HomeMy WebLinkAbout11B - 2ND READ ORD - HOUSING OPPORTUNITY ORD - HOOREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
SEPTEMBER 1, 2015
TITLE:
ORDINANCE SECOND READING: AMEND
ARTICLE XVIII.I OF THE SANTA ANA
MUNICIPAL CODE REGARDING THE
HOUSING OPPORTUNITY ORDINANCE
AND AMEND THE ADAPTIVE REUSE
ORDINANCE TO EXEMPT SUCH
PROJECTS FROM THE APPLICATION OF
THE HOUSING OPPORTUNITY
ORDINANCE {STRATEGIC PLAN NO. 5, 1)
CITY MANAGE
RECOMMENDED ACTION
Place amended ordinance on second reading and adopt.
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1s' Reading
❑ Ordinance on 2otl Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
DISCUSSION
On August 4, 2015, the following Ordinance was introduced for first reading and City Council authorized
publication of title by a vote of 5 -0 (Martinez and Pulido absent):
ORDINANCE NO. NS -2881 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA AMENDING ARTICLE XVIIH OF THE SANTA ANA MUNICIPAL CODE
REGARDING THE HOUSING OPPORTUNITY ORDINANCE AND AMENDING THE ADAPTIVE
REUSE ORDINANCE TO EXEMPT SUCH PROJECTS FROM THE APPLICATION OF THE
HOUSING OPPORTUNITY ORDINANCE
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #5 Community Health, Livability,
Engagement & Sustainability, Objective #1 (Establish a comprehensive community engagement initiative
to expand access to information and create opportunities for stakeholders to play an active role in
discussing public policy and setting priorities).
FISCAL IMPACT
There is no fiscal impact associated with this action.
Mafia D. Huizar,
Clerk of the Council
ATTACHMENT: Ordinance No. NS -2881
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ORDINANCE NO. NS -XXXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA ANA AMENDING ARTICLE XVIII.I OF THE
SANTA ANA MUNICIPAL CODE REGARDING THE
HOUSING OPPORTUNITY ORDINANCE AND
AMENDING THE ADAPTIVE REUSE ORDINANCE TO
EXEMPT SUCH PROJECTS FROM THE APPLICATION
OF THE HOUSING OPPORTUNITY ORDINANCE
THE CITY COUNCIL OF THE CITY OF SANTAANA DOES ORDAIN 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 City Council adopted the Housing Opportunity
Ordinance (HOO) that applied to proposals for five (5) or more housing units.
Residential projects are required to provide fifteen percent of the total number
of units as affordable, whether the project is for sale or rental. The existing
ordinance applies to those developments requesting a zoning amendment
from a non - residential to a residential zone (including City- initiated re- zones),
an increase in density, a conversion to the residential provision of an overlay
zone, or conversion of apartments to condominiums.
B. A review of the contents of the HOO has revealed that certain components of
the ordinance prevent staff from fair and consistent implementation of the
ordinance. In reviewing the existing ordinance, staff has identified a few areas
that warrant a revision to the existing Housing Opportunities Ordinance.
C. In examining the existing ordinance, staff has identified the following items as
points of confusion that may be impediments to new housing production and
production of new affordable housing units in the City: constraints on adaptive
reuse of historic structures and retrofitting of existing buildings, already built or
entitled (but not yet built) projects, viable alternatives for on -site production of
inclusionary affordable housing units, and the calculation of the in -lieu housing
fee.
D. Amendments to the HOO are necessary for the clarification of these issues
and to recognize the demonstrated need in the City for housing which is
affordable for lower income households. The City is hereby promoting the
development of affordable housing units by Developers without City subsidy by
allowing for incentives to encourage such development in new residential
projects.
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SECTION 2. Article XVIII.I (Housing Opportunity Ordinance) is hereby amended
such that it reads as follows:
Article XVIII.I - Housing Opportunity Ordinance
Sec. 41 -1900. Purpose
This Article establishes standards and procedures to encourage the development of
housing that is affordable to a range of households with varying income levels. The
purpose of this Article is to encourage the development and availability of affordable
housing by requiring the inclusion of affordable housing units within new developments or
the conversion of rental units to condominium ownership when the number of units exceed
the densities permitted under the General Plan.
Sec. 41 -1901. Definitions
As used in this Article, the following terms shall have the following meanings
"Adjusted for Household Size Appropriate for the Unit" means a household of one person
in the case of a studio unit, two persons in the case of a one - bedroom unit, three persons
in the case of a two- bedroom unit, four persons in the case of a three - bedroom unit, and
five 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, in accordance
with Sections 50052.5 and 50053 of the Health & Safety Code:
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
seventy (70) percent of the Orange County median income for for -sale units, and
thirty (30) percent of the income of a household earning sixty (60) percent of the
Orange County median income for rental units, adjusted in either case for family
size appropriate for the unit.
In the event of a conflict between the fractions specified in this definition and those
found in Sections 50052.5 and 50053 of the Health & Safety Code, the fractions
specified by State law shall control.
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"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.
"Executive Director" means the Executive Director of Community Development 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 of Santa Ana in which all
fees collected in compliance with this Article shall be deposited.
"Inclusionary Housing Plan" means the plan submitted by the Developer, in a form
specified by the Executive Director, detailing how the provisions of this Article will be
implemented for the proposed Residential Project.
"Inclusionary Unit' means a dwelling unit that will be offered for sale or rent to Very Low or
Low Income Households, at an affordable housing cost, in compliance with this Article.
"Low- Income Households" or "Lower income households" means persons and families
whose income does not exceed the qualifying limits for lower income families as
established and amended from time to time pursuant to Section 8 of the United States
Housing Act of 1937. The limits shall be published in the California Code of Regulations
as soon as possible after adoption by the Secretary of Housing and Urban
Development. In the event the federal standards are discontinued, the California
Department of Housing and Community Development shall, by regulation, establish
income limits for lower income households for all geographic areas of the state at eighty
(80 %) percent of area median income, adjusted for family size and revised annually.
Lower income households includes very low income households, as defined in the
Health & Safety Code, Section 50105, and extremely low income households, as
defined in Section 50106.
"Low- Income Units and Very Low - Income Units" means Inclusionary Units restricted to
occupancy by Low or Very Low- Income Households, respectively, at an affordable
housing cost.
"Market Rate Units" means dwelling units in a Residential Project that are not Inclusionary
Units.
"Pipeline Project" means any project for which an application was submitted and the
application was deemed complete prior to August 4, 2015.
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"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 5 or more residential lots or residential
condominium units; or
The new construction of a project consisting of 5 or more multi - family units; or
The new construction of 5 or more separate houses or dwelling units; or
The conversion of 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.
"Very low income households" means persons and families whose incomes do not
exceed the qualifying limits for very low income families as established and amended
from time to time pursuant to Section 8 of the United States Housing Act of 1937. These
qualifying limits shall be published by the department in the California Code of
Regulations as soon as possible after adoption by the Secretary of Housing and Urban
Development. In the event the federal standards are discontinued, the California
Department of Housing and Community Development shall, by regulation, establish
income limits for very low income households for all geographic areas of the state at fifty
(50 %) percent of area median income, adjusted for family size and revised annually.
Very low income households include extremely low income households, as defined in
Health & Safety Code Section 50106.
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Sec. 41 -1902. Applicability and Inclusionary Unit Requirements
(a) Applicability. The requirements of this Article shall apply to any new Residential
Project located within the City, including new construction, and condominium
conversions which exceed the General Plan prescribed densities.
(b) Applications. The requirements of this Article shall apply to any new Residential
Project proposed in connection with an application to do any of the following:
(1) Increase the permitted residential density of the subject property above the
density permitted by applicable zoning at the time of the application. The
inclusionary requirements shall only apply to the incremental increase in the
number of units beyond that which is allowed by the applicable zoning.
(2) Increase in the permitted residential density or percentage of residential
development allowed due to City initiated zone changes after November 28,
2011.
(3) Increase the permitted percentage of residential development allowed for a
mixed -use development above the percentage at the time of the application.
The inclusionary requirements shall only apply to the incremental increase in
the number of units beyond that which is allowed by the applicable zoning.
(4) Approval of new projects in an overlay zone site plan permitting residential
land uses pursuant to Division 28 of this Chapter.
(5) Convert rental units to condominium ownership. The inclusionary
requirements shall only apply to the incremental increase in the number of
units beyond that which is allowed by the applicable zoning.
(c) Units for sale. If the new Residential Project consists of units for sale, then a
minimum of 15- percent of the total number of units in the project shall be sold or
rented to Low Income Households.
(d) Rental units. If the new Residential Project consists of rental units, then a minimum
of 15- percent of the units shall be rented to Low - Income Households, or 10- percent
rented to Very Low - Income Households.
(e) Rounding of quantities in calculations. In calculating the required number of
Inclusionary Units, fractional units shall be rounded -up to the next whole unit. The
Developer may choose to pay an in -lieu fee set forth in Section 41- 1904(c) for the
fractional units, which shall be calculated based on the number of habitable square
feet applicable in each case.
(f) Displacement of existing Inclusionary Units. Notwithstanding any other provision of
this Article, any Residential Project subject to this Article that results in the
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displacement of Very Low and /or Low Income Household(s) shall be required to
provide on -site Inclusionary Units as required by this Article.
(g) Compliance with Article. All Inclusionary Units required by this Article shall be sold
or rented in compliance with this Article.
Sec. 41 -1903. Exempt projects
The following are exempt from the requirements of this Article:
(a) Applications deemed complete. Applications that include a Residential Project for
which a development application has been deemed complete prior to November
28, 2011.
(b) Development Agreements. A Residential Project that is the subject of a
development agreement under applicable provisions of the California Government
Code that expressly provides for an exclusion to this Article or provides for a
different amount of Inclusionary Units from that specified by this Article, provided
the development agreement was adopted on or before November 28, 2011.
(c) Project with Regulatory Agreement. A Residential Project for which a Regulatory
Agreement has been approved, provided that the Regulatory Agreement is
effective at the time the Residential Project would otherwise be required to comply
with the requirements of this Article, and there is no uncured breach of the
Regulatory Agreement before issuance of a Certificate of Occupancy for the
project. This may include a Residential Project that has obtained a Density Bonus
under Article XVI.I of the Santa Ana Municipal Code. Such projects cannot be used
to satisfy the inclusionary requirement for another project.
Sec. 41-1904. Options to Satisfy Inclusionary Requirements
(a) On -site units. The primary means of complying with the inclusionary requirements
of this Article shall be the provision of on -site Inclusionary Units in accordance with
Section 41 -1901, above. A Developer may only satisfy the requirements of this
Article by means of an alternative to on -site Inclusionary Units in accordance with
the requirements and procedures of this Section.
(b) Off -site units.
1. New Units. The Developer may satisfy the Inclusionary Unit requirements
for the Project, in whole or in part by constructing the required new
inclusionary housing at a different location within the City of Santa Ana
borders at the ratio of one square foot of habitable Inclusionary Unit space
for each required habitable square foot. While the total habitable square
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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 of Santa Ana,
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 of Santa Ana at a rate of 1 % 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 of Santa Ana at a rate of 1 habitable
square foot per each required habitable square foot of affordable
Inclusionary Units.
(c) In -lieu fee.
(1) Twenty (20) or fewer units. In the case of a Residential Project containing
between five (5) and twenty (20) residential lots or residential units, the
Developer may elect to satisfy the Inclusionary Unit requirements for the
Project, in whole or in part, by payment of a fee in lieu of constructing some
or all of the required units.
(2) Calculation of fee. The amount of the fee allowed by this Section shall be
fifteen dollars per square foot ($15.00/ft.2) of the sum total of the number of
habitable square feet within the entire Project, as measured from the exterior
walls of the residential units. This calculation does not include exterior
hallways, common areas, landscape, open space or exterior stairways.
(3) Timing of payment. The Developer shall pay any in -lieu fees allowed by this
Section in full before issuance of the first Building Permit for any portion of
the Residential Project, including any non - residential portions of a mixed -use
development. The Developer may provide input regarding what project the
in lieu fees should be applied towards, but such input shall not be
dispositive. The in lieu fees collected by the City are City funds over which
the City has complete and absolute discretion.
(4) Inclusionary Housing Fund. Fees collected in compliance with this Section
shall be deposited in the Inclusionary Housing Fund.
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Sec. 41- 1904.1. Inclusionary Housing Development Incentives
(a) In order to make the production of new Inclusionary Units on -site or off -site or off-
site rehabilitated units, certain incentives, standards and concessions shall be
allowed and prescribed as set forth herein below. The Developer may opt to take
advantage of up to two (2) concessions among the following possible concessions:
(1) Parking Concession: one (1) on -site parking space for each 0 -1 bedroom
unit; two (2) on -site parking spaces for each 2 -3 bedroom unit; 2' /x parking
spaces for each 4 or more bedroom unit.
(2) Concession on one of the following Zoning Code site development
standards:
(i) Setback reduction of up to 25% reduction on subject property;
(ii) Height increase of up to 20 additional feet;
(iii) Density Bonus such that:
a) An applicant must select only one housing affordability
income level to merit a density bonus. A combination of
affordable housing income levels is not permitted to be
combined to increase the amount of density bonus.
b) For each 1 percent increase above 15 percent in the
percentage of units affordable to low income households, the
density bonus shall be increased by 1.5 percent up to a
maximum of 35 percent.
c) For each 1 percent increase above 10 percent in the
percentage of units affordable to very low income
households, the density bonus shall be increased by 2.5
percent up to a maximum of 35 percent.
Sec. 41 -1905. Housing Plan and Housing Agreement
(a) Submittal and execution. The Developer shall comply with the following
requirements:
(1) Inclusionary Housing Plan. The Developer shall submit an Inclusionary
Housing Plan in a form specified by the Executive Director, detailing how the
provisions of this Article will be implemented for the proposed Residential
Project. The Inclusionary Housing Plan and its supportive documents,
plans, and details shall be submitted at the same time as the site plan and
application materials for the original project. All Inclusionary Housing Plans
shall be subject to the approval of the Executive Director and subject to
appeal processes and procedures set forth in the Santa Ana Municipal
Code,
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(2) Inclusionary Housing Agreement. The Developer shall execute and cause
to be recorded an Inclusionary Housing Agreement. The Inclusionary
Housing Agreement shall be a legally binding agreement between the
Developer and the City, executed by the City Manager, or his or her
designee, and in a form and substance satisfactory to the Executive Director
and the City Attorney, and containing those provisions necessary to ensure
that the requirements of this Article are satisfied, whether through the
provision of Inclusionary Units or through an approved alternative method.
(b) Discretionary approvals. No discretionary approval shall be issued for a Residential
Project subject to this Article until the Developer has submitted an Inclusionary
Housing Plan.
(c) Issuance of Building Permit. No Building Permit shall be issued for a Residential
Project subject to this Article unless the Executive Director has approved the
Inclusionary Housing Plan, and any required inclusionary Housing Agreement has
been recorded.
(d) Issuance of Certificate of Occupancy. A Certificate of Occupancy shall not be
issued for a Residential Project subject to this Article unless the approved
Inclusionary Housing Plan has been fully implemented.
Sec. 41 -1906. Standards
(a) Location within Project, relationship to non - Inclusionary Units. All Inclusionary Units
shall be:
(1) Reasonably dispersed throughout the Residential Project;
(2) Proportional, in number of bedrooms, gross floor area of habitable space,
and location, to the market rate units;
(3) Comparable to the market rate units included in the Residential Project in
terms of design, materials, finished quality, and appearance; and
(4) Permitted the same access to project amenities and recreational facilities, as
are market rate units.
(b) Timing of construction. All Inclusionary Units in a Residential Project shall be
constructed concurrent with, or before the construction of the market rate units. If
the City approves a phased project, a proportional share of the required
Inclusionary Units shall be provided within each phase of the Residential Project.
(c) Location outside the proposed original Project. For Projects where the Developer
proposes to either produce new Inclusionary Units or rehabilitate existing off -site
units to meet the inclusionary affordable housing requirements of this ordinance,
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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 10% for very
low income or 15% 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.
(e) Units for sale.
(1) Time limit for inclusionary restrictions. A unit for sale shall be restricted to
the target income level group at the applicable affordable housing cost for a
minimum of fifty -five (55) years.
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(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 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 for fifty -five (55) years.
(2) Certification of renters. The owner of any rental Inclusionary Unit shall
certify, on a form provided by the City, the income of all members of the
household above the age of eighteen (18) at the time of the initial rental and
annually thereafter.
(3) Forfeiture. Any lessor who leases an Inclusionary Unit in violation of this
Article shall be required to forfeit to the City all money so obtained.
Recovered funds shall be deposited into the Inclusionary Housing Fund.
(g) Execution and recording of documents. The Executive Director may require the
execution and recording of whatever documents are required to ensure
enforcement of this Section; including but not limited to promissory notes, deeds of
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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 out of every twelve months.
(2) No owner or lessee of an Inclusionary Unit shall lease or sublease, as
applicable, an Inclusionary Unit without the prior permission of the Executive
Director.
Sec. 41 -1907. Reserved
Sec. 41 -1908. Enforcement
(a) Violation. Any violation of this Article constitutes a misdemeanor.
(b) Forfeiture of funds. Any individual who sells an Inclusionary Unit in violation of this
Article shall be required to forfeit any money in excess of the Affordable Housing
Cost at such time. Any individual who rents an Inclusionary Unit in violation of this
Article shall be required to forfeit all money so obtained. Recovered funds shall be
deposited into the Inclusionary Housing Fund.
(c) Legal actions. The City may institute any appropriate legal actions or proceedings
necessary to ensure compliance with this Article, including actions:
(1) To disapprove, revoke, or suspend any permit, including a Building Permit,
Certificate of Occupancy, or discretionary approval; and
(2) For injunctive relief or damages.
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(d) Recovery of costs. In any action to enforce this Article, or an Inclusionary Housing
Agreement recorded hereunder, the City shall be entitled to recover its reasonable
attorney's fees and costs.
Sec. 41 -1909. Inclusionary Housing Fund
(a) Inclusionary Housing Fund. There is hereby established a separate fund of the
City, to be known as the Inclusionary Housing Fund. All monies collected pursuant
to this Article shall be deposited in the Inclusionary Housing Fund. Additional
monies from other sources may be deposited in the Inclusionary Housing Fund.
The monies deposited in the Inclusionary Housing Fund shall be subject to the
following conditions:
(1) Monies deposited into the Inclusionary Housing Fund must be used to
increase and improve the supply of housing affordable to Moderate, Low,
and Very Low, and Extremely Low Income Households in the City. Monies
may also be used to cover reasonable administrative or related expenses
associated with the administration of this Article.
(2) The fund shall be administered by the Executive Director, or his or her
designee, who may develop procedures 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 City's Housing Element, Consolidated Plan, or
subsequent plan adopted by the City Council to construct, rehabilitate, or
subsidize affordable housing or 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.
Sec. 41 -1910. Administrative
(a) In -Lieu Fee Calculation. The amount per square foot of the inclusionary housing in-
lieu fee shall be subject to City Council review and consideration before the end of
calendar year 2018, but after June 30, 2018. Between July 1, 2018 and December
31, 2018, staff shall report on the effectiveness of this ordinance and provide
options for Council consideration on the components of this ordinance, including,
but not limited to, the monetary amount of inclusionary in -lieu fee per square foot.
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(b) Pipeline 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 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 $15.00 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 3. Santa Ana Municipal Code section 41 -1652 is hereby amended
such that it reads as follows:
Sec. 41 -1652. Applicability.
The change of use of an existing, economically obsolete building into a
new, more productive use such as apartments, condominiums or live /work units
is permitted subject to compliance with the following standards:
a) Eligibility. Projects must meet the following criteria to be an eligible
Adaptive Reuse Project:
1. Project site shall be located in one of the Project Incentive Areas,
as defined in section 41- 1651(e).
2. The building must be an Eligible Building, as defined in section 41-
1651(b).
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b) Development Standards. Adaptive Reuse Projects shall, at a minimum, be
in compliance with the following development standards:
1. The residential units shall be a minimum of 500 square feet in size.
2. The ground floor of a multi -level building with three stories or more
containing street frontage shall be used as commercial /retail space.
3. Common area spaces for the building, such as lobbies and
recreation rooms, when located on the ground floor, may not
exceed 50% of the ground floor square footage.
4. Open space shall be provided at a rate of 10 percent of the building
square footage, and may be public or private and shall be
disbursed throughout the building. At least 25 percent of the open
space shall be in the form of a community /recreation room(s). The
remaining open space may consist of private balconies (50 square
feet minimum), pool and spa areas, and public courtyards. Public
courtyards shall include seating areas, enhanced landscaping,
barbeque areas and other amenities as determined by the Planning
Division.
5. Historically Significant Buildings shall comply with chapter 30 of this
Santa Ana Municipal Code, fagade easements and any other
related historic guidelines, including the Secretary of the Interior
Standards for any necessary exterior modifications.
c) Project Incentives. Adaptive Reuse Projects that comply with the
Development Standards are eligible for the following project incentives:
1. The project can exceed the maximum general plan density for the
site provided the Adaptive Reuse Project is in compliance with the
development standards.
2. Existing building setbacks may remain and shall be considered
legal nonconforming, but no further encroachments shall be
permitted into any nonconforming setback.
3. The height of the structure, if it exceeds the maximum height of the
zoning district, may remain and shall be considered legal
nonconforming, and any rooftop construction shall be included
within the height exemption.
4. A new loading zone shall not be required if the existing building
does not have an existing loading zone.
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5. New parking spaces shall not be required for any converted use
within the building, but any new square footage that includes any
new units shall require additional parking at a minimum rate of 2
spaces per unit.
SECTION 4. Pursuant to the California Environmental Quality Act ("CEQA") and
the State CEQA Guidelines, the adoption of this ordinance is exempt from CEQA review
pursuant to 14 California Code of Regulations section 15061, as there is no potential for
causing a significant impact on the environment due to the adoption of the ordinance.
As a result, Categorical Exemption Environmental Review No. 2015 -77 will be filed for
this project.
SECTION 5. If any section, subsection, phrase, or clause of this ordinance is for
any reason held to be unconstitutional, such decision shall not affect the validity of the
remaining portions of this ordinance. The City Council hereby declares that it would
have passed this ordinance and each section, subsection, phrase or clause thereof
irrespective of the fact that any one or more sections, subsections, phrases, or clauses
be declared invalid or unconstitutional.
ADOPTED this day of
APPROVED AS TO FORM:
Sonia Carvalho, City Attorney
By: Z-
Lisa Storck
Assistant City Attorney
AYES
Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
2015,
Miguel A. Pulido
Mayor
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CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the
attached Ordinance No. NS -XXX to be the original ordinance adopted by the City
Council of the City of Santa Ana on 2015, 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
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