Loading...
HomeMy WebLinkAboutPOWERPOINT - 75B_HOUSING OPPORTUNITY ORDINANCE_FINAL REVHOUSING OPPORTUNITY ORDINANCE City Council Zoning Ordinance Amendment 2015-03 August 4, 2015 75B UNDERLYING PURPOSE OF HOUSING OPPORTUNITIES ORDINANCE Ensure creation of high quality affordable housing along with market rate housing with minimum or no public subsidy . 2 BACKGROUND Current Housing Opportunity Ordinance Adopted November 2011,  referenced in 2014 Housing Element Requires 15 percent of new  housing to be affordable 3 ORDINANCE APPLICABILITY When does Ordinance apply? Zone change that results in residential  density increase Approved applications proposing to  increase residential component exceeding original mixed use development approval Conversion of commercial or industrial  land to residential uses Conversion of rental units to condominium  ownership of 5 units or more Construction of New “residential projects”  of 5 or more units 4 IMPLEMENTATION CHALLENGES Unpredictable  Inconsistent  Too many unknown steps in process  Makes adaptive reuse too costly  Does not allow for reliable financial planning of  projects Makes Santa Ana less competitive in attracting new  market rate housing investment 5 GOALS OF ORDINANCE AMENDMENT Create Affordable Housing Mixed with Market Rate  Housing Minimize Public Subsidies for Affordable Housing  Production Maintain Competitive Edge on Attraction of Private  Investment in Housing Production Clear, Consistent, Predictable Development Pathway  Allow for Creation of Diverse Housing Options for Socio-  economically Diverse Population Provide Options to Minimize Inclusionary Housing Cost  Minimize Negative Impacts on Existing Tenants on Rehab  Projects 6 CONSIDERATIONS Constrains Historic Adaptive  Reuse/ Building Re-purposing Treats New and Existing  Development the same while economics differ Constrains alternatives to  construction of New units on- site 7 STAKEHOLDER OUTREACH Housing Developers and Housing  Advocates Stakeholders Discussions:  July 8, 2015  July 13, 2015  Planning Commission Meeting  July 20, 2015 8 PROPOSED MODIFICATIONS Exemptprojects approved prior to date  of adoption of original HOO ordinance Inclusionary Units criteria:  For-Sale -Moderate 15 %  Rental -Low/ Very Low 10%  ExemptAdaptive Reuse from HOO  requirement 9 ADAPTIVE REUSE & REPURPOSING 10 PROPOSED MODIFICATIONS Residential Projects over 20 unitsprovide  Inclusionary Units on-site Provide for off-site construction of units (1  for 1) Allow rehabilitationof off-site units at 1.5  rehabilitated units in-lieu of 1 newly constructed unit (1 to 1 for Target Areas) Inclusionary Unit production 100%  responsibility of developer; no City or Housing Authority assistance 11 REHABILITATION TARGET AREAS Cornerstone Village  Cedar-Evergreen  Townsend-Raitt  West Myrtle  12 PROPOSED MODIFICATIONS All Inclusionary Units (rental and ownership) 55  years Apply only to conversions for number of units in  excess of General Plan prescribed densities RemoveTakings Determination from ordinance  RemoveExecutive Director Discretionary  Authority Simplify In-Lieu fee calculation ($5/square foot  of habitable space) 13 INCENTIVES AND CONCESSIONS Similar to State Density Bonus : (SB 1818) Parking:  1 space/ 0-1 bedroom units  2 spaces/2-3 bedroom units  2 ½ spaces for 4 or more bedroom units  Development Standards:  Setback -up to 25 percent  Height –up to 20 feet  14 INCENTIVES AND CONCESSIONS Similar to State Density Bonus (SB : 1818) Sliding Scale additional density bonus for  every additional affordable unit beyond required inclusionary units 15 PROPOSED MODIFICATIONS Pipeline projects eligible for newly  adopted In-Lieu fee: Deemed complete prior to August 4, 2015  Submit new or revised Housing  Inclusionary Plan Pay In-Lieu fee of $5/ square feet  Revisit/reevaluatein 3 years  16 DISCUSSIONS SINCE PC MEETING Earmarking In-Lieu fees  In-Lieu fee for 21 or more unit  projects at a higher rate Allowing up to 50 units to pay in-lieu  fee Extremely Low not addressed  17 EARMARKING IN-LIEU FEES Affordable Developer Exclusive Rights over Becomes a Inclusionary Housing Public Fund Funds Other Affordable Housing Funds Add Restrictions Project Restrictions on Citizenship 18 OPEN REQUEST FOR PROPOSAL PROCESS Inclusionary Housing Request for Proposals Becomes a Fund (RFP) Public Fund Select Developer Project 19 PC RECOMMENDATION Planning Commission recommends City  Council approve Zoning Ordinance Amendment No. 2015-03 One Commissioner advocated NOT  exempting “adaptive reuse” projects One Commissioner would like more time  to discuss and absorb draft ordinance Two commissioners absent  20 RECOMMENDATION & ALTERNATIVES Recommendation:  Adopt Proposed Draft Amended Ordinance  Alternative 1:  Allow applicants with projects of 21 or more units to pay an in-lieu  fee at a higher flat rate established by the City Council; Establish the higher in-lieu fee high enough to sufficiently fund  building new affordable housing through open, competitive public process Alternative 2:  Allow applicants with projects containing up to 50 units to be eligible  for paying the in-lieu fee Alternative 3:  Make no change  21 22