O1947
f \atty\munI\laws\barry\moratora 4 wpd
City Council Meeting 6-29-99
Santa Monica, Callforma
ORDINANCE NUMBER 1947 (CCS)
(City Council Series)
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA EXTENDING THE MORATORIUM ON MULTI-FAMILY RESIDENTIAL
DEVELOPMENT IN THE CITY'S MULTI-FAMILY RESIDENTIAL DISTRICTS;
DECLARING THE PRESENCE OF AN EMERGENCY
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS
SECTION 1 Fmdlngs and Purpose The Council finds and declares
(a) Drastic changes In state law and the local economy have propelled the City to
a crossroad In Its history at which the City must now pause to ensure that Its land use laws
and poliCies are adequate to ensure Its future welfare
(b) The gravity of thiS Situation IS greatly Intensified by the fact that Santa MOnica
has much to lose Located at the western edge ofthe Los Angeles basin, the City affords
a unique combination of natural splendors -- broad beaches, stunning Views, mild weather
and clean air -- together with sophisticated urban amemtles and a community scale that
respects both the natural environment and JndJvldual needs. All thiS eXists In a very small
space -- Just eIght square mIles
(C) In that small space, the City teems with activity It IS home to 90,000 residents;
and Its population density, 11,200 persons per square mile, IS the highest among coastal
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commumtles In Los Angeles County Santa MOnica IS also the workplace for approximately
155,000 workers and a destinatIon for as many as 400,000 dally VISitors Thus, extreme
density complicates planning efforts and makes preservation of the quality of life a difficult
challenge
(d) Moreover, planning dIfficUltIes are exacerbated by the fact that the CIty IS fully
bUilt-out and has been so for decades As of November 1995, there were only Slxty~twO
(62) vacant residential parcels out of approximately 6,132 multi-family zoned parcels in the
entire City. Since then, even this limited number of vacant parcels has shrunk Thus,
planning flexibility IS limited by the reality that residential development In the City's
resIdentIal dIstricts means change -- not expansion -- and VIrtually any new project or
construction replaces an eXisting structure or Improvement
(e) Planmng difficulties are most acute In the multi-family districts which are the
largest and densest In the City Santa MOnica has the highest percentage of land zoned
multi-family resldentral among westslde/south bay jurisdictions Permitted densities In
these zones range from approximately 29 unIts to approximately 48 Units per acre As
a result of these standards, the vast majority of City residents live In multi-family dwellings
Most of them live In the City's 37,000 apartment Units
(f) In the past, the dynamiC created by competing demands for use of a small,
chOice space has brought the City to crossroads on other occasions I n the late 1970's,
the City faced a severe shortage of rental housmg precipitated In part by a "DemolitIon
Derby" -- a fifteen (15) month period dUring which over 1,300 rental hOUSing units were
demolished and hundreds of others were converted Into condomIniums These hOUSing
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unrts were removed from the market at ten (10) times the rate of removal (relative to
populatIon) of Los Angeles
(g) The City Council wrestled wIth the polley Issues raIsed by the DemolitIon Derby
but could not resolve them. So the voters took control. They amended the City Charter by
adoptmg a stnngent Rent Control Law The law Imposed strict controls on rents, which
applied even when Units were vacated, and restncted the demolition or converSion of
controlled Units Legal challenges ensued, but the courts upheld the law as a legitimate
exercise of the City's pollee power to provide for the health, safety and welfare of its
reSidents
(h) The Rent Control Law had the effect of limIting change In the multi-family areas
of the City In the years follOWing Its adoptlon ofthe Rent Control Law, the CIty maintamed
a stable and dIverse residential population, and the multi-family neighborhoods retaIned
their basIc character and scale. Most structures In these neighborhoods are one or two
stories high Many have gardens, lawns or courtyards Thus, despite their density, these
neighborhoods retained a unique sense of space, greenery and light condUCive to human
mteractlon and qUietude. The streets In the reSIdential neighborhoods were "pedestnan
fnendly". A City survey showed that walkmg became City reSidents' favonte recreational
activity
(I) Meanwhile, in the years following the adoption ofthe Rent Control Law, the rest
of the CIty developed and changed rapIdly In the single famIly dlstncts, housing prices
skyrocketed. By the early 1980's even older, very small homes in the R-1 District were
selling for $250,000 or more. Prices dipped In the early 1990's, and shot upwards again,
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making It virtually impossible for low or moderate income families to pu rchase homes In the
R-1 District
0) At the same time, the numbers of workers coming to the City each day swelled
as multi-story office parks were built In the central city Moreover, commuter numbers will
mcrease dramatically as new multi-story office bUlldmgs are completed dunng the next two
years. Additionally, as the City shifted ItS revenue base to hotel taxes, many large new
hotels were built, and the City became an internationally acclaimed vacation spot hosting
approximately 2,355,000 VISitorS In 1997.
(k) Thus, the City boomed and became ncher and more crowded, but the multi-
famIly residential neighborhoods remained relatively qUiet and stable consldenng their
density Accordmgly, for years, a balance was struck between residential and commercial
mterests which preserved the character ofthe City's multi-family residential neighborhoods
but allowed the City to flourish economically
(I) In 1994, natural disaster swept the CIty Into a penod of transition. On January
17th, the City suffered widespread damage to both Its resIdential and commercial distncts
as a result of the Northndge earthquake. The earthquake rendered approximately 3,100
dwelling umts UninhabItable and damaged thousands of other properties thus necessltatmg
substantial rebUilding. However, the balancing of residentIal and commerCIal Interest
remained unchanged.
(m) Recent changes in state law destroyed this balance. In 1996, in response to
Intense lobbYing efforts by landlords and real estate developers, the State Legislature
drastIcally restricted local control of hOUSing polIcy by adoptIng the Costa-Hawkins Rental
HOUSing Act of 1995 ("Costa-Hawkins"). Costa-HawkinS weakens local rent control by
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phasing In mandatory vacancy decontrol, which became fully effective In January of this
year. This Signaled the end of local rent control as It had eXisted for almost twenty years
In Santa Momca. It also threw the community into a penod of extreme uncertamty as the
potential for radical change loomed large
(n) Costa-Hawkins has already had a dramatic Impact on the City's housing stock
Between January 1 and May 15, 1999, thirteen hundred and forty-four (1344) vacancy
regIstrations have been processed by the Rent Control Board These regIstration forms
set forth the new rent for Units decontrolled by Costa-Hawkins. The vacancy increases
have resulted In the loss of 855 Units affordable to low Income households If vacancy
regIstratIons contrnue to be filed at the same rate, it IS estImated that almost 2400 Units that
had been affordable to low Income households Will be lost. ThiS fIgure represents, In one
year, a CitYWide loss of approXimately 10% of the Units that had been affordable to low
Income households.
(0) This loss of affordablllty has a number of senous repercussions. At a time when
the demand for affordable hOUSing already exceeds supply, the additional loss of
affordable housmg Will only serve to exacerbate thiS problem Low Income households
WIll face almost Insurmountable odds In securing affordable housing and such housing WIll
not be available to new low Income households seeking to move mto the City Individuals
presently working In the City Will find It increasingly difficult to find affordable housing The
new Jobs that will be created by the additIonal commercIal development ongoIng In the CIty
Will only serve to aggravate thiS housing crisis by generating additional demands on this
limited supply of hOUSing The result Will be that these workers will be forced to live in more
distant communities and commute to Santa MOnica ThiS trend WIll add to the already
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heavy burden on the region's congested streets and overtaxed transportation system The
loss ofthls housing will also result In Increased over-crowding forthose individuals who are
unable to secure larger affordable unIts as their need for such umts develop
(p) At the same time as Costa-Hawkins was phasing in, the City was experiencing
a time of unprecedented economic boom Land values were skyrocketing again In the
single family neighborhoods, small lots sold for sums ranging from hu ndreds of thousands
of dollars to a mIllion or more. During the six month penod from November 1998 through
May 1999, the average two-bedroom house sold for almost $566,000 00 while the average
three bedroom house sold for over $756,000. The burgeoning economy Impacted the
multi-famIly development as well. Between 1996 and 1997, the number of multi-family
housing Units approved for construction almost tripled. Prior to that time, the three year
average was under 80 new Units per year. In 1997 the number Jumped to 234 (excluding
one enormous and highly unusual proJect of 351 Units)
(q) Along With the economic boom and acceleration in building came a dramatic
shift In demographics The vast maJonty of new, privately bUilt Units were for upper Income
purchasers These new housing developments have committed scarce land resources to
proViding luxury housing whIch IS un affordable to most reSidents of the City. Moreover,
market conditions, Including the high cost of residential land, construction costs, and the
availability and cost of finanCing, make the development of affordable housing In the City
extremely dIfficult
(r) WIthout a contmuatlon of the moratorium, planning approvals for multi-family
construction would substantially exceed the rate approved last year Accelerated
development Impacts the City as a whole and also Impact the dally lives of reSidents who
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must cope with the nOise and Interference caused by construction undertaken In a
crowded, fully developed community. ConstructIon matenals and eqUIpment are often
placed In the roadway and/or on sidewalks, thereby obstructing both vehicular and
pedestrian traffic Neighborhood aesthetics suffer
(s) A significant amount of the City's residential hOUSing stock was built pnorto the
1960's Parcels developed with older structures tend to be developed at densities and
heights that are lower than what IS currently allowed by zoning Given these conditions
and the booming economy, there IS a high likelihood that Without a continuation of the
moratonum, a significant amount of construction would occur In the City With its attendant
disruption to residents' peace and qUiet enjoyment.
(t) The redevelopment of these currently underdeveloped properties at greater
height and densities would also result In the loss of views and light and could pose a threat
to the existing character of neighborhoods and the City's unique natural environment
(u) There IS also a significant shortage of reasonably available and convenient
parking spaces In these reSidential dlstncts. ThiS IS demonstrated In part by the large
number of preferential parking dlstncts that have been established by the City and the
continued demand for the creation of new preferential parking dlstncts Given the growing
affluence of the commumty, Increased development may exacerbate an already
unacceptable level of parking problems.
(v) In order to address the changes resulting from Costa-Hawkms and from the
economiC boom, in part, the City undertook a reVISion of ItS hOUSing policies through the
process of amending the City'S HOUSing Element ThiS was a difficult process State
HOUSing Element law purports to require Cities to continually proVide new hOUSing
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However, Santa Monica IS fully bUilt out and committed to neighborhood preservation
Despite this problem and an additional problem caused by the State's failure to supply
RHNA numbers, Santa MOnica completed the amendment process last summer, and the
State approved its amendment. The Housing Element establishes the City'S fair share at
3,219 housing u nits and ItS quantified obJective at 1,542 housing units These objectives
are based exclUSively on the construction of new housing
(w) After the City completed reVISions, the State again changed the law ThiS time,
the State amended the Housing Element law to allow CIties to count rehabilitated units In
meeting their "fair share" of hOUSing opportunitIes ThiS change has maJor significance for
Santa Monica because the City has an aging hOUSing stock and a strong commitment to
neighborhood preservation Accordingly, consistent with local policies favonng
preservatIon, the CIty needs the opportunIty to evaluate whether thIS change In state law
affords new opportunities for the City to fulfill its own goals. ThiS process Will take some
time because the state law which allows the counting of rehabilitated units IS complicated
and difficult to utilize
(x) Maintaining the unique character of Santa MOnica's neighborhoods IS Important
for many reasons First, City reSidents value their neighborhoods The preservation of
neighborhoods promote a sense of place and loyalty from residents It proVides reSidents
with qUiet enJoyment In their homes and a community which eXists on a pedestrian friendly
scale. DeSIgn and development standards whIch are sensitIve to existmg neighborhood
conditions can further environmental and social goals. Preservation of existing
neighborhoods can serve to maintain the City's supply of affordable housmg and ItS
architectural diverSity Meanwhile, workers need good traffic cIrculation, adequate parking
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and perhaps even places to live. Tourists expect to recreate In an aesthetically appealing
community whIch combmes entertainment opportunities with small town warmth and
charm.
(y) The City must address the very difficult question of how to balance these
competing demands and fulfill ItS legal responsibility to provide affordable housing In new
ways The method which worked for twenty years has been eviscerated by State action.
Time IS needed to expeditiously evaluate the new option for rehabilitation supplied by state
law
(z) In light of the above-mentioned concerns, the City Council adopted Ordinance
Number 1944 (CCS) on May 25, 1999 which established a moratonum on multi-family
development In the City's multi-family reSidential dlstncts with specific exceptions
However, that ordinance will expire on July 9. 1999
(aa) For the reasons descnbed above, the City Council finds that another Interim
ordinance IS necessary because the continuing development of multi-family housing In the
City'S reSidential zones prior to the comprehensive revIew of the City's housing and land
use policies and regulations presents a current and Immediate threat to the public peace,
health, safety, and welfare If urgent action IS not taken, Irreversible development activity
will continue unabated, thereby commItting scarce land resources to development that is
not In the best Interests of the reSidents of the City. The approval of additional multi-family
housmg development In the CIty's multI-famIly housing dIstricts, WIth limited exceptIon,
pending the City's review of ItS housing and land use poliCies and regulations would result
In a threat to the public health, safety, and welfare Consequently, thiS ordinance extends
the proVIsions of Ordinance 1944 up to and including March 28, 2000 to provide the City
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sufficient time to further evaluate the effects of the substantial increase In the rate of
development In the City's multi-family zones and the City's loss of affordable housing and
to develop appropriate requirements and programs to preserve the City's character,
diversity, and quality of life In this period of drastic change
SECTION 2. Moratonum
(a) Subject to the exemptions set forth In Section 3 of this Ordinance, a moratorium
IS hereby placed on the acceptance for processing of any applications for approval of
tentative tract maps, tentative parcel maps, administrative approvals, development review
permits, and conditional use permits, for any residential bUilding or structure, including any
hotel or motel, on properties located In multi-family residential districts In the City. For
purposes of thiS Ordmance, the multi-family residential distncts m the City are" R2R, R2,
R3, R4, RVe, RMH, OPDuplex, OP2, OP3, OP4, NWOverlay, R2B, and R3R
(b) SubJect to the exemptions set forth In Section 3 of thiS Ordinance, the Planning
Commission and City staff are hereby directed to disapprove all applications which have
not been deemed complete as of May 25, 1999, for tentative tract maps, tentative parcel
maps, administrative approvals, development review permits, and conditional use permits
for any residential bUilding or structure, including any hotel or motel, on properties located
In multi-family reSidential districts In the City.
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SECTION 3 Exemptions The following applications are exempt from the
provIsions of Section 2 of thiS Ordinance
(a) Applications for approval of permits involVing the erection, construction,
enlargement, demolition or moving of, and excavation and grading for any multiple
dwelling development Intended for rental housing for persons of low and moderate Income
and whIch development IS financed by any federal, state or City housmg assistance
program or owned by any non-profIt organizatIon, provided the DIrector of Planning
determines that such development IS In conformance With the General Plan and the ZOning
OrdInance and provided a deed restriction IS recorded restricting the development to such
purpose
(b) Apphcatlons for approval of permits involVing the erection, constructIon, and
excavatlon and grading for an additional residential dwelling Unit on a Site, which as of May
25, 1999, was developed with and will maintain an eXisting single family home
(c) Applications for approval of permits Involving the erection, construction,
enlargement of, and excavation and grading for, a project which will be developed on a site
that was vacant as of May 25, 1999
(d) Applications for approval of permits involVing the erection, construction,
enlargement, demolition or moving of, and excavation and gradIng for a project which will
be developed on a site whIch contams structures that are unmhabltable and which cannot
be rendered habitable In an economIcally feaSIble manner
SECTION 4. ThiS ordinance IS declared to be an urgency measure adopted
pursuant to the proVISion of Section 615 of the Santa MOnica City Charter. As set forth
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In the findings above, this ordinance IS necessary for preserving the public peace, health,
safety, and welfare
SECTION 5 This Ordinance shall be of no further force and effect after March 28,
2000, unless prior to that date, after a public hearing, noticed pursuant to Santa Monica
MUnicIpal Code SectIon 9.04.20.22.050, the CIty Council, by majority vote, extends thIs
Interim Ordinance
SECTION 6 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, IS hereby repealed or modified to that extent necessary to
effect the provisions of thiS Ordinance
SECTION 7. 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 competent JUrisdiction, such decIsIon shall not affect the validity of the remaining
portIons ofthls 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 8 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
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newspaper wIthIn 15 days after Its adoption This Ordinance shall become effectrve upon
Its adoption
APPROVED AS TO FORM
^\.flUj~ ~~h' -~~
MARSHA J~UTRIE
City Attorney
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Adopted and approved thIS 29th day of June, 1999
~.02'1
p~ O'Connor, Mayor
State of Cabforma )
County of Los Angeles ) ss
City of Santa Momca )
I, Mana M Stewan, CIty Clerk of the City of Santa Momca, do hereby cenlfy t.ltat the
foregoIng OrdInance No 1947 (CCS) had Its IntroductIOn and adoptIOn on June 29. 1999,
by the followmg vote.
Ayes
CouncIl members McKeown, FemsteIn, Bloom,
Mayor Pro Tern Genser, Mayor O'Connor
Noes
CouncIl members Rosenstem
Abstam
Council members None
Absent
CouncIl members Holbrook
c.. ATTEST ~
-~~~~
Mana M Stewan, CIty '&e~--
-;.