021
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 extremely low-income, 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.
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.
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.
Ordinance No. NS-XXX
Page 3 of 16
City Council 1 — 17 7/26/2021
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
extremely low, very low, low, or Mede.r_A*e inne.memoderate-income households, at an
affordable housing cost, in compliance with this article.
Low-income units-apA-very low-income units, and extremely low-income units
means inclusionary units restricted to occupancy by low.-4r--very lowe, and
extremely 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,
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
Ordinance No. NS-XXX
Page 4 of 16
City Council 1 - 18 7/26/2021
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.
Section 6. Section 41-1902 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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-five (2-95) or more residential lots or residential
units I^^^+ w t i,=.which has not received entitlement approvals by the cityCity Council
as of [insert date], including new construction, and condominium conversions which
e*eeedmeets one or all of the g8neraI plan ^r^s^ hed densities. -following applicability
thresholds:
(1) A change in use to allow for residential or that exceeds the general plan or
zoning prescribed densities or percentage of residential development of the subject
property at the time of application.
(2) fi2p ;e:,,e:,ti Implementation of (b) Ap as. T�requirements n
appl!Ga+iGR to de a of the fellewin„:(!) IRGfease the permitted residential density of
the subject prepePty above the de or percentage of residential development allowed
as a result of city initiated zone chanaes or city initiated aeneral plan amendments after
November 28, 2011
�2T(3 Increase of the permitted percentage of residential development allowed
for a mixed -use development above the percentage at the time of the application The
,- n its h.....�.,.1 +h^+ ...hi^h .., ^IInn.1 h., the .fnnni+.. permitted h.. +hthenl nlnn
permitted under the zoning classification at the time of application.
Ordinance No. NS-XXX
Page 5 of 16
City Council 1 - 19 7/26/2021
(4) (4) Development of new residential uses or increase of the permitted
residential density or percentage of residential development within an overlay zone
approved pursuant to Division 28 of Article I of this Chapter.
(5) Conversion oft rental units to condominium ownership.
(b) Applications. The inclusionary requirements shall only apply to the
incremental ' in the Rid.m.beF of units beyond that which is allowed "��'� ;e amity
P8FFRi#ed by the ^o ^r^i . i^^. as prescribed in Subsection (a) above.
(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 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,
eaten (10) percent rented to very low-income households, or five (5) percent rented to
extremely 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.
Section 7. Section 41-1903 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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.
Ordinance No. NS-XXX
Page 6 of 16
City Council 1 — 20 7/26/2021
(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 OF pmvi es for a .different amount
of, provides for a different amount of inclusionary units, or provides for a different
specified method for determining the in--Aieu fee provisions of this ordinance, such as
the timing of payment or the point in time for determining the applicable in --lieu fee
amount, to satisfy the inclusionary units from that specified by this article,, previided the
(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.
(d) Adaptive Reuse. Adaptive reuse development projects pursuant to Chapter
41, Article XVI.II -Adaptive Reuse.
Section 8. Section 41-1904 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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 41-19011902 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.
Ordinance No. NS-XXX
Page 7 of 16
City Council 1 — 21 7/26/2021
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) AAere than twenty —Five (28J or more units. For aA residential project
comprised of five (5) or more than twenty "^` 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 total amount of the fee allowed by this section shall be calculated using the
In -Lieu Fee Schedule as shown below in section 41-1904(c)(1)(i) multiplied by five
dollars per square feet ($5 nnitt --}- 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.
(i) In-1 ipu FPP SChpritilp
L._I i C.... C.. ed le
Units
Fee Per Square Foot of
Habitable Area
5-9
6.00
10 — 14
9.00
15 — 19
112.00
20 or more
$15.00
.. . e . ..-
-. •- -• .MMff'P1M1kW7_Tarr."M
..
Ordinance No. NS-XXX
Page 8 of 16
City Council 1 — 22 7/26/2021
- - - - - - -- -- -- 010
.- ..
. .. .... . . . INI III ...
- - - .
Willisheuld be applied towards, but SSYGh inp6it shall net be dispesitive-.- The in -lieu fees
collected by the city are city funds over which the city has complete .absolute
Viscretio-i.
(43) Inclusionary housing fund. Fees collected in compliance with this section
shall be deposited in the inclusionary housing fund.
Section 9. Section 41-1906 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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
Ordinance No. NS-XXX
Page 9 of 16
City Council 1 - 23 7/26/2021
(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.
(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.
Ordinance No. NS-XXX
Page 10 of 16
City Council 1 — 24 7/26/2021
(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
tiff., -five (55) y -,in perpetuity.
(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 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 fGr fifty five (55) year -.in perpetuity.
(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.
Ordinance No. NS-XXX
Page 11 of 16
City Council 1 — 25 7/26/2021
(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.
Section 10. Section 41-1909 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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
Ordinance No. NS-XXX
Page 12 of 16
City Council 1 — 26 7/26/2021
funds policies and procedures. A priority will be on the creation of new affordable
housing opportunities ef-units 9Mfor large families currently living in the existing
Fnarket fateCity. Other eligible uses of the inclusionary housing gtAG. Fathor tha
nnnstn,ntlnn of new affnrdnhin heusinn „niter This inns,,, es,fund include but isare not
limited to,
pay fE)F one time PFE)gFaFns for Gede enfE)F6eFnent, quality of life and geneFal health and
safety aetivities. Manies may also be used to GOVeF Feasenable administrative or Felated
pynnnsns o iotorl ,n,ith the @dMinistrotion of this artirdn
Creating affordable units from the existing market rate housing stock
including but not limited to, the purchase and rehabilitation of units.
tilL Funding one-time programs for code enforcement, quality of life, and
general health and safety activities.
tHL Implementing and promoting programs addressing housing security,
eviction prevention, and housing legal assistance for city residents.
iv Funding 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 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 fee 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 onnn„paged and should shall
Ordinance No. NS-XXX
Page 13 of 16
City Council 1 — 27 7/26/2021
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.
Section 11. Section 41-1910 of Chapter 41 of the Santa Ana Municipal Code is
hereby amended to read in its entirety as follows:
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. "^,fore th
IN
(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 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.
Section 12. If any section, subsection, sentence, clause, phrase or portion of
this ordinance is for any reason held to be invalid or unconstitutional by the decision of
Ordinance No. NS-XXX
Page 14 of 16
City Council 1 — 28 7/26/2021
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 13. This Ordinance shall become effective thirty (30) days after its
adoption.
Section 14. 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 day of 2021
Vicente Sarmiento
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By:
John M. Funk
Sr. Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
Ordinance No. NS-XXX
Page 15 of 16
City Council 1 — 29 7/26/2021
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached
Ordinance No. NS-XXX to be the original ordinance adopted by the City Council of the
City of Santa Ana on , and that said ordinance was published in
accordance with the Charter of the City of Santa Ana.
Date:
Clerk of the Council
City of Santa Ana
Ordinance No. NS-XXX
Page 16 of 16
City Council 1 — 30 7/26/2021
c
O
cn
ca
U
CL
V)
Q
� V
W 7
E E�
E < 0
a
0
.O
� V
E
E
O
U
DC
Gn
X
w
O
N
O
N
QD
N
J
N
N
Q�
O
O
+-+
L
a-J
Q
a-J
—1
N
O
ate-J
cull
U
U
4-J
Ln
O
U
.N
•—
O
—
' cn
0-
-o
O
°;
o
v
�
N
o
�
(U
>
.�
O
4-1
O
O
E
O
Q
E
U
4J
00
O
W
>
to
U
C6
O
N
=
cn
v
O
O4-1
U
2
�
>O
0
�
�Q
M
-0
O
U
N
U
>,
N
E
:3
O
:3
O
-IZZ
C
O
a--+
Co
S
U
+j
f�
ate+
f6
O
O
U
V
curl
U
can
x
0
v /
0
W
E
E
0
U
w
ryloo
E
E
°
00
v0
0
O
Ln
L
i�
oN
_
COQ
ra
EO
N
4J
—
CL6
IN
N
O
`-
N
E
-p
C
co
O
E
E`�
a--+
O
O
•N N
N
N
O
t
N
`~
N v
L
C7
U
E
U
N
N=
C
O
(U�
O
O
c
cu
O
U
+'
O Urj
f0
N
i
.++++
_
�
a
N +
p
�
N
o0
s
C
E
ai
"
UCaj
Ua
Q
b
aJ
cv
E
J
f0
U
OM
L°
-
E
�QL1'
w
N
O
��
°
v
N
vB
ai
i
ZOE
N
E
m
v
z�
Ln
Q
N
Q
•
•
Q •
0
;
>
_
°
ro
o
-
>
a�
(n
�
CU
N
C
_Q
o
a�
°J
a
° a
�
Q U?°
v -a
s
= E
p
-, �
ro
m
E
_�
o
000
co
>
a1
N
a)QJ
0
4J
U
v UJ
L
+_�+
N
L
�'
++
'cn
N N
p
'i N
U N
U
C
N
N
E—
cu
V
N
+-�
N
+-X
},
N
.Q
i
N p
.a
N E
N
O
E
N L
oC O p
N
L
-0
N
L
L J i
Q
co
L,
p
ML Q)
ca L
-0 c
c
Q
Q
0
Ln O
E
u
CD
� a
°
°
Q
0
0
0
.
}T1 L
G1
u
++
O t i
N
U L i
a m
o
a
O
1O
T
W
E
E
O
U
w
ryloo
4--j
a-'
,
Ln
E
�>
E°
O0
Up
O
O
U
O
p O
G
v
o a,
v
Q�
E
v
L
E
LO
O
E
�
O,
U
O
L
V)
4te.1
O v
LL
O
aJ
U a
N
+C�
J
.L
G
: 0
E
v
O
U
J
O
p
O
p
O
Q tB
Q
Q
4�
O
O
a,
v
c
�
co
�
�,
�
O
o
i
O
3
�
U
�
v
J
i
O
l6
d
N
i 4-A
O
4- T f0 a1
C
O
.4)
�+ H U.
O
a
c ai
m
ai
L
a_+
fa
O
CD
C)
0
CD
CD
0
Lo
i./�
rH
Li-
i./}
-cn
w
L
m
rr
Ln
�
a
_0
a
aJ
�
LL
v
v
ar
U.
aJ
C
V)
+2
CY)
i
Ol
cR:t-I
v
I
I
I
p
`-
O
Ln
O
Ln
E
L
O
CD
C-
0
V)
c-
0
4-)
�
�
�
�
E
E
0
U
w
ryloo
V)
,o
E
0
0
0
u
0
U
0
0
<
\1000'
f
0
m
�
Eu
E
0
C:
0
>
0
y
e
0
E
§
E
:
E
»
o
x
0
0
CL
u
E
/
r
0
m
aj
§
m
§
)
')
u
3
U
0
"
D
c
0
�\u\.-�=
m
m
to
t
Q
7
'\
2
E
»
m
�
u
®
o
'S
CL
0
u
-0
=
E
£
t
ai
BG2�
0
2
°
°
'�
\
C
(A0
w
�
u
m
�
'4
�
2
\
:
0
C
.-
°
�
%
0
2
a)a)
U
'
E
#
/
S
0
u
o
\)
E•-
E
@
\
§
°
k
#
a-Lu\2§*/
/
o
�
(D
06
@
_0 cu
0
2
E �
J M
7 e
& a
m /
/
k
0
0
W
E
E
0
U
�w
Uyloo
_
W
V)
o
E
0
o
0
Up
O
o
Q\1000'
an
4-
�
V
N
O
4�
Vf
i
O aA
C:
++
s C:
O
4-r
O
u
.�
O
U
O
i
++
fII
E�
G
S
a '
U
U
N
cn
V
4.1 In
cn
GJ
OC
O
N
t)LO
ai
�
v
E
�,
bA
v
N
4-0
to
E
N uo
bD
LA
E
4A
i co
�
U
O
O L
N
a
t ,p
a
:
=
cu
i N
au
r_
`^
°
Ln
ai
0a
���
M>�
o
Q Q
O
v
Q O
a
Qom'
Q
.
au
s
M
U
+N+
C
ago
s
W
ro
cn
A
h
V
E
E .O
O Ln
U cn
Ln
O —
E
O
}, V o
N . _ U c6
c)
O
U