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O1918 f \atty\muru\law\barry\affhsg3 ord CIty CouncIl Meetmg 7-21-98 Santa MOnIca, California ORDINANCE NUMBER 1918 CCS (City CouncIl Senes) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING CHAPTER 9 56 TO THE SANTA MONICA MUNICIPAL CODE ESTABLISHING AN AFFORDABLE HOUSING PRODUCTION PROGRAM THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS SECTION 1 Chapter 956 IS hereby added to the Santa MOnIca MunicIpal Code to read as follows CHAPTER 9 56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.010. Findings and Purpose. (a) Santa MOnIca IS a coastal city In a pnme locatIOn, being bordered by the CIty of Los Angeles to the north, east and south The combmatlOn of a scemc oceanside location, excellent chmate, and the ready avallablhty of urban faclhtles, servIces, and entertamment make Santa Moruca an extremely desIrable place to hve (b) The land area of the CIty IS very small- apprmomately eIght (8) square mIles Santa MOnIca IS already a fully bUIlt-out City, WIth only sixty-two vacant resIdential parcels It also has a population ofapprmomately 90,000 Santa MOnIca's populatIOn denSity, 11,200 persons per square mile, IS the second lughest among nelghbonng and nearby JunsdictlOns, and is the densest among coastal commUnIties m Los Angeles County 1 (c) The vast maJonty of new market rate multl-famdy development III the City IS not affordable to lower-Income households Moreover, market conditions, IncludIng the high cost of resldentmlland, construction costs, and the availability and cost of financing, make the development of affordable housing in the CIty extremely drfficult (d) In addItIOn, the consumptIOn patterns of the upper-mcome households who occupy these new market rate multi-family housing umts create a need for affordable hOUSIng m the CIty More specIfically, households create demand for goods and services In the pnvate sector, such as retall goods and medIcal services, and Jobs In the pubhc sector, such as teachers and mUnICIpal sefVlces The higher the household's mcome, the more demand IS created New market rate multI-fanuly hOUSIng in Santa MOnIca accommodates upper-Income households almost exclusively because of the lugh rent or purchase pnce reqUired to occupy It Supplying goods and services suffiCIent to meet the demand created by upper-mcome households m new market rate multi- family housmg reqUIres workers across the pay scale spectrum, lOcludtng lower-wage employees (e) The City has prepared an analysis of this relationship between new market rate apartment and condominium development m the CIty and the need for affordable housmg created by this new development TIllS study focuses on the relationslup between the demand for goods and services created by households who occupy new market rate multi-family development m the City, the number of low-wage workers In pubhc agencies and bustnesses needed to satisfY tlus demand, and the costs of producmg the affordable housing needed by these workers This study demonstrates the range per square foot whIch could be Imposed on new market rate multi-fanuly development to help finance the development of affordable housmg needed to meet the demand created by market rate development 2 (f) In addItIOn, because the CIty is bUIlt-out, land avaIlable for resIdentIal development in the CIty IS hmlted Further, land which could be used for development ofhousmg for low mcome households IS bemg depleted by development of high cost housmg Thus, continued new residentIal development wluch does not mclude or contribute toward the cost of housing for lower mcome households will only serve to further exacerbate the current affordable housmg shortage (g) ReqUIring developers to assIst III the production of affordable housmg is also consistent WIth the City's long-standmg commitment to achIeve and mamtain a SUitable livmg environment mcludmg decent housmg for persons at all economiC levels This mumclpal commitment conforms with State and Federal pohcies and IS a principal goal of the City's recently adopted 1998-2003 Housing Element Update (h) The CIty has lustoncally effectuated this conumtment through extraordmary efforts mamfest ill vanous City laws, pohcies and programs For mstance, the Ctty's voters have adopted mItlatlve measures whIch stnve to mamtam and promote affordable housmg in the CIty The Rent Control Charter Amendment, adopted m 1979, has as its pnmary purpose the protectton of affordable housmg and has histoncally been the CIty'S most Important legislative tool for maintaining the supply of affordable housmg Slmtlarly, PropositIOn R, adopted by the voters m 1990, mandates that tluny percent of all new multI-fanuly housmg umts constructed m the Ctty each year be affordable (i) The Citis zomng laws and pohcies also mclude substantIal mcentlVes for the productlOn of affordable housmg, mcludmg height and denSIty bonuses and reduced parkmg reqUirements In addltlOn, the CIty operates a number of programs which faclhtate the productlOn 3 of affordable housmg These mclude loans to private, for-profit developers and owners and fundmg to non-profit agenCIes to acqUire or construct affordable housmg units (J) Despite the CIty'S pnme locatlon and hIgh real estate values, the CIty has lustoncally been hIghly successful m mamtammg Its economic diversity According to the 1998-2003 Update, 23 percent of the City's households are very low mcome, 16 1 percent are low mcome, 207 percent are moderate Income, and 40 1 percent are upper Income Moreover, 53 percent of households resIdmg m rent-controlled apartments are very low- and low-mcome Tlus dIverSIty IS an essential element ofthe City's character It sets the CIty apart from all other snnilarly situated coastal CIties m Cahforma (k) However, notWlthstandmg the Cay's ongomg comnutment and efforts, changes m State and Federal law and market condItIOns are makmg It mcreasmgly dIfficult for the City to ensure a contmued supply of affordable housmg In 1986, the State enacted the EllIs Act wluch enables a property owner to cease operatmg property as residential rental property More recently, in 1995, the State enacted the Costa-Hawkms Rental Housmg Act whIch phases out linuts on the rents whIch a property owner may charge when re-rentmg voluntanly-vacated units Except m lllruted CIrcumstances, It ehminates the CIty'S abtlity to control the rent a property owner can Impose when a umt is mitIally rented Although the full Impacts of Costa-Hawkins will not be felt untd 1999 and the years thereafter, studIes prepared by the Santa MODlca Rent Control Board tracking the rent levels ofumts decontrolled as a result ofCosta-Hawkms demonstrates that these umts are already losmg theIr affordabIbty Thus, thIS law IS havmg and will contmue to have a slgmficant Impact on the CIty'S supply of affordable housing Moreover, there IS an extremely low vacancy rate for the eXlstmg rental housmg stock In addItIon, reductIOns m State 4 and federal fundmg for affordable housmg, changes In these programs, and the potential expIration of controls on rents m federally-aSSIsted projects all hmder the City's ability to proVide or promote affordable housmg In short, changes in State and federal law senously threaten the City'S eXIstmg affordable housmg stock The decline m the affordability of this housing stock IS further exacerbated by the productlOfi ofluxury market rate housing Given current economic condItions and the general deSirability of the City, the new housing costs Will only contmue to mcrease, thereby further exacerbatmg the growmg shortage of housmg affordable to very low- and lOW-Income households in the City (1) Cahforrua's HOUSIng Element law reqmres each City and county to develop local hOUSIng programs deSigned to address Its <<fair share" of eXIstmg and future housmg needs for all mcome groups The City's 1998-2003 Housmg Element Update establishes the City'S fair share at 3,219 housmg umts of whIch 1,369 (43%) should be affordable to very low- and low-mcome households (m) The Housing Element Update catalogues a dozen fundmg sources that the City uttllzes to asSist in the development of affordable housmg These substant131 resources are projected to assist In the development of 403 new units affordable to ]ow- and moderate- income households However, tlus represents only twenty-one (2]%) of the estimated need for new affordable housmg m the City as establIshed by the Cny's fair share Consequently, the total housmg needs ofthe CIty exceed the City's available resources and the City's ablhty to meet these needs The vast majority of housing umts have been and Will contmue to be produced by the pnvate housmg industry 5 (n) This Affordable Housing Production Program WIll benefit the City as a whole Each development which contnbutes to affordable housmg through the proviSions of this Chapter augments the CIty's housmg nux, helps to mcrease the supply ofhousmg for all economic segments of the community, addresses the affordable housmg need generated by the development, and thereby supports a balanced commumty whIch is benefiCial to the publtc health, safety and welfare of the City 9.56.020. Definitions. The followmg words or phrases as used 10 thiS Chapter shall have the following mearnngs Affordable Housing Fee A fee paid to the CJty by a multJfannly project apphcant pursuant to SectIOn 956070 of this Chapter to assist the City m the production ofhousmg affordable to very low- and low-mcome households Affordable Housing Unit A housmg umt developed by a mulufamIly project applIcant pursuant to SectlOns 9 56050 or 956060 of this Chapter whIch Will be affordable to very low- or lOW-Income households Dwelling Unit. One or more rooms, deSigned, occupied, or Intended for occupancy as separate living quarters, with full cooking, sleepIng, and bathroom facilities for the exclUSIVe use of a single household Dwelhng umt shall also Include smgle room occupancy units as defined 10 Santa Momca MUnIcipal Code SectIOn 9 04 02 030 790 Floor Area. Floor area as defined In Santa MOnica Mumclpal Code Section 9 04 02 030 3 15 HUD. The Umted States Department ofHousmg and Urban Development or Its successor 6 Income Eligibility. The gross annual household Income consldenng household SiZe and number of dependents, mcome of all wage earners, elderly or disabled famtly members, and all other sources of household income Industrial/Commercial District Any dlstnct designated in the Santa Moruca Zonillg Ordinance as a commercial or mdustrial dlstnct "Low," "Very Low," and "l\loderate" Income Levels. Income levels deternuned penodlcally by the City based on the Uruted States Department ofHousmg and Urban Development (HOD) estimate of median famtly mcome 10 the Los Angeles-Long Beach Primary MetropolItan Statistical Area The major mcome categones are "low-1Ocome" (sixty percent or less of the area median), "very low-mcome" (fifty percent or less of the area median), and "moderate-Income" (one hundred percent or less of the area median) Adjustment shall he made by household size as established by the City Market Rate Unit. A dwellIng umt as to which the rental rate or sales pnce IS not restncted by tlus Chapter Maximum Affordable Rent. A monthly housmg charge which does not exceed one- twelfth oftlurty percent of the maXimum very low-, low-, and moderate-mcome levels as defined m this Chapter and adopted each year by the CIty This charge shall represent full consideration for housmg services and amenities as proVlded to market rate dwellIng uruts in the project, whether or not occupants of market rate dwellIng umts pay separate charges for such services and amemtles Housmg services and common area amemties mclude, but are not lImited to, the followmg parking, use of common faclhues mcludmg pools or health spas, and utihties if the project IS master-metered Notwtthstandmg the foregomg, utility charges, to the extent 7 Individually metered for each urnt in the project, may be passed through or billed directly to the occupants of affordable housing units In the project In addmon to maximum allowable rents collected for those affordable hOUSing urnts Multifamily Project. A multlfamlly residential development, Including but not IInuted to apartments, condominiUms, townhouses, or the multifamily residential component of a mixed use project, for whIch CIty permIts and approvals are sought Multifamily Project Applicant Any person, firm, partnershIp, asSOCiation, joint venture, corporatiOn, or any entlty or combmatIOn of entItIes which seeks City development permits or approvals to developed a multifamily project Multifamily Residential District. Any dIstnct deSignated In the Santa Moruca Zomng Ordinance as a multifamily reSIdential dIstnct Parcel Parcel as defined In Santa Mornca Mumclpal Code Section 9 04 02 030 570 Vacant Parcel. A parcel in a multIfamIly resIdentlal dlstnct that has no residentIal structure located on It at the time that a multlfamIly project IS filed with the CIty'S Planmng Department No demolItIOn of structures shall be permItted except In accordance wIth Santa Monica MunicIpal Code Section 9 04 10 16 et seq 9.56.030. Applicability of Chapter (a) The obhgatlons establIshed by this Chapter shall apply to each multifamlly project for whIch a development applIcatIOn was deemed complete on or after March 1, 1998 mvolving the constructlOn of two or more market rate umts No buIldmg permit shall be issued for any multIfanuly project unless such constructIon has been approved In accordance WIth the standards and procedures provided for by thiS Chapter 8 (b) Multifamily projects for which a development application was deemed complete pnor to March 1, 1998 shall be subject to the prOViSiOns of Santa Monica Mumclpal Code SectIOn 9 28 et seq as they eXIsted on the date the apphcation for the project was deemed complete Section 9.56.040. Affordable Housing Obligation All multlfanuly project apphcants subject to the prOVISions of this Chapter pursuant to Section 956030 shall choose one of the followmg options to meet the requirements of this Chapter (a) Providing affordable hOUSing umts on-site m accordance with Section 956050 (b) ProVidmg affordable housmg umts off-sIte m accordance with SectlOn 9 56 060 (c) Paymg an affordable housmg fee In accordance with SectIon 956070 (d) AcqUiring land for affordable housmg m accordance With Section 956080 A multlfarruly project apphcatlOn wIll not be deemed complete until the apphcant has submitted plans and proposals which demonstrate the manner In wInch the requirements of this Chapter w1l1 be met Section 9.56.050. On-Site Option A multuarruly project apphcant may meet the affordable housmg obligatiOns established by this Chapter by proVidmg affordable housing umts on-site In accordance With the following requirements (a) The multlfamlly project applicant agrees to construct at least (i) twenty percent (20%) of the total umts ofa project for low-income households or (n) ten percent (10%) of the total units of a project for very-low Income households or (m) one hundred percent (100%) of the total units of a project for moderate-income households m an IndustnallCommercial District Any 9 fractIonal affordable housmg UnIt that result from the formulas of thIs subsectIOn (a) shall be treated as a whole affordable housmg umt (1 e any resultmg fraction shall be rounded up to the next larger integer) and that unit shall also be built pursuant to the prOV1Slons oftlus sectJon The Planmng and Community Development Department shall make avallable a hst of very low-, low-. and moderate-lllcome levels adjusted for household SIze, the correspondlllg maxImum affordable rents adjusted by number of bedrooms, and the minImum number of very low- or low-mcome umts reqUlred for tYPIcal sizes ofmulti-fannly projects, whIch hst shall be updated penodically (b) The multifamily project apphcant may reduce either the size or interior amenItIes of the affordable housing UnIts as long as there are not sIgnificant IdentIfiable dIfferences between affordable housmg units and market rate umts VISIble from the extenor of the dwelling UnIts, proVIded that all dwelllllg umts conform to the reqUlrements of the apphcable Buildmg and Housmg Codes However, each affordable housmg UnIt proVIded shall have at least two bedrooms unless (I) the proposed project compnses at least mnety-five (95%) one bedroom umts, exc1udmg the manager's umt, m which case the affordable housmg umts may be one bedroom, (11) the proposed project compnses at least mnety-five percent (95%) zero bedroom units, exc1udlllg the manager's umt, m which case the affordable housmg UnIts may be zero bedroom umts or (111) the proposed project compnses zero and one bedroom UnIts, excluding the manager's umt, in which case the affordable housing umts must be at least one bedroom umts The design of the affordable housing umts shall be reasonably consIstent WIth the market rate units in the project An affordable housmg UnIt shall have a minimum total floor area, dependmg upon the number of bedrooms provided, no less than the followmg 10 o Bedrooms 500 Square Feet 1 Bedroom 600 Square Feet 2 Bedrooms 850 Square Feet 3 Bedrooms 1080 Square Feet 4 Bedrooms 1200 Square Feet Affordable housing umts In multifamily projects of one hundred (100) umts or more must be evenly disbursed throughout the multifamIly project to prevent undue concentratIOns of affordable housmg umts (c) All affordable hOUSIng umts In a multifamily project or a phase ofa multIfamily project shall be constructed concurrently with the constructIOn of market rate units in the mulufamIly project or phase of that project (d) On-slte affordable hOUSing umts must be rental umts in rental projects In ownership projects, affordable hOUSing units may be either rental units or ownersrup umts Affordable housing ownersrup umts shall comply with requirements concerning sales price, montWy payment, and lirruted equity and resale restnctions as established by resolutIOn of the City CouncIl to ensure that subsequent purchasers are also Income-qualified households (e) Each multifamIly project apphcant, or his/her successor, shall submit an annual report to the City IdentIfYIng which umts are affordable umts, the monthly rent (or total housing cost If an ownership umt), vacancy informatIOn for each affordable umt for the prior year, venfication of Income of the household occupYIng each affordable umt throughout the prior year, and such other InformatIOn as may be required by CIty staff 11 (f) A multtfamlly project applicant who meets the reqUlrements of this Section shall be entitled to the densIty bonus development standards estabhshed m Santa MOnIca Municipal Code Section 9 04 10 14 040 (g) All residentIal developments provIdmg affordable housmg on-site pursuant to the provisIOns of this SectIOn shall receIve pnonty building department plan check processing by whIch housing developments shall have plan check review In advance of other pending developments to the extent authonzed by law Section 9.56.060. Off-site Option. A multlfanuly project applicant may meet the affordable housing obhgations established by thIS Chapter by providmg affordable housmg UnIts off-site tn accordance with the follOWIng reqUirements (a) The multIfamIly prOject apphcant shall agree to construct the same number of affordable housmg UnIts as specIfied m SectIOn 9 56 050 (b) The multifatmly project apphcant shallldentlfy an alternate sIte suitable for residential hOUSIng which the project apphcant eIther owns or has site control over (e g , purchase agreement, optIOn to purchase, lease) subject to City review to ensure that the proposed development is conSIstent with the City's housmg objectIves and projects (c) The off-SIte UnIts shall be located WIthIn a one-quarter mIle radius of the market rate units (d) The off-SIte umts shall satISfy the requirements of subsections (b )-(t) of SectIOn 9 56 050 12 ( e) The off-site Units shall not count towards the satisfaction of any affordable housing obligatIOn that development of the alternatiVe site with market rate Units would otherwIse be subject to pursuant to tlus Chapter (f) Exceptions to the location of the off-site umts specified m this SectiOn may be granted by the Plannmg CommiSSIOn on a case-by-case basis upon a showing by the multifanuly project applicant, based upon substantial eVIdence, that the locatiOn of off-site units m a location different from that spect:fied m this Section better accomphshes the goals of this Chapter, includmg maXimizing affordable housmg production and dispersmg affordable housmg throughout the City (g) The Housmg DIvIsion of the Resource Management Department shall prepare administrative gUIdelines to implement thiS Section Section 9.56.070. Affordable Housing Fee. A multifamily project apphcant may meet the affordable housmg obligatiOns established by thiS Chapter by paymg an affordable housmg fee in accordance with the following reqmrements (a) An affordable housmg fee may be paid m accordance with the followmg formulas (1) Multifamily Projects in Multifamdy ReSidential Districts Affordable housmg umt base fee X floor area of multifamtly project (2) Multlfamtly Projects m MultifamIly ReSidential Dlstncts on Vacant Parcels Affordable housing unit base fee X floor area of multifamily project X 75% (3) Multifamily Projects m IndustriaVCommercial Dlstncts on Parcels that are either not already developed With multifamily housing or are already developed With multlfamdy housmg, but the multifamily project preserves the eXlstmg 13 multifamily housing or a Category C Removal Perrmt has been obtained for the existing multIfamIly hOUSIng Affordable hOUSIng unit base fee X floor area of project devoted to residentIal uses X 50% (b) For purposes of this Section, the affordable hOUSIng urnt base fee may be established at least every two years by resolution of the CIty CouncIl The amount of the affordable housing fee that the multifamily project applicant must pay shall be based on the affordable housing umt base fee III effect at the tIme that the application for the multIfamIly project IS deemed complete (c) The amount of the affordable hOUSIng urnt base fee may vary by product type (apartment or condomInmm) and shall reflect, among other factors, the relationship between new market rate multl-faffilly development and the need for affordable houslllg and the Impact that the fee wIll have on the financIal return of multifamily project applicants (d) The fee shall be paId m full to the City pnor to the CIty grantmg any approval for the occupancy of the proJect- (e) The CIty shall deposit any payment made pursuant to this Section in a Reserve Account separate from the General Fund to be used only for development of very low- and low- Illcome housmg, admImstratlve costs related to the productIOn of this housmg, and momtonng and evaluatIon ofthls Affordable Housmg Production Program Any momes collected and mterest accrued pursuant to thIS Chapter shall be committed wlthm five (5) years after the payment of such fees or the approval of the multifamIly project, which ever occurs later Funds that have not been appropnated WIthIn thIS five year period shall be refunded on a pro rata share to those multIfamily project applicants who have pa1d fees dunng the penod Expenditures and 14 cmrumtments of funds shall be reported to the City Councll annually as part of the City budget process (f) An affordable housing fee payment pursuant to thIS Section shall not be considered provlSlon of affordable housing units for purposes of detenmrung whether the multifanuly project quahfies for a densIty bonus pursuant to Government Code SectIOn 65915 Section 9.56.080. Land Acquisition. A multlfamlly project applicant may meet the affordable housing obhgations estabhshed by tlus Chapter by making an irrevocable offer (a) dedlcating land to the Clty or a non-profit housmg provider, (b) selhng ofland to the CIty or a non-profit housing provider at below market value, or (c) optIonmg ofland on behalf of the City or a non-profit housing provlder Each of these optlOns must be for a value at least eqUivalent to the affordable housing obhgation othefWlse required pursuant to thIS SectIon The multifamIly project applIcant must Identify the land at the tIme that the development apphcatlon lS filed WIth the Clty Any land offered pursuant to this SectIOn must be located within one-quarter mile radlUS of the market rate umts unless the multifanuly project apphcant demonstrates that locatmg the land outSIde oftlus radius better accomplishes the goals of thIS Chapter, mcludmg m3X1mlzing affordable housmg productIOn and dispersing affordable housmg throughout the Clty The CIty may approve, conditionally approve or reject such offers subject to adnunistratIVe gUidelmes to be prepared by the Housmg Dlvislon of the Resource Management Department If the CIty rejects such offer, the multlfanuly project apphcant shall be reqUired to meet the affordable housmg obhgatIon by other means set forth ill this Chapter 15 Section 9.56.090. Fee waivers. The CondommiUm and Cooperative Tax descnbed in SectIon 676010 of the Santa Momca Mumcipal Code and the Park and RecreatIon Facilities Tax established m Chapter 680 of Article 6 of the Santa Momca Mumclpal Code shall be waived for required affordable housing umts and for low and vel)' low income dwelling umts developed by the City or Its designee using affordable housmg fees However, any multifamily project applIcant who elects to pay an affordable housmg fee shall not be eligible for any fee waiver under tills SectIOn Section 9.56.100. Pricing requirements for affordable housing units. The CIty Councll shall, by resolution, on an annual basis, set maximum affordable rents and maxtmum affordable purchase pnces for affordable housmg umts, adjusted by the number of bedrooms Such maximum affordable rents shall be set at rates such that qualified occupants for low mcome umts pay monthly rent that does not exceed thIrty percent of the gross monthly household mcome for households earnmg Sixty percent of the median income and that qualified occupants for very low mcome umts pay monthly rent that does not exceed thirty percent ofthe gross monthly household mcome for households earnmg fifty percent of the median Income Such maXimum affordable purchase pnce shall be set at rates such that qualified occupants for low mcome umts pay total monthly housmg costs (mortgage payment, property taxes, homeowners' msurance, property mortgage msurance, homeowners' assocIatIOn fees) that do not exceed thirty- eight percent of the gross monthly household mcome for households earmng Sixty percent of the median lUcome and that qualified occupants for very low mcome umts pay total monthly hOUSIng costs (mortgage payment, property taxes, homeowners' insurance, property mortgage insurance, 16 homeowners' associatiOn fees) that do not exceed thlrty-eight percent of the gross monthly household Income for households earning fifty percent of the median mcome Section 9.56.110. Eligibility requirements. (a) Only low-mcome and very low-income households shall be eligible to occupy or own and occupy affordable hOUSIng units The City shall develop a hst of mcome-quahfied households Multlfamtly project apphcants shall be required either to select households from the Clty- developed hst of income-qualified households or to themselves select income-quahfied households whIch shall be subject to ehgibihty certlficatlon by the City (b) The City shall develop adrmIDstratlVe guidelInes for the tenant and purchaser selection process detaIled m this Section, which shall estabhsh, at a rmmrnum, the tmung by winch affordable housmg urnts In a project must be leased or sold and occupied, both lrnttally after Issuance of the certlficate of occupancy for the project and upon subsequent vacancies in the affordable housmg urnt The guidelInes may also establish pnontles for Income-qualified tenants (c) The followmg IndiViduals, by VIrtue ofthelr position or relatlonshlp, are meligible to occupy an affordable hOUSIng urnt (1) All employees and officlals of the City of Santa Mornca or its agencies, authonttes, or commiSSiOns who have, by virtue ofthelr pOSItIon, pohcy-makmg authonty or mfluence over the ImplementatIOn ofthIs Chapter and the lmmedlate relatives and employees of such City employees and officials (2) The Immediate relatives of the applicant or owner, mcludmg spouse, children, parents, grandparents, brother, Sister, father-In-law, mother-In-law, son-in-law, daughter-In-law, aunt, uncle, mece, nephew, slster-In-law, and brother-m-law 17 Section 9.56.120. Relation to units required by Rent Control Board. Vel)' low-mcome and low-income dwellmg uruts developed as part ofa market rate project, pursuant to replacement reqUIrements of the Santa Maruca Rent Control Board, shall count towards the satisfaction oftlus Chapter If they otherwise meet applicable requirements for tlus Chapter mcludmg, but not limited to, the mcome eligibility reqUirements, deed restnctlOn reqUirements, and pncmg requirements New mcluslonary umts required by the Rent Control Board which meet the standards of this Chapter shall count towards the satlsfactlOn of tlus Chapter Section 9.56.130. Deed Restrictions. Pnor to issuance of a buildmg permit for a project meetmg the requirements oftrus Chapter by providmg affordable umts on-site or off-site, the multifamily project applicant shall subrmt deed restnctlons or other legal mstruments settmg forth the obligation of the applIcant under this Chapter for City review and approval Such restnctlons shall be effective for at least fifty-five years Section 9.56.140. Enforcement. No building permit or occupancy perrmt shall be Issued, nor any development approval granted, for a project which ]s not exempt and does not meet the requirement of this Chapter All affordable housing units shall be rented or owned in accordance With tlus Chapter Section 9.56.150. Annual Report. The Housmg DiVision of the Resource Management Department shall submit a report to the City Councd on an annual basts which shall contam mformatlOn concerrung the Implementation of thiS Chapter ThiS report shall also detaIl the projects that have received 18 planmng approval dunng the preVlOUS year and the manner in wInch the provIsions of tins Chapter were satIsfied This report shall further assess whether the provIsIOns of ProposItIon R have been met and whether changes to this Chapter or Its ImplementatIon procedures are warranted In the event the provislOns of Proposition R have not been met, the City Councd shall take such action as IS necessary to ensure that the provisIOns WIll be met in the future This actIOn may Include. but not be lmuted to. amendmg the proVlsions oftrus Chapter or Its ImplementatlOn Section 9.56.160. Principles and Guidelines. (a) In additIon to the administrative gUIdelines specIfically reqUIred by other provislOns of tlus Chapter, the CIty Manager or Ins or her designee shall be the designated authority to develop and Implement rules and regulations pertaining to this Chapter, to enter into recorded agreements WIth multIfamIly project apphcants, and to take other appropnate steps necessary to assure that the reqUIred affordable housmg units are proVIded and are occupIed by very low- and low-income households (b) Withm one year from the passage of thiS Chapter. administratIve rules and regulatlons pertaining to this Chapter shall be brought before the CIty Councd for adoption SECTION 2 Chapter 9 28 of the Santa Monica MUruClpal Code is hereby repealed in ItS entIrety and the implementation gUIdehnes adopted pursuant to Chapter 9 28 are reSCInded to the extent that the gUIdelInes are mconsistent with the proVlslons of thIS Chapter SECTION 3 Any proviSIOn of the Santa Moruca Muruclpal Code or appendices thereto inconSIstent WIth the proVISIons of this Ordmance, to the extent of such InCOnSistencies and no 19 further, IS hereby repealed or modified to that extent necessary to effect the provisions of this Ordmance SECTION 4 If any section, subsectton, sentence, clause, or phrase of this Ordinance is for any reason held to be InvalId or unconstItutional by a deCISion of any court of competent junsdIctlOn, such decision shall not affect the validity of the remalmng portions of this OrdInance The City CouncIl hereby declares that it would have passed this Ordmance and each and every section, subsection, sentence, clause, or phrase not declared Invalid or unconstitutional without regard to whether any portlOn ofthe ordmance 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 m the officIal newspaper wlthm 15 days after ItS adoption This Ordmance shall become effective 30 days from Its adoption APPROVED AS TO FORM {I~~huuALe MARSHA JONES MOUTRIE Ctty Attorney 20 ;;/L./ ~ Robert Holbrook, Mayor State of CalIforrua ) County of Los Angeles) ss CIty of Santa MOllIca ) I, Mana M Stewart CIty Clerk of the CIty of Santa MOllIca. do hereby certify that the foregomg Ordmance No 1918 (CCS) was mtroduced on July 14, 1998 and adopted on July 21. 1998 by the tollowmg vote Ayes CouncIl members Femstem, Genser, O'Connor, Rosenstem Noes CouncIl members Ebner. Greenberg, Holbrook Abstam CouncIl members None Absent CouncIl members None ATTEST --~hP~ .'.~Lu n~~~ Mana M Stewart. CIty c1erk