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25 Susana Barrios From:Julian Gutierrez <juliang@kennedycommission.org> Sent:Tuesday, October 29, 2024 4:40 PM To:Public Comment Subject:\[EXTERNAL\] Kennedy Commission Comments on Item 25 Attachments:Anaheim Inclusionary Housing Ordinance Letter.docx (1).pdf You don't often get email from juliang@kennedycommission.org. Learn why this is important 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. Good afternoon, Attached below will be Kennedy Commission comments regarding the second reading of Anaheim's Inclusionary Housing Ordinance. Best -- Julian Sebastian Gutierrez (He/Him) Policy Analyst - Kennedy Commission ( 1 10/29/2024 Mayor Ashleigh Aitken and Members of City Council City of Anaheim 200 S.Anaheim Blvd. Anaheim,CA 92805 Re:Kennedy Commission Comments Regarding the Proposed Inclusionary Housing Ordinance;Agenda Item #25 Dear Mayor Aitken and Members of Anaheim City Council, The Kennedy Commission (the Commission)is a broad coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $30,000 annually in Orange County.Formed in 2001,the Commission has been successful in partnering and working with jurisdictions in Orange County to create effective policies that have led to the increased production of affordable homes and housing stability for low income working families. We are submitting this letter in support of the City of Anaheim’s proposal to move forward with the second reading of the Inclusionary Housing Ordinance to adopt and implement an Inclusionary Housing Ordinance. Addressing the Critical Need for Affordable Housing in Anaheim The need for affordable housing in Anaheim,particularly for low-wage earners,remains critical. The current average fair market rent for an existing two-bedroom apartment in Anaheim is $2,560 per month1,making housing unattainable for many lower-income working families.In addition the average rent for new developments of market rate multifamily development are between $3155.67 -$4333.75.2 Despite rising rents and an increasing number of residents facing housing instability,the production of affordable housing has not kept pace with this growing need.Without adopting key affordable housing policies,such as inclusionary zoning,Anaheim will only continue to develop market-rate housing that remains out of reach for most residents. During the current 6th Regional Housing Needs Assessment (RHNA)cycle,the City has to plan for a total of 12,453 housing units.Of that RHNA 3,767 units must be allocated for very low-income households and 2,397 units for low-income households.Per the city’s Draft Housing Element (July 2024),the city’s current pipeline projects have already met and exceeded its RHNA for above moderate income families.According to the 2024 Housing Element Annual Progress Report,Anaheim continues to prioritize above-moderate income housing,producing 1,175 units for this category,while only 137 deed-restricted units have been developed for very low-income households and 18 units for low-income households.Most of these very low-income 2 https://www.apartments.com/platinum-triangle-orange-ca/min-2-bedrooms/?bb=twnsrzo2iN5v9vtB 1 https://www.zumper.com/rent-research/anaheim-ca 1 units have been developed as Permanent Supportive Housing,primarily serving formerly homeless individuals,leaving an unmet need for broader housing opportunities to house lower income families.The Inclusionary Housing Ordinance should focus on ensuring that low and very low income housing for working families is produced along with market rate housing. Support for The Inclusionary Housing Ordinance The Kennedy Commission strongly supports the City’s efforts to adopt an Inclusionary Housing Ordinance that places a 10%inclusionary requirement or a $10 per square foot in lieu fee.We also recommend that the program should be reviewed on an annual basis in order for the city to measure the success of the ordinance and modify it depending on the effectiveness of the program.In our work and experience,we have seen that inclusionary housing ordinances are the most effective when they are expanded to all developments with an expanded in-lieu fee to ensure that affordable developments are commensurate with the market. Implementing an Inclusionary Housing Ordinance will create a balanced approach to housing development,ensuring that affordable housing is developed alongside market-rate projects. Similar ordinances have proven successful in neighboring cities in Orange County and statewide and believe this approach will help Anaheim meet its affordable housing goals and provide much needed affordable housing to working families struggling to remain housed. The Commission looks forward to partnering with the city to increase affordable home opportunities for lower income households in the city.For more information on collaboration, please contact me at (949)250-0909 or cesarc@kennedycommission.org Sincerely, Cesar Covarrubias Executive Director 2