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O1657 e e CA:RMM:a9425/hpadv city Council Meeting 11-l7-92 Santa Monica, California ORDINANCE NUMBER 1657 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTIONS 9.28.060 AND 9.28.080 REGARDING ON SITE INCLUSIONARY UNIT DEVELOPMENT REQUIREMENTS AND IN LIEU FEES THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. santa Monica Municipal Code Section 9.28.060 is amended to read as follows: SECTION 9.28.060. On Site Inclusionary Unit Development Requirements. (a) In determining the number of inclusionary units required when on site units are provided, the following chart shall be utilized. Number of Low Moderate Units Built Income Income (eXCluding Units Units density bonus) Required Required 2 1 0 3 1 0 4 1 0 5 1 0 6 1 1 7 1 1 8 2 1 9 2 1 10 2 1 - 1 - e It 11 2 2 12 2 2 13 2 2 14 2 2 15 3 2 16 3 2 17 3 2 18 3 3 19 3 3 20 3 3 For more than 20 units, the number of inclusionary units required shall equal 30 percent of the number of units buil t; any decimal fraction of 0.3 or more rounded up to the nearest whole number, and any decimal fraction of less than 0.3 rounded down to the nearest whole number. (b) 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 dwelling units visible from the exterior of the dwelling units and the size and design of the dwelling units are reasonably consistent with the market rate units in the project, provided that all dwelling units conform to the requirements of the applIcable Building and Housing Codes. Inclusionary units - 2 - - e provided shall have at least the same number of bedrooms as the average dwelling 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 dwelling units at the project, each of the inclusionary units shall satisfy the following minimum total floor area, depending upon the number of bedrooms provided: 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 (0) All inclusionary units in a project or a phase of a project shall be constructed concurrently with the construction of market rate dwelling units in the project or phase of that project. (d) On site inclusionary units must be rental units in rental projects. In ownership projects, inclusionary units may be either rental units, or ownership units. Ownership units shall comply with requirements concerning sales price, monthly payment, limited equity, and resale restrictions established by Resolution of - 3 - ~ e e the City Council to ensure that subsequent purchasers are also income-qualified households. (e) If only one inclusionary unit is required, such unit must be affordable to low income households. The second inclusionary unit provided may be affordable to moderate income households, and alternating thereafter. (f) Whenever inclusionary units are required by this Chapter, the requirement may be satisfied at the developer's discretion by providing 100% of the units in the project affordable to moderate income households, provided that all such units meet the requirements of subsections (b) and (d) of this section, and Sections 9.28.100, 9.28.110, and 9.28.130. SECTION 2. Santa Monica Municipal Code Section 9.28.080 is amended to read as follows: SECTION 9.28.080. In Lieu Fees for Inclusionary Housing. (a) Whenever this Chapter allows the payment of an in lieu fee, the required inclusionary unit number shall be determined as follows: Nl1'111ber of units in the project, (excluding density bonus - 4 - e e units) x 30% = required inclusionary unit number. The first inclusionary unit required shall be affordable to low income income households, and the second to moderate income households. Additional inclusionary units shall alternate between low and moderate income units. Any fraction of a unit required shall not be considered either a low or moderate income unit. An in lieu fee may be paid only for low income units required, and any fraction of a unit required. All moderate income units required shall be provided on site. The fee shall be determined as follows: (i) For any low income unit, the in lieu fee payment required shall equal the inclusionary unit base price, as established in subdivision (c) of this section. (ii) For any fractIon of a unit required, the in lieu fee shall equal the inclusionary unit base price times the fraction of a unit required. (b) The following chart illustrates the in lieu fee payable, the number of on site inclusionary units required, and whether such un! ts must be affordable to - 5 - e e low or moderate income levels, using, for illustrative purposes only, an inclusionary unit base price of $60,000: No. units Built Exclud- ing Density Bonus Moderate Inclusionary units On Site Fee 2 3 4 5 6 7 8 9 10 o o o o o 1 1 1 1 $ 36,000 54,000 72,000 90,000 108,000 66,000 84,000 102,000 120,000 (c) For purposes of this section, the Inclusionary unit base price shall be establ ished and adj usted from time to time by Resolution of the City Counoil based upon the cost to the City of subsidizing the construction of a new residential unit. Any fee required pursuant to this Section shall be adjusted for inflation by the percentage change in the Consumer Price Index ("CPI") between the date of adoption of the Resolution establishing the inc1usionary unit base price through the month in which payment is made. For purposes of this Section CPI shall mean the index for Urban Wage Earners and Clerical Workers for All Items for the Los Angeles/Long Beach/Anaheim statistical - 6 - e e area, as published by the United Department of Labor, Bureau of statistics. (d) Fifty percent C50%) of any fee required pursuant to this section shall be paid prior to the issuance of a Building Permit for the project. The remaining fifty percent (50%) shall be paid in full before a certificate of Occupancy is issued for any unit in the housing project. (e) Any fee required by this section shall be secured by execution of an irrevocable letter of credit in favor of the City or other security acceptable to the City for the total amount of the obligation. The letter of credit or other acceptable securi ty shall be del i vered to the City prior to the issuance of a building permit for the housing development. The letter of credit or other security shall be released and returned to the developer immediately upon payment in full of the in lieu fee. (f) Any payment made pursuant to this section shall be deposited in a Reserve Account separate from the General Fund to be used only for development of low income housing. states Labor - 7 - e e (q) If an lieu fee is paid pursuant to this Section, such payment shall not be considered provision of an inclusionary unit for purposes of determining whether the housing development qualifies for a densi ty bonus pursuant to Government Code section 659l5. SECTION 3. 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 no further, are hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional 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 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 5. 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 - 8 - e e within 15 days after its adoption. This ordinance shall become effective after 30 days from its adoption. APPROVED AS TO FORM: ~~~ JO PH 'LAWRENCE Ac ing city Attorney - 9 - e e Adopted and approved this 17th day of November, 1992. I hereby certify that the foregoing Ordinance No. l657(CCS) was duly and regularly introduced at a meeting of the city Council on the lOth day of November 1992; that the said ordinance was thereafter duly adopted at a meeting of the City Council on the 17th day of November 1992 by the following Council vote: Ayes: Councilmembers: Abdo, Genser, Holbrook, Olsen, Vazquez, Zane Noes: Councilmembers: Katz Abstain: councilmembers: None Absent: Councilmembers: None ATTEST: "- ~- k-i(,a~ .......- -. , - / - Cl. ty C__€"rX .' \ -- ------- ~ -~~