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SR-8-A (2) ~ . '-. . ~~a Santa Monica, California . CA:RMM:ll582bjhpc city Council Meeting 4-3-90 ~ ~ _-iI ,- ,c.-~ .~ SUPPLEMENTAL STAFF REPORT TO: Mayor and City Council FROM: city Attorney SUBJECT: Ordinance Amending Santa Monica Municipal Code sections 9420, 9421, 9422, 9423, 9424, 9427, 9428 and 9429 Relating to the Inclusionary Housing Program The accompanying ordinance has been amended in two respects since it was distributed to the city Council for introduction at the March 27, 1990, city Council meeting. First, it has been brought to our attention that there is an inconsistency between the Staff Report and the Ordinance with regard to the wording of Municipal Code Section 9422(C) (1). This inconsistency has been eliminated by substituting the word IIfiled1t for the word "approvedU in the third line of the paragraph. This change correctly reflects the City council's direction that the new inclusionary requirements apply to all projects for which an application was filed after December 13, 1989. It was not the city council's intent that the new requirements apply to project applications which had been filed prior to December 13, 1989. Second, since the last phrase of this section assumed that the ordinance would be introduced for first reading on March 27, 1990, and it will instead be introduced on April 3, 1990, the Section has been amended by replacing the previous language with ~-A - 1 - APR 1 7 19-90 . . staff has determined that it is necessary to perform, or contract for the performance of, economic studies and a more detailed analysis than can be done in the near term, to determine the appropriate on-site requirement and fee structure. Thus, staff proposes that an interim ordinance be adopted pending completion of the required economic studies. staff proposes that the interim ordinance apply to all projects of three units or more, and that the inclusionary requirement be increased from fifteen percent (15%) to thirty percent (30%). Under staff's proposal, in order to meet the thirty percent (30%) requirement, at least twenty percent (20%) of the units to be constructed in a project must be affordable to low-income households and ten percent (10%) must be affordable to moderate-income households. "Low-income" is proposed to be defined as below sixty percent (60%) of the area median income. "Moderate-income" is proposed to be defined as between sixty-one percent (61%) and 100 percent (100%) of the area median income. These definitions have been revised in order to parallel the definitions contained in Assembly Bill 1863, which recently amended the state density bonus provisions contained in Government Code Section 65915 et seq. The accompanying ordinance has been prepared in accordance with these parameters. RECOMMENDATION It is respectfully recommended that the accompanying ordinance be introduced for first reading. PREPARED BY: Robert M. Myers, City Attorney Laurie Lieberman, Deputy city Attorney - 2 - ~d~~~