To The Honorable Chairman David Vazquez and Planning Commission 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 $30,000 annually in Orange County.
Thank you for the opportunity to review and comment on the ordinance amending Chapter 17.44 of the Orange Municipal Code, providing a mechanism for the transfer of development rights.
The staff report indicates that the Transfer of Development Rights will intensify housing on identified development zones established by the ordinance. The Transfer of Development Rights will be negotiated through a development agreement in exchange for community benefit.
The Commission is in opposition to the City creating the proposed Transfer of Development Rights Ordinance, unless the City incorporates a minimum requirement of 15% affordable units for low, very low and extremely low in residential developments that benefit from the Transfer of Development Rights.
Ensuring that affordable housing is developed as part of the Transfer of Development Rights is essential as a policy that can promote equitable housing development. The sites identified for intensified housing transfer rights under the proposed ordinance are in the UMU zones. These same UMU zone sites have been identified as opportunity sites for lower income in the City’s approved Housing Element. As analyzed as part of the Housing Element, UMU zones sites are to be available for lower income RHNA based solely on densities of above 30 dwelling units to the acre. No additional incentives or programs have been included in the Housing Element to facilitate affordable housing development on these sites. This strategy of offering higher density sites in the UMU zone to produce affordable housing was the same in the 5th cycle and it was unsuccessful, no lower income units have been produced in the UMU zone.
As a result of the lack of production of affordable housing with this strategy, the City committed to add a policy action, “to consider adopting an Inclusionary Housing Ordinance if existing incentives fail to result in affordable housing at levels identified in the RHNA” (HCD Letter, Sep. 29, 2023).
The current proposed Transfer of Development Rights Ordinance simply provides more intense housing development that will be higher density in UMU zones at market rate and no affordable housing units. The Commission recommends developments that take advantage of the Transfer of Development Rights for residential need to include a minimum 15% of the total proposed development as affordable at low and very low and extremely low as a community benefit to help meet lower income RHNA and Housing Element commitments.
The City of Orange has a total RHNA of 3,936 units, which comprises 1,067 very low units and 604 low income units. The City’s 2021-2029 Housing Element states that, “all of the City’s lower income RHNA needs is anticipated to be accommodated within the UMU zone, which can accommodate development at up to 60 dwelling units per acre” (P. 3-54). Therefore, the Transfer of Development Rights creates a situation where additional density is given to development without requiring affordable housing units in exchange for that additional benefit.
To The Honorable Chairman David Vazquez and Planning Commission 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 $30,000 annually in Orange County.
Thank you for the opportunity to review and comment on the ordinance amending Chapter 17.44 of the Orange Municipal Code, providing a mechanism for the transfer of development rights.
The staff report indicates that the Transfer of Development Rights will intensify housing on identified development zones established by the ordinance. The Transfer of Development Rights will be negotiated through a development agreement in exchange for community benefit.
The Commission is in opposition to the City creating the proposed Transfer of Development Rights Ordinance, unless the City incorporates a minimum requirement of 15% affordable units for low, very low and extremely low in residential developments that benefit from the Transfer of Development Rights.
Ensuring that affordable housing is developed as part of the Transfer of Development Rights is essential as a policy that can promote equitable housing development. The sites identified for intensified housing transfer rights under the proposed ordinance are in the UMU zones. These same UMU zone sites have been identified as opportunity sites for lower income in the City’s approved Housing Element. As analyzed as part of the Housing Element, UMU zones sites are to be available for lower income RHNA based solely on densities of above 30 dwelling units to the acre. No additional incentives or programs have been included in the Housing Element to facilitate affordable housing development on these sites. This strategy of offering higher density sites in the UMU zone to produce affordable housing was the same in the 5th cycle and it was unsuccessful, no lower income units have been produced in the UMU zone.
As a result of the lack of production of affordable housing with this strategy, the City committed to add a policy action, “to consider adopting an Inclusionary Housing Ordinance if existing incentives fail to result in affordable housing at levels identified in the RHNA” (HCD Letter, Sep. 29, 2023).
The current proposed Transfer of Development Rights Ordinance simply provides more intense housing development that will be higher density in UMU zones at market rate and no affordable housing units. The Commission recommends developments that take advantage of the Transfer of Development Rights for residential need to include a minimum 15% of the total proposed development as affordable at low and very low and extremely low as a community benefit to help meet lower income RHNA and Housing Element commitments.
The City of Orange has a total RHNA of 3,936 units, which comprises 1,067 very low units and 604 low income units. The City’s 2021-2029 Housing Element states that, “all of the City’s lower income RHNA needs is anticipated to be accommodated within the UMU zone, which can accommodate development at up to 60 dwelling units per acre” (P. 3-54). Therefore, the Transfer of Development Rights creates a situation where additional density is given to development without requiring affordable housing units in exchange for that additional benefit.
See full letter sent to City Clerk.