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O2012 f:\atty\muni\laws\barry\rental housing moratorium-1.wpd City Council Meeting 6-19-2001 Santa Monica, California ORDINANCE NUMBER 2012 (CCS) (City Council Series) AN INTERIM ORDINANCE OF THE CITY COUNCil OF THE CITY OF SANTA MONICA EXTENDING THE MORATORIUM ON THE DEVELOPMENT OF AND CONVERSION TO SHORT-TERM HOUSING; DECLARING THE PRESENCE OF AN EMERGENCY THE CITY COUNCil OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOllOWS: SECTION 1 Findings and Purpose. The Council finds and declares: (a) The proliferation of short-term rental housing can have a significant, detrimental impact on the quality of life in the community. (b) Short-term housing, also known as corporate housing, provides temporary accommodations in fully furnished apartments complete with furniture, appliances, housewares, and other furnishings. (c) Short-term housing projects typically afford an array of conveniences and services such as maid and linen service, laundry and dry cleaning service, on-site conference or meeting rooms, business centers, and Internet access. Most short-term housing facilities also offer a full health club, spa, large pool and tennis court. Projects that do not offer these facilities on-site, often offer membership to area facilities. (d) The average length of stay in short-term housing in the Los Angeles region is eighty days, Nationally, the average is seventy-one days. (e) The typical occupants of these facilities include: relocating executives requiring temporary accommodations until a permanent residence is established, corporate recruits, attorneys trying cases, and relocating families. This housing is also increasingly utilized by vacationers. The occupants of these units do not intend to make these units their permanent place of residence, but view these premises as interim abodes. (f) The short-term housing inventory increased by 13% nationally in 2000 and is anticipated to increase by an average of 10% over the next four years, if current economic conditions persist. (g) Short-term housing is also growing exponentially in Santa Monica. Some of the recent major housing developments in the City that offer or will offer short term housing include the Arboretum project with 253 units (excluding the 97 units deed restricted to affordable housing), the Sea Castle with 133 units (excluding the 45 units deed restricted to affordable housing), and Citrus Suites with a combined 171 units available at two separate locations. (h) One of Santa Monica's primary housing goals is to preserve the quality and character of its existing single and multi-family residential neighborhoods. Santa Monica's prosperity has always been fueled by the area's many attractive features including its cohesive and active residential neighborhoods and the diverse population which resides therein. In order to continue to flourish, the City must preserve its character and charm which result, in part, from the cultural, ethnic, and economic diversity of its resident population. 2 (i) The City must also preserve its unique sense of community which derives, in large part, from residents' active participation in civic affairs, including local government, cultural events, and educational endeavors. Occupants of short-term housing do not and cannot have the same involvement and ties to the community and to neighborhoods in which they reside as occupants who treat the City and their neighborhoods as their home. Short-term occupants are less likely to become active in civic, neighborhood, and community affairs and events. U) The City has adopted numerous regulatory measures intended to promote the development of multi-family housing and ensures that this development is occupied by individuals as their principle residence, The City never envisioned that these measures would facilitate the development of short-term housing, (k) The proliferation of short-term housing in the City is a recent phenomenon and the City needs time to adequately assess the full impacts of this form of housing and its appropriate scope and location within the City. (I) In light of these concerns, the City Council adopted Ordinance Number 2011 (CCS) on May 22,2001 establishing a moratorium on the development of short-term rental housing and the conversion of existing multi-family development to this form of housing. However, that ordinance will expire on July 6,2001 unless extended prior to that date. (m) For the reasons described above, the City Council finds that extension of the moratorium on the development of and conversion to short-term housing is necessary because the continuing development of this form of housing in the City prior to the City's review of its 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, this form of 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 development of and the conversion to short-term housing in the City pending the City's completion of its 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 Number 2011 (CCS) for a period of two years, up to and including June 19, 2003, to provide the City sufficient time to further evaluate and undertake appropriate actions to address impact of short-term housing. SECTION 2. Moratorium. (a) Subject to 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, conditional use permits, design compatibility permits, zoning conformance, and building permits for any residential building or structure that will be utilized as short-term housing in any district in the City. (b) Subject to Section 3 of this Ordinance, all applications which have not been deemed complete as of May 22,2001, for approval oftentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, design compatibility permits, zoning conformance, and building permits for any residential building or structure that will be utilized as short-term housing in any district in the City shall be disapproved. 4 hJPct to SecHo 3 r1f this Ordinance no perso,n sh,all convert Drone-rty to ~Ilnr!- housirlQ first obta~ Ing bu",in~'Ss licen~e fFr(lrTl the City' Business license Divi~inn permitting th (d' For pLJTpO~P" ofthis Ora' ll,arliCflshort-terrn hou~nng hall be denru~tl as rentail hOli.Jlsinig which h~ Gombir1:a.hclll tlf some but nece:!';;!S;;;!rily all oHhs foHowing attributes The orQP"3rty is desiqned for se by ividuals w~'J will n~side on pmperty fr'lr min im 1m stav of at least 30 n;.::jV"i. but who ot'herlli/ls@ intend thRir occlJpancy to be temporary. The property is ntanded for SEl by persons who will maintain or obtain p~rmE:lI en! plF'lf::8 of residence elsewhere The property neludes same or al:l .of the fnllnwing amenities maid a nd linen servke (b) health pool tennlc; rnRrnberships to area facilitie:!';; business service center"" [d: meeting rooms fuHy furnished u.mits inr:luding combiflaHon of some not necessadly all of the b~liow;ng: furniture app~~:a"c:e'3, hou bed lin'S!fls, towels, artlNork I ti!"!It'lV1~il1l1 sets VCRs CI1 players fax machines and ntemet ac:r.p.~R.. ~f) vale parking CTION 3 This Ord Inance shall not he applk::;;Iib~e to property in which the owner can estt3blish \Jested dghHD develop or operate housing roject 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 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 two years from the date of its adoption, June 19, 2003, 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 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. 6 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 newspaper within 15 days after its adoption. This Ordinance shall become effective upon its adoption. APPROVED AS TO FORM: L;{ 7 Adopted and approved this 19th day of June, 2001 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. 2012 (CCS) had it's introduction and adoption at the Santa Monica City Council meeting held on June 19, 2001, by the following vote: Ayes: Council members: O'Connor, McKeown, Genser, Mayor Pro Tem Bloom, Mayor Feinstein Noes: Council members: Holbrook Abstain: Council members: None Absent: Council members: Katz ATTEST: ~~. ~J- Maria M. Stewart, City Clerk