policy
Santa Ana Council Mandates 15% Affordable Housing in New Developments
Santa Ana residents seeking new rental or ownership units will encounter a 15 percent affordable housing requirement on developments of 10 units or more after the council's 5-2 vote last week.
How we reported this
The Santa Ana City Council on July 7 approved an inclusionary zoning ordinance that mandates 15 percent of units in qualifying new residential projects be priced for households earning up to 80 percent of area median income. The measure applies to projects with 10 or more units and takes effect January 1, 2027, affecting future construction in neighborhoods such as Downtown and Delhi.
Why the Ordinance Moved Forward Now
Council members advanced the policy after reviewing the city's 2025 Housing Element update, which projected a shortfall of 4,200 affordable units by 2031. The vote followed public hearings on June 18 and June 25 where staff presented comparisons with neighboring jurisdictions. Santa Ana's requirement matches the 15 percent level already in place in Anaheim and Costa Mesa while remaining below the 20 percent threshold adopted in Los Angeles in 2024.
City records show the ordinance replaces a voluntary density bonus program that produced 312 affordable units between 2020 and 2025. Under the new rules, developers may pay an in-lieu fee of $35,000 per required unit into the city's Housing Trust Fund if on-site construction proves infeasible.
Effects on Santa Ana Households and Development Pipeline
For local families, the change means future apartment complexes along Fourth Street or near the Santa Ana Regional Transportation Center will include income-restricted units. A household of four earning $78,000 annually could qualify for a two-bedroom unit capped at approximately $1,950 monthly rent, based on current area median income calculations from the U.S. Department of Housing and Urban Development.
Planning staff estimate the rule will apply to roughly 1,800 new units in the pipeline through 2028, including two mixed-use projects already under environmental review. The city budget for fiscal year 2026 allocates $1.8 million from the Housing Trust Fund for related administration and monitoring.
Next steps include drafting implementation guidelines by October and training sessions for developers scheduled for November. The city will publish an annual report on units produced under the ordinance beginning in 2028.