HomeMy WebLinkAbout39B - DENSITY APP - 217 AND 219 S BIRCH STREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
JANUARY 4, 2011
TITLE:
DENSITY BONUS APPLICATION NO. 2010-03
AND SITE PLAN REVIEW NO. 2010-02 TO
ALLOW A FIVE-UNIT RESIDENTIAL
DEVELOPMENT AT 217 AND 219 SOUTH
BIRCH STREET - ORANGE HOUSING
DEVELOPMENT CORPORATION AND C & C
DEVELOPMENT, APPLICANT
CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
? As Recommended
? As Amended
? Ordinance on 151 Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For_
CONTINUED TO
FILE NUMBER
Receive and file the staff report approving Density Bonus Application No. 2010-03 and Site
Plan Review No. 2010-02 as conditioned.
2. Authorize the City Manager and Clerk of the Council to execute the attached Density Bonus
agreement with Santa Ana WBBB, L.P., subject to nonsubstantive changes approved by the
City Manager and City Attorney for the development of an affordable for sale unit.
PLANNING COMMISSION ACTION
On December 13, 2010, the Planning Commission adopted a resolution approving deviations from
the Specific Development No. 40 (SD-40) zoning district, as allowed by Santa Ana Municipal Code
Section 41-1606 and the State of California Government Code Section 65915-65918 as an
incentive to affordable housing production; and adopted a resolution approving Site Plan Review
No. 2010-02 as conditioned by a vote of 4:2 (Acosta, Walters opposed; Turner absent) to allow a
five-unit residential development at 217 and 219 South Birch Street located in the Specific
Development No. 40 (SD-40) zoning district. The Planning Commission made no changes to the
recommended actions outlined in the attached staff report (Exhibit A).
DISCUSSION
Density Bonus Agreement
The State density bonus law was created to encourage the production of quality affordable
housing by allowing cities to approve qualified projects that would have units, or densities, in
excess of cities' statutory density caps established under General Plans and zoning. Under this
article, developers wishing to construct projects that meet the requirement for a specified
39B-1
DBA No. 2010-03
SPR 2010-02
January 4, 2011
Page 2
percentage of affordable housing units may request to enter into a Density Bonus Agreement with
the City. Under the proposed density bonus agreement, its approval will produce five units that will
be rented to very low income households (50 percent of Area Median Income). The rent will not
exceed 30 percent of 50 percent of the area median income, as adjusted for household size. The
term of the affordability is 55 years. The provisions of the agreement shall constitute covenants,
conditions, and restrictions which shall run with the land, and shall inure to the benefit of and be
binding upon the Developer, its successors and assigns in interests as successive owners of the
project. Construction of these units will assist the Agency in meeting their replacement and
inclusionary housing obligations and will assist the City in meeting the Regional Housing Needs
Assessment (RHNA) goals identified in the Housing Element, Consolidated Plan and
Implementation Plan (Exhibit 8 of Exhibit A).
FISCAL IMPACT
There is no fiscal impact associated with this action.
1
Ja'. Trevino
Executive Director
Planning & Building Agency
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Exhibit: A. Planning Commission Staff Report
39B-2
REQUEST FOR
Planning Commission Action
PLANNING COMMISSION MEETING DATE:
DECEMBER 13, 2010
TITLE:
PUBLIC HEARING - FILED BY ORANGE HOUSING
DEVELOPMENT CORPORATION AND C & C
DEVELOPMENT FOR DENSITY BONUS APPLICATION
NO. 2010-03 AND SITE PLAN REVIEW NO. 2010-02 TO
ALLOW A FIVE-UNIT RESIDENTIAL DEVELOPMENT AT
217 AND 219 SOUTH BIRCH STREET
Prepared by Lucy Linnaus
Executive Director
RECOMMENDED ACTION
PLANNING COMMISSION SECRETARY
APPROVED
? As Recommended
? As Amended
0 Set Public Hearing For
DENIED
? Applicant's Request
? Staff Recommendation
CONTINUED TO
Planning Manager
Adopt a resolution approving deviations from the Specific Development No. 40 (SD-40) zoning
district, as allowed by Santa Ana Municipal Code Section 41-1606 and the State of California
Government Code Section 65915-65918 as an incentive to affordable housing production.
2. Adopt a resolution approving Site Plan Review No. 2010-02 as conditioned.
DISCUSSION
Request of the Applicant
Todd Cottle with Orange Housing Development Corporation and C & C Development, DBA Santa
Ana WBBB, L.P. (Developer) is requesting approval of deviations from the development standards
contained within the Specific Development No. 40 (SD-40) zone as allowed by SAMC Section 41-
1606 and the State of California Government Code Section 65915-65918 as an incentive to
affordable housing production. In order to allow this project, the applicant is also requesting site plan
approval to allow a five-unit residential project located at 217 and 219 South Birch Street.
Property Description
The project site is located at the northeast corner of Birch and Pine Streets. The site is composed of
two, flat, rectangular, vacant parcels that total 13,922 square feet in size. The two parcels will be
consolidated via a voluntary lot merger. The zoning designation for the parcels is Project Area 1 of
Specific Development No. 40 for Heninger Park (SD-40), with a General Plan land use designation of
Low Density Residential (LR) which allows a maximum density of seven dwelling units per acre.
Surrounding land uses include multi-family dwellings to the north, a mix of single-family dwellings and
commercial uses to the east, multi-family dwellings to the south and single-family and multi-family
residential uses to the west (Exhibits 1 and 2).
5
39B-3
DBA 2010-03 and SPR 2010-02
December 13, 2010
Page 2
Project History
In 1997 the City's Redevelopment Agency purchased the properties on the northeast corner of
Birch and Pine Streets in furtherance of the Agency's requirement to provide new sources of
affordable housing. Over the ensuing years the Agency issued a number of Requests for
Proposals to develop the properties with single family dwellings, but due to various cycles in the
residential development market, no project ever came to fruition. Late in 2009 the Agency issued
a new Request for Proposals that encompassed three Agency-owned properties including the
subject property, as well as property located at 435 and 437 South Birch Street and 2034 and 2038
North Bush Street. Projects also are proposed for these properties and they will be addressed in
separate staff reports. The RFP resulted in the selection of the Developer for the construction of
an affordable, multi-family housing project.
On September 7, 2010 the Agency approved the Disposition and Development Agreement (DDA)
with the Developer. The DDA requires that the 100% of the units be affordable to very low-income
households (50% AMI). The beginning rents will be $989 per month for a two-bedroom unit and
$1,125 for a three bedroom unit. These income and affordability requirements will be secured
through a covenant that must remain in place for at least 55 years. In order to fund the
construction, the Developer will apply for tax exempt bonds and tax credits. The DDA also
specifies that, at this site, the Developer construct two 2-bedroom units and three 3-bedroom units
for a total of five units.
During the years following the acquisition, staff, at the Redevelopment Agency's direction, sought
to secure an appropriate development project for the site, studying mostly single family products.
After considerable time and resources were expended in the pursuit of single family developments,
it was determined that the development costs made the project financially infeasible. Staff was
then directed to pursue the development of a multi-family project of a scale and design that would
be consistent with the neighborhood's character and that would comply with the Heninger Park
Specific Development standards. The project proposed by the Developer responds to this
direction.
A major factor in determining the project's design was the input of Heninger Park neighborhood
representatives. The Developer and staff have met with members of the neighborhood's
architectural review committee several times over the course of the last year, and have presented
the project to the Neighborhood Association. While some members of the neighborhood still
expressed a desire to see the site developed with a single-family, rather than a multi-family
product, the comments they provided in regards to the design of the multi-family project were
incorporated into the final design.
Given that the units will be restricted to very-low income families, the construction of these units
will assist the City and Agency in meeting the Regional Housing Needs Assessment (RHNA) goals
identified in the Housing Element, Consolidated Plan and the Implementation Plan.
39B-4
DBA 2010-03 and SPR 2010-02
December 13, 2010
Page 3
Proiect Description
Santa Ana WBBB, L.P. is proposing to construct two 2-story buildings to create five apartments.
The buildings will be arranged around a central courtyard, which will provide the common open
space for the project. The primary access to the two street level units will be directly from the
street, while access to the three units located on the second level will be from the courtyard. The
garages and guest parking will be accessed from an alley at the rear of the property. A direct
pedestrian connection from the courtyard to the alley will be provided for the convenience of the
tenants and guests.
The two street level units will be 1,614 square feet in size each and will have three bedrooms, two
full bathrooms and a two-car garage with two additional tandem parking spaces on the driveway.
Two units will be located above these units. Unit 3 will be 1,684 square feet in size and also have
three bedrooms and two full bathrooms. This unit will have access to a two-car garage and two
tandem parking spaces on the driveway to serve as additional parking for that unit. Unit 4 will be
1,480 square feet in size and will have two bedrooms and two bathrooms. This unit will have direct
access to a two-car tandem garage and one additional tandem parking space on the driveway.
Unit 5 will be located above the garages and is located at the rear of the courtyard. It will be 1,108
square feet in size and have two bedrooms and two bathrooms. This unit will have access to a
two-car tandem garage and one additional parking space on the driveway. Each unit will have
private open space, which will exceed the minimum requirement, and private laundry facilities.
Perimeter block walls are proposed for privacy (Exhibits 3, 4 and 5).
The project has been designed in the Spanish Colonial Revival architectural style, which is a style
that, although not predominant in the Heninger Park neighborhood, does have precedent,
particularly in multi-family projects. In order to reduce the massing and to create architectural
variety, each building will have slightly different detailing. The walls will be painted in an off-white
tone and accented by cornices in contrasting color, and decorative vents. The windows will be
recessed, multi-pane with decorative cast concrete sills and wrought iron railing on the balconies.
The primary entrance to four of the five units will be through covered porches, while the entrance
to the carriage unit located above the garage will be via an open stair with wide sweeping curbed
guardrails. The roof will be tile in a terra cotta color. To maintain architectural consistency, the
residences will incorporate enhanced architectural elements, including complete architectural
treatments on all sides of each building (Exhibits 6 and 7).
Density Bonus Law Background
The State density bonus law was created to encourage the production of quality affordable housing
by allowing cities to approve qualified projects that would have units, or densities, in excess of
cities' statutory density caps established under General Plans and zoning. The rationale here
being that baseline density, in part, establishes a property's market value. By allowing more units
to be constructed on the property than would otherwise be allowed under the existing zoning, it
39B-5
DBA 2010-03 and SPR 2010-02
December 13, 2010
Page 4
creates an economic advantage to the developer, which could then be used to subsidize any gap
between market rents or sales prices and the price at which the unit would be affordable to those
making less than the area median income.
Under this law, California cities, including charter cities, were required to adopt implementing
legislation, which Santa Ana did in 2001 with the adoption of SAMC Article XVI.I - Density Bonus
for Affordable Housing. Under this article, developers wishing to construct projects that meet the
requirement for a specified percentage of affordable housing units may request to enter into a
Density Bonus Agreement with the City and, pending approval of such an agreement, may also
request deviations from the City's existing density caps and development standards that would be
necessary to facilitate the development of the project.
Under the State Density Bonus Law cities must grant the request of the applicant, unless it adopts
written findings, based upon substantial evidence, that the request is not necessary in order to
provide affordable housing, or that there would be a specific adverse impact upon public health
and safety, or the physical environment, or on specified historic properties, and for which there is
no feasible way of mitigating or avoiding the impact without rendering the project unaffordable to
low and moderate income households.
The City further supported the provisions of the State Density Bonus Law through the adoption of
policies contained within the 2006-2014 Housing Element. In particular, Housing Program No. 25
of the Housing Implementation Summary states that the City will implement the density bonus
ordinance to assist in the development of extremely low, very low, and low income rental units, and
moderate income condos, and senior housing.
Density Bonus Implementation of the Proposed Project
Pursuant to SAMC 14-1600 et seq., developers wishing to pursue deviations from the City's
established densities and development standards must enter into a Density Bonus Agreement with
the City. The code also states that, if the proposed Density Bonus Agreement includes requests
for deviations from zoning and development standards, that those deviations must first be
approved by the Planning Commission prior to consideration of the Agreement by the City Council.
The project applicant is requesting deviations from the City's zoning and development standards,
as further detailed in this staff report. The Density Bonus Agreement (Exhibit 8) details the
requested deviations. This Agreement, along with the Planning Commission's recommendation
regarding the requested deviations, will be considered by the City Council. The Developer is
seeking a density bonus from the maximum density permitted, and deviations from the minimum lot
size, the minimum average front yard setback, and the average side yard setback.
39B-6
DBA 2010-03 and SPR 2010-02
December 13, 2010
Page 5
Density Bonus From Maximum Density
Both the State Density Bonus Law and the SAMC state that the law only applies to projects of five
or more units. The proposed project meets this standard. There is a difference between the State
law and the SAMC regarding the total number of units which may be constructed in excess of
adopted densities. In the case of the SAMC, the development shall be permitted a density bonus
of the amount of units requested by the applicant, up to a total project dwelling unit count of 125
percent. Under State law, the minimum bonus for projects providing 20 percent of the units to
lower income households is 35 percent. Because the City's existing Density Bonus Law has not
been amended to comply with the most current State Density Bonus Law and because the SAMC
states that it shall be in compliance with the State law "as it may be amended from time to time,"
the provisions of the State law will take precedence in this case. The State law and the SAMC
state that "density bonus" means a density increase over the otherwise maximum allowable
residential density under the applicable zoning ordinance and land use element of the general
plan.
The maximum density allowed by the City's zoning and General Plan land use designations for this
property is inconsistent. The following table details the number of dwellings allowed and the
percentage increases as they pertain to this project.
Comparison of Maximum Allowable Units
General Plan m- LR-7 Henin er Park (SD 40)* Proposed Project
2.23 units 3.6 units 5 units
* The uses permitted in the SD-40 are: 1. Multiple Family Dwellings (project to be developed at
the general plan density) and 2. Any use permitted in the R2 zone, pursuant to section 41-247
(project to be developed at the densities established in the R2 zone based on the lot size).
This constitutes a 37% increase in the number of units permitted by the SD 40 zoning and a 125%
increase in units permitted by the General Plan land use designation. These increases are
consistent with the density bonus law.
One of the primary concerns expressed by neighborhood representatives was the compatibility of
a new multi-family project with the existing single family homes. Prior to the adoption of SD 40
multi-family projects were constructed that were not compatible in scale, massing or design with
the neighborhood. One of the chief design concerns was ensuring that the project not further such
design incompatibilities. The following paragraph details the existing context of the project site.
The project is located in a block developed with a combination of single family homes and multi-
family apartments in a range of densities.
39B-7
DBA 2010-03 and SPR 2010-02
December 13, 2010
Page 6
The property immediately adjacent to the north is developed at a density of 36.7 DU per acre,
followed by developments at 15.3 DU/ac and 10.2 DU lac. The development to the south is at
37.2 DU per acre. Across Birch Street, the densities vary from 7 to 13 DU per acre.
The applicant is requesting an increase from 11.3 DU per acre, which is allowed under the current
zoning, to 15.5 DU per acre. This density represents a mid-range density that is consistent with,
and in many cases much less intense, than the existing densities. More importantly, the scale and
massing of the project will be consistent with the early 1800's building forms currently found on the
block and throughout the neighborhood.
As such, staff finds that the proposed density increase from the provision of the zoning will not
cause an adverse impact to the neighborhood. Under State Law, in order to be eligible for this
density increase, the applicant must provide a minimum of 10 percent of the units to lower income
households. In this case, the applicant will be providing all units, or 100 percent of the proposed
development, to a low income household, which is in excess of the minimum requirement.
39B-8
DBA 2010-03 and SPR 2010-02
December 13, 2010
Page 7
Deviation From Minimum Lot Size
The applicant is also requesting three deviations from the development standards to facilitate the
construction of the affordable units. The first deviation pertains to the minimum lot size. The R2
zoning district, under which the uses permitted in the SD-40, project area 1 are developed,
establishes a minimum lot area for lots containing two or more dwellings. It requires 6,000 square
feet for the first unit, and 3,000 square feet for each additional unit. Since the lot is 13,922 square
feet, a total of 3.6 units are allowed. A lot size of 18,000 square feet would be required to
construct five units. Thus, the applicant is requesting a deviation from the minimum lot size of
18,000 square feet for five units, to 13,922 square feet - a reduction of 4,078 square feet.
Deviation From Average Front Yard Setback
The second deviation pertains to the front yard setback. The SD-40 standards require a minimum
front yard of 20 feet, with an average setback requirement based on the height of the building. The
proposed building will be 25.5 feet tall, resulting in a required average setback of 27 feet. The
applicant will meet the minimum front yard setback requirement of 20 feet, but is requesting a
reduction of the average setback requirement from 27 feet to 21 feet. The applicant could develop
this project with the required average setback, but instead he is proposing eight additional parking
stalls off the alley to address an issue raised by the neighborhood.
Deviation From Average Side Yard Setback
The third deviation pertains to the side yard. The SD-40 standards require a minimum side yard
requirement of six feet and an average setback requirement based on the height of the building.
The building height results in a required average setback of 10 feet. The applicant is requesting a
reduction of the side yard requirements to five feet, two inches and a reduction of the average
setback on the street side to 7 feet, 11 inches. The applicant exceeds the average setback
requirement on the interior side yard setback and could meet the average side yard requirement
on the street side, but instead, he is proposing a six-foot fence to enclose the private open space
for the lower unit of building 2.
Site Plan Review of the Proposed Project
After analyzing the project, staff has found that, with the approval of the deviations requested by
the applicant, the project will comply with all applicable development standards established in the
SD-40 zoning district and the Citywide Design Guidelines. The project exceeds the minimum
street frontage of 90 feet. The proposed project is well below the maximum building height of 45
feet and each unit exceeds the minimum gross floor area for two and three bedroom units as all
units are over 750 square feet. The proposed project also exceeds the required parking, which is
2 parking spaces per unit. Staff has also analyzed the project for compatibility in size, height,
context, including open space, and landscape, and design and materials with the surrounding
39B-9
DBA 2010-03 and SPR 2010-02
December 13, 2010
Page 8
structures. The proposed architectural style, Spanish Colonial Revival, is present in the
neighborhood and is one of suggested styles found the Architectural Design guidelines for the
neighborhood.
Prior to the development of the project, the applicant met with the Board of Directors of the
Heninger Park Neighborhood Association and presented the project to the association at large at
their August 25, 2010 regularly scheduled meeting. The neighborhood was satisfied with the
architecture and choice of material and finishes for the project, the additional parking provided, the
quality of life features, such as individual laundry facilities, the number of bathrooms per unit, the
location of the entrance to each unit, and the relationship of the buildings to the street.
Finally, the project will be consistent with the purpose of the General Plan Land Use and Housing
Element, as it will further the goals and policies of the plans and not obstruct their attainment.
Specifically, it would further the following General Plan goals and policies:
Land Use Goal 3 Preserve and improve the character and integrity of existing
Element neighborhoods.
Policy 3.1 Support development which provides a positive contribution
to neighborhood character and identity.
Policy 3.5 Encourage new development and/or additions to existing
development that is compatible in scale, and consistent with
the architectural style and character of the neighborhood.
Policy 5.5 Encourage development which is compatible with, and
supportive of surrounding land uses.
Housing Goal 2 Provide a diversity of quality housing, affordability levels, and
Element living experiences that accommodate Santa Ana's residents
and workforce of all household types, income levels, and age
groups to foster an inclusive community.
Policy Rental Housing. Encourage the construction of rental
HE-2.3 housing for Santa Ana's residents and workforce, including a
commitment to very low, low, and moderate income residents
and moderate income Santa Ana workers.
Policy Agency-Owned Sites. Maximize affordable housing on
HE-2.8 Agency-owned properties that is of high quality, sustainable,
and available to various income levels.
In summary, the density bonus deviations requested will allow for the construction of two additional
affordable units than would have otherwise been allowed, for a total of five new affordable housing
units, thus increasing the total supply of affordable rental units available in the community. Staff
recommends that the Planning Commission adopt a resolution approving the requested deviations
from Chapter 41 of the Santa Ana Municipal Code and approve Density Bonus Application No.
2010-03 and Site Plan Review No. 2010-2 as conditioned.
39B-10
DBA 2010-03 and SPR 2010-02
December 13, 2010
Page 9
CEQA Compliance
In accordance with the California Environmental Quality Act, the proposed project is categorically
exempt from CEQA review per Section 15303, Class 3 and Section 15332, Class 32. The Class 3
exemption allows new construction multi-family residential structures in urbanized areas designed for
not more than six dwelling units. The Class 32 exemption allows for construction of in-fill
development projects of less than five acres in urbanized areas. A Notice of Exemption for
Environmental Review No. 2010-102 will be filed for this project.
Luc Lin us, AIA
Senior anner
?i
Vince Frego o CP
Principal Planner
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SANTA ANA, CALIFORNIA
12-6-10
RECORDING REQUESTED BY:
CITY OF SANTA ANA
AND WHEN RECORDED MAIL TO:
City of Santa Ana - Housing Division
20 Civic Center Plaza, M-37
Santa Ana, CA 92702
DENSITY BONUS AGREEMENT
WITH AFFORDABLE HOUSING REQUIREMENT
(217-219 S. Birch Street, Santa Ana, CA)
THIS DENSITY BONUS AGREEMENT WITH AFFORDABLE HOUSING
REQUIREMENT, is made and entered into this day of , 2010, by and
between the City of Santa Ana, a charter city and municipal corporation of the State of California
("City"), and Santa Ana WBBB, L.P. ("Developer").
Recitals:
1. Section 41-1600 et seq. of the Santa Ana Municipal Code and section 65915 et
seq. of the California Government Code set forth the process to provide increased residential
densities to property owners who guarantee that a portion of their residential development will be
available to low income, very low-income, or senior (also known as "qualified") households.
These regulations are intended to materially assist the housing industry in providing adequate
and affordable shelter for all economic segments of the community and to provide a balance of
housing opportunities for very low income, low income, and senior households throughout the
city.
2. Developer is proposing to the City to develop five (5) residential rental units (the
"Project") on the Property located at 217 and 219 S. Birch Street in the City of Santa Ana (the
"Property") legally described as set forth in Exhibit A, attached hereto and incorporated herein.
The Project is more particularly set forth in Density Bonus Application No. 2010-03,
Environmental Review No. 2010-102, and Development Plan Review No. 2010-28.
3. The Project is currently being negotiated through a Disposition and Development
Agreement with the Community Redevelopment Agency of the City of Santa Ana ("Agency")
and close of escrow shall occur when the Developer obtains the entitlement, private activity bond
financing, tax credits and a residual receipts loan from the City and the Agency necessary to
develop five (5) multi-family rental units on the Property (the "Close of Escrow").
4. The maximum number of dwelling units which may be developed on the Property
under applicable provisions of the City's general plan is 2.23, and 3.6 under the provision of the
zoning ordinance, without a density bonus.
EXHIBIT 8
39B-19
5. City desires to increase the number of affordable rental units and the degree to
which they are affordable in the City of Santa Ana.
6. In order to promote this goal, and the express provisions of Sections 65915 -
65918 of the Government Code of the State of California ("Density Bonus Law"), the City has
determined to grant Developer's application for a density bonus and related concessions and
waivers to Developer.
7. As a condition of approval of the Project with the density bonus by City,
Developer will provide and maintain a portion of the dwelling units in said Project offering
Affordable Rents (as defined in Paragraph I of this Agreement) (the "Affordable Rental Unit(s)")
for the Tenant Rental Period.
8. In addition to the density bonus granted to Developer, the Project has been
granted concessions or deviations from City development standards including: (i) reduction of
minimum lot size for five (5) units from 18,000 square feet to 13,922 square feet, (ii) reduction
of the average setback requirement from 27 feet to 21 feet, and (iii) a reduction of the side yard
requirements to 5 feet 2 inches and a reduction of the average setback on the street side to 7 feet
11 inches.
WHEREFORE, for and in consideration of the mutual promises, covenants and
conditions and conditions herein contained, the parties hereto do hereby agree as follows:
DEFINITIONS
The following words and phrases shall mean and be defined and used for the
purposes of this Agreement as follows:
A. "Affordable Rent" means the monthly rents which do not exceed the maximum
amount applicable to Very Low Income households, as promulgated by the U.S. Department of
Housing and Urban Development (HUD).
B. "Affordable Rental Unit" means the units that will be rented at affordable rent to
very low income qualified households.
C. "Affordable Rent Schedule" means a rent schedule established as of the date of
issuance of an occupancy permit (exclusive of tenant utility payments or security deposits) for
the required number/percentage of the total number of units in the Project which are to be rented
or available for rent to very low income tenants. Said Affordable Rent Schedule shall be
established at the time of the issuance of the occupancy permit ("Initial Rent Schedule") and
shall be created in accordance with the terms and conditions of the Disposition and Development
Agreement entered into by and between the Developer and the Community Redevelopment
Agency for the City of Santa Ana and the recorded Affordability Restrictions on Transfer of
Property.
2
39B-20
D. "Agency" means the Community Redevelopment Agency of the City of Santa
Ana, a public body, corporate and politic, exercising governmental functions and powers and
organized and existing under Chapter 2 of the Community Redevelopment Law of the State of
California, and any assignee of or successor to its rights, powers and responsibilities.
E. "Agreement" means this Density Housing Bonus Agreement with Affordable
Housing Restriction, entered into by and between the City and the Developer.
F. "Area Median Income" means the median income figures for Orange County
adopted by the State of California pursuant to Health and Safety Code section 50093, as
amended from time to time.
G. "City" means the City of Santa Ana, a charter city and municipal corporation.
H. "Completion of the Project" shall mean the date on which the certificate of
occupancy is issued by City for occupancy in the Project.
1. "Density bonus" means the number of dwelling units approved by City for
development on the Property which exceeds the number specified in Recital 2 of this Agreement.
J. "Developer" means Santa Ana WBBB, LP, a limited partnership consisting of
Orange Housing Development Corporation (OHDC) and C & C Development.
K. "Development" means construction or rehabilitation or a combination thereof.
L. "Household Size Appropriate for Unit" for the purpose of determining Affordable
Housing Cost only, means three persons for a two bedroom Affordable Unit and four persons for
a three bedroom Affordable Unit. Household Size Appropriate for Unit is not intended to
constitute a limitation on the number of persons who may live in the Unit.
M. "Income Certification" means an income certification for very low income tenants
in a form set forth in "Exhibit B," attached hereto and incorporated herein by this reference as if
set forth in full.
N. "Project" means the construction of five (5) rental units, of which, all five will be
Affordable Units.
0. "Tenant Rental Period" means with respect to the Project, the period commencing
on the date of issuance of the occupancy permit and ending at the expiration of thirty (30) years
thereafter, pursuant to Density Bonus Law.
P. "Very Low Income Household/Tenants" means persons and families whose
income does not exceed fifty (50%) of the median income for the area, as computed by the
method described in the income certificate and for whom an income certification has been
obtained or prepared in accordance with the provisions of this Agreement, as adjusted by HUD
from time to time.
39B-21
II.
CONDITIONS TO AGREEMENT
A. This Agreement is conditional upon City approval of development plans for the
Project which provide for not less than five (5) total dwelling units in the Project consisting of
two 2-bedroom and three 3-bedroom units, and upon completion of the Project in accordance
with such approved plans by Developer. Nothing in this Agreement obligates City to grant such
approval or Developer to develop the Project.
B. The density bonus provided by this Agreement is conditional upon Developer and
any successor-in-interest of Developer in the Property being subject to the covenants set forth in
this Agreement as running with the Property. If Developer conveys the Property prior to
recordation of this Agreement in the official Records of Orange County, no building permit or
certificate of occupancy for the Project which would allow for development or occupancy of
more dwelling units than specified in Recital No. 2 of the Agreement shall be issued, unless the
successor-in-interest of Developer of the Property executes a document suitable for recordation
in the Official Records of Orange County binding such successor-in-interest to the terms and
conditions of this Agreement.
C. Except as set forth expressly herein, Developer shall carry out the design and
construction of the Project in conformity with all applicable laws, including all applicable state
labor standards, the City zoning and development standards, building, plumbing, mechanical and
electrical codes, and all other provisions of the City of Santa Ana Municipal Code, all applicable
disabled and handicapped access requirements, including the Americans With Disabilities Act
(42 U.S.C. Section 12101, et seq.) and Government Code Section 4450, et seq.
III.
AFFORDABLE RENTAL UNIT COVENANT
A. Developer covenants that no less than five (5) dwelling unit(s) in the Project, or at
least 100% of the units in the Project shall at all times during the Tenant Rental Period be rented
to, or held vacant and available for immediate occupancy by very low income households, as
defined in California Health & Safety Code section 50105, at a rent that does not exceed 30
percent of 50 percent of the area median income, as adjusted for household size.
B. Developer agrees to make a good faith effort to verify that the income and asset
statement provided by an applicant in an income certification is accurate by taking at least one of
the following steps as a part of the verification process: (1) obtain a pay stub for the most recent
pay period, (2) obtain an income tax return for the most recent tax year, (3) conduct a TRW or
similar credit check, (4) obtain an income verification form from the applicant's current
employer, (5) obtain an income verification form from the Social Security Administration and/or
the California Department of Social Services if the applicant receives assistance from either of
such agencies, or (6) if the applicant is unemployed and has no such tax return, obtain another
4
39B-22
form of independent verification.
C. Upon written request by Developer, City agrees to determine promptly the Initial
Rental Schedule based upon the terms of this Agreement and advise Developer of the Initial
Rental Schedule within five (5) days of the issuance of the occupancy permit.
D. Developer agrees to accept as tenants on the same basis as all other prospective
tenants, very low income tenants who are recipients of federal certificates for rent subsidies
pursuant to the existing program under Section 8 of the United States Housing Act of 1937 or its
successor, and shall not apply selective criteria to Section 8 certificate holders that are more
burdensome than the criteria applied to all other prospective tenants.
IV.
MISCELLANEOUS
A. Covenants Run with the Land. The provisions of this Agreement shall constitute
covenants, conditions, and restrictions which shall run with the land, and shall inure to the
benefit of and be binding upon the Developer, its successors and assigns in interest as successive
owners of the Project, as provided herein. Any sale, transfer, or lease of the Project shall be
deemed to be made and accepted upon and subject to the covenants, conditions and restrictions
and provisions hereof whether or not referred to in the instrument of sale, transfer or lease.
B. Independent Contractor. Developer is, and shall be deemed to be, an independent
contractor and not an employee of City and shall not become an agent of City. The City is not a
partner, joint venturer, alter-ego, manager, or business associate in this Project. The City is not
deemed responsible or liable for any acts, omissions or decisions of Developer, nor is City
responsible for any loss or injury of any kind to any person or property arising from any
construction or development of the Project.
C. Non-Discrimination.
1. Leasing. Developer hereby covenants by and for itself, its successors and
assigns, that there shall be no discrimination against or segregation of, any person or
group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955
of the Government Code, as those bases are defined in Sections 12926, 12926. 1,
subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section
12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy,
tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person
claiming under or through him or her, establish or permit any practice or practices of
discrimination or segregation with reference to the selection, location, number, use or
occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein
conveyed. The foregoing covenants shall run with the land.
2. Employment. In performing its obligations under this Agreement,
Developer shall not discriminate because of race, color, creed, religion, sex, marital
status, sexual orientation, age, national origin, ancestry, or disability, as defined and
5
39B-23
prohibited by applicable law, in the recruitment, selection, training, utilization,
promotion, termination or other related activities. Developer affirms that it is an equal
opportunity employer and shall comply with all applicable state and local laws and
regulations.
D. Notice. Any notices, requests or approvals given under this Agreement from one
party to another may be personally delivered or deposited with the United States Postal Service
for mailing, postage prepaid, registered or certified mail, return receipt requested, to the address
of the other party as stated in this paragraph, and shall be deemed given at the time of personal
delivery or at the time of deposit for mailing. Either party may change its address for notice by
giving written notice thereof to the other party.
CITY: City of Santa Ana
Community Development Agency
20 Civic Center Plaza - M-37
Santa Ana, CA 92702
DEVELOPER: Santa Ana WBBB, L.P.
c/o Orange Housing Development Corporation
414 E. Chapman Avenue
Orange, CA 92866
Attention: Chief Executive Officer
COPY TO: C&C Development
14211 Yorba Street, Ste. 200
Tustin, CA 92781
E. Attorney Fees. In the event legal action is brought to enforce any provisions
hereof, the prevailing party shall be entitled to reasonable attorney's fees, together with other
legally allowed costs.
F. Recordation of Agreement. Upon issuance of building permits for the Project,
this Agreement shall be recorded in the official records of Orange County, California. City and
Developer agree to execute and deliver for recordation such additional documents or instruments
as the other may reasonably request to further confirm or acknowledge the provisions hereof,
including the expiration of very low income tenant rental period.
G. Amendments. This Agreement may be amended, modified, or changed by the
parties hereto, City and Developer, provided that said amendment, modification, or change is in
writing and approved by both parties.
H. Default. Developer shall be in default hereunder if it shall fail to observe or
perform any covenants, conditions, restriction, or provision contained herein on its part to be
observed or performed which continues after notice to Developer and failure to cure as provided
herein.
6
39B-24
If any such default shall have occurred, then and in such event, City shall be entitled in
addition to all other remedies provided by law or in equity:
1. To compel specific performance by Developer of its obligations under this
Agreement, it being recognized that the beneficiaries of Developer's obligations
hereunder cannot be adequately compensated for by monetary damages in the
event of Developer's default.
2. In the event the actual rent collected by Developer for any unit required under this
Agreement to be rented to lower income households and very low income tenants
is in excess of the maximum affordable rent allowed for such unit in violation of
the requirements of Paragraph III of this Agreement, the amount by which any
actual rent collected for such unit exceeds the maximum affordable rent for such
unit shall be deemed damages payable to City by Developer. Such damages shall
be in addition to any other remedy at law or in equity to City.
1. Legal Advice. Each party represents and warrants to the other the following: they
have carefully read this Agreement, and in signing this Agreement, they do so with full
knowledge of any right which they may have; they have received independent legal advice from
their respective legal counsel as to the matters set forth in this Agreement, or have knowingly
chosen not to consult legal counsel as to the matters set forth in this Agreement; and, they have
freely signed this Agreement without any reliance upon any agreement, promise, statement or
representation by or on behalf of the other party, or their respective agents, employees, or
attorneys, except as specifically set forth in this Agreement, and without duress or coercion,
whether economic or otherwise.
J. No Conflict of Interest. No member, official or employee of the City shall have any
personal interest, direct or indirect, in this Agreement, nor shall any such member, official or
employee participate in any decision relating to the Agreement which affects his or her personal
interests or the interests of any corporation, partnership or association in which he or she is, directly
or indirectly, interested.
K. Nonliabili of City Officials and Employees. No member, official or employee of
the City of Santa Ana shall be personally liable to the Developer, or any successor-in-interest, in the
event of any default or breach by the City on any obligation under the terms of this Agreement.
L. Effective Date of Agreement. This Agreement shall be dated and effective as of the
date of the action by the City on which it approves this Agreement.
M. Entirety of Agreement. This Agreement integrates all of the terms and conditions
mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements
between the parties with respect to the matters contained herein.
N. Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of Developer and Santa Ana and their respective successors and assigns.
7
39B-25
O. Governing Law. This Agreement has been entered into, is to be performed
entirely within, and shall be governed by and construed in accordance with the laws of the State
of California, with venue in Orange County.
8
39B-26
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year
first above written.
ATTEST:
MARIA D. HUIZAR
Clerk of the Council
APPROVED AS TO FORM:
JOSEPH W.FLETCHER
City Attorney
DEVELOPER:
SANTA ANA WBBB LP, a California Limited
Partnership
By: ORANGE HOUSING DEVELOPMENT
CORPORATION a California nonprofit
corporation, its managing general partner
CITY OF SANTA ANA:
DAVID N. REAM
City Manager
By:
Lisa E. Storck
Assistant City Attorney
By:
Eunice Bobert
Chief Executive Officer
By: C&C Development, LLC, a California
limited liability company, its developer general
partner
By:
Todd R. Cottle, its member
By: The Cottle Family Trust Dated 3/8/1987,
its member
By:
Barry A. Cottle, Trustee
9
39B-27
EXHIBIT A
LEGAL DESCRIPTION
39B-28
ROH - 12/13/10
RESOLUTION NO. 2010-22
A RESOLUTION OF THE PLANNING COMMISSION OF
THE CITY OF SANTA ANA APPROVING DENSITY BONUS
APPLICATION NO. 2010-03 TO ALLOW A FIVE-UNIT
RESIDENTIAL DEVELOPMENT AND APPROVING SITE
PLAN REVIEW NO. 2010-02 AT 217 AND 219 SOUTH
BIRCH STREET
BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY OF
SANTA ANA AS FOLLOWS:
Section 1. The Planning Commission of the City of Santa Ana hereby finds,
determines and declares as follows:
A. Applicant is requesting approval of Density Bonus Application 2010-03
approving three (3) deviations from the Specific Development No. 40 (SD-
40) zoning district development standards pursuant to Government Code
Sections 65915, et seq.
B. Applicant also is requesting approval of Site Plan Review No. 2010-02 for
the construction of two two-story buildings to create five apartments.
C. The Planning Commission of the City of Santa Ana held a duly noticed
public hearing on December 13, 2010.
Section 2. The Planning Commission of the City of Santa Ana hereby finds,
determines and declares as to Density Bonus Application 2010-03 as follows:
A. The proposed development will materially assist in accomplishing the goal
of providing affordable housing opportunities in economically balanced
communities throughout the city.
The proposed five-unit residential development will materially assist
in accomplishing the goal of providing affordable housing
opportunities in an economically balanced community. The
applicant will construct, rent and maintain five units, representing
100 percent of the proposed development, to Very Low Income
Households, thus increasing the total supply of affordable units
available for that level of affordability.
B. The development will not be inconsistent with the purpose of the
underlying zone or applicable designation in the general plan land use
element.
Resolution No. 2010-22
Page 1 of 5
39B-29
As proposed, the project will be consistent with the purpose of the
SD-40 zoning district. With the approval of the three deviations
requested by the applicant, the project will comply with all
applicable development standards established in the SD-40 zoning
district and the guidelines within Citywide design standards.
Additionally, the project will be consistent with purpose of the
General Plan Land Use Element and Housing Element, as it will
further the goals and policies of the plan and not obstruct their
attainment. Specifically, it will further the Land Use Element Goal
3, preserve and improve the character and integrity of existing
neighborhood; Policy 3.1, support development which provides a
positive contribution to neighborhood character and identity; Policy
3.5, encourage new development and/or additions to existing
development that is compatible in scale, and consistent with the
architectural style and character of the neighborhood and Policy
5.5, encourage development which is compatible with, and
supportive of surrounding land uses. Additionally, it will further the
Housing Element, Goal 2, provide a diversity of quality housing,
affordability levels, and living experiences that accommodate Santa
Ana's residents and workforce of all household types, income
levels, and age groups to foster an inclusive community; Policy HE-
2.3, Rental Housing. Encourage the construction of rental housing
for Santa Ana's residents and workforce, including a commitment to
very low, low, and moderate income residents and moderate
income Santa Ana workers; and Policy HE-2.8, Agency-Owned
Sites. Maximize affordable housing on Agency-owned properties
that is of high quality, sustainable, and available to various income
levels.
C. The deviation is necessary to make it economically feasible for the
applicant to utilize a density bonus authorized for the development
pursuant to section 41-1604
The deviations of the development standards requested are
necessary to make the project economically feasible. The
requested deviations are: (i) reduction of minimum lot size for five
(5) units from 18,000 square feet to 13,922 square feet, (ii)
reduction of the average setback requirement from 27 feet to 21
feet, and (iii) a reduction of the side yard requirements to 5 feet 2
inches and a reduction of the average setback on the street side to
7 feet 11 inches.
Section 3. The Planning Commission of the City of Santa Ana hereby finds,
determines and declares as to Site Plan Review No. 2010-02 as follows:
Resolution No. 2010-22
Page 2 of 5
39B-30
A. Section 41-593.5(c) of the Santa Ana Municipal Code requires a review by
the Planning Commission of all plans within a specific development plan
area to ensure the project is in conformity with the Specific Plan.
B. With the approval of the three deviations requested by the applicant, the
project is in compliance with all applicable development standards outlined
within the Heninger Park Specific Development No. 40 (SD-40).
Section 4. In accordance with the California Environmental Quality Act, the
proposed project is categorically exempt from CEQA review per Section 15303, class 3
and Section 15332, Class 32. The Class 3 exemption allows new construction multi-family
residential structures in urbanized areas designed for not more than six dwelling units.
The Class 32 exemption allows for construction of in-fill development projects of less than
five acres in urbanized areas. A Notice of Exemption for Environmental Review No. 2010-
102 will be filed for this project.
Section 5. The Planning Commission of the City of Santa Ana after conducting
the public hearing hereby approves Density Bonus Application No. 2010-03 and
approves Site Plan Review No. 2010-02 as conditioned in Exhibit "A" attached hereto
and incorporated herein. This decision is based upon the evidence submitted at the
abovesaid hearing, which includes but is not limited to: the Request for Planning
Commission Action dated December 13, 2010 and exhibits attached thereto; and the
public testimony, all of which are incorporated herein by this reference.
ADOPTED this 13th day of December, 2010 by the following vote:
AYES: Commissioners: Alderete, Betancourt, Gartner, Yrarrazaval (4)
NOES: Commissioners: Acosta, Walters (2)
ABSENT: Commissioners: Turner (1)
ABSTENTIONS: Commissioners: None (0)
Eric Alderete
Chairman
Resolution No. 2010-22
Page 3 of 5
39B-31
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
By:
Ryan O. Hodge
Assistant City Attorney
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARTHA RAMIREZ, Secretary of the Planning Commission, do hereby attest to and
certify the attached Resolution No. 2010-22 to be the original resolution adopted by the
Planning Commission of the City of Santa Ana on December 13, 2010.
Date:
Secretary of the Planning Commission
City of Santa Ana
Resolution No. 2010-22
Page 4 of 5
39B-32
Conditions of Approval for Site Plan Review No. 2010-02
Site Plan Review No. 2010-02 is approved subject to compliance, to the reasonable
satisfaction of the Planning Manager, with all applicable sections of the Santa Ana
Municipal Code, the California Administrative Code, the California Building Standards
Code and all other applicable regulations.
The applicant must comply with each and every condition listed below prior to
exercising the rights conferred by the Site Plan Review.
The applicant must remain in compliance with all conditions listed below throughout the
life of the Site Plan Review. Failure to comply with each and every condition may result
in the revocation of the Site Plan Review.
A. Planning Division
All proposed site improvements must conform to the Site Plan Review
approval of DP No. 2010-28 and the attached exhibits.
2. Any amendment to this Site Plan Review must be submitted to the
Planning Division for review. At that time, staff will determine if
administrative relief is available or the Site Plan Review must be
amended.
3. A Voluntary Lot Merger application shall be approved and recorded prior
to issuance of the building permits.
Resolution No. 2010-22
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39B-33
39B-34