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O1969 f:\atty\mun i\laws\barry\construc-1. wpd Council Mtg: April 11 , 2000 Santa Monica, California ORDINANCE NUMBER 1969 (CCS) (City Council Series) AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA EXTENDING THE CONSTRUCTION RATE PROGRAM FOR MULTI-FAMILY DEVELOPMENT IN ALL MULTIFAMILY RESIDENTIAL DISTRICTS AND THE DESIGN COMPATIBILITY PERMIT REQUIREMENT FOR THE DEVELOPMENT OF CONDOMINIUMS AND OTHER MULTI-FAMILY HOUSING; 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 May 25, 1999, the City Council adopted a moratorium on multi-family development in the City's multi-family districts in response to dramatic changes in state law, a substantial increase in the rate of development, and an unprecedented loss of affordable housing. (b) The specific factors compelling the moratorium adoption are detailed in Ordinance Number 1944 (CCS) and Ordinance Number 1947 (CCS) and include the following: the unprecedented economic boon in which land values have skyrocketed and the rate of multi-family construction tripled, the detrimental consequences of this construction rate which impacted the City as a whole and the daily lives of residents who had to cope with the noise and interference caused by construction, the significant shift in the City's demographics occurring due to the vast majority of new, privately-built units only being affordable to upper income individuals, the adoption of the Costa-Hawkins Rental Housing Act of 1995 which has severely weakened local rent control and resulted in a dramatic reduction in the City's affordable housing stock, and the threat posed by these dramatic changes to the existing character of the City's neighborhoods and its unique natural environment. (c) The City Council adopted this moratorium to provide the City sufficient time to ____1.._.1._ LL.~ ~U__..._ _& .1.1-:.- 1-:-..'- __1._ ...... -1.....,.......1.....__..........4. __....I "'......... "':.....1.... 1........._ _+ .....U.........J..........I..... eVClIUClle 1I1e t:1lt:l.,;l::i UI 1I11::i III!:)" ICllt: UI Ut:Vt::IUf-'IIIt::'ll C1IIU lilt:: \JllY::> IU::>::> UI C1IIUIUClUIt:: 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. (d) The City Council has twice extended this moratorium. (e) In adopting the moratorium, the City Council directed staff, in part, to evaluate the growth in the rate of construction in multi-family neighborhoods and assess appropriate responses. (f) Program 7.f of the City's 1998-2003 Housing Element also requires that the City monitor the rate of development activity in multi-family residential districts so as to ensure that rapid development does not jeopardize the character of the neighborhoods and negatively impact the quality of life. (g) This program further provides that if the rate or pattern of development appears to negatively affectthe quality of life or character of neighborhoods, the City Council should consider enacting a construction rate program. (h) A !':innifir.::lnt inr.rFl::l!':Fl in thFl IFlvFlI nf mlllti-f::lmilv riFlvFllnnmFlnt ::ldivitv h::l!': \../ . ~ _.,;;;J....._~... ..._._~-- ... ~..- .---. -. ...-... .-.....J ----.-.--...-... --.....J ..-- occurred in the City's multi-family residential districts. Monitoring the rate of development activity in multi-family residential districts reveals that the rate of development in 1999 (16 2 projects) represents a 246% increase over the rate in 1998/1997 (6 and 7 projects respectively) and a 533% increase over the rate in 1996 (3 projects). Based on current data, the rate of development in 2000 is anticipated to surpass the development rate of 1999. As of January 27, 2000, there were 32 projects in various stages of the permitting process. It is anticipated that 22 of these projects will be issued building permits this year. (i) Upon expiration of the moratorium on May 17, 2000, it is anticipated that the number of applications for multi-family condominium projects will be substantial. U) It is not simply the rate of development which threatens the City's character and quality of life, but also the new development's lack of compatibility with and relationship to existing development and neighborhoods. (k) The City currently requires approval of a Conditional Use Permit ("CU P") for the development of condominiums. (I) A CUP is intended to allow the establishment of those uses which have some special impact or uniqueness such that their effect on the surrounding environment cannot be determined in advance of the proposed use and its particular location. (m) In conjunction with the preparation of the 1998-2003 Housing Element Update the City determined that it should eliminate the requirement that condominium projects obtain a CUP since it is generally not the condominium use that is at issue in the City's review of residential condominium applications; instead, the City determined it should evaluate other procedures which would achieve an appropriate level of design review so as to ensure that the physical development is compatible with and relates harmoniously to the surrounding sites and neighborhoods. 3 (n) In light of this policy and to ensure that condominium development does not threaten the existing character and scale of the City's neighborhoods, the City has determined that it should replace the conditional use permit requirement for condominium projects with a design compatibility permit. The cost of processing this permit will be the same as the costs of processing a CUP. Consequently, the fee for the design compatibility permit will be the same as the fee currently charged for a CUP. (0) In light of these concerns, the City Council adopted Ordinance Number 1966 (CCS) on March 7, 2000 which established the construction rate program, established a design compatibility permit and required a design compatibility permit for condominium development. However, that ordinance will expire on April 21, 2000. (p) The City Council finds and declares that the public health, safety and general welfare require the extension of Ordinance 1966 (CCS) to avert the negative impacts of construction such as traffic circulation, noise, neighborhood aesthetics and pedestrian enjoyment of City streets, to continue a construction rate program which minimizes the disruptive effects of the construction process on the neighborhood by limiting the number of projects in close proximity to each other which can be constructed at anyone time through regulating both the timing and distribution of construction projects through the building permit approval process to establish a design compatibility review process for condominiums to ensure that the physical development is compatible with and relates harmoniously to the surrounding sites and neighborhoods. (q) For these reasons, the City's zoning and planning regulations should be revised as they pertain to condominium design review and the rate of construction to ensure that development is consistent with the public health, safety and welfare. 4 (r) Pending completion of these permanent revisions, in order to protect the public health, safety, and welfare, it is necessary to continue on an interim basis to change current development standards as they relate to the rate of construction in the City's multi- family distri'cts and the review of condominiums projects. Consequently, this ordinance extends the provisions of Ordinance 1966 (CCS) up to and including October 11, 2001. (s) These interim standards will serve to preserve the existing character of the City's multi-family districts and prevent any further disruption caused by increasing development in these districts while ail owing deveiopment consistent with these standards to occur. (t) As described above, there exists a current and immediate threat to the public safety, health, and welfare should the interim ordinance not be adopted and should development inconsistent with the contemplated revisions to the development standards be allowed to occur. Approval of additional development inconsistent with the following proposed interim standards would result in a threat to public health, safety, or welfare. Therefore, it is necessary to establish on an interim basis the following development standards. SECTION 2. Construction rate proqram. (a) For projects involving the new construction or substantial remodel of two or more dwelling units in all multi-family residential districts in the City for which a development application was deemed complete on or after March 7, 2000, only one such construction project shall be allowed per block and this construction project must not be within a five hundred foot radius of another construction project subject to this Section. Except as provided in subsection (c) of this Section, this restriction shall apply for eighteen months 5 after issuance of a building permit, after which time another project may begin construction in the defined area. For purposes of this Section, a block is defined as parcels on both sides of the street in the same block face, and includes adjacent parcels separated by a street or alley. The multi-family residential districts in the City are: R2R, R2, R3, R4, RVC, RMH, OPDuplex, OP2, OP3, OP4, NWOverlay, R2B, and R3R. (b) Building permits shall be provided on a first come first served basis in .......................................... ....:.a.L-. +1.-........ +.......--.,.. _~ +h:.... co..............:........ 1\1....... "".........Ii,...,."...:........ .f....... .... &-..II:I,..,Ii.....,.... __..........i+ ....h.....,,1I h...... d\A...VIUdlll."C YVIlII lilt; lelll'" VI 1.111" ...::JCvLlUII. ."tv CltJtJlI\..oClllUII IVI C1 IJUIIUIII~ tJClIlIll ;:JIIClII UC; accepted for fijing or otherwise processed by the Building and Safety Division unless the applicant provides documentation on forms provided by the City that the project has received all other city or state approvals or permits necessary to commence the project, with the exception of building and sewer allocation permits. (c) During the plan-check process, the Building and Safety Division shall determine the status of other building permits for projects in the area. A building permit shall not be issued when the Building Officer determines that a building permit has been issued in the previous eighteen months for any other project on the same block or within a five hundred foot radius of the subject property unless the owner of the previously permitted project has formally relinquished the building permit for that project. (d) If the Building Officer determines that another building permit has been issued less than eighteen months prior to the date on which the building permit has received all plan-check approvals, the Building Officer shall place the project on a waiting list in order of the date and time of day that the permit application received all plan-check approvals. The life of other City approvals or permits necessary to commence the project shall be automatically extended by the amount of time that a project remains on the waiting list. The 6 Building Officer shall approve the project in accordance with the Uniform Technical Code in effect at the time of the plan check. (e) The following projects shall be exempt from the construction rate program: (1) Affordable housing projects in which one hundred percent of the units are deed- restricted for very low, low, middle, and/or moderate income housing. (2) Structures identified by the Building and Safety Division as unreinforced masonry construction and subject to City-mandated seismic upgrading. (3) Projects that will be developed on sites that are vacant. (4) Projects which will be developed on sites which contain structures that are uninhabitable, not as a result of the owner's failure to maintain the structure, or the property of which the structure is a part, in good repair, and which cannot be rendered habitable in an economically feasible manner. (f) The Planning and Community Development Department shall develop administrative guidelines implementing this Section. SECTION 3. Permits Required for Condominium Proiects. All new or converted residential and commercial condominiums, community apartment projects, stock cooperatives, and cooperative apartments for which a development application was deemed complete on or after March 7, 2000 shall conform to the provisions of this Section establishing a Design Compatibility Permit, Santa Monica Municipal Code Section 9.04.16.01.030 establishing additional minimum requirements for condominiums and Santa Monica Municipal Code Chapter 9.20 establishing the requirements for preparation, review, and approval of a subdivision map. 7 (a) Purpose of Desian Compatibility Permit. A Design Compatibility Permit is intended to allow the construction of condominiums and other multi-family ownership housing to ensure the design and siting of the projects do not result in an adverse impact on the surrounding neighborhood. The permit allows for: (1) Review of the location, size, massing, and placement of the proposed structure on the site and in relation to the surrounding neighborhood; (2) Review of the location of proposed amenities within the project. (3) An evaluation of the project with regard to fixed and established standards. (b) Application for a Desian Compatibility Permit. An application for a Design Compatibility Permit shall be filed in a manner consistent with the requirements contained in Santa Monica Municipal Code Part 9.04.20.20, Sections 9.04.20.20.010 through 9.04.20.20.080. (c) Hearina and Notice. Upon receipt in proper form of a Design Compatibility Permit application, a public hearing before the Planning Commission shall be set and notice of such hearing given in a manner consistent with Santa Monica Municipal Code Part 9.04.20.22, Sections 9.04.20.22.010 through 9.04.20.22.140. (d) Findinas. Following a public hearing, the Zoning Administrator shall prepare a written decision which shall contain the Planning Commission's findings of fact upon which such decision is based. The Commission, or City Council on appeal, shall approveor conditionally approve a Design Compatibility Permit application in whole or in part if all of the following findings of fact can be made in an affirmative manner: 8 (1) The physical location, size, massing, and placement of proposed structures on the site and the location of proposed amenities within the project are compatible with and relate harmoniously to surrounding sites and neighborhoods. (2) The physical location, size, massing, placement of proposed structures on the site, and parking access and the location of proposed amenities within the project would not be detrimental to the public interest, health, safety, convenience, or general welfare. (3) The rights-of-way can accommodate autos and pedestrians, including adequate parking and access. (4) The health and safety services (police, fire etc.) and public infrastructure (e.g., utilities)are sufficient to accommodate the new development. (5) Reasonable mitigation measures have been included for all adverse impacts identified in an Initial Study or Environmental Impact Report. (6) The proposed use conforms precisely to the minimum requirements outlined in Section 9.04.16, Subchapter 9.04.16.01.030. (e) Term of Permit. The Design Compatibility Permit shall expire if the rights granted are not exercised within the period established by the Planning Commission or City Council on appeal as a condition of granting the Design Compatibility Permit, or, in the absence of such established time period, either within one year, or if located in the Coastal Zone, eighteen months, from the effective date of permit app(oval. However, if the permit is for affordable housing or a mixed use project where housing units comprise at least seventy- five percent of the floor area of the project (collectively "housing project"), and the housing project has received City, State or Federal funding or is comprised of units at least fifty percent of which are deed-restricted to be affordable to low income households and the 9 remainder of which are deed-restricted to be affordable to low or moderate Income households, in the absence of a time period established by the Planning Commission or City Council on appeal as a condition of granting the permit, the Design Compatibility Permit shall expire if the rights granted are not exercised within three years, or if located in the Coastal Zone, three and one-half years from the effective date of permit approval. (1) Exercise of Rights. "Exercise of rights" shall mean actual commencement ofthe 11~.o. ",.~.....+.o.rI h\l +h.o. ......o.rrY"li+ Ilnl.o-=--~ +ho. no.rn'"\i+ i~ t"'Ir~n+.o.rf in .....nnilln,..+il""\n ""i+h -:=!Ir.\r'...rl"'\.u~1 nf .....'O'UI U-\;)V ~1c;;un.vY vy ""Iv tJ"vllllll., Ylllv~.;JI \I Iv f'JVIIIIIL I..;;JI ~IQII"YU III .....VI IJUI 1""""1 VI 1 "'1IUI UtJtJlVVClI VI Illii:.OYY construction. If the Design Compatibility Permit is granted in conjunction with approval of new construction, issuance of a building permit shall constitute exercise of rights under the Design Compatibility Permit; provided, however, that, unless otherwise specified as a condition of project approval, the Design Compatibility Permit shall expire if: (A) The building permit expires; or (B) The rights granted under the Design Compatibility Permit are not exercised within one year following the earliest to occur of the following: issuance of a Certificate of Occupancy; or if no Certificate of Occupancy is required, the last required final inspection for the new construction. (2) Extension. If the applicant files an extension request with the Zoning Administrator in writing prior to expiration of the permit, the Zoning Administrator may administratively grant a one-year extension of the term of the Design Compatibility Permit. The applicant may apply to the Planning Commission for any further extension if such request is filed at least one month prior to the permit's expiration. Such extension request shall be processed in the same manner and for the same fee as a new Design 10 Compatibility Permit. The Planning Commission may grant an extension request for good cause, and may consider in this review the extent to which the project is consistent with current development standards and policies, whether the project is consistent in principle with the goals, objectives, policies, land uses, and programs specified in the adopted General Plan, conditions surrounding the project site and whether the project will adversely effect public health, safety and general welfare. (f) Revocation. The Planning Commission may, or upon direction from the City Council, revoke any approved Design Compatibility Permit in accordance with the following procedure: (1) A revocation hearing shall be held by the Planning Commission. Notice of the hearing shall be published once in a newspaper of general circulation within the City and shall be served either in person or by registered mail on the owner of the property and on the permit holder at least 10 days prior to such hearing. The notice of hearing shall contain a statement of the specific reasons for revocation. (2) After the hearing, a Design Compatibility Permit may be revoked by the Planning Commission, or by the City Council on appeal or review, if anyone of the following findings are made: (A) That the Design Compatibility Permit was obtained by misrepresentation or fraud. (8) That the use for which the Design Compatibility Permit was granted has ceased or has been suspended for six or more consecutive calendar months. 11 (C) That the conditions of the permit have not been met, or the permit granted is being or has recently been exercised contrary to the terms of the approval or in violation of a specific statute, ordinance, law or regulation. (3) A written determination of revocation of a Design Compatibility Permit shall be mailed to the property owner and the permit holder within 10 days of such determination. (g) Appeals. The approval, conditions of approval, denial, or revocation of a Design Compatibility Permit may be appealed within fourteen consecutive calendar days of the date the decision is made in the manner provided in Santa Monica Municipal Code Part 9.04.20.24, Sections 9.04.20.24.010 through 9.04.20.24.040. (h) Hearings. Notice of public hearings shall be given in accordance with Santa Monica Municipal Code Section 9.04.20.22.050 to all owners and residential and commercial tenants of property within a radius of 500 feet for a Design Compatibility Permit. (i) Fee. The fee for a Design Compatibility Permit shall be the same as the fee established for a conditional use permit. G) CUP Requirement. No project subject to this Section shall also be required to obtain a CUP, unless the project is located in the M1 (industrial Conservation) District or the C5 (Special Office Commercial) District. SECTION 4. This Ordinance shall apply to any application for the development of multi-family housing deemed complete on or after March 7, 2000. 12 SECTION 5. 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 in the findings above, this ordinance is necessary for preserving the public peace, health, safety, and welfare. As an urgency measure, this ordinance is effective immediately upon adoption. SECTION 6. This Ordinance shall be of no further force or effect eighteen months from the date of its adoption, or October 11, 2001, 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 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 no further, is 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 unconstitutional by a decision of any court of 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. 13 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 its adoption. APPROVED AS TO FORM: u~ F:\ATTY\M U N 1ILAWSIBARRY\construc.ord.wpd 14 Adopted ,m! appmved thi, 11th" day of April, 2~ . . ~~L~--- ---~ Ken Genser, May~r State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 1969 (CCS) had it's introduction and adoption at the City Council meeting held on Aprilll, 2000, by the following vote: Ayes: Council members: McKeown, Feinstein, Bloom, Mayor Pro Tern O'Connor, Mayor Genser Noes: Council members: Rosenstein Abstain: Council members: Holbrook Absent: Council members: None ATTEST: ~~,~~