Agenda packet — Santa Ana City Council, October 17, 2023 (part 4 of 6)

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provisionsofparagraphs (1) through (7) ineverysubcontractorpurchaseorderunlessexemptedbyrules, regulations, orordersof theSecretaryof Laborissuedpursuantto Section204of ExecutiveOrder11246of September24, 1965, sothatsuchprovisionswill be bindinguponeachsubcontractor purchaseorderasthe administeringagencymay directas meansof enforcingsuchprovisions, includingsanctionsfor noncompliance; provided, however, thatin theeventtheConsultantbecomesinvolvedin, oristhreatened with, litigation with a subconsuitantor vendor as a result of such direction by the administering agency, the ConsultantmayrequestthattheUnitedStatesenterintosuchlitigationtoprotecttheinterestsoftheUnited States.

8. Pursuantto CaliforniaLaborCodeSection1735, asaddedby Chapter643Stats. 1939, andasamended, Nodiscriminationshallbemadeintheemploymentofpersonsuponpublicworksbecauseofrace, religiouscreed, color, nationalorigin, ancestry, p y ' 'alhandicaps, mentalcondition, maritalstatus, orsexofsuchpersons, except asprovidedin Section1420, a consultantofpublic worksviolatingthis Sectionissubjectto all thepenalties imposed for a violation of the Ater.

Signed:

Title:

Finn: jA
Date: ____.___,._
city of Santa Ana- RFP 21-t02 _

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APPENDIX --_
ATTACHMENT 3- 4: AGREEMENT STATEMENT

CITY OF SANTA ANA
RI?QUES'T FOR PROPOSALS
FOR

FOUNTAIN MAINTENANCE
RFP NO.: 21- 102
Proposer understands that the PROPOSER will enter into an Agreement similar to that as shown in Attachment 2, in theAppendixof this RFP. If a PROPOSERis unwilling or unableto executeanAgreementwithin thirty 30) daysafterbeing notified of selectionunderthis :RFP, the CITY reservesthe tight to selectthe next most qualifiedPROPOSERor call for new Proposals, whichevertheCITY deemsmostappropriate.

PROPOSERconcursto thestatementsin thestandardagreement, with theexceptionof thefollowing; Firm
S'.: 1G' ` C ItPl+
Signed and Printed Name:

Title
Date
2 rtity- nf-- Anla Ann PPP ?. 9_ 1 r19

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EXHIBIT C

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I ATTACHMENT 3- 6: FEE SCHEDULE I
CITY OF SANTA ANA REQUESTFORPROPOSALSFOR RFP NO.: 21- 102Vountain Location Co - Pr FPer Weeks Per Cost I Sol -
Weektimes Year
y
j
ToFlazaoftho Fountain #1 North of Spate F3uildingy Ot $ 33 52 Woeks Plazaof the Fountain #2 Last of Law Librarypl 0S 3 Times52Weeks jr I r 80 `ls Plaza of the Fountain #3 South of Law Library3 Times 52Weeks p, Jllazy of the SunFountainBeUveeuCrty llal] andMainLibraryb g3 3 1 ones52Weeks fasseerPark FountainCornerof Santa AuaBlvd. and Broadway, 8i 3 [ imes 52 Woeks 2, id StreetMollFotmtainBetweenSycamore St. and BroadwayF e4 e4, = 1 "Fine 35Weeks A, 54 g , o Jan -Aug) 2Times17Weeks
11s06% IransportationCenier
ants
Ana
Regional
CivicCetrterDrive and SantiagoStreet S7 2' fimes SSept- DecL_ 52 Weekss..

Cori""
ii
fication - Icertifythat I have read, understandand agreeto the termsandconditionsof thisRequest forProposals. I haveexaminedtheScopeol' Serrvicesand antamiliar with the scopeof worklocations. I am familiar withall the existingconditionsandlimitationthat mayimpact workrequests. I understandand agreetha I am responsibleforreportingany errors, omissionsm discrepanciesto theCity forclarificationpriorto the submissionofmyproposal. ProposalItemPrice - Fee mustbe inclusiveof all costs, includingbutnot limited to, directslid indirectcosts for labor, overhead, incidentalsupplies, travel, mileage, and fuel The proposerwarrantsthatthe prices, termsandconditionedquotedwill be valid for a periodof 120days fromthedatethe proposalis due, in orderto alltime to award an agreement. Pricing informationfor
each site andeachserviceshooldbe as accurateas possible. Based onfunding availit recact the frequencyfromthescope of workwithoutaffectingpricingfor other sites and/or service. arc—..__.._._....... atmu5 _.---. edNamentAu nod Agcrntfill• 7+` 3-.[---._._......._._..------ Sig!
ne • fAllon . W Agri Dull-- LegblNone of
S' t 11G
t A,N PhoneandPax Nunrhonnus ow Address
Pe a IDnumber(
itappilcable) ContractorLicense Number( ifapplicable) hiiity, the City may removea site or Y-11- 73—
2i~1112

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FIRST AMENDMENTTO }-OUNTAIN NIAIN'I'ENANCE AND REPAIR

SERVICBS AGREEMENT WIT'H SEITVICE FIRST FOUNTAINS
THIS FIRST AMENDMENT TO AGR[1[1MI]NT' is entered into this 17'hclay of October 2O23,by and between Service First Fountains ("Consultant"), ancl thc City ol'Santa Alra, a charter city and municipal corporation duly organized and existing underr thc Cblrstitr.rtion altcl laws of the Statc of California ("City"). .rjurCILALs.

A. On November 16, 2021, the C-'ity entcred into Agreement # A-2021-218 with Clonsultant to provide fountain mainteuauce and repair services and related matters.

B. In accordance with the ternrs ancl conclitions o1'the Agreernent, the parties desire to arnend 1he compensation and increase thc term.

THE PARTIES THEREF'ORE AGREItr:

1. Section 2, COMPENSATION, shall be arnenclecl to increase the annual cornpensation by $50,000, including the current year, lirr a new annual arnount not to exceed $166,170 tbr the remaining terrn. This sum is conrplisccl of (l) thc basc amount o1'$13tt,475; and (2) a twenty percent (20%) contingency irr the anrount o1'$27,69-5 lbr aclclitional servioes to be exercised at City's sole discretion.

2. Section 3, TERM, shall be atnerrdecl to extencl the tenl of saicl Agreernent lbr an additional tu,o (2) year period unril Decernber 31,2025.

Except as hereinabovc modificd, tltc tcrrns ancl conclitions of saicl Agreement remain unchangcd and in full force and effect.

IN WITNESS WHEREOF, the ltartir-s ltereto lrave executed this liirst Anrendrnent to the Agreement the date and year first above writtcn.
r\-l"l'ES'1': (]I'I'Y OF'SAN] A ANA
.I}..NNIF'HR L. HAI-L
City Clerk

I(RISI'INE RIDGE
Clity Manager
lSi gn ctl u re,s co u ti n u c d r t t r th a./ b I I o win g pa gel I']age I of2
EXHIBIT 2

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API'ROVED AS TO I.-OIIM:

Sonia R. Clarvalho, City Attorney
r- fl#"d,
By: JOSE MONTOYA
Assistant City Attorncy
RECOMMENDED FOR APPROVAL:

Nabil Saba. P.E.

Executive Director ol'
Public Works Agcncy
fli.-[F(K bvc\er?ee""1"7

CONSIJT,TANT
"d*"*-

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Public Works Agency
www.santa-ana.org/public-works
Item # 21
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 17, 2023
TOPIC: Site License and Lease Agreements with Pacific Coast Shuttles, LLC

AGENDA TITLE
Approve an Appropriation Adjustment and Award Site License and Lease Agreements to Pacific Coast Shuttles, LLC, DBA Futura Bus Net, Inc., for Bus Passenger Services at the Santa Ana Regional Transportation Center

RECOMMENDED ACTION

1. Authorize the City Manager to execute a site license agreement with Pacific Coast Shuttles, LLC, DBA Futura Bus Net, Inc. to compensate the City $2,500 per month for the rental of one bus bay for bus passenger services at the Santa Ana Regional Transportation Center, for a six-month term beginning November 1, 2023, and ending April 30, 2024, with the option of four consecutive, one-year renewal periods exercisable by the City Manager, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. 2023-XXX).

2. Authorize the City Manager to execute a site lease agreement with Pacific Coast Shuttles, LLC, DBA Futura Bus Net, Inc. to compensate the City $1,500 per month for ticket counter office space for bus passenger services at the Santa Ana Regional Transportation Center, for a six-month term beginning November 1, 2023, and ending April 30, 2024, with the option of four consecutive, one-year renewal periods exercisable by the City Manager, subject to non-substantive changes approved by the City Manager and City Attorney (Agreement No. 2023-XXX).

3. Approve an appropriation adjustment recognizing Fiscal Year 2023-24 lease income in the amount of $24,000 into the Public Works Agency – Santa Ana Regional Transportation Center Operations, Rental Pacific Coast Shuttle revenue account and appropriating the same amount to the Public Works Agency- Santa Ana Regional Transportation Center Operations, Contract Services-Professional expenditure account. (Requires five affirmative votes)
GOVERNMENT CODE §84308 APPLIES:Yes

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Site License and Lease Agreements with Pacific Coast Shuttles, LLC October 17, 2023

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DISCUSSION
The Santa Ana Regional Transportation Center (SARTC) is a regional transportation hub that brings together Amtrak, Metrolink, Orange County Transportation Authority (OCTA), and interstate bus services. It is open to the public seven days a week from 5:00 a.m. to midnight. The facility contains approximately 35,000 square feet of total rental space, including 10 bus bays, of which five are available, four are licensed to OCTA, and one is licensed to Greyhound Lines, Inc.

Pacific Coast Shuttles, LLC, has approached the City interested in licensing a bus bay and leasing ticket counter office space to provide interstate bus services (Exhibit 1).

Currently, Greyhound is the only interstate bus service provider servicing SARTC.

Earlier this year Greyhound transitioned to only online ticketing sales and elected to terminate the lease for their ticket counter at SARTC. Pacific Coast Shuttles would be providing a needed service at SARTC by having a staffed ticket counter office.

Staff recommends entering into a lease and license agreement with Pacific Coast Shuttles, LLC, to license one bus bay and lease ticket counter office space for a six- month period, with four one-year renewal options (Exhibit 2).

FISCAL IMPACT
With the approval of the requested appropriation adjustment, lease income of $4,000 per month for a total lease income of $24,000 for Fiscal Year 2023-24, will be recognized into the Public Works Agency-SARTC Operations, Rental-Pacific Coast Shuttles revenue account (No. 06717002-53829) and appropriated into the Public Works Agency-SARTC Operations, Contract Services-Professional expenditure account (No. 06717650-62300) for expenditure in Fiscal Year 2023-24.

Fiscal Year
Accounting
Unit-Account
No.

Fund
Description
Accounting Unit-
Account No.

Description
Amount

APPROPRIATION ADJUSTMENT
FY 23-24 06717650-
62300
Regional
Transportation
Center

PWA-SARTC
Operations – Contract
Services-Professional
$24,000
TOTAL $24,000

EXHIBIT(S)

1. Site License Agreement – Pacific Coast Shuttles, LLC.

2. Site Lease Agreement – Pacific Coast Shuttles, LLC.

Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Steven A. Mendoza, Assistant City Manager

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LICENSE AGREEMENT BY AND BETWEEN THE CITY OF SANTA ANA

PACIFIC COAST SHUTTLES, LLC DBA FUTURA BUS NET FOR USE OF

THE SANTA ANA REGIONAL TRANSPORTATION CENTER FACILITIES This LICENSE AGREEMENT ("Agreement") by and between the City of Santa Ana, a municipal corporation of the State of California ("City") and Pacific Coast Shuttles, LLC, a California limited liability company dba Futura Bus Net, Inc., a California Corporation (Referred to as "Licensee") is dated as of October 17, 2023 ("Effective Date"). Licensee and City are sometimes individually referred to as "Party" and collectively as "Parties."

RECITALS
A. Licensee is a provider of interstate bus transportation services throughout the Western United States as well as international travel to various destinations throughout Mexico.

B. Licensee previously submitted a proposal to the City's Request for Proposal No. 20-032 ("Proposal"). City will incorporate the information from this Proposal for this License Agreement. The terms and conditions of this License Agreement shall supersede any costs, details, or other information in the attached exhibits and Proposal which may conflict with this License Agreement.

C. Licensee desires the use of and access to the Santa Ana Regional Transportation Center Facilities ("SAR TC" or "Facilities"), located at 1000 East Santa Ana Boulevard in the City of Santa Ana, for a bus stop for the purpose of drop off and pick up of its Invitees (defined below) that utilize Licensee's bus services ("Transit Services"). City desires to allow Licensee the use of and access to the Facilities for a bus stop for the purpose of drop off and pick up of its Invitees and allowing its Invitees to utilize the Transit Services.

AGREEMENTS
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants hereinafter contained and for good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows:

1. TERMS
I.I Facilities Subject to License. City owns the real property commonly known as the Santa Ana Regional Transportation Center (SAR TC). Subject to the terms and conditions of this Agreement, City hereby agrees to allow Licensee the non-exclusive use of and access to one(!) bus bay at the Facilities as a bus stop for the purpose of drop off and pick up of its Invitees ( defined below). - THE BUS BAY SUBJECT TO THIS LICENSE IS BUS BAY #8 ("License Area"). See Exhibit A for description of License Area. The parties understand that the City may unilaterally reassign the License for Bus Bay #8 to another bus bay in the future upon written notice by the City and that all terms and conditions of this license will likewise apply to any replacement bus bays.

1.2 Term, Grant of License, Terms of License, Term. City hereby grants to Licensee a non- exclusive license ("License"), during the term of this Agreement, for vehicular and pedestrian ingress to and egress from the Facilities and vehicular and pedestrian use of the Facilities for its regularly scheduled passenger service. Licensee shall offer patrons the ability to pay in cash or by credit card. THIS

AGREEMENT IS INTENDED AND SHALL BE CONSTRUED ONLY AS A REVOCABLE LICENSE

TO USE THE LICENSE AREA AND NOT AS A LEASE OR GRANT OF ANY POSSESSORY OR EXHIBIT 1

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EXHIBIT 2

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Finance and Management Services
https://www.santa-ana.org/finance
Item # 22
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 17, 2023
TOPIC: Amendment to the Current Fiscal Year 2023-2024 Annual Budget to Add Full- Time Positions

AGENDA TITLE
Adopt a Resolution to Add Positions in the City Attorney’s Office and the Public Works Agency

RECOMMENDED ACTION
Adopt a resolution that amends the Fiscal Year 2023-24 Annual Budget to add one (1) position in the City Attorney’s Office and two (2) positions in the Public Works Agency, which increases the total authorized headcount from 1,395 to 1,398.

RESOLUTION NO. 2023-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND THE CURRENT FISCAL YEAR 2023-2024 ANNUAL BUDGET TO ADD FULL-TIME POSITIONS IN THE CITY ATTORNEY’S

OFFICE AND PUBLIC WORKS AGENCY
GOVERNMENT CODE §84308 APPLIES:No

DISCUSSION
City Attorney’s Office- Management Analyst- Police Oversight Commission (Excepted) (UC)
The City Attorney is requesting to add a Management Analyst position to support the Police Oversight Commission. The City Manager’s Office worked with staff from the City Attorney’s Office and Human Resources to create this position. This position was fully budgeted in the FY2023-24 annual budget. Since this position was funded late in the budget development process there was not enough time to add the headcount prior to budget adoption. This is merely a housekeeping adjustment to formally add the headcount so the position can be posted for recruitment.

Public Works Agency- Corporate Yard Maintenance Attendant The Executive Director of the Public Works Agency is requesting to add a Corporate Yard Maintenance Attendant position. The City Yard is home to the Medium Volume Transfer and Processing Facility, where all public works operations dispose their waste. This is a permitted area that requires monthly inspections by the Orange County Healthcare

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Amendment to the Current Fiscal Year 2023-2024 Annual Budget to Add Full-Time Positions
October 17, 2023

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Agency on behalf of the State of California to ensure that all waste is properly managed in compliance with permit requirements. Currently, this permit area has only one full-time position funded by the Refuse Enterprise. While there are two part-time positions, there is no part-time coverage on Wednesdays, leaving this area understaffed. A second full- time position is needed to share in the management and maintenance of the permit area.

As with the other full-time position, this position will also provide general support to the other City Yard operations and maintenance. The Refuse Enterprise Budget has the capacity to absorb this additional expense in the current fiscal year.

Public Works Agency- Public Works Projects Manager
The Santa Ana Navigation Center opened in June 2022 as a 24-hour homeless shelter that services men, women, and families with minor aged children. The center offers beds, bathrooms, a commercial kitchen, playroom, and more that requires oversight of preventative and routine maintenance, repair, and other facility enhancement projects. A position is needed to provide the necessary oversight of these Navigation Center tasks and other various special projects. In addition to managing tenant improvements and the build out of the 2 nd floor at the Navigation Center, this position will be responsible for project management of:
•WORK Center tenant improvement allowance
•The Community Development Agency’s office space improvements included in the 2023-24 budget
•Improvements required at the State Building
•Physical studies related to parking garages and facilities throughout the City The Community Development Agency will fund 80% of this position with grant funds and Public Works will fund the remaining 20% through the General Fund. For FY2023-24, this position will be absorbed within the existing budget due to salary and other savings.

FY2024-25 estimated fiscal impact is $29,832.

FISCAL IMPACT
There is no current year fiscal impact since all positions will be absorbed within each respective department’s existing budget due to vacancies and other cost savings.

Future annual fiscal impact is as follows:

Fiscal
Year
Accounting Unit-
Account #
Fund
Description
Accounting Unit,
Account Description
Amount
General Fund:

FY24-25 01117651-61XXX General Fund Parks Maintenance
Service Enhancement
Salaries, Regular
$29,832

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Amendment to the Current Fiscal Year 2023-2024 Annual Budget to Add Full-Time Positions
October 17, 2023

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All Other Funds:

FY24-25 06917640-61XXX Refuse
Enterprise
Refuse Collection
Service, Salaries Regular
$82,680
FY24-25 12218716-61XXX HHAP-2 Grant HHAP-2, Salaries,
Regular
$119,328

EXHIBIT(S)

1. Budget Resolution 2023-XXX
Submitted By: Kathryn Downs, FMSA Executive Director
Approved By: Steven A. Mendoza, Assistant City Manager

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Resolution 2023-XXX

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RESOLUTION NO. 2023-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA TO AMEND THE CURRENT FISCAL YEAR 2023-
2024 ANNUAL BUDGET TO ADD FULL-TIME POSITIONS IN
THE CITY ATTORNEY’S OFFICE AND PUBLIC WORKS
AGENCY

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1: The City Council hereby finds, determines, and declares as follows:

A. On June 20, 2023, the City Council passed and adopted Ordinance No. NS- 3043, establishing the City’s Budget for Fiscal Year 2023-2024 and authorizing position allocations for Fiscal Year 2023-2024. The Ordinance also sets forth the requirement that alterations in the allocation of authorized positions be reviewed and approved by the City Council.

B. On September 19, 2023, the City Council approved an appropriation adjustment to carryover unspent amounts from Fiscal Year 2022-23 to Fiscal Year 2023-24.

C. The City Attorney requests to amend the Fiscal Year 2023-2024 budget to add the one (1) full-time Management Analyst-Police Oversight Commission position.

D. The Executive Director of the Public Works Agency requests to amend the Fiscal Year 2023-2024 budget to add one (1) Public Works Projects Manager and one (1) Corporate Yard Maintenance Attendant.

E. It is now desired to amend the Fiscal Year 2023-2024 budget, as amended in order to effect this change, as shown below.

Section 2: The City’s Annual budget for Fiscal Year 2023-2024, as amended, is hereby further amended to add the following position in the City Attorney’s Office, at the monthly six-step range as indicated:
6-Step Salary Rate Range Effective October 17, 2023
Classification Title
Number of
Positions Added SSR
Monthly Salary
Minimum-Maximum
Management Analyst-
Police Oversight
Commission
1 668 $6,936 - $8,854

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Resolution 2023-XXX

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Section 4: The City’s Annual budget for Fiscal Year 2023-2024, as amended, is hereby further amended to add the following positions in the Public Works Agency, at the monthly seven-step range as indicated:
7-Step Salary Rate Range Effective October 17, 2023
Classification Title
Number of
Positions Added SSR
Monthly Salary
Minimum-Maximum
Corporate Yard
Maintenance Attendant 1 588 $3,786-$5,078
Public Works Projects
Manager 1 747 $8,229-$11,039
Section 3: All classification salary rate ranges are set forth in the City's "Salary Schedule" as periodically updated.

Section 4: That except as amended by this resolution, all other provisions of the Annual Budget for the Fiscal Year 2023-2024, as amended, shall remain in full force and effect.

Section 5: This Resolution is operative from and after the date upon which it is adopted.

ADOPTED this 17th day of October 2023.

___________________________
Valerie Amezcua
Mayor
APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney
By: __________________
Laura A. Rossini
Chief Assistant City Attorney

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Resolution 2023-XXX

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AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers

CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2023- XXX to be the original Resolution adopted by the City Council of the City of Santa Ana on October 17, 2023.

Date: ___________________ ____________________________ Clerk of the Council
City of Santa Ana

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Planning and Building Agency
www.santa-ana.org/planning-and-building
Item # 23
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 17, 2023
TOPIC: Density Bonus Agreement No. 2023-01: 4th and Grand (1212 E. Fourth Street)

AGENDA TITLE
Density Bonus Agreement No. 2023-01 to facilitate the construction of a rental residential development consisting of fifteen apartment units, with one unit proposed as affordable to very low-income households.

RECOMMENDED ACTION

1. Adopt a resolution approving Density Bonus Agreement No. 2023-01 as conditioned.

RESOLUTION NO. 2023-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF SANTA ANA APPROVING THE DENSITY BONUS AGREEMENT NO. 2023- 01 AS CONDITIONED FOR A NEW RENTAL RESIDENTIAL DEVELOPMENT WITH FIFTEEN UNITS FOR THE PROPERTY LOCATED AT 1212 E. FOURTH STREET (APN: 398-385-02)

2. Authorize the City Manager to execute a Density Bonus Agreement with Unison Real Estate Group, LLC, for a 55-year term, for a rental residential development consisting of fifteen apartment units, with one unit proposed as affordable to very low-income households, at 1212 E. Fourth Street, subject to non-substantive changes approved by the City Manager and City Attorney.

GOVERNMENT CODE §84308 APPLIES:Yes

EXECUTIVE SUMMARY
Oscar Uranga (applicant), on behalf of Unison Real Estate Group, LLC (property owner), is requesting approval of density bonus agreement (DBA) No. 2023-01 to allow the construction of a rental residential development consisting of fifteen apartment units, with one unit proposed as affordable to very-low income households earning less than 50- percent of the area median income (AMI), on a vacant site located at 1212 E. Fourth Street. As proposed, the project will utilize waivers from development standards and/or development concessions through the density bonus agreement pursuant to California Government Code sections 65915 through 65918 and Santa Ana Municipal Code (SAMC) Section 41-1600 through 41-1607. Moreover, the project requires approval by the Planning

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Density Bonus Agreement for 1212 E. Fourth Street
October 17, 2023

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Commission and City Council for a density bonus to allow up to 52.26 dwelling units per acre (du/ac). The request satisfies the purpose and intent of the Transit Zoning Code (TZC) to promote a pedestrian-oriented environment with a mix of land uses and to provide additional affordable housing stock to an underserved segment of the region’s population. As a result, staff recommends approval of the DBA.

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Density Bonus Agreement for 1212 E. Fourth Street
October 17, 2023

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Planning Commission Action
On August 28, 2023, the Planning Commission held a public hearing for the project and voted (5-2-0) to recommend that the City Council approve Density Bonus Agreement No. 2023-01 with conditions. Following this vote, the item requires City Council approval of the density bonus agreement.

DISCUSSION
Table 1: Project and Location Information
Project Description
The project includes the construction of a new four-story residential building with flats/apartments consisting of fifteen apartment units, 591 square feet of open space, seventeen parking spaces, and onsite bicycle storage. The residential development will include six studio units, five one-bedroom plus office units, one one-bedroom unit, and three two-bedroom units. Each of the fifteen units will contain full kitchens, bedrooms, bathrooms, and open/common (living) areas, and nine would include private decks. Of the total units in the development, one unit is proposed to be affordable to households earning less than 50-percent of the area median income (AMI), which is currently set at $71,750, adjusted for a four-person household size, as published by California Department of Housing and Community Development (HCD).

The project features a contemporary architectural style similar to many multiple-family or mixed-use residential communities under construction in Santa Ana and the region.

The overall design, massing, features, and materials of the new construction will be compatible with, but differentiated from, the existing neighborhood. The contemporary architectural style would include cement board shiplap siding, brick veneer, stucco finishes, vinyl frame windows, metal railings for proposed decks, metal awnings, and high quality architectural detailing. The project would also incorporate a series of art murals Item Information
Project Address and Council Ward 1212 E. Fourth Street – Ward 6 Nearest Intersection East Fourth Street and North Grand Avenue General Plan Designation Urban Neighborhood-Medium (UN-40) Zoning Designation Corridor (CDR) district within the Transit Zoning Code (SD- 84)
North Commercial
East Vacant
South Single-family residential
Surrounding Land Uses
West Commercial
Property Size 0.287-acres (12,500 square feet)
Existing Site Development The site is currently vacant and unimproved.

Use Permissions Multi-Family Residential (permitted under Corridor district within the Transit Zoning Code)
Uses Article XVI.I (Density Bonus); CDR,
Table 2A – Use StandardsZoning Code Sections Affected Development Standards
CDR, Section 41-2013; Section 41-2020;
Section 41-2024

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along the east and west elevations. Moreover, the structure is designed to fully screen all mechanical equipment within the structure and parapet walls. Overall, the project will include a design and solid construction materials that will ensure that the project ages well for the duration of the building’s lifetime.

Density Bonus Agreement
The California Density Bonus (Government Code § 65915 et seq.) law allows developers proposing five or more residential units to seek increases in base density for providing on- site housing units in exchange for providing affordable units on site. To help incentivize constructing on-site affordable units, the law allows developers to seek a density bonus that allows a project to exceed local density restrictions, as specified by state law, and up to three incentives/concessions and an unlimited number of waivers that facilitate production of units, which are essentially variances from development standards that would help the project be built without significant burden and without detriment to public health. The first version of the Density Bonus Law was adopted in 1979 and has since been amended at various times. In early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to “justify” the density bonus and requested incentives/waivers and places the onus on local jurisdictions to prove that the incentives/concessions or waivers are not financially warranted.

Pursuant to the California Density Bonus law, a project’s affordability level is determined by dividing the number of proposed affordable units by the allowable “base” density (i.e., 40 du/ac). Moreover, the State density bonus law states that units added by a density bonus are excluded from the calculations. As outlined by Table 2 below, the base density for the 0.287-acre site at 40 du/ac is 12 units. Of the total units in the development, one units is proposed to be affordable. Therefore, the project would provide eight percent (8%) of the base units for very low income households. As such, State density bonus law allows the developer to request a maximum density bonus of 27.5 percent. This would allow a project with a total of 16 units, but the applicant is proposing to develop only fifteen units on the site.

Due to the project’s eight-percent affordability rate, under Government Code section 65915, the developer can seek one density bonus concession and unlimited waivers.

Table 2: Density Bonus Calculation
Affordable Unit – 8% (1 unit)* Density Bonus Calculation Units Allowed Base Density - Flex Block Housing type (most
“intense” type allowed in CDR) 0.287 acres x 40 du/ac 12 Units**

27.5-Percent State Density Bonus (12 units x 0.275) +4 Units** Total Potential Units 16 Units
Proposed Units 15 Units
*Affordable unit percentage is calculated excluding units added by a density bonus. **AB 2501 states that any density calculations resulting units shall be rounded up to the next whole number. Applies to: Number of affordable units required to be eligible for the density bonus; Base density (i.e. the number of affordable units in the base project); and Eligible bonus units.

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The purpose of the State’s Density Bonus Law is to encourage the development and availability of affordable housing by requiring the inclusion of affordable housing units within new developments. Pursuant to California Government Code sections 65915 (d)(1) and 65915 (e)(1), a local jurisdiction is limited in its ability to deny requested concessions and waivers and is preempted from denying the increased density required by the Density Bonus Law.

Pursuant to Government Code § 65915 (d)(1), a requested concession or incentive shall be granted unless the City makes written findings, based on substantial evidence of any of the following: (1) the concession or incentive does not result in identifiable and actual cost reductions to provide the proposed affordable housing, (2) the concession or incentive would have a specific, adverse impact on public health and safety, or on any real property listed on the California Register of Historical Resources, and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the project unaffordable to low-income and moderate-income households, or (3) the concession or incentive would be contrary to state or federal law.

The Density Bonus Law also constrains the ability to deny requested waivers. Subject to exceptions for projects that receive a waiver from controls on maximum density, Government Code § 65915 (e)(1) provides that the City cannot apply any development standard that would physically preclude the construction of a development entitled to a density bonus at the increased density or with the concessions or incentives, unless the City makes findings that the waiver would have a specific, adverse impact on public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact.

Although the City has analyzed the project and has identified several areas of concern, the conditions of approval proposed for the project are intended to address any of the project’s potential impacts. Table 3 outlines the incentives/concessions and waivers requested by the applicant.

Table 3: Requested Incentives/Concessions
TZC Standard Requirement Provided
Mixed-Use
Requirement
•Multi-family dwellings permitted
only on second or upper floors, or
behind retail or service ground
floor use.

TZC, Table 2A. Use Standards
•No ground floor retail or service
uses provided for this project.
•Multi-family dwelling proposed on
the ground floor, street facing (not
behind retail or service ground
floor use) – Requires
Concession (1 of 1), Cal. Gov’t
Code Sec. 65915 (d)(1)
Maximum Height
•Maximum height in Corridor
(CDR) land use district is three
stories
Section 41-2013 - Table CDR-1
The project proposes a building height
of four stories (58 feet and 9 inches) –
Requires Waiver, Cal. Gov’t Code
Sec. 65915 (e)(1)

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TZC Standard Requirement Provided
Building Size and
Massing
Standards –
Maximum Ratio
for each Flex
Block story
The second through fourth floor can
only be 85-percent of the ground floor
volume/gross floor area (cannot
exceed 3,309 square feet).

Section 41-2022 (i)(5) - Table BT-4
The second through fourth floor
exceed the allowable ratio and are

97.9-percent of the ground floor’s
volume (proposed 3,811 square feet).
– Requires Waiver, Cal. Gov’t Code
Sec. 65915 (e)(1)
Open Space
Standards
•Common open space to be
designed as a courtyard, or in the
front as a forecourt –
•required to be 15-percent of the lot
(1,875 square feet required).
•Private open space required for
each residential unit, not less than
50 square feet with a minimum of
6 feet in each direction (700
square feet of private open space
required).

Gov’t Code Sec. 65915 (e)(1)
Landscaping
Standards
•All setbacks, yards, and shared
common open spaces are
required to be landscaped.
•A landscape buffer of not less
than five feet required to be
provided to separate parking lot
from an adjacent property
•Surface parking lots required to be
landscaped per City’s commercial
area standards, which require full-
size landscape planters for every
ten parking spaces.

Section 41-2020 (6)
•A landscape buffer of 2 feet is
proposed along the western
property lines, 3 feet less than
required
•Partial and diamond-shaped tree
planters are provided in the
surface parking lot – Requires
Waiver, Cal. Gov’t Code Sec.
65915 (e)(1)
Onsite Parking
In addition, the site is parked in compliance with California Government Code 65915 (p)(1)(A) and 65915 (p)(1)(B) and provides 17 total surface parking spaces or 1.1 spaces per unit. The California Density Bonus Law allows a parking ratio of one (1) stall for studio or one-bedroom units, and one and one-half (1.5) stalls for two-bedroom units, inclusive of handicapped and guest parking.

Analysis of the Issues
Pursuant to Section 41-1607 of the SAMC, because the applicant requested “deviations” (incentives/concessions and waivers), it was subject to review and approval by the Planning Commission. The Planning Commission approved the application with following findings:

1. The proposed development will materially assist in accomplishing the goal of providing affordable housing opportunities in economically balanced communities throughout the city.

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2. The development will not be inconsistent with the purpose of the underlying zone or applicable designation in the general plan land use element.

3. 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- 1603.

Because the project does not exceed four stories in height, the project does not require a Site Plan Review Application pursuant to Table 2A (Use Standards) as part of the Transit Zoning Code (TZC). Accordingly, the Planning Commission’s review and determination for this request was limited to the provisions of the Density Bonus Agreement application only.

Table 4: Analysis of the Requested Incentives/Concessions (1) and Waivers (4) Standard Analysis
Mixed-Use
Requirement
Table 2A (Use Standards) in the Transit Zoning Code (TZC) states that multi- family dwellings are a permitted use in the Corridor (CDR) district, but only on second or upper floors, or behind retail or service ground floor use.

Pursuant to Government Code Section 65915 (k)(1), a concession may be sought by the applicant not only to modify or eliminate a development standard but also to modify “zoning code requirements.” In this case, the requirement for ground floor commercial is a zoning code requirement. Strict adherence to this requirement would result in a reduction in the number of units that can be provided in the overall project, thus not achieving the full 27.5-percent density bonus to which the applicant is entitled. Moreover, the ground floor commercial requirement is subordinate in function to the primary zoning classification of Multi-Family Dwellings within the CDR district. Lastly, adherence to ground floor commercial requirement would be economically infeasible, as it would require adding and additional story to the building to meet the ground floor commercial requirement and to still provide the number of units that the applicant is entitled to under State law.

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Standard Analysis
Maximum Height The maximum height permitted in the CDR district of the TZC is three stories.

As proposed, the maximum height of the new structure would be four stories (58-feet, nine-inches). However, only the stairwell and elevator penthouse will be at the maximum height, the rest of the four-story structure would be 51-feet, nine-inches in height.

The proposed fourth story is required to accommodate the number of units permissible under the Density Bonus Law. The gross site area and existing site conditions severely restrict the applicant from providing a site plan that could accommodate the proposed number of units with a three story building type. With the current maximum height restriction, the applicant could propose underground parking to take advantage of the limited gross site area.

However, this would result in a project that is financially infeasible. Strict adherence to the maximum height requirement would result in a loss of four residential units, would physically preclude construction of the project, and would preclude the construction of the affordable unit to be dedicated to very- low income occupants. This would also make the project infeasible and would not allow the applicant to achieve the full 27.5-percent density bonus to which the applicant is entitled under State law.

Building Size and
Massing Standards –
Maximum Ratio for
each Flex Block story
Pursuant to Section 41-2022 of the TZC, the residential building is designed as Flex Block Building Type. The building type establishes a maximum ratio for each flex block story/level. Specifically, the second through fourth floor can only be 85-percent of the ground floor volume/gross floor area. As designed, the second through fourth floor cannot exceed 3,309 square feet.

The second through fourth floor of the proposed building exceed the allowable ratio and are 97.9-percent of the ground floor’s volume. The second through fourth floor are proposed to be 3,811 square feet, exceeding the maximum allowable by 502 square feet. The proposed site has a smaller than average lot depth and lot width, compared to most lots in the downtown area. Lots in Downtown area range in lot depth and width but are on average 250 feet by 250 feet. The subject site is approximately 100 feet by 125 feet. Without the increase in the allowable building size and massing standards, the project would need to be redesigned, resulting in several impacts to the feasibility of the site’s development. These impacts would include a loss parking spaces; an incompatible design and unbalanced composition of massing the project site; and a smaller building footprint that would reduce the building’s interior floor area and individual unit sizes and result in a loss of units.

In order to provide the required building size and massing standards, the developer would be required to construct an additional level, resulting in a different type of construction (steel-frame versus wood), or build underground parking, further increasing development costs and making the project infeasible.

Open Space
Standards
Pursuant to Section 41-2022 of the TZC, the residential building is designed as Flex Block Building Type. This building type requires common open space to be designed as a courtyard or in the front as a forecourt, have it open to the sky, and to be equal to 15-percent of the lot. Moreover, private open space is required to be provided for each residential unit, no less than 50 square feet

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Standard Analysis
with a minimum dimension of six feet in each direction. The total common open space required is 1,875 square feet and the total private open space required is 750 square feet.

Providing the required common open space standard would lead to the elimination of three or more units, which would affect the feasibility to construct the project. In order to maintain the current proposed unit count, the developer would be required to construct additional floor levels or required to provide underground parking, which would further increase development costs and make the project financially infeasible. To help alleviate the common open space deficiency, the project proposes an average of 40 square feet of private open space per unit, through use of private balconies/decks.

Landscaping
Standards
Pursuant to Section 41-2020 of the TZC, all setbacks, yards, and shared common open spaces are required to be landscaped. In addition, a landscape buffer of not less than five feet is required to be provided to separate parking lot from an adjacent properties and the surface parking lot is required to be landscaped per City’s commercial area standards.

As designed, the project provides a landscape buffer of two feet proposed along the western property lines, three feet less than required. In addition, the project does not provide the required landscape planters in the surface parking lot. Due to site constraints, smaller than average lot size, and parking and landscaping requirements, the required landscape buffer and landscape planters cannot be accommodated. Maintaining the required landscape standards would result in a site redesign, reducing the number of parking stall, the drive aisle width, the ability of trash trucks to service the site, and ultimately lead to the loss of bedroom units, resulting in the project becoming infeasible.

In order to provide the required landscaping and maintain the current proposed unit count, the developer would be required to construct an additional level, resulting in a different type of construction (steel-frame versus wood), or build underground parking, further increasing development costs.

When analyzed cumulatively, the requested concessions and waivers could be avoided if the project were designed on a different site or using a different site plan. If the project were designed with a multi-level parking and/or subterranean parking structure, or if the applicant used different building materials to construct a taller project, additional area on site would become available to provide the ground floor commercial, minimum required open space, landscaping, and the required building size and massing.

However, these changes would increase development costs, resulting in the housing project becoming financially infeasible due to the significantly increased financial implications of an alternative construction type compared to the relatively smaller scale of

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the project. In addition, these changes would reduce the number of units that could be constructed on the site and therefore eliminate the affordable housing unit that would result from the project.

In addition, the changes would increase development costs and reduce the financial feasibility of redeveloping the site, resulting in the affordable housing project becoming financially infeasible due to the significantly increased financial implications. Lastly, the proposed deviations are necessary to make the project economically feasible for the applicant to utilize a density bonus authorized for the development pursuant to Section 41- 1603 of the SAMC.

Public Notification and Community Outreach
Project notifications were posted, published, and mailed in accordance with City and State regulations. In addition, staff contacted the provided contacts for the Saddleback View Neighborhood Association to ensure they were aware of the project and public hearing. At the time this report was printed, no issues of concern were raised regarding the proposed development.

ENVIRONMENTAL IMPACT
Pursuant to the requirements of the California Environmental Quality Act (CEQA), an Environmental Impact Report (EIR) was prepared and certified in 2010 in order to address the potential environmental impacts associated with the Transit Zoning Code. A mitigation monitoring and reporting program (MMRP), findings of fact, and a statement of overriding consideration were adopted with the 2010 EIR.

As proposed, the development is not anticipated to have additional environmental impacts not addressed in the 2010 EIR. Therefore, no additional environmental review will be required. Based on this analysis, a Notice of Exemption, Environmental Review No. 2022-04 will be filed for this project. However, all applicable mitigation measures in the original EIR and associated MMRP will be enforced.

FISCAL IMPACT
There is no fiscal impact associated with this action.

EXHIBIT(S)

1. Resolution – Density Bonus Agreement

2. Draft Density Bonus Agreement

3. August 28, 2023 - Planning Commission Staff Report and Exhibits Submitted By: Minh Thai, Executive Director of Planning and Building Agency, and Michael L. Garcia, Executive Director of Community Development Agency Approved By: Steven A. Mendoza, Assistant City Manager

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RESOLUTION NO. 2023-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SANTA ANA APPROVING DENSITY BONUS AGREEMENT
NO. 2023 -01 AS CONDI TIONED FOR A NEW REN TAL

RESIDENTIAL DEVELOPM ENT WITH FIFTEEN UNITS
FOR THE PROPERTY LOC ATED AT 1212 E. FOURTH
STREET (APN: 398-385-02)

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS:

Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows:

A. Oscar Uranga A pplicant), on behalf of Unison Real Estate Gr oup, LLC (Property O wner), is requesting approval of density bonus agreement (DBA) No. 2023- 01 to allow the construction of a rental residential development, consisting of fifteen apartment units with one unit proposed as affordable to very-low income households earning less than 50 percent of the area median income (AMI) for the property located at 1212 E.

Fourth Street.

B. The Transit Zoning Code was adopted in 2010 to provide the zoning necessary to support the long -term development of a successful transit program. The regulating plan, which establishes land uses and development standards, allows a variety of housing and commercial projects, including affordable residential communities, live/work units, service and retail, and professional offices.

C. The California Density Bonus law allows developers to seek increases in base density for providing on- site housing units in exchange for providing affordable units on site. To incentivize constructing on-site affordable units, the law allows developers to seek a density bonus that allows a project to exceed local density restrictions, as specified by state law, as well as incentives/concessions or waivers that would help the project be built without significant burden and without detriment to public health.

D. The Applicant’s request has been thoroughly evaluated by the City’s Development Review Committee (DRC) through Development Project No. 2021-33. Through this review, the DRC has considered the subject site, proposed development, and the applicant’s requests for a density bonus, and requested incentives/concessions and waivers pursuant to the State’s Density Bonus Law.

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E. Section 41- 1607 of the Santa Ana Municipal Code (SAMC) requires an application for a density bonus agreement containing deviations (incentives/concessions and/or waivers) to be approved by the Planning Commission.

F. On August 28, 2023, the Planning Commission of the City of Santa Ana held a duly noticed public hearing and at that time considered all testimony, written and oral and voted to recommen d 5-2-0 (Ayes:

Commissioners Pham, Ramos, Woo, Escamilla, and Oliva; Noes: Leo and Benninger) that the City Council approve DBA No. 2023-01 as conditioned.

G. On October 17, 2023, the City Council of the City of Santa Ana held a duly noticed public meeti ng and at that time considered all testimony, written and oral.

H. The City Council hereby determines that the following findings, which must be established in order to grant this Density Bonus Agreement pursuant to SAMC Section 41- 1607, have been established for DBA No. 2023-01 to allow construction of the proposed project:

1. That the proposed development will materially assist in accomplishing the goal of providing affordable housing
opportunities in economically balanced communities throughout the city.

The proposed development will provide fifteen residential rental units, including one unit for very -low income households, contributing toward the City’s rental housing stock to serve the needs of diverse and underserved populations. The area in which the project is proposed, the Transit Zoning Code, currently contains a mix of uses, including single- family residential, medium and medium-high density apartments, townhomes, and neighborhood - serving commercial. The construction of this project will contribute toward an economically balanced community by providing housing for different demographic and income levels in an area rich with employment opportunities, commercial development, and market - rate housing.

2. That the development will not be inconsistent with the purpose of the underlying zone or applicable designation in the general plan land use element.

The project site is in an area already identified in both the City’s Zoning Code (the Transit Zoning Code) and General Plan (the Land Use and Housing elements ) for new residential communities.

Moreover, the City’s General Plan land use designation for the

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project site is Urban Neighborhood- Medium (UN-40), which allows for the development of semi -urban villages that are well connected to schools, parks, and shopping centers. These areas are accessible by multiple modes of transportation, have lively and pedestrian-friendly streetscapes, and are designed to foster community interaction.

This designation allows a mix of uses, including medium and medium-high densit y apartments, townhomes, garden- or motor - court homes, and neighborhood- serving commercial. Mixed- use projects are allowed in both horizontal configuration, with commercial and residential uses side- by-side, and vertical, with commercial uses on the groun d floor and residential above. Lastly, the proposed density of 52.26 dwelling units per acre (du/ac) is within the limits established by the California Density Bonus Law for an eight-percent affordability rate for one very-low income unit.

3. That the deviation is necessary to make it economically feasible for the Applicant to utilize a density bonus authorized for the development pursuant to section 41-1603.

The proposed project requires one deviation through
incentives/concessions: Mixed-use requirement ; as well as four deviations through a waiver in (1) maximum building height ; (2) building size and m assing s tandards; (3) open space standards; and (4) landscape standards. The five deviations are described as follows:

Mixed-use Requirement (Incentive/Concession)
Table 2A (Use Standards) in the Transit Zoning Code (TZC) states that multi -family dwellings are a permitted use in the Corridor (CDR) district, but only on second or upper floors, or behind retail or service ground floor use.

27.5-percent density bonus to which the applicant is entitled.

Moreover, the ground flo or commercial requirement is subordinate in function to the primary zoning classification of Multi -Family Dwellings within the CDR district. Lastly, adherence to ground floor commercial requirement would be economically infeasible, as it

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would require addi ng another story to the building to meet the ground floor commercial requirement and to still provide the number of units that the applicant is entitled to under State law.

Maximum Height (Waiver)
The maximum height permitted in the CDR district of the TZ C is three stories. As proposed, the maximum height of the new structure would be four stories (58- feet, nine- inches). However, only the stairwell and elevator penthouse will be at the maximum height, and the rest of the four -story structure would be 51- feet, nine-inches in height.

The proposed fourth story is needed to make construction of the residential development financially feasible. The gross site area and existing site conditions severely restrict the applicant from providing a site plan that could accommodate the proposed number of units with a three story building type. With the current maximum height restriction, the applicant could propose underground parking to take advantage of the limited gross site area. However, this would result in a project that is financially infeasible. Strict adherence to the maximum height requirement would result in a loss of four residential units, would physically preclude construction of the project, and would preclude the construction of the affordable unit to be dedicated to very-low income occupants. This would also make the project infeasible and would not allow the applicant to achieve the full 27.5-percent density bonus to which the applicant is entitled under State law.

Specifically, the second through fourth floor can only be 85- percent of the ground floor volume/gross floor area. As designed, the second through fourth floor cannot exceed 3,309 square feet.

The proposed site has a smaller than average lot depth and lot width, compared to most lots in the downtown area. Lots in the downtown area range in lot depth and width but are on average 250 feet by 250 feet. The subject site is approximately 100 feet by 125

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feet. Without the increase in the allowable building size and massing standards, the project would need to be redesigned, resulting in several impacts to the feasibility of the site’s development. These impacts would include a loss parking spaces; an incompatible design and unbalanced composition of massing the project site; and a smaller building footprint that would reduce the building’s interior floor area and individual unit sizes and result in a loss of units.

In order to provide the required building size and massing standards, the developer would be required to construct an additional level, resulting in a different type of construction (steel - frame versus wood), or build underground parking, further increasing development costs and making the project infeasible.

Open Space Standards (Waiver)
Pursuant to Section 41- 2022 of the TZC, the residential building is designed as Flex Block Building Type. This building type requires common open space to be designed as a courtyard or in the front as a forecourt, have it open to the sky, and to be equal to 15- percent of the lot. Moreover, private open space is required to be provided for each residential unit, no less than 50 square feet with a minimum dimension of six feet in each direction. The total common open space required is 1,875 square feet and the total private open space required is 750 square feet.

As proposed, the project provides 433 square feet of common interior space, provided in the form of lobby space (approximately

3.5-percent of lot). To the extent feasible, the lobby space is to be furnished (e.g., coffee tables, chair s, lounge tables, etc.). The project also provides 591 square feet of private open space, in the form of private decks for nine units. The gross site area and existing site conditions severely restrict the ability for the project to accommodate any common open space, and restrict the ability to provide the fully required private open space. Providing the required common open space standard would lead to the
elimination of three or more units, which would affect the feasibility to construct the project. In order to maintain the current proposed unit count, the developer would be required to construct additional floor levels or required to provide underground parking, which would further increase development costs and make the project financially infeasible. T o help alleviate the common open space deficiency, the project proposes an average of 40 square feet of private open space per unit, through use of private balconies/decks.

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Landscape Standards (Waiver)
Pursuant to Section 41- 2020 of the TZC, all setbacks, yards, and shared common open spaces are required to be landscaped. In addition, a landscape buffer of not less than five feet is required to be provided to separate parking lot from an adjacent properties and the surface parking lot is required to be landscaped per City’s commercial area standards.

As designed, the project provides a landscape buffer of two feet proposed along the western property lines, three feet less than required. In addition, the project does not provide the required full - size lands cape planters in the surface parking lot and instead provides partial and diamond- shaped planters. Due to site constraints, smaller than average lot size, and parking and landscaping requirements, the required landscape buffer and landscape planters cannot be accommodated. Maintaining the required landscape standards would result in a site redesign, reducing the number of parking stall, the drive aisle width, the ability of trash trucks to service the site, and ultimately lead to the loss of bedroom units, resulting in the project becoming infeasible.

In order to provide the required landscaping and maintain the current proposed unit count, the developer would be required to construct an additional level, resulting in a different type of construction (steel -frame versus wood), or build underground parking, further increasing development costs.

Section 2. In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, an Environmental Impact Report (EIR) was prepared and certified i n 2010 in order to address the potential environmental impacts associated with the Transit Zoning Code. A mitigation monitoring and reporting program (MMRP), findings of fact, and a statement of overriding consideration were adopted with the 2010 EIR. As proposed, the development is not anticipated to have additional environmental impacts not addressed in the 2010 EIR. Therefore, no additional environmental review will be required. Based on this analysis, a Notice of Exemption, Environmental Review No. 2022- 04 will be filed for this project. All applicable mitigation measures in the original EIR and associated MMRP will be enforced.

Section 3. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, writs of mandamus, referendum, and other proceedings (whether legal, equitable, declaratory, administrative or adjudic atory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively “Actions”), brought against the City and/or any of its offic ials, officers, employees, agents, departments, agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set

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aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers , employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve the legal counsel providing the City’s defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action.

Section 4. The City Council of the City of Santa Ana, after conducting the public hearing, hereby appro ves Density Bonus Agreement No. 2023-01 as conditioned in Exhibit A attached hereto and incorporated as though fully set forth herein. This decision is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Planning Commission Action dated August 28, 2023, and exhibits attached thereto; the Request for City Council Action dated October 17, 2023, and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference.

Section 5. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall attest to and certify the vote adopting this resolution.

ADOPTED this ____ day of ___________, 2023.

_______________________
Valerie Amezcua
Mayor

APPROVED AS TO FORM:

Sonia R. Carvalho
City Attorney

By:________________________
Jose Montoya
Assistant City Attorney

City Council
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AYES: Councilmembers _______________________________________

NOES: Councilmembers _______________________________________

ABSTAIN: Councilmembers _______________________________________

NOT PRESENT: Councilmembers _______________________________________

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CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Resolution No. 2023-XX to be the original resolution adopted by the City Council of the City of Santa Ana on________________, 2023.

Date: ________________ ____________________________________ City Clerk
City of Santa Ana

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EXHIBIT A
Conditions for Approval for Density Bonus Agreement Application No. 2023-01

Density Bonus Agreement Application No. 2023-01 is approved subject to compliance, to the reasonable satisfaction of the Planning Manager, with applicable sections of the Santa Ana Municipal Code, the California Administrative Code, the California Building Standards Code, and all other applicable regulations. In addition, it shall meet the following conditions of approval:

The Applicant must comply with each and every condition listed below prior to exercising the rights conferred by the Density Bonus Agreement.

The Applicant must remain in compliance with all conditions listed below thro ughout the life of the development project. Failure to comply with each and every condition may result in the revocation/termination of the Density Bonus Agreement.

1. All proposed site improvements must conform to the Development Project (DP) approval of DP No. 2021-33.

2. Any amendment to the DP No. 2021-33, including modifications to approved materials, finishes, architecture, site plan, landscaping, unit count, mix, and square footages must be submitted to the Planning Division for review. At that time, staff will determine if administrative relief is available or if the Development Project Review must be amended.

3. All mechanical equipment shall be screened from view from public and courtyard areas.

4. Prior to issuance of building permits, the Applicant shall submit a construction schedule and staging plan to the Planning Division for review and approval.

The plan shall include construction hours, staging areas, parking and site security/screening during project construction.

5. Prior to issuance of building permits, the Applicant shall submit to the Planning Division and have approved a Parking Management Plan (PMP). The PMP shall provide for measures to address any parking shortages that may result from the project, with terms including but not limited to:
a. Requiring onsite parking permits (such as stickers or hang-tags) for any parking in the onsite parking spaces for both residents and guests; b. Policies for maximum time vehicles may be parked in the surface parking spaces, including any guest parking; and

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c. Policies for towing unauthorized vehicles; vehicles parked in unauthorized locations, such as fire lanes; vehicles parking in surface guest parking without a sticker, hang -tag, or other identifiers; and vehicles parked longer than any maximum guest parking timefr ames allowed;

6. Prior to installation of landscaping, the Applicant shall submit representative photos and specifications of all trees to be installed on the project site for review and approval by the Planning Division. Specifications shall include, at a minimum, the species, box size (24 inches minimum), brown trunk height (10- foot minimum), and name and location of the supplier.

7. Walls and Fencing.
a. The applicant shall construct a minimum six-foot (6') tall perimeter wall, as measured from nearest adjacen t finished sidewalk, surrounding the project site, unless a conforming perimeter wall (minimum six -foot tall) already exists. Any new or existing perimeter wall shall conform to all applicable Citywide Design Guidelines, including a split -face or painted design with regularly-spaced pilasters and decorative cap. The applicant is responsible for coordination with any adjacent property owners to avoid double-walls or gaps between walls where possible. b. Climbing vines shall be planted at regularly -spaced intervals along all exposed walls and wrought -iron fencing to deter graffiti. All solid walls shall be finished with anti-graffiti coating.

8. After project occupancy, landscaping and hardscape materials must be maintained as shown on the approved landscape plans.

9. Prior to final occupancy, a Property Maintenance Agreement (Maintenance Agreement) must be recorded against the property. The agreement will be subject to review and approval by the Planning and Building Agency, the Community Development Agency, the Publ ic Works Agency, and the City Attorney to ensure that the property and all improvements located thereupon are properly maintained. Applicant (and the owner of the property upon which the authorized use and/or authorized improvements are located, if different from the Applicant) shall execute a M aintenance Agreement with the City of Santa Ana. The Maintenance Agreement shall be recorded against the property and contain covenants, conditions and restrictions relating to the following:
a. Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the

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construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.);
b. Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including but not limited to hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the parking management plan, and/or restrictions on certain uses);
c. Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable;
d. Ongoing maintenance, repair and upkeep of t he property and all improvements located thereupon (including but not limited to controls on the proliferation of trash and debris about the property; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandaliz ed and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); e. If Applicant and the owner of the property are different (e.g., if the Applicant is a tenant or licensee of the property or any portion thereof), both the Applicant and the owner of the p roperty shall be signatories to the Maintenance Agreement and both shall be jointly and severally liable for compliance with its terms.
f. The Maintenance Agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the Maintenance Agreement.
g. The Maintenance Agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the

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property. The Maintenance Agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City.
h. The execution and recordation of the Maintenance Agreement shall be a condition precedent to the Certificate of Occupancy.

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1 RECORDING REQUESTED BY:

AND WHEN RECORDED MAIL TO:

City of Santa Ana
Clerk of the Council
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, California 92702
Attention: Clerk of the Council
________________________________________________________________________ Free Recording pursuant to
Government Code 27383

DENSITY BONUS HOUSING AGREEMENT
(1212 E. Fourth Street, Santa Ana, California; APN: 398-385-02)

This DENSITY BONUS HOUSING AGREEMENT (“Agreement”), made and entered into this day of , 2023 (“Effective Date”), by and between the City of Santa Ana, a charter city and municipal corporation of the State of California (“City”), and Unison Real Estate Group, LLC, a California Limited Liability Company (“Developer”). City and Developer are sometimes referred to collectively as the “Parties” and individually as a “Party.”

RECITALS

A. Developer is the owner of that certain property located within the City of Santa Ana, County of Orange, State of California, commonly known as 1212 E. Fourth Street, Santa Ana, California, 9270 1, and legally described as set forth in Exhibit A attached hereto and incorporated herein by this reference as if set forth in full (“Property”).

B. Developer is proposing to develop a residential development consisting of no more than fifteen (15) residential rental units on the Property , as more particularly set forth in Density Bonus Application No. DBA-2023-1 (“Project”). Without the density bonus, Developer would only be permitted to build twelve (12) units on the Property.

C. Santa Ana Municipal Code sections 41-1600, et seq. (“City Density Bonus for Affordable Housing”), and California Government Code sections 65915, et seq. (“State Density Bonus Law”), set forth a process to provide increased residential densities and incentives, concessions, and waivers to property owners or developers 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 housing 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.

D. The Project is proposing a total number of fifteen (15) residential rental units, including one (1) unit for very-low income households. Pursuant to California Government Code

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2 Sections 65915 (p)(1)(A) and 65915 (p)(1)(B) , the Project will provide seventeen (17) total onsite parking spaces or 1.1 spaces per unit at a ratio of one (1) stall for studio or one-bedroom units, and one and one -half (1.5) stalls for two -bedroom units . No additional parking concession is requested or provided.

E. The Project complies with the affordable housing requirements set forth in the State Density Bonus Law and City Density Bonus for Affordable Housing. For purposes of this Agreement, the Project shall be a “housing development” as defined in the State Density Bonus Law.

F. In light of the purpose of the State Density Bonus Law and City Density Bonus for Affordable Housing , and the express provisions of Government Code Sections 65915(d)(1)(2)(A) and 65915(e)(1) , the City has determined to grant Developer’s application for one (1) concession and four (4) waivers.

G. This Agreement, and the exhibits attached hereto a nd incorporated herein by reference, are intended to set forth the terms and conditions for the implementation of the Project’s requirement to provide affordable housing units in exchange for receiving the density bonus, concession and waivers set forth herein.

NOW, THEREFORE, in consideration of the above recitals, which are incorporated herein by this reference, and of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. DEFINITIONS AND EXHIBITS

1.1 Definitions. In addition to the terms that may be defined elsewhere in this Agreement, the following terms when used in this Agreement shall be defined as follows:

1.1.1 "Adjusted for family size appropriate to the unit" shall have the meaning set forth by Health and Safety Code Section 50052.5(h).

1.1.2 "Affordable Rent" means the maximum Monthly Rent that may be charged to and paid by an Eligible Household for the Affordable Units, as required by the terms of this Agreement, and which shall not exceed one -twelfth (1/12) of the product of thirty percent (30%) times fifty percent (50%) times the Median Income for Orange County, as defined below in Section 1.1.17. The Affordable Rent shall be adjusted to reflect a reasonable utilities allowance for utilities paid by the household using the Santa Ana Housing Authority Multi -Family Housing Utility Allowance Schedule, and shall be updated no less than annually.

1.1.3 “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

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3 be created in accordance with the Orange County, California Primary Metropolitan Statistical Area (“PMSA”) as published by the California Department of Housing and Community Development (“HCD”), adjusted for family size, and shall be updated no less than annually.

1.1.4 "Affordable Units" means one (1) unit, which shall be comprised of one (1) one-bedroom unit for Very-Low Income Tenants. Any change to the number or distribution of Affordable Units is subject to City Manager approval.

1.1.5 "Agreement" means this Density Bonus Housing Agreement.

1.1.6 "City" means the City of Santa Ana, California

1.1.7 "City Council" means the City Council of the City of Santa Ana.

1.1.8 "City Attorney" means the City Attorney for the City of Santa Ana.

1.1.9 "City Manager" means the City Manager for the City of Santa Ana.

1.1.10 "City's Planning Commission" means the Planning Commission for the City of Santa Ana.

1.1.11 ''Density Bonus Housing Agreement Term" means the period during which this Agreement shall be in full force and effect, as provided for in Section 6.1 below.

1.1.12 "Developer" means Unison Real Estate Group, LLC, a California Limited Liability Company, and its permitted successors and assigns to all or any part of the Property , Project or this Agreement.

1.1.13 "Effective Date" means the date the Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement, pursuant to section 4.1 herein.

1.1.14 "Eligible Household" means a Household whose income does not exceed the qualifying limit for a “Very-Low Income Tenant” as defined herein.

1.1.15 “Extremely-Low Income Tenant” means persons and families whose income does not exceed thirty (30%) of the area median income for the Orange County, California PMSA, adjusted for household size, as published by HCD.

1.1.16 "Household" means all persons residing in a Unit.

1.1.17 "Median Income" means the Orange County, California area median income, adjusted for family size appropriate to the unit pursuant to California Health and Safety Code § 50052.5(h), as periodically published by HCD.

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4 1.1.18 "Monthly Rent" means the total of monthly payments for : (a) use and occupancy of each Affordable Unit and land and facilities associated therewith; (b) any separately charged fees or service charges assessed by Developer which are required of all tenants, other than security deposits, application fees or credit check fees; (c) a reasonable allowance for an adequate level of service of utilities not incl uded in (a) or (b) above, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuels, but not inclu ding telephone or cable service, to the extent applicable and charged to tenant ; and, (d) possessory interest, taxes or other fees or charges assessed for use of the land and facilities associated therewith by a public or private entity other than Developer. In the event that certain utility charges are paid by the landlord rather than the tenant, no utility allowance shall be deducted from the rent for that type of utility charge.

1.1.19 "Project" means that certain affordable residential development as more particularly described in Recital B and Section 2 of this Agreement.

1.1.20 "Property" means that certain real property more particularly described in the legal description in Exhibit A and improvements thereon.

1.1.21 "State Density Bonus Law" means Government Code sections 65915, et seq., as they exist on the Effective Date.

1.1.22 "Unit" means a residential dwelling unit within the Project to be constructed or caused to be constructed by Developer pursuant to this Agreement.

1.1.23 "Unrestricted Units" means the Units within the Project to be constructed or caused to be constructed by Developer to a Household without restriction.

1.1.24 “Very-Low Income Tenant” means a Household whose income does not exceed fifty (50%) of the area median income for the Orange County, California PMSA, adjusted for household size, as published by HCD. Very-Low Income Tenant shall include a household that qualifies as an Extremely Low-Income Household.

1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement:

1.2.1 Exhibit A – Legal Description of the Property

1.2.2 Exhibit B – Tenant Verification

1.2.3 Exhibit C – Annual Tenant Recertification

1.2.4 Exhibit D – Annual Rental Housing Compliance Report

1.2.5 Exhibit E – Notice of Affordability Restrictions on Transfer of Property

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5 2. DEVELOPMENT OF THE PROPERTY

2.1 Project. Developer shall develop, operate, and maintain, or cause the development, operation and maintenance of, the Property as a fifteen (15) unit rental residential community, with one (1) Affordable Unit for Very-Low Income Tenants.

2.2 Density Bonus. The Project shall have fifteen (15) Units, to be rented, occupied, operated, and maintained pursuant to the terms and conditions of this Agreement. Developer understands and agrees that Developer is utilizing a twenty -seven-and-a-half percent (27.5%) density bonus increase provided by the State Density Bonus Law (12 Base Units x 27.5% = 4 State Density Bonus Units) for a total of sixteen (16) units. However, Developer is only proposing fifteen (15) Units, so Developer sh all not construct or develop, or otherwise claim a right to construct or develop any additional State and/or City Density Bonus Units on the Property.

2.3 Development Concessions, Incentives, and Waivers . As set forth in the City entitlements, Developer petitioned for and is hereby granted the following concessions, incentives, and waivers as part of the approval of Density Bonus Application No. DBA-2023-1 for the Project:

2.3.1 Concession. In accordance with Government Code Section 65915(d)(1), Developer is granted a concession for relief from the requirement for ground floor retail or services, as set forth in Santa Ana Municipal Code § 41-2007.

2.3.2 Waivers. In accordance with Government Code Section 65915(e)(1), Developer is granted the following waivers:

(a) The height limitation set forth in Santa Ana Municipal Code § 41-2013(a) is waived to the extent the building height for this Project may be up to fifty-one (51) feet and nine (9) inches and four (4) stories.

(b) The maximum allowable building size and massing ratio set forth in Santa Ana Municipal Code § 41-2022(i)(5) are waived to the extent that the second through fourth floor will exceed the maximum allowable building size and massing ratio, and are 97.9 -percent of the ground floor’s volume.

(c) The open space requirements set forth in Santa Ana Municipal Code § 41- 2022(f) are waived such that the Project shall not be required to provide common open space in the form of a courtyard or in the front as a forecourt, and only five-hundred ninety-one (591) square feet of private open space will be required in the form of private decks for nine (9) Units.

(d) The requirement for a landscape buffer set forth in Santa Ana Municipal Code § 41-2020(6) is waived to the extent that a two (2) foot landscape buffer will be provided along the western property line, instead of the required five (5), and no landscape plan ters will be provided on the surface parking lot.

2.4 Parking Requirements. Onsite parking shall be provided in compliance with Government Code Sections 65915(p)(1)(A) and 65915(p)(1)(B). No parking concession is

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6 requested or provided. The Project will provide seventeen (17) total onsite parking spaces or 1.1 spaces per unit at a ratio of one (1) stall for studio or one -bedroom units, and one and one -half (1.5) stalls for two-bedroom units.

2.5 No Further Concessions , Incentives, or Waivers . Developer acknowledges and agrees that the concessions, incentives, and wa ivers set forth in section 2.3 , and the parking requirements set forth in section 2.4, above, fully satisfy any duty City may have under the City Density Bonus for Affordable Housing, the Density Bonus Law, or any other law or regulation to provide any density bonus incentive or to waive any building, zoning, or other requirement in connection with a density bonus . By this Agreement, Developer releases any and all claims Developer may have against City in any way relating to or arising from City’s obligation to waive requirements of or provide development incentives pursuant to the City Density Bonus for Affordable Housing and the Density Bonus Law applicable to the Project.

2.6 Unrestricted Units. The Project, for purposes of this Agreement, may have no more than fourteen (14) Unrestricted Units comprised of six (6) studio units, five (5) one bed-room units and three (3) two-bedroom units. Any change to the unit distribution of the Unrestricted Units may affect the comparability of the Affordable Units and is subject to City Manager approval.

2.7 Affordable Units. The Project, for purposes of this Agreement, shall have no less than one (1) Unit, which shall be comprised of one (1) one-bedroom unit designated as an Affordable Unit pursuant to the terms and conditions of this Agreement. The Affordable Unit shall be consistent with all City approvals, comparable in bedroom distribution and amenities to the Unrestricted Units, and shall be located throughout the Project as required under Santa Ana Municipal Code section 41-1602(c)(5).

2.8 Minimum Development Standards for Affordable Units. The Affordable Unit shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as provided for any Unrestricted Units, regardless of whether such Unrestricted Units are in the Project.

2.9 Permits and Processing; Compliance with Laws . Developer, at its sole cost and expense, or as otherwise set forth in a separate written agreement , shall secure or cause to be secured any and all permits that may be required for development of the Project by City or any other federal, state, or local governmental entity having or claiming jurisdiction over the Property or Project. Upon securing any and all permits, and all necessary financing and property interests, Developer shall carry out and perform the development, operation, and maintenance of the Project or cause the performance of the development, operation, and maintenance of the Project, in conformity with all applicable federal, state, and local laws and regulations, and all conditions of approval issued by the City Council and City's Planning Commission for the Project. Any changes to the Project shall be reviewed by the City to determine compliance with this Agreement. If any changes to the Project shall materially alter the ability of Developer to comply with any terms of this Agreement in City’s sole determination, then City and Developer shall meet and confer to address amendments and revisions to this Agreement as necessary.

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7 2.10 Relocation Prior to Development of Project . If relocation is required prior to the completion of development of the Project, Developer shall have the sole and exclusive responsibility for providing relocation assistance and paying all relocation costs as may be required to comply with applicable federal and state laws and regulations. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party for relocation assistance, benefits and costs prior to the completion of the development of the Project.

2.11 Mechanic's Liens; Indemnification . Developer shall take all actions reasonably necessary to remove any future mechanic's liens or other similar liens (including design professional liens) against the Property or Project, or any part thereof, by reason of work, labor, services, or materials supplied or claimed to have been supplied to Developer or caused by, at the direction of, or on behalf of Developer. Prior to the recording of this Agreement (or memorandum thereof) pursuant to Section 4.2 below, Developer shall provide evidence from the Title Company of any new recordings against the Property or Project. City hereby reserves all rights to post notices of non-responsibility and any other notices as may be appropriate upon a filing of a mechanic's lien. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, conditioned or delayed and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party by reason of a mechanic's lien or work, labor, services, or materials supplied or claimed to have been supplied to Developer or caused by, at the direction of, or on behalf of Developer.

3. AFFORDABILITY

3.1 Total Affordability Term . Each Affordable Unit shall be restricted to use and occupancy by an Eligible Household for a total period of no less than fifty-five (55) years ("Total Affordability Term"). The Total Affordability Term for an Affordable Unit shall commence on the date that the building in which the Affordable Unit is located receives all required occupancy permits from the City.

3.2 Memorializing Commencement of Total Affordability Term. Developer shall keep or cause to be kept detailed records of the commencement date of the Total Affordability Term for each Affordable Unit. City shall have the right to review and verify said records without a fee from City to Developer to ensure that the commencement date specified by Developer for an Affordable Unit coincides with the date that the initial Affordable Unit received all permits from City required for occupancy of the Unit. In the event that a conflict exists between the date specified b y Developer for the commencement of the Total Affordability Term for an Affordable Unit and the date specified by City's issuance of all required permits for occupancy of the Unit, the date specified by City's issuance of all required permits for occupancy of the Unit shall control.

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8 3.3 Levels of Affordability.

3.3.1 Very Low Income Tenants. Developer covenants that no less than one (1) Affordable Unit in the Project shall at all times during the Density Bonus Housing Agreement Term be rented to, or hel d vacant and available for immediate occupancy by an Eligible Household, at an Affordable Rent.

4. OPERATION OF THE PROJECT BY DEVELOPER

4.1 Payment of Density Bonus Setup Fee . A Density Bonus Setup Fee in the amount of $2,768.25, will be charged to the Developer and must be paid prior to execution of this Agreement.

4.2 Recording of Documents. No later than issuance of building permits for the Project, Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement. City shall cooperate with Developer in promptly executing in recordable form this Agreement. The date of recording of the Agreement shall be the Effective Date of the Agreement. Upon the date of recording, the terms and conditions of this Agreement shall be binding upon and run with the Property for no longer than the Total Affordability Term, and the Project. It is the express intent and agreement between the Parties that this Agreement shall r emain binding and enforceable against the Property, the Project, and the Units to ensure compliance with the State Density Bonus Law and City Density Bonus Law, and to ensure the continued supply of Affordable Units in the Project , except as expressly set forth in this Agreement.

4.3 Rental of Units. Upon the completion of construction of the Project and receipt by Developer of all required permits for the occupancy of the Units, Developer shall rent or cause to be rented each Affordable Unit for the Total Affordability Term for such Affordable Unit in accordance with the terms and conditions set forth in this Agreement, which provide among other terms and conditions for the rental of each Affordable Unit at an Affordable Rent to an Eligible Household for the Total Affordability Term.

4.4 Occupancy Levels. Subject to state or federal laws and regulations, the number of persons permitted to occupy each Affordable Unit shall not exceed two persons per bedroom, plus one person.

4.4.1 Written Notification . If an Eligible Household, during the terms of its tenancy, adds members that exceed the maximum occupancy allowed under this section, Developer shall provide written notification informing the household that: it is over - occupancy; has been placed on a waiting list for up to one-hundred and eighty (180) days; the expiration date of the waiting list; and the terms for terminating the lease. A written status update will be provided to the household at one -hundred and twenty (120) days, ninety (90) days, sixty (60) days and thirty (30) days if applicable.

4.5 Use of the Property. All uses conducted on the Property by Developer, including, without limitation, all activities undertaken by the Developer pursuant to this Agreement, shall

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9 conform to all applicable provisions of the Santa Ana Municipal Code and other applicable federal, state, and local laws, rules, and regulations. The Project shall at all times during the term of this Agreement be used as a rental housing complex and none of the Affordable Units in the Project, nor shall the Property or any portion thereof, ever be used as a hotel, motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest home, or be converted to condominium ownership. All of the community facilities and any social programs provided to the Project’s residents shall be available on an equal, nondiscriminatory basis to residents of all Units at the Project.

4.6 Maintenance. Developer shall, at all times during the term of this Agreement, cause the Property and the Project to be maintained in a decent, safe and sanitary manner, regardless of cause of the disrepair. Owner shall be fully and solely responsible for costs of maintenance, repair, addition and improvements. City, and any of its employees, agents, contractors or designees shall have the right to enter upon the Property at reasonable times and in a reasonable manner to inspect the Project, after providing notice as follows: (i) at least a 24-hour notice to Developer and Tenants of the Affordable Unit which will be inspected, or (ii) at least 48 hours’ notice to Developer, which shall promptly give notice to Tenants of the Affordable Unit to be inspected.

4.7 Affordable Rental Lease Agreement . Developer shall prepare and obtain City’s approval, which approval shall not be unreasonably withheld, conditioned or delayed, of a rental lease agreement for the Affordable Unit (“Affordable Unit Lease Agreement”) for the Affordable Unit. All Affordable Unit Lease Agreements must 1) identify the names and ages of all members of the household who will occupy the Affordable Unit; and 2) state that the Household’s right to occupy the Affordable Unit is subject to compliance with the Median Income requirem ents, adjusted for family size appropriate to the unit, as periodically published by HCD. All Affordable Unit Lease Agreements must be consistent with the terms contained in this Density Bonus Agreement.

4.8 Selection of Tenants.

4.8.1 Developer shall be responsible for the selection of tenants for the Affordable Units in compliance with lawful and reasonable criteria and the requirements of this Agreement.

4.8.2 Local preference for Santa Ana residents and workers in tenant selection for the Affordable Units shall be a requirement of the Project. Subject to applicable laws and regulations governing nondiscrimination and preferences in housing occupancy required by the State of California, the Developer shall give preference in leasin g the Affordable Units to households that live and/or work in the City of Santa Ana or who have an active Housing Choice Voucher issued by the Housing Authority of the City of Santa Ana or any other Public Housing Authority.

4.8.3 All applicants will be screened and “lotterized.” A waiting list will be created from a lottery generated from the initial pool of rental applications. The waiting list will track applicant name and contact information, lottery number (or designated number after the initial lottery), household income, household size, status of application, and any other information

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10 deemed necessary. The waiting list will be maintained as an electronic file and available for audit by the City of Santa Ana in accordance with resident selection procedures as set forth herein.

4.8.4 Prior to the rental or lease of an Affordable Unit to a tenant(s), Developer shall require the tenant(s) to execute a written lease and to complete a Tenant Income Verification Form (in substantially the form attache d hereto as Exhibit B) certifying that the tenant(s) occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility requirements established for the Affordable Unit. Developer shall verify the income of the tenant(s) as set forth herein.

4.9 Income Verification and Certification.

Developer shall make reasonable efforts to verify or cause to be verified that the income and asset statement provided by an applicant in an income certification is accurate by taking , at a minimum, at least one of the following steps as a part of the verification process: (1) obtain three months consecutive pay stubs for the most recent pay period, (2) obtain an income tax return for the most recent tax year, ( 3) obtain an income verification form from the applicant’s current employer, (4) 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 ( 5) if the applicant is unemployed and has no such tax return, obtain another form of independent verification.

4.9.1 Gross Household Income. Gross household income means all income from whatever source from all adult Household members, which is anticipated to be received during the 12-month period following the date of the determinat ion of Gross Household Income. The applicable sources of income are defined in California Code of Regulations Title 25 Housing and Community Development Section 6914.

4.9.2 Annual Recertification. Developer agrees to recertify or cause to be recertified household eligibility annually. Notification of Annual Tenant Recertification shall be sent to the household in substantially the f orm attached hereto as Exhibit C . An Annual Rental Housing Compliance Report (“Annual Compliance Report”) shall be sent by Developer to the City in substantially the form attached hereto as Exhibit D for City’s review and approval. The Annual Compliance Report shall be due to the City within thirty ( 30) days of the anniversary of the commencement of the Total Affordability Term, which is the date that each building receives all required occupancy permits from the City.

(a) The Developer may offer to rent the unit to the previously, but no longer, Eligible Household as an Unrestricted Unit without any limitations on rental rates. In that case, the Developer must then make available for rent to an

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(b) If the no longer Eligible Household either moves to another Unrestricted Unit within the Project or leaves the Project altogether, then the vacated Affordable Unit, or, at Developer’s election, any other Unrestricted Unit within the Project which meets the size and location requirements for Affordable Units under this Density Bonus Housing Agreement and has the same number of bedrooms as the vacated unit, shall be rented as an Affordable Unit to an Eligible Household.

4.10 Monitoring and Recordkeeping . Throughout the Term of this Agreement, Developer shall annually complete or cause to be completed and submit to City the Annual Compliance Report. Developer agrees to pay a reasonable fee , as set by City resolution , for the purpose of paying the actual cos ts associated with the City’s obligation to monitor Developer’s compliance with the affordability restrictions contained in this Agreement related to the Affordable Units, not to exceed monitoring costs for up to one (1) Affordable Units. Representatives of City shall be entitled to enter the Property if necessary after review of above documentation , upon at least forty-eight (48) hour notice, to monitor compliance with this Agreement, and shall be entitled to inspect the records of the Project relating to the Affordable Units and to conduct an independent audit or inspection of such records at a location within the City that is reasonably acceptable to the City without a fee from the City. Developer agrees to cooperate with City in making the Property and the records of the Project relating to the Affordable Unit reasonably available for such inspection or audit. Developer agrees to maintain or cause for the maintenance of each record of the Project for no less than five (5) years after creation of each such record.

Developer shall allow the City to conduct annual inspections of the Affordable Unit on the Property after the date of construction completion, with reasonable notice , which shall be at least twenty four (24) hours in advance, unless a shorter time is required in an emergency, to Owner of the Affordable Unit. Developer shall commence to cure or cause the commencement to cure any defects or deficiencies found by the City while conducting such inspections within ten (10) Business Days of written notice thereof, or such longer period as is reasonable within the sole discretion of the City.

4.11 Notice of Affordability Restr ictions on Transfer of Property . In the event the Developer wishes to sell or transfer the Project, during the Total Affordability Term, the City and the Developer shall execute and deposit into escrow , a Notice of Affordability Restrictions on Transfer of the Property, to be executed by the City and Developer in a form substantially similar to Exhibit E, which is attached hereto and must be executed by the parties prior to any transfer of the Property.

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12 4.12 [Intentionally Reserved]

4.13 Emergency Evacuation Plan. Developer shall submit and obtain approval of an Emergency Evacuation Plan (the EEP) from City Police and Fire Protection agencies prior to issuance of a Certificate of Occupancy. Up-to-date 24-hour emergency contact information for the on-site personnel shall be provided to the City on an ongoing basis and the approved EEP shall be kept onsite and also be submitted to the following City Agencies:

(a) Police Department
(b) Fire Department
(c) Planning and Building Agency
(d) Community Development Agency

4.14 Crime Free Housing. Developer shall work with City s taff to formalize a crime free housing policy, procedure, and design plan (the “CFH Plan”) , which includes the following provisions:

a. Requiring parking areas and common interior areas (lobbies, elevators, etc.) to contain security cameras;
b. Requiring routine unit inspections;
c. Ensuring lobby/other entrance doors are secured and accessed via remote controls, fobs, etc.; and
d. Have policies in place to ensure that common use areas such as hallways and trash enclosures are maintained in good condition and repair (e.g., well-lit, kept clean, etc.).

Developer shall submit and obtain approval from the City’s Planning and Building Agency (“PBA”) that the CFH Plan meets the requirements of this Subsection 4.14 prior to issuance of the Certificate of Occupancy . The approved CFH Plan shall be implemented and administered by Developer or its designated property manager.

4.15 Onsite Parking Management Plan . Developer shall provide onsite park ing for residents and visitors of the Project and actively monitor the parking demand of the Project site.

a. Requiring onsite parking permits (such as stickers or hang-tags) for any parking in the onsite parking spaces for both residents and guests;
b. Policies for maximum time vehicles may be parked in the surface parking spaces, including any guest parking; and
c. Policies for towing unauthorized vehicles, vehicles parked in unauthorized locations (such as fire lanes), vehicles parking in surface guest parking without a sticker, hang-tag, or other identifiers, and vehicles parked longer than any maximum guest parking timeframes allowed.

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13 Prior to issuance of the Certificate of Occupancy, Developer shall submit and obtain approval from the PBA a Parking Management Plan (the “PMP”) including those measures above.

The approved PMP shall be adhered to and be enforced by the Project at all times.

4.16 Marketing and Resident Selection Plan . Each Affordable Unit sha ll be leased to Eligible Households selected by Developer who meet all of the requirements provided herein.

Prior to Certificate of Occupancy, Developer shall prepare and obtain City’s approval of a marketing program and resident selection plan for the leasing of the Affordable Units at the Project (“Marketing Program”). The leasing of the Affordable Units shall thereafter be marketed in accordance with the Marketing Program as the same may be amended from time to time with City’s prior written approval. Upon request, Developer shall provide City with periodic reports with respect to the leasing of the Housing Units.

4.16.1 The Marketing Program shall include, but is not limited to, marketing and community outreach activities, proposed tenant selection criteria, occupancy standards, income requirements, timeline and details for outreach and marketing, data collection, record keeping and monitoring, procedures for complaints, and compliance assessment.

Components of the resident selection plan shall inc lude, but are not limited to, the application process, interview procedure, apartment offer and assignment, rejected applications, and wait list management. All requirements set forth herein shall be incorporated in the Marketing Program.

5. [INTENTIONALLY RESERVED]

6. TERM OF THIS AGREEMENT

6.1 Term. The term of this Agreement ("Density Bonus Housing Agreement Term") shall commence on the Effective Date and shall continue until the date that is fifty-five (55) years after the City issues the last certificate of occupancy for the building in which the Affordable Units are located.

7. DEFAULT AND TERMINATION; INDEMNIFICATION

7.1 Default. Failure or delay by any Party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of notice from the other Party specifying the default (or such other period specifically provided herein) , constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion within an additional sixty (60) days following the conclusi on of such thirty (30) day period (for a total of ninety (90) days). Except as required to protect against further damages, the injured Party may not institute proceedings against the Party in default until the time for cure has expired. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default.

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14 7.2 Rights and Remedies Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of i ts rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party . Notwithstanding anything to the contrary contained in this Agreement, in no event shall either Party be liable for speculative, consequential, punitive or other indirect damages, and each Party waives any right to collect speculative, consequential, punitive or other indirect damages against the other Party.

7.3 Indemnification. In addition to any other indemnity specifically provided in this Agreement, Developer agrees to defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, conditioned or delayed and which may be joint defense counsel upon City's and Developer's consent) indemnify and hold harmless City and its respective officers, officials, agents, employees, representatives, and volunteers (c ollectively, "Indemnitees") from and against any loss, liability, claim, or judgment arising from any act or omission of Developer in connection with its obligations under this Agreement, except to the extent caused by the negligence or willful misconduct of Indemnitees.

8. ASSIGNMENT; COVENANTS RUN WITH THE LAND

8.1 Assignment by Developer.

8.1.1 Prohibited Transfers or Assignments. Except as authorized in this Section or Section 8.1.2 below, Developer shall not sell, transfer, or assign the Property or Project in whole or in part, or transfer or assign Developer's rights and obligations in this Agreement, in whole or in part, without City's prior written approval, which shall not be unreasonably withheld , conditioned or delayed (“Permitted Transfer”); provided, however, Developer shall have the right without City’s prior written approval to transfer or assign the Property, Project and/or Developer’s rights and obligations in this Agreement to any entity that is controlled by, or is under common control with, Developer, and Developer shall thereafter be released from any future obligations under this Agreement. In connection with Permitted Transfer, Developer shall: (i) notify City in writing of the sale, transfer, or assignment of all or any portion of the Property, and (ii) deliver to City an assignment and assumption agreement (or other agreement) in a form approved by City in its reasonable discretion and executed by Developer and its transferee/assignee pursuant to which Developer's transferee/assignee assumes all of Developer's covenants and obligations set forth herein with respect to the Property or the portion thereof so transferred. Any request for transfer or assignment of the Agreement by Developer shall require the payment of fees or a deposit to compensate the City for approximate expenses incurred by Developer to City, as applicable, for the City’s review of the request. Upon the delivery of the assignment and assumption agreement as provided for above for a Permitted Transfer, or in the event of a sale of the Property as provided for in Section 8.1.1, Developer shall be released from any future obligations under this Agreement.

8.1.2 Sale of Property . Owner agrees and declares that the Property and the Project shall be held, conveyed, mortgaged, encumbered, leased, rented, used, occupied, operated, sold, and approved subject to all obligations set forth or incorporated in this Agreeme nt, all of which are for the purpose of enhancing and protecting the value and attractiveness of the Property and the Project. All of the obligations set forth or incorporated in this Agreement shall constitute

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15 covenants which run with the land and shall be binding on Owner and its successors and assigns, and all parties having or acquiring any right, title or interest in, or to any part of the Property or Project. Owner further understands and agrees that the Density Bonus permit approvals received for this Project have been made on the condition that Owner and all subsequent owners, or other successors and assigns of the Property and/or Project lease and rent the Affordable Units in accordance with the terms and conditions stipulated in Sections 4, 5 and 6 of this Agreement for a term of 55 consecutive years commencing upon the date that the Project is first occupied.

8.1.3 Subsequent Assignment. As used in this Agreement, the term "Developer" shall be deemed to include any such transferee or assignee after the date such sale, transfer, or assignment occurs in compliance with this Agreement.

8.1.4 Unpermitted Assignments Void. Any sale, transfer, or assignment made in violation of this Agreement shall be null and void, and City shall have the right to pursue any right or remedy at law or in equity to enforce the provisions of the restriction against unpermitted sales, transfers, or assignments.

8.2 Covenants Run with the Land. The Property shall be used, occupied and improved subject to the covenants, conditions, and restrictions set forth herein. The covenants, conditions, restrictions, reservations, equitable servitudes, liens and charges set forth in this Agreement shall run with the Property and shall be binding upon Developer and all persons having any right, title or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall inure to the benefit of City and its successors and assigns, and may be enforced by City and its successors and assigns. The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of City and its successors and assigns, and the parties hereto expressly agree that this Agreement and the covenants herein shall run in favor of City . City is deemed the beneficiary of the terms and provisions of this Agreement and of the co venants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Developer hereby declares its understanding and intent that the burden of the covenants set forth herein touch and concern the land and that the Developer's interest in the Property is rendered less valuable thereby. Developer hereby furthe r declares its understanding and intent that the agreement provides a public benefit in furtherance of benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the citizens of City and by furthering the health, safety, and welfare of the residents of City.

9. MISCELLANEOUS

9.1 Entire Agreement. This Agreement and all of its exhibits and attachments set forth and contain the entire understanding and agreement of the parties with respect to the density bonus of the Project , and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein.

No testimony or evidence of any such representati ons, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement.

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16 9.2 Amendment. Any alteration, change or modification of or to this Agreement, in order to b ecome effective, shall be made in writing and in each instance approved by the City Council, or through the City Manager as detailed herein, and signed on behalf of each party. The City Manager shall have the authority to make approvals, issue interpretations, execute documents, waive provisions, and/or enter into amendments of this Agreement on behalf of City that further the intent of this Agreement. Any requested alteration, change or modification of the Agreement by Developer shall require the payment of fees or deposit by Developer to City, as applicable, for the City’s review of the request. Each alteration, change, or modification to this Agreement shall be recorded against the Property in the Official Records of Orange County, California.

9.3 Notices.

9.3.1 Delivery. As used in this Agreement, "notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) two (2) days after deposit in the United States mail in a sealed envelope, first class mail and postage prepaid, and addressed to the recipient named below; or (iv) one (1) day after deposit with a known and reliable next -day document delivery service (such as Federal Express), charges prepaid and delivery scheduled next-day to the recipient named below, provided that the sending party receives a confirmation of delivery from the delivery service provider; or (v) the first business day following the date of transmittal of any facsimile, provided confirmation of successful transmittal is retained by the sending Par ty; or (vi) upon transmission thereof (as evidenced by the recipient’s reply to such notice or other competent evidence of actual receipt) if transmitted by electronic transmission (email), provided that a copy of such notice is concurrently sent by first-class mail postage prepaid. All notices shall be addressed as follows:

If to City: City of Santa Ana
Community Development Agency
20 Civic Center Plaza (M-26)
P.0. Box 1988
Santa Ana, California 92702
Attention: Housing Manager

With a copy to: Office of the City Attorney
City of Santa Ana
20 Civic Center Plaza, 7th Floor (M-29)
Santa Ana, California 92702

If to Developer: Unison Real Estate Group, LLC
18952 MacArthur Blvd Suite 210
Irvine, CA 92612

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17 Attention: Oscar Uranga

9.3.2 Change of Address. Either Party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change.

9.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement.

9.5 Interpretation and Governing Law . This Agreement and any dispute hereunder shall be governed and interprete d in accordance with the laws of the State of California without regard to conflict of law principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof.

9.6 Section Headings . All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

9.7 Singular and Plural. As used herein, the singular of any word includes the plural, and vice versa, as context so dictates. Masculine, feminine, and neuter forms of any word include the other as context so dictates.

9.8 Joint and Several Obligations. If at any time during the term of this Agreement the Property and/or Project is owned, in whole or in part, by more than one Developer, all obligations of such Developer under this Agreement shall be joint and several, and the default of any such Developer shall be the default of all such Developers.

9.9 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

9.10 Computation of Days. Unless otherwise specified in this Agreement or any Exhibit attached hereto, use of the term "days" shall mean calendar days. For purposes of this Agreement and all Exhibits attached hereto, "business days" shall mean every day of the week except Saturdays, Sundays, official State holidays as recognized in Government Code Section 19853(a) or successor statute, and any days in which Santa Ana City Hall is closed for business.

9.11 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party's right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter.

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18 9.12 Non-Discrimination. 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, a ncestry, or disability, as defined and 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 federal, state and local laws and regulations.

9.13 Third Party Beneficiaries. No person or entity, other than City and Developer shall have any right of action based upon any provision of this Agreement.

9.14 Force Majeure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, pandemics as declared by federal, state, or local emergency resolution, wars, riots or similar hostilities, strikes and other labor difficulties beyond the Party's control (including the Party's employment force), court actions (such as restraining orders or injunctions), or other causes beyond the Party's control, including d elays by any governmental entity (although the City may not benefit from this provision for a delay that results from City's failure to perform its obligations under this Agreement), or an insurance company of either party.

If any such events shall occur, the term of this Agreement and the time for performance by either Party of any of its obligations hereunder may be extended by the written agreement of the Parties for the period of time that such events prevented such performance.

9.15 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party.

9.16 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all permitted successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each Party and each successor in interest approved pursuant to this Agreement during ownership of the Property or any portion thereof.

9.17 Counterparts. This Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the Parties had executed the same instrument.

9.18 Jurisdiction and Venue . Any action at law or in equity under this Agreement or brought by a Party her eto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the Parties hereto waive all provisions of law prov iding for the filing, removal or change of venue to any other court.

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19 9.19 Project as a Private Undertaking . It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other associ ation of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property and the Developer of such property.

9.20 Further Actions and Instruments . Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and in the satisfaction of the Project and conditions of this Agreement. Upon the request of either Party at any time, the other Party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary u nder the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or the Project or to evidence or consummate the transactions contemplated by this Agreement. City hereby authorizes City Manager to take such other ac tions and negotiate and execute any additional agreements or amendments to this agreement as may be reasonably necessary or proper to fulfill the City's obligations under this Agreement. The City Manager may delegate her or his powers and duties under this Agreement to an authorized management level employee of the City.

9.21 Estoppel Certificate. Within ten (10) business days following a written request by any of the Parties, the other Party shall execute and deliver to the requesting Party a statement certifying that (i) either this Agreement is unmodified and in full force and effect or there ha ve been specified (date and nature) modifications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without mo dification, except as may be represented by the requesting Party , and that there are no uncured defaults in the performance of the requesting Party , except as may be represented by the requesting Party.

9.22 No Subordination . City's approval of the neces sary land use entitlements that authorize Developer to develop, operate, and maintain the Project was based upon Developer's obligation to provide the Affordable Units pursuant to the State Density Bonus Law, City Density Bonus for Affordable Housing, and the terms and conditions of this Agreement. For the Term of the Density Bonus Housing Agreement, this Agreement shall have priority over any and all mortgages, deeds of trust, and other similar forms of secured financing recorded against the Property or any portion thereof. Developer expressly understands and acknowledges that state law requires preservation of affordability covenants in connection with the approval of this density bonus project.

9.23 Attorneys' Fees and Costs. If either Party to this Agreement commences an action against the other Party to this Agreement arising out of or in connection with this Agreement, the

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20 prevailing Party shall be entitled to recover reasonable attorneys' fees, expert witness fees, costs of investigation, and costs of suit from the losing Party.

9.24 Authority to Execute. The person or persons executing this Agreement on behalf of each Party warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind the Party to the performance of its obligations hereunder.

{Signatures on following page}

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21 IN WITNESS WHEREOF, the parties hereto have caused this Density Bonus Housing Agreement to be executed on the date set forth at the beginning of this Agreement.

ATTEST: CITY OF SANTA ANA

___________________________ _______________________
Jennifer L. Hall Kristine Ridge
Clerk of the Council City Manager

APPROVED AS TO FORM
Sonia R. Carvalho
City Attorney

___________________________
By:

RECOMMENDED FOR APPROVAL: UNISON REAL ESTATE GROUP, LLC

______________________________ _______________________ Michael Garcia Oscar Uranga
Executive Director
Community Development Agency

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22 EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY

REAL PROPERTY IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

LOTS 3 AND 4 IN BLOCK "A" OF "SANTA ANA INVESTMENT COMPANY TRACT NO. 1 HUMPHREY'S ADDITION TO SANTA ANA", IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 11, PAGE 39 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA.

APN: 398-385-02

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23 EXHIBIT B

TENANT VERIFICATION

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24 EXHIBIT C

ANNUAL TENANT RECERTIFICATION

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25 EXHIBIT D

ANNUAL RENTAL HOUSING COMPLIANCE REPORT

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26 EXHIBIT E

NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY

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1. DENSITY BONUS AGREEMENT NO. 2023-01 FOR THE PROPERTY LOCATED AT 1212 EAST FOURTH STREET LOCATED WITHIN THE CORRIDOR (CDR) DISTRICT OF THE TRANSIT ZONING CODE/SPECIFIC DEVELOPMENT NO. 84 (SD84).

Project Applicant:

Oscar Uranga with Unison Real Estate Group, LLC (Applicant and Property Owner)
Proposed Project:

Applicant is proposing to construct a 15-unit rental residential development, with one unit proposed as affordable to very-low income households.

In order to facilitate the construction of the project, the applicant is requesting approval of Density Bonus Agreement (DBA) No. 2023-01 to utilize waivers from development standards and/or development concessions as permitted pursuant to California Government Code sections 65915 through 65918 as implemented by the Santa Ana Municipal Code (SAMC) Sections 41-1600 through 41-1607.

Environmental Impact:

Pursuant to the California Environmental Quality Act
(CEQA) and the CEQA Guidelines, the project is exempt from further review.

Categorical Exemption, Environmental Review (ER) No. 2022-04 will be filed for this project.

Recommended Action:
•
Adopt a resolution approving Density Bonus Agreement No. 2023-01 as conditioned.

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Planning and Building Agency
Item # 1
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Planning Commission Staff Report
August 28, 2023
Topic: Density Bonus Agreement No. 2023-01 – 4th and Grand (1212 E. Fourth Street)

RECOMMENDED ACTION
Adopt a resolution approving Density Bonus Agreement No. 2023-01 as conditioned.

As proposed, the project will utilize waivers from development standards and/or development concessions through the density bonus agreement pursuant to California Government Code sections 65915 through 65918 and Santa Ana Municipal Code (SAMC) Section 41-1600 through 41-1607. Moreover, the project requires approval by the Planning Commission and City Council for a density bonus to allow up to 52.26 dwelling units per acre (du/ac). The request satisfies the purpose and intent of the Transit Zoning Code (TZC) to promote a pedestrian-oriented environment with a mix of land uses and to provide additional affordable housing stock to an underserved segment of the region’s population.

As a result, staff recommends approval of the DBA.

DISCUSSION
Table 1: Project and Location Information
Item Information
Project Address and Council Ward 1212 E. Fourth Street – Ward 6 Nearest Intersection East Fourth Street and North Grand Avenue General Plan Designation Urban Neighborhood-Medium (UN-40) Zoning Designation Corridor (CDR) district within the Transit Zoning Code (SD- 84)
North Commercial
East Vacant
Surrounding Land Uses
South Single-family residential

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DBA No. 2023-01– 4th and Grand (1212 E. Fourth Street)
August 28, 2023

Page 2 ends

3 6
3 8
Project Description
The project includes the construction of a new four-story residential building with flats/apartments consisting of fifteen apartment units, 591 square feet of open space, seventeen parking spaces, and onsite bicycle storage. The residential development will include six studio units, five one-bedroom plus office units, one one-bedroom unit, and three two-bedroom units. Each of the fifteen units will contain full kitchens, bedrooms, bathrooms, and open/common (living) areas, and nine would include private decks. Of the total units in the development, one unit is proposed to be affordable to households earning less than 30-50 percent of the area median income (AMI), which is currently set at $71,750, adjusted for a four-person household size, as published by California Department of Housing and Community Development (HCD).

The project features a contemporary architectural style similar to many multiple-family or mixed-use residential communities under construction in Santa Ana and the region. The overall design, massing, features, and materials of the new construction will be compatible with, but differentiated from the existing neighborhood. The contemporary architectural style would include cement board shiplap siding, brick veneer, stucco finishes, vinyl frame windows, metal railings for proposed decks, metal awnings, and high quality architectural detailing. The project would also incorporate a series of art murals along the east and west elevations. Moreover, the structure is designed to fully screen all mechanical equipment within the structure and parapet walls. Overall, the project will include a design and solid construction materials that will ensure that the project ages well for the duration of the building’s lifetime.

Density Bonus
The California Density Bonus law allows developers proposing five or more residential units to seek increases in base density for providing on-site housing units in exchange for providing affordable units on site. To help make constructing on-site affordable units feasible, the law allows developers to seek up to three incentives/concessions and an unlimited number of waivers that facilitate production of units, which are essentially variances from development standards that would help the project be built without significant burden and without detriment to public health. The first version of the Density Bonus Law was adopted in 1979 and has since been amended at various times. In early 2017, the law West Commercial
Property Size 0.287-acres (12,500 square feet)
Existing Site Development The site is currently vacant and unimproved.

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was amended to restrict the ability of local jurisdictions to require studies to “justify” the density bonus and requested incentives/waivers and places the onus on local jurisdictions to prove that the incentives/concessions or waivers are not financially warranted.

0.287-acre site at 40 du/ac is 12 units. Of the total units in the development, one units is proposed to be affordable. Therefore, the project would have an eight-percent affordability rate. As such, State density bonus law allows the developer to request a maximum density bonus of 27.5 percent.

Due to the project’s eight-percent affordability rate, the developer can seek one density bonus concession and unlimited waivers, pursuant to Section 65915 et al. of the California Government Code (Density Bonuses and Other Incentives). In addition, California Assembly Bill No. 2345, approved September 28, 2020, revised the State Density Bonus Law originally adopted in 1979 to provide additional benefits for projects that include qualifying affordable housing. Pursuant to Section 65915 et al. of the California Government Code, the developer is requesting a 27.5-percent density bonus. As such, the maximum unit yield for the 0.287- acre site using the most “intense” building type allowed in CDR and the State density bonus is 16 units, as outlined in Table 2. However, the applicant is proposing to develop fifteen units on the site.

27.5-Percent State Density Bonus (12 units x 0.275) +4 Units** Total Units 16 Units
Proposed Units 15 Units
*Affordable unit percentage is calculated excluding units added by a density bonus. **AB 2501 states that any density calculations resulting units shall be rounded up to the next whole number. Applies to: Number of affordable units required to be eligible for the density bonus; Base density (i.e. the number of affordable units in the base project); and Eligible bonus units.

The purpose of the State’s Density Bonus Law is to encourage the development and availability of affordable housing by requiring the inclusion of affordable housing units within new developments. Pursuant to California Government Code sections 65915 (d)(1) and 65915 (e)(1), a local jurisdiction is limited in its ability to deny requested concessions and waivers and is preempted from denying the Density Bonus Agreement application. Although the City has analyzed the project and has identified several areas of concern, the conditions of approval proposed for the project are intended to address any of the project’s potential impacts. Table 3 outlines the incentives/concessions and waivers requested by the applicant.

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Table 3: Requested Incentives/Concessions
TZC Standard Requirement Provided
Mixed-Use
Requirement
•Multi-family dwellings permitted
only on second or upper floors, or
behind retail or service ground
floor use.

Section 41-2022 (i)(5) - Table BT-4
The second through fourth floor
exceed the allowable ratio and are

Section 41-2022 (f)
•No common open space in the
form of a courtyard, or in the front
as a forecourt, is provided
•433 square feet of common
interior space provided in the form
of lobby space (approximately 3.5-
percent of lot)
•591 square feet of private open
space will be provided in the form
of private decks for nine (9) Units.
– Requires Concession (1 of 1),
Cal. Gov’t Code Sec. 65915
(d)(1)
Landscaping
Standards
•All setbacks, yards, and shared
common open spaces are
required to be landscaped.
•A landscape buffer of not less
than five feet required to be
provided to separate parking lot
from an adjacent property
•Surface parking lots required to be
landscaped per City’s commercial
area standards, which require full-
size landscape planters for every
ten parking spaces.

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Onsite Parking
In addition, the site is parked in compliance with California Government Code 65915 (p)(1)(A) and 65915 (p)(1)(B) and provides 17 total surface parking spaces or 1.1 spaces per unit. The California Density Bonus Law allows a parking ratio of one (1) stall for studio or one-bedroom units, and one and one-half (1.5) stalls for two-bedroom units, inclusive of handicapped and guest parking.

Analysis of the Issues
Pursuant to Section 41-1607 of the SAMC, an application for a density bonus agreement is required to be approved by the Planning Commission for any project containing “deviations” (incentives/concessions and/or waivers). The Planning Commission’s review of the density bonus agreement is based on the following findings:

1. The proposed development will materially assist in accomplishing the goal of providing affordable housing opportunities in economically balanced communities throughout the city.

2. The development will not be inconsistent with the purpose of the underlying zone or applicable designation in the general plan land use element.

3. 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- 1603.

Because the project does not exceed four stories in height, the project does not require a Site Plan Review Application pursuant to Table 2A (Use Standards) as part of the Transit Zoning Code (TZC). Accordingly, the Planning Commission’s review and determination for this request are limited to the provisions of the Density Bonus Agreement application only.

Table 4: Analysis of the Requested Incentives/Concessions (1) and Waivers (4) Standard Analysis
Mixed-Use Requirement Table 2A (Use Standards) in the Transit Zoning Code (TZC) states that multi- family dwellings are a permitted use in the Corridor (CDR) district, but only on second or upper floors, or behind retail or service ground floor use.

27.5-percent density bonus to which the applicant is entitled. Moreover, the ground floor commercial requirement is subordinate in function to the primary zoning classification of Multi-Family Dwellings within the CDR district. Lastly,

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Standard Analysis
adherence to ground floor commercial requirement would be economically infeasible, as it would require adding and additional story to the building to meet the ground floor commercial requirement and to still provide the number of units that the applicant is entitled to under State law.

Maximum Height The maximum height permitted in the CDR district of the TZC is three stories.

Strict adherence to the maximum height requirement would result in a loss of four residential units, would physically preclude construction of the project, and would preclude the construction of the affordable unit to be dedicated to very-low income occupants. This would also make the project infeasible and would not allow the applicant to achieve the full 27.5-percent density bonus to which the applicant is entitled under State law.

Building Size and
Massing Standards –
Maximum Ratio for each
Flex Block story
Pursuant to Section 41-2022 of the TZC, the residential building is designed as Flex Block Building Type. The building type establishes a maximum ratio for each flex block story/level. Specifically, the second through fourth floor can only be 85-percent of the ground floor volume/gross floor area. As designed, the second through fourth floor cannot exceed 3,309 square feet.

Without the increase in the allowable building size and massing standards, the project would need to be redesigned, resulting in several impacts to the feasibility of the site’s development. These impacts would include a loss parking spaces; an incompatible design and unbalanced composition of massing the project site; and a smaller building footprint that would reduce the building’s interior floor area and individual unit sizes and result in a loss of units.

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Standard Analysis
Open Space Standards Pursuant to Section 41-2022 of the TZC, the residential building is designed as Flex Block Building Type. This building type requires common open space to be designed as a courtyard or in the front as a forecourt, have it open to the sky, and to be equal to 15-percent of the lot. Moreover, private open space is required to be provided for each residential unit, no less than 50 square feet with a minimum dimension of six feet in each direction. The total common open space required is 1,875 square feet and the total private open space required is 750 square feet.

Landscaping Standards Pursuant to Section 41-2020 of the TZC, all setbacks, yards, and shared common open spaces are required to be landscaped. In addition, a landscape buffer of not less than five feet is required to be provided to separate parking lot from an adjacent properties and the surface parking lot is required to be landscaped per City’s commercial area standards.

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landscaping, and the required building size and massing. However, these changes would increase development costs, resulting in the housing project becoming financially infeasible due to the significantly increased financial implications of an alternative construction type compared to the relatively smaller scale of the project. In addition, these changes would reduce the number of units that could be constructed on the site and therefore eliminate the affordable housing unit that would result from the project.

Public Notification and Community Outreach
Project notifications were posted, published, and mailed in accordance with City and State regulations. Copies of the public notice, including a 1,000-foot notification radius map, and the site posting are provided in Exhibit 11. In addition, staff contacted the provided contacts for the Saddleback View Neighborhood Association to ensure they were aware of the project and public hearing. At the time this report was printed, no issues of concern were raised regarding the proposed development.

As proposed, the development is not anticipated to have additional environmental impacts not addressed in the 2010 EIR. Therefore, no additional environmental review will be required. Based on this analysis, a Notice of Exemption, Environmental Review No. 2022- 04 will be filed for this project. However, all applicable mitigation measures in the original EIR and associated MMRP will be enforced. The 2010 TZC EIR and MMRP have been provided as Exhibit 10 for reference.

EXHIBIT(S)

1. Resolution Approving DBA No. 2023-01 as conditioned

2. Vicinity Zoning and Aerial View

3. Site Photos

4. Site Plan

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5. Unit Floor Plans

6. Building Elevations

7. Building Perspectives

8. Preliminary Landscape Plans

9. Draft Density Bonus Agreement

10. 2010 Transit Zoning Code EIR

11. Copy of Public Notice
Submitted By:

Pedro Gomez, AICP Senior Planner
Approved By:

Minh Thai, Executive Director, Planning and Building Agency

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RESOLUTION NO. 2023-XXX

A RESOLUTION OF THE PLANNING COMMISSION OF

THE CITY OF SANTA ANA APPROVING DENSITY BONUS
AGREEMENT NO. 2023-01 AS CONDITIONED FOR A NEW

RENTAL RESIDENTIAL D EVELOPMENT WITH FIFTEEN
UNITS FOR THE PROPERTY LOCATED AT 1212 E.

FOURTH STREET (APN: 398-385-02)

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. Oscar Uranga (applicant), on behalf of Unison Real Estate Group, LLC (property owner), is requesting approval of density bonus agreement (DBA) No. 2023-01 to allow the construction of a rental residential development, consisting of fifteen apartment units with one unit proposed as affordable to very-low income households earning less than 50 percent of the area median income (AMI) for the property located at 1212 E. Fourth Street.

C. The California Density Bonus law allows developers to seek increases in base density for providing on-site housing units in exchange for providing affordable units on site. To help make constructing on-site affordable units feasible, the law allows developers to seek incentives/concessions or waivers that would help the project be built without significant burden and without detriment to public health.

D. The Applicant’s request has been thoroughly evaluated by the City’s Development Review Committee (DRC) through Development Project No. 2021-33. Through this review, the DRC has considered the subject site, proposed development , and the applicant’s requests for incentives/concessions and waivers pursuant to the State’s Density Bonus Law.

E. Section 41- 1607 of the Santa Ana Municipal Code (SAMC) requires an application for a density bonus agreement containing deviations

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(incentives/concessions and/or waivers) to be approved by the Planning Commission.

F. On August 28, 2023, the Planning Commission of the City of Santa Ana held a duly noticed public hearing and at that time considered all testimony, written and oral.

G. The Pla nning Commission determines that the following findings, which must be established in order to grant this Density Bonus Agreement application pursuant to SAMC Section 41-1607, have been established for Density Bonus Agreement N o. 2023-01 to allow construct ion of the proposed project:

1. That the proposed development will materially assist in accomplishing the goal of providing affordable housing opportunities in economically balanced communities throughout the city.

The proposed development will provide fifteen residenti al rental units, including one unit f or very -low income
households, contributing toward the City’s rental housing stock to serve the needs of diverse and underserved
populations. The area in which the project is proposed, the Transit Zoning Code, currently c ontains a mix of uses, including single-family residential, medium and medium-high density apartments, townhomes , and neighborhood- serving commercial. The construction of this project will contribute toward an economically balanced comm unity by providing housing for different demographic and income levels in an area rich with employment opportunities, commercial
development, and market-rate housing.

2. That the development will not be inconsistent with the purpose of the underlying zone or applicable designation in the general plan land use element.

The project site is in an area already identified in both the City’s Zoning Code (the Transit Zoning Code) and General Plan (the Land Use and Housing elements) for new residential
communities. Moreover, the City’s General Plan land use designation for the project site is Urban Neighborhood-Medium (UN-40), which allows for the development of semi -urban villages that are well connected to schools, parks, and shopping centers. These areas are acce ssible by multiple modes of transportation, have lively and pedestrian-friendly streetscapes, and are designed to foster community interaction.

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This designation allows a mix of uses, including medium and medium-high density apartments, townhomes, garden- or
motor-court h omes, and neighborhood- serving commercial.

Mixed-use projects are allowed in both horizontal configuration, with commercial and residential uses side-by-side, and vertical, with commercial uses on the ground floor and residential above.

Lastly, the proposed density of 52.26 dwelling units per acre (du/ac) is below the density bonus provisions in the California Density Bonus Law for an eight-percent affordability rate for one very-low income unit (27.5-percent State Density Bonus) which allows for 55.7 du/ac on the project site.

3. That the deviation is necessary to make it economically feasible for the Applicant to utilize a density bonus authorized for the development pursuant to section 41-1603.

The proposed project requires on e deviation through
incentives/concessions: Mixed-use requirement ; as well as four deviations through a waiver in (1) maximum building height; (2) building size and m assing s tandards; (3) open space standards; and (4) landscape standards . The five deviations are described as follows:

Pursuant to Government Code Section 65915 (k)(1), a
concession may be sought by the applicant not only to modify or eliminate a development standard but also to modify
“zoning code requirements.” In this case, the requirement for ground floor commercial is a zoning code requirement. Strict adherence to this requirement would result in a reduction in the number of units that can be provided in the overall project, thus not achieving the full 27.5-percent density bonus to which the applicant is entitled. Moreover, the ground floor
commercial requirement is subordinate in function to the primary zoning classification of Multi -Family Dwellings within the CDR district. Lastly, adherence to ground floor
commercial requirement would be economically infeasible, as it would require adding another story to the building to meet the ground floor commercial requirement and to still provide the number of units that the applicant is entitled to under State law.

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However, only the stairwell and elevator penthouse will be at the maximum height, and the rest of the four -story structure would be 51-feet, nine-inches in height.

The proposed fourth story is needed to make construction of the residential development financially feasible. The gross site area and existing site conditions severely restrict the applicant from providing a site plan that could accommodate the
proposed number of units with a three story building type. With the cur rent maximum height restriction, the applicant could propose underground parking to take advantage of the limited gross site area. However, this would result in a project that is financially infeasible. Strict adherence to the maximum height requirement would result in a loss of four residential units, would physically preclude construction of the project, and would preclude the construction of the affordable unit to be dedicated to very -low income occupants. This would also make the project infeasible and would not allow the applicant to achieve the full 27.5- percent density bonus to which the applicant is entitled under State law.

Building Size and Massing Standards – Maximum Ratio for each Flex Block story (Waiver)
Pursuant to Section 41- 2022 of the TZC, the residential building is designed as Flex Block Building Type. The building type establishes a maximum ratio for each flex block
story/level. Specifically, the second through fourth floor can only be 85- percent of the ground floor volume/gross floor area. As designed, the second through fourth floor cannot exceed 3,309 square feet.

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standards, the project would need to be redesigned, resulting in several impacts to the feasibility of the site’s development.

These impacts would include a loss parking spaces; an
incompatible design and unbalanced composition of massing the project site; and a smaller building footprint that would reduce the building’s interior floor area and individual unit sizes and result in a loss of units.

Open Space Standards (Waiver)
Pursuant to Section 41- 2022 of the TZC, the residential building is designed as Flex Block Building Type. This building type requires common open space to be designed as a
courtyard or in the front as a forecourt, have it open to the sky, and to be equal to 15 -percent of the lot. Moreover, private open space is required to be provided for each residential unit, no less than 50 square feet with a minimum dimension of six feet in each direction. The total common open space required is 1,875 square feet and the total private open space required is 750 square feet.

As proposed, the project provides 433 square feet of common interior space, provided in the form of lobby space
(approximately 3.5-percent of lot) to be furnished (e.g., coffee tables, chairs, lounge tables, etc.), where feasible. The project also provides 591 square feet of private open space, in the form of private dec ks for nine units. The gross site area and existing site conditions severely restrict the ability for the project to accommodate any common open space, and
restrict the ability to provide the fully required private open space. Providing the required common open space standard would lead to the elimination of three or more units, which would affect the feasibility to construct the project. In order to maintain the current proposed unit count, the developer would be required to construct additional floor levels or required to provide underground parking, which would further increase development costs and make the project financially infeasible.

To help alleviate the common open space deficiency, the project proposes an average of 40 square feet of private open space per unit, through use of private balconies/decks.

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Landscape Standards (Waiver)
Pursuant to Section 41-2020 of the TZC, all setbacks, yards, and shared common open spaces are required to be
landscaped. In addition, a landscape buffer of not less than five feet is required to be provided to separate parking lot from an adjacent properties and the surface parking lot is required to be landscaped per City’s commercial area standards.

Due to site constraints, smaller than average lot size, and parking and landscaping requirements, the required
landscape buffer and landscape planters cannot be
accommodated. Maintaining the required landscape
standards would result in a site redesign, reducing the number of parking stall, the drive aisle width, the ability of trash trucks to service the site, and ultimately lead to the loss of bedroom units, resulting in the project becoming infeasible. In order to provide the required landscaping and maintain the current proposed unit count, the developer would be required to construct an additional level, resulting in a different type of construction (steel-frame versus wood), or build underground parking, further increasing development costs.

Section 2. In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, an Environmental Impact Report (EIR) was prepared and certified in 2010 in order to address the potential environmental impacts associated with the Transit Zoning Code. A mitigation monitoring and reporting program (MMRP), findings of fact, and a statement of overriding consideration were adopted with the 2010 EIR. As proposed, the development is not anticipated to have additional environmental impacts not addressed in the 2010 EIR. Therefore, no additional environmental review will be required. Based on this analysis, a Notice of Exemption, Environmental Review No. 2022- 04 will be filed for this project. All applicable mitigation measures in the original EIR and associated MMRP will be enforced.

Section 3. The Applicant shall indemnify, protect, defend and hold the City and/or any of its officials, officers, employees, agents, departments, agencies, authorized volunteers, and instrumentalities thereof, harmless from any and all claims, demands, lawsuits, wri ts of mandamus, referendum, and other proceedings (whether legal, equitable, declaratory, administrative or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to arbitrations, mediations, and such other procedures), judgments, orders, and decisions (collectively “Actions”), brought against the City and/or any of its officials, officers, employees, agents, departments,

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agencies, and instrumentalities thereof, that challenge, attack, or seek to modify, set aside, void, or annul, any action of, or any permit or approval issued by the City and/or any of its officials, officers, employees, agents, departments, agencies, and instrumentalities thereof (including actions approved by the voters of the City) for or concerning the project, whether such Actions are brought under the Ralph M. Brown Act, California Environmental Quality Act, the Planning and Zoning Law, the Subdivision Map Act, Code of Civil Procedure sections 1085 or 1094.5, or any other federal, state or local constitution, statute, law, ordinance, charter, rule, regulation, or any decision of a court of competent jurisdiction. It is expressly agreed that the City shall have the right to approve the legal counsel providing the City’s defense, and that Applicant shall reimburse the City for any costs and expenses directly and necessarily incurred by the City in the course of the defense. City shall promptly notify the Applicant of any Action brought and City shall cooperate with Applicant in the defense of the Action.

Section 4.

The Planning Commission of the City of Santa Ana, after conducting the public hearing, hereby approves Density Bonus Agreement No. 2023-01 as conditioned in Exhibit A attached hereto and incorporated as though fully set forth herein. This decision is based upon the evidence submitted at the above said hearing, which includes, but is not limited to: the Request for Planning Commission Action dated August 28, 2023, and exhibits attached thereto; and the public testimony, written and oral, all of which are incorporated herein by this reference.

ADO
PTED this 28th day of August 2023, by the following vote:

AYES: Commissioners:

NOES: Commissioners:

ABSENT: Commissioners:

ABSTENTIONS: Commissioners:

_______________________
Bao Pham
Chairperson

APPROVED AS TO FORM:

Sonia R. Carvalho, City Attorney

By:________________________
John Funk
Chief Assistant City Attorney

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CERTIFICATE OF ATTESTATION AND ORIGINALITY

I, Nuvia Ocampo , Recording Secretary, do hereby attest to and certify the attached Resolution No. 2023- XXX to be the original resolution adopted by the Planning Commission of the City of Santa Ana on August 28, 2023.

Date: ________________ ____________________________________ Recording Secretary
City of Santa Ana

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EXHIBIT A
Conditions for Approval for Density Bonus Agreement Application No. 2023-01

The Applicant must comply with each and every condition listed below prior to exercising the rights conferred by the Density Bonus Agreement.

The Applicant must remain in compliance with all conditions listed below throughout the life of the development project. Failure to comply with each and every condition may result in the revocation/termination of the Density Bonus Agreement.

1. All proposed site improvements must conform to the Development Project (DP) approval of DP No. 2021-33.

3. All mechanical equipment shall be screened from view from public and courtyard areas.

4. Prior to issuance of building permits, the Applicant shall submit a construction schedule and staging plan to the Planning Division for review and approval. The plan shall include construction hours, staging areas, parking and site security/screening during project construction.

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c. Policies for towing unauthorized vehicles; vehicles parked in unauthorized locations, such as fire lanes; vehicles parking in surface guest parking without a sticker, hang-tag, or other identifiers; and vehicles parked longer than any maximum guest parking timeframes allowed;

7. Walls and Fencing.
a. The applicant shall construct a minimum six-foot (6') tall perimeter wall, as measured from nearest adjacent finished sidewalk, surrounding the project site, unless a conforming perimeter wall (minimum six -foot tall) already exists. Any new or existing perimeter wall shall conform to all applicable Citywide Design Guidelines, including a split-face or painted design with regularly-spaced pilasters and decorative cap. The applicant is responsible for coordination with any adjacent property owners to avoid double-walls or gaps between walls where possible.
b. Climbing vines shall be planted at regularly -spaced intervals along all exposed walls and wrought-iron fencing to deter graffiti. All solid walls shall be finished with anti-graffiti coating.

8. After project occupancy, landscaping and hardscape materials must be maintained as shown on the approved landscape plans.

9. Prior to final occupancy, a Property Maintenance Agreement must be recorded against the property. The agreement will be subject to review and applicability by the Planning and Building Agency, the Community Development Agency, the Public Works Agency, and the City Attorney to ensure that the property and all improvements located thereupon are properly maintained, Applicant (and the owner of the property upon which the authorized use and/or authorized improvements are located if different from the Applicant) shall execute a maintenance agreement with the City of Santa Ana which shall be recorded against the property and which shall be in a form reasonably satisfactory to the City Attorney. The maintenance agreement shall contain covenants, conditions and restrictions relating to the following:
a. Compliance with operational conditions applicable during any period(s) of construction or major repair (e.g., proper screening and securing of the

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construction site; implementation of proper erosion control, dust control and noise mitigation measure; adherence to approved project phasing etc.);
b. Compliance with ongoing operational conditions, requirements and restrictions, as applicable (including but not limited to hours of operation, security requirements, the proper storage and disposal of trash and debris, enforcement of the parking management plan, and/or restrictions on certain uses);
c. Ongoing compliance with approved design and construction parameters, signage parameters and restrictions as well as landscape designs, as applicable;
d. Ongoing maintenance, repair and upkeep of the property and all improvements located thereupon (including but not limited to controls on the proliferation of trash and debris about the proper ty; the proper and timely removal of graffiti; the timely maintenance, repair and upkeep of damaged, vandalized and/or weathered buildings, structures and/or improvements; the timely maintenance, repair and upkeep of exterior paint, parking striping, lighting and irrigation fixtures, walls and fencing, publicly accessible bathrooms and bathroom fixtures, landscaping and related landscape improvements and the like, as applicable); e. If Applicant and the owner of the property are different (e.g., if the Applicant is a tenant or licensee of the property or any portion thereof), both the Applicant and the owner of the property shall be signatories to the maintenance agreement and both shall be jointly and severally liable for compliance with its terms.
f. The maintenance agreement shall further provide that any party responsible for complying with its terms shall not assign its ownership interest in the property or any interest in any lease, sublease, license or sublicense, unless the prospective assignee agrees in writing to assume all of the duties and obligations and responsibilities set forth under the maintenance agreement.
g. The maintenance agreement shall contain provisions relating to the enforcement of its conditions by the City and shall also contain provisions authorizing the City to recover costs and expenses which the City may incur arising out of any enforcement and/or remediation efforts which the City may undertake in order to cure any deficiency in maintenance, repair or upkeep or to enforce any restrictions or conditions upon the use of the

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property. The maintenance agreement shall further provide that any unreimbursed costs and/or expenses incurred by the City to cure a deficiency in maintenance or to enforce use restrictions shall become a lien upon the property in an amount equivalent to the actual costs and/or expense incurred by the City.
h. The execution and recordation of the maintenance agreement shall be a condition precedent to the Certificate of occupancy.

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7/26/23, 8:30 AM .
https://apps.spatialstream.com/landvision/production/CurrentBuild/Html/printpreview.html 1/1 DBA No. 2023-01 - 4th and Grand1212 E. Fourth Street
Exhibit 2 - Vicinity Zoning and Aerial View
©2023DigitalMapProducts.Allrightsreserved.

Santa Ana Boundary
Zoning
500 feet

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DBA-2023-01 – 1212 E. FOURTH STREET

SITE PHOTOS
EXHIBIT 3

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DBA-2023-01 – 1212 E. FOURTH STREET

SITE PHOTOS
EXHIBIT 3

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05/08/2023
1212 E FOURTH STREET SANTA ANA, CA
6' 8 3/4"
46’-0” 74' 0"
5’-0”
TRASH SERVICE NOTES:

REFER TO SHEET E2
”TRASH PICKUP EXHIBIT” FOR TECHNICAL DATA, NOTATIONS, AND TRASH TRUCK TURNING MOVEMENTS AND RADII.

Transformer Pad
36” LOW PATIO WALL
A02
100' 0"
125’-0”

CORRIDOR
160 sf
Solid Waste Room
101 sf
(4’-11” x 22’-8” clear)

UTILITY
28 sf

ELEV EQ
34 sf

RESIDENT
LOBBY
180 sf

VAN ACCESSIBLE

PARKING

LINE OF BUILDING ABOVE
0 4 8 16
SCALE: 1/8”=1'-0"

PLAN CR
ELEV
PLAN C
LOBBY
253 sf
PLAN E
684 sf

MAILBICYCLE

STORAGE
64 sf

VAN ACCESSIBLE

PARKING

ILLUSTRATIVE SITE PLAN/FIRST FLOOR PLAN

ILLUSTRATIVE SITE PLAN & BUILDING PLANS

FRONT SETBACK

REAR BUILDING SETBACK
E. F O U R T H S T R E E T

RESIDENT PARKING

RESIDENT

PARKING
PROPERTY LINE & R.O.W.

DRIVEWAY

RESIDENT PARKING
Van Accessible Parking Spaces 2
Standard Parking Spaces 15 (2 EV Included)
Total Parking Spaces 17
6’ High Stucco Perimeter Wall
On South, and East PL

PARKING AISLE
100’ - 0”
MUB

M M S FH
L
40’ 0”

CL OF STREET

FACE OF CURB

EXISTING METERS

ADJACENT

ONE STORY

AUTO SHOP
Vacant Lot to the East
north
UP
REFER TO SHEET S1 FOR

FOOTPRINTS OF ADJACENT

BUILDINGS
15' 0"
23’ - 0”
23’ - 0”
5' 0"
6’ 0”
15’-0”
55' 10 1/2"
74’ 0”
24' 0"
46’-0”
43' 4"

PROPOSED ENTRY AWNING
1’6”

TEXTURED CMU WALL

WITH ANTI-GRAFFITI COATING
NOTE: ALL CONSTRUCTION WILL COMPLY WITH THE FOLLOWING

GOVERNING CODES IN EFFECT AT THE TIME OF SUBMISSION OF
CONSTRUCTION DOCUMENTS FOR BUILDING PERMIT.

CURRENT GOVERNING CODES ARE:
2019 California Building Code (CBC),
2019 California Mechanical Code,
2019 California Plumbing Code,
2019 California Electrical Code,
2019 California Energy Code,
2019 California Green Building Standards Code (CALGreen) Santa Ana Municipal Code (SAMC).

BACKFLOW PREVENTER

TRANSFORMER
46’-0”
NOTE:

REFER TO SHEET E1
”ENGINEERED SITE PLAN” FOR TECHNICAL DATA, NOTATIONS, UTILITIES,

EV LOCATIONS & DIMENSIONS AND PUBLIC WORKS INFORMATION NOT

SHOWN HERE
TRASH
3-yard bin 83”Wx47”Dx53”H

RECYCLE
3-yard bin 83”Wx47”Dx53”H

ORGANICS
3-yard bin 83”Wx47”Dx53”H
2’ PARKING SPACE OVERHANG

OVER LANDSCAPE AREA
NOTE:

REFER TO SHEETS PL1 “LANDSCAPE CONCEPT PLAN” FOR HARDSCAPE

LOCATIONS, AND LANDSCAPE INFORMATION NOT SHOWN HERE

TTRANSFORMER PAD
4” ABOVE GRADE MAX.
15’ SIGHT DISTANCE TRIANGLE

BOTH SIDES OF DRIVEWAY EGRESS

NO OBSTRUCTIONS ABOVE
30” ABOVE GRADE ALLOWED

EXISTING WALL

TO REMAIN
56’ - 8”
36” LOW STUCCO PATIO WALL

City Council
23 –
75 10/17/2023

05/08/2023
1212 E FOURTH STREET SANTA ANA, CA
A03
0 4 8 16
SCALE: 1/8”=1'-0"

PLAN D PLAN C

PLAN BPLAN A

CORRIDOR

PLAN D PLAN C

PLAN BPLAN A

CORRIDOR ELEV

DECK DECK DECK DECK
Affordable Unit

FOURTH FLOOR PLAN ROOF PLAN

BUILDING PLANS & ROOF PLAN
DN
DN
UP DN
ELEV

PV PANELS

SECOND AND THIRD FLOOR PLAN
DN
UP DN
UP

ROOF HATCH

FOR ROOF ACCESS

ROOF HATCH
& FOLDING PULL DOWN STAIR

FOR ROOF ACCESS
6' 8 1/2"
8' 9 3/4"
Typical Dimensions for all decks

City Council
23 –
76 10/17/2023

05/08/2023
1212 E FOURTH STREET SANTA ANA, CA
A04
0 2 4 8
SCALE: 1/4”=1'-0"

UNIT PLANS

BEDROOM
DINING
LIVING
BATH
W/D
PLAN A - STUDIO 546 SF
16' 10"
5 3/4"
35' 6"
PLAN B - STUDIO 617 SF
2' 8"

BEDROOM
DINING
LIVING
BATH
W/D
PLAN C - 1BR + WFH OFFICE 1BA
734 SF
35' 6"
26' 8"
1' 0"

BEDROOM
LIVING
BATH
W/D
DINING

KITCHEN
OFFICE
LIN

DECKSTOR
32’-6”
25' 5"
6' 8 1/2"
8' 8 1/2"
PLAN D - 2BR 2BA 894 SF
BR 1
LIVING
BA 2W/D
DINING

KITCHEN
BR 2
LIN
DECK
DESK
6' 8 1/2"
8' 8 1/2"
BA 2
STOR
30' 4"

City Council
23 –
77 10/17/2023

05/08/2023
1212 E FOURTH STREET SANTA ANA, CA
25' 6 1/4"
1' 2 1/4"
33' 4 3/4"
A05
0 2 4 8
SCALE: 1/4”=1'-0"

UNIT PLANS

BEDROOM
DINING
LIVING
BATH

KITCHEN
PLAN E - 1BR 1BA 773 SF
W/D
PATIO
127sf
W.I.C.

City Council
23 –
78 10/17/2023

05/08/2023
1212 E FOURTH STREET SANTA ANA, CA
Signage Shown for Reference Only
Stucco
Cable Railing System Typ.

A06
0 2 4 8
SCALE: 1/4”=1'-0"
Stucco
Roof
Deck
Board Formed
Concrete Veneer
Wood Composite
Siding
Wood Composite
Siding
Board Formed
Concrete Veneer

NORTH ELEVATION (E FOURTH STREET)
FFLFFL
Vinyl frame windows Cement Board
Shiplap Siding
Brick Veneer
Metal Exit Door
Stucco at stair
tower

ELEVATIONS
36” Low Stucco Patio Wall
13’1” 10' 1" 10' 1"
T PL
FFL
T PL
FFL
T PL
FFLFG
Top of Elevator
Tower Beyond
Metal Exit Stairs
Metal Exit Gate
6’ Stucco Perimeter Wall
Metal Awning
51' 8 1/2"
58’ 9”
Stucco at Top Floor
10' 1"
T PL
FFL
Top of Parapet

City Council
23 –
79 10/17/2023

05/08/2023
1212 E FOURTH STREET SANTA ANA, CA

WEST ELEVATION
Signage Shown for Reference Only
Top of Tower Element
Stucco
Cable Railing System Typ.

A07
0 2 4 8
SCALE: 1/4”=1'-0"
Stucco
Roof
Deck
Board Formed
Concrete Veneer
Wood Composite
Siding
Wood Composite
Siding
Board Formed
Concrete Veneer
Vinyl frame windows
Cement Board
Shiplap Siding
Metal Louver Doors to Trash Room
& Utility Room
Stucco at stair
tower beyond
Brick Veneer
14' 3/4"
9' 5 3/4"

ELEVATIONS
Stucco at Fourth
Floor
Stucco
Example Art Mural
Metal Signage Lettering Cement Board
Shiplap Siding
13’1” 10' 1" 10' 1"
T PL
FFL
T PL
FFL
T PL
FFLFG
Top of Elevator Tower
51' 8 1/2"
58' 9"
10' 1"
T PL
FFL

City Council
23 –
80 10/17/2023

05/08/2023
1212 E FOURTH STREET SANTA ANA, CA

SOUTH ELEVATION
Signage Shown for Reference Only
Top of Tower Element
Stucco
Cable Railing System Typ.

A08
0 2 4 8
SCALE: 1/4”=1'-0"
Stucco
Roof
Deck
Board Formed
Concrete Veneer
Wood Composite
SidingStucco
Wood Composite
Siding
Vinyl frame
windows
Stucco at Building Base

ELEVATIONS
Cement Board
Shiplap Siding
Stucco at
Elevator Tower
13’1” 10' 1" 10' 1"
T PL
FFL
T PL
FFL
T PL
FFLFG
Top of Elevator
Tower
51' 8 1/2"
58' 7"
10' 1"
T PL
FFL
Metal Railing at Decks
Top of Parapet

City Council
23 –
81 10/17/2023

05/08/2023
1212 E FOURTH STREET SANTA ANA, CA

EAST ELEVATION
Signage Shown for Reference Only
Top of Tower Element
Stucco
Cable Railing System Typ.

A09
0 2 4 8
SCALE: 1/4”=1'-0"
Stucco
Roof
Deck
Board Formed
Concrete Veneer
Wood Composite
SidingStucco
Wood Composite
Siding
Board Formed
Concrete Veneer
Graffiti Resistant
Painted CMU at
Property Line Wall

ELEVATIONS
Stucco at
Elevator Tower
Example Art Mural
13’1” 10' 1" 10' 1"
T PL
FFL
T PL
FFL
T PL
FFLFG
Top of Elevator &
Stair Tower
51' 8 1/2"
58' 9"
10' 1"
T PL
FFL

City Council
23 –
82 10/17/2023

05/08/2023
1212 E FOURTH STREET SANTA ANA, CA
A10PERSPECTIVE 1 - STREET VIEW FROM 4TH STREET

City Council
23 –
83 10/17/2023

05/08/2023
1212 E FOURTH STREET SANTA ANA, CA
A11PERSPECTIVE 3 - AERIAL VIEW SOUTHWEST PL CORNER

City Council
23 –
84 10/17/2023

05/08/2023
1212 E FOURTH STREET SANTA ANA, CA
A12PERSPECTIVE 3 - STREET LEVEL AT E FOURTH STREET

City Council
23 –
85 10/17/2023

05/08/2023
1212 E FOURTH STREET SANTA ANA, CA
A13PERSPECTIVE 4 - VIEW AT E FOURTH STREET PROPERTY LINE

City Council
23 –
86 10/17/2023

LANDSCAPE DESIGN NOTES15' OPEN SITE LINE AT DRIVEWAY -PLANTING SHALL BE LESS THAN2FT TALL HERE TWO NEW STREET TREES TOMATCH EX. (24" BOX)

1. 2.

3. 4.

IRRIGATION SHALL BE WATER CONSERVING AND CONFORMTO THE STATE OF CALIFORNIA AB1881 MWELOREQUIREMENTS. - MAGNOLIA 'ST MARY'S'
PLANTS SHALL BE GROUPED INTO HYDROZONES WITHSIMILAR WATER NEEDS UTILIZING THE WUCOLS (WATERUSE CLASSIFICATION OF LANDSCAPE SPECIES) RATINGS.

TRANSFORMER CONCRETE PAD -6" MAX ABOVE FINISHED GRADE
LANDSCAPE DESIGN SHALL UTILIZE NATIVE OR DROUGHTTOLERANT PLANTS IN THE DESIGN COVERING A MINIMUMOF 75% OF LANDSCAPED AREAS.PROP TRANSFORMER - LOCATIONOUTSIDE OF SIGHT DISTANCE TRIANGLE STAIR NO INVASIVE SPECIES SHALL BE PLANTED ON SITE.INVASIVE SPECIES ARE THOSE DEFINED BY THECALIFORNIA INVASIVE PLANT COUNCIL (CAL-IPC) - FOUNDAT HTTPS://WWW.CAL-IPC.ORG/. 15'ENHANCED PAVING AT DRIVEWAYENTRANCE - PERMEABLE PAVERS (TYP)

LOBBY FIBERGLASS TROUGHSDEFINE BLDG ENTRANCE
PLAN E2' 5.

6. 7.

ALL LANDSCAPE AREAS SHALL HAVE A MINIMUM 3" COVEROF WOOD MULCH OR OTHER INORGANIC MATERIALS. 23'DRIVEWAY 36" HT LOW STUCCO WALLENCLOSED REISENTIAL PATIO LANDSCAPE DESIGN SHALL INCLUDE A HIGH EFFICIENCYIRRIGATION SYSTEM WITH SMART IRRIGATION CONTROLS. 4' BACKFLOW ASSEMBLY LANDSCAPE SHALL COMPLY WITH TZC SECTION 41-2022 (g)WHENEVER POSSIBLE.

BICYCLESTORAGESTAIREXISTING BLOCK WALL ON WESTERNPROPERTY LINE TO REMAIN

ELEVCORRIDOR

CONCRETE PAVING (TYP) UTILITY
VERTICAL EVERGREEN SHADE TREE (24" BOX)

PLAN CR PLAN C

PERMEABLE PAVERS (TYP)

LOW FOUNDATION PLANTING
- MELALEUCA QUINQUINERVIA- BRACHYCHITON POPULNEUS- LOPHOSTEMON CONFERTUS3'-6" PLANTING WIDTH ASPHALT PAVING (TYP)1'-6" PARKING SPACEOVERHANG (TYP)ASPHALT PAVING (TYP) DECORATIVE SPLIT-FACE BLOCKWALL WITH ANTI-GRAFFITICOATING ON SOUTH AND EASTPROPERTY LINESTWO COMPACT SPACES NO PARKING - TURNAROUND ZONELARGE DECIDUOUS SHADE TREE(36" BOX)

EV CHARGING STATION

VINES ON HORIZONTAL METAL PANELSATTACHED TO NEW BLOCK WALL INNARROW PLANTER - PISTACHIA CHINENSIS- ZELKOVA SERRATA

SITE PLAN
0' 4' 8' 16' 32'PREPARED UNDER THE DIRECTION OF LICENSEDLANDSCAPE ARCHITECT - MARK BEALL RLA #3640 PL-1

SANTA ANA, CA
12/14/202205/09/2023 REV LANDSCAPE CONCEPT
7033 W Sunset Blvd, Suite 216 Los Angeles, CA 90028-7525 Telephone: 323-683-1450 Email: info @ mbeall.com

City Council
23 –
87 10/17/2023

SCHEMATIC PLANT PALETTETREES HEIGHTAT 15YRS
WUCOLS H20

MATURE MATURECANOPY HEIGHT

SIZE BOTANICAL NAME COMMON NAME
24 " box Brachychiton populneus
24" box Lophostemon confertus
Bottle Tree L
M
M
L
30' 25'- 30' 35'- 40'
25' 20'- 25' 35'
Brisbane Box24" box Magnolia grandifolia 'St Mary's'
24" box Melaleuca quinquenervia
36" box Pistacia chinensis
St Mary's Southern Magnolia
Cajeput Tree
20' 20' 25'25' 20'- 25' 35'Chinese Pistache M
L
25'
30'
40' 40'36" box Zelkova serrata 'Green Vase' Saw Leaf Zelkova 50' 40'- 50' TALL SHRUBS15 gallon Cordyline australis 'Bronze'
15 gallon Laurus nobilis
15 gallon Myrsine africana
Bronze Australian Grass Tree
Bay Laurel
L
L

LENTRY ACCENT POTSVINES ON METAL SCREEN
African BoxwoodZELKOVA SERRATA (SAW LEAF ZELKOVA) MEDIUM SHRUBSBRACHYCHITON POPULNEUS (BOTTLE TREE) 5 gallon Olea europaea 'Dwarf'
5 gallon Rhapiolepis umbellata 'Minor'
Dwarf Olive L
LDwarf Yeddo HawthornMELALEUCA QUINQUENERVIA (CAJEPUT TREE) GRASSES AND ACCENTS2 gallon Dianella revoluta 'Little Rev' 5 gallon Lomandra longifolia 'Breeze'
5 gallon Muhlenbergia rigens
Little Rev Flax Lily L
LMat RushDeer Grass
Purple Heart
L
1 gallon Setcreasea 'Purple Heart'
M
SUCCULENTSENTRY TROUGH PLANTERS 5 gallon Aeonium 'Pseudotabliforme' 5 gallon Aloe barbadensis
1 gallon Sedum nussbaumerianum
5 gallon Senecio vitalis
Green Platters L
L
L
L
Yellow Torch Aloe
Copper StonecropNarrowleaf Chalksticks
VINES5 gallon Lonicera japonica
5 gallon Pandorea jasminoides 'Pink'
Sweet Honeysuckle
Pink Bower Vine
L
M

PISTACIA CHINENSIS (CHINESE PISTACHE)

LOPHOSTEMON CONFERTUS (BRISBANE BOX)

MAGNOLIA 'ST MARYS' (SOUTHERN MAGNOLIA)OLEA EUROPAEA 'LITTLE OLLIE' (DWARF OLIVE)

SETCREASEA PALLIDA 'PURPLE HEART' (PURPLE HEART)
CORDYLINE AUSTRALIS VAR. (CABBAGE TREE) PANDOREA JASMINOIDES 'PINK' (PINK BOWER VINE)

AEONIUM 'PSEUDOTABULIFORME' (GREEN PLATTERS)

RHAPHIOLEPIS UMBELLATA 'MINOR' (DWARF YEDDO HAWTHORN) ALOE BARBADENSIS 'YELLOW TORCH ALOE)

DIANELLA REVOLUTA 'LITTLE REV' (DWARF FLAX LILY) LOMANDRA LONGIFOLIA 'BREEZE' (MAT RUSH)

LAURUS NOBILIS (BAY LAUREL)

SENECIO VITALIS (BLUE CHALKSTICKS)

LONICERA JAPONICA (HONEYSUCKLE)MYRSINE AFRICANA (AFRICAN BOXWOOD) SEDUM NUSSBAUMERIANUM (COPPER STONECROP)

MUHLENBERGIA RIGENS (DEER GRASS)
PL-2

SANTA ANA, CA
12/14/2022

PLANT PALETTE & IMAGERY
7033 W Sunset Blvd, Suite 216 Los Angeles, CA 90028-7525 Telephone: 323-683-1450 Email: info @ mbeall.com

City Council
23 –
88 10/17/2023

1 RECORDING REQUESTED BY:

AND WHEN RECORDED MAIL TO:

DENSITY BONUS HOUSING AGREEMENT
(1212 E. Fourth Street, Santa Ana, California; APN: 398-385-02) T his DENSITY BONUS HOUSING AGREEMENT (“Agreement”), made and entered into this day of , 2023 (“Effective Date”), by and between the City of Santa Ana, a charter city and municipal corporation of the State of California (“City”), and Unison Real Estate Group, LLC, a California Limited Liability Company (“Developer”) . City and Developer are sometimes referred to collectively as the “Parties” and individually as a “Party.”

RECITALS
A. Developer is the own er of that certain property located within the City of Santa Ana, County of Orange, State of California, commonly known as 1212 E. Fourth Street, Santa Ana, California, 92701, and legally described as set forth in Exhibit A attached hereto and incorporated herein by this reference as if set forth in full (“Property”).

C. Santa Ana Municipal Code sections 41-1600, et seq. (“City Density Bonus for Affordable Housing”), and California Government Code sections 65915, et seq. (“State Density Bonus Law”), set forth a process to provide increased residential densities and incentives, concessions, and waivers to property owners or developers 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 housing 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.

D. The Project is proposing a total number of fifteen (15) residential rental units, including one (1) unit for very-low income households. Pursuant to California Government Code

City Council
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89 10/17/2023

2 Sections 65915 (p)(1)(A) and 65915 (p)(1)(B), the Project will provide seventeen ( 17) total onsite parking spaces or 1.1 spaces per unit at a ratio of one (1) stall for studio or one-bedroom units, and one and one -half (1.5) stalls for two -bedroom units . No additional parking concession is requested or provided.

F. In light of the purpose of the State Density Bonus Law and City Density Bonus for Affordable Housing , and the express provisions of Governme nt Code Sections 65915(d)(1)(2)(A) and 65915(e)(1) , the City has determined to grant Developer’s application for one (1) concession and four (4) waivers.

G. This Agreement, and the exhibits attached hereto and incorporated herein by reference, are intended to set forth the terms and conditions for the implementation of the Project’s requirement to provide affordable housing units in exchange for receiving the density bonus, concession and waivers set forth herein.

1. D EFINITIONS AND EXHIBITS

1.1 Definitions. In addition to the terms that may be defined elsewhere in this Agreement, the following terms when used in this Agreement shall be defined as follows:

1.1.1 "Adjusted for family size appropriate to the unit" shall have the meaning set forth by Health and Safety Code Section 50052.5(h).

1.1.2 "Affordable Rent" means the maximum Monthly Rent that may be charged to and paid by an Eligible Household for the Affordable Units, as required by the terms of this Agreement, and which shall not exceed one -twelfth (1/12) of the product of thirty percent (30%) times fifty percent (50%) times the Median Income for Orange County, as defined below in Section 1.1.19. The Affordable Rent shall be adjusted to reflect a reasonable utilities allowance for utilities paid by the household using the Santa Ana Housing Authority Multi -Family Housing Utility Allowance Schedule, and shall be updated no less than annually.

City Council
23 –
90 10/17/2023

1.1.5 "Agreement" means this Density Bonus Housing Agreement.

1.1.7 "City" means the City of Santa Ana, California

1.1.8 "City Council" means the City Council of the City of Santa Ana.

1.1.9 "City Attorney" means the City Attorney for the City of Santa Ana.

1.1.10 "City Manager" means the City Manager for the City of Santa Ana.

1.1.11 "City's Planning Commission" means the Planning Commission for the City of Santa Ana.

1.1.12 ''Density Bonus Housing Agreement Term" means the period during which this Agreement shall be in full force and effect, as provided for in Section 6.1 below.

1.1.14 "Developer" means Unison Real Estate Group, LLC, a California Limited Liability Company, and its permitted successors and assigns to all or any part of the Property , Project or this Agreement.

1.1.15 "Effective Date" means the date the Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement, pursuant to section 4.1 herein.

1.1.16 "Eligible Household" means a Household whose income does not exceed the qualifying limit for a “Very-Low Income Tenant” as defined herein.

1.1.17 “Extremely -Low Income Tenant” means persons and families whose income does not exceed thirty (30%) of the area median income for the Orange County, California PMSA, adjusted for household size, as published by HCD.

1.1.18 "Household" means all persons residing in a Unit.

1.1.19 "Median Income" means the Orange County, California area median income, adjusted for family size appropriate to the unit pursuant to California Health and Safety Code § 50052.5(h), as periodically published by HCD.

City Council
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91 10/17/2023

4 1.1.20 "Monthly Rent" means the total of monthly payments for : (a) use and occupancy of each Affordable Unit and land and facilities associated therewith; (b) any separately charged fees or service charges assessed by Developer which are required of all tenants, other than security deposits, application fees or credit check fees; (c) a reasonable allowance for an adequate level of service of utilities not included in (a) or (b) above, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuels, but not including telephone or cable service, to the extent applicable and charged to tenant; and, (d) possessory interest, taxes or other fees or charges assessed for use of the land and facilities associated therewith by a public or private entity other than Developer. In the event that certain utility charges are paid by the landlord rather than the tenant, no utility allowance shall be deducted from the rent for that type of utility charge.

1.1.21 "Project" means that certain affordable residential development as more particularly described in Recital B and Section 2 of this Agreement.

1.1.22 "Property" means that certain real property more particularly described in the legal description in Exhibit A and improvements thereon.

1.1.23 "State Density Bonus Law" means Government Code sections 65915, et seq., as they exist on the Effective Date.

1.1.24 "Unit" means a residential dwelling unit within the Project to be constructed or caused to be constructed by Developer pursuant to this Agreement.

1.1.25 "Unrestricted Units" means the Units within the Project to be constructed or caused to be constructed by Developer to a Household without restriction.

1.1.26 “Very-Low Income Tenant” means a Household whose income does not exceed fifty (50%) of the area median income for the Orange County, California PMSA, adjusted for household size, as published by HCD. Very-Low Income Tenant shall include a household that qualifies as an Extremely Low-Income Household.

1.2 Exhibits . The following documents are attached to, and by this reference made a part of, this Agreement:

1.2.1 Exhibit A – Legal Description of the Property

1.2.2 Exhibit B – Tenant Verification

1.2.3 Exhibit C – Annual Tenant Recertification

1.2.4 Exhibit D – Annual Rental Housing Compliance Report

1.2.5 Exhibit E – Notice of Affordability Restrictions on Transfer of Property

City Council
23 –
92 10/17/2023

5 2. DE VELOPMENT OF THE PROPERTY

2.2 Density Bonus. The Project shall have fifteen (15) Units, to be rented, occupied, operated, and maintained pursuant to the terms and conditions of this Agreement. Developer understands and agrees that Developer is utilizing a twenty -seven-and-a-half percent (27.5%) density bonus increase provided by the State Density Bonus Law (12 Base Units x 27.5% = 4 State Density Bonus Units) for a total of sixteen (16) units. However, Developer is only proposing fifteen (15) Units, so Developer shall not construct or develop, or otherwise claim a right to construct or develop any additional State and/or City Density Bonus Units on the Property.

2.3.2 Concession. In accordance with Government Code Section 65915(d)(1), Developer is granted a concession for relief from the requirement for ground floor retail or services, as set forth in Santa Ana Municipal Code § 41-2007.

2.3.3 Waivers. In accordance with Government Code Section 65915(e)(1), Developer is granted the following waivers:
(a) The height limitation set forth in Santa Ana Municipal Code § 41-2013(a) is waived to the extent the building height for this Project may be up to fifty-one (51) feet and nine (9) inches and four (4) stories.
(b) The maximum allowable building size and massing ratio set forth in Santa Ana Municipal Code § 41-2022(i)(5) are waived to the extent that the second through fourth floor will exceed the maximum allowable building size and massing ratio, and are 97.9 -percent of the ground floor’s volume.
(c) The open space requirements set forth in Santa Ana Municipal Code § 41- 2022(f) are waived such that the Project shall not be required to provide common open space in the form of a courtyard or in the front as a forecourt, and only five-hundred ninety-one (591) square feet of private open space will be required in the form of private decks for nine (9) Units. (d) The requirement for a landscape buffer set forth in Santa Ana Municipal Code § 41-2020(6) is w aived to the extent that a two (2) foot landscape buffer will be provided along the western property line, instead of the required five (5), and no landscape plan ters will be provided on the surface parking lot.

2.4 P arking Requirements. Onsite parking shall be provided in compliance with Government Code Sections 65915 (p)(1)(A) and 65915 (p)(1)(B). No parking concession is

City Council
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6 requested or provided. The Project will provide 17 total onsite parking spaces or 1.1 spaces per unit at a ratio of one (1) stall for studio or one-bedroom units, and one and one-half (1.5) stalls for two-bedroom units.

2.4 No Further Concessions , Incentives, or Waivers . Deve loper acknowledges and agrees that the concessions, incentive s, and waivers set forth in section 2.3, and the parking requirements set forth in section 2.4, above fully satisfies any duty City may have under the City Density Bonus for Affordable Housing, the Density Bonus Law, or any other law or regulation to provide any density bonus incentive or to waive any building, zoning, or other requirement in connection with a density bonus . By this Agreement, Developer releases any and all claims Developer may have against City in any way relating to or arising from City’s obligation to waive requirements of or provide development incentives pursuant to the City Density Bonus for Affordable Housing and the Density Bonus Law applicable to the Project.

2.5 Unrestricted Units. The Project, for purposes of this Agreement, may have no more than fourteen (14) Unrestricted Units comprised of six (6) studio units, five (5) one bed-room units and three (3) two-bedroom units. Any change to the unit distribution of the Unrestricted Units may affect the comparability of the Affordable Units and is subject to City Manager approval.

2.6 Affordable Units. The Project, for purposes of this Agreement, shall have no less than one (1) Unit, which shall be comprised of one (1) one-bedroom unit designated as an Affordable Unit pursuant to the terms and conditions of this Agreement. The Affordable Unit shall be consistent with all City approvals, comparable in bedroom distribution and amenities to the Unrestricted Units, and shall be located throughout the Project as required under Santa Ana Municipal Code section 41-1602(c)(5).

2.7 Minimum Development Standards for Affordable Units. The Affordable Unit shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as provided for any Unrestricted Units, regardless of whether such Unrestricted Units are in the Project.

2.8 Permits and Processing; Compliance with Laws . Developer, at its sole cost and expense, or as otherwise set forth in a separate written agreement , shall secure or cause to be secured any and all permits that may be required for development of the Project by City or any other federal, state, or local governmental entity having or claiming jurisdiction over the Property or Project. Upon securing any and all permits, and all necessary financing and property interests, Developer shall carry out and perform the development, operation, and maintenance of the Project or cause the performance of the development, operation, and maintenance of the Project, in conformity with all applicable federal, state, and local laws and regulations, and all conditions of approval issued by the City Council and City's Planning Commission for the Project. Any changes to the Project shall be reviewed by the City to determine compliance with this Agreement. If any changes to the Project shall materially alter the ability of Developer to comply with any terms of this Agreement in City’s sole determination, then City and Developer shall meet and confer to address amendments and revisions to this Agreement as necessary.

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7 2.9 Relocation Prior to Development of Project . If relocation is required prior to the completion of development of the Project, Developer shall have the sole and exclusive responsibility for providing relocation assistance and paying all relocation costs as may be required to comply with applicable federal and state laws and regulations. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and damages from any third party for relocation assistance, benefits and costs prior to the completion of the development of the Project.

2.11 Mechanic's Liens; Indemnification . Developer shall take all actions reasonably necessary to remove any future mechanic's liens or other similar liens (including design professional liens) against the Property or Project, or any part thereof, by reason of work, labor, services, or materials supplied or claimed to have been supplied to Developer or caused by, at the direction of, or on behalf of Developer. Prior to the recording of this Agreement (or memorandum thereof) pursuant to Section 4.1 below, Developer shall provide evidence from the Title Company of any new recordings against the Property or Project. City hereby reserves all rights to post notices of non-responsibility and any other notices as may be appropriate upon a filing of a mechanic's lien. In addition to any other indemnity provided by Developer under this Agreement, Developer shall indemnify, defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, conditioned or delayed and which may be joint defense counsel upon City's and Developer's consent), and hold harmless City and all of its officials, officers, employees, representatives, volunteers and agents from any and all alleged or actual claims, causes of action, liabilities, and da mages from any third party by reason of a mechanic's lien or work, labor, services, or materials supplied or claimed to have been supplied to Developer or caused by, at the direction of, or on behalf of Developer.

3. AF FORDABILITY

3.1 Total Affordability Term. Each Affordable Unit shall be restricted to use and occupancy by an Eligible Household for a total period of no less than fifty-five (55) years ("Total Affordability Term"). The Total Affordability Term for an Affordable Unit shall commence on the date that the building in which the Affordable Unit is located receives all required occupancy permits from the City.

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8 3.3 Levels of Affordability.

4. OP ERATION OF THE PROJECT BY DEVELOPER

4.1 Payment of Density Bonus Setup Fee . A Density Bonus Setup Fee in the amount of $2,768.25, will be charged to the Developer and must be paid prior to execution of this Agreement.

4.2 Recording of Documents. No later than issuance of building permits for the Project, Developer and the City shall record or cause to be recorded in the Official Records for Orange County, California, an executed original of this Agreement. City shall cooperate with Developer in promptly executing in recordable form this Agreement. The date of recording of the Agreement shall be the Effective Date of the Agreement. Upon the date of recording, the terms and conditions of this Agreement shall be binding upon and run with the Property for no longer than the Total Affordability Term, and the Project. It is the express intent and agreement between the Parties that this Agreement shall remain binding and enforceable against the Property, the Project, and the Units to ensure compliance with the State Density Bonus Law and City Density Bonus Law, and to ensure the continued supply of Affordable Units in the Project , except as expressly set forth in this Agreement.

4.2 Rental of Units. Upon the completion of construction of the Project and receipt by Developer of all required permits for the occupancy of the Units, Developer shall rent or cause to be rented each Affordable Unit for the Total Affordability Term for such Affordable Unit in accordance with the terms and conditions set forth in this Agreement, which provide among other terms and conditions for the rental of each Affordable Unit at an Affordable Rent to an Eligi ble Household for the Total Affordability Term.

4.4 Occupancy Levels. Subject to state or federal laws and regulations, the number of persons permitted to occupy each Affordable Unit shall not exceed two persons per bedroom, plus one person.

4.4.1 Written Notification . If an Eligible Household, during the terms of its tenancy, adds members that exceed the maximum occupancy allowed under this section, Developer shall provide written notification informing the household that: it is over - occupancy; has been placed on a waiting list for up to one-hundred and eighty (180) days; the expiration date of the waiting list; and the terms for terminating the lease. A written status update will be provided to the household at one -hundred and twenty (120) days , ninety (90) days, sixty (60) days and thirty (30) days if applicable.

4.5 Use of the Property. All uses conducted on the Property by Developer, including, without limitation, all activities undertaken by the Developer pursuant to this Agreement, shall

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9 conform to all applicable provisions of the Santa Ana Municipal Code and other applicable federal, state, and local laws, rules, and regulations. The Project shall at all times during the term of this Agreement be used as a rental housing complex and none of the Affordable Units in the Project, nor shall the Property or any portion thereof , ever be used as a hotel, motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest home, or be converted to condominium ownership. All of the community facilities and any social programs provided to the Project’s residents shall be available on an equal, nondiscriminatory basis to residents of all Units at the Project.

4.8 Selection of Tenants.

4.8.1 Developer shall be responsible for the selection of tenants for the Affordable Units in compliance with lawful and reasonable criteria and the requirements of this Agreement.

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10 deemed necessary. The waiting list will be maintained as an electronic file and available for audit by the City of Santa Ana in accordance with resident selection procedures as set forth herein.

4.8.4 Prior to the rental or lease of an Affordable Unit to a tenant(s), Developer shall require the tenant(s) to execute a written lease and to complete a Tenant Income Verification Form (in substantially the form attached hereto as Exhibit B) certifying that the tenant(s) occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility requirements established for the Affordable Unit. Developer shall verify the income of the tenant(s) as set forth herein.

4.9 Income Verification and Certification.

Developer shall make reasonable efforts to verify or cause to be verified that the income and asset statement provided by an applicant in an income certification is accurate by taking, at a minimum, at least one of the following steps as a part of the verification process: (1) obtain three months consecutive pay stubs for the most recent pay period, (2) obtain an income tax return for the most recent tax year, ( 3) obtain an income verification form from the applicant’s current employer, (4) 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 ( 5) if the applicant is unemployed and has no such tax return, obtain another form of independent verification.

4.9.1 Gross Household Income. Gross household income means all income from whatever source from all adult Household members, which is anticipated to be received during the 12-month period following the date of the determination of Gross Household Income. The applicable sources of income are defined in California Code of Regulations Title 25 Housing and Community Development Section 6914.

4.9.2 Annual Recertification. Developer agrees to recertify or cause to be recertified household eligibility annually. Notification of Annual Tenant Recertification shall be sent to the household in substantially the f orm attached hereto as Exhibit C . An Annual Rental Housing Compliance Report (“Annual Compliance Report”) shall be sent by Developer to the City in substantially the form attached hereto as Exhibit D for City’s review and approval. The Annual Compliance Report shall be due to the City within 30 days of the anniversary of the commencement of the Total Affordability Term, which is the date that each building receives all required occupancy permits from the City.

4.9.3 Continued Income Qualification and Vacated Affordable Units. If the annual recertification demonstrates that a previously Eligible Household’s gross household income exceeds the allowed Median Income for the Affordable Unit, the Developer will be considered in compliance with this agreement so long as one of the following pertinent actions from the following list is taken:
(a) The Developer may offer to rent the unit to the previously, but no longer, Eligible Household as an Unrestricted Unit without any limitations on rental rates. In that case, the Developer must then make available for rent to an

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11 Eligible Household another unit within the Project that meets the size and location requirements for Affordable Units under this Density Bonus Agreement. If there are no vacant units meeting those requirements, then the next available unit within the Project which does meet those requirements must be rented to an Eligible Household.
(b) If the no longer Eligible Household either moves to another Unrestricted Unit within the Project or leaves the Project altogether, then the vacated Affordable Unit, or, at Developer’s election, any other Unrestricted Unit within the Project which meets the size and location requirements for Affordable Units under this Density Bonus Housing Agreement and has the same number of bedrooms as the vacated unit, shall be rented as an Affordable Unit to an Eligible Household. (c) Developer may proceed to terminate the tenancy and pursue any and all remedies in accordance with law or contract.

4.10 Monitoring and Recordkeeping. Throughout the Term of this Agreement, Developer shall annually complete or cause to be completed and submit to City the Annual Compliance Report. Developer agrees to pay a reasonable fee, as set by City resolution , for the purpose of paying the actual cos ts associated with the City’s obligation to monitor Developer’s compliance with the affordability restrictions contained in this Agreement related to the Affordable Units, not to exceed monitoring costs for up to one (1) Affordable Units. Representatives of City shall be entitled to enter the Property if necessary after review of above documentation , upon at least forty-eight (48) hour notice, to monitor compliance with this Agreement, and shall be entitled to inspect the records of the Project relating to the Affordable Units and to conduct an independent audit or inspection of such records at a location within the City that is reasonably acceptable to the City without a fee from the City. Developer agrees to cooperate with City in making the Property and the records of the Project relating to the Affordable Unit reasonably available for such inspection or audit. Developer agrees to maintain or cause for the maintenance of each record of the Project for no less than five (5) years after creation of each such record.

4.11 N otice of Affordability Restrictions on Transfer of Property. In the event the Developer wishes to sell or transfer the Project, during the Total Affordability Term, the City and the Developer shall execute and deposit into escrow , a Notice of Affordability Restrictions on Transfer of the Property, to be executed by the City and Developer in a form substantially similar to Exhibit E, which is attached hereto and must be executed by the parties prior to any transfer of the Property.

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12 4.12 [Intentionally Reserved]

4.14 Emergency Evacuation Plan . Developer shall submit and obtain approval of an Emergency Evacuation Plan (the EEP) from City Police and Fire Protection agencies prior to issuance of a Certificate of Occupancy. Up -to-date 24-hour emergency contact information for the on-site personnel shall be provided to the City on an ongoing basis and the approved EEP shall be kept onsite and also be submitted to the following City Agencies:
(a) Police Department
(b) Fire Department
(c) Planning and Building Agency
(d) Community Development Agency

4.15 Crime Free Housing. Developer shall work with City staff to formalize a crime free housing policy, procedure, and design plan (the “CFH Plan”) , which includes the following provisions:
a. Requiring parking areas and common interior areas (lobbies, elevators, etc.) to contain security cameras;
b. Requiring routine unit inspections;
c. Ensuring lobby/other entrance doors are secured and accessed via remote controls, fobs, etc.; and
d. Have policies in place to ensure that common use areas such as hallways and trash enclosures are maintained in good condition and repair (e.g., well-lit, kept clean, etc.).

Developer shall submit and obtain approval from the City’s Planning and Building Agency (“PBA”) that the CFH Plan meets the requirements of this Subsection 4.15 prior to issuance of the Certificate of Occupancy . The approved CFH Plan shall be implemented and administered by Developer or its designated property manager.

4.16 Onsite Parking Management Plan . Developer shall provide onsite parking for residents and visitors of the Project and actively monitor the parking demand of the Project site.

Developer shall continually monitor and take the following measures to manage the parking demand of the Project site to mitigate the use of offsite parking spaces on private or public properties and/or right-of-way.
a. Requiring onsite parking permits (such as stickers or hang-tags) for any parking in the onsite parking spaces for both residents and guests;
b. Policies for maximum time vehicles may be parked in the surface parking spaces, including any guest parking; and
c. Policies for towing unauthorized vehicles, vehicles parked in unauthorized locations (such as fire lanes), vehicles parking in surface guest parking without a sticker, hang-tag, or other identifiers, and vehicles parked longer than any maximum guest parking timeframes allowed.

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13 Prior to issuance of the Certificate of Occupancy, Developer shall submit and obtai n approval from the PBA a Parking Management Plan (the “PMP”) including those measures above.

The approved PMP shall be adhered to and be enforced by the Project at all times.

4.17 Marketing and Resident Selection Plan. Each Affordable Unit shall be leased to Eligible Households selected by Developer who meet all of the requirements provided herein.

4.17.1 The Marketing Program shall include, but is not limited to, marketing and community outreach activities, proposed tenant selection criteria, occupancy standards, income requirements, timeline and details for outreach and marketing, data collection, record keeping and monitoring, procedures for complaints, and compliance assessment.

Components of the resident selection plan shall include, but are not limited to, the application process, interview procedure, apartment offer and assignment, rejected applications, and wait list management. All requirements set forth herein shall be incorporated in the Marketing Program.

5. [ INTENTIONALLY RESERVED]

6. TER M OF THIS AGREEMENT

7. DE FAULT AND TERMINATION; INDEMNIFICATION

7.1 Default. Failure or delay by any Party to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of notice from the other Party specifying the default (or such other period specifically provided herein) , constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting Party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion within an additional sixty (60) days following the conclusion of such thirty (30) day period (for a total of ninety (90) days). Except as required to protect against further damages, the injured Party may not institute proceedings against the Party in default until the time for cure has expired. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default.

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14 7.2 Rights and Remedies Cumulative. The rights and remedies of the Parties are cumulative, and the exercise by either Party of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party . Notwithstanding anything to the contrary contained in this Agreement, in no event shall either Party be liable for speculative, consequential, punitive or other indirect damages, and each Party waives any right to collect speculative, consequential, punitive or other indirect damages against the other Party.

7.3 Indemnification. In addition to any other indemnity specifically provided in this Agreement, Developer agrees to defend (with counsel of City's choosing and the consent of Developer, which shall not be unreasonably withheld, conditioned or delayed and which may be joint defense counsel upon City's and Developer's consent) indemnify and hold harmless City and its respective officers, officials, agents, employees, representatives, and volunteers (collectively, "Indemnitees") from and against any loss, liability, claim, or judgment arising from any act or omission of Developer in connection with its obligations under this Agreement, except to the extent caused by the negligence or willful misconduct of Indemnitees.

8. AS SIGNMENT; COVENANT S RUN WITH THE LAND

8.1 Assignment by Developer.

8.1.1 Prohibited Transfers or Assignments. Except as authorized in this Section or Section 8.1.2 below, Developer shall not sell, transfer, or assign the Property or Project in whole or in part, or transfer or assign Developer's rights and obligations in this Agreement, in whole or in part, without City's prior written approval, which shall not be unreasonably withheld, conditioned or delayed (“Permitted Transfer”); provided, however, Developer shall have the right without City’s prior written approval to transfer or assign the Property, Project and/or Developer’s rights and obligations in this Agreement to any entity that is controlled by, or is under common control with, Developer , and Developer shall thereafter be released from any future obligations under this Agreement. In connection with Permitted Transfer, Developer shall: (i) notify City in writing of the sale, transfer, or assignment of all or any portion of the Property, and (ii) deliver to City an assignment and assumption agreement (or other agreement) in a form approved by City in its reasonable discretion and executed by Developer and its transferee/assignee pursuant to which Developer's transferee/assignee assumes all of Developer's covenants and obligations set forth herein with respect to the Property or the portion thereof so transferred. Any request for transfer or assignment of the Agreement by Developer shall require the payment of fees or a deposit to compensate the City for approximate expenses incurred by Developer to City, as applicable, for the City’s review of the request. Upon the delivery of the assignment and assumption agreement as provided for above for a Permitted Transfer, or in the event of a sale of the Property as provided for in Section 8.1.1, Developer shall be released from any future obligations under this Agreement.

8.1.2 Sale of Property . Owner agrees and declares that the Property and the Project shall be held, conveyed, mortgaged, encumbered, leased, rented, used, occupied, operated, sold, and approved subject to all obligations set forth or incorporated in this Agreement, all of which are for the purpose of enhancing and protecting the value and attractiveness of the Property and the Project. All of the obligations set forth or incorporated in this Agreement shall constitute

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8.1.3 Subsequent Assignment. As used in this Agreement, the term "Developer" shall be deemed to include any such transferee or assignee after the date su ch sale, transfer, or assignment occurs in compliance with this Agreement.

8.2 Covenants Run with the Land. The Property shall be used, occupied and improved subject to the covenants, conditions, and restrictions set forth herein. The covenants, conditions, restrictions, reservations, equitable servitudes, liens and charges set forth in this Agreement shall run with the Property and shall be binding upon Developer and all persons having any right, ti tle or interest in the Property, or any part thereof, their heirs, and successive owners and assigns, shall inure to the benefit of City and its successors and assigns, and may be enforced by City and its successors and assigns. The covenants established i n this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of City and its successors and assigns, and the parties hereto expressly agree that this Agreement and the covenants herein shall run in favor of City . City is deemed the beneficiary of the terms and provisions of this Agreement and of the covenants running with the land, for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit this Agreement and the covenants running with the land have been provided. Developer hereby declares its understanding and intent that the burden of the covenants set forth herein touch and concern the land and that the Developer's interest in the Property is rendered less valuable thereby. Developer hereby further declares its understanding and intent that the agreement provides a public benefit in furtherance of benefit of such covenants touch and concern the land by enhancing and increasing the enjoyment and use of the Property by the citizens of City and by furthering the health, safety, and welfare of the residents of City.

9. M ISCELLANEOUS

9.1 Entire Agreement. This Agreement and all of its exhibits and attachments set forth and contain the entire understanding and agreement of the parties with respect to the density bonus of the Project, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein.

No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement.

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16 9.2 Amendment . Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance approved by the City Council, or through the City Manager as detailed herein, and signed on behalf of each party. The City Manager shall have the authority to make approvals, issue interpretations, execute documents, waive provisions, and/or enter into amendments of this Agreement on behalf of City that further the intent of this Agreement. Any requested alteration, change or modification of the Agreement by Developer shall require the payment of fees or deposit by Developer to City, as applicable, for the City’s review of the request. Each alteration, change, or modification to this Agreement shall be recorded against the Property in the Official Records of Orange County, California.

9.3 Notices.

If to City: City of Santa Ana
C ommunity Development Agency
20 Civic Center Plaza (M-26)
P.0. Box 1988
Santa Ana, California 92702
Attention: Housing Manager
With a copy to: Office of the City Attorney
City of Santa Ana
20 Civic Center Plaza, 7th Floor (M-29)
Santa Ana, California 92702
If to Developer: Unison Real Estate Group, LLC
18952 MacArthur Blvd Suite 210
Irvine, CA 92612

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17 Attention: Oscar Uranga

9.4 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to th e extent such remaining provisions are not rendered impractical to perform, taking into consideration the purposes of this Agreement.

9.5 Interpretation and Governing Law . This Agreement and any dispute hereunder shall be governed and interpreted in acco rdance with the laws of the State of California without regard to conflict of law principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof.

9.6 Section Headings . All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

9.9 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

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18 9.12 Non-Discrimination. 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 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 federal, state and local laws and regulations.

9.13 Third Party Beneficiaries. No person or entity, other than City and Developer shall have any right of action based upon any provision of this Agreement.

9.14 Force Majeure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, pandemics as declared by federal, state, or local emergency resolution, wars, riots or similar hostilities, strikes and other labor difficulties beyond the Party's control (including the Party's employment force), court actions (such as restraining orders or injunctions), or other causes beyond the Party's control, including delays by any governmental entity (although the City may not benefit from this provision for a delay that results from City 's failure to perform its obligations under this Agreement), or an insurance company of either party.

9.18 Jurisdiction and Venue . Any action at law or in equity under this Agreement or brought by a Party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Orange, State of California, and the Parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court.

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19 9.19 Project as a Private Undertaking . It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relati onship between City and Developer is that of a government entity regulating the development of private property and the Developer of such property.

9.20 Further Actions and Instruments . Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and in the satisfaction of the Project and conditions of this Agreement. Upon the request of either Party at any time, the other Party shal l promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or the Project or to evidence or consummate the transactions contemplated by this Agreement. City hereby authorizes City Manager to take such other actions and negotiate and execute any additional agreements or amendments to this agreement as may be reasonably necessary or proper to fulfill the City's obligations under this Agreement. T he City Manager may delegate her or his powers and duties under this Agreement to an authorized management level employee of the City.

9.21 Estoppel Certificate. Within ten (10) business days following a written request by any of the Parties, the other Party shall execute and deliver to the requesting Party a statement certifying that (i) either this Agreement is unmodified and in full force and effect or there have been specified (date and nature) modifications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Agreement or that the responding Party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without modification , except as may be represented by the requesting Party , and that there are no uncured defaults in the performance of the requesting Party , except as may be represented by the requesting Party.

9.22 No Subordination. City's approval of the necessary land use entitlements that authorize Developer to develop, operate, and maintain the Project was based upon Developer's obligation to provide the Affordable Units pursuant to the State Density Bonus Law, City Density Bonus for Affordable Housing, and the terms and conditions of this Agreement. For the Term of the Density Bonus Housing Agreement, this Agreement shall have priority over any and all mortgages, deeds of trust, and other similar forms of secured financing recorded against the Property or any portion thereof. Developer expressly understands and acknowledges that state law requires preservation of affordability covenants in connection with the approval of this density bonus project.

9.23 Attorneys' Fees and Costs. If either Party to this Agreement commences an action against the other Party to this Agreement arising out of or in connection with this Agreement, the

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20 prevailing Party shall be entitled to recover reasonable attorneys' fees, expert witness fees, co sts of investigation, and costs of suit from the losing Party.

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IN WITNESS WHEREOF, the parties hereto have caused this Density Bonus Housing Agreement to be executed on the date set forth at the beginning of this Agreement.

ATTEST:

Jennifer L. Hall
Clerk of the Council

APPROVED AS TO FORM
John Funk
Chief Assistant City Attorney
�1wr� By:

CITY OF SANTA ANA
Kristine Ridge
City Manager
RECOMMENDED FOR APPROVAL: UNISON REAL ESTATE GROUP, LLC Michael Garcia
Executive Director
Community Development Agency
�
Oscar Uranga
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22 EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY

REAL PROPERTY IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

L
OTS 3 AND 4 IN BLOCK "A" OF "SANTA ANA INVESTMENT COMPANY TRACT NO. 1 HUMPHREY'S ADDITION TO SANTA ANA", IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 11, PAGE 39 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA.

APN: 398-385-02

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EXHIBIT “B”
Income Verification Form Page 1
Santa Ana, California

INCOME VERIFICATION FORM
Inclusionary Unit Address: ________________________________________________________________ Head of Household (Print Name):

Current Address (if
different from above):

Telephone Number: Home: Work: Cell:

Email address:

Date of Birth: Social Security # or TIN:

Household Composition
List All Household Members Living in the Inclusionary Unit Name Sex Age
Dependent
(Y/N)
Social Security #
or Taxpayer ID #
List additional household members on a separate sheet of paper.

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EXHIBIT “B”
Income Verification Form Page 2
Santa Ana, California

INCOME VERIFICATION FORM
Monthly Gross Income *
List All Sources of Income of All Household Members Living in the Inclusionary Unit Part 1: Earned Income
Head of
Household
Other
Household
Members Total

1. Gross wages, before payroll deductions and
including overtime pay, commissions, fees, tips
and bonuses.
$ $ $

2. Net income from self employment, independent
contractor work or a business.
$ $ $

3. Social security and any payments from annuities,
insurance policies, pension/retirement funds,
disability or death benefits received periodically.
$ $ $

4. Payment in lieu of earnings, such as
unemployment, disability compensation, worker’s
compensation and severance pay.
$ $ $

5. Public assistance, welfare payments $ $ $

6. Alimony, child support, other periodic allowances $ $ $

7. Regular pay, special pay and allowances of
members of the Armed Forces
$ $ $

8. Other $ $ $
Subtotal: Monthly Earned Income $
Total Monthly Earned Income x 12 = $_______________ Total Annual Household Gross Earned Income

City Council
23 –
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10/17/2023

EXHIBIT “B”
Income Verification Form Page 3
Santa Ana, California

INCOME VERIFICATION FORM
Monthly Gross Income *
List All Sources of Income of All Household Members Living in the Inclusionary Unit Part 2: Investment Income
Head of
Household
Other Adult
Household
Members
Total
Household
Investment
Income

1. Interest paid on Bank and Savings accounts $ $ $

2. Dividends and other payments from stocks and
bonds
$ $ $

3. Income from real property (i.e. rental property) $ $ $

4. Other (describe) $ $ $
Subtotal: Monthly Investment Income: $
Total Monthly Investment Income x 12 = $_______________ Total Annual Household Investment Income *Note: The following items are not considered income: casual or sporadic gifts; amounts specifically for or in reimbursement of medical expenses; lump sum payments such as inheritances, insurance payments, capital gains and settlement for personal or property losses; educational scholarships paid directly to the student or educational institution; special pay to a serviceman head of family away from home and under hostile fire; relocation payments under federal, state or local law; foster child care payments; value of coupon allotments for purpose of food under Food Stamp Act of 1964 which is in excess of amount actually charged the eligible household; payments received pursuant to participation in the following programs: VISTA, Service Learning Programs, and Special Volunteer Programs, SCORE, ACE, Retired Senior Volunteer Program, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to Assist Small Business Experience.

City Council
23 –
113
10/17/2023

EXHIBIT “B”
Income Verification Form Page 4
Santa Ana, California

INCOME VERIFICATION FORM
Assets **
List the Current Value of All Assets of All Household Members Living in the Inclusionary Unit If the Asset generates income, that income must be specified In Part 2 above Head of
Household
Other Adult
Household
Members Total Value of
Assets Value Value

1. Bank and Savings accounts $ $ $

2. Stocks and bonds $ $ $

3. Real property (i.e. rental property) $ $ $

4. Other (describe) $ $ $
Total Asset Value $______________________
**Note: Necessary items, such as furniture and automobiles, used for personal use are excluded from household assets. Collections of items for hobby, investment or business purposes must be included in household assets. If the total value of household assets exceeds $5,000, the calculation of the household’s annual income shall include the greater of the actual amount of income, if any, derived from all of the household assets; or 10% of the total value of the assets.

City Council
23 –
114
10/17/2023

EXHIBIT “B”
Income Verification Form Page 5
Santa Ana, California

INCOME VERIFICATION FORM
If the total asset value exceeds $5,000, perform the calculations in the following table. If the total asset value is less than $5,000, the amount of investment income to be included in annual household income is $0.

Calculation of Investment Income to be Included in Annual Household Income

1. Total Annual Household Investment Income $

2. Total Asset Value $ x 10% $
The Greater of #1 or #2 = Investment Income to be Included in Annual Household Income $___________ Calculation of the Household’s Total Annual Income
Total Annual Household Gross Earned Income $
Total Investment Income to be Included in Annual Household Income $ Total Household Income $
Documentation
Attach True Copies of the Relevant Documents Listed Below Paycheck stubs from three most recent
pay periods Bank/Savings account verification
Employment verification Self-employment verification
Three years Income tax returns for Title
Holders Unemployment verification
Social security verification Welfare verification
Alimony/child support verification Disability income verification Other (Describe)

City Council
23 –
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10/17/2023

EXHIBIT “B”
Affidavit Page 6
Santa Ana, California

AFFIDAVIT
This Affidavit is made with the knowledge that it will be relied upon by _____________ and the City of Santa Ana to determine maximum income for eligibility to purchase the Inclusionary Unit listed above. (I/we) warrant that all information set forth in this document is true, correct and complete and based upon information (I/we) deem reliable and based upon such investigation as (I/we) deemed necessary. (I/We) acknowledge that (I/we) have been advised that the making of any misrepresentation or misstatement in this affidavit will constitute a material breach of (my/our) purchase agreement and will additionally enable the seller to terminate the purchase contract and sell the Inclusionary Unit to another party. (I/We) do hereby swear under penalty of perjury that the foregoing statements are true and correct and that this affidavit has been executed as of the date specified below by each adult member of the household which intends to occupy an Inclusionary Unit located at ______________________ ,Santa Ana, California.

Signature Date
Printed Name
Executed at __________________________________, Santa Ana, California Signature Date
Printed Name
Executed at __________________________________, Santa Ana, California

City Council
23 –
116
10/17/2023

ATTACHMENT C-2

ANNUAL TENANT INCOME VERIFICATION FORM
Administrative Procedures Manual
Rental Residential Development
April 27, 2023
Exhibit C

City Council
23 –
117
10/17/2023

TENANT INCOME VERIFICATION FORM
2021 AFFORDABLE HOUSING OPPORTUNITY AND CREATION ORDINANCE

CITY OF SANTA ANA
Table 1: Annual Household Gross Earned Income 1
List All Sources of Earned Income for all Adult Household Members Living in the lnclusionary Unit Other Adult
Head of Household
Household Members Total

1. Gross amount, before payroll deductions of $ $ $
wages, salaries, overtime pay, commissions,
fees, tips and bonuses

2. Net income from business $ $ $

3. Social security, annuities, insurance policies, $ $ $ pension/retirement funds, disability or
death benefits received periodically

4. Payment in lieu of earnings, such as $ $ $
unemployment, disability compensation,
worker's compensation and severance pay

5. Public assistance, welfare payments $ $ $

6. Alimony, child support, other periodic $ $ $
allowances

7. Regular pay, special pay and allowances of $ $ $
members of the Armed Forces

8. Other $ $ $
Subtotal: Monthly Earned Income $
Total Monthly Earned Income x 12 = $ Total Annual Household Gross Earned Income 1 The following items are not considered income: casual or sporadic gifts; amounts specifically for or in reimbursement of medical expenses; lump sum payments such as inheritances, insurance payments, capital gains and settlement for personal or property losses; educational scholarships paid directly to the student or educational institution; special pay to a serviceman head of family away from home and under hostlle fire; relocation payments under federal, state or local law; foster child care payments; value of coupon allotments for purpose of food under Food Stamp Act of 1964 which is in excess of amount actually charged the eligible household; payments received pursuant to participation in the following programs: VISTA, Service Learning Programs, and Special Volunteer Programs, SCORE, ACE, Retired Senior Volunteer Program, Foster Grandparent Program, Older American Community Services Program, and National Volunteer Program to Assist Small Business Experience.

Administrative Procedures Manual
Rental Residential Development

Page 1 ends

April 27, 2023

City Council
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10/17/2023

Table 2A: Household Assets 2
list the Value of All Assets Owned by all Adult Household Members Living in the lnclusionary Unit Other Adult
Head of Household Return@ 10%
Household Members Total of Total

1. Bank & savings accounts $ $ $ $

2. Stocks and bonds $ $ $ $

3. Real property $ $ $ $

4. Other $ $ $ $
Table 2B: Income Earned Annually from Household Assets
List the Actual Annual Return on All Assets
Owned by all Adult Household Members Living in the lnclusionary Unit Other Adult
Head of Household
Household Members Total

1. Bank and savings accounts $ $ $

2. Stocks and bonds $ $ $

3. Real property $ $ $

4. Other $ $ $
The return on Household assets to be included in the Gross Income calculation is set at the greater of the two amounts shown on the following page:
2 Necessary items, such as furniture and automobiles, used for personal use are excluded from household assets.

Collections of items for hobby, investment or business purposes must be included in household assets. Under California Government Code Section 6914, if the total value of household assets exceeds $5,000, the calculation of the household's annual income shall include the greater of the actual amount of income, if any, derived from all of the household assets; or 10% of the total value of the assets.

Tenant Income Verification Form
Administrative Procedures Manual: Rental Housing Development

Page 2 ends

April 27, 2023

City Council
23 –
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10/17/2023

Table 2C Annual Asset Income to be Added to Annual Household Gross Earned Income 10%Annual Return to be
Return Actual Return Applied

1. Bank and savings accounts $ $ $

2. Stocks and bonds $ $ $

3. Real property $ $ $

4. Other $ $ $
Total Annual Return to be Added to Annual Household Gross Earned Income $ The total Gross Household Income is equal to the sum of the following:

Table 3:

Calculation of the Household's Total Annual Gross Income Annual Household Gross Earned Income (Table 1)
Annual Asset Income (Table 2C)
Total Annual Household Gross Income
Income Documentation
$
$
$
Attach True Copies of the Relevant Documents Listed Below Paycheck stubs from two most recent
pay periods Bank/Savings account verification
Employment verification
Income tax return
Social security verification
Alimony/child support verification
other (Describe)
Tenant Income Verification Form
Administrative Procedures Manual: Rental Housing Development Self-employment verification
Unemployment verification
Welfare verification
Disability income verification

Page 3 ends

April 27, 2023

City Council
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10/17/2023

AFFIDAVIT
This Affidavit is made with the knowledge that it will be relied upon by the _____ City of Santa Ana, our landlord and the owner of our apartment building, to determine maximum income for eligibility. (I/we) warrant that all information set forth in this document is true, correct and complete and based upon information (I/we) deem reliable and based upon such investigation as (I/we) deemed necessary.
(I/We) acknowledge that (I/we) have been advised that the making of any misrepresentation or misstatement in this affidavit will constitute a material breach of (my/our) rental agreement with the property owner to rent the unit and will additionally enable the property owner to initiate and pursue all applicable legal and equitable remedies with respect to the unit and to me/us. (I/We) do hereby swear under penalty of perjury that the foregoi ng statements are true and correct and that this affidavit has been executed as of the date specified below by each adult member of the household which intends to occupy an lnclusionary Unit located at __________ ,Santa Ana, California.

Signature Date
Printed Name
Executed at ______________ __, Santa Ana, California
Signature Date
Printed Name
Executed at ______________ __, Santa Ana, California
Tenant Income Verification Form
Administrative Procedures Manual: Rental Housing Development

Page 1 ends

April 27, 2023

City Council
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121
10/17/2023

ATTACHMENT C-3

NO INCOME CERTIFICATION
Administrative Procedures Manual
Rental Residential Development
April 27, 2023

City Council
23 –
122
10/17/2023

NO INCOME CERTIFICATION FOR

HOUSEHOLD MEMBER
I, ______________ (NAME) certify that as of
________ (DATE), I am not receiving any type of income including, but not limited to, wages and salaries, overtime pay, commissions, fees, tips, bonuses, or any other compensation for personal services, net income from the operation of a business or profession, diVidends or interest, net income from any kind of real or personal property, Social Security, annuities, retirement funds, pensions, death or disability benefits, unemployment or disability compensation, workers compensation, severance pay, welfare or other public assistance, alimony, or child support.

By this Certification, I declare under penalty of perjury that all of the foregoing information is true and correct. Misrepresentation or misstatement may be a violation of law that could result in a fine, criminal penalty or a default on the lnclusionary Housing Regulatory Agreement made in conjunction with the rental of this lnclusionary Unit.

Signature
Print Name
Date
Administrative Procedures Manual
Rental Residentlal Development

Page 1 ends

April 27, 2023

City Council
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123
10/17/2023

Project Name: Date:

Project Address: Reporting Period:

Total Number of Units in the Project: Number of Very Low Income Units:

Compliance Report Completed By:

Phone Number:

Unit #
Household
Name
Household
Size
Household
Income
Number of
Bedrooms Gross Rent
Utility
Allowance
Other
Mandatory
Payments Net Rent
Date First
Occupied
Date of Last
Income
Recertification

CITY OF SANTA ANA

ANNUAL RENTAL RESIDENTIAL DEVELOPMENT COMPLIANCE REPORT Calculation of Net Monthly Rent
Minus:
2021 AFFORDABLE HOUSING OPPORTUNITY AND CREATION ORDINANCE Administrative Procedures Manual:

Rental Residential Development

Page 1 ends

8/22/2023
Exhibit D

City Council
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10/17/2023

Administrative Procedures Manual:

Rental Residential Development

Page 2 ends

8/22/2023

City Council
23 –
125
10/17/2023

EXHIBIT E
NO

TICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY NOT
ICE IS HEREBY GIVEN that the CITY OF SANTA ANA, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California, has entered into a Density Bonus Agreement with Unison Real Estate Group, a California Limited Liability Company (“Property Owner”). The Density Bonus Agreement imposes income and affordability covenants for an affordable housing project with fifteen (15) units (“Project”) located at 1212 E. Fourth Street, Santa Ana, Orange County, Assessor’s Parcel Number 398-385- 02, and further described in the legal description provided in Exhibit A to the Density Bonus Agreement.

The Density Bonus Agreement was recorded as Document/Instrument Number [TO BE INSERTED], and shall remain in effect until fifty five (55) years from the date a certificate of occupancy is issued for all units in the Project. Among other things, the Density Bonus Agreement requires as follows: (a) one (1) one-bedroom unit (the “Affordable Unit”) shall be restricted for occupancy to a household that qualifies as a “Very-Low Income Tenant,” which is defined to mean a household whose income does not exceed fifty (50%) of the area median income for the Orange County, California PMSA, adjusted for household size, and (b) the rent for the Affordable Unit shall not exceed one-twelfth (1/12) of the product of thirty percent (30%) times fifty percent (50%) times the Median Income for Orange County, as adjusted to reflect a reasonable utilities allowance.

I
n the event the Property Owner wishes to sell or transfer the Project during the Affordability Period, the City and the Property Owner shall execute and deposit into escrow this Notice of Affordability Covenants on Transfer of the Property. The sale or transfer of the Property shall not be effective unless and until the City and transferee execute the documents necessary to transfer the Density Bonus Agreement obligations from the Property Owner to the transferee.

This Notice of Affordability Covenants on Transfer of the Property in no way modifies the provisions of the Density Bonus Agreement. In the event of any conflict between this Notice of Affordability Covenants on Transfer of the Property and the Density Bonus Agreement, the terms of the Density Bonus Agreement shall prevail.

I
N WITNESS WHEREOF, the Parties hereto have duly executed this Notice of Affordability Restrictions on Transfer of Property as of the dates set forth below. [
Signatures on Following Pages]

City Council
23 –
126
10/17/2023

SIGNATURE PAGE
TO

NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY CITY:

CITY OF SANTA ANA
A California Charter City and Municipal
Corporation
By: _______________________
Name: Kristine Ridge
Its: City Manager_____________
Date: ________________________
APPROVED AS TO LEGAL FORM:

By: ________________________

City Council
23 –
127
10/17/2023

SIGNATURE PAGE
TO

NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY PROPERTY OWNER:

UNISON REAL ESTATE GROUP

A LIMITED LIABILITY COMPANY
By:_______________________
Name: Oscar Uranga
Its:

D
ate: ________________________

City Council
23 –
128
10/17/2023

Density Bonus Agreement Application No. 2023-01, “4th and Grand” 1212 E. Fourth Street
The 2010 Transit Zoning Code EIR and Technical Appendices are available online at:
https://www.santa-ana.org/environmental-impact-report-transit-zoning-code/ Or by visiting:

Planning and Building Agency – Planning Division Public Counter 20 Civic Center Plaza
Santa Ana, CA 92701
Exhibit 10 – 2010 Transit Zoning Code EIR

City Council
23 –
129
10/17/2023

O R A N G E C O U N T Y R E P O R T E R
OR#
~SINCE 1921~
To the right is a copy of the notice you sent to us for publication in the ORANGE COUNTY REPORTER. Thank you for using our newspaper. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are):

Daily Journal Corporation
Serving your legal advertising needs throughout California.

Mailing Address : 600 W SANTA ANA BLVD STE 812, SANTA ANA, CA 92701 Telephone (714) 543-2027 / Fax (714) 542-6841
Visit us @ www.LegalAdstore.com

NUVIA OCAMPO

CITY OF SANTA ANA/PLANNING & BUILDING AGENCY
20 CIVIC CENTER PLAZA 2ND FLR
SANTA ANA, CA 92702

GPN GOVT PUBLIC NOTICE
1212 E Fourth Street
08/16/2023
Publication
Total
$124.00
$124.00
ORANGE COUNTY REPORTER, SANTA ANA (714) 543-2027
BUSINESS JOURNAL, RIVERSIDE (951) 784-0111
DAILY COMMERCE, LOS ANGELES (213) 229-5300
LOS ANGELES DAILY JOURNAL, LOS ANGELES (213) 229-5300
SAN FRANCISCO DAILY JOURNAL, SAN FRANCISCO (800) 640-4829 SAN JOSE POST-RECORD, SAN JOSE (408) 287-4866
THE DAILY RECORDER, SACRAMENTO (916) 444-2355
THE DAILY TRANSCRIPT, SAN DIEGO (619) 232-3486
THE INTER-CITY EXPRESS, OAKLAND (510) 272-4747
Notice Type:

Ad Description

COPY OF NOTICE
3730166
!A000006382797!
The charge(s) for this order is as follows. An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice.

NOTICE OF PUBLIC HEARING

BEFORE THE SANTA ANA PLANNING

COMMISSION
The City of Santa Ana encourages the
public to participate in the decision-
making process. We encourage you to
contact us prior to the Public Hearing if
you have any questions .

Planning Commission Action
: The
Planning Commission will hold a Public
Hearing to receive public testimony, and
will take action on the item described
below. Decision on this matter will be final
unless appealed within 10 calendar days
of the decision by any interested party or
group.

Project Location
: 1212 East Fourth
Street located within the Corridor (CDR)
district of the Transit Zoning
Code/Specific Development No. 84
(SD84).

Project Applicant:

Oscar Uranga with
Unison Real Estate Group, LLC (Applicant
and Property Owner)
Proposed Project:

Applicant is proposing
to construct a 15-unit rental residential
development, with one unit proposed as
affordable to very-low income households.

In order to facilitate the construction of the
project, the applicant is requesting
approval of Density Bonus Agreement
(DBA) No. 2023-01 to utilize waivers from
development standards and/or
development concessions as permitted
pursuant to California Government Code
sections 65915 through 65918 as
implemented by the Santa Ana Municipal
Code (SAMC) Sections 41-1600 through
41-1607.

Environmental Impact:

Pursuant to the
California Environmental Quality Act
(CEQA) and the CEQA Guidelines, the
project is exempt from further review.

Categorical Exemption, Environmental
Review (ER) No. 2022-04 will be filed
for this project.

Meeting Details:

This matter will be
heard on Monday, August 28, 2023 at
5:30 p.m . in the City Council Chambers,
22 Civic Center Plaza, Santa Ana, CA
92701. Members of the public may
attend this meeting in person or join
via Zoom. For the most up-to-date
information on how to participate virtually
in this meeting, please visit
https://www.santa-ana.org/planning-and-
building-meeting-participation/.

Written Comments:

If you are unable to
participate in the meeting, you may send
written comments by e-mail to
[email protected]
(reference the Agenda Item # in the
subject line) or mail to Nuvia Ocampo,
Recording Secretary, City of Santa Ana,
20 Civic Center Plaza – M20, Santa Ana,
CA 92701. Deadline to submit written
comments is 4:00 p.m. on the day of the
meeting. Comments received after the
deadline may not be distributed to the
Commission but will be made part of the
record.

Where To Get More Information
:

Additional details regarding the proposed
action(s), including the full text of the
discretionary item, may be found on the
City website 72 hours prior to the public
hearing at: https://santa-
ana.primegov.com/public/portal.

Who To Contact For Questions:

Should
you have any questions, please contact
Pedro Gomez with the Planning and
Building Agency at PGomez@santa-
ana.org or 714-667-2790.

Note: If you challenge the decision on the
above matter, you may be limited to
raising only those issues you or someone
else raised at the public hearing
described in this notice, or in written
correspondence delivered to the Planning
Commission or City Council of the City of
Santa Ana at, or prior to, the public
hearing.

Si tiene preguntas en español, favor de
llamar a Nuvia Ocampo (714) 667-2732.

N u c n liên l c b ng ti ng Vi t,
xin i n tho i cho Tony Lai s (714)
565-2627.
8/16/23
OR-3730166#

City Council
23 –
130
10/17/2023

CITY OF SANTA ANA
Planning and Building Agency
20 Civic Center Plaza ● P.O. Box 1988
Santa Ana, California 92702
www.santa-ana.org/pba

NOTICE OF PUBLIC HEARING

BEFORE THE SANTA ANA PLANNING COMMISSION

The City of Santa Ana encourages the public to participate in the decision-making process. This notice is being sent to those who live or own property within 1000 feet of the project site or who have expressed an interest in the proposed action. We encourage you to contact us prior to the Public Hearing if you have any questions.

Planning Commission Action: The Planning Commission will hold a Public Hearing to receive public testimony, and will take action on the item described below. Decision on this matter will be final unless appealed within 10 calendar days of the decision by any interested party or group.

Project Location: 1212 East Fourth Street located within the Corridor (CDR) district of the Transit Zoning Code/Specific Development No. 84 (SD84).

Project Applicant: Oscar Uranga with Unison Real Estate Group, LLC (Applicant and Property Owner)

Proposed Project: Applicant is proposing to construct a 15- unit rental residential development, with one unit proposed as affordable to very -low income households. In order to facilitate the construction of the project, the applicant is requesting approval of Density Bonus Agreement (DBA) No. 2023-01 to utilize waivers from development standards and/or development concessions as permitted pursuant to California Government Code sections 65915 through 65918 as implemented by the Santa Ana Municipal Code (SAMC) Sections 41-1600 through 41-1607.

Environmental Impact: Pursuant to the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the project is exempt from further review. Categorical Exemption, Environmental Review (ER) No. 2022-04 will be filed for this project.

Meeting Details: This matter will be heard on Monday, August 28, 2023 at 5:30 p.m. in the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701. Members of the public may attend this meeting in person or join via Zoom. For the most up-to-date information on how to participate virtually in this meeting, please visit https://www.santa-ana.org/planning-and-building- meeting-participation/.

Written Comments: If you are unable to participate in the meeting, you may send written comments by e-mail to [email protected] (reference the Agenda Item # in the subject line) or mail to Nuvia Ocampo, Recording Secretary, City of Santa Ana, 20 Civic Center Plaza – M20, Santa Ana, CA 92701. Deadline to submit written comments is 4:00 p.m. on the day of the meeting. Comments received after the deadline may not be distributed to the Commission but will be made part of the record.

Where To Get More Information: Additional details regarding the proposed action(s), including the full text of the discretionary item, may be found on the City website 72 hours prior to the public hearing at:
https://santa-ana.primegov.com/public/portal.

City Council
23 –
131
10/17/2023

Who To Contact For Questions: Should you have any questions, please contact Pedro Gomez with the Planning and Building Agency at [email protected] or 714-667-2790.

Note: If you challenge the decision on the above matter, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission or City Council of the City of Santa Ana at, or prior to, the public hearing.

Si tiene preguntas en español, favor de llamar a Nuvia Ocampo (714) 667-2732.

Nếu cần liên lạc bằng tiếng Việt, xin điện thoại cho Tony Lai số (714) 565-2627.

1000’ RADIUS NOTIFICATION MAP

City Council
23 –
132
10/17/2023

From: Linda Arriaga
To: eComments, PBA
Subject: 1212 E. Fourth Street - Transit Zoning Code/Spec Dev No. 84 (SD84) Date: Sunday, August 27, 2023 11:57:35 PM
Matter to be heard on: Monday, August 28, 2023 at 5:30 p.m. City Council Chambers My name is Linda Arriaga, I reside at 1215 E. 3rd Street, Santa Ana, CA 92701. I have lived at this address for over 20 years. My parents where the previous owners. My father was Frank Rodriguez, the first Hispanic police officer hired by the Santa Ana Police Department. My property is directly behind the property (1212 E. Fourth Street) that applicants (Oscar Uranga and Unison Real Estate Group, LLC) are proposing to construct a 15-unit rental residential property.

This is my concern with building a 15-unit rental residential on this property. First, the congestion it would cause. It is near the corner of 4th and Grand Ave. This intersection has had numerous accidents; the parking alone would not be enough, thereby causing residents from this 15-unit to come and park on our street (1215 E. 3rd Street). We have several homeowners renting out rooms to individuals already causing limited parking. You figure 15 apartments times the number of people living in these apartments, not including renting out rooms to others, in order for these folks to pay for rent. Is too much.

Should you chose to approve this project, this is to place the City of Santa Ana on notice of the propensity of a major accident to happen because of the congestion. Was a legal assistant for over 48 years, 10 of those years working for attorneys who represented several public entities and saw a lot of accidents the city could have prevented.

Thank you for allowing me the opportunity to voice my concerns.

Sincerely
Linda Arriaga
Sent from my iPad

City Council
23 –
133
10/17/2023

From: Lindo, Jared@DOT <[email protected]>
Sent: Saturday, August 26, 2023 1:45 PM
To: Imani, Mehrsa@HCD <[email protected]>; Pezeshkpour, Ali <APezeshkpour@santa- ana.org>
Subject: 1212 E Fourth Street Application TZC/CDR zoning requirements Dear Mehrsa Imani, Ali Pezeshkpour,
The purpose of this letter is to halt any approval to modification of zoning requirements and to adhere to the development requirements of a first floor commercial/mixed use zoning at the subject property. This is in response to the attached letter sent to the City of Santa Ana Planning Manager on 4/27/2023 referencing 1212 E Fourth Street Application – Letter of Technical Assistance. The letter outlines the timeline of project phases and highlights the local governments reluctance to provide timely review and responses to both the applicants Phase 1: Applicants Submittal to Application Completeness Determination, and Phase 2: Application Completeness Determination to Project Consistency Determination. I find that both of these review processes would have been critical reviews based on the applicants request for concessions to reduce, modify or eliminate development standards and zoning code requirements.

City Council
23 –
134
10/17/2023

In light of the letter where its written that a concession may be sought not only to modify a zoning code requirement where: “First the applicable zoning classification is simply “multi-family dwellings” (i.e., not “MixedUse”). Second, the ground floor commercial requirement is subordinate in function to the primary zoning classification of “Multi-Family Dwellings,” relating primarily to the location of the commercial floor area”.” This does not correctly describe the subject projects zoning classification, where as, in review of the City of Santa Anas Zones Established & Uses document (April 28 2022) and stated in the attached letter, the project location is zoned as Transit Zoning Code (TZC) and Corridor (CDR) Zone, which defines CDR as:
“This zone is applied to properties fronting existing commercial corridors and provides standards to improve pedestrian-orientation in a transit-supportive, mixed use area. Mixed-use flex block and live-work building types are at or near the sidewalk, and accommodate street level retail, service, and office uses, with office and residential above….”
Therefore, the project is zoned as CDR, meaning the project needs to comply to is zoning requirements and include first floor commercial. Altering the zoning of this corner is not consistent with the adjacent zoning and use of the adjacent and surrounding properties of the area. These properties are for mixed-use and live-work spaces making the primary function of such developments first floor commercial and upper story dwellings subordinate to the first floor commercial use. Using the State Density Bonus Law (SDBL) to modify zoning away from commercial local need is an overreach. The SDBL directive of “shall be interpreted liberally in favor of producing the maximum number of total housing units” does not mean to increase housing by altering exiting zoning, reduce local jobs, reduce local businesses, and reduce local resources for residents in the local and regional area. This zoning is also in place to protect the resources available to the greater regional area due to its proximity of local and regional transit as part of the TZC zone. Noting that the “the cost of adding an additional story to the building to meet the ground floor commercial requirement and providing 16 units is presumably economically infeasible” would not be sufficient justification since the property location per code is only allotted 12 units per is size allotment and any allowed units using an incentive to grant is just that, an incentive. An reduction in an incentive should not be justification enough to replace a zoning standard and itself be the reason for first floor commercial exceptions. The applicant will be granted the additional 4 units per the SDBL which it is entitled, however it is up to the applicant to incorporate the incentive or not. The applicant has demonstrated that they can incorporate 2 of the 4 SDBL incentive units while adhering to the first floor mixed use zoning requirements meaning that there is no need for an additional floor nor is it infeasible as the letter states.

I did read that this project is either determined or seeking Environmental Categorically Exempt (CE) CEQA determination. If this is the case, I believe that any consideration in an exception to local zoning would violate CE/CE determination and require a revalidation and trigger an Initial Study Mitigated Negative Determination (IS/MND) or Environmental Impact Report (EIR). Where local community members would have the opportunity to comment and review.

Thank you for your consideration. If you have any questions please feel free to reach out to me.

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Jared Lindo, PE

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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
April 27, 2023
Ali Pezeshkpour, Planning Manager
City of Santa Ana
Planning Division
20 Civic Center Plaza
Santa Ana, CA 92701
Dear Ali Pezeshkpour:

RE: 1212 E Fourth Street Application – Letter of Technical Assistance The purpose of this letter is to provide technical assistance to the City of Santa Ana (City) regarding the application for a proposed housing project to be located at 1212 E Fourth Street (Project). The California Department of Housing and Community Development (HCD) received a request for technical assistance regarding the subject Project, and the determination of application completion and consistency pursuant to the Permit Streamlining Act (PSA) (Gov. Code, § 65920 et seq.), the Housing Accountability Act (HAA) (Gov. Code, § 65589.5), and the State Density Bonus Law (SDBL) (Gov. Code, § 65915 et seq.). Additionally, the request asks if the Project will be subject to the City’s recently amended inclusionary zoning ordinance, named the Affordable Housing Opportunity and Creation Ordinance (AHOCO).

HCD understands that the proposed Project will create a total of 14 units, including one unit dedicated to very low-income (VLI) households. The Project site has a general plan land-use designation of Urban Neighborhood-Medium, allowing residential densities of up to 40 dwelling units per acre (du/ac). The site is zoned Transit Zoning Code (TZC) / Corridor Zone (CDR). The Project’s zoning classification is “Multi-Family Dwellings.”1 Under the SDBL, the Project’s base density is 12 units (0.287 acres x 40 du/ac, rounded up per Gov. Code, § 65915, subd. (q)). The applicant is providing eight percent VLI units (one unit) to earn a 27.5-percent density bonus (four units). While entitled to four units, the applicant has chosen to incorporate only two bonus units. The Project seeks concessions and development standard waivers pursuant to the SDBL. 1 Transit Zoning Code (TZC), Section 41-2007, Table 2A – Use Standards.

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Ali Pezeshkpour, Planning Manager

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Santa Ana City CouncilOctober 17, 2023

Santa Ana City Council
October 17, 2023