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O1656 e e CA:BAR:rord.emg/wpfiles/pc City Council Meeting 10-27-92 Santa Monica, California ORDINANCE NUMBER 1656 (CCS) (City council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA EXTENDING A MORATORIUM ON MULTIFAMILY RESIDENTIAL DEVELOPMENT WITH CERTAIN EXEMPTIONS IN ORDER TO COMPLY WITH PROPOSITION RAND DECLARING THE PRESENCE OF AN EMERGENCY THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Findinqs and Purpose. The city council finds and declares: (a) On November 6, 1990, the voters of the city of Santa Monica approved proposition R, adding section 630 to the City Charter to read as follows: The City Council by Ordinance shall at all times require that not less than thirty percent (30%) of all multifamily-residential housing newly constructed in the City on an annual basis is permanently affordable to and occupied by low and moderate income households. For purposes of this Section, "low income household" means a household with an income not exceedlng sixty percent (60%) of the Los Angeles county median income, adjusted by family size, as published from time to time by the United states Department of Housing and 1 e e Urban Development, and "moderate income householdll means a household with an income not exceeding one hundred percent (100%) of the Los Angeles County median income, adjusted by family size, as published from time to time by the United states Department of Housing and Urban Development. At least fifty percent (50%) of the newly constructed units required to be permanently affordable by this Section shall be affordable to and occupied by low income households. (b) On March 3, 1992, the city council adopted Ordinance Number 1615 (CCS) specifically to meet the requirements of Proposition R. (c) On March 20, 1992, the Santa Monica Housing Council and Robert J. Sullivan filed suit against the City, Santa Monica Rousing council, et al. v. City of Santa Monica, Los Angeles Superior Court Case Number se 016169, contending, in part, that the city had to amend Program 12 of its Housing Element before adopting Ordinance 1615 (CCS). (d) On August 28, 1992, the Court found that the City's adoption of Ordinance No. 1615 (CCS) without first amending Program 12 of the City'S Housing Element violated state law. (e) On August 31, 1992, the city sent a revised Housing Element to the California Department of Housing and Community Development ("HCD") for its review. 2 e e (f) This document contains additions and revisions prepared specifically in response to comments made by HCD to an earlier version of the City's revised Housing Element submitted to HCD by the City. The August 31, 1992 document also updates the Housing Element to reflect changes in City ordinances and population and income data from the 1990 census. The revised Housing Element contains a descrlption of the passage of Propositlon R and its implementation through adoption of Ordinance 1615. There is no conflict between the revised Housing Element sent to HeD on August 31, 1992 and the provisions of Ordinance 1615. (g) On September 23, 1992, the Court entered judgment ordering the City in relevant part to refrain from enforcement of Ordinance 1615 (CCS) until the city has amended its Housing Element; to amend lts Housing Element to reflect the adoption of Proposition R, and, if desired, Ordinance No. 1615 (CCS); and pending the amending of the Housing Element, to process projects under program 12 or establish a moratorium. (h) The city appealed the Court's September 23, 1992 judgment on September 24, 1992. (i) The City's appeal of the Court's judgment automatically stays the judgment, preventing the judgment from being effective pending the resolution of the appeal. (j} Santa Monica Housing Council and Robert J. Sullivan have informed the City that they do not consider portions of the Court's judgment stayed pending resolution of appeal and that they will ask the Court to enforce those portions of the judgment should this 3 e e Council adopt this ordinance. (k) On September 29, 1992, Ordinance Number 1649 (CCS) was adopted to ensure that the city is able to meet the requirements of Proposition R should the stay of the Court's judgment be lifted or the judgment otherwise enforced. Proposition R mandates that on an annual basis not less than 30% of all multifamily residential housing newly constructed in the City be permanently affordable to low and moderate income households. Historically, multifamily residential housing developed in the City falls far short of this 30% requirement. Simply processing development projects pursuant to the existing Program 12 provisions would not enable the City to meet the requirements of Proposition R. Thus, this emergency moratorium was adopted so that the City would be able to meet the mandate of Proposition R. This ordinance will expire on November 13,1992. (1) On October 16, 1992, the HCD reported its written findings to the City concerning the revised Housing Element. RCD believes that additional changes to the revised Housing Element are needed before the Revised Housing Element will comply with state law. The City is in the process of formulating a response to HCD's findings. (m) It is anticipated that the revlsed Housing Element will not be presented to the Santa Monlca Planning Commission and the Santa Monica City Council for review until early 1993 since the environmental impact report being prepared in conjunction with the Revised Housing Element will not be completed until that time. 4 e e (n) Given that the City would not be able to meet the obligations of Proposition R should the stay be lifted or the judgment otherwise enforced and this ordinance not be enacted, there is a current and immediate threat to the public health, safety, or welfare of the city. The processing of tentative tract maps, tentative parcel maps, use permits, variances, building permits or other city permits for multi-family residential development contrary to the terms of this ordinance would also result in a threat to public health, safety, or welfare. (0) This ordinance is adopted in conformity with Santa Monica Municipal Code Section 9120.6. SECTION 2. Applicability. The provisions of sections 3 and 4 of thls ordinance shall become immediately operative the date that any of the following events occur: (a) The stay of the judgment in Santa Monica Housinq Council. et ale v. city of Santa Monica, Los Angeles superior Court Case Number SC 016 169 is lifted pursuant to the provisions of Code of Civil Procedure Section 1110b or the judgment, or any portion thereof, otherwise becomes effective. (b) The City is prohibited from enforcing the provisions of Ordinance 1615 (CCS) pursuant to any court order. SECTION 3. Moratorium. ~ (a) Subject to the exemptions set forth in Section 4 of this Ordinance, a moratorium is hereby placed on the acceptance for processing of any applications for approval of tentative tract 5 e e maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, or any other city permits for the erection, construction, moving, and excavation and grading for, any mUlti-family residential building or structure. (b) Subject to the exemptions set forth in Section 4 of this Ordinance, the Planning commission and city staff are hereby directed to disapprove all applications for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, or any other City permits for the erection, construction, moving, and excavation and grading for, any mUlti-family residential building or structure. SECTION 4. Exemptions. The following applications are exempt from the provisions of Section 3 of this Ordinance: (a) Applications for approval of permits involving the erection, construction, enlargement, demolition, or moving of, and excavation and grading for any mUlti-family residential development intended for rental housing for persons of low and moderate income or for senior citizens, and which development is financed by any federal, state or City housing assistance program or owned by any non-profit organization, provided a deed restriction is recorded restricting the development to such purpose. (b) Applications for approval of permits involving the erection, construction, and excavation and grading for any multi- family residential development that has already obtained a vesting tentative map from the City that has not subsequently expired. 6 e e (c) Applications for approval of permits involving the construction and excavation and grading for, mUlti-family residential developments where the following requirements are met: (1) The applicant proposes that thirty percent (30%) of the total number units to be constructed on site by the applicant, excluding any density bonus units the applicant is entitled to under Government Code Section 65915, shall be permanently affordable to and occupied by low and moderate income households as provided for in this subsection. (2) Fa}:' purposes of this subsection, "low income household" means a household with an income not exceeding sixty percent (60%) of the Los Angeles County median income, adjusted by family size, as published from t~me to time by the united states Department of Housing and Urban Development, and "moderate income household" means a household with an income not exceeding one hundred percent (100%) of the Los Angeles County median income, adjusted by family size, as published from time to time by the united states Department of Housing and Urban Development. (3) At least fifty percent (50%) of the newly constructed units required to be permanently affordable by this subsection shall be affordable to and occupied by low income households. (4) In determining the number of inclusionary units required, any decimal fraction less than 0.5 shall be rounded down to the nearest whole number, and any decimal fraction of 0.5 or more shall be rounded up to the nearest whole number. However, in 7 e e determining the number of low income inclusionary units required, any decimal fraction less than 0.5 shall be rounded up to the nearest whole number. (5) At the time of filing an application with the City's Planning Department for permission to develop multi-family market rate dwelling units, the developer shall specify the number, type, location, size, and construction schedule of all dwelling units proposed to be developed and shall indicate which of the dwelling units, if any, are intended to satisfy the inclusionary housing requirements of this Chapter. (6) If located on the project site, inclusionary units shall, whenever reasonably possible, be evenly distributed throughout the project. The applicant may reduce either the size or interior amenities of the inclusionary units as long as there are not significant identifiable differences between inclusionary and market rate units visible from the exterior of the units and the size and design of the units are reasonably consistent with the market rate units in the proJect, provided that all units confirm to the requirements of the applicable Building and Housing Codes. Inclusionary units provided shall have at least the same number of bedrooms as the average unit in the proJect and if the floor area of the inclusionary units is not the same as the floor area of the market rate units at the project, each of the inclusionary units shall satisfy the following minimum total floor area, depending upon the number of bedrooms provided: 8 e e 0 Bedroom 500 Square Feet 1 Bedroom 600 Square Feet 2 Bedrooms 850 Square Feet 3 Bedrooms 1080 Square Feet 4 Bedrooms 1200 Square Feet (7) All inclusionary units in a project or a phase of a project shall be constructed concurrently with the construction of market rate units in the project or phase of that project. (8) Incluslonary units developed on the project site must be rental units in rental or ownership projects. (9) The city shall, on an annual basis, set maximum allowable rents for inclusionary units, adjusted by the number of bedrooms. Such maximum allowable rents shall be set at rates such that qualified occupants for low income units pay no more than thirty percent (30%) of the gross monthly household income for households earning 60% of the median income. Qualified occupants for moderate income units shall pay no more than 30% of the gross household income for households earning the median income. The owner of each inclusionary unit shall retain discretion in the selection of eligible renters for that unit, provided that such renters meet the requirements of Subsections (c) (10)-(c) (12) of this Section. (10) Only low and moderate income households shall be eligible to occupy inclusionary units. The City may establish administrative guidelines for determining household income, minimum 9 e e and maximum occupancy standards and other compatible eligibility criteria. The city council may, by resolution, approve a tenant certification process with which a project applicant subject to this Chapter shall be requlred to comply. (11) The following individuals, by virtue of their position or relationship, are ineligible to occupy an affordable unit: (i) All employees and officials of the City of Santa Monica or its agencies, authorities, or commissions who have, by the authority of their position, policy-making authority or influence affecting city housing programs. (ii) The immediate relatives, employees, or other persons gaining significant economic benefit from a direct business association with public employees or officials. (iii) The immediate relatives of the applicant or owner, including spouse, children, parents, grandparents, brother, sister, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, sister-in-law, and brother-in-law. (12) In setting priori ties among eligible households, first priority shall be given to santa Monica residents, second priority to persons employed in Santa Monica, and third priority to other persons. (13) Prior to the issuance of a bUllding permit for a project exempt under this subsection, the applicant shall submit deed restrictions or other legal instruments setting forth the 10 e e obligations of the applicant under this subsection for city review and approval. Such restrictions shall be effective for the lifetime of the project. (14) The requirements of this subsection shall be made conditions to the approval of any application filed pursuant to this subsection. (d) App11cations for approval of permits involving the rehabilitation or enlargement of existing dwelling units. SECTION 5. This ordinance shall be of no further force and effect ten (10) months and fifteen (15) days from its adoption. SECTION 6. This ordinance is declared to be an urgency measure adopted pursuant to the provisions of section 615 of the Santa Monica City Charter. It is necessary for preserving the public peace, health and safety, and the urgency of its adoption is set forth in the findings above. SECTION 7. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and not further, are hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 8. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconsti tutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The city Council hereby declares that it would have passed this Ordinance, and each and 11 e e every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 9. The Mayor shall sign and the city Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective upon adoption. APPROVED AS TO FORM: ~~ JO PH LAWRENCE Acting City Attorney 12 . e Adopted and approved this 27th day of october, 1992. I hereby certify that the foregoing Ordinance No. l656(CCS) was duly and regularly introduced at a meeting of the city Council on the 27th day of October 1992; that the said Ordinance was thereafter duly adopted at a meeting of the city Council on the 27th day of October 1992 by the following Council vote: Ayes: Councilmembers: Abdo, Genser, Holbrook, Olsen, Vazquez, Zane Noes: Councilmembers: None Abstain: Councilmembers: None Absent: Councilmembers: Katz ATTEST: /' -: - /6'duc; ~~. ~ ~ City ClerK - - ~