O2285F: atty\m u n i\laws\barry\affordableh ous i ngamendo rd rev3-24-092d
City Council Meeting 3-24-09 Santa Monica, California
ORDINANCE NUMBER 2285 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTIONS
9.56.030, 9.56.090, 9.56.100, 9.56.110, 9.56.120; AND 9.56.160 TO EXEMPT CITY-
FINANCED ONE HUNDRED PERCENT AFFORDABLE NONPROFIT HOUSING
PROJECTS FROM THE AFFORDABLE HOUSING PRODUCTION PROGRAM, TO
REQUIRE THAT OCCUPANTS OF AFFORDABLE HOUSING BE SELECTED FROM A
CITY-MAINTAINED LIST WITH SPECIFIED EXCEPTION, AND TO CLARIFY THAT
AFFORDABLE HOUSING UNITS INCLUDE VERY LOW-, LOW-, AND MODERATE-
INCOME UNITS
WHEREAS, the typical City-funded, deed-restricted affordable housing projects
developed by nonprofit housing corporations target one hundred percent of the housing
units to low-income and very low-income households for at least fifty-five years; and
WHEREAS, for these developments to be financially viable, they require funding
from multiple government sources that each have strict and complex regulations
regarding the time period of restrictions, income eligibility, rent limits, and other
affordability standards; and
WHEREAS, multiple funding restrictions increase .the complexity of achieving
project feasibility; and
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WHEREAS, these one hundred percent affordable housing projects meet the
Zoning Ordinance definition of an "affordable housing project" and qualify for various
zoning incentives such as density bonuses; and
WHEREAS, these affordability restrictions are deed-restricted or otherwise
restricted by an agreement approved by the City; and
WHEREAS, the typical City-funded development has at least three layers of
affordability requirements (two from financing programs and one from Zoning Ordinance
compliance); and
WHEREAS,- the additional requirements of the Affordable Housing Production
Program are unnecessary to ensure the continued affordability of these units consistent
with the policies and objectives of this program; and
WHEREAS, the Affordable Housing Production Program provides that property
owners may either select occupants from their own marketing efforts or from a City
waiting list; and
WHEREAS, owners are required to notify the City when selecting applicants from
their own marketing efforts and to submit income-eligibility documents to City staff for
verification; and
WHEREAS, owners routinely select occupants without submitting documentation
to the City for verification which can lead to unqualified tenants occupying affordable,
units; and
WHEREAS, compliance with income-eligibility criteria is better ensured when the
tenants are selected from a qualified pool of qualified applicants complied by the City;
and
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WHEREAS, certain technical modifications to the Affordable Housing Production
Program are necessary to clarify that affordable housing units include very low-, low-,
and moderate-income units,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 9.56.030 is hereby amended
to read as follows:
9.56.030 Applicability of chapter.
(a) The obligations established by this Chapter shall
apply to each multi-family project for which a development
application was determined complete on or after May 25,
2006 involving the construction of two or more market rate
units. No building permit shall be issued for any multi-family
project unless such construction has been approved in
accordance with the standards and procedures provided for
by this Chapter. Notwithstanding the above, amulti-family
rental housing project that will be developed by a nonprofit
housing provider receiving financial assistance through one
of the City's housing trust fund programs shall not be subject
to the requirements of this Chapter so long as the project is
an affordable housing project meeting the requirements of
Santa Monica Municipal Code Section 9.04.02.030.065 and
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the project's affordability obligations will be secured by a
regulatory agreement, memorandum of agreement, or
recorded covenant with the City for a minimum period of 55
years.
(b) Multi-family projects for which a development
application was determined complete prior to May 25, 2006
shall be subject to the provisions of Santa Monica Municipal
Code Section 9.56.010 et seq. as they existed on the date
the application for the project was determined complete.
(c) A designated landmark building or contributing
structure to an adopted Historic District that is retained and
preserved on-site as part of amulti-family project shall not
be considered or included in assessing any of the
requirements under this Chapter
SECTION 2. Santa Monica Municipal Code Section 9.56.090 is hereby amended
to read as follows:
9.56.090 Fee waivers.
The Condominium and Cooperative Tax described
in Section 6.76.010 of the Santa Monica Municipal Code and
the Park and Recreation Facilities Tax established in
Chapter 6.80 of Article 6 of the Santa Monica Municipal
Code shall be waived for required affordable housing units
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and for low, very low, and moderate-income dwelling units
developed by the City or its designee using affordable
housing fees. However, any multifamily project applicant
who elects to pay an affordable housing fee shall not be
eligible for any fee waiver under this Section.
SECTION 3. Santa Monica Municipal Code Section 9.56.100 is hereby amended
to read as follows:
9.56.100 Pricing requirements for affordable housing
units.
The City Council shall, by resolution, on an annual
basis, set maximum affordable rents and maximum
affordable purchase prices for affordable housing units,
adjusted by the number of bedrooms. Such maximum
affordable rents shall be set at rates such that qualified
occupants for low-income units pay monthly rent that does
not exceed thirty percent of the gross monthly household
income for households earning sixty percent of the median
income, that qualified occupants for very low income units
pay monthly rent that does not exceed thirty percent of the
gross monthly household income for households earning fifty
percent of the median income, and that qualified occupants
for moderate-income units pay monthly rent that does not
exceed thirty percent of the gross monthly household income
for households earning one hundred percent of the median
income. Such maximum affordable purchase price shall be
set at rates such that qualified occupants for low income
units pay total monthly housing costs (mortgage payment,
property taxes, homeowners' insurance, property mortgage
insurance, homeowners' association fees) that do not
exceed thirty-eight percent of the gross monthly household
income for households earning sixty percent of the median
income and that qualified occupants for very low-income
units pay total monthly housing costs (mortgage payment.
property taxes, homeowners' insurance, property mortgage
insurance, homeowners' association fees) that do not
exceed thirty-eight percent of the gross monthly household
income for households earning fifty percent of the median
income and that qualified occupants for moderate income
units pay total monthly housing costs (mortgage payment,
property taxes, homeowners' insurance, property mortgage
insurance, homeowners' association fees) that do not
exceed thirty-eight percent of the gross monthly household
income for households earning one percent of the median
income.
SECTION 4. Santa Monica Municipal Code Section 9.56.110 is hereby amended
to read as follows:
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9.56.110 Eligibility requirements.
(a) Only low-income, very low-income, and
moderate-income households shall be eligible to occupy or
own and occupy affordable housing units. The City shall
develop a list of income-qualified households. Multi-family
project applicants shall be required to select households
from the City-developed list of income-qualified households,
except applicants of ownership projects of 4 or more units in
the City's multi-family residential zones may themselves
select income-qualified households which shall be subject to
eligibility certification by the City.
(b) The City shall develop administrative
guidelines for the tenant and purchaser selection process
detailed in this Section, which shall establish, at a minimum,
the timing by which affordable housing units in a project
must be leased or sold and occupied, both initially after
issuance of the certificate of occupancy for the project and
upon subsequent vacancies in the affordable housing unit.
The guidelines may also establish priorities for income-
qualified tenants.
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(c) The following individuals, by virtue of their
position or relationship, are ineligible to occupy an affordable
housing unit:
(1) All employees and officials of the City of
Santa Monica or its agencies, authorities, or commissions
who have, by the authority of their position, policy-making
authority or influence over the implementation of this
Chapter and the immediate relatives and employees of such
City employees and officials;
(2) The immediate relatives of the applicant or
owner, including spouse, children, parents, grandparents,
brother, sister, father-in-law, mother-in-law, son-in-law,
daughter-in-law, aunt. uncle, niece, nephew, sister-in-law,
and brother-in-law.
SECTION 5. Santa Monica Municipal Code Section 9.56.120 is hereby amended
to read as follows:
9.56.120 Relation to units required by Rent Control
Board.
Very low-income, low-income, and moderate-
income dwelling units developed as part of a market rate
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project, pursuant to replacement requirements of the Santa
Monica Rent Control Board, shall count towards the
satisfaction of this Chapter if they otherwise meet applicable
requirements for this Chapter including, but not limited to,
the income eligibility requirements, deed restriction
requirements, and pricing requirements. New inclusionary
units required by the Rent Control Board which meet the
standards of this Chapter shall count towards the satisfaction
of this Chapter.
SECTION 6. Santa Monica Municipal Code Section 9.56.160 is hereby amended
to read as follows:
9.56.160 Principles and guidelines.
(a) In addition to the administrative guidelines
specifically required by other provisions of this Chapter, the
City Manager or his or her designee shall be the designated
authority to develop and implement rules and regulations
pertaining to this Chapter, tosnter into recorded agreements
with multi-family project applicants, and to take other
appropriate steps necessary to assure that the required
affordable housing units are provided and are occupied by
very low-, low-, and moderate-income households.
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(b) Within one year from the passage of this
Chapter, administrative rules and regulations pertaining to
this Chapter shall be brought before the City Council for
adoption.
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
incohsistencies and no further, is hereby repealed or modified to that extent necessary
to effect 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.
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
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official newspaper within 15 days after its adoption. This Ordinance shall become
effective 30 days from its adoption.
APPROVED AS TO FORM:
~:
M SHA ES MOU RIE
City Attorn
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Approved and adopted this 24~" day of March, 2009.--,
Ken Genser,
State of California )
County of Los Angeles) ss.
City of Santa Monica )
I, Maria Stewart, City Clerk of the City of Santa Monica, do hereby certify that the
foregoing Ordinance No. 2285 (CCS) had its introduction on March 3rd, 2009, and was
adopted at the Santa Monica City Council meeting held on March 24t", 2009, by the
following vote:
Ayes: Council members: Bloom, Davis, McKeown, Shriver
Mayor Genser, Mayor Pro Tem O'Connor
Noes: Council members: None
Abstain: Council members: None
Absent: Council members: Holbrook
A summary of Ordinance No. 2285 (CCS) was duly published pursuant to California
Government Code Section 40806.
ATTEST:
----~~ ,
Maria Stewart, Cit Clerk