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15Jennifer L. Hall From: Cesar C <cesarc@kennedycommission.org> Sent: Tuesday, December 7, 2021 5:50 PM To: City Clerk Subject: [EXTERNAL] Item 15 - Second Amended Negotiation Agreement Anaheim Blvd and Ball Attachments: Ltr_Item 15 12.7.2021.pdf Warning: This email originated from outside the City of Anaheim. Do not click links or open attachments unless you recognize the sender and are expecting the message. Please see attached the Kennedy Commission's comments for Item 15 - Second Amended Negotiation Agreement - Anaheim Blvd and Ball Cesar Covarrubias Executive Director December 7, 2021 Mayor Harry Sidhu City Council Members City of Anaheim 200 S. Anaheim Boulevard Anaheim, CA 92805 www.kennedycoininission.org 17701 Cowan Ave., Suite 200 Irvine, CA 92614 949 250 0909 RE: Item 15 - APPROVAL OF SECOND AMENDED AND RESTATED EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE CITY OF ANAHEIM AND GREENLAW DEVELOPMENT, LLC FOR DEVELOPMENT AT THE SOUTHEAST CORNER OF ANAHEIM BOULEVARD AND BALL ROAD Dear Mayor Harry Sidhu and City Council Members: The Kennedy Commission (the Commission) is a broad-based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $20,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering and working with Orange County jurisdictions to create effective housing and land -use policies that has led to the new construction of homes affordable to lower income working families. As the City Council considers the amendment to the Exclusive Negotiation agreement for the proposed development at the southeast corner of Anaheim Boulevard and Ball Road, The Kennedy Commission continues to urge the Council to not approve an agreement until this development there are direct commitments to maximize affordable housing production on this city owned land. The City needs to prioritize developments that are 100% affordable for lower income families on this city owned site to maximize and leverage additional federal and state housing funds. At a minimum a 15%-20% of the units should be affordable to low, very low and extremely low-income families. We stated our position in the letter submitted for the first reading of the project on October 27, 2020, and November 10, 2020 (second reading). The developer last proposed only a voluntary contribution of $269,000,1 which is not enough to meet the need of Anaheim residents. If the City is unwilling to require the inclusion of affordable units in the proposed development, then it should require a more appropriate in lieu fee to build affordable housing off site based on comparable costs specifically at the low, very low and extremely low-income families. In addition, the city should follow the requirements of the California Surplus Land Act when disposing of city owned land. 'City of Anaheim's City Council Agenda Staff Report, Item 19, p. 1, November 2020. Mayor Harry Sidhu and City Council Members December 7, 2021 The City's 2020 Annual Housing Element Progress Report for the 2014-2021 planning period illustrates the urgent need for affordable housing for Anaheim residents and the disproportionate production of above moderate -income units. For the 2014-2021 Housing Element planning period, the city has a Regional Housing Needs Assessment (RHNA) of 1,256 very low- and 907 low-income households. To -date, the city has built 308 or 25% of the 1,256 very low-income units and 160 or 18% of the 907 low-income units.2 However, for the above moderate -income units, the city outperformed and exceeded the RHNA by constructing 7,644 or 30% of the 2,501 above moderate -income RHNA.3 With a remaining RHNA need of 1,695 lower income homes, it is important the city prioritize the development of new affordable homes and adopt a mixed -income housing ordinance to encourage the development of affordable homes for lower income households in the City. The city has a new RHNA allocation for the very low and low income level for the upcoming cycle of 3,757 and 2,391, respectively.4 Given the City's track -record of prioritizing above moderate housing on Housing Opportunity Sites identified in the current Housing Element as sites that can be used to meet the City's RHNA requirements at the very -low and low, the City will have a very difficult time meeting its current and upcoming RHNA allocation. For example, in 2019 the City approved a 20 -acre market -rate residential development in the Residential Opportunity Overlay Zone, depleting the capacity of the City meet its remaining housing needs for lower income households. It is imperative that city owned land is prioritized to develop lower income housing that is not being address by market rate development. The Commission looks forward to partnering with the city to increase affordable home opportunities for lower income households in the city, especially as the city works to address the impact of COVID-19 on the housing security of residents. Please keep us informed of any updates and meetings regarding strategies to increase affordable homes for lower income households in the city. If you have any questions, please free to contact me at (949) 250-0909 or cesarc@kennedycommission.org. Sincerely, Cesar Covarrubias Executive Director cc: Ms. Megan Kirkeby, Acting Deputy Director, Housing Policy Development, CA HCD Mr. Paul McDougall, Housing Manager, CA HCD PublicLands@hcd.ca.gov 2 City of Anaheim's 2019 Annual Housing Element Progress Report, p. 2, April 2020. s City of Anaheim's 2019 Annual Housing Element Progress Report, p. 3, April 2020. ' "SCAG 6' Cycle Draft RHNA Allocation Based on Final RHNA Methodology & Final Connect SOCAL," September 3, 2020. ham://www.scan.ca.nov/pro2 ams/Documents/RHNA/RFINA-Draft-Allocations-090320-1Jpdated.pdf Page 2 of 2