AFFORDABLE HOUSING. City of Santa Ana

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1 AFFORDABLE HOUSING City of Santa Ana

2 AFFORDABLE HOUSING TOPICS TO BE DISCUSSED What is Affordable Housing? Who needs it? Where is it and what s it really like? How do we get there?

3 WHAT IS AFFORDABLE HOUSING? More than just inexpensive housing Housing is affordable if a household can live in it without sacrificing food, health care, and other essentials If a household is paying more than 30% of their income on housing, then housing is considered unaffordable Affordable housing developments in the City are considered Affordable Housing when Affordability Covenants are recorded against the property to restrict housing costs not to exceed 30% of the Household Income

4 REGIONAL HOUSING NEEDS ASSESSMENT (RHNA) City of Santa Ana Regional Housing Needs Allocation Very Low(0-50% AMI) Low (51-80% AMI) Total RHNA RHNA Progress* Total Remaining RHNA New Affordable Housing Projects under Development Depot at Santiago The Orchard 62 9 Santa Ana Arts Collective First Street Apartments Santa Ana Veterans Village 75 0 Aqua Housing Tiny Tim Total Affordable Units Under Development * As of December 31, 2017

5 WHO NEEDS AFFORDABLE HOUSING? 56% of Santa Ana residents are Renters 64% of Santa Ana Renters spend more than 30% of their income on rent 31% of Santa Ana Renters spend more than 50% of their income on rent Since 2010, median rents have increased by 10% while median incomes have decreased by 1.5% 9.99% 3.09% 4.22% 5.12% 6.17% 6.42% 0.00% -0.87% -0.89% -2.81% -4.30% -4.78% -1.49% Median Household Income Median Rent Source: American Community Survey year Estimates

6 SANTA ANA MEDIAN HOUSEHOLD INCOME 25.00% 20.00% 21.00% 15.00% 10.00% 10.60% 11.70% 15.10% 12.60% 13.00% 5.00% 4.00% 4.10% 4.70% 3.10% 0.00% Less than $10,000 $10,000 to $14,999 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 or more Santa Ana Median Household Income $54,062 Orange County Median Household Income $88,000 Source: American Community Survey year Estimates

7 AFFORDABLE HOUSING INCOME LIMITS Income Limits are set annually by the State (HCD) and Federal (HUD) Governments based on the Area Median Income (AMI) for the County of Orange. Median Household Income for Orange County: $88,000 Median Household Income for Santa Ana: $54,062 Range 4 Person Household Rent Extremely Low Income (30% AMI) Very Low Income (50% AMI) Low Income (80% AMI) Moderate Income (120% AMI) $21,950 - $41,350 $31,300 $462 - $907 $36,550 - $68,850 $52,150 $770 - $1,512 $58,450 - $110,200 $83,450 $924 1,815 $73,900 - $139,400 $105,600 $1,694 - $3,024

8 WHERE IS AFFORDABLE HOUSING LOCATED IN SANTA ANA? Interactive Map Click to View

9 WHAT DOES AFFORDABLE HOUSING LOOK LIKE IN SANTA ANA? Santa Ana Station District

10 WHAT DOES AFFORDABLE HOUSING LOOK LIKE IN SANTA ANA? The Orchard

11 WHAT DOES AFFORDABLE HOUSING LOOK LIKE IN SANTA ANA? Harborside & Santa Ana Collection (15% Affordable)

12 HOW IS AFFORDABLE HOUSING CREATED? For-profit and non-profit developers provide Affordable Housing For-profit developers may also provide income-restricted units as part of their market-rate projects as required by the City s Housing Opportunity Ordinance

13 HOW IS AFFORDABLE HOUSING CREATED? Involve combinations of public and private financing in exchange for income restricted units California Tax Credit Allocation Committee (TCAC) provides Tax Credit Financing 4% Non-Competitive Tax Exempt Bonds 9% Competitive Tax Credits Applications Accepted 9x per year Requires Zoning Verification Project does not have to be fully financed Applications Accepted 2x per year (February/July) (HIGHLY COMPETITIVE) Project must be entitled (including CEQA) Project must be fully financed

14 ANDALUCIA Bedroom Count Very Low Income 50% AMI Low Income 60% AMI Moderate Income 110% AMI 3 Bedroom Maximum Rent $1,356 $1,627 $2,517

15 THE DEPOT AT SANTIAGO Bedroom Count SF Extremely Low Income 30% AMI Very Low Income 40% AMI Very Low Income 50% AMI Low Income 60% AMI 1 Bedroom Bedroom 1, Bedroom 1, Totals: Total

16 AFFORDABILITY COVENANTS AND MONITORING Government Agencies (Federal, State, City) provide funding to finance Affordable housing developments in exchange for Affordable units Typically, Affordability Covenants are recorded for 55 years 100% of the units are monitored every year 20% of the units in each development are inspected every 1-3 years

17 HOUSING CHOICE VOUCHER PROGRAM Tenant-Based Assistance (Section 8) Families with a Voucher can choose and lease safe, healthy, and affordable rental housing in the private market (As long as the landlord is willing to accept their Voucher) The Housing Authority will execute a Contract with that landlord to assist that family in their unit The family is responsible for up to 30% of their income (minimum $50) toward their rent and the rest is subsidized by the Housing Authority Household income must be 50% AMI (Very Low Income) or below to qualify

18 HOW DO WE GET THERE? Planning and Zoning Law

19 OVERVIEW HOW DO WE GET THERE What we ve learned so far What is Affordable Housing? Why do we need it? Who needs it? Where is it and what s it really like? How do we get there State s Density Bonus Law ( DBAs ) Inclusionary Housing/Housing Opportunity Ordinance ( HOO ) Other relevant laws

20 DENSITY BONUS LAW The State s Density Bonus Law allows developers to build extra units in a residential development In exchange for the extra units, the developer enters into a Density Bonus Agreement (DBA) that locks in those extra units for a minimum period of affordability Minimum 55 years Separate standards for various income levels and housing types (senior, family, very low income, etc.) up to 35% density bonus Agreement is taken to City Council

21 DENSITY BONUS LAW (CONTINUED) As part of a DBA, the developer can seek relief from development standards (setbacks, open space, height, density, etc.) A jurisdiction can offer up to three (3) incentives to a developer (i.e., reduction in required setbacks) A developer can request an unlimited number of concessions (i.e., height, open space requirements, etc.) A jurisdiction can require a study to prove that the concessions will not harm public health or safety

22 HOUSING OPPORTUNITY ORDINANCE (HOO) Santa Ana s HOO provides for: Onsite Affordable housing Payment of in-lieu funds Rehabilitation or construction of offsite Affordable units The HOO applies to: Projects requesting an up-zoning (i.e., change from commercial to residential) Projects in an area where the City up-zoned properties or in overlay zones (Metro East, Harbor Plan, parts of Downtown, etc.) Applicable projects must have five (5) or more units

23 HOUSING OPPORTUNITY ORDINANCE (HOO) Santa Ana s HOO also provides local incentives to help realize Affordable housing Local density bonus up to 35 percent (in addition to State density bonus law) Relief from required parking, setbacks, or height Eligible projects must enter into an Inclusionary Housing Plan (IHP) Provides a double density bonus when including the State s bonus

24 OTHER RELEVANT LAWS Additional State measures to further streamline or facilitate construction of Affordable housing projects AB 744 Projects near public transit 0.3 spaces for certain types of special needs housing 0.5 spaces for other types (family, senior, mixed-income, etc.) SB 35 Streamlined housing construction review Applies to jurisdictions that are not meeting Regional Housing Need Allocation (RHNA) goals Removes CEQA review Removes Planning Commission (or City Council) review

25 DISCUSSION City of Santa Ana Planning Commission Work Study Session March 26, 2018