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HomeMy WebLinkAboutCORRESPONDENCE - 75B - ADDITIONAL15d EL CENTRO CULTURAL ' DE MEXICO 313 N. Birch Street Santa Ana, Ca. 92701 August 41h, 2015 Dear City Council, This letter is to communicate el Centro Cultural de Mexico's great concern over the modifications of the Inclusionary Housing Ordinance and the lack of public participation in these changes. El Centro has been working on issues of gentrification and displacement in the city of Santa Ana for about ten years. We work with many families in helping create community spaces for art, culture and community leadership. We have been able to talk to many residents, youth, adults and families. Most recently we organized renters rights training where got to listen to many stories about not only poor housing conditions but the high rate of housing insecurity that exists in Santa Ana. These stories are far too common. Policy in recent decades, whether implemented by the government, the corporate sector or some combination of the two, has contributed to a loss of housing for low income families. What is also a shame are the discourses that both government and the private sector use to defend these policies. Either for the deconcentration of property, investment, revitalization, or even sometimes the same need for affordability, is used to promote development that has lead to the displacement of members of our community. As enormous amounts of investment come into our cities, their interests in maximizing profits undermine our interest in long-term neighborhood stability. We want policies that allow us to strengthen the bonds we build with each other in our communities, and which help us to survive in the face of resource scarcity, economic hardship, environmental degradation and political margin alization. We assert our right to stay in the communities is that we have build and take part in their future, and we refuse to be displaced. To this ends, we call for an end to profit driven development that produces housing our communities cannot afford. The changes in this ordinance represent the lack of the city's commitment to housing for Santa Ana's residents, the failure to include the community in shaping these significant policies. We call for more time and more public participation. Sincerely, Centro Cultural de Mexico Members Mitre -Ramirez, Norma From: Huizar, Maria Sent: Tuesday, August 04, 2015 6:09 PM Cc: Cavazos, David Subject: FW: [Fwd: Comments HOO on item 75 on City Council agenda for 8/4/15] Attachments: santaanaHOO8415.pdf Categories: Correspondence Communication on Agenda Item 75B Housing Opportunity Item -----Original Message ----- From: cesarc@kennedycommission.org [mailto:cesarc@kennedycommission.org] Sent: Tuesday, August 04, 2015 6:07 PM To: Huizar, Maria Cc: !City Council Subject: [Fwd: Comments HOO on item 75 on City Council agenda for 8/4/15] ---------------------------- Original Message ---------------------------- Subject: Comments HOO on item 75 on City Council agenda for 8/4/15 From: cesarc@kennedycommission.org Date: Tue, August 4, 2015 9:03 pm To: Cc: cesarc@kennedycommission.org Maria, Please see the Kennedy Commission's comments on item 75 the Housing Opportunities Ordinance. Cesar Covarrubias The Kennedy Commission August 4, 2015 Honorable Mayor Miguel Pulido Honorable Council Members City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 RE: Proposed Changes to Santa Ana's Housing Opportunities Ordinance Honorable Mayor and Councilmembers, www.keunedyQommission.org 17701 Cowan Ave„ Suite 200 Irvine, CA 92614 949 250 0909 Fie 949 263 0647 The Kennedy Commission (the Conunission) is a broad based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $20,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering with jurisdictions in Orange County to create effective housing policies that has led to the new construction of homes affordable to lower income working families. The need to increase quality homes that are affordable to lower income working households remains a high priority in the City of Santa Ana. The average asking rents is the City is $1,687, which is a 9 percent increase from the year before and rents are expected to continue to increase, l With lower wages that are not keeping up with rising rents, many renting families continue to struggle financially to live and work in this City. Approximately 60 percent of renter households are lower income' and 84 percent of residents field moderate- and low-income occupations that paid less than $53,500 per year.3 In order for rent to be affordable, only 30 percent of an individual's income should be used towards housing costs. Unfortunately, 57 percent of renters overpaid or spent more than 30 percent of their income towards housing costs.' The typical household size in the City is 4.4 persons per unit' and 43 percent of the City's renter households live in overcrowded conditions, 6 These renters typically double or triple up with other family households to make rent affordable. The current inventory of residential projects under construction or in the pipeline, shows that the around 3,000 units are currently planned in the City of Santa Ana. These developments will provide housing opportunities (in its majority) to moderate and above moderate income households. Considering the housing needs and development opportunities in the City we believe that in planning for development the City needs to consider how these housing opportunity sites will help it meet its housing goals and the housing needs of residents in Santa Ana. Peeling the Pinch? Local Rent Prices Hit a Record High, Qrangc County Register, humary 16,2015. ' City of Santa Ana General Plan FCousing Elemenk2014-2021, p. 14 , January2014. s City of Santa Ana General Plan Housing Element 2014-202t, p. 12 , Junnary 2014. 'City of Santa Ana General Plan Housing $Iement2614-2021, p. 20, January 2014. s City of Santa Ana General Plan Housing Element 2014-2021, p. 11 ; January 2014. ° City of Santa Ana General Plan Housing Element 2014-2021, p.20 , January 2014. The Commission would like to commend the City for its leadership and commitment in encouraging and facilitating the development of homes affordable to lower income families through the Housing Opportunities Ordinance. With cuts in state redevelopment and federal funding the ordinance is a vital to the City in implementing its affordable housing goals. The Ordinance is an integral tool for the City to effectively develop homes that are affordable to lower income families in the City. With limited resources, potential changes to the Housing Opportunities Ordinance may limit and negatively impact future affordable home developments in the City. As the City moves forward in proposing changes to the Housing Opportunities Ordinance, the Commission urges the City to ensure changes would effectively strengthen the integrity and intent of the Ordinance to produce homes that would be affordable to lower income working families in the City. We believe a more comprehensive approach should be taken to understand the City's planning, affordable housing needs and resources for affordable housing. The Housing Opportunities Ordinance was established in 2011 and was created to: "-encourage the development and availability of affordable housing by requiring the inclusion of affordable housing units within developments that involve an increase in the density otherwise available under applicable zoning and development standards, a change in land use designation from a zoning regulation that does not permit residential uses to one that does permit residential uses; or the conversion of rental units to condominium ownership.7 if the 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 to Moderate Income Households, or lower.' If the Residential Project consists of rental units, then a minimum of 15 -percent of the units shall be rented to low or Very Low Income Households.' We want to provide the following recommendations: The Housing Opportunities Ordinance needs to apply to all developments that are proposing residential development. No exemption should be carved out. Residential development must include 15% of housing units to be affordable to low income residents. This will allow the City to capture the community benefit of affordable housing for its residents in the zoning and housing sites opportunities it has created for development. Adaptive reuse and Apartment to condominium conversions should not be exempted. 2. Developers should be given the opportunity to develop the affordable housing units; - On-site a part of the project (at their cost) - Off —site (at their cost) - An in lieu fee may be considered as an option i£tlne fee is commensurate with the cost to develop the affordable housing units. 'Santa Ann Housing Opportunities Ordinance, p. 1,201L s Santa Ana Housing Opportunities Ordinance, p. 3, 2011. ' Santa Ana Housing Opportunities Ordinance, p. 3, 2011. Projects Approved or in the pipeline should build affordable housing units on site or pay an in -lieu fee commensurate with the actual costs of building affordable homes. The proposed fee of $5 a square foot is only a fraction of the true cost of development of affordable housing and will impose a significant burden on the City to find additional resources to develop the housing. The Commission has done some preliminary calculations on the $5 per square foot calculation proposed vs. a fee that gets closer to the gap financing and actual costs. Under the proposal City stands to create no new affordable housing units on pipeline projects (around 2,700 units) propose on housing opportunity sites. In addition, under proposed fee calculation of $5 square foot the City would fail to capture the appropriate funding to build the affordable housing units elsewhere. In fact, just on the pipeline projects.the city would lose over $20 million dollars in revenue from this inaccurate in - lieu fee. 4. Increase the proposed in -lieu fee from $5 per square foot to be commensurate with the actual costs of building affordable homes. The Commission would recommend that the in lieu fee be reflective of the true cost of developing the affordable housing units of site or allowing the City to leverage additional housing tax credits or housing finance to create the units. A Commission's experience is that the true in -lieu fee ranges from the low end of $15,000 (as gap financing) to $50,000 per unit (actual cost). Calculation should be on a per unit basis to simplify calculation. One fee should apply to all developments (render 20 units or more). 5, Restrict Moderate Affordable Housing for Sale to 80% Area Median Income (AMI) (Family income around $75,000). In Santa Ana Moderate Income in for sale unit range from 80% AMI to 120% AMI. A for sale home at 120% AMI is virtually at market value for a home in Santa Ana. 6. Evaluation of the HOO should be on an annual basis. 7. Apply SS 1818 incentives only to development that build affordable units on-site. The Commission looks forward to working with the City to implement an effective Housing Opportunities Ordinance that will provide affordable home opportunities for all working families in the City. Sincerely, Cesar Covarrubias Executive Director