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Item # 39
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
June 4, 2024
TOPIC: Local Resident Preference in Affordable Housing Ordinance
AGENDA TITLE
Local Resident Preference in Affordable Housing Ordinance
RECOMMENDED ACTION
Approve first reading of the Local Resident Preference in Affordable Housing Ordinance
to comply with the State of California Local Tenant Preferences to Prevent
Displacement Act and codify the City's existing local resident preference policy.
ORDINANCE NO. NS-XXXX entitled AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF SANTA ANA CREATING A NEW ARTICLE XXI IN CHAPTER 8 OF THE
MUNICIPAL CODE TO CODIFY THE CITY'S LOCAL RESIDENT PREFERENCE IN
AFFORDABLE HOUSING (includes determination that the ordinance is not subject to
the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2)
because the activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment and 15060(c)(3) because the activity is not a project as
defined in Section 15378 of the CEQA Guidelines)
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
On March 20, 2018, the City Council adopted the Affordable Housing Funds Policies
and Procedures, which included a new local resident preference policy. The local
resident preference policy prioritizes Santa Ana residents who live or work in the city for
affordable housing projects by giving them a preference when they apply for a project.
Since the adoption of this policy, staff has implemented the City's local resident
preference in all affordable housing projects funded or entitled in the city. The City's
local preference policy has been effective to provide priority access to limited affordable
housing opportunities for Santa Ana residents.
For example, the Legacy Square project opened their waiting list in February 2023 and
received a total of 4,668 applications for only 93 affordable housing units. However, the
City's local resident preference allowed 1,451 applicants who live or work in Santa Ana
to be prioritized at the top of the waiting list by giving them a preference. This means
Local Resident Preference in Affordable Housing Ordinance
June 4, 2024
Page 2
Santa Ana local residents were selected first off of the waiting list. These three other
projects had similar numbers of applicants with a local resident preference:
Project Name
Waiting List Opening
Total # of
Applicants with a
(# of Affordable
Month
Applications
Local Resident
Housing Units)
Preference
Crossroads at
Washington
December 2023
2,034
1,167
(86 units)
Rafferty
(11 units)
January 2024
3,141
2,472
Archways
(85 units)
February 2024
5,889
3,991
Since March 20, 2018, the City's new local resident preference policy has had a positive
impact to ensure that the limited affordable housing units developed in the city are
prioritized for our residents who live or work in Santa Ana.
After the adoption of the City's local resident preference policy, on January 1, 2023, the
State of California adopted the Local Tenant Preferences to Prevent Displacement Act
(the "Act"). The Act requires any local government adopting a local resident preference
policy to create a webpage on its internet website containing their ordinance and its
supporting materials, and to annually submit a link to its local resident preference
webpage to the State of California Department of Housing and Community
Development (HCD). Finally, the Act requires local governments adopting a local
resident preference policy to submit the ordinance to HCD within 30 days of it becoming
operational.
As a result, staff is recommending approval of the Local Resident Preference in
Affordable Housing Ordinance to facilitate compliance with the State of California Local
Tenant Preferences to Prevent Displacement Act and codify the City's existing local
resident preference policy.
FISCAL IMPACT
There is no fiscal impact associated with this item.
EXHIBIT
1. Local Resident Preference in Affordable Housing Ordinance
Submitted By: Michael L. Garcia, Executive Director of Community Development
Approved By: Alvaro Nunez, Acting City Manager
EXHIBIT 1
ORDINANCE NO. NS-XXXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA CREATING A NEW ARTICLE XXI IN
CHAPTER 8 OF THE SANTA ANA MUNICIPAL CODE TO
CODIFY THE CITY'S LOCAL RESIDENT PREFERENCE
IN AFFORDABLE HOUSING
WHEREAS, the City of Santa Ana, California ("City") is a municipal corporation, duly
organized under the constitution and laws of the State of California; and
WHEREAS, the Housing Authority of the City of Santa Ana, California ("Housing
Authority") is a public body, corporate and politic; and
WHEREAS, Section VII of Article XI of the California Constitution provides that a city
may make and enforce within its limits all local, police, sanitary, and other ordinances and
regulations not in conflict with general laws; and
WHEREAS, on June 20, 2017, the City Council directed staff to develop a policy to
allocate affordable housing development funds and criteria for selection of projects; and
WHEREAS, on March 20, 2018, the City and the Housing Authority adopted the City's
Affordable Housing Funds Policies and Procedures, which were developed to guide how
affordable housing funds and land assets available to the City are allocated, committed, loaned and
monitored for multi -family affordable housing development in the City; and
WHEREAS, the Affordable Housing Funds Policies and Procedures detailed the City's
local preference for Santa Ana residents and workers in tenant selection shall be a requirement of
the programs implemented through the City's Affordable Housing Funds Policies and Procedures,
among other programs if permitted ("Local Preference"); and
WHEREAS, on August 18, 2020, the City and the Housing Authority adopted an
Amended Affordable Housing Funds Policies and Procedures; and
WHEREAS, since the adoption of the Affordable Housing Funds Policies and Procedures
and subsequent Amendment, the City and the Housing Authority of the City of Santa Ana has
continued to fulfill their duty to affirmatively further fair housing by taking meaningful actions to
combat discrimination, overcome patterns of discrimination, and foster inclusive communities free
from barriers that restrict access to opportunity based on protected characteristics, by among other
things: 1) implementing the City's Rent Stabilization and Just Cause Evicition Ordinance to
prevent displacement and eviction in existing housing; 2) enforcing the City's inclusionary
housing ordinance, known as the Affordable Housing Opportunity & Creation Ordinance, for new
development; 3) holding an annual mandatory training for all staff in the City's Housing Division
and Housing Authority; 4) providing annual small apartment managers' workshop to train and
educate property owners, HOAs, property managers, and tenants about best practices in property
management, neighborhood safety, and landlord/tenant responsibilities; 5) providing CDBG
funding to the Fair Housing Council of Orange County to provide legal clinics for tenants on
Ordinance No. NS-XXXX
Page 1 of 4
EXHIBIT 1
tenants' rights and recourse for intimidation and unjust evictions; 6) providing housing assistance
payments to eligible households who are participating in the Housing Choice Voucher Program;
7) providing down payment assistance; 8) providing funding for a single-family rehabilitation
program; and 9) providing various sources of funding to develop affordable housing; and.
WHEREAS, on January 1, 2023, the Local Tenant Preferences to Prevent Displacement
Act, California Government Code Sections 7061, et seq. became effective, and states "Local and
state governments have a responsibility to use the powers vested in them to facilitate the
improvement and development of housing to make adequate provision for the housing needs of all
economic segments of the community"; and
WHEREAS, the Local Tenant Preferences to Prevent Displacement Act, requires any local
government adopting a local tenant preference policy to create a webpage on its internet website
containing the ordinance and its supporting materials, and to annually submit a link to its tenant
preference webpage to the Department of Housing and Community Development; and
WHEREAS, the City and the Housing Authority, in light of subsequent enactment of State
law, desire to satisfy Federal funding requirements for development of affordable housing in
accordance with the already adopted Local Preference provisions in the Affordable Housing Funds
Policies and Procedures as Amended, and implement City policies and procedures in accordance
with the Local Tenant Preferences to Prevent Displacement Act and the City's duty to
affirmatively further fair housing under state law;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES
ORDAIN AS FOLLOWS:
SECTION 1. Recitals. The recitals above are true, correct and each incorporated herein
by reference and adopted as findings by the Santa Ana City Council ("City Council").
SECTION 2. Addition. Chapter 8, Article XXII (Section 8-3500), of the Santa Ana
Municipal Code shall read as follows:
ARTICLE XXII — LOCAL RESIDENT PREFERENCE IN AFFORDABLE HOUSING
Sec. 8-3500. — Local Preference.
(a) The City may, through its Affordable Housing Funds Policies and Procedures, as
amended from time to time, or by Resolution, or by other subsequently approved policies and
procedures by City Council, adopt a Local Preference policy for Santa Ana residents and workers
in tenant or homebuyer selection as a requirement of the City's local housing programs, and other
State or Federal programs implemented by the City.
(b) The Local Preference shall comply with Federal and State law, and implementing
regulations or other program funding requirements. Pursuant to California Government Code
Section 7061, the Local Preference shall be subject to the duty of public agencies to affirmatively
further fair housing pursuant to Chapter 15 (commencing with Section 8899.50) of Division 1 of
Title 2, the California Fair Employment and Housing Act (Part 2.8 (commencing with Section
Ordinance No. NS-XXXX
Page 2 of 4
EXHIBIT 1
12900) of Division 3 of Title 2), the Unruh Civil Rights Act (Section 51 of the Civil Code), the
federal Fair Housing Act (42 U.S.C. Sec. 3601 et seq.), and any implementing regulations
thereunder.
(c) Subject to the requirements of this section, the Affordable Housing Funds Policies
and Procedures may specify the criteria, qualifications and other requirements of the Local
Preference.
"Local" may be defined narrowly or broadly for any specific affordable housing project
to include but not be limited to a specific zip code or City Council ward map in the City; and
"Resident" may be defined narrowly or broadly to include people who are employed in the City of
Santa Ana for a specific number of hours.
(d) The Local Preference policy in effect through the City's Affordable Housing Funds
Policies and Procedures, as they existed at the time of this enactment, shall continue until amended
or superseded by an act of City Council or by the terms of the policies and procedures itself.
SECTION 3. California Environmental Quality Act. The City Council finds that this
Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections
15060(c)(2) because the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment and 15060(c)(3) because the activity is not a project as defined
in Section 15378 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or indirectly
and so is not a project.
SECTION 4. Severability. Should any provision of this Ordinance, or its application to
any person or circumstance, be determined by a court of competent jurisdiction to be unlawful,
unenforceable or otherwise void, that determination shall have no effect on any other provision of
this Ordinance or the application of this Ordinance to any other person or circumstance and, to that
end, the provisions hereof are severable.
SECTION 5. Effective Date. This Ordinance shall become effective thirty (30) days
following its adoption.
SECTION 6. Publication. The City Clerk shall attest to the passage and adoption of this
Ordinance, causing it to be published as required by law, and it shall become effective thirty (30)
days after its adoption.
ADOPTED this day of , 2024.
Valerie Amezcua
Mayor
Ordinance No. NS-XXXX
Page 3 of 4
EXHIBIT 1
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
1 1)B dAj (.,
Y�
Andrea Garcia -Miller
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, JENNIFER HALL, City Clerk, do hereby attest to and certify that the attached
Ordinance No. NS-XXXX to be the original ordinance adopted by the City Council of the City
of Santa Ana on , 2024 and that said ordinance was published in accordance
with the Charter of the City of Santa Ana.
Dated:
City Clerk
City of Santa Ana
Ordinance No. NS-XXXX
Page 4 of 4
Araiza, Fatima
From: Nathaniel Greensides
Sent: Wednesday, May 29, 2024 12:56 PM
To: eComment
Subject: City Council Meeting June 4 2024 - Item 39
Am: eiinfi((�iu ll in eu uffl nror 0na1ed fug-mnz onut;n de o, 'Cu y oro'Sanm Anna. Use canorm when n:pel inn aflac4gun enu s or finks.
Dear City Council,
I write in support of the ordinance and I am glad to see that the local policy thus far has served to benefit those
who live or work in our City. One large caveat I wish to point out, however, is that many long-term and low-
income residents in our City are ineligible for affordable housing programs because of their legal immigration
status (undocumented, ineligible immigration class/status, or otherwise).
Sincerely,
Nate Greensides
Ward 5 resident