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SR-9A (4)~~'~ ~ ~ ~.~ PCD SF KG LB €1ppolsharelccreportlhsgelmt2 w~ad COUNCIL MEETING Aprii 14, 1998 Santa Mon~ca, California TO Mayor and City Council FRQM City Staff SUBJECT Recommendatian to Adopt a Resolution Amending the Existing Housing Element of the General Plan by Approving the Draft 1998-2003 Hvusing Element Update with Amendments as Proposed By Staff, and Recommendatian to Adopt a Statement of O~erriding Considerations and Certify the Final Env~ronmental Impact Report Evaiuatmg the Env~ronmental Impacts of the '{ 998-20a3 Housing Element Update INTRODUCTION T~~s report recommends the City Council 1) adopt a Statement af Overriding Cansiderat~ons and certify the Final EfR evaluating the env~ronmental ~mpacts af the 1998- 2403 Housing Element Update, 2} adopt a resalution amending the existing Housing Element of the General Plar~ by approv~ng the Draft 1998-2003 Housing Element Update with amendments as propased by staff {Attachments A, B, and C} This repart prv~ides background on the 1998-20D3 Housmg Element Update, ~ncluding res~onses to comments made by the State Depa~tment o~ Housing and Communaty ~evelopment (HCD), and discussian a# the EIR Pursuant to the C~ty's Zanmg Ordinance, the City Counc~l must conciuct a pubkic hearing upan any p~oposed amendment to the General Plan with~n 60 days of Plann~ng 1 A~~ 21 ~,~8 Commission action ar~d must cansider adoptio~ af any praposed am~ndments within 90 days of Plannmg Commission action BACKGROUND The 1998-2003 Housing Element Es an update ta the City's current Housmg Element which was adopted by the Ci#y Cou~cil an Sep#ember 28, 1993 One of the seven mandated elements of the General Plan, the Housing Element establishes a fi~e year plan for address~r~g the Caty's housing needs Sumrnary of Leqa! Requirements By law, the City's Hous~ng E~ement must enalyze ~xisting and proJected housing needs, set forth goals, policies, and programs for addr~ssang those needs, and Edentify adequate housing sites (Gavernment Code §65583 ) Additionally, the Housmg Element must Edent~fy potentia~ and actual canstraints upon the ma~ntenance, impro~emen#, or de~elopment of housmg for all income fevels The Draft 1998-2003 Housing Element Update has been prepared in cor~farmi#y wjth both State law and the settlement agreement m Sar~ta Manica Housinq Caunc~l, et al v City af Santa Mor~ica, a case wh~ch challenged the City's current Housing Element Publ~c Process This 1998-20~3 HousEng Element Update was initiated ~n April, 1995 The Planning and 2 Community Deveiopment Department held a public scaping meet~ng and twa pubhc workshops on the Hausing Element Update to receive public mpuf and to fosfer a discussion of housmg issues and policies for the City The prelimfnary draft af the Housing Element was re4eased for publ4c review and comment on No~ember 11, 1996 The Draft Element was reviewed by the Planning Commission through the course of five pubkic hear~ngs which concic~deci its deiiberat~or~s an February 5, 1997 and made recommendations for Cau~c~! considerat~an Publrc hear~rrgs were held by the C~ty Counerl aver the course of three meetings be#wee~r March 18, 1997 and April 15, 1997 On Apr~i 'i5, 1997, the Council approved the Dra#t Elsment m concept for transmittal to the State Department af HousEng and Comrnunity Developmer~t (HCD) Before transmittaf, the Draft Element was revised to clanfy andlor correct tnfarmatEan and to incorporate changes requested by Counc~l Qn Juiy 21, 'I 997 staff su~m~tted the re~~sec~ Draft Hausing Element Update to HCD for the~r rev-ew and comment HCQ prov~ded a wr~tten respc~ns~ dated September 5, 9 99~ (HCD's re~iew and comments are discusse~ fully later in this report ) The Draft Environmental Impact Report on the Draft 1998-2003 HousEng Element Update was prepared ar~d released for a 45-day pufal~c review on December 1, 1997 On February 25, '~998, the Planning Commission held a public hearmg to re~~ew tF~e 3 revised Draft 1998-2003 Ha~sEng Element Update ancf the Final En~ironmental Impact Report which e~aluates the potential en~ironmental impacts of implementat~on of the pol~c~es and pragrams contamed m the 1998-20D3 Housmg Elem~nt Update The Plannmg Commission recammends appro~al with modifications (Planning Gommiss~on recommendatior~s are presented later in this report ) REVISED DRAFT 1998-2fl03 HOUSING ELEMENT UPDATE As stated, #he 1998-2a03 ho~srng Element lJpdat~ has been revised to refiect Co~nc~l's act~an m Apr~l, 1997 (Attachment L} A summary of significant text changes is pro~ided as an attachment to the report The revisions made to the programs in the "Housing Ob~ecti~es, Goals, Policies and Programs" sect~on of the document are presented m a bold/strikeout version (Attachments D and E} REVIEW AND COMMENT BY HCD As discussed, an JuEy 21, 1997 staff submitted the revised Draft Housmg Elemer~t Update to HCD for their re~iew and comment Pursuant to Governmer~t Code Section 6558~(b), the State Department vf Houstng and Commun~ty De~elopment is required ~y State law to revGew draft housing elements and repart therr fmdings ta the locality HCD provided a writt~n response dated SeptembEr 5, 1997 and concluded that further rev~sions w~re needed to bring the element ~nto compliance w~th State law (At#achment F) 5tate law requires that the C~ty Council consider HCD's comments m~ts de~isian to amend the 4 Ha~sing Element HCD's comments and staff's response to the issues raised are pro~ided befow Cateqory D Removaf Perm~ts HCD expressed concerns that the replacement housmg requirement imposed by the Rent Control Board for Ca#egory D removals could result in an "affardable unit" burden m excess of 3a°~ for the rede~eloped property In response to HCD's concern, the Rent Control Board has madified its requirement to clarify that no more thart 15% of the un~ts En the new pra~ect would be required to be affordable The discussion on page Itl-30 of the EEemen# will be rev~sed to reflect this The proposed reWision can be found m Attachment H The staff report ta the Rent Control Board is alsa attached for refierence ~Attachment G} Inclusionary Housmq WEth regard to Housing Element Pfogram 2a (Maintain an Inclusionary Housing Program) HCD feeis that the City's housmg elemen# should °clea~ly commit the City to remo~mg or m~#igatmg those prfl~is~ons of the ordinance that have already been determined to be obvious constramts", and goes further to conclude that the City should exempt resident~al pro~ects of kess than 2C3 ur~~ts from the mclusionary requirement HCD is critical of the action plan for Program 2a since it daes not ~nclude such a strategy in the I~st of changes ta be considered 5 The City believes the draft Housmg Element does commit the C~ty to amend~n~ its incfus~onary housing ordinance fndeed, when the Crty Counci( ga~e conceptual app~ovaf to the Hous~ng Element, it also directed staff to commence the process of modifyfng tF~e lnclus~onary Housing Ordinance The City is actively engaged ~n this pracess of modifying the inclusionary housing ordinance Subsequent to Caunc~l direct~on in July, 1997, the City enlis#ed the professional services of HR&A to assist m the development af alternati~es to Ordinance 1615 Six cor~ceptuai aiternatives were identif~ed and refined through workshops, study sessions and public hearings More spec~ficakly, a Public Workshopwas f~eRd September 7, 1997 that rr~cfuded an o~en t~ouse segmer~t where partrapants vrewed and commented on display panels that explained the current Inclus~onary Program and possible conceptual alternatives A presentatian witF~ graup d~scussion about the existing Inclus~onary Program and conceptual alternatives was conducted Subsequently, Pubiic Hear-ing and Study Sessionswere conducted at the September 10,1997, February25 and March 4, 1998 Piannmg Comm~ssian meetings, at the September 18, 1997, February 19 and March 5, 1998 Hous~ng Commission meetmgs and at the October 7, 1997 City Gouncil r~ee#mg Staff ~s recommending replacing Ord~nance 1615 with a new Affardable Housing Praduction Prograr~ that requires developers of market-rate multi-famiiy housing to assist in #he production of affordable housing through payment of an affordab~e housing development fee or through other specified options Under this approach, the mandatary on-site requirement, found by HCD to constitute a patential constraint, would be elimmated 6 far all pro~ects (See April 14, 1998 City Council staff report prepared by the Housing Di~ision on proposed modifications to the ~nclus~onary program } At its Apnl 14th meeting the City Cauncil takes further #estimany and consider the merEts of the staff's recommendat~ons Additional ly, the City is acti~ely engaged in a process ta modify the de~elopment standards in certain resident~a! d~str4cts to fac~~itate accommodat~fln of State Density Bonus un~ts These proposed mod~frcatrons w~ll act rn concert wrth a rr~adrf~ed rnclusronary pragram ~See Apr~l 14, 1998 City Council staff report regardmg Proposed Revisions to Residential Deve~opment Star~dards in the R2 and R3 DGStricts pertaming to State Density Bonus UnEts ) Patential fvr Residential De~elapment in Cornmercial Distncts HCD has indicated that the element should include specific program actions designed ta promote residential recycltng (anclud~~g tF~e remaval of potential constraints} ancE resider~tial development, or mixed-use, in commerc~al zanes Firs#, as discussed, the City is actively engaged m revismg or ~s committed to re~ising, certain programs that ha~e been ident~fied as potential c~nstra~nts to resident~al recycling, namely the City's Cnclusionary Hous~ng Program and t~e C~fy's de~elopment standards 7 Second, #he City has long promoted residential development, or mixed use, in commercial zanes I~ 1993, the City amended the Zoning Ordinance to cond~f~onally permit residential de~elapment in the Special Office Commerc~al (C5) and Industr~al Conservation (M1 } Districts, and to permit residential uses in most other commercial distr~c#s (BCD, CP, RVC,CM,C2,C3,C3C,C4,C6} 1n 1995, the City established the Light Manufactur~ng Studio District {LMSD} #o replace a portion of the M1 and C5 districts The LMSD permits studio IivelwoTk uses, while preserving existmg light industnal uses and providi~g a~ocation for studio-re{ated uses, such as film and mus~c production and post-production facilit~es The Crty also ~ermrts residentral deve~opment rn the ~ommerc~a! Bays~de Commerc~al Drstrict (BSC), which it estab~ished m early 1996 Moreover, in several districts, the City offers spec~al ~ncentives for housing In the BSC, C3, C3C ar~d CM dis#ricts, any floar area de~oted to ~esidential use is eligible to recei~e a FAR (Floor Area Rat~o~ discount of 5~ percent In BCD, C2, C4, and C6 dEStr~cts, the City offers increased density if at leas# 30 percent af the FAR is residential These changes h~ve been ~ery successful in bringing residential de~elopment to commercial zones To further facilitate development of residential uses m non-residential zoning dis#ricts, Program 1 a of the revised Draft 1998-20~3 Housmg Element Update ~c~entifies specific anaiyses and re~is~ons which will be undertaken during the planning period, including "evaluate additior~ai modificat~ons of de~e~opment standards to er~courage tf~e development o~ housmg in cflmmercial a~eas of the City" The act~on plan for Pragram 1 d (Consider Rezon~ng Non-res~dential Areas for Residential Use) states that "t~e City will 8 explore further opportunit~es for developing housmg m areas currently zoned for non- residenfial use " HCD states that the element should Enclude specific programs which atticulate the City's intent or clearly describe the incenti~es to encourage residential development in commercial zones As discussed abo~e, the Housing Element already has such programs However, to further confirm the CEty's intent to mamtain the current mcenti~es for res~dential development ~n commarcial zones, staff recommends thefol~owmg modification to the seventh bullet c~nder the aetcon plan for Pragram 1 a • C~~: n.~z :~ Fr:,~L:~ ~n ; ~r,:. aG i ~~er:i.e~ :~ ~~.= cp res~~~ ;a~l ~~as ,n na-~-•c~-i~: ~n:~:~~ zan ~~c: c: a•r~_~i .,r~•~ :~~aluate addit~onal modificat~on o# development standards ta encaurage the de~elopment of hausmg in commercial areas of the City On March 3, ~ 998, #~e C~ty Counci! ,ntroduced an mterim ordmance modr~ying the de~elopment standards in the C3C Downtown Overlay District to d~scaunt square footage devated to residential purposes for purposes of calculating the development review square footage threshold The requirement af a development review permit adds additional time and expense to the review of a pro~ect and also sub~ects a pro~ect to environmental re~iew s~nce it is a dESCretionary actian Staff recammends tF~at an addit~onal bullet be added to Program 1 a to reflect these specific effarts to further fac~i~tate res~dential deve~opment 9 ir~ the non-residential districts as follflws • E~aluate the madifrcation of the ex~stmg pro~ect design ar~c~ develapment standards ~n the C3G D~strict and ather commerc~al distncts as appropriate, to pro~ide that for the purposes af assessing whethe~ a de~elopment re~iew permit is required for new de~elapment, floar area devoted to residential uses shall be discounted by fifty percent HCD a{so asked t~at the City further assess the potent~al for residential developmen# in commercial zones In r~sponse staff prepared an analys~s of s~tes rn commercra! d~strrcts ~C2, C4, C3, C3C, C4, C6, CM} which would be most likely to recycle durmg the ~lannir~g per~od due to the age andlor condEtion of the existmg structures, or due to the potential for a substantGal intensif~cation of the existing use(s} Gons~dering the mcentives the City has in p~ace for res~dential developmen# m cammercial zonEng districts, ~t is quEte likely t~at some portion of these parcels, which total in area o~er 70 acres, will be developed as resider~tial pra~ects or mclude some res~dential un~ts The num~er af po#ential resident~al un~ts is unrestncted in these commerc~al districts, however, the size of prolects Es determmed by FAR Each pra~ect wil) have a difFerent mix of residential and commerciaf uses deper~dmg on t~e developers' ~ra~ec# ob~ectives Although it 4s diff~cult to estimate the actual number af residentia! units which couid be accommodated on these sites, tha following table provides a preliminary assessment af the residential potential based on an essumed 10% res~dential mix. a 30°lo residential mix, 10 and a 100% res~dential mix in bu~ldings buGlt to the max~m~m FAR permitted The number of units were caiculated based on the max~mum FAR, adlusted by 15°~ to account far "non- leasable" space, a~d an a~erage 1200 square foot un~t size Commercra! Corridor District ?0% Residential 30% Residential 100R~ Residential Lmcoln C4 96 - 39 6S - 84 225 - 282 P~co C2 33 -39 140 -165 468 - 557 5anta Monrca C4 46 - 57 998 -228 66p - 761 ~Ishrre C6 21 - 25 92 - t45 307 - 350 Maln Street CM 95 - 20 44 - 59 t4l - 796~ Downtown C3, C3C 98 294 - 392 979 - 730fi"` Total 228 - 249 unlts 836 -1034 un~ts 278fi - 3445 units " Cenain zoning dastrrcts restnct the use of ground floor frontage and woufd prevent a pro~ect from be~ng 1 a0~o residential This prei~rninary irnestigation indicates that if these commerc~al properties, were to be rede~eioped during the ~lann~ng period and devoted 't0°/a of #he floor area to residenfial use, between 228 and 249 residential units would result If the same praperties were ta be redevelaped wath 30% resider~t~al use (the thresho~d #or density incentives in the C2, C4, and C6 zoning d~str~cts~, between 836 to 9 034 residentEal units would be developed For camparisan purposes, if these properties were to be redeveloped as '100% residentiai pro~ects, be~n+een 2,786 and 3,445 units would be de~eloped As discussed, each pro~ect will have a different mix of us~s These calculations have been prepared for ~llustrati~e purposes 11 Staff recommends that th~s ir~farmation be ~ncluded Gn the Housing Element discussion of suitable sites in the Hous~ng Needs and Resources section ~Page II-76) (See Attachment H) Pro~ected Housinq Needs HCD states that the City's 3,219-unit estimate developed of the City's fa~r share of t~e regaonal housing need for the 1998-2003 planning perEOd is acceptable, but may be sub~ect #o re~isian if SCAG issues re~~sed ~eed allocations or growth forecasts HGD expresses some confusion over the alternat~ve estrmates referer~ced ~n the hous~ng element Staff has made c~rtam that all footnotes and references with regard ta #he City's pro~ected housing needs are accurate As stated on page II-92 af the Housing Element Update, the City has adopted 3,219 units as its Fair Share HCD has accepted th~s number under present circumstances Cansequently, there is no dispute between HCD and the City as to the City's fair share number Accord~ngly, no mod~ficatio~s to the Hous+ng Element are r~ecessary Second Units Ord~nance HCD feels that the C~ty's second unit ordinance shouid be analyzed in the housing element as a potent~al constraint HCD contends that the "decis~on to exclude secand units" from the single family zones should not anly be evaluated relati~e to the pro~ision of adequate sites and the accommodataon af pra~ected housmg needs, but also ir~ consideration of the City's overalk strategy to assist affordable housing development 12 First, as regards ta the pro~ision of adequate sites, the adequate site analysis in the Housing Element Update is not dependent upan increased developmer~# an R1 and OP1 sites The City has demonstrated it has sufficient sites to meet its needs during the plannrr~g period without consideratEon of these sGngl~-family resident~al areas '(See Table II-25 on pg 1i-72 and Table II-27 on pg Il-8~ } Secand, with regards ta governmental constraints, the H~usEng Element defines a constraint as A program [wh~ch] either ~nd~~~dually or ~n combinat~on with other go~ernmental programs, has s~gn~f~cant advers~ ~mpact on th~ CEty's abil~ty to meet ~ts fa~r share of the reg~onal need for additional housing determined ~n accordance with the Southem Califamia Association af Government's regional housmg ~eed allocation The City does not belaeve that the secvnd unit ordmance constitutes a constramt The City adopted the interim qrdinance addressing second ~nits on October ~ 5, 1996 Secont~ units are allawed m all multi-~amify dGStncts The City also allows a ~arEety of res~dential cievelopment in nan-res~dential zanes, mclud~ng second un~ts Further, this ordinar~ce allows secand un~ts m the R9 and OP1 Districts, albeit under limited ~ The adequate sttes ~nventory in the 1998-2003 Housing Element Updete ~ncludes 16 vacanl parcels in R1 or OP1 zones to he developed as 16 smgle-famdy residences 13 circumstances Moreover, as HCD has acknowiedged, e~en if the City were to liberalize its second unit ordinance, 4t is unlikely that second units would have a significant impact on the new housing stock during th~s p{ann~ng per~od The ma~ority of requests for second units ~n these distr~cts woufci likely be for legalization of existing illegal units and nok for the construct~on of new housEng ur~its Additionally, ~n regards to second units m sangle-family d~stricts, the C~ty remains cancemed for the reasons detailed fully in the rnterim ordinance that second ur~its would erode the quaJ~ty of If€e tor residents ot s~ngle fam~ly drstr~cts ~n Santa Monrca It would, among other thmgs, exacerbate pro~lems resulting from the City's overall density and the unusually ~arge number of persans wF~o work w~#hin the city, ~~sit it for recreation, and tra~el through it Third, with regard to housing affordabil~ty, staff does not belie~e that newiy constructed second un~ts will necessarily be affordable The Caty has na abil~ty to control the rents and these units are not sub~ect to the ProposGtion R requkrement Date pro~ided by the Rent Control Board tracking tl~e rent le~els of units decontrolled as a result of Costa-Hawkins demonstrates that these units are losing their affordability Gi~en the rent le~els commanded for these units, staff has no reaso~ to believe that newly constructed second ~nits would be offered at affordable rents Cansequently, staff does not cansider second units to be an mtegral part of any affardable hous~ng pragram in the CEty 14 The City has a long-standing comm~tme~t tv the prov~sion of affordable housing, and the City successfully effectuates this commitmentthraugh ~mplementation of ~anaus City laws, policaes and programs The City's zonang laws anc~ policies mclude substantial incentives for the production af affordable housmg, mclud~ng height and density banuses and reduced parking requirements In add~t~an, the City operates a number of pragrams wF~ich facilitate the production of affordab~e housing These mclude ~oans to private, for-p~-ofit de~elopers and owners and fund~ng to non-prof~t agencEes to acq+~~re or construct ho~as~ng un~ts The C~#y also f~nds many social sernce pragrams which pro~ide emergency shelter, trar~sitional hausing and permanent and supporti~e housing to ind~~~duals and families with very low incomes These and other laws, pol~c,es and programs ha~e resuited in the preservation and production of an extraordanary number of affordab~e units with in the City The presence of these units has a~lowed a ~ery substantaal number of low and moderate ~ncome househoidS to live in the City notwithstandmg ~ts prime ~ocat~an and h~gh rea~ estate ~alues Census data shows that sixty percent of the C~ty's households ha~e low or moderate incomes In creating hausmg policy #he City has tried to strike a balance between protecting the existing hausmg stock, and allowmg for the de~elopment and ~raduction of new hous~ng for al1 income groups wh~le protecting the quality of life w~th~n #he C~ty The maintenanoe 15 of this balance has been a difficult task because o~ the unique charaeteristics af Santa Mon+ca which are a function of its prime seaside location and its histarGCal development pattern Staff recommends that this discuss~on of the City's policy regarding second units in the R-1 and OP-1 Districts be included in ti~e Potential Ga~ernmental Constraints section of the Housing Element (SectEOn III-B) Although, the City daes not conclude that the second un~t policy acts as a constraint to the develapment of housing, mclusian of this d~scuss~on wo~ld address the HCD comment that the C~ty's policy be cor~srdered rn the cor~text of the Housing Element canstraint analyses The proposEd text is p~esented in Attachm~n# H COMMISSION RECOMMENDATI~NS The Plannmg Commission conducted a public hearing on the Housing Element update ar~d Final EIR on February 25, 1998 The City's Housing Comm~ssion reviewed t?~e re~ised Draft 1998-2003 Housing Element Update and provided the~r comments to the Planning Comm~ss~an in a letter dated Fel~ruary 6, 1998 ~Attachment I) The Planning Commission recommends Councal adoption of tF~e Housing Element ~apdate with same madi#icatians, certificat~on of the Final EIR, and adopt~on of a statement of o~err~ding eonsiderations Mod~ftcations recommended by the Plann~ng Commiss~on include #hose proposed ~ay staff and additional modificattons as described below ~s Sect~an 8 Housinq The Planning Commission concurs w~ti~ the Housing Comm~ssion recommendat~on that Program 3a (De~elop Programs to Amel~orate the Effects of Costa-Hawkins) be re~ised to include t~ree adc~a#ianal programs to be investigated when developing a stratEgy to address the effects of the Costa-Hawkins Rental Housi~g Act on housing affordability T~e #o~lawing will be added ta the list of programs under the fourth bullet of Program 3a - a rental assEStar~ce program that funds the cfa~ference between t~e ~air Market Rent anc~ the market rent for Section 8 tenants, - a rental program that assists Sectior~ 8 tenants whose IandEards have opted out o~ the Section 8 program to pay the Maximum AIlawable Rent if the tenant dec~des to remain in the unit, - a pragram that provides security deposGt assistance for initial lease up and cor~tract opt aut relocat~or~s for needy Sect~on 8 rec~p~ents The Housing Di~~sion and Plar~n~ng staff concur w~th th~s recommendation Land Bankmq The Housmg Cornmissian recommends that Program 2f (Assess the Use of City- OwnedlPuk~hcly-Owned Land for AfFordabls Housing} be revised to reflect a mare defEnitive 17 comm~tment by the City ta land banking The Planning Commiss~on supports the program °if feas~ble" and recommends the following madification ~ ,._____ ~~_ ~___.~.~:.y r ~_.._~_~.,y ~ r~~3~t .~ land banking pragram~ ,~~ J"\JJG.7.7 LI IG IGflJFUIilL VI LGYGiI! 111 f~~~: ~c, ~, for the City and non-profit de~elopers of affordabl~ housing to purchase land and ex~stmg properties far #uture de~elopment of affordable housmg Second Unrts The Plannmg Commission, along wath the Housir~g Commission, cantinue to recommend that the Gity Council inctude the following program as part of Program 1 a's action plan - As a means of pravidmg addit~onal sites for housing, broac~en the current development standards for second units m the R1 D~strict with~n reasonable limits requiring at least one of the un+ts be own~r occupied The City Cour~c~l did nof support this program and it iS not ~ncluded in the revised document As discussed, the Plann~ng staff does not cons~der this prograrn to be cr~trcal tv the City's affordable hous~ng strategy There is no guarantee that the second units created would be affordable smce the~r rent level would not be sub~ect to ga~ernmental regulat~on Furthermore, it is likely that a substantial number of permits issued for secand un~ts that would be d~rected toward legalizing existmg il~egal second units 18 Non-Conforminq Residential Bu~ld~nqs The Hausing Commissian recammends that the 1998-2D03 Housmg Element Update mclude a policy t#~at permits the recanstruction of nonconforming residential bu~ldings located in residentfal d~s#ncts in the case of destruc#ion by fire, earthqua~Ce, flood or other disaster The Piannmg Commission reconsidered this recommendation durmg its re~iew of the revised draft Housing Element Update, and now recommends that an additional bullet be added to Program ~ a to address this ~ssu~ as follaws - Evaluate madcfications to the ZonGng Ordinance ta allow for existang nan-canforming mult~-family residential developmer~ts that are destroyed due to f~re, earthquake or ather natural disas#er to be replaced in-kind m order to prevent the loss of dwellang units in the City Consider the use of the Earthquake Recovery Act as a model for this program Staff conc~rs witf~ the recommendation to ~nclude a~rogram to e~aluate potential modifications to the Zoning Ordinance wGth regard to nonconforming buildings and uses ADDITIONAL STAFF RECOMMENDATIONS Staff also recommends that miscellaneous tables, maps and text be re~ised #o update 19 andlor clarify informatian presented ~n the 1998-2~03 Housing Element Update These proposed modifications are presented in Attachment H Additkonally, Housing D~vision staff recommends that a provisiort ~n Program 1 a's actior~ plan to target City Subsidies ta affordable housing pro~ects that serve households earnmg 6i -80% of the County medaan income be removed Planning staff concurs w~t~ this recommendation Follawmg adoption of the 'f 998-2003 Housang Element, City staff wall submit a copy to HCD far its review ENVIRONMENTAL IMPACT REPORT An En~Eronmental Impact Repor# (E!R} has been prepared by CottoNBe~andlAssoaates wh~ch evaluates the potentEal environm~ntal ~mpacts of implementation of the polEC~es and programs contained En the 1998-2003 Housir~g Element Update ( Attachment K} Public Revjew The Draft EIR on the Draft 1998-2003 Housing Element Update was released far a 45-day public review on December 1, 1997 Two comment letters were received The comments contained in these letters, as well as responses to these commen#s, have been ir~corpora#ed inta the Fir~al EIR AppraachlMethodoloqy Many of the programs contamed in the 1998-2003 Housing Element Update are not new 20 To the extent that ongoing programs would not present any new impacts, the EIR examines only the potential en~~ronmental effects of t~e new and modified programs For the purposes of the EIR analysis, a number of alternatives ta the praposed pro~ect are considered A} an aiternative that assumes that current hous~ng goa~s and policies remain ~n place and no new element is adapted, B) an alternati~e that assumes that residential development is perm~tted by nght m all commercial and ir~dustr~al zoning districts, C~ an altemative that invol~es adding a new program to the Hous~ng Element, w~ereby t~e Ocean Park and North of W~Ishire neighbo~hoods would be rezoned to allow higher densities, D) an alternat~ve facusEng on revis~ons to the Gity's inclusionary housing program impiementing Ord~nance 1fii5 The E~R identifies Alternative B as the environmentally superiar aEternaii~e Siqnificant Impac#s The EIR concludes that there are signifrcant impacts in the areas of A~r Quality, Trar~sportationlCirculation, Parks and Recreation and Water Use as a resul# of the proposed pro~ect The EiR identifies four areas af unavoidable sign~f~cant impact assaciated with the adoption and implementation of the 1998-2003 Housing Elemen# Update even after mitigation These include - Air poliutant emissions associated with new development ~n excess of thresholds established by the South Caast Air Quality Management District - Increased traff~c due to new de~elopment, with the traffic potentially impacting ir~tersectians a~ready exper~encing ad~e~se cond~tions 21 - Increased demand on parks and recreation services - Cumulati~e air quality, circulation, and parks and recreation services ~mpacts, when th~ contributions of new residential de~elopment is combined w~th other cievelopment expected to occur during the '~ 998-2003 period The EIR identifies the cumulative usE af domestic water supplies when the contributions af new residential develapment is combined with other development expected to occ~ar during khe 1998-2003 per~ad, as one area of potent~ally significant impact that can be m~t~gated to a less-than-s~gnft~ca~t leve! It will be necessary for the City to adoPt a Statement of Overr~ding Cansiderations in order to adopt t~e 1998-2003 Housmg Elemenk Update a~d certify the F~nal EIR BUDGETIFINANCIAL IMPACT The recommendation presented in this report does not have a budget or fiscaf impact RECOMMEN~ATION Staff respectfully recommends that City Council take the following actions 1 AdoptaStatemento#OverridingC4ns~derat~onsandcertifytheFinalElRe~aiuating tF~e env~ronmentai impacts of the 1998-2003 Housing Eiement Update 22 2 Adopt a resolution amending the ex~stmg Housing Element of the General Pkan by approv4ng the Draft 1998-20D3 Housing Element Update wEth amendments as proposed by staff Prepared by Suzanne Frick, DErector Karen Ginsberg, Pfanning Manager Laura Beck, Assaciate Planner Planning and Communcty De~elopment Depar#ment Attachments A Resolution to Certify the EIR B Resolution to Approve a Statement of O~err~d~ng Cor~s~derat~ons C Resalut~on Amending the Hous~ng Element of the General Plan D Summary af R~visions pursuant to Counc{I Actian E Program Re~~sions (Bofc~IStrikeo~t} pursuant to Council Action F HCD letter dated September 5, 1997 G Staff Report to Rent Cor~trol Board dated December 1, 1997 H Proposed Re~isions to Hou-sing Element Update I February 6, 1998 letter fram Housmg Cammission J Public Hearing Not~ce K Final Env~ronmental Impact Report and Mit~gatian Morntoring Program L Draft 1998-2003 Housing Element Update- RevESed July,1997 and Technical Appendix 23 r. : ~ ~~ ` ~r ~ ~ ATTACHMENT A ~: . RESO~.u-r~oN n,o g260 (City Coc~ncii Serces) A RESOLUTION ~F THE CITY COUNClL OF TMF CITY aF SANTA MONICA CERTiFYtNG THE FINAL ENVIRONMENTAL IMPACT REPORT ON THE ~ 998-20D~ HQUSING ELEMENT UPDATE WHEREAS, a Notice of Preparat~~n of an Env~ranmentaE Impact R~port was issued an Augus# 15, 1997, and VtlHEREAS, a Not~ce af Campletian of a Draft Env~ranmentai lmpact Report was pubitshed on December 5, 1997 m campi~ance w~th the Cal~fom~a En~~ronmental Quality act and the C~ty of Santa Monica CEQA Guir~eimes, and WHEREAS, ti~e Draft Env~ror~mentai lmpact Report was c~rculated for a 45-day period, and WHEREAS, tn February, 1998 the Finaf Environmentaf fmpact Report was publisF~ed, and WHEREAS, on March 4, ~ 998 tF~e Pfanning Commission ~efd a duly noticed pubiic (~ear~ng ar~d reviswed an~ considered th~ contents of the Ftinal EIR in +ts dec~sian-makmg process, and 1 eff44 in+~ ~ , j Adopted and appro~ed this 21 st of Apnl, 1998 ~. A / ~~~ti Robert T Holbrook, Mayor ~, Maria M Stewart, City Clerk of the City af Sa~ta Mornca, do hereby certrfy that the faregoing Resafu#ion 9260 (CCS) was dufy adopted at a meetang of t~e Santa Monica Ctty Council ~eld on the 21 s# of Apri~, 1998 by the following ~ote Ayes Cauncilmembers Noes Councilmembers Abstain Counc~lmembers Absent Cauncilmembers Ebner, Feinstem, Genser, Greenberg, Holbrook. ~'Connor None #tosenstem None ATTEST ~ • ~'~Q..,~.~ a.,~ Maria M 5tewart, Crty Cyerk ~~ _ ~ ~' ' ~" v U ATTACHMENT B ~. ~ . {C~ty Council Series) Santa Monica, Cali€orn~a A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA MAKING THE CEQA FtNDINGS NECESSARY T~ APPROVE THE 1998-2a03 HOUSING ELEMENT UPDATE, ADOPTlNG A STATEMENT OF OVERRIDING CONSIDERATIONS AND ADOPTING A MITIGATION MOMITOR[NG P~AN WHEREAS, the City Cou~al has certified an Environmental fmpact Report for the F lppolsharelhsngelmtlenvrmntlloverr~d~~g wpd City Council Meeting 04-14-98 RESOLUTION NO 9261 1998-20fl3 Housing Elsment Update, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS SECT{ON 1 Consistent with Article VI, Sectian 12 of the City af Sar~ta Monica CEQA Gu~delmes and Seciions 15091 and 15092 of the State af California CEQA Guidelines, th~ C~ty Cauncil fmds that most impacts resulting from #he ~ro~ect can be reduced to an acceptable level Adopt~on of the Hausing Element Update will not, by itself, result in any new res~dent~al development Howe~er, the Updated Element w~ll facilitate t~re development af hausmg whECh has the potential to result in en~iror~mental irnpacts More specifically, significant environme~tal effects as ~dent~#~ed below can feasibly be eiiminated or substantially ~essened to below a level o# significa~ce The remaEnmg una~aidable signi#'icank e#fects as detailed ~n Section 2 cannot be fully avoided or mit~gated 1 eff45 ~'` ` t~v . ~ ta belaw a fevel af sign~f~cance but are nevertheless found to be acceptable due to o~errid~ng consideratians, as discussed in Section 5 (a) The fnal EIR determ~ned that w~thout mitigation the proposed pro~ect cauld result in s~gn~ficant ad~erse impacts o~ the cumulative use of domestic water supp~~es in a worst-case scenaria, up to 3,219 residential units, combined w~th other non-res~dential de~elo~ment expec#ed to occur during the 1998-2003 period, ha~e the potential to consume up to 859,525 gallor~s of water per day In lig~# of tF~e fact t~af the C~ty rel~es on amported wat~r at present d~e to contammation of 1oca~ weNs, th~s increased demand ~s consEdered sign~ficant Cansistent witF~ Art~cle VI, Section 12 of the City CEQA Guidelanes and Section 15091 of the State of California CEQA Gwdelines, the City Council finds that the fvllowing mitigatfon measure has been required in the protect which w~ll avoid or substantially lessen #he patentia~ sign~f~cant env~ronmental effects identified w~th respect to domestic water su~pfies to beiow a ie~el of significance (1 } The City shall continue to require watar cor~servatio~ of all new develapment Each new pro~ect is required to achieve a 2 1 ofFset of water use - that is ta conserve twice the amaunt af water the pro~ect uses To accomplash that, the City charges each develo~er a fee on every gallan of water used The re~enue is added to the retrofit program funds to buy and ~nstal! low-flaw piurnbmg in exist~ng buildings ImpEementation a# this and other conservatian programs and measures will reduce cumulative impact on the City's water s~apply to a fess-than-signEficant level (b) The Final EIR determined that without mitiga#~on the proposed pro~ect could result in significant adverse impacts on land use compat~b~iity under Program 1 d of the Hous~ng Element Update which when implemenked has the potential to aflow mare 2 eff45 ~~K 4 34 apport~R~t~es for residentra! developmer~t ~n the C5, M7 ar~~! l.MSQ zor~ing districts As a result the propased pro~ect could fac~litate further changes to the existing land use pattern in the commur~ity Additionally, residential uses ~n establisF~ed heavy commercial and mdus#r~al districts have the potent4al to create land use conflicts Consistent with Article V1, Sectio~ ~2 of the City CEQA Gu~del~nes and Section 1~091 of the State of Cafiforrna CEQA Guidefines, the C~ty Counc~i fm~s that the faliawing m~t~gatiar~ measure has been ~equired in the pro~ect wh~ch will a~o~d or substant~ally lessen the potantial sign~~cant env~ranmental effects ~cientified w~th respect to land use and planning assockated wEth Program ~ d of the 7 998-2003 Hausing Element tJpdate to below a 3evel of signif~cance {1) Any action to amend #he zonmg pra~isfons for the CS and M~ zones to allow res~dential uses by right shall mclude establishmg zoning regulations that cafl for bufFerEng and similar measures to protect potential~y incompatible land uses from one another Similar considerations wifl be given to the LMSD zone SECT~ON 2 ConsEStent w~th Art~cle V1, Section 12 of the City of Santa Monica CEQA Guide~ines and Sections 15091, 15Q92, and 15093 of the State of California CEQA Guidelines, the City Council finds that the signif~cant en~iranmental effects as 4dent~#ied beiow can be reduced but cannat feasGbly be avoided or mitigated ta below a le~ei of sign~ficance Ne~ertheiess, these impacts are found to be acceptable due to overnding cans~derat~ons as discussed in 5ection 5 (a) The Fina! EIR determined that without mitigat~on residentia! devefopmenf under the proposed pro~ect would likely result m significant unavoidable adverse ~mpacts ~pon air quality Development o~ housing pursuant to Housing Element goals, policies, and 3 eff45 ia ~ ~ .~ J ~ programs w~sl resuVt m mcreased use of efectr~city and natura! gas and mcreased use of electricity and ~ncreased auto traffic that emits pollutants Estimated average daily pollutant em~ssions (CO, ROG, Nox) w~ll exceed SCAQMD threshold le~els To mmimize pallutant em~ssions m the long-term, exrstmg and proposed City ordinances and programs will be enforced to address both stat~onary and mobile saurce em~ssions For examp~e, dEVelopment of all new residential un~ts will incarparate energy-savmg features and f~ctures as required by ex~stinc~ C~ty cades AEso, programs ~n the Hausing Element Update that encourage mixed-use de~elopment will help reduce ~eh~cles trips and associated em~ssions by allowmg people to I~ve cinser to work Consistent w~th Sect~on 15d9i of the State CEQA Guidelmes, the City Counc~f fmds that the followmg m~tigation measure has been requEred of the pra~ect w~ich wEfl reduce the impact of the proJect on air quality, but not to a ie~el of Gnsignificar~ce ~1 } For ~nd4~~duaf deue~opment pro~ects s~b~ect to discretionary review, the City shall determine what measures w~ll be requ~red to minimize indirect source emission thrvugh energy conservation, mstailation of energy-efficient appliances, pass~ve solar design, etc (b) The Fina{ EIR determined t~at without m~tigation resident~af development under the proposed pro~ect would likely result ~n s~gn~~icant unava~dable adverse ~mpacts upon transportat~on/circulation New resident~al units prov~ded pursuant to ~ous~ng ~olicy could result in an mcrease of 12,336 to 25,753 new vehicle trips per day The new tnps have the pote~tial to impact int~rsections already operating at le~els of ser~ice E and F The C~ty is cunently updatEng its Circulation Element Th~s Element identifies a set of policies to improve ex~sting and future c~rculatian The City wif~ cont~nue ta assess traffic and 4 eff45 ~c ~ J ~ 1 circ~latian impacts of all resadentGal de~elopment to ensure compliance wit~ the City's tra~c improvement prograrn and ta reduce adverse traffic ~mpacts Consistent w~th Section 15091 of the State CEQA GuidelmES, the City Counc~l finds that the foflowmg mitigation measure has been r~quired af the pro~ect which will reduce the ~mpact of the pro~ect on transportatiaNcirculation, but not to a le~el of ins~gnificance (1} For pra~ects requirtng discretiar~ary permit appraval, circulation system impravemer~ts or other requ~rements imposed by the City Engmeer wilE be implemented Pr~ar to the issuance of occupancy permits ~c) The F~nal E~R determ~ned that without m~t~gation res~dentia! de~elopment under the propased pro~ect woufd l~keiy result ~n significant unavoidable adverse impacts upon parks and recreatian A demand currently exists for 51 to 294 acres of park land, and the Oper~ Space Element daes not fdentify adequate lan~ to meet existing needs An increase in the CEty's population will place ~ncreased demands on exGSting parks and recreat~on serv~ces Fees collected to fund park acquis~t~on do not caver assoc4ated costs Consistent with SectFan 15491 af the State CEQA Guidelines, the City Counc~l ffnds that the following mitigation measure has been required of the pro~ect which will reduce the impact of the pro~ect on parks and recreation, but since ex~sting fee and tax levels are madequate to fund acquisit~on, impacts wi~~ not be reduced to a level of msignaficance (1) The C~ty will cont~nue to collect fees pursuant to Ord~nar~ce Number 1367 (CCS) and to assess estab~EShed taxes ~d) The Final EIR determined that without mitigation residential developme~t under the proposed pro~ect would likely result in significant u~avoidable adverse cumulative impacts on air qual~ty, traffdc:rcula#~on, and parks and recreation The C~ty has fdentified 5 eff45 ~;f `- J! - eight r~onresidential pro~ects that could be constructed within the t~me frame of the Housing Elemant Update implementation These pro~ects, when comb~ned with the hous~ng ~ro~ects facilEtated by the Haus~ng Element Update, have the potential to generate up to 98,000 average daily ~ehicle trips Pollutant emissions from these mobile sources, combmed with stationary sources would exceed SCAQMD recommended #hreshald le~els The nonresidential c~evelopment will place ancreased demand on parks srr~ce day-time employees of new busrnesses can be expected to use these resaurces Cons~stent with Section 15091 of the State CEQA Gu~delmes, the City Council finds ihat the followang m~tigation measure has been r~quireti of th~ pro~eet which will reduce t~e cumulati~e impacts ofi the pro~ect on air quality, traffic, and parks and reereat~on, but not to a le~el of msagnificance (1) The mitigatfan measures cited abo~e related ta impacts assoc~ated w~th hausing tfevelopment w~li afso be a~pltied ta nonresident~al development where feasible Also, C~ty pol~cies thac encourage mixed-use development will work ta put people closer to work, thereby creating opportuna#~es for a reduct~on in o~erall vehicke trips an~ assaciated pollutant emiss~ons SECTION 3 The CEQA mar~dated env~ronmentally supe~ior alternative was found to be the `Residential Develapment in Nonres~dential Zones' Aftemati~e (Alternative B}, an alternative that assumes that resident~al development ~s permitted by right ~n all commerc~al and industnal zaning districts As analyzed ~n the Final EIR, Alternat~ve B would result in impacts that wauld be equal to or less than the impacts for the pro~ect as well as for each of the other alternatives considered However, Alternative B has the potent~al to result ~n incompatibiiEties betweer~ new resident~al development and exis#ing 6 eff45 A~ ~ .. i~ .~ ~' ind~strial uses currently located m mdustraal zones wEthin the City Also, given that commerc~ai and mdustr~al busmesses currer~tfy represent the predom~nate uses m the C5, M1 and LMSD zones, land costs might I~m~t the ability of developers to purchase properties for new res~denttal de~elopment Finally, th~s alternati~e m~ght run counter to ather City goals to provide a balanced mix of uses in Santa Monica a~d to allow industrial deve~opment in certain areas of the City The inability af zoning reguiations to guard against patent~ai land us~ conf#icts and the possibility that this altemat~ve wo~ld neitF~er encourage nar facilitate hausing deve~opment renders this afternative mfeasible since it does not satisfy tF~e pro~ect ob~ective SECTION 4 The r~mammg pro~ect alternatives analyzeci in the Final EIR (the No Pro~ect AlternatGVe, the Ocean Park and North af Wilshire Rezoning Alternative, and the Ordinance 1615 Revisions Alternata~e} would ha~e similar ar greater impacts on the environmer~t as the propased pro~ect SECTION 5 As fully described in Sectior~ 2, the F~r~al EIR found that t~e pro~ect would result in significa~t unavo~dab4e adverse impacts upon air quality, traffic and circulation, and parks and recreation services Consistent with Article VI, Section 'I3 of the C,ty CEQA Guidelmes ancf Section 15093 of the State af California CEQA Guadelines, the City Cou~cil hereby makes a Statement af OverrEd~ng ConsideratEOns and fmds that t~e benefits of t~e pro~ect flutweigh ~ts unavoidable environrnental impacts based on the follawmg reasons 7 eff45 F~~ ~' 4 ~ ~ ~ (a} The proposed pra~ect contams goals, polic~es and programs wh~ch will enabfe the City to promote the construction af new hous~ng far all segm~nts of the population and all income graups bafanced w~t~ protecting the ex~sting supply of affordable housmg (b) The proposed pro~ect contains goals, poliaes and programs whEC#~ will br~ng the Crty claser to satisfying ~ts housing need as es#imated by the Regional Hous~ng Needs Assessment ~RHNA) (c} The proposed pr~~ect corttains gaals, policies and programs designed ta promote the rehabilitation and continued maintenance of the existmg housmg stock within the ~ommurnty (d) The proposed pro~ect ~dentif~es a quantified ob}ective w~~c~ will serve to i~+crease ses~dent~al de~e{opmer-t i~ the C~ty, thereby heEp~ng to ~mprove the ~egtional ~obslhous~ng balance ~e) The p~o~osed pro~ect contams gaals, polrcies and programs which wi11 enable the City to prav~de housEng assistance and suppartive serv~ces to very low, low and moderate income households and hauseholds with special needs (f} The proposed proaect conta,ns goals, policies and programs des~gned to ~1im~nate discriminatior~ in the rental or sale of housing on the basis of race, religion, national orig~n, sex, sexual preference, age, disability, fam~iy s#atus, AIDS, or other such characteristics (g) While the number of ~eh~cle tr~~s generated by the res~dent~al develapment ant~cipated under the proposed pro~ect would likely have a significant impact on lacal streets, particularly ~ntersect~ans operat~ng at LOS D or warse, t~ese Empacfs would be 8 eff45 kx ~ , ., 4 V ~ reduced by comp~~ance with existi~g and future City pol~caes and programs ~urther even though ~t is ar~tic~pated that s~gn~ficant traffic impacts would remam after full implementat~on of the m~t~gat~on measures, new reside~t~al deveiopment anticipated under the Hausing Eiement Update would pro~~de additional hausing needed for all mcome groups and would bring th~ City closer to sat~sfy~ng the hous~ng need est~mated by the RHNA Add~tionally, the proposed proJect mcludes programs which are designed to promote t~e construcfion ~f mixed-use develapment m the City which will help ta reduce vehicle tr~ps by allow~ng people to live closer ta their places of work (h) Wh~le the increases in veh~cle #r~ps gen~rated by development under the proposed commercial development standards wauld, fn t~rn, generate arr quality impacts from mobile emissians, compliance with the Air QuaEity Management Plan and the City's Air Qual~ty Element would m~nim~ze a~r ~mpacts Section 6 Consistent with Public Resources Cade Section 12081 6, the City Counc~l adopts the Mit~gation Monitormg Plan, which is included as Attachment A, to mit~gate or a~oEd sign~ficant affects of the pro}ect on the env~ronment and to ensur~ cflm~fiance durEng pro~ect impfementation SECTIQN 7 Cons~stent with Sect~on 21081 6(d) of the California Env~ronmental QualEty Act, the dacuments wh~ch constitute the record of proceedings for apprav~ng this pro~ect are located in the Plann~ng and Community Development Department, 1685 Main Street, Raom 2'~2, Sar~ta Monica, Califom~a The custodian of these documents is 9 eff45 a~ ~ ~ ~- 4 i AssacEate Plar~ner Laura Beck SECTtON 8 The CEty Clerk shall certify to the adoption of this Resoiution, and thenceforth and thereafter the same shall be m f~ll force and effect APPROVED AS TO FORM . , ~~, -~- ~. 1~ 1 ~.~J . ~f } ~; ~ •,.F~LY . r MARSHA JONES MOUTRIE City Attamey Last revised: July, 1994 l~ eff45 '' ` ` ~ G s Adopted anc~ ap~ro~ed this 21 st of April, 1998 J .l,cs .~~~ ~ Robert T Halbrook, Mayor I, Mar~a M Stewar#, City Clerk of #t~e City of Santa Manica, do hereby certify that the foregomg Resolutian 9261 (CCS) was du~y adoptecf at a meeting of the Santa Monica City Cou~c~! held on the 21 st a~ April, 1998 by the follow~ng vote Ayes Councifinembers Noes Councilmembers Abstam Counci~members Absent Councilmembers Ebner, Feinste~r~, Genser, Greenberg, Halbrook, O'Cannor None Rosenstein None ATTEST , ~- ~„~ Maria M Stewart, C~ty le~lc ATTACHMENT A APPPNflIX E MITlGAT10N MONITORING PROGRAM Section 21081 6 af the Public Resources Code requires adopt~on af a reporting or momtonng prQgrarn for prasects wEuch resu~t m stg~uficant emnronmental effects The morutoring ~s required to ensure i~nplementatior~ of the measures considered necessary ta mitigate or avold srgn~~canf effects The following table identifies each rrut~gation measure required to reduce effects assoctated with adoption and implementation af the Hous~ng Element, when morutonng will occur, and the agenc~es respons~ble for momtonng and enforcmg the measures In addition to these measures, as required by Government Code Section 65400(b), City staff will prov~de ar~ annual report to the C~ty Council outlirung the progress toward Genera] Plan implementation, ~ncluding implementation of the Haus~ng Element ~~~~ ~ ~~ SANTA MONICA HOUS~NG EI.EMENT MITIGATION MONITORING QND REPORTING CHECKtIST Verifieatlon of Compliance Mi i i M i t gat on easure Mon toring Monttoring Enforcement Phase Agenry Agenry Initlats Dafe Remarks Air Qualit~- 1 For individual deveiopment Ongoing City of Santa Ciiy af Sania projects subjecl to distretionary Monica, Monica, revisw, the City shafl determine Bui~ding & Building & wnat meusures will 6e required to Safety Safety minimize indirect source Division Division emissions tF~rough energy conservation, installation of energy-efFicient appliances, passive solar design, eic Transportation/Circulation The following will apply to projects Ongoing CEty af Santa City of Sania ~ec{uiring discrelionary permil Monica, Monita, approval Engineering Building 8~ Division, Safety 2 Circ~latio~ sysfem improvements Parking & bivision or other requirements imposed by Traffic the City parking and Traffic Division, and Engineer will be implemented City Planning prior to the issuance of occupanry Division permits ~ ~ , 2 ~P. ~~ Vertfication of Compliance Mitigation Measure Monitortng Phase MonEtoring Agenry Enforcement Agenry Initials Date Remarks Water Use - Cumulatlve 3 The City shalf canlinue ta reqvire Ongoing City of Santa City of Santa water conservation of ali new Monica, Monica, developmeni Each new project is Building 8~ Building 8~ required to achieve a 2 1 offset of Safety Safety water use -- that is 1o canserve Division Division twice the amount of water tha project uses To accomplish that, the City charges each developer a fee on every gallon of water used Tha revenue is added to the retroft program funds 1o buy and instafl Iow-flow plumb~r-g in e~cisiing buiidings implamentation of lhis and other conservation programs and measures will reduce cumulaiive impact on the City's water supply to a less-than-significant level ~ ~- 3 ~ Gi .~ CITY OF SANTA MONiCA HOUSING ELEMENT M[TIGATION MONITORENG AND REPORTING CHECKLIST Verlfication of Compliance Mitigation Measure Manitoting Monitoring Enfarcement Phase Agenry Asenry Initials Ddte Rernarks Parks and Recrention 4 The Cify will cont~nue to collect Ongoing City of Sansa City of Santa fees pursuant to Ordinance 13b7 Moni~a, Monica, and !o assess established taxes Ci1y Planning 8uilding & Division, and Safety Community Division and Cultural Services Los Angeles Department County Assessor Land Use 5 Any action to amend the zoning At time City of Santa City of Sanla ~rovisions for the C5 an M1 when zoning Monica, Manicct, ~.,,,os to allow residential uses by ordinance Gity Planning City Planning right shali include establishing a~~~e~~~~~~~,nts Drvision Division zo~ing regulations that call for are 4~uffering and similar rrieasures to proposed protect potenfiafly incompatible land uses fror~ one anothar Similar considerations will be given to the LMSD zone ... 4 .~i r; ~ CiTY aF SANTA MONICA HOUSING ELEMENT MITIGATION MONITORING AND REPORTING CHECKLIST Verlfication of Compliance Mltigation Measure Monitaring Phase Monitaring Agenry Enfarcernent Agenry Initidls Ddte Iten~arks Currtiulatlve lmpacts - Atr Quality, Traffic, and Parks and Recreation Ongoing City of Santa City of Santa b The miiigation measures cited Monica, City Mon~ca, City a6ove reiaied to impacts Planning Planning ctssociaied with housing Division Division developrr~@nt will also be appiied to nonresidentiai development where feasable Also, City pol~~~es that encourage mixed-use develapment will work to pui peap~e closer to wor~, thereby creating opportuniiies for a reduction in overall vehicle trips and associated pollutant amissians , S a ~f ~~ w ~G i= c ~ ~ 1 V ATTACHMENT C 5~9 r: ~ S RESO~uT~~rr ~o ~z~~ (City Counc~l Ser~es) A RESOi.UTIQN OF ThlE C1TY ~OUNCIL ~F THE CiTY OF SANTA MON~CA ANIEND(NG THE HQUSxNG E~EMENT OF THE CITY'S GENERAL PLAN 1NHEREAS, tt~s C~ty of Santa IVI4nica adop#ed ~ts ex~st~ng Ho~ssing Elemer~t ~n Se~tember 28, i 993, and WHEREAS, t~e City planr~~ng and Commun~ty Develapment Department ~eg~~ m '199~ tc~ dev~f4p ma#er~a~s for the rev~s~o~ of the Ho~s~r~g Ei~men#, and WHEREAS, ar~ Apri( 24, 7995, Augus# 5, 1995 and Aug~st 9, 1~95 #he Ci#y cor~ducted duty nat~ced pu#~~ic scoping mee#ing and workshops to receive pubE~c ~r~put on ar~as of co~cern and ~nt~;rest and to gather re~euan# ~nformat~a~, and VtIHEREAS, an Navem~er ~~,~ 99G a draft of the 9 598-2DQ3 Housing Elemer~t Update was ~-eleasec~ far p~bl~c rev~ew and comment, and WHEREAS, a~ ascember 1~,~ 99fi a~~ly noti~ed specrai ~ar~t me~ting af the Planrsing ar~c~ Ho~sing CommissEO~s was held ta revESw ~r~d comment ~por~ th~ draft ~ 998- 2a03 Ha~smg Elem~nt Update; a~ci WHEREAS, an Jar~uary 9 an~ ,tan~~ry 1~, 1597 the Ha~sir-g Comm~ss~~ ~ ~ . r~ndc~cted duly naticed puf~l~c hear~ngs or~ fhe draft ~ 998-2Qt73 Housir~g Element Update ar~d #arwarded Ets ~e~mmendat~on to the Pla~rnr~g CommESSaor~, and WHEREAS, an Jar~uary ~ 5, 22, 2~ anc~ Fe~r~,ary 5,1997, the P~an~mg Comm~ss~o~ co~ductec# duiy naticed publ~c hearmgs an the draft 1998-2003 HousEng Elemen~ Update and forwa~ded its recc~mmenc~aE~on io the G}ty C~~r~c~l, and WH~REAS, ar~ Ma~ch ~ 8, 25 and A~r~E '~ 5, 't997 the C~ty Caunc~l conc~~cted du~y ~ot~ced pubE~c hean~gs c~n the Draft ~ 998-2QU3 Hausmg Element Update whe~e ~t cons~c~ered #h~ comme~ts of t~e Ha~stng Cammiss~on, the Arts Camm~ssrQn, t~e Rer~t Controi Br~ard, the Piar~nmg Cc~mm~ssEan and th~ ~ub~ic, a~d approv~d ~n concept the Dr~ft Ho~srr~g Eleme~t U~date ~Q~ transmittal to t#~e Sta~e Departmer~t of t~e Housing and Gommun~ty De+~elapment, and VI/HEREAS, ~n Ju~y, '3 ~97, t~e Draft ~ 998-2003 Ho~rs~ng Element U~date was tr~r~sm~tt~d to #he Sf~te Depa~tmen# af Hous~ng and Commun~ty Qe~ela~mer~t {uHGDn) for rev~ew ar~d comment, and WHEREAS, an A~g~st 22, ~ 997 tF~e Cfty met w~th HCD staff to dfscuss the Draft 1958-2~~3 Ha~sfng Element U~date, and WHEREAS, on ~1~g~asf 28, ~ 997 the C~ty tr~nsmEtted to HCD adc~rtson~t sr~formation ~d a respanse to clafms raised by the Santa Men~~a HQ~sir~g Council, ar~d \~ WHEREAS, on September 5, 1997, HCD transmitted to the City ~ts comments upon the draft ~ 998-2003 Hous~ng Element Updat~, and WHEREAS, on February 2~, ~ 998, the Planning Commission conducted a duly noticed publ~c hearkng on the draft 1998-2Q03 Haus~ng Element Update and forwarded a recommendat~on ta the City Councal to appro~e the Hous~ng Element Update, and WHEREAS, on April ~4, 1998, the City Council co~ducted a duly not~ced public hearmg on the ~ 998-20Q3 Housmg El~ment Update where it considered the comments of the Housing Commiss~on, Planning Commission, ar~d HCD and approved #he Housing Element Update, with modifications, and WHEREAS, the City CouncEE has considered the commen#s made by HCD, and WHEREAS, the City Gouncil has fully rev~ewed and considered the F~nal En~irQnmental Impact Report in ~ts dec~sion-ma~cing process, and WHEREAS, the City Council has aciopted a Statement of O~errtding Cons~derations, N4W, THERE~ORE, THE CITY COUNCIL QF THE CITY OF SANTA MONICA DOES HEREBY RESOLVE AS FOLLOWS >, . , - ~ ~ ~ SECTI4N 1 The document attached hereto marked Exhibit A is hereby app~o~ed a~d adopted as the 1998-20Q3 Housing Element Update of the Genera! Pkar~ for #he City o# Santa Monica SECTION 2 As deta~led below, and consistent with Government Code Section 6~585(fl{~ }, ir~ response to the findEngs made ~y HCD, the Gity Council has changed the draft Housmg Element to substantially comply with tl~e requirements of Art~cle 1 ~ 6 of the Government Code SECTION 3 The City Clerk shall certify to the adoption of thrs Resolution, and thencefarth and thereafter t~e same shall be in ful! force and effect APPROVED A5 TQ FORM ,~ : ' `. ,:_ •-- ~ ~ r l~~ '--; `1 MARSHA JONES MOUTRIE CEty Attarney f lppolsharelhsngelmtlreso wpd w - 54 ~ , Adopted ar~d appro~ed thES 21 st of Aprii, ~ 998 ~w ~c ~ ~,t-t~._ L Robert T Hofbrook, Mayar I, Maria M Stewart, City Clerk of the City af Santa Monica, do hereby cert~y that the farego~r~g Resolutior~ 92fi2 (CCS) was duly adapted at a meeting af the Santa Monica Ci#y Council held or~ the 2'4 st of Apri~, 1998 by tt~e foilowrng vote Ayes Counciimembers Noes Counc~imembers Abstam Councifinembers Absent Councilmembers Ebner, Femste~~, Genser, Greenberg, Holbrook, O'Connor Nar~e Rosenstem Nane ATTEST ~ Maria M Stewart, City lerk ~t ~. " ` ~ ~ ATTACHIIAENT D '' r . ~ V ~~ L SANTA MONICA HOUS~NG ELEMENT July, 1997 Iden#ification of Text Changes From 17/26/96 Public Review Draft Pg I-2 Pg ll-1, last paragraph, new Tabie E-5 Pg 11-9, Table !I-7, new note #2 Pg II-13, 2nd paragraph, new last sentence Pg II-43, addition to 3rd paragraph Pg II-11, 1 st sentence on page Pg II-51, add~tian af new sections -"Impact of Costa Hawkms on Sec 8 Pragram" and Impact of HUD RegulatEOn and Pal~cy Changes" Pg II-54, Tabie II-19, City Trust Fund Loans modif~ed to 533, tota) changed to 1,446 (should date on faotnote be updated?) Also, still need to reflect dele#ion of 3 units at 931 Euciid u~der MERL, modEfy total to 1,443 cansistent with Table II-20 Page 1i-55, update of Table ~I-20 - deletian of 1434 SM Blvd , delet~o~ of 931 Euclid, footnote for W+ishire House, elim~nat~an of subtotals by type of ass~stance, associated ad~ustments to totals Pg I{~0, modificat~on of 3rd ~aragraph, eliminataan of 4th paragraph to reflect Elirnmat~on of 1434 SM Bl~d fram ~nventory Pg 11-G2, elimmatEOn of priar paragraph "Projects at Risk Due to Termmation of Use Restnctions" (bottom of old pg II-60) Pg I!-fi4, el4mination of prior 3 paragraphs on replacement costs Pg l~-fi8, new section 12, w~t~ most recent addit~on of 2nd paragraph on pg 11-70, clanfication of last paragraph on pg II-7~ Pg II-71, last paragraph, reference ta ~acant lar~ds map (updated) ~n Ap~endix C Pg II-74, 2nd paragraph, modificatEOn of Znd sentence to "data indicates" from "it appears" Pg II-75, add~tion of cofumn tdentifying parcels '"' ~ _ - ~ . Pg 111-8, expans~on of 3rd paragraph Pg {14-9, expans+an o# 2nd paragra~h, cefere~ce to ~e~v table E-4) Pg III-13, addition af new section "Provisaons for ~ Variety of Housing Types" Pg III-16, 2nd paragraph, adaition of last sentence, assoc~ated addition af guest parking requirements to Table E-2 Pg I~I-19, replacement of prior 1 st paragraph Qf sect~on 2~rvith r~ew paragraphs Pg i1-24, addition of footnote Pg III-26, addition of ~ast two ~aragraphs Pg lil-29, add~tion of 4th senience "S~nce tkie City's " Pg III-30, addition af 1 st paragraph, eliminatron af 1 st sentence of 2nd paragraph Pg ill-32, additior~ of 2nd & 3rd paragraphs under Sect~on 10 Pg ill-35, additions to 1 st paragraph Pg ~V-3, Table IV-1, disaggregation af prior column 3 into columns 3 8~ 4 Pg IV-3, 2 new sentences, "As shown ~n Table IV-2 ", and nev++ footnote Pg V-3, addition of 3rd paragraph Pg V-7, addition of cEarifymg text under 1 st, 2nd, and 4th paragraphs Chapter V, Section C, beginnmg page V-9 - see bold strike-out tex# Table V-2, beg~nnir~g page V-42 - modified to ref~ect current programs Please fill-in time frames for newlexpanded programs Table D-1, eliminat~on of EQ Redev, modificatian of totals Table E-2, addition of guest parking requ~rements f Ippolsharetihsgelmtlchanges wpd t ~ U ATTACHMENT E ,, ~. i 5 ~ ~~ ti ~ ~ ~ F !ppd`5.shareicereportil99b~hcd.u~pd Revzsed 5~21~'97 & updated 6i9/97 The following "highlight/strikeout" text reflects the Cit~ CoUncil's recommended changes to Subsection C of the "Housing Objec~ives, Goal~, Policies, and Programs" section (5ection ~ of the Draft Housing Elemen~ C. GOALS, POLICIES AND PROGRAMS The basic housing goal of the City of Santa ~Ionica is to meet the existing and pro~ected housing needs of all its residents and ~ts regional responsibilit~es for decent, affordable housin~ opportun~ties for all income groups ~vlule maintam~ng an economically sound and healthy environment ~~ithin that context, the Citv has established the goais, policies. and programs that address the follo«~ing fiz-e ma~or topics • Housing Production • Housing Conservation and Improvement • Housing Assistance • Balance Housing vvith Other Citti~ Goals • Cit~zen Part~cipation The fc~lli~wing descr~bes each of a full range c~f hausin~grogra~s wt~ch ~ili be.uridertaken k~y th~ ~~ty, Housmg programs mclude programs bath currently bemg implemented in the Gi~y, and new programs added to address existmg and pro~ected needs. A bnef hackground on each program is prc~~~ided, followed b~~ the City's act~on plar~ for the 1998-2003 Housing Element plamm~g period Table V-2, Housing Program Sumrnary, located at the end of this section, sumrriari~es the gaals of each program for the plannmg period, and ~dentifies the program fundang source. respons~ble agencti~, and time frame for rtnplementation Tt~e programs c~titlir~ed belo~: and set far~h ~n #able V-2 are deszgned tt~ camprehe~sivel3 address fihe Ciiy's ide~tif~ed ~o~sing needs Czt;~ of Santa ~tonica Howm; Ob~ectives. HousinQ Element 1'-8 Goals. Policies, and Fragrams ~. . ~ s i GOAL 1.0: PR0I~ZOTE THE CO~VSTRti CTION OF :~ E«' HOti 5I1~ G=..:~^:: ~~: WITHIN THE CITI"S REGtiL:~TORY FRAV1Eti~'ORK ~.ir. rtr ~ ~rrrn:rr POLICY 1.1: Pro~-ide adequate sites far all t~~pes of housin~ POLICY 1.2: Encoura6~ and pro~~ide incenti~~es for the de~-elopment of hous~ng tn no~~- residentral zones PDLICY 1.3: Establish and maintain dz~-elQpment standards that support housin~.T deG~elopment til-hzie protect~ng qualit~• of life goals POLICY 1.~: ~lamta~n de~-eiopment standards that promote the d~ti-elapment af special needs hous~ng, such as affordable senior. disabled, or famil}' housm~, ~~~hite protecting quality of life goals POLICY 1.5: Periodicallv re~~tew° Crt~° taxes. fees. re~ulations to ensure that tlaev do not constra2n l~ous2ng de~~elopment 4 POLICY 1.6: Maintain and enhance the Crt~~'s expedrted and coordinated permit processing svstem PQLIC~ I.7: Ivlaintain cievclopment standards ~hat ensure that the develt~pment of ne~~= housing in r~sidential neighbor~oods is designed tQ fit wi~iin the existing neighborhoc~d e~ntexE. II~iPLEMENTATIOh' PROGRA~~S: Althou~h se~-era1 af the foilow~ng prograins could readily fit under other goals, the~~ are mcluded in this sechan because thet~ pnmanl~~ address the goal of increas~ng housang production Git~~~ ide Pragram l.a: Assess and Re~ise, Where Apprapriate, City Regulatar~- Req~irements Pragram Background: Continued momtormg and refinement of the C~t~-'s development standards and procedures are important to mimmizing the cost of de~~eiopment u~hile ma~ntain~ng the qualaty of residential pra~ects. 1998-2D03 Action Plan: Period~caily review and, w°here necessary ~d aft~r consuIta~tc~n ~-~t~ local arch~tects, re~-ise planning, zorung and development regulations, assessments, and fees to ensure that the~~ support development of a ti~ariety ofhousmg t~~pes and prices The follov~~ng specific anal~~ses/re~~isions trill be undertaken dunng the plamm~g period r._,,.i,,,.+„ ----a.r_.._~ .L~ _,._ ,,... -----a___~~ r,._ ...._a-----°---W~ r_~._. „ L Y U1U4L\. 111V1J1J ~ Lll~ lllv ll. ~ ll. YF lI1V\+\.LLUl\..] 1V1 ~.V1111V1111111~LL11J 11 Vlll (4 1 i+_~a.._~~~t r-~.. r~_...v... _ r~~_.~i~_W..,~ n..__...__. _ L. V11ui~iviiul V JV 1 l~1lAl1L iV Ca 1/~. v a.aVrllll\.11L 1\l- ~ it. ~v r~.i~ i;~ Y1V\.1,.]J El~mmate Cond~tional Use Permrt requirement for condorn~iurrts and evaluate other procedures ~rhrch achie~e an appropriate lev~el of design reviev~- Crty of Santa ~~ionica Housmg ObJ2CLiV25, Housing ~lement V-9 Goals. Pohc~es. and Pro~rams .•k ~ b~ T_.~.3._...l. ._a`.._....1 ~~.].F_~~+.~~.. ~.vuiuu~~ Yvwii~iui iaivuiia~.u~ivia~ Pz'opose amen ments to the Inclusionar~ Haus-ng Program (refer to Program 2 a) -r~ }~~ C ...._Lf.. a..~.._._,...... _a ~.L___ r_.__ al• ~a1~. 4ALL~lll ll~[LJIVAV.. a~.iaJ\. 111ti.v i114 li\.111S141V}~.~ ti.Vii~u~ai~.u •~i~illll vi~r --i..._,.,.. .,. a..r._.. ~a~__~~ cn on ,.s.~., r-.._...._. 1\.~~.a1uLlVll.] lV U\.1111Vr F11VLL~.~tA~~.-1i1~.V111~. CiJ VV - VV tJ\-t4\.liL Vt lil\r t-Vf.+ii~~ --- ~~'. -°.-- ~~---_ ° To che eXtent cons~stent ~~-ith State 1a~~ and the Charter. ~~~~u~u~. «..:,,.~~.. target Crty subsidies and }aanuses to affordable housing projects that serve households earmng 6I-8~% of the County median income ,...t._...~ ...._.,..r...,, .... .~.._ -~~_._~ n_~.~~_~~ .~ ..~i,.._. ~_a.r_~~._~_,. ~ ~YLil[iGlll~ LVYlJ1V1AJ ~V ~lll~ LVlllll.~. V1LLL11LLllt.~. LV Ul1VwY 111V11111\,UL1Vi1J 4l' ~_t___w ~ ~a....a.. ~.. ~ ~a__n .~r__..,. r~_ i__tr.._~~~~ ,_,a ..i.V.._~_~.~~ ~r t,~..~..,,~, o<i.,..,u.u~ t., 4.:vu~,.x~..s .,.,.,~~ ~..~ .~...,~ J114V\.J u.~.~ ~.~~.~.s.~u«.,,~ ~~ „~~__._~ _~ ..._r_..~_.1 ... r...~_....~ R2VlSe e~is~in de~eio ment ~:i~~~ Ycuiuu~ i~.aiuii~,iiiL,ii~f w iua.aiaua« ~ p standards as necessarsr to ~nsure the building enveiope ~equately accommodates the construction of allowable densit~~ bonus unrts , ilc~ ~'::,~~:u.. ~ ~`, and ensure t~at the s~andards v~hi~h are iievel~ped maintatn nefghborhaod eharacter. Consi~ier l~a~~ing neighborhood ~peeific standards fc~r ~iifferent neighl~onc~~ods_ As par# of t~is effort: Ensu~e that parking ~tandards do not creat~ a dislncentive for a~f'ordable hr~using projec#s wit1~ large fa~nily units. Consider ~he deveiopment €~f dif~er~;nt parki~-sta~dards tu ad~iress differing neigh~rhoc3d ~c~nditi~ns. Ensur~ that parking ~tandards are reasanabie €ar affordabie housing pro~ects. • Assess the feasibil~tS- of rnod~f~-ing off-site infrastructure impro~~ ement requirements to reduce housing de~-elopment costs • Gont~nue to support the canstruct~on of Ii~~e/~ork space and evaluate sievelopment standards and e~lor~ the use af deveiopm~nt i~centlves to pmmote the eonstr~xction of liue/wQ~k spaee ineluding art~ studios. + E~aluaE~ modificati~n of d~veivpment star~d~s to ~r~cc~ur~ge the develoFment of ~ousiug in coinmer~ia~ aar~ ~if the City. • Evaluate pofential ~ocii~i~ations to de~ei~~~~nt star~d~rtls ~hich waul~ en~ourage court~rartUgarden style apartti~~n~s. Responsi6le Division: City Planning Divtsion, En~~ironmental and Public VLTorks I~ianagement Department, Crt~~ Attorne~-'s Office Program l.b: Streamline Per~nit approval Processes C~h• of Sania ~4onica Housma El~ment Hous~ng Objectives. V-]0 Goals, Policies, and Programs 3 ~ ~ ~ V Pragram ~3rrekground: For residential de~~elopment in Santa 11~1omca. permits ma~° b~ necessa~- from a~~ar~etv of departments_ such as a permit to remo~°e rental umts from the Rent Control Board, and Plamm~g Comm~ss~an appro~~al af a subd~~~ision map and site plan Ther~ is a perception amon6 the de~~elopment indu5tn~ that Ehe Cit~~'s permit appro~-al process is difficult, and the amount of time required ta na~~2gate the process_ particularly~ through pubtic hearin~s, adds ta the costs of housin~ de~~elapment Th~s perception probahl}~ has same effect on the ~~illingness of the pri~~ate szctor to produce rnulti-family hous~ng in Santa '1~ar.ica (This perception and its effects are d~scussed in the section trtled "Cuinulati~-e Effects of Fi~-e Cit~~ Pro~rams` Requirements" in Section IIi B of this Draft Element To facilitate the der~~elopment permrt approval process, the G~ty uses the parcel- specific "Permits" data base to track the status and progress of applications ~ Qeographic mformation ~~~stem (GIS) is also in use for long-range planning pra~ects I998-2003 Action Plan: De~-elap a handbook of mterdepartmentat regulations and serE-ices to aLl1CIe applicants througY~ the de~~elopment approval process Impro~,~e "Permrts." the Cit~~'s computerized permit-tracking system. bt~ linking tk~e database to the Geographic Information 5ystem, enhan~mg the disp~a~~ and organizatian of infor~nat~on, and making the s5~stem accessible to the public Expand the types of information avariable on "Permits" and improve reporting procedures to faeilitate project tracking and prc~vi~e u~ ta da~e informatfon, Responsable Division: Git~~ Planning Di~~ision. Building and Safet}' Dll`ISI~!]. Information S~~stems D~~~ision Program l.c: Maintain Architectural Re~~iew Guidelines and Development Compatibility Prograrn Background: As a means of providmg greater certaint~ for pro~ect applFCants, the City has adopted and implements archrtectural re`:ie~~ guldelxnes for pro~ects that require Archrtectural Rer~ie~.ti- Baard (ARB) appro~-a1 The Cit}' also regularly rel~iews and revises rts der-elapment standards to ensure compaubiltt~- betv~•een rts deti-elapment standards and the archrtectural re~~iew~~ guidelines 1998-2003 Action Plan: • Continue to implement Crt~- architectural rei~ieu- guidelmes and re~-ie«~ de~~elopment standards, and reE~ise as appropriate, to pro«de pro~ect applicants ~i-ith clear desi~n direction and ensure destgn compatibility Citv° of Santa \~onica Housmtr Ob~ecti~~es. Hous~n~ Element ~'-l 1 Gaais, PolECies, and Programs `~ b `" ~ 'i RBSfIOll51GIB Dluision: Crt~~ Plamm~g Di~~is~an Prngra~t 1.d: Consider Rezoning Non-residential Areas for Residential Use Program Background: The City has ach~eved suhstantial success ~n producing adc~tional housing b~~ atlowing the constructian af housing in areas previously zoned exclus~tiel~ #or non-resid~ntial uses. There may~ be addit~onal opporturuties for further efforts to facilitate greater housing produc~ion i99$-2003Aeiion Plan: The Ciry ~vill expiore fi~rther opportunities for developing haus~ng in areas ~urrently zoned for nor~-residential use. ~es~on~i6le Divisior~: City Planrung Diy ision GOAL 2.0: INCREASE THE SUPPLY OF HOU~ING AFFURDABLE TO VERY LOVb~, LO~'V, AI~iD MQDERATE INCOME PERS~NS POLICY 21: Encourage innovati~•e mumcipal and pri~~ate sectar programs to prornote the financing and de~~elopment of housmg for v~rt~~ low, lov~°, and moderate income persons POLICY 2.2: Encourage the development and participatzon of nonprofit housing corporations in the productior~ and maintenanee of housing affordable to ~~ery lovv, io~.ti, and moderate ~ncome households P4LICY 2.3: Cooperate «-~th housing pro~•iders to pramote the derelopment and operation of rental housing for very lo~~~ and lo~~ income househo~ds, and oti~-nership hausing far lo~~- and rnoderate Fncame households POLICY 2.4: Supgoxt the enactment of federal, state, and local legislat~on to provide funding and incentives for the presen~ation and development of hous~ng affordable to verv lo«~. lov4, and moderate income househalds YOLICY 2.5: Ensure the continued a~~aiIability and affardai~~lity of income-restricted housing for very low, low, and maderate Fncame households POLICY 2.6: Support housing providers to promote the development of rental housing for ~•en~ loti;~, lo~v, and moderate income househalds that utilzze tax exempt bond financtng PQIr~~~ ~.7; E~eo~ge the distribu~ion af hot~sing far low a.r~d mc~derate i~co~e hQ~ehvlds throughaut the City ~'QLIeY 2.8: Cant7nue tQ pro~7de development incenti~-es and reduced planning fees for development af affvrdable ~ousing. Cit~~ af Santa h~ionica HousinE Element ti-1? Houstne Ob~ecti~~es Goals, Polic~es, and Pro~rams ~:~ r _ ~ s u POLICY 2.9: Work «~ith local non-profit communzt~ organizations ta maintaxn local capac~t~~ to de~-elap affordable hausmg an an on-going bas~s POLICY 2.10 Allovti~ use of Cit~--~enerated afforc~able housing funds for landbanking of sites ti~'luch are clearl~- surtable for affordable housing pro~ects. I~TPLE'~ZEi~T~TION PROGR~NiS: 5e~•eral af the follo«~ing programs could also be included under other goals, but are listed here because each z~ primaril~~ focused on increasmg the snppl}~ of naus~ng affordable to ti-er~- lo~~~, lo~.~-, and moderate income persans Pragram 2.a: Maintain an Inclusianary Housing Pragram Program Background: ~,dapted in 1990, Propasition R requires that ~0 percent of ali muiti- famil~~ residential housin~ ne~~lv constructed ~n the Cit~ be permanently affordable ta and occupied b~~ lot~- {60 percent of County- median income) and moderate (100 percent oF Gounty median income} income ~ouseholds Of the affardable unzts, at least half must be affordable to lo«~ incame hauseholds In ~ 992, the Cit~• adopted the Inclusionan- Housmg Program {Ordinance 161 ~} ta ~rnplement Proposition R The implementation ardinance requires pro~ects af 20 or more unrts to pro~ride the inclusionary unrts on-site Ho~re~er, under certam circumstances, pro~ects of six or fe~v°er umts may pay an inclusionar~~ ~ee in lieu of ~ro~~iding an~ uruts on-s~te, «-hile pro~ects of bet~~.~een 7 and 19 units may pay the inclusionarv fee mstead of pravid~ng the required low ~ncome umts on-site, but the reqwred moderate incame umts must be pro~~~ded on-site As part of this Draft Element, an ~n-depth analy~sis of the effects of the City's Inclus~onan~ Housing Program on housing product~on «~as conducted, suminarFZed in Sect~an III.B of the Draft Element The folIowmg 1998-2003 Action 1'lan considers ~~anous revisions to the Implementmg Ordinance based on the results of this analysis 199&-2003 Action Plan: v i nno~i nnn _r ,...~ _.a,__,...._ }t_ r_~.~., r_...~_____~_~_ rr~_...._,_ n..~,___~ ~ 1' i i ~i~.i a»i~ Yiv~..va.,. .i~ii.,icwuai~.aia.~ w ua~. ~.itJ .~ iiit.~u~av~auc i.~vuai.i~ i iv~~uia. YL7G1 ._.l_.,.L. l...l« ., `.,.a L~........,` ...]"_"_~ '"'L'1,_ ..,_..... 1_.:....~ ""iL ~OPCuiiuiii.~. avc.~~ •yllA4li .i~.if. .~~~,t,~„~ aavuoaaa~ Yiv~.~...uvu .ru~a~. ~.vua~+iyiiis ~yiui n_..~.._.._~.r_. n ~~..,._.--- -----. ___i..a_ .t.~ r ~t,._------- ~~ I~}~dlfl~tli3~ ~fl ~~ 1 1 V~JV.IitiVll lt 1.+11L1~1.~1rJ 111GL= 111ti1L1LL\. ~llV+ 1V11V YY 111~ ~ Cit~'s ~i~cIusian~ry Housimg 1'FOgram (~rdiz~~c~~ i~1 ~) whi~h ~vvuid-~~~ ~Pr~rt n~ew h~~it~g produe~ion:ia a~+ay t~t ~ances ~~ ~duetiar~ ~ri~#h m€~nt~~nc~ ~~i consar~at~on ~f ~~isfi~g h~~sing sto~k, whil~ ~pl~ng vkr~t~ ~?r~p€~sitit>n R. Change~ tu be cor~sidere~t inelude, bu~ are ~ot limi~ed #a, ~e f~l~orvi~g: E~panszon of the in-l~eu fee option in con~unction ~ti-rth increasing the City's authorit~• tu~der Article 34 and cons~sten~ w~ith Costa-Hav-<lcirvs (see Program 2 k). - Zonmg ~ncenti~°es in exchange for the construction of 30% affordable umts on-stte. Cit}~ of Santa l~Ionica Housmg Ob~ect~ves, Housintr Element ~:'-I~ Goals. Poltc~es. and Pro~rams ~+ e _ ~ ,~ ~ - The abilit~~ to sausf~~ the inclusionan~ obligation b~~ meeting the requ~rements of State d~nsit~~ bonus la«~. - The abilrtti- to satjsfi~ the inciusionar~~ obligation ~~- compll•ing ~;~tth the reqwrements of ta~ exempt bond financin~. , _.._ ---~ ._ ~____ ~~_ ~_,~._,....~_. g~riodic recalculation (every~ t4i~o t~ears) ~ :111.Y1J4t1111-11\.U lY\. LC[l~LLl[LlllJll~ af the tn-lieu fee in order to promote praject feasibilit4~, generate m-lieu fee re~renu~s, and sustain Cit~:u~de compliance with proposition R; - A reyised higher thresholc~ for «~hen all afforda~le umts ~nust be pro~~ided on site (re~~ision to the current threshold of 20 units}. and ~~ ~ - Eliminatmg the option for satisf~-mg the inclusionar~~ obligation b~~ pro~~idina all moderate mcome units at 100°/fl of the count~~ medaar~ famil~~ ~ncome ('VIFI) or replacmg it w~ith an option to satisfi~ the rnclus~onary obligation bti~ provtd~ng 100% of units deed-restncted for househalds earn~ng less than SO°% of the count~-1t~IFI - Cvnsider modifying #he in-lie~ f~e strueture to encourage housing de~el~pment ~n targeteact azeas of #he ~ity. Propos~d ame~d~nents wiil be reviewed by the City ~a~cii. Responsi6le Division: Housing Dn~~sion, Cit~: Planning Di~•~s~on. C1ti° Housmg Author~t~~ Program 2.b: Maintain a Density~ Bonus Program Program Backgraund: Under State lati~, deti~elopers ofresidentxal pro_~ects contaimng fi~-e or more un~ts may~ be eligible to recei~~e a 25% densrt~~ bonus tf (1} 20 percent or more ofthe unrts (not including densit~~ banus units) are set aside for. and affordable to, households i~rth lower incomes {~SO% vf area Fnedian), "affordable" for this group means rents set at 30% of 60% of tk~e area median ~ncome, or, {2} 10 percent or more of the units are set aside for households wrth ver~~ lo«- incomes {<50% of inedian), "affordable" for this grvup means rents are set at 30% of ~0% of the area median. or (3} 50% of the umts (not includm~ densrt~~ bonus units) are set aside for semor citizens There are no income or rent restricuons on such pro~ects "Senior cinzens" n~ust be at [east 62 ~~eazs old ifthe pro,ect consists af 150 or more units, the "seniar" is defined as at least 5~ ~~ears of age Crt~~ of Santa ~4on~ca E3ousmg Ob~ecti~es, Housmg Element V-1~1 Goals, Pol~c~es, and Proarams ~ ~ ~' Pro~ects qualift~ing for a State densit~~ honus also are eli~ible for at least one additional re~ulatorS~ concession or incentn~e resultmg in identifiable cost reduct~on, or other incenm e af equi~~alent financial ~-alue based upon ule land cost per d~~~ellin~ umt In addit;on to thes~ State dznsit~~ bor~us pro~~is~ons, the Cit~° has adopted add~tional densit~- bor~us incenti~~es ~n its Zonin~ Ordinance. including • al~o«-ances for an additional 2~ percent densrt~- ~ionus for 104 percent affordable housing pro~ects, • Vo lim~t on the number of floors for 1 QO percent affordable hous~ng pro~ects. pro~°ided that the height does not exceed the max~mum limit in the applicable zoning distnct. • Allov~-ances for a ten-foot height bonus for 1~0 percent a~fordable housin~ pro~ects tn non-resident~al zones, • Allo~~-ances for FAR ban~s as an incentive for residential de~-elopment in commerciai zones_ • Relaxation of density restrictrons for congregate housmg. SRO's, horaeless sh~elters. and transrtional haus~ng, • Relaxat~on of parking requ~rements for 100 percent affordable, congregate, and sen~ar hous~ng as ~~~ell as SRO's and t~omeless shelters_ and • Allo~~~ances for density bonus of up to 5~. 75. and 100 percent in the Ocean Park and Narth of ~~'iishire zomng districts 199$-2003 Action Plan: ~...a_. ._~....~,.... ~----~------_. _~__a~ ~rr ~.__~ ~L,. L~..,.~_~~ _,~_.. ~iuu~. v+aiiuar:• a,ni~aua~ ll\.YVEVrJti1L114 acuuaucuu,~ ~aia4....i.E uia, vuiiuiii~ ~.iiv~i~+Y~ ~a~~__~.~7_. _a_._ .t_ ~r .a~_~..__ t.__.__.. _ _.,] __J__ uu~.Yu4L41Y Ul..l.V111111VLL444 LilV \.V11JL1lLLL1V1! Vl 11V11J1L~ UVllliJ U111LJ~ Ltllll ~rV11J14+t+i ~!1tI --L -•-°~--s- -r~_._~__~a ~~ Lr _ 1\.YiJ1V11J lV JLLl:ll JlLi1lLLfAll[J~ 11 4YL~.llllllll.'tl LV V~. lll~~r4.]JUi~ ~.~vis~ ~~ing developmeat sf~c~ards as nec~ssax~ to assure the ~~iid~.~ve~ape ~i~~ acc~~vdates ~~n~#ruc~ic~ri ~~nsity boni~s u~ts and ea~ur~ that the standards whic~ are dev~o~ed maintain ~eighbc>r~ood character. Cc~r~ic~er h~ving neighbc}rhood specific stanc~ards for differ~zt~ n~i~hbvrhnods. Responsible Division: C~ty Plamm~g Div~sion Program 2.c: Provide Assistance to ~ion-Profits for Housing Deti-elopnnent Program Background: The Citr~~ pro~~ides techntcal and financial support to a~~arietF~ of non-proiit ~ousing pro~-iders to support affordable ho~smg de~.~elopment These housing pro~~iders have included the follo«~in~ C~n• of Santa iblonica Housm~ Object~~~es_ Housing Element ~'-1 ~ Goals. Pol~c~es, and Programs „~~ ~ ~ - ~ • Oeean Park Cammunit~• Center (OPCC) • Gommunzti- Corparation af Santa I~lomca (GCS~•1} • Retirement Housing Foundauon • Nlenarah Housan~ Foundation of thz JEti~~ish Federat~on Gounc~l (,~FC) of Greater Los Arlgeles • ~'olunteers of Amenca (~'O ~) • Pro~ect I~e«~ Hope • L"p~ti~ard Bound • t e~;~ Direc#ions - Step Up on Second Sectron IL'- Re~~ie}~~ of Hocssrng Element Past Performance contains a description of these organizations and Cit~~ assistance pre~~iousl~~ provided I998-1003 Action Plan: Contmue to pro~~ide financral and tec~nicat assistance to non-proft housing providers to suppvrt tl~e c~e~-elopment of affordable houszng Continue to pro~~ide technical and financial assistance to non-profits in the completion of HliD Section 202, SectFOn 511, and other fianding applicat~ons to increase the competiti`~eness af local housing ~:.,;ects, W~rI€ ~~th local non-prc~fit ~gencies to assure i~ eapaci~y on an on-going bas~s. ~esponsi6fe Division: Housmg Dn-ision, Hurnan Services D~yision Program 2.d: Provide Funding to Assist in Housing Production Program Background: The Gitv utilizes federal, state. arid laca~ funding programs to assist housmg pro~~iders i~~th the de~~elopment of affardable hous~ng Fundmg programs used br the City include Federal Prograrns • HUD Section $1 I Program • HUD Section 202 Senior Housing Pro~ram • Hous~ng Opportunities far People v~-~th AIDS (HOPVVA} • Supportive Housing • Federal Emergenc~~ Shelter Grants (FESG) • Shelter Plus Care • HOI1~iE Program • Communrt~- De~~elopment Block Grant • Sect~on 8 Rental ~ssistance and Housin~ ~'ouchers State Progr•ams • Lo1~ Income Hous~n~ Tax Credit (LIHTC} • Califorma Housing Finance :~genc~- ~CHFA) Gty° of Santa Nlonica Housing Db~ect~~•e~. Housm~ Element V-16 Goals, Polic3es. and Pragrams ~~ ~ ~u Loccrl Pr~ograna s • Tenant O«-nership Rights Charter ~mendment "1'a~: Re~-enues • Rede~elapment Pro~ects • Inclusionar~~ Housing Pro~ram Fees~~Housin~ Praduction • Office De~-elopment ~~irtiCation Pro~ram • I~-1ult--~amil~- Earthquake Repair Loan Pragram (~•TERL) • General Fund A detarled descript~on of each of these programs, includ~ng e}~~ible act~i-~t~es and fund~n~ a~~aflabilit~~, 15 incl~ded in Appendix D of th~s Draft Elem~nt Sectinn I~~~ - Revrelt~ vf Housrng Elen2efit I'a,~t Pef•formance also includes a diseussion of ho«- these fund~ng sources ha~-e been used to assist Santa yiomca res~dents in the past 1998-2003 Action Plan: Gontinue to applt- for fundtng for affordabie housing productfon from federal and state programs Continue to seek out ne~° so~u-ces of Federal, State. and Caunt~~ fiindmg Ta the extent feasible utilize Rede~~elopment Funds. (See Program 3a ) Respo-~sihle Division: Housing D~~~is~on, Human Services Division Progr~m 2.e: Assess Alternative Afforda~le Ho~sing Finanee Programs Program Background: This program addresses the decrease in Federal and State fundmg and need for addrt~onal funds to stem the Ioss af affordable hausmg due to <<acanc~- de- control Under this pragram, the Grty wzll assess a variet~• of alternati~~e fundmg mechamsms for the construchon of new~ affardable housing Potential funding mechanisms mclude Tax Exempt Bonds and State La«~ Income Housing Tax Credxts. «~hereb<< loans are made to propem> owners in exchange for deed-resmcting 20 percent of the units ta households earnmg no more than 50 percent of the median County income or 40 percent of the unrts are deed-restricted for households earmng no more than b0 percent ~f the med~an County income, HUD Section 1Q8 Program, ~4hereb~- loans are znade using future Commumt~~ Deti~~lopm~nt B~ock Gra,nt fun~s as ~ollatsral. '~iortgage Gredit Certificates, «~hereb~- first-time homebu~~ers earning up to I20 percent of the median Count~- incoine ~:~a? v~. ~~cu~«u ~:.~ : u~, t~ °~ .. .,v~} /~J- L ......._~... .,.... a........~ ~~.., . _ ~~_ ~r+i.... _... rJ414\,11L V1 lll\.' 111L~r1 V..]L lJtll~ ~~ LU 11+J lALil lll~ L114 ~li Jl Y\.CL[ V 1 Lll~r 111V1 L~l1~t. ma~r takE an anrtual credrt against federal income taxes of up to 20 percent af the annual interesE pa~d on #heir mortga~e. C~ty~ of Santa ;~•Sanica Housin~ Ob~zct~E•es. Hausm~ Elemznt V"-17 Goals, Policies_ and Pro~rams 47 w< ~- f l+ Once appropriate fund~nQ sources ha~~e been identified, the Cit~- ~;ill take the steps necessary- to utilize these funds, including, if appropriate. obtainin~ ~-ond authorit~~ 1998-2003 Action Plan: • Assess crean~~e financ~ng mechanisms such as tati-e~empt bond-f nancing to increase a~-ailable Citti~ f nanc~ng for housin~ proGrams • Consider utilizmg HL'D's Section 1Q8 loan program • Assess a~~lortgage Credit Cert~ficate program to pro~~ide assistance to first-time homebu~-ers (descr~bed in detail under Program ~ c} • Continue to de~~elop a ~~orking relattanship wtih private lenders to le~-erage City funds • Contin~e to participate in recomrrtendmg changes to the State I'~~ Credit Commtttee's Qualified Al~ocation Plan • Encourage developers to take advantage of affQ~le hous~g bt~nd fina~c~ng and faeifitate coorr~u~ation among ~ievel~pers when ~ppropriate. Responsi6le Division: Housing Dt~~ision Program 2.f: ~ssess the Use af Citti•-Qvvned/Publicly-Owned Land for Affordable Housing Program Ba~kgrourtd: As a highl3~ built out Citt~~. Santa =Vlonica has fe«~ remaimn~ ~~acant properties suftable for residential de~~elapment. Tlus shortage of vacant land necessrtates the use of alternative mechanisms far pro~-~ding sites for housing Such rnechanisms include long-term ieases of G~tti~-owned or publzcl~~-o~~ned land. and sale o#' air nghts To facilrtate affordable housing development. the Cit~~ could lease ap~ropriate City-owned praperues an a long-term basis to housing developers in exchange for a long-term corrimitment to maintam t~e unxts (or a portion of the umts} as affordable housing Another mec~anism is the sale af air rights abo~~e Crty-ov~ned parking lots Vlanti of the City-ow°n~d parking lats are surface lots or structures de~eloped at lower densities than permitted by zoning The City~ could sell ar lease the unused densities abo~~e these parking lots/structures to housing de~~elopers for affardabie hous~ng deti~elopment 1998-1 D03 Action Pla~t: • Prepare an in~-entor~~ of publkclti~-o~~~ned 1and. ~ncluding parkFng lats. and e~amine the feasibiiit~ of their use for affordable housin~ development Cic~~ of Santa Ntan~ca Housma 06~ectn~es. Hous~ng Element V-18 Goals, Pol~cies, and Pro~rams ~r y .~ . i Assess t'~~ use of C~t~~-o«-ned, publ~cI~~-a~~ned and pri~-ateiy-ovs~ned land for affordable housing Cons~der purchasing land for future de~-elopmenf af affordable housing Responsi6le Divisron: Resource 1,~ianagement Department. Cit~- Planning D~~-ision Program 2.g: Foster Housing Derelopment through the L;se of De~~elopment Agreements Program Background: A De~~elopment A~reement (D~j is an a~reement bet«•een a de~~eloper and a local ~oti~ernment that outlines the regulations and poiicies governmg the de~-etopment of a specific piece of propert~~ In Santa ~Ionica, D~s ha~~e been prepared for a number of discretionar-}~. mult~-phase proJects V6'ithm these DAs. special affordable housing obligations are often incorporated 1998-2003 Action Plan: Continue to negotiate ~nto De~°elopment Agreements the mclusion of on-srte affordable housing or pa~~ment of housing in-lieu fees, abo~~e and beyond e~~sting City requirements Responsible Division: City Pian.ning Dtvision, City Attorney's Office Program 2.h: Facilitate the De~~elopment of Housing for Families w~ith Children Program &ackgraund: In Santa ~loniea. ti~er~~ feu~ of the ne«• housing umts being buiit in the prmate hous~ng market are suited to the needs of farnilies ~i~ith children Accarding to the 1990 Census data for the City. 92 percent of large fam~ly. renter househalds earning up to 9~ percent of the County medtan incame expenenced one or more housing prablems. mcluding hausing overpayment, o~ercro"~dmg, and~ar substandard housing As ind~cated ~n Section Ii A 2, both the U S Census and local scl~ool dFStr~ct data reveal significant ~ncreases tn the City's ~-ery~.-oung cluldren There is a need to de~-elop a strateg~- to support the maintenance, impro~~ement, and development of housing for famfl~es ~y-zth children_ ir~cludfng large families In addition, suppornve ser~ ices, such as child care assistance to lo~~- ~ncome families, are needed to ensure the contmued maintenance ~f houszng {see Goal 5 0} I998-10~3 Action Plan: Dedicate a portion of the Cit~'s affordable hous~ng financial resources to the product~on of unrts for fam~lies ti~7th children • Assess the poss~b~litS~ of perrnitting the recontiguration of ehisting buildmLs to increase the number of bedrooms and the size of units for ~ ~C Y~r~c~iL deed restricted affardable pro~ects for famflies «,~~th children Though this program «~ould reduce the number of o~-erall units in the Cit~~ _ it ~~~ould prov1de fnuch-needed large famil}~ umts Cit.~ of Santa Manica Housine Ob~ech~es. Haus~ne Element ~'-]9 Goals. Pohcies, and Programs ... , ~r~ ~: - f c:. ~lssess the possibalit~~ of re~is~ng the zoning code to allo«• for the construei~on of aIternative t~pes of hous~ng {e g co-housing}, including the construction of such hausing on C~tti--o«ned properties Consider alternatiti~e det~elopment standards {e.g herght, lot co~~erage. densrt~~. setbacks, parlcing reqairements, etc ) that facii~tate tne de~~elapment of housm~ for families u~ith children including the pro~~rsion of outdoor play areas for chtldren Responsible Division: Housan~ D~~~~sion {lead}. Cit~~ Plamm~g Di~~ision Program 2.i: Facilitate the De~e~opment and ~17aintenance af Specialleeds Housing Program Backgrounr~: Hous~n~ for seniors. and the ph~~sicallr and mentall~- disabled «~ll need to address their special needs, such as bamer-free environment and accessib~lat~~ to transrt and ser~~ices The C~n- intends to expand its strate~~- to support the ma~ntenance. improvement, and de~~elopment af hausina for households r~itth special needs According to the Los Angeles Count~~ De~artment of Health Sen~ices, there are currentl~~ 1,DOd residents m Santa ?~~omca «~ho are HIV pasit~ve According to the Santa ~~ionica AIDS Pro~ect, at present there are approx~matel}~ 340 !~IDS~'HIV patients in t~ie Cin «~ho are receiving medical treatment As the disease progresses, these peopte ~~-~lI requzre ~-arious t~-pes of assistar~ce ~vith legal, medical, insurance, emplo~~ment and housing issues Since 1989, the Cit}~ has assisted in the del-elopment af a ~~ar~et~~ of spectal needs housing. including se~~era~ semor housin~ pro~ects, a housing pro~ect sen~~n~ the mentall~~ ~11, and a pro~ect serc~ing those persons 1~~-~ng ~~~ith HIV~`:~IDS The Cit~~ also funds a wide arra3~ of in-home and independent li~°mg assistance targetin~ seruors and persons «~~th disabilities to reduce institutionalzzatzon and ma~ntam self- sufficiency m housing (see Goai ~ 0) 1998-Z003 Action Plan: Ident~fi- existing resources and der.-elop ne~~- resources to fund the de~-elopment of supporti~-e housing and assoc~ated senJices Strengthen partnerships ~~~ith sen~ice pro~~iders to support the efficient pro~~ision of senices to special needs housing de~~elapment ~~~ith current City resaurces Assess the development af a high subsidy gmgram for the development of permanently a~fordable hausing for ven=. ~~ers- low incorne households earnin~ minimum 1~~age. ~vhich wauld tnclude both SRO and fam~ly uziits Respansible Division: Human SerE'rces Division {lead), Housing Di~~~sion Cin~ of Santa h4on~ca Housins Ei~ment ~'-? Q Housina Ob~ectn°es Goals. Polic~es, and Pro6ram~ ~~ ", til Program 2.j: Facilitate the Provis~on of Emergenct-, Transitional, a~d Permanent Housing far the Homeless Program Backgrourrd: Santa I~1or~ea has a signa~icant homeless populatian. rangin~ from 700 to 3.600 homeless indi~iduals as est~mated b~~ ti~ar~ous st~dies Efforts to pro~~ide shelters snd ser~~ices for the homeless hai~e been led b~~ local non-protit organizations funded ta a large degree b~~ the Crt~- Far e~ample, the Cit~- assisted in the de~~elopment of the 100-bed SAMOSHEL emergenc~- shelter for the homeless and provtdes annual grants to the Sal~-atian Arm~~ to operate this shelter The Crt~- supports and de~~elops a mi~ of emergenc~-. trans~tional, and permanent housing oppo~tuntt~es far homeless ~ndtvic~uals. thereb~~ creat~ng an effecti~-e continuum of care approach to address ho~nelessness in Santa ~lonica (see Goal ~ 0) 1998-2003 Action Plan: Seek and le~~erage autside funds for emergency and transitional housing de~~elopment V4'or~C in partnership wrth local non-profits for housmg and supporttve ser~~ices Consider givmg a pnont~~ to persans in temporar}- or transiuonal housing for occupancy in permanent affordable housing m the Crt}~ Responsible Divisian: Human Services Di~~~saan {lead), Housing D~~ision Pragram 2.k: Expand Art~cle 34 Authorit~ Program Ba~kground: Arttcle 34 of the state constitution requires that an~° lou~ rent housing pro~ect developed, constructed, or acquired b~- a public agene~~ must first l~e approved b~~ a ma~ont~~ ofthe voters liti-ing m that~urisd~ction Requirin~ such publ~c appro~~al can act as a barner to the de~relopment of affordable housmg In compliance with this article, the Cit~~ of Santa lblanica put a referendum (Propositton N) before the vaters in 1978 in order to «~in appro~°al to "develop, finance, or rehabilrtate, but not o~~-n or aperate ti~~thin the City. housing for rental to lo~r and moderate in~ome persans, no less fl~an 5d percent af vs-hich shall be resereed for persons age b0 or ~lder. not to exceed in total throughout the Crty-, 1 percent of the dwelling umts in the Gity " I99$-20D3 Action Plan: i, ...~~......._r..-.... __._aL. --~_.J___a.~_ ~1' r'"_..,.7.~„ .L.. .... 1.,_.. F__ _~i'_~_ '_~.J~_ .L.. 111 4VA1Juii~.~ivii •rilll <-V11Jlla~.lU~iVia vi a.~a~JG1114.i111~.., 1f;4 111-1i~.lA 1\.l: Vr/L1Vl1J uilu~.i LLll T~_r.__._~____ rz~__~__._ n_,.~~_._._ i,..... n_~._..,,_.,. 't ~~ ~eek ex anded Article 3~ C1tV~g iica.au.~avaaua~ iivwiiEC~ i~v~iuaai ~J\.V a iv~,icuii ~. u~ F Authar~t~' to util~ze a~-ariety af re~°enues ta de~-elop. canstruct. or acquire lo«- artd moderate income rental housing pro,~ects Responsible Drvision Git~~ Plannin~ Di~~ision. Housing Division Gih~ of Santa Monica Housine Elzment Hous~na Ob~ech~~es. V-2l G~als, Pol~ctes and Programs ~ ~~ - ~~ GQAL 3.0: PR~TECT THE EXISTInG StiPPLY OF ~-FFORDABLE HOUSING POLICY 3.1: :~meliorate Fhe ~ffects of the Costa-Haci-kins ~•acanc~ de-contral regulation on the affordable hous~nQ stock POLICY 3.2: Encourage the pre5er~ ation of affordable ren±al housing POLICY 3.3: Cont~nue to protect rental housing b~- limrting the con~•ersion of rental unrts to o~.vner~hip units POLICY 3.~: Encourage the re~lacement of multi-fam~l~- housing that ts demolished ~; POLICY 3.5: Modtfy the Sect~on $ program to ma~:imiz,~ its effectiveness in the market ren~ environment created by the Gosta-Hawk~ns ~acanc~ decontrol legislat~on IMPLEMENTATION PR4GR4'VIS: Se~~eral of the follo"°ing programs could readily fit under several goals, but are included ~n this sectian because each is primarily focused on the goal of protectrng the existing supp~~- of affardable housing Program 3.a: De~•elop Programs ta Ameliorafe t#~e ~f~'eets of Costa-Hawkins "i::;~~.~~:. ~~mr Pragram Background: Citizens of Santa R~lonica adopted the rent control lau~ in 1979 The cl~arter amendment estahlished an elected Rent Control $oard ta regulate rental uruts in the City and ensure tl~at rents w~l~ not be ~ncreased unreasonabl~•- Adoption of the Costa- Hav4-kins Rental Housmg Act ~n the Fall of I995 b}~ the State Legislature, ho~~ever, initiated ~-acancv de-control in the Crtti Beginning in January 1999. after a three-}'ear phase-~n per~od,~the new la~~ ~~ill requ~re ti-acancy de-controlirecontrol m apartments, and eomplete de-control of hauses and condonninaums Santa Momca has appro~mately 30,000 rent-controlled ututs In September 1995, the Santa :Vlonica Rent Control Board adopted rules permrtting earl~- implementation (October 1995) of the Costa-Ha~vkans Rental Housing Act Vi~'ithin the first eight months, over 3,000 units ttave already applied for vacanc}~ de-control The effect of this ne~;- law on housin~ affordability has been studied extensively as part of this Draft Element. By 2D03. bet«een one-half and three-quarters of the 1995 rent-controlled stack in Santa ?Vlonica is pro~ected to be vacancy de-controlled With the Costa-Hawkins Act, med~an cantrolled rent is pro~ected to increase b~- 31 percent bi~ 1999, and by 28 percent b<< 2003 Casta-Ha~rkins v~ill make it more diff~cult for the.~vusiz2g Author~t~t #fl f~nd lat~dlor~ {and to keep ~andlnrds) w-~ilu~g ta participate ~n the Sect~an 8 pr~gram. Befc~re Co.sta ~Iawt~i~s, in most cases, Section 8 offered landlords a htgher rent than they could receive ttnder rent cot~trol, and tha# rent ad~~antage was enaugh of an incenhve to attract ~aridlc~rd pazticipation After G~sta-Hawkins, Sect~on 8~vill have to offer comge~t~~~e market rents artii ather incent~ves to attract landlord part~czpat~on Crtv of Santa I~•ton~ca Housma Elernent ~'-2' HDll51i]Q Ob3ect~~•es Goals, Policies. and Pi'o~rams ~; ~ . ~ J Func3ing sources mati• include redet~elopment s~t-aside funds, R1ulti-Famil~• Eartl~quake Repair Loan (i~iERL) proGram funds, TORCA funds_ and Ptco ~eighborhood Trust Fund 1998-2003 Action Plaia: De~~e~op pragrams to protect tenan*_s against landlord cancellation of e~sting Section 8 contracts [mclud~ng City andf`or pri~ate foundation-funded subsid}-) to enable tenants to remain and pa~- the MAR. The Housing Authont~~ shauId talce all nec~essary steps to increase Fair Market Rent {FA~IR's} so ~iat Section 8 can offer market rents, If necessary, develop a package of incenhves to encQUrage Iandlord~ to rent to Section $ subsidized tenants and t~ con#fnue #~eir participat~on ~n the Secrion S prograrri, poss~bly ineludmg: Suhsidized laans and/vr grarits for rehabil~tation R~instated guarantees agau~st rent loss and c~amage Imprv~~d tenant sc~enin~ and tenant support serv~ces De~~elop a comprehensxve strategy to address the effec#s of the Casta-Hawk~ns Rental Housing Act an housing affordabilitv In~estigate the feasibili~y of the follo«~ing mix of programs. - a City-~~~ide acquisrtlon an~,~or rehabihtatfon program that pravic~es fundzn~ in exchange for the dedication of deed-restrieted umts. - expansion of the Cit~'s multi-family acquisition arad rehabiiitation program. - a loan program that pror-~des below-market rates to ~nance new construction in exchange far the dedication of deed-restricted umts, - a program to permzt the con~~ersion of rental unrts to ow~nership units in exchange for permanentl~~ deed-restr~cted rental uruts, and - to the extent f.easible ut~lize add~~ioz~al ~-o~t-l~using ~$de~i~pz~~it ~unds ta supplement ~he annua~ 2Q% ~et aside . requireme~tt fo~ eli~ibl~ hc~xsir~g acquismon, reha.bititataan and new eon~c~ic~n gurpos~. In additi~n, create a package vf prflgrams ta provide ~ncentives for landlords to pravide affardable hausing in exchange for deed-restr~cted af€ordat~ie rental units. In conjunction ~~~~th the Rent Control Board, assess the feasibility of mad~ftcat~~ns to the Rerit Cantral Lau: to encourage add~tianal development af multiple famiI~~ apartmeflts. C~ty of Santa I~ton~ca Housmg Ob~ecti~•es, Housmp Element ti~-2~ Goals, Policies. andPro~rams ~, r ~ ~ ~ ! C~ Respansi6le Division: Houstn~ Dj~~ision (lead), Rent Control A~enc~~ Program~ 3.b: Protection of l~•iobile Home Park Tenants Progra~ai Barkground: The Cirti~ has t~io older mc~b~le hc~me parks t}~at uere or~~~nallt established as an interirn use requirinQ a cond~t-anal use perinit In order ta protect these t«~o parks, the Git~- created a mobile home park zone (~~1HP} ar~d zonzd the parks ~-iHP Tznant~ at one of these parks are presentl~- seeking to con~~ert ihe park ta tenant o~.~r~ership r94b-zooo A~t~on Pra,r: Contmue to protect tenants at existtng mobile hatne parks Assist w~th mobile home park re~abilrtation or convers~on to ov4-nersh~p housing if appropriate and!or feasible Responsi6le Division: Housing Di~~ision, Cit~~ Planning Dz~:ision Program 3.c: 1Vlaintain a Tenant E~°ietion Protection Program Program Baekground: The Rent Control La~~~ Charter Amendment l~m~ts the grounds on ~~~hich a tenant ma~~ be e~-icted to "~ust cause " The grounds for eviction include• (1) occupanc}- by the o~~-ner or his/her ammediate famil~-. {2) dernol~tion or converston of the property after obtainzng a remo~~al permit from the Board, (3) faiIure to pa~~ rent, and (4) refusal b~~ the tenant to provide reasonable access for necessar~~ repairs and improvements Tenants can also be e~~cted ~i~hen t~e o~~~ner seeks to «-~thdra"- the entire prapert~~ from the rental hous~ng market pursuant to the ElIis Act Gertam of these evictions entitle the tenant to recen~e relacation asszstance from the tenatit's landlord_ Additionall~-, lov~~er mcome. Ell~s Act displacees are ~i~~en pr~orit~~ for Section $ and h~using ~~oucher pro~rams The City has also ~ong maintamed housmg anti-discrimination protections, ~~~hich among other prohtbitions, pre~•ents a tenant from being e~~~cted if the tenant has married or had children. therebv ~ncreasing the numher of occupants in the tenant's umt Ordinance No 1822 adapted h~~ the Citti~ Council in I99~ also prohibits evictions because a tenant has established a domestic partnership Ord~nance ~10 1859, adopted by the City Council in 1996, prohibLts spec~fed farms of conauct b~~ a landlord ~f c~one mal2cious~t• Tnese znclude• {a} reduetng ho~sm~ sen~rces. (b} reducmg maintenance; (c) failing to perform repairs and exercise due diligence in compietin~ repairs. and {d} seeking to term~nate a tenanc~~ in bad faith 1998-1003 Actton Plan: Cit~~ of Santa h7on-ca Hous~n~ Element Housmg Ob~ectn~es, ~'-~~ Goals, Policies, and Programs ~2 ~l 1 M / ~ + ~ Cont~nue to pre~•ent unla~~-fu1 e~~ictions through enforcement of "~ust cause" e~ ictiot~ protections • Contmue to pro~ide priorit~' for Sect~on 8 or housing ~~aucher assistance to ~o~ier income, Ellis Act displacees • Continue t~} fund le~al aid or~an~zation(s) ~~°hich pro~-~de tenant educat~on and representat~on re~ard~ng landlord~'tenant dispuies • Re~-iew current ~a«-s and reeommenc~ attr~~ neec~ea modifcarions to ensure prQtection of tenants to the rnaximum extent legally feasible. Responsible Drvisiot:: Cit~- Attorne~'s Office. Rent Control A~enc~•, Housin~ Di~~tsion_ H~man Ser~~ices Diz~istan Program 3.d: Facilitate the Preser~~ation of At-Risk Housing Program Background: The City has assisted ~n the de~-elopment of a ~~ariety of affardable housing pro~ects Some of these pro~ects are at-risk of con~;erting to market rate due to expiration of use restrictions Section II - Hotssmg :~~eeds and Resources of this Draft Element evaluates the at-risk potenual of these pro~ects These at-rzsk pro~ects are identified in Table II-? 1 in th~s Draft Element 1998-2003 Action Alan: The C~t~~ w~ill consider the follo~~-ing act~ons as e#~orts to preser~.~e the at-nsk hausmg stack :Ylonitor Unrts at Rcsk Regularly momtor the status of at-risk pra~ec#s The Gitv ~vill inform the tenants of the status of at-nsk pro~ects cn advance of the patential conversian date Terrant Educataon The City will ~vork ~~~~th tenants li~~ing in unrts at-risk of convernng to pro~~ide lnfarmation regardrng potential tenant purchase of units The Crty wiil act as a liaison betvveen tenants and non-profits potentialty invol~~ed in constructing or acquir~ng reptacement housing Responsi6le Division: Housang Division GOAL 4.0: PRO:VIOTE THE REHABILITA'IION A\iD CONTINUED ~VIAINTENAtiCE OF EXISTIl1f G HQUSING POLICY 4.1: Encourage and promote the use of private and public funding to pro~-ide rehab~litation, home irnpro~-ement, and maintenance Ioans and grants «-~th particular attention ta multi-famil~~ rental hausin~ C~h~ of Santa lvtonica Housine Element V-?~ Housing Ob~ect~~•es. Goals. Pol~c~es, and Programs ~~ ~ ". _ ` f y POLIC~' 4.Z: Ensure that rehabilrtatzon of eYistin~ units does not result rn permanent d~splacement of e~ist~ng residents ~ POLICI' ~.3: Ensure that rehabilitation of e~istin~ housin~ addresses the health and safet~~ needs of the residents «-hiie respecting the character ofthe structure POLICY ~.=~: EnSure that propert}- o«.ners are made a«~are of Ctt~~ programs to promote capytal ~mpro~~ements to rental housin~ IMPLEI~~EI~TATION PROGRA~ZS: The follo~ving programs are designed pnmarily to promo~e the rehabilitation and cont~nued maintenance of exist~ng housing unrts, but the~- ~~~ill also affect the continued lic-ab~lrty~ of the neighborhoods in the Cit~- Program 4.a: Assess Es~ablishing a Vlulti-Famil~ l~eighborhood Impro~°ement Program Program Background: Certain multi-farn~~i~ residential biuldings ~n the C~tt- can be considered substandard due to 1} high crrme, 2) deferred maintenance, 3} e~-idence of o~•ercro~~~ding Ag~ressi~~e code enforcerr~ent and rehabihtation efforts are necessar~- to zmprove the quality- of these buildings and preserve them as affordable housing 1995-2003 Action Plan: • Eval~ate establ~sh~ng a mult~-famtl;= neighborhood improvement program to upgrade substandard hausin~ The program ma}~ include - de~~eloping ar~ inventory of substandard buildings, - performing code ~nspection b~~ Gitr• inspectors, - ~ssuing citations to property o«~ners far Hea~th and Safety code ~~iolat~ans, - pro~~iding a~sistance in ~dent~fi~~mg patential financzal sources/ mechanisms for rehabilitation for property oEy°ners w711ing to deed-restnct un~ts for affordab~e housmg, and - ~rovitiing re~bilitation assi~~~ in e~~h~t~e far cc~~tra~t~~+ res~ricting units for low incame hvu~eh~lt~.s. Responsible Division: Hausing Divfsion, Rent Control Agencyr. Buildmg and Safet~•~ Division Program 4.b: :Viaintain a Low Income Residential Repair Program Program Background: S~nce 198~. the Gitv has ut~lized appro~imatelti~ $;04,000 per ~~ear ~n federal Communit~~ De~~elopment Block Grant (GDBG) Program funds to subsidize minor rehabilitat~on «°ork for la«~-income homeo~ners and tenants. predaminantly in the Pico Gty of Santa ~•Ionica Housmg Ob~ecn~•es. Hausm~ Element 4'-~b Goals, Pol~cies. and Programs ' ~ " % ~, 1\e~ghborhood I'~trtng 1996, the Cit~• commissionzd an evaluatian of this program to assess «-hether it ~~~as meetin~ thz changing needs o#'the conlmumt~- Based upon this evaluat~on_ the Cit~- «ill be niodifvine the ~ro~ram to prior~tzze specific identified needs 1998-1003 Actiofr Plan: Implement a moditied residential repa~r pro~ram for la~~~ income households l~~hich establishes pnorrties for needs identified in the program e~ aluation Explare and evaluate retrofits related to energ,y efficienc~~ far lo«~ and ~er~° lo«~ income hous~ng uni~s to reduce li~~mg cosfs Responsible Divisio-z: Housing Dn-ision. Rent Control Agenc~~, Santa ~lonica Hous~n4 Autharrtt~ Program 4.c: N~aintain a Housing Cade Enforcement Program Program Background: The Bmlding and Safetr D~~~~sion responds to complaints of ~-iolations of City building codes and pro~~ides inspect~ons and notjces #o property owners to bring the~r units into compliance I998-20Q3 Acti~n Plan: Continue to impletnent the Cit`~'s hous~ng code enforcecnent program The Building and Safet~~ Dir~~~sion ~~~ill continue to coordinate u~ith the Housmg Drvision to pra~-ide information on availab~e rehabilitat~on assistance to correct code defic~encies Responsible Division: Building and Safet}~ Divis~on. R~nt Confral Agency_ Program 4.d: Maintain an Earthquake Retrofitting Program Prograrn Background: In response to the buildulg damage incurred from the 199~ ti~ot~thrtdge earthquake, the City adopted a camprehensi~~e set of seismtc upgrade regulattons Ord~nance #1748, adopted m 1944, requires retrofittmg of a variety of po~entially hazardaus structures ~vithin 1-4 years, depending on the building's occupant load In addrtion, ~he Rent Control Boazd passed regulation 4113B, Mitigation of Potent~ally Hazardous Structures This enudes o+~ners to a rent mcrease for one-half [ 1/2} of the amort~zed port~on af c~ual~f}~~t~g expend~t~ires for soft-story and se~sm~c retrofitt~ng 1998-2003 Action Plan: • Continue to require earthquake retrofitt~ng ~n compliance ~-rth seismjc ~pgrade regulations C~h~ of Santa Nlonica Hous~ng Ob~ecti~~es. Housmg Element V-2~ Goals, Policies, and Programs .~ ~ ~ l~ Responsi6leDivision: Bu~ld~~g and Safet~- Di~~~sion, Resource ~~1ana~ement Dati-ision Pragram 4.e: Assess Establishing a Lead-Based Paint and ~sbestas Hazards Reduction Program Program Buckgraund: O~~er 90 percent of the hous~na units in Santa 1~~lonica ~~-ere built before 1978, ~~~hen the use of lead-based paint i~~as still permitted Health hazards are greatest among those umts «-ith potentxal lead-based paint that are occupied b~~ lo«~ and moderate income households ~~°ith chiidren age si~ and under Effecti~-e October 28, 199~, all residentzal buildings constructed beiore 1978 became sub~ect to ne~ti~ disclasure and record-keeping rules uncier the Federal Residentlal Lead-Based Paint Hazard Reduct~on ~ct The ne« rules require all leases and purchase agreements for pre-197$ resident~al buildings to conta~n a new, statutorily~ prescrabed d~sclasure form A special pamphlet explaimng the hazards of lead paknt published ~}- the EnE~ironmental Protect~on .agenc~ (EPA} and HUD must be delivered to the tenant or purchaser in e~~en~ such transactzon Similarlv, new~ federal regulatrons, effecti~re Octo~er 1, 199~, presutr[es that all residential buildm~s huilt before 198I c~ntam asbestos until proven otherti4ise Building o~3-ners or managers must not~fy all occupants of the presence or presumed presence af asbestas 1998-2003 Actian Plan: Assess the feasibilFty of establishmg an educanonal program and patential other assistanee to address the abatement and removal of lead-based paint cit~-~~~de Ecl~a~ ct~ns~xuctiQn ~~dus~ry ~d #rain ~nforc~ment persanz~~l to ei~ure safe ~r~truc~c~~ ~ites. Respo~esible Division: Housing D~visian {lead}, Building and Safety Dit~ision, Envxronmental and Public Works Management, Rent ~untxt~l Ag~ncy. GOAL 5.0: PROVIDE HOUSING ASSISTANCE A~'~TD SUPPORTIVE SERVICES TO VERY LOW, LOW, AND MODERATE INCOME HOUSEHOLDS AND HOUSEHOLDS WITH SPECTAL NEEDS POLICY 5.1: Support rentai assistance programs far very lo~v and low income househoIds, support mortgage assistance programs for lo~~ and maderate income households. POLICY 5.2: Pro~~ide informat2on and ass~stance to i-en~ lov4• and 101~~ ~ncome households and hausehalds ~i-ith special needs to help them locate apprognate housing POLICY 5.3: Encourage a regional fair share approach to provid~ng housing opportunittes and assistance to homeless, l~er}~ la~;- and lo«~ incame househoId ar~d households ~~-rth special needs. Cin~ of Santa ~~lonica Housina Element ~'-? 8 Housm~ Ob~ectives_ Goals Pol~c~es. and Proarams ~;yy t ~ . ~ PQLICY 5.~: Offer housing assistance to homeless indi~•iduals «~ith a cont~nuum of care madel to address all issues related to homelessness (r e emer~enc~~, trans~t~onal and permanent hausinQ linked t~-~th case mana~ement. emplo~~ment. h~alth and mental health, substance abuse. etc } P~LICY ~.5: Target funds to ensure a broad arra~- of supporti<<e ser~ices to ~~er~- lo~~ and lo« income persons to ensure therr continuec~ t~aantenance of hot~sing once obta~ned Ih'iPLE~~E~ITATION PROGRA~IS: The follo~~-~ng programs are primarily geared to assisting loiy and rn~derate ~ncome households to ~ontanue ro 11r.-e in the C~t~~ ot Santa l~lonica, although the~~ z~~ill also sen-e to accomplzsh others of the City's I~ous~n~ goals Progra~n ~.a: Maintain a Section 8 Rental Assistance and Housing Voucher Program Program Background: The Santa Vlomca Housing Authorit~~ (S~IH~} administers t«°o rental subsidy pra~rams the Section S E~isnng Housing Cert~ficate Program and the Section 8 Housing ~'oucher Program VL~'~thin these 5ect~on 8 Pragrams, the S~iHA re~eives funds for specrfc groups Shelter Plus Care pro~~des rental assistance for perfnanent housing and case management to homeless indivzduals with disabilztzes and to their famtlies Thrs assistance is aimed at the iradit~onall~r hard-to-house homeless who are substance abusers, Iiving ~~rth AIDS, or ha~~e se~rere mental d~sabilities Famrly ~.'nificatron pro;~ic~es iiousmg to families «~h~ch the Public Chiid Welfare Agency has determined that the Iack of adequate housing is a pnmary factor m either. 1) the imnninent piacement of the household's ch~ld/chiZdren in out-of-hame care, ar 2) in the delay of discharging to the famtly a chzld/children from out-of-home care Famrly Se1f=Suf~"icaency coordinates the use of housing assistance «~th other funds to enable househalds to achieve economic independence and self- suffici~ncy Rental property awners have an€ncentive to cooperate ~vith the SMHA to maintain and upgrade uiuts occupied by Section S tenants as stipulated by HUD SMHA has consistentl~~ mauntained a 95 percent or greater lease-up rate, and t~~pically has a Sect~on 8 waiting list of o~er two years far most household t}jpes I998-2003 AetYOn Plan: Continue to operate the Section 8 programs and pursue addrtional funds ta raise the number af households «-~o recei~~e assistance I~esponsahle Divisio~r; Santa ti~ianica Housing Authont~~ Cit~~ of Santa Monica Housin~ Element V-29 Hous~ng Ob~ect~ves, Goals, Pol~c~es, and Programs ~.= - 5~ Program S.b: l~iaintain a Cornmunit~~ Development Grant Pro~ram Program Background: The Cit~° of Santa I~~lonica provides funding support ot approx~rnatel~~ $6 miIlion annuall~- to appro~imatei~' 30 non-proft human sen~ice and houszng development arganizat~ons supporting o~~er 55 different programs through the Commur~~t~- DeE~elopme.nt Grarit Pra~ram These programs ser~-e, in part. to assist homeless, ~~er~~ lo~ti, and lo~~~ income households_ and special need populations ~nto housmg and to ensure that hous~n~ is maintamed once it is secur~d Funding is provided annuall~~. contingent upon the continuation of adequate funds and Cit~~ Council appro~~al Funds are pro~•ided through a broad arra~- of fund~ng sources includm~ but not limi~ed to the C~t~~~s General Fund, HOl-iE. Comrnun~h~ Deti~elopment Block Grant Fund. and Proposition A Local Return Transyt Funds ~ 1998-2003 Action Plan: • Continue to implement a coordinated case managetneni ~rogram lxnking homeless md~~~iduals.~~ith housing, empla~~ment, and other suppart sen-ices ta break the c`~cle of homelessness • Continue funding support to an emergency ~ameless sheiter, a transitionai hous~ng progratn targeting homeless men and women, and a transrtional housing program targetkng homeless mentall}'-i~l w~omen • Gant~nue funding support for employ~ment assistance programs ta train and place homeless, ~~ery-lo~ti~, and low~-income indi~-iduals in temporanr and permanent enn~ployment • Continue funding support for childcare information, assistance, and subsidies to ensure the provision of qualin° childcare to Io~v-income and ~~~orking families • Contin~te fund~n~ support for a broad arra}' of in-home and mdependent li~~ing assistance programs includmg but not limited to money management, para-transit, da~ care, and case mana~ement targeting seniors and persons r~~rth disabilities • Continue fun~mg support for a home access program to assist persons ~~~rth disabilities tivho w~sh ta remain fn their current hames but require accessibility modifications (i e grab bars, ~~-heelchair ramps, accessible hardware, etc ) • Continue funding a Public Works Assessment Assistance (PWAA) program subsidizing ~~ery-lo~~; and low-tncome households ta complete required streetlight and sidewalk repaFrs to the~r propert~~ • Continue funding support for legai ser~-ice representa#ton and assis#ance to address tenant-landlord matters. domesttc vtolence. and other consumer issues Responsi6le Drvtston: Human Sen~ices Dz~~~s~on Cin- of 5anta'vlon~ca Hous~ns Element V-~0 Housmg Ob3ectn•zs. Goals. Polic~es, and Programs L~ ~ p n ` ~~ v Program S.c: NZaintain a Horreeburers assistance Program Program Backgrourid: In order ta assist the ]oi~- a~id moderate ~ncoxne tenants to purchase the~r unrts. the Cit~ establ~shed a Shared .~ppreciation Loan Program per authoritS~ aranted bv Proposition K, usmg TORC~ funds Lo«~ and moderate mcome households ~~ho qualif~ can obtain Cit~~ fundin~ to purchase their rental units as these umts are can~-erted to cOnC~OminiumS Loan amaunts depend an household income as«~ell as the size and price ot the unrt L?pon sale or transfer, the o~~ner repay5 the loan and «~ill share an~- increase in the v°alue of the propert~~ i~~th the Cit~~ As of June 1996, the Cit~~ had collected appro~imatelt- S3 8 million for the TORCA Shared :~ppreciat~on Loan Fragram The Los Angeles Count~- Cammumt~~ Development Diti-ision (CDC) administers a Niartgage Credit Certi~cate {I~~CC) prograr~ to assist loti~~ and moderate ~ncame (up to 115 percent af median income) first-time bu~-ers to abtain ~omeo~~~ersh~p An 'VICC is a certificate av~~arding the holder a federal income tax credit A qualified a~plicant may take a credit aga~nst federal income taxes of up to $$ 2~ percent af the annciai mterest paid on the ~~ ~~ ;;,,a.~ v<< ~;. mortgage The Cit~ ma`~ be ab~e to participate ~i'~th the County in this program I998-2003 Action Plan: Cont~nue to aperate the TORCA Shared Appreciation Loar~ Frogram Assess the feasibi~zt}- of using Niartgage Credit Certificates {MCC} for first-t~me homebuyers assistance Assess the feasibiiity ~f a si~ent sec~nd ~rogram for f~rst ti~ne low i~e~~ne ho~ne buyers, in conjunction with MCG's Responsi6le Division: Housing Di~~asion Program S.d: Pro~ide Tenant Relocation Assistance Program Background: V4~en a unrt is withdra«n from the hous~ng stock, or the landlard recovers possession of a unit and tenant relocation assistance is appropnate, the Santa Man~ca Municipal Code (Chapter 4 36) requires that the landlord pay a relocation fee for each utut based upon the size of the unit An additianal fee is required ~f one or more af the tenants is a senior (52 or o~-er), dtsabled, or a mmor In lieu of pro~~iding financial relocation ass~stance, the landiord may ~nstead provide actual physical relocation if the nev4 unit ~s comparable to the original unit I998-2003 Action Plan: Cont~nue to zmplement Cin- procedures pertain~ng to Tenant I~elocatton Assistance • Period~cally re~~eu= existing Ciry polic~es and ordinances and recornunend modifieations if deemed necessarv Crt~• of Santa hton~ca Housin~ Ob~ect~ves. Housing Element ~'-~ I Goals. Policies_ and Programs ~~ ~ ~~ Respansi6le Division: Crt~~ ~ttorne~~'s Office Program S.e: :~ssess Establishing a TempararF~ Relocation Program Progrartt Background: This pro~rarn is des~gned to proti•ide housing for persons temporaril~- displaced as a resutt such programs as the ~iulti-Familv \eighborhood Impro~~ement Program (Program 4 b), and Earthquake Retrofitting {Program 4 d) It «~ouid invol~~e the purchase and reno~~ation o~ a site to pro~~ide a temporary~ home ta displaced tenants 1998-20D3 Action Plan: Assess t~e feasibilitl• of establishing a Temporarv Relocat~on Program, pursuant ta «-hich, the Citti~ u~ou~d estimate the potent~a] need far temparar~ housmg and ident~f~- potential sttzs for such housing. «h~ch ma~- be Iocated ~n or nearb~- the Gitv, lease and~'or acquire such sites. artd pro~~ide for appropr~ate management at ~he s~te, such as through a contract v~-rth a non-profit development corporation, ta manage the site for use by temporaril}~ dssplaced tenants Responsi6fe Divisian: Housing Div~sian. ~~o~iram S.f Deve[dp ~ Stra#e~y to Address Threats ~o #he HUD Scrtion 8 Ren~al Subsidg I~t~`#m PrQ~ram- ~ac~cground: As di~uss~i in Sectior~ ~I of the Draft Haus~g ~I~emen~, tv~o siguifzcant cha.nges- the G~sta-Hawkin~ v~ear~cy dec~ntrol legislation and pending ~hac~ges t~ ~U~ t~gulatioris and fu~tding~~nay dramat~~caaiy affect both prcigra~ funt~ir~~ and incenii~~~ ~vr lazxdiord~ to participa~ in the program. ~99~ 2Q~3 A~~ ~lan: ASSess t~ financial f~as~bility c~f establishir~ arent subsidy pragram fQr Section S t~~nts, ~vhase landlords have canceled #~eir HUI~ contrac~.~ w~ith fihe ~QUSin~ Autliority. The suhsidy wou~d pay for a pcrcentage c~f the Maacimt~m AkIawable Rent ~MAR~ if the tenants cltc~se tv rernain in their units a.rid pa}~ #he MAR. `~e ana~}~sis would include #he feasibility of creating a pubfi~Ipr~vate partnership tt~ fi.~nd th~ program. • Assess the feasibilzty~ of creating a hous~ng rehabilitat~on Ioan pragram that ~~auld provide rehab~litatton grants or loans to lardl~rds in retuFn for unzts be~ng deed restncted to tenants at no more than 60% of inedian incorr~e, adjusted 6y fa~~ly s~ze City of Santa h4on~ca Housm~ Ob~ecciti~zs. Hausmg E9ement ~'-3? Goals. Aol~c~es. and Proerams !~~ , ~~ Applti~ to HC,TD for a Sar~ta A~Ioruca based Fa~r I1~larket Rent (F~1R) standard at the earl~est poss2hle date ~n arder to sta}~ compet2t~~~e in the ~~acanc~~ clecontro~ renta) rnar~e#place Tal:e full advantage of th~ HL?D re~ulations ~i~hich currently~ allo«• the gross c~ntract rent to exceed the Fa~r 1~larket Rent (FVIR) standard b~ Up #0 20% for 3~% of the eertificate caseload The option should onl<< be used to secure and retain the highest qual~t~- units and to tncrease program parEicipation in under served areas of Santa 'vlonica. R~~~7DitS~IIIQ DIVISIOII: Housing Di~~~sian GOAL 6A: ELI~ZINATE DISCRIl•iINATIQ~ IN THE RENT~LOR SALE ~F HOtiSING Ql~ T`HE BASIS OF RACE, RELIGION, NATIOI~AL ORIGIN, SEX, SEXi,T~i. PREFERENCE, AGE, DISABILITY, FAMILY STATti S, AIDS, OR QTHER SUCH CHARACTERISTICS. POLICY 6.1: Continue to enforce fair housing la~~~s prohibiting arbitrar~~ discrimination in the building, financing, selling. or rentzng of housing. on the basis of race, religion. national ongin, sex. sexual preference, age, disabilrty, famil~~ status, AIDS, or other such characterist~cs nr~r Tr-,v c~. r.-------- ~L~ a......_L....~_. ..r ~.,_____~ c_.. t_--- __a .,._,.a,,..,...- - .. Lr__,.,.i..~~a„ a Va~iv~ V•~• i+11t.V1A14~~. ~iiV µlJ4~tVU~ivii vi 11~U.]ll[.~. LVi 1VVT µy/,µ 1i1VU~.l(iLV 111VVlllV 11VliJ~.11V1UJ ~L~-"~L___a a1_,_ f'.a_. LLLVLL~1tVlAL LAIV ~14~ IMPLEMENTATION PRQGRAA'IS: The fol~o«in~ programs are intended to implement the c~ty~'s goal of eliminat~ng discrimination in access to hous~ng 4ther programs listed under other goals v,.~ill also accomplish th~s goal Program 6.a: Maintain Fair Housing Programs Pragr~m Baekgrou~rd: The C~ty Attorney's Off~ice thraugh its Division af Consumer Affaxrs, along with other government agencies, enforces the fa~r housing lav-,~s The Crty has an in-house Fair Housing Umt m the City Attorney's Office with a fair housing specialist and a Spanish-speakmg communrty lia~son who ~~-ork uzth the attorney The Fa~r Housing Umt in~estigates d~scrimina~ion complamts It also offers education ~nfarmation and programs to the COI1lIllliri124" OI1 their rights and responsibilities under the fair housing la~~~s Additionally, the Fair Housing L•~rut takes complaints invol«ng lockouts. utility shut-offs and tenant harassment. The C~t~~'s Ordi~ance #1812 pro~~~des added evrction protectaon to tenants wzth domestic partners This ardinance establishes a procedure for filing an"Affidati~it of Domestic ~'artnership" «zth the Cit~~ Clerk's Office, and prohibits e~-~ction of an~~ tenant on the basis that the rental agreement has been breached as a result of an increase in the numl~er of occupants due to a change ~n the dornestic partnership arrangement of the occupant City of Santa Nlonica Housing Objectrves, Housm6 Element ~'-~_ Goals, Poli~ies, and ~rograms h~ r , ~ ^ 'v The C~t~- also has a Fa~r HausinE for Children ordinance_ «~h~ch prohib~ts drscriminatic~n against fam~lies ti~.•rth childr~n in the sa~e ar rental of housin~ 1998-1003 Action Plun: Educate landlords abaut discriminatior. against ehildren and encourage them to reni to more families Educate the real estate communit~~ an the necessity of er~suring that their pract~ces rneet the ob~ect~~-es of the fair housing la«~s. Responsible Division; Cit~~ Attorne~~'s Office Program 6.b: Pro~~ide Tenant/Landlord ~iediation and Legal Ser~~ices Program Background: The C~t~~ pro~~ides fundmg to nonpzofit organizations to provide dispute resolutiQn sen•~ices. arxd legal adE~tce and representatzon on tenan~,~iandlord matters. as 1~•el1 as other civil and consurner issues 1998-2~03 Action Plan; Continue to support tenantilandlord media~ion and Iegal services asststance Responsi6le Division: Human Services Division Prog~m 6:c. Devel€~p P~~rlic Educ~#ior~ Prvgram ~r~ ~t~verse i1'Ivrtg~ges PlrngrarnBackground: A reve~rse ~nortgage is a d~ferred ~~ymen# loan t~r a series af such l~~ for whicli a h4me is pledge€1 as security. Qu~ification for t~e ic~an is ~aseii pri~~ar~l}. ~n pr~perty value, ~ather than. incn~e, allowing t~e eIderly homeovvner c~n a fiz~ecl:in~vrne tci r~eiv~°s Ic~ f~r whiclt he c~r sh~ ~vouid otherwise nnt c~ualify. Th~ re~~ers~:~no~age is ~~nearally ~ken ~u~ by a senior v4~ZO i~ in im~nediate n~i of eash, ci~n f~r azi em~rgenc;~ h~l~ ca~ prnb~~. Revers~mo~g~g~s.~re availsbl~ in. ~ gri~~ 1et~din~ ~rk~ ~ile re~vers~ mnrt~a~c5 ~iY~r m.ui,~ bcn~~i4~ lu tici~ior hoinu~~~~tcrs ~n need c>i'c.ash, v~-i~hout pro~e~ in#'~rnaat~nn tliey~ c~in ~Isc~ hc ahused and may not alv~a;•s scr« th~;~r he~i linanc~~l int~ic~t 1 Q~$-,2#103 Ar.,t~iin f'lan: Prepare educationai mat~ials t~ut~i~ung the:~u~b~ity, benefifi~, and ~iIities of rever~ ~nrtgages, and t~isseminate tl~ese maberi~~ ~ s~ors thrc~~i ~ocat servi~e c~rgani~.ations u~hich serve ~eniors Respvnsible ~ivisian: Housing Division; City Attomey's flffice Prvgram 6.d. Develop a Housing Repair Laan Prograra for Low-Incom~ Seniar Homeawners C~t} of 5anta tiianica Honsm~ Ob~ectives, Housin~ Element V-34 Goals, Pol~cies, and Pro~rams k~ : ~. ~ ~ ~ Program Backgj ~und. l~anti~ lo~y-income sen~or hameo~F~ners require repairs to their homes but do not ha~.-e the cash aeaiiable to ~nake the repairs. nor can they afford ta take out a loan to finance the repatrs In cases ~~~here the hameo«ner has equrty, and fihe repairs requ~red are extensi~~e, a deferred hous~ng repair lvan may fi11 a very x~npartant need not met b~~ the pn~ ate market Also, in ~'~scal Year 1996i97, the City began a n~w Pxlot Residential Repair Program for qualifying low ineorne households Vi~'tule ih~s neu program dedieates a in~.jonty of availa~le Community Development Block Grant funds faz lead-based paint testing and treat~nent and home security imprvvements, a portion of the pragram fun.ds are available fQr smaller repairs Some of the repair fi;nds could be earmarked far grants to seniar households, mcluduig senior homeow-ners I998-2003 Aetia~ Plare: E~aluate the feas~bility and apprc~priateness of a Housing Repair Loan Program for L~v~r Income ~eniar Homecn~•ners. Ear~xarka portivr~ afthe funds set aside for smail repa~ ur~der the Pilot Residenhat R~pair Prc~gram for grants #a iow incQme ~eniar ho~eh~lds, including homeav~~ners Resparrsi~il~ Divisinn: Hc~using D~vision GOAL 7.0: PRQMOTE QUALITY HOUSING AND NEIGHBORHOQDS POLICY 7.1: Promote safe and secure housmg and neighborhoods. and encourage hous~ng design which serves to det~r cnme POLICY 7.2: Promote use of sustamable canstructi~n techniques and environmentally sensiti~~e des~gn for all housmg P4LICY 7.3: Ensure that architectural des~gn of new housing develapment is compatible ~~ith the surrounding neighborhood POLICY 7.4: Encourage the preservatfon of archrtectucally and historicall}T sigruficant buildfngs and neighborhoods POLICY 7.5: Piomote access to transrt and neighborhoud servzces in ~~~Y: residential de~~elopment nnr rr~r •f t_ r~..~___.. t......__.,_ ,._.a _ _i--•W-~~ r..a.__-•--- - .t_ r-s-- . .~.~.~~ : ..«. ....~~.~.~, ~,.,...~...~ ~..~u ti.~.~~f«,)«,..~,< i,t,1,.,~ ~.~.~..~..~ ~,~ u.., ~, , IMPLEIVIENTATION PROGR~iiI~IS: The follo«~~ng pro~rams are designed to protect and enhance qualit~~ haus~ng and neighborhoods, and to ensure the abilitti~ af the Cit~- to meet rts affordable housing ~oals is not compromzsed C~ri' af 5anta h4on~~a Hous~ng Ob~ectt~~es, Hous~ng Elemznt V-35 Gaals. Poltcies, and Programs ~; ~ ~ ~ ~ v Program 7.a: Pro~'ide a Residenhal ~eighborhoad Safeh• Program Program Backgrourtd: The C~t~~ offers a range of residential safety programs. includ~n~ the follor~~ ing 4 • Res~dent~al Secunt~- Sun~ey Program - pra~-~des assessments ofhome securin- and offers sug~estions on ho«- to make impra~~ements (Pol~ce Department) • Operation Identification - enc~urages residents to enara~~e ~~al~able items «~ith an ID number to assist in the reco~°ert- of sto~en propert~~ (Yol~ce Department} • Neighborhood ~~atch Groups - pro~~ides annual grants to the Neighborhood 5upport Center (~ISC} tn ~rn~~~de technical assistance in developin~ ?Veighborhaod ~'G'atch grQUps (Human Ser~~ices Div~sion) • Commurury Forums - cond~cts nexghbarhood and commumtF~ forums on public safet}- issues and linkages v~~ith the Santa ~lonica Police Department {Police Department} • Cnme pre~~entFan and community relations programs as ~ti-e11 as educationai materials for res~dents (Police Departnient) 1998-2003 Actron Plan: Continue to offer a range of neighbarhood safet~~ programs t~irough the Police Department Through a coordinated effort bet~~reen the Foltce Department and Housing D~visian, offer free home securiry surveys and provide subsrdies to la«~ mcome households to rmprave household securit~ against cnme {see Program 4 b) Asse~ the fe,asib'iIi~ ~f c~ati~~ apmgr~n i~ ~eili~ the ~taI}ati~in of.~eas~b~r~ts. peeph~ies u~ ~ dt~i~;:.us~indi~w~ lae~:~, ~nd ~eric~r mvri~r~ dete~g~, Responsible Division: Police Department (lead), Human Sen-ices Di~~ision, Housing Dnl~s~on, Rent Control Agen~cy Program 7.b: Pro~ide Historic Preservation Programs Progrum Background: The Cit~~'s adopted Landmarks and Historic Districts Ordinance ~stablished the Landmarks Commission and delegated m the Commission the authorit~~ to desi~nate landmarks and make recommendations to the Crt~~ Gouncil for histor~c d~stncts Since adoption of the Ordinance. the City~ has conducted an histonc iesources in~-entory~ encompassing ma~or port~ons of the Cit~•_ desrgnated 31 landmarks. and estabiished one historic district - Third Street i~ieighborhood Historic Distr~ct Ctn~ of 5anta V'[onica Hous~ne Objecti~~es, Housing Element ~'-36 Goals, Polic~es, and Programs l-~ o ., ~~ v L?nder the Landmarks and Historic Districts Ordinance. ~ncenti~ es are as-ailable ta encoura~e o~;ners of designated properties to maintam and preser~~e the~r structures These incent~~~es include elimination of buildinR permit fee~, administratn-e plannin4~ fees, and Certiticate of :~gprapr~ateness fees. and parkin~ incenri~~es 1998-10Q3 Artior~ Plnn: • Continue to implement the Landmark and Histaric Distrtcts Ordinance • In~tiate and implement the propert~~ ta~c reduction program (:44ills .~ct cantracts) • Conduci cornrnumtv ~~orkshops and de~-elop brochures for distnbution to o~~-ners of eligfble properties to promote histonc preser~'ation • Eti-a~uate the Historic Resources Survey as the basis far develflpme~t of a c~mprehensive preservation plan for tl~e Crty. Respo-~sibde Divisian: Crt~- P~anrung Divisron Program 7.c: Maintain Euergf and Water Conser~-ation Programs Program Background: The Cit}- administers a Re~rofit Upon Sale program which requires existing properties to retrofit all toilets and showerheads prior to transfer of title Tlae Citz~ also requires all ne~~ construct~on to compl4- ~y'ith Title 24 of the Umform Building Co~e regarding ~~; ater and energy conservation 1998-2003 Actian Plan: Continue to monrtor energy and ~~~ater usage in the cit~~ and ~nvestigate other appropnate programs to conserve these scarce natural resources ResponsiLte Division: Environmental Programs Divtsion Pragram 7.d: Facilitate Sustainable Hausing De~eEopment Program Background: In 1994. the G~t~- Council adapted the Santa Momca Sustainable City Program which provides a comprehensi~~e long-term en~~ironmental strate~y for the commutut~~ The program contains spectfic pr~nciples, goals. and targets for measunn~ progress ~n achievin~ s~sta2nab~lity The Crt~.~ zs currentl~- de~-elopzng Susta~nable Bu~ldzng Development Guidelines as an outgrou~th of the program These Guidelines w-~ll include des~gn ad~~ice for multiple farnii~~ resident~al build~~gs as ti~•zll as comm~rcial bu~ldings and ~r~il1 be designed to ac~dress methods to achieve the building-related targets of Susta~nable Cit~~ Program The Guidelines are ta be completed by 1997 I998-2003 Action Plan: C~ty of Santa h'Ion2ca Housmg Ob~ectives. Hausing Element V-3'• Goals. Policies, and Programs a: . , ; ~ ~ • Continue to zducate non-profit and for-profit housing de~~e~aper~ ~n ~~-a~~s to create en~-~ronmentall~~ sustainable housing de~~elopments in Santa Manica • Support and encauraae the efforts of housing de~-elopers. des~gners_ and contractors m their use af sustainable buildin~ practices by- e~plortn~ ~-anous incent;~~e options • Contmue #o assess future housina de~°elopments~ contnbution to the goals and tar~zts of the Susta~nable Crt~- Pro~ra~n • ~ssess the €easibilit~~ of integrating the administration of the Sustainable Build~n~ De~~elopment Guidelines ~nto the e~asung de~~elopment appra~~al process N • Continue to rncoiporate sustainable des~gn and canstruetion s~rategies with~n Develop~nent Agreements. • Explore and e~aluate energy effc~ency ~n desi~n of restdential developxr~ent Respo~rsible Divrsion: C~t~~ Planrung Di~~~sfon (lead): En~.-ironmenta~ and Pu~lic ~~~orks Management Program 7.e: Maintain an Office Der•elopment Mitigation Program Program Background: The Cit~'s Office Development Mitigatlon Program requ~res de~-etopers of ne~;~ commerc~al office space ir~ excess of 15,00~ square feet or additions to eYisting de~~elopments in excess of 10,000 square feet ta either (1) provide low income housing and open park space, or (2) par~• the City an in-lieu fee ta be used for such efforts Fees generated by this program are allocated as follo~;-s ~l5% ~s deposited ~n the Housing M~tigatian Fund and used to de~.~elop la~~~ and moderate income housing, 45% is deposited tnto the Parks Mitigation Fund and used for the acquisrtion, development, and/or signi~icant improvement of parks, and 10% Fs deposrted ~nto an a~eannt which may~ be transferred into the Houszng Mitigation Fund ar the Parks ~1~tigation Fund 1998-2003 Actinn Plan: Cont~nue implementation of the Off~ce :vlrtigation Frogram Responsi6le Division: City Planning Divzsion (lead), Housing Divisian; Commurut<< and Cultural Services Dn~ ision Progtam 7.f Mvniter the Ra#e of Rcdevelopment A~tivify in Multi-family Residential Districts. Prograrr~ Barkground: The Casta-Ha~s-kins Rental Hous~ng Aet and proposed City grc~~rams ta facihtate the production of housing may result in increased rec.~~elapment ac€~v~fy wif~ii~ th~ Cify's m~lii-f~niiy residential neighb~rhaods A reasanab~e rat~ of redevelopment in rnralti-fam~~~~ City o#'Santa Monica Housmg Ob~ectives Housing Element V-~8 Goals. Polic~es and Proarams i, t ~ ~; ~ U + resident~al neighborhoods could have. a positive impact an the ex~st~ng quality of li#'e and character of the ne~ghborhoods, ho~tie~~er rapid rede~~elopment could ~eopardize #he character of the neighborhoods and have a corresponding negati~ e impact ~n the qualit}~ of life i9981003 Action Plan: Monitor the rate of rede~-elopment actt~~~ry in multifatx~tly residential d~stricts Regort on at least an annua~ basis the nutnber of planning applicatians ~ranted for new hausing construction. If the rate or pattern of rede~-elopment appears to negativeiy affect the qualrtv of iife or character c~f the neighborhooa. cor~siaer enacting ~neas~res which ma~F zrtclude a construction rate program ~es~v~assx.6le Divisirrn: City Plaruun~ Dnrision GOAL 8.0: PROMOTE THE PARTICIPATION OF CITIZE~iS,CQiVIMt~TY GROUPS, AND GOVERIriMENTAL AGENCIES IN HOUSING A:VD CO~IML~NITY DEVELOPMENT ACTIVITIES POLICY 5.1: Ensure maximum citizen ~nvol~ement in hausing and commumty development activities POLICY S.Z: Provide information and assistance in the Ianguage of the person or group needm~ housing assistance, to the greatest extent possible POLICY 8.3: Ensure coznmuiucation and coord~nation betvveen Cit~~ departments and agencies on issues related to housmg and coinmunity de~~elopment POLICY 8.4: Encoura~e im~olvement of all interested parties in the re`~ie~v and farmulation of Cin~ housing polzc~es. including property owners, building industry professionals, affordable hausin~ ad~~ocates, lendmg institutions, and other interested partses IMPLEMENTATION PROGRAMS: The follow-~ng programs are ~ntended to promote the part~cfpation of all segments of the commuruty in decisions related ta hausing and cornmumty~ der~elopment Program 8.a: Maintain a Citizen Notification Program Program Backgraund: T'he Zomng Ord~nance requires that notice of a public hearing be given to propertti• o~;~ers and tenants ~~~tFun S00 feet of the suhject propertti for certatn site- spee~fic lar~d aet~elogments In additaon to direct mat~ notaces. public hearings are a~~ emsed in the local newspaper (The availabiljt4 of fiuther information in Span-~sh is indicated in these newspaper ads } Git~ Gouncil meetings are broadcast ta the publrc b~~ radio and on the City's local cable station Planning Gommission meet;ngs are also aired on the local cable stat~on The Cit~~ operates the Pnblic Electron~c ~letwork (PEN} which makes aE~ai~able to the publrc ~•ia the Internet. ~~'orld ~'~de ~~%eb and other modem networks information about development proposals, upcoming hearings, and City regulations City af Santa Nlonica Hous~ntr Ob~ectt~•es. Housine ~lement V-39 Goals, Pol~cies. and Proarams ~.1 ~ 5 Z Thrau~h fund~n~ support b~~ the Cit~~, the \eighborhood Suppart Center ('_VSC} j~~orks closel~ «itn ne~ghbarhood associations to notifi~ residents of issues pertaining to land de~~elopnlent and changes in housing prograrn poli~~es and regulations through regular d~stribut~on c~f ne~ghborhood ne«~sletters and b~• conductin~ public forums ta d~scuss rele~~ant issues 1998-2003.=~ctron Plan: Continue to public~ze de~elopment and polic~~ proposals to all interested parties through the use of notic~ng. the radio, cable TV, and PE~i Responsibte Divisivn: Cit~- Planning Di~~ision Program 8.b: Conduct Housing Element Re~~iew Program Background: The Housing Element update represents a comprehensi~~e revie«~ of the Cit~-'s housrng strateg}~ and polic~~, and a:efinement and expansion of existmg programs as appropriate In addition, the Cits- undergoes annual re~iew of its General Fund, CDBG. HO~IE, and redevelapment tax increment funded hausing and community~ de~elopment programs 1998-2003 Activn Plan: Imp~ement identified hausing element programs ~yithin the time frames set for[h in Table V-2. Revlew grant-funded programs and redevelopment set-aside programs on an annual basis Respansi6le Division: City Plannmg Division (lead), Housing Division C~t;~ of Santa Nton~ca Housine Element V-~#Q Hausin~ Ob~ectrves. Goals. Pohcies, and Progra~ns ~; .~ ~ C~ ^ ~a ~ - ATTACHMENT F ~~ ~ ` ~ ~ V ~~ ~ V J lJ ST~TE~= ~A~°OR.'~,A-SUSIYE55 -v'~I~SF~~TA' 4N AfJ ; y,^.L;SIk~ A.^,EfJv7 7EPA~TMENT OF HOUSING AND CE}MMUNITY DEVELOPMENT Gii~"~I[7N OF HOUSfNG PaLfCY DEVELOPMENT f8nf~ TFEIFD tiTREET Room ~3n - i~ .~ ~ P O RQ\ 9~2U~3 ,. ~ =.; , ~ar Ita~iF~To c a 9~Z~z zr~s3 `- i916:323-31'6. F~.\ (916?3.''-26a3 Septem~er ? r~9~~ ~~ ` _ l~Zs Suzanne Frick, Director Plartntng ar~d Commuruty Development Gity af Santa Mon~ca 1685 N1ain Street 5anta Vion~ca. Cal~forn~a 90407-~200 =E?E ;,I_5w , ~- _ - ~ ~ ~• __=:.. ,-.~ f'`-~ ~ ~~ ~~ ~ rs •:;o~~~_ i . ~'~ ;~,c.=~', Dear Ms Fr~ck - P.E: Review af the City of Sa~ta ~ionica's Draft Housing Eiement Thank yau for subm~tttng Santa Moruca's draft housing element, rece~ved Jul~~ 22, 1997 far our review We also receiveci, and cons~dered, correspondence from other ~nterested parties regarding our revtew ofthe draft elernent in accordance w-th Sect~on b558S (c} ~-s you kno~~~. we are required to review draft hous~ng elements and report our findmgs to the locality pursuant to Gavernment Code Section 65585(b) V~+e are encouraged by the progress the C~ty l~as made ~n ~dent~fying potential constraints to the pro~~s~on of adequate sites for a variety af household income groups ir~ Santa ?vlonica 11Ve are hapeful that actton w~ll soon be taken ro reduce or mit~gate the constra2n~ng effects of Ordinance 1 fi I 5, ~n part~eular, on smalIer res~dent~al developmenis Howe~er, as dlscussed d~nn~ our August 22, 1997 meetm~ with City staff, an appropraate course of actton has y~et to be ~ final~zed for rrut~gattng identified constraints As a result, further revisjons to provide adequate s~tes, remove governmental cons~raints and address related requirements of State law are still requ~red (Art~cle 10 6 of the Government Code) T'ltese ~ssues are more fully discussed in the Ag~endix to this ]etter We aggreciate the Crty's cooperation during the course our rev~ew and look forward to cont~numg to work co~laborati~ely with the C-ty If you have any queshons concern~ng our comments or would l~ke assistance revistng the element, please contact Gaty Collord, of aur staff at (915} 327-~54 ; In accordance wrth requests pursuant ta the Public Recards Act, we are forward~ng coptes o~thts letter to the ~ersons and organizations listed below S~ncerely, ~ , ~ ~. ~ , >I y _' ~~ r J. ~` mber~' y'~ l~u~r Deputy Directar Enclosures x' - ~! l~ts Suzanne Frtck Pa~e ? cc Chcistopher Hard~ng_ La~i~rence & Hardxn~ Carlvle ti~' Hall, Ha[f & Phillips Lat~• Firm Jonathan Lehrer-Gra~~~.~er, Attornei~ at Lau ~~~estern Center on Law & Po~•ert~ Fair Hous~ng Council of the San ~ernando ~~ alley hiark Johnson, Lega] :~d Foundat2on af Los .~ngeles :~na ;Vlarie V4'hitaker, California State L~nivers~ri' Pomona Dennis Rock~~ay, Lega~ r~d Foundat~on of Long Beach David Booher. Cal~forr~a Hous~ng Counc~l Stephanie Knap~ic, ti~'estside Fair Hous~n~ Council Kar~n Vl~'arnei, Cotton,Beland~'AssociatEs Jos Garreras, 5outhern Cal~fc~rr~a tlssoc~at~on of ~overnments Kathleen ~kkelson, Deputy Attorney General Bob Cervantes, Gavernor's Office of Planning and Research Juan Acosta, Cal~forrua B~a~ld~ng Tndustry Assoc~at~on Marc~a Sallcin, Cahforrua Assoc~ation of Realtors Marc Brawn, Cal~fornia Rurat Legal Assjstance Foundat~on Rob Wiener, Cal~forn~a C~al~tion far R~ral Housing Susan DeSant~s, The Plantung Center Dara Schur, Westem Cer~ter on Law Poverty ~tichael G Colantuono, Attorney at Law ~,~ ~ ~k U ~PPEtiDIX Cit~• of 5anta hTonica The fo~1o~-~n~ char~ges i~•oul~ bring Santa I~lonica~s t~oc~scng element tnto complianc~ «;~itt~ ;~rtzcEe 10 6 of the Government Gode Falloz~~~ng each recommended change or addition, we refer to the applicable provis~on of the Go~~ernment Code V4'here part~cUtar program examples ar data sources are i~sted, these st~ggestions are for your ~nformation onl~~ VGre recognize thac the C~tv may choose other means of camplyzng with the la~.i~ :~. Housing Needs, Resaurces and Canstraints :~rialy.:e the Cr~y 's second z~firt ordrrtaj7ce aru.t expand rhe anafysrs of ret~t contral rema~•u1 permrts as poteniiad and actual governmental constrarnts upor~ the development of housing for all ii:come graups The analy°srs should also dernonstrate local efforts tn remove governmental constratrtts that hrnder fhe localtty from meettng rts share of the regzonal housrng need rn accordance -vrth Secttan 6.558~! (Sectian 6.i~8-~(a/(;f)~ As dtscussed, durmg our August 22, i997 meeting with the City, the element s~ould analyze the City's recently adopted second-unit ordmance, which ~rolub~ts second un~ts m the Rl distnct, as a potent~al constraint W}ule the potent~al for second-unit deveiapment dur~ng the planzung penod as not li3~ely to compnse a sign~f~cant portton of the City's productlon abjective, second t~ntts can provide a viable opt~on for facihtattng affordable housing productzon, gart~cu(arly in sing}e- family residentzal zones The City's decision to exciude secand un~ts from such zones, therefore, should not only be evaluated relat~~e to the provision of ade~uate sites and the accommodat~on of pro~ected hflusmg needs, but also in conssderation of the C-tv's averall strategy to assist affordable hous~ng development (see Section 55583(c)(2)) 2 Based upan our discussion wEth the staff of t~... rent control board, it appears that a Category D removal perm~t does require replacement of t~e rent-controlfed units tn an ex~st~ng pro}ect with ~n,ts at a s~rrular or "ai~ordable" rent level ~n the new or recycled developr~ent Depending upan the nature of a panc~ular recycling scenano (e g, the number or percentage of rent-controlled units in an e~sting pro~ect, the aetual rent paid by these tenants, and the net number of additional uruts to be provided ~r~ t~e r~ew devetopment), ~t a.ppears sorr~e pro~ects eoutd be sub~ect to an "affordable" umt inclusionary burden in excess of 30 percent The element's analys~s of the potent~al effect of Ordrnance 1b15 on the feasibility of developtng residential pro~ects of 2Q units or less clearly demonstrates that it poses a sigrvficant constra~nt to residential development Recycled pra,~ects sub~ect to an inclusionary• burden ~n excess of 30 percent tivill be e~en more adversely effected Therefare, the element should include a discusston ane~ analvsis of this potent~at canstraint upon the recvcl~ng of ren~ ' properties in Santa Nloruca and clearly identif~ actions or measures for mit~gation ~, w. _ t~ ~ 4 B. Pro~rams Idej~t~fy~ adc~cJrrute sltes ~t h~ch -~°t!1 be nacr~e u~ crrlable rhj-ough appropraar~ ~onrr~~T arrcl c~~i~~lopni~flr .staftdards raeeded ro faerlrrate a~td ~ricor~rage t6ze c~evelopmejtr c~f cr i~aj-r~rt of hvlrsrn~g rl.pes for• all rrrcom~ ~r~oups, r~aclrrdrflg nrult~fanrlli~ t-efatal housr~rg, facroj~ - ht~rlt houstrrg mahrlehnrnes, a~rd entergej7c1• slielter~ a~td trartsrtzonal hor~srng Yi~'herc~ tl~~ rrti~ento~y nf srtes do~s raot rderrtrfi~ adeqrrcrte .srtes w aeeommodale the need for crll hor~sehold rncome grorrps prsr~r~arit to Sectzorr 6558~, the pt•agram shall prot~rde far szr~cient sites wrth ~or~~rag that permils otir-ler-occt~pred and rer~tal multrfamrly~ resicleratral t~se by rtght, rncludtrtg dens~ry~ arrd de4~elopment standurds that coisld accommodate and facrlrtate the feasrhrlrt~~ af housrrrg for verl~ low~- and loiv-income households (~ectrori 6~,553(c~(1)) Address artd ~s•here legally posstble, remo ~~e gavernrrrenra! car~srrart~ts to rhe matr~tenance, rmpro~~emerrt, DY C~E,'VBLO~JY11eYll Of ~'!O1{SlY~g fpl' QII dI1COYlI2 £;Y4~1~J5 ~SeClID12 655~3(cl <31J As noted in our re~~ew of t~e City's pre~~ous hous~ng element, the removai ar nutigat~on of potential governmental constraints upan resides~tia~ recycl~ng is cr~tical to the provision af adequate sites in Santa Moruca We are pleased to find that the revised element t~ow mctudes strateg~es for removing or rtutigating some of these potential constra~nts For example, Frogram 1 a proposes to elim~nate CUP requ~rements for condamuuums dur~n~ the 1998199 fisca] year We bel~ev~ this strategy v+nll help reduce the regulatory burden upon awnerslup hous~ng developments ~n Santa Momca We are also encouraged by the element's acknowledgment of the need to develop alternative imp~ernentat~on strategtes to reduce the constrairung effects of Ordtnance 161 ~ on new houszng development ~le we appreciate the need to further evaluate these constramts, and carefully develop alternatl~e ~mpjementation scenanos, the element should clearly commit the City to removing ar rrutigatmg those pro~~sions of the ordinance that have a~ready been determ~ned to be ob~ious constraints Based upon the element's analys~s of Qrdinance I6I5, tf 1, ~,lear that the current urut threshold (pro~ects of twa or more units) is too low, and a 30 percent ~nclusionary burden ~s too gre~t for smaller, unsubs~d}zed housing gro~ects As nated in item A-2, above, the feasibi~~ty analysis of model pro~ects in the R2 ciistr~ct, clearly demonstrates that the ordinance poses a substant~al constraint to current res~dential developments of less than 20 untts -- at a rr~ntmum As a result, the e~ement shou~d c~ear~y commit the C~ty to exempttng grojects of this size from the rec~uirements of the ordinance Some of the preliminary concepts to be cons~dered by the C~ty (e g, rro prrtiate sector requ~rement, voluntary° prrvate sector program wrth srgnrficant rncent~ues} may prov~de an effectlve mechanism for exemptin~ smaller, unsubs~dized pro~ects, but the element does not include a program to specificall~~ exempt such pro}ects ~ndeed, a strate~~ of th~s nature ~s not even included in the i~st of potential changes `to be cans~dered~~ ~n Pro~ram 2 a ; ~ "~ ~- ~. ~ v The element shou[d also include specit~c pro~ram actions des~gned to promate residzntial reck•cl~ng (~nclud~r~~ rl~e remova] of potenr~a! constra~nts} and res~denrial de~~elopment_ or mixet~-uses, m cammerc~al zone~ ~'4'hile Pfo~ram 2 b outlanes the ~ncenti~'es that are a4-a~lable ro(mostl~~ j 100 percent affordabie housing develo~ments in residential and commerc~al zone~. the element does nat include specific pro~rams ~~~hich art~cuiate the Crt}~~s intent, or clearl4~ describe the mcentives a~•ailable, ta encoura~e recvcl~n~ in residential zones or residential de~•elopment ~r commerc~al zones Such programs are necessar}~ slnce the Grt~~'c ~nventon° of adequate sites 1s heati~th~ dependent upon these activ~t~es C. Pro~ectecE Housing Needs Revise arld clarrfy pro~ectroris of the locahry 's exrsting and pro~ectec~ housrng r2eeds fot~ all rrtcome levels (Sectron 6»83(a/(Ij) The draft element (page V-5) estimates the C~ty~ s share of the reg~onal housing need for the 1998-2003 plannin~ penod ta be ~,219 d~~~elling units The footnote to ttus estimate rnd~cates this figure represents the upper end of an allocat~on range cansidered ~y the C~ty However, the element (page II-88), appears to ~r~dicate that 3,219 ~s actually the midpomt of a range of three alternat~ves, from a tugh of 5,747 units to a!ow of 1,918 u~uts Therefore, ref~rence on page V-S should l~e rev~sed accordingly The element also references a lQwer estimate af 2,400 units if t~e "State recogrvzes c~rtain `credits' for past C~ty efforts ta hold down average rent burdens and to prov~de shelter beds for the homeless " Desp~te recent legislative proposals to allow some form of "credit" for accommodatrng (not pro~ecting} ; zg~onal hous~ng r~eed atlocations, no actual crediting system has been adopted or approved The 2,400-un~t est~mate, therefare, ~s not accepta~le The most significant camponent dn^ing the variabilrty of these estimates is the household grow-th component As yov know, the household and employment ~rowth farecasts for ~unsdictians wttl~un the SCAG regton are in the process ofbetng ugdated linder current circumstances, the 3,219-urut est~mate de~eloped by the City is acceptable, but tnay be sub~ect to rev2sion if found to be ~ncansistent v+~th any fut~re housing need allocat~an ~ssued by SCAG or w~th pending household growth forecasts for the SCAG reg~on effect~ve dunng the 1998-2003 planning penod The e~ement's assert~~n (page II-93~ that SCAG's tnethodology for the prev~ous plann~ng penod included a s~gruficant magnitude of error because the pro~ectec~ hous~ng need szgiuficantly exceeded the growth w~uch actually occurred in occupied households ~s invaljd and m~sleadi~g The pro~ected t~aus~ng "`need" pursuant #o Section 65584 is not merely a forecast of hausehold gro~~~th ar housFng constr~ctton demand for the period Rather, housing need is dnven lar~el~~ b~ demo~raphic forces {such as the age and income of the populat~on forming househalds}, while actua! haus~ng construct~on i5 a.ffected by cycl~ca! ecanomic cand~tions. such as the recent recess~on The fact that actua~ mark~t and regulatary cond~t~ons did not accommodate pro~ected housing needs does nat negate the existence of the need ~- ~, ` ~. .. T'he statute's ~ra~•i5ion far ti~e estabj~5hment of housing produetton o€~3ectt~~es ti~at afe less than tota~ ~dent~fe~! ho~s~ng needs (Section 6?~83(b)(2)) al~ovvs for consideration of economicall~-dnv~n demand and resource issues, as the City's ne~~~ construction ob~ectives appear to reflect (page ~--6) ~ ~~~ 411~G ATTACHMENT G ._ . , ., .~~~ SANTA MON ICA RENT CONTRQL BQARD TO: Rent Contral Boarct Comm~ssEOners FRONi: L~gai Staff DATE: Decemk~er 1, t 997 RE: Staff Repart on Sugge~sted Changes to Category D Remavals Regulation 5016 The C~ty has been Fn the process of draft~ng a new housing slemer~t for tha ~ast year. One of the rra~or analysis that was undertaken a~ part ot th~s psocess was to ~dent~fy the actual and po#ent~al co+~stra~~ts that different requir~eme~ts a~d regulations ha~e ~pon housmg pohcy, To th~s end the Housing Staff had a consultant ana~yze whether removal perm~#s, and particularly Category "D" remo~al permits, canstit~ted e~ther an actual or po#ential constrairrt on t~e production of affordable hous~ng in #he city. T~is anatysis was i~ct~ded within the Techrncal Appendix #o the Draft Housing Elemerrt. After the Draft Housing E[ement was compleied, it was submitted ta the Califomia State Department of Housing and Commurnty ~evelopme~# ("HCD`). A par# of tt~e HCD response, after its revtiew of the Draft Housing Element. discvssed a possible inter~retat~on of the Board's Category "~" requirements which could lead to new development pro~ects being required to ~ncl~de upwards af 3Q% af the units as afforda~Ee ta !aw fncome persans. (See Sect~on A, paragraph no. 2 01 Append~x to September 5, 1997 letter from HC~ to C~ty of Santa Man~ca at p. 2, attached #or the cor~ven~ence of the Board ) Charter Sect:on i 8Q3{t) sets #orth the mandate requ~red of the Board where redeveiopment of a~roperty ~s sought. For any Category "D" perm~t granted, Section 1 SQ3(t} {2)(ii) requires as a cor~dition at approval, that the ~nits will not be exempt from the ~rovisio~s of this Afticle pu~suant to Secttion 1801 tc) and that at least ffteen ~15} percer~t of the controlled rental ur~its to be bu~ld on the s~te w~li be at rer~#s affordable by persons of low ~ncome T~e Board's c~rrent regulaUOn go~errnng category D removals, 5Q16, and more particularly subsections ~b) ar~d (d), could be knterpreted to mean that there ~ {~~ + ~ 1 V V Sta~f Repart on Prapased Ma~rf;c~at~ons to Regulat~on 5Q16(b) and (d) December 1, t 9~7 Paoe 2 could be greater thar~ ~ 5°/a of the units where low ~ncome affordabrl~ty was req~ired. This has not been the case m the ~~st. However, in rereading the regufation, staff does notice that there could be more tt~an one mterpretation ~~~en ta the ~egulat~on In an effort to clar-fy the Baard's regulations ~nterpreting Section 1803~t)~2)(ii}, sta#t Es now proposmg two minor rnodrticat~ons to Regulatian 5016. In subsection (b) staff would recammend the Board delete the words "at least." Tt~is change would make clear tha# the requirement is 15~0 and nat more than that percentage. (See attached propased regulatiar~ change~. The second recommended change ~s to subsection {d). In that subsection staft would recommend stnking the ent~re last phrase, "and the number of rental units Qn the site that are affordabie to low ar~d moderate ~ncome persons." By de[et~ng this phrase, the regulation cvuld not be ir~terpreted to mean that more than ~ 5~a of the units are required to be affordabte. (See attached proposed regulatior~ change). Staff recamme~ds that t~a Board schedule #~e mod~fications fo Board regulation 501fi(b) and (d) as set fort~ abo~e and ~rr tt~e at#ached copy af 50~fi, for a public t~earing on Sanuary 8, 1998. l S~ - ~ j ~'~ ,~^ l1 Staff Repor# on Propasecf Mad~facat~ons to Regulat~on 5016~b} ar~d (d) December ~ , 1997 Paae ~ 501 S. Standard9 For Cateaor~ D Permks (a~ A Category D-emoval perm~t wEF! anly be granted ~t the sde on wh~ch the coMrolled rental un-ts sought to be removed w~ll be de~ebped wdh mult~iam~ly rental unEts that wdl not be exempt from the pro~~s~ons of Art~cle XVIII of the Santa Mon~ca C+ty Charter pursuant to §~so~i~~ (b) A Category D removat permd wdf only he r~rartted d a~-leaet 15 percent (t 5°fe) ai the remat ur~~ts ta ~e bu~it o~- s+te on wh~ch the controlaed rentat un~ts souqht ta be remo~ed w~il be rented to lovrr mcpme persons at reMS that ihey can affard ~c) As a cand~t~on ot appro~~ng a Category €? removal permrt, the 8aard shall rec~ire that ths ~ 2ipplicartt ertter rrna an sgreemer~t wrth She Bo~rd that wdl r (1) Pro~~d9 ihat th8 applicant ~greeS thlt the rBntal und5 t0 ~e budt on thB SRe wdl be sub~ed to the pro~~s~ons al Art~cle XVill of the Santa Mon~ Cdy Charter and not be exempt pursuara to §t80t(c). (2) Prov~de that the appl~ant shali record a Dectaration of Restnctbns (deed restrictwr~s) and such other covenants ar~d cand~tions as the Board deems • necessary to ensure Ehat 15 percent (159~e) of the u~rts wdl be cantirwousty rented to !ow u~come persons at rents that ihey can attorcl (3) Provida that oonstrucdan of the new rental unds shal! commencs wrthm 18D days ot the date ot demolitbn of the renta~ ~nds fo~ which the removal permit ~s qranled. (4) Prornda that ex~stinQ tenartts wdl have a nght of first refusal for the new reritai un~ts. (5? Prvvide tttiat t~e new res~#a! un~s wsll be at castopasabie s;ze. ~~ciud~s~g number of bedroorr~, and affer camparable amen~ties ta the unds removed from !he s~te. (d) In determrnmg whether to grarrt a Category D remo~al perm~t, the Board w~lf cons~er the o~erail ~rnpact an the renta# housmg ma~icei that w}ii resuft irarn granl~ng the r8ma~al perm~S and the rmpact of tl~e rema~al on the ex~st~ng Senanr~ The Board w~ll not approve a Categary D remo~al perrnd that res~lis +n a net decrease ot ihe number of rental umts on the s~te ~T~ fF~n ne~e+~~ar nf renf~k lnAe nn IMe ~rte fki~4 ~rn aHnrii~F~ln #n Inw ~nr1 sr`n~er~sfn ~~ r~ 3 12i2/97 ~ ' ~ ~i ~ ~ 1 , ~ ~ ; v ATTACHMENT H _~ ~„ ' - "t ~ ` :, Proposed Revisions to Re~~sed Draft 1998-2003 Hausmq Element Update Table Il-20, Page II-56 Add the following pro~ect to the Inventory 2405-2407 Fourth Street, 10 units, CHARP fund~n~, Built in 1987, Family Housing, CCSM Sponsor/Owner, Earliest Conversian Date of 311712002+15 yrs Page II-76 Add the following to the discussion in Sectian II-D 3"In~entory of Land Suitable for Residential De~elopment - Non-Resident~al Zanes" as follows "The City has prepared an analysis of sites m commercial distrfcts (G2, C4, C3, C3C, C4, C6, CM) which would be most likely to recycle durmg th~ planning penod due to ti~e age andlor conditi~n of the existing structures, or due to the potent~ai for a substantial intensEfication of the extst~ng use(s) Considering the incentives the City has in place for res~den#iai development in commercial zanmg d~stric#s, it ~s quite likely that some portio~ of these parcels, w~~c~ total an area over 70 acres, will be dev~loped as resident~al pro~ects or include some res~dential units The number of potential resid~ntial units is unrestricted in these commercial districts, howe~er, the size of pro~ects is determined by FAR Each pro~ect will ha~e a d~fferen# mix of residential and commercial uses deper~ding on the de~elopers' pra~ect ob~ectives Akthough it ~s difficult to estimate tF~e ac#ual number of residential uni#s which could be accommodated on these sites, the fiollowing table provides a prelim~nary assessment of the resident~al patent~al based on an assumed 1Q°~ residential mix, a 3Q% resid~ntial mix, and a 100% resident~al mix in bu~ldir~gs built to the max~mum FAR permitted The number of units were calculateci based on the max~mum FAR, ad~usted by 15% to account far °~on-leasable° space, and an average 1200 square foot un~t size T~is prel~m~~ary mvestigation indicates that if these commercia~ properties, were to be redeveloped dur~ng the piannir~g per~od anc~ devated 1~% of th~ floor area to residential use, be#ween 228 an~ 249 r~sident~al units wo~ld res~lt If the same prope~ties were to be redevelaped w~th 30% residential use {the threshofd far dansEty mcentives m the C2, C4, and C6 zoning districts), be~v-+eer~ 836 to 1034 residential un~ts would be de~eloped Far companson purposes, if these properties were to be redeveloped as 14Q°~ resident~al pro~eets, between 2,786 and 3,445 units would be develaped As d~scussed, each pra~ect w~{1 ha~e a d~fferent mix af uses These calculataons ha~e been prepared for ilfustratave purposes " ... ~. ~ ~ Commercial Corridor Disfrict 10% Residentia! 30% Residential t00% Residenfial Lincoln C4 96 - 39 68 - 84 225 - 282 Pico C2 33 -39 140 -~65 468 - 559 Santa Monrca C4 46 - 5T 998 -228 660 - 769 ~lshlre C6 21 - 25 92 - ~05 307 - 350 Mairr Sfreet CM 15 - 20 44 - 59 947 - 196* Downfown C3, C3C 98 234 - 392 979 - 130fi"` Total 228 - 249 un~ts 836 -7034 un~ts 2786 - 3445 units " Certain zoning districts restr~ct the use of ground floor frontage and would pre~ent a pro~ect frorn being 1009~ residential Pages III-10 & 11 Delete 1 gt paragraph on page II I-1 ~ Add "Provisians for Second Units" section ta page ! I I-1 '! as fol I ows "Prowsrons for S~cond Unrts Second un~ts are defined as an attached or detached dwell~ng u~its whECh provides complete, independeni li~mg facilities for one or mare persons ir~cludmg permanent provisions for living, sleeping, cookmg ar~d san~tation, located on the same lot on as the pnmary strucfure On October 15, 1996, fhe Santa Monica C~fy Council adopted an inferim orc#inance mak~r~g the fmdmgs required by law, c~arifymg the ex~st~ng poi~cy of allowmg second units ~n multi-family districts These circumstances ~nclude allowances for second units in single-family zones for the use af dependents af the property owner, such as elderly relativ~s or pt~ysically ar mentalfy dESabled adult children, or care givers of the p~operty owners or depender~#s af the praperty owner, such as health care pro~iders This ordinance represents a modificatian of the City's previous regulat~ons which precluded development of second units in the R1 and OP1 districts under any circurnstances The City Counc~l's policy to limit provisions far second units m s~ngle-family zones is based on thetr concern for preserving the quality of life in those iim~ted s~r~gle-family neighborhoods remaining in the eommunity Resident~al streets in tf~e Cit~s R-1 and OP1 distr~cts are already ~mpacted by traffic and parkmg fram the hundreds of thousands of people who wc~rk in the city, v~s~t the city, or commute out of #he city on a daily basis In addition, an portions of the c~#y, the commerc~al zonss which run along the c~#y's ma~or east- west thoroughfares are ad~acent to R-1 neighborh~ods, and further ~mpact the quality of I~fe in these neighb~rhoods w~th tr~ff~c, n~ise and parkmg spillover Moreo~er, a substantial number of second units already exist in the city's R-1 neighborhoods, b~ilt ,~ ~~~~ either as "accessory units" and not perm~tted for c~wellmg, or built illegally without permits Taken together, these factors result in smgle fiamily ne~ghborhoods which are already naisier, and more sub~ect to parking and traff~c problems than their zoning designations would indicate During public hearings h~fd before the Planr-mg Comm~ssion and City Council in September and October 1996 on the City's praposed mt~rim second unit ordinance, a significant number of residents expressed the~r cancerns about permittmg the development of additional second urnts in the R-1 and OP~ districts These concems mcluded, thE creat~on and exacerbation of traff~c and parking probiems, inord~nate demand on the infrastructure of older ne~ghborhoods planned ta accommodate R-1 densities, mcreased noise, ir~creased air pollution, security r~sks, and tF~e fack of quiet, peaceful spaces in the community The Ci#y increased air pollution, security risks, and the lack of quiet, peaceful spaces in the cammunity The City CounciPs palicy dec~saon to limft the circumstances under wh~ch second units are permitted in single family zor~es reflects #he conser~sus of publ~c opmaon presented both oral~y and in wnting at these public hearmgs The limi#ation of second units ~n the R1 and OP1 districts is not viewed as a constra~nt upan the development of housmg for all incorne le~efs i~ Santa Mon~ca for the followmg reasons Adequate si#es are not dependent on second units. The City's residential sEte ~n~entory for the 1998-2~~3 period eantamed m Section II D of the element demonstrates tt~e City has adequately zoned land at appropriate densities to fulfill ~ts regional hous~ng growth needs by Encome level With only 16 units of the Santa Mon~ca's over 4,OD0 unit growth poter~t~al occurring ~n the R9 and OP1 distr~cts, fulfillment of the C~ty's 3,219 unit regional needs r~qu~rements are not dependent upon ~ncreased develapment in these zones Second units would not add significantly to the City's ~ousing stock. E~en if the City were to I~beralize its second unit ordinance, ~t is unlikely that second units wauld ha~e a significar~# ~mpact on the new housing stock durmg th~s plar~nmg period The ma~ority o# requests #or second units in single-family districts would likely be for legalization af existing "bootEeg° units and not far the constructGOn of new housEng units Second units would not pro~ide affordable rental housing. The City does not believe tha# r~ewly ~onstruc#ed second units would necessar~ly be affordable The City has r~o abil~ty to control the rents on these units ur~der th~ Rent Contro~ Ord~nance as they would be exempt as new construction, and these un~ts are also not sub~ect to Proposit~on R Inclusior~ary Housing reqwremer~ts Data pro~ided by the Rent Control Board trackmg the rent levels af units decontrolled as a result of Costa-Hawkins demonstrates that these uniks are losing their affordab~lity Gi~en the rent levels commanded for th~se un~ts, tt~ere is no reason to believe that newly cortstructed second units would be affered at affordable rents ~, „ ^ ' ~ ~ Because of these cons~derations, the City does not cansider second units to be an integral parl o# Santa Manica's overal I program strategy to proacti~ely assis# in both production and preservation of affordable housing Page III-30 Revise description of Category D remo~al permits to refilect Rent Control Board actions as follows "Chapter 5 of the Rent Conirol Regulations specifies the procedures and necessary fndings that the Baard must make before i# will gran# one af four "removai permit" categories, two of wF~ich now also include specGal ~anations to facifitate repair and reconstruction af ~uild~ngs that were damaged during the 1994 Narthridge earthquake TF~e #our remo~al permit categories are • Category A(repealed in 1994), for s~#uations in which it can be clemonstrated that a landlord is c~nable to collect the curre~t Max~mum Allowable Rent (MAR) for a unit, • Category B, for situatians in which it can be demonstrated that the current MAR for the rental units does not provide a"fa~r return" and the landlord cannot rent the units at the rent necessary to achie~e a fa~r return, • Cafegory C(and the earthquake recovery-related GQ version), when it can be demonstrated that controlled rental ur~~#s are "unin#~abitable," and cannot be made habitable in an "economically feasible" manner, and • Cafegory D(a~d the earthquake reco~ery-related DQ vers~on), when the property will be redevelaped with a new multi farnily rental pro~ect, and the property awner agrees to, among other tY~ings, cant~nuing Jurisd~ct~on of the Rent Control Law over the rede~e~o~ed r~~ acamer: ~ental units, and that a~ f~as~ i~ ~.~r. ~h_,r~ 15 percent of the un~#s in the ~ew nrn~Pct wi~~ rPnt at nr~r.PS "affordabl?" to "law- r~c ~ ~ ~ ~~i- ~ :5 f,::;:ii ~:•~t~ ..i~ `., . .: ~ ~ . ~~ ~•lr~ll ~~ ::~~] :~fE' ~i:]t ~i:. : ; nc•I..r~~~-. ~4hf~~; i• .~::~i• ~ ~~,~ - ~ E•~ ; _ =:~•t ~L:a,~L+lre~i~~r~ Page 1V-3 Correct typographicalJcalculation error Total household under the 1989-1998 Accomplishments column total is 9,499 Page V-10 Delete #hGrd bullet under Pragram 1 a as follows i~ ~; V ~ Y ~ E V l iTi G/~lGl il WI IJIJl61 Il Wlll l VLOIG ICiri CII IU lllG V IGI LGI i CGIyGI Vlly ~..I~~.J.~~ ~...J L..~.......~ L~ rl~..J~LI~ L.~....~....... ~~a~ aL.~t ~ JUVJIUIGA OIIU LJL!lU.7C.,7 lV PIIVIUOUiG IIVU`7111y FJ1V~Gl,IJ 1110[ JGyYG 1~~.. ~L~IJ~ ~ f_~.~ onoi _r a~_ .~a.. _..i.,.~ . I IVUJGI IVIUJ GQI1 HI El~,~ V 1'VV /O VI U IG LVUi Il~! II IG\.i1Q11 11 IlrV111G Page V-11 Add a bullet ta Program 1 a as fallows • E~aluate modEf~cations to the Zan~n~ Ord~nance to aliaw far existing non-conform~ng multi-family res~dent~al de~elopments that are destrayed due to fire, earthquake or other nat~aral disaster to be replaced in-kmd m order to pre~ent the I~ss of dwellmg units ~n the City Consider the use af the Earthquake Reco~ery Act as a model for this program Page V-11 Re~ise 7'" bullet under Pragram 1 a as follows • (:~,-t.nue t:~ :~~t~c:.c~:~. ~r ,: ;~r~, ;~ mc,-• liti4.5 :~ dQV~ cn resid~:rfti~l 1.+Se:: I~1 I~3~i-~ f:;i ~:[~' •f e•~ 7.:i .~ls'+ .'+ISt• '•~ -:~1~: f?, i~ ..a::? :i~'~C;If C'ill"~i mod~ficat~an of deveiopment standards to encaurage the development ~f housing in commercaal areas of the City Page V-11 Add bullet to Program 1 a as foflows • E~aluate the mod~f~cation of the ex~sting pro~ec# design and development standards m the C3C Distnct and other commercial distncts as appropr~at~, to provade that for the purposes of assessmg whether a development review perm~t is required for new development, flaor area devoted to residentaal uses shall be d4scounted by fifty percent Page V-19 Add a bullet to Program 2 f as follows • Enact a land banking program, if feasible, for the City and non-profit devekopers of affordable housing to purchase iand and existing propertEes for future d~velopment of affordable hausmg Page V-23-24 Add three pragrams under the 4"' bul{et of P~ogram 3 a as follows _-° - f ~;, a rental assis#ance program that f~nds the difference be~,veen the Fair Market Rent and the market rent for Section 8 tenants, a rental program that assists Section 8 tenants whose landlords ha~e opted out of the Sectian 8 program to pay the Maximum Allowable Rent tf the tenant decides to remain ~n the un~t, a program that pro~ides sec~r~ty deposit assistance for initia~ leasa up and contract opt aut reiocations for needy Section 8 recipients Document W~de Change references to the "Draft Element" to "Element Update" Correct typagraphical errors f lppolsharelhsngelmtlr$portlrevision wpd S~ ~ 1 ~ V ATTACHIUIENT I r•~ -i1i w . i .~ ~, ~~ _~ SunL~ 31~~niea " . . . o~.~cv~~ ornrn~~~con _ ~ __ /~ ~ ., r ~~ C~i~~ o~~a~z.~a ~o~~ica ~ fi$5 Ma~n Street. P O Bax 22~0 Santa Monica, CA 90407-22Q0 Februan' 6. 1998 The Honorable tiiavor and C~tv Council, and The Honorable Planru~g Commzss~on Ctty of ~anta Monica Santa Motuca, CA 90401 Teiephane (314) 458-8702 FAX (390) 45$-3380 Re RecommendatEans Concerning Draft 1998-2003 Hous~ng Element L~pdate Dear Mayor ~Io~braok, City Counctt Mem~ers, Flanning Commission Chairperson Zinner, and Planrung Commissioners In rev~ewing the 199$-2003 Draft Housing Element Update, as adapted by City Gouncil and forwarded to the State Department af Housing and Community Development (HCD) for revie~v. we were gleased to see that the City Counci[ adapted many of t~e recommendations of t~e Rent Control Board, Hous~ng Commtssifln, and Plann~ng Commission It is our understattding that tt~e rez'ised 1948-?D~3 Draft Housing Element lipdate ~~-~l~ be retitrning €o the Planning Commission and Ctty Council f4r adopt~on ~ear~ngs in the next few weeks Before you make vaur final deciszons as part of the adopt~on hearings. v~e l~ope you w~tll take a moment to consider the followxng programmat~c ~ssu~s that the Housin~ Coi;,m~ssion believes are ~f ennca! importance to the City As you w~~ll see, some of these issues have arise~ recently, and some have i~een ~rought #o your attention previously Section 8 Progtain Gity staff will be fotward~ng for your agpror~•al some r~~w language for ~ncarporation into the Draft Houstng Element concerning posssb~e ways to ameliorate the negative ef#'ects af vacancy de-control on the Se~tion 8 rental assistance program V1ore sp~cificall~~, che Housing Cotnmtssion has been presented with the followtng ianguage ta be added to Pra~ram 3 a of the Housing Element a rental assistance pro~rarn that funds the d~fference ~+et~~~ee~ the Fair Vlarket Rent and the market rent for S~ct~on 8 tenants, F HOl"S[`G S3iaR~~~~PFILF~'k901"SCOA1~tCi~RRL"'~: p~~.h~l :~p~ a~- ~ 1 .~ 3 CZC]lJ.: F fl7~Ca1T7 Ef1~3: ati•1~i~ ~~~ill~l; ~5 <<[7si11C~ ~S11i~5~ ~;ill~~i~fa~ ]ld<< ~~~1~~{ i~U[ ~~t ~}'.~ S«~~on 8 pru~~ram t~~ pa~ tht \la~ii~3um ~ll~~~tiabl~ Rznt ~r tht tznant dzcid« t~~ r~macn ii; the un~€. - a provram that pro~ides ~zcurit~ depos-t as~i~~ance tor initia~ f~ase up and contra~t ~pt ~~~t reE~~eatic~n5 far need~ ~tct€cjn 8 rzcEp~~n[s The Housint~ Comm~ssion "holeheartedh supp+~rts t~~e~c recommendatirns and ur~_=e~ tiour appro~ al ~~f them Land Bankin~ The Housing Commission has also rer~iew~ed sta#f s recommended language for Program ~ f c~f thz Draft ~ous~ng Element concerning land-banking The language recommended b_r- staffis as fallo~x~s Assess the feas~bility of de~eloping a land banking progracn for the City and non-profit developers af affordable housing to purchase land and e~cisting propert~es for future dez~elopment af affordable ~o~s~ng The Housing Cammiss~an supports this concept-so strongly, ~n fact. that we bel~eve that the tartgua~e sttould reflect a more definit~ve eomm~tment by the Gttt~ to the p~rogram In particular, w•e recommend the follow~ng amendmer~t to the lan~uage proposed by City staff ._____~~__r ___L., ~_ r~____,__ EnactaZandbar~kin roeracnfortheCi -a~cfnon- rofit n~a~a~ «i~ i~uiuiii~r ~i u4,~c~~~ui~ ~ P ~ p developers af affordable hausing to purchase land and e~cisting properties for futtire developmenE of affordable haus~ng Second Lnfts It has corr~e co aur attent~c~n that aur prev~aus recommzr~dat~on concerr~ing seeond t~ntts tn the Rl D~str~ct was nat ~ncorporated by the City Council inta the H~us~ng Element VVe are espec~alir• concerned abaut this issue In the~r respective recom;nendatEOns to the City Couric~! yn eat~y 1997, t~e Rent Cantroi Boaxd, Housmg Commissian, and Plan~ung Comm~ssion ati recommended that the C~ty Counci~ adopt the fo~lo~nng ianguage as part of Program 1 a As a means of providing add~t~onal s~tes for housing, broaden the current de~•elo~ment stanaards for seconc~ units ~n the R~ Distr~c~t c~•~t~~rt reasonable ~imats requyring that at least one of the units be o«~rier-occup~ed In a local~t~• such as Santa i~Ionica ~~.•h~re ~•acant lanci is scarce and land priees are hi~h, the possib~l~n• of secon~ un~ts in s2ngle-farnt~t r~~~~hborhoocls ~ro~•~des an ~mportant apportun2tz~ for addGtianal affordable hous~n~ , F~Ii0E;511G SN~R~ ~~'PFII ES F3(1L:5lUtilht~~ORR~SP• ~~~~h.' ~vp.s - ` ~ ~ a G v Thou~h «e ~e[ietz ~hat tii~ nezd t~~r addit~~~r.al ;ite~ t~~r attord ibI~ h~~usin~,~ :~ ~~~m~el~in~~ en~~u~~h ~1. itself. «e are tifrther ~mprz5s~d-a~ «e b~l~e~ ~ thz Cin Counc~l ~~-lt be-to le~rn that in ~ts Sept~mh~r 1997 eomrnents on thc: Draft H+~u~~n~ Fltr~lent HCD 3t~r.d tt~at th~ C~ti ~hould. - anal~ ze tf~~ Cit~ s recentl~ adopted ~e~ond-uni[ ordEnance as a~ot~ntial con5tra~nt [on housEn~ product~~n] [n ~ts ~ommrnt~. HCD ~nd~ca~ed th~t chan~~e~ t~~ the C~t~ ~, polic~ cro se~.ond unit; ~n thz Rl d~str~ct are nzcz;~ar~ kn ~~rder to brin~, the Cit~ ~ housin4, pnl~c~es and pro~rams ~nto compliance «ith State la~; - Based upon our Cit~''s crit~cal nee~ ior affordable hous~ng, the members oT thz Housin~ Commission urge ihe Ctt~ Counc:l to reconsider aaopttn~ r~e ~an~~aa~~ recomrr~endec! bi- the Re~ti Contro~ Baar~_ E-Io~s~ng Camm~ssron. and Pfannin~ Commissian 4oncem~ng second un~ts On benalf af the Hausing Comm~ssion metnbers. I otfer our full as5is€ance ~n reopenin~ this ~•~tal ~ssue tian-Canforming Residenttal Buildings The Houstng Cammission ~s cancerned about the e~cclusion of anather pol~~y from the Housing Eiement that would ha~-e perm~tted the reconstructlon in k~ncf of nonconforming res~dentia~ builc~angs m rezoned d~stncts of the City after destruction b~• fire, earthquake or ather disaster T'~e dectsion not to al~aw• the reconstruction m~jnd of these build~ngs wtl l tmpose severe hardshi~s on the owners of apartrnent buildings and condominiums Santa :1~tonica is untque in that many areas have been dawnzoned to contral Encreased dens~ty on ~nderdeveloped lots Th~s has left many bu~idmgs non- conforming, yet we do not believe tt w~as the Citv°'s intent to reduce the density- of these ex~stin~ ~auildings Ho«•e~~er, the ~nabilit~~ to replace destroyed buildings as a nght could result tn an unforeseen hardst~2p and a Ioss of housing opportunlt~es at a~! income leve~s Perhaps the pressure of the many tssues before the Counc;l in the Housing Elernent did not allaw~ th~ Caunetl members tirMe to fullv think ihro~gh the ~mplications of this pol-c;~~ In the Case of condominiums. the txability ~nsurance for fire loss does not contemplate the purchase of the addtt~anaI land to recanstruct units no longer permitted on the onginal 5~te T~ie CC&R's. the rutes that govern condom~nium homeow~ner assoc~ations, are unlikel~ to address the problem of re~zstr~bution of che as~ets ~n a case r.~~here on1F~ a port~on of the units can remain on the orFginal site Wha v+~lI be allowed to scav in the re~uced number of rehuilt units and who w~li be forced out'' How will a decisFOn be made`' W7-ere and how w~l! the ousted owners be re~oused'~ How w~li the costs of new housing for them ~e paid`' The financial and pracedural problems will surely grve nse to a areat deal of ~iti~~tion as owners attempt to reco~~er l~sses The problem is no less senous for apartment build~ngs Therefore, ~~e recommend tf~at a new~ policy address apartments and condom~n~ums alike The Ho~s~ng Commission stron~lS~ recommends that the Cit~• reconsider its poltc~• on this issue and adopt a policy° that permits thz rcconstruction of noncantarming residential buildings loeated i~ residential districts in the casz at~ destrucnon h~ #ire earthquake. flood ~r ather disaster In parttcular. «°e recommend incorporat~on inta Pro~,~ram 1 a of the Draft Housing Element ~~~ith the follo~itng Iangua~e as pretiious~~ recomEnended ~ Hol ~~~,c~ SH~rtE 1~PF~LES riL~[ 5~c,.,tit ~nR~trhr~ p~~~~r ~•.r~ ? ~,. ~ i~; • tll~ui;~ (~l2 I~~CI]Cl~, ~13'utCla3l~~ Li~ ~~'[?ll[ C\I~flf~~~ Ili~il-l.(~.]ltlrl'l~ll'~ I?llSlf=-~,i:l;';: residenti~l de~zlopnlents that are az~ira~ed .~uc t~~ tirc zartlluual.t ur ~~ther natsar.i; a~Sa;ter [r ~-~ replaced in-~ind ~n c~rder to pre4enc the 1~s5 ~,t d«zll~n~~ untt> in tht C-~n ~~~e th~ ~anhc~uake Rzec~~eri. acz as a mode~ h~r thr5 pco~ram ~~'e apprec~atz ~zr~• mu~h ~our consi~zration of the•e i~sues On ~ehalf oi the entir~ Housin~ Commiss~on I am S~ncerel~~ ' urs. John Given Chair cc Susan McCanhv Suzanne Fnck Jeff ~Viath2eu ytarr~ann Yurkanis F'~HOL'S[`G`S}iaRE V.~PFILES'HOCSCOi1t~ CC~RAESP'~ o~~:hrl ~~~d `~ ~ 2~ ATTACHMENT J l~~ NOTICE OF A PUBLIC HEARING BEFORE THE SANTA MONICA CITY CQUNCIL SUBJECT: Ciiy Counc~l Considera#ion of Recommendat~on to Adopt a Resolution Amending the Existing Hous~ng Element of the General Plan by Approving the Draft 1998-2003 Housing Element Upda#e with Amendments as praposed by Staff, and to Adopt a Statement of Overriding Considerations and Certify the Final En~ironmental Impact Report E~aluating the Environmental Impacts of #he 1998-2Q03 Housfr~g Element Update WHEN: Tuesday, April 14, 1998 at 7 00 p m WHERE: Counc~l Chambers, Room 213 1685 Main Street Santa Monica, California PRDJECT DESCRIPTION The City Council will conduct a public hearing to consider amending the existing Housir~g EEement of the General Plan by appro~~ng the Draft 199$- 2a03 HousEng Element Update The 1998-2003 Housing Element is an update ta t~e City's current Housing Element which was adopted by the City Council on September 28, 1993 One of the seven mandated elements of the General Plan, the Ha~sing Element establishes a fi~e year plan for addressing the C~ty's F~ousing needs The City Council will a[so cansider adoption of a Sfatement af Overriding Considerations and Ce~#~fication of the Fina! Er~~ironmental Impact Report E~aluating the Enviranmental Impacts of the 'C 998-2003 Hous~ng Element HQW TO COMMENT You may comment at the City Council public hearing, or by writ~ng a letter Written informat~on received before 3 00 p m on the Wednesday before the hearing wtll be gi~en to the CEty Cauncil ~n #he~r packet Informat~on received after tF~a# t~me will be ga~en to the C~#y Council prior to the meeting Address your letters to City Clerk 1685 Ma~n Street, Room 102 Santa Manica, CA 90401 MORE INFORMATION If you want mare ~nformation abaut th~s pro~ect, please call Assoc~ate Planner Laura Beck at t390) ~R58-8341 The meeting faciifty ~s accessible If you ha~e any disability related needs, call (310) 458-8341 Pursuant to Califomia Government Code SectGOn 65009(b), if this matter is subsequently challenged m Court, the challenge may be Eimited to only those issues raisee~ at the Public Hearing described in this notice, or in written correspondence delivered to the C~ty of Santa Manica at, or prior to, the Public Hearing 1 ~ ~, ESPANQL EI ConcE~io Munic~pal de la ciudad de Santa Monica ten~ra una audienc~a publica que puede ser de ir~teres para usted Para mas ~nformacion, Ilame a Carmen Gutierrez al numero (310) 458-8341 APPROVED AS TO FQRM ~r. .~..._ ~ ~ ~_- KAREN G~~ISBER Planrnng nlr`anager ~ ` : ~ 1 ATTACHMENT K Final En~ironmental Impact Report and Mitigation Monitoring Program ` i .,N ~~L APPENDIX E MITIGATION MONITORING PROGRAM Sect~on 21081 6 of the Publrc Resaurces Code requ~res adopt~on of a repamng or morutonng program for pro~ects «~hich result in significant environmental effects The momtonn; is reqwred to ensurE implementahon of the measures considered necessary to mthgate or avoid significant effects T~e fol~o~v~ng table idenhfies eaeh mitz~at2on measure req~rerl to rednce effects assocZated j;•~th adoption and implementation of the Housrng Element, ~vhen momtonng «zll occur, and the agencies responsible far monitanng and enfarcing the measures In addrtian to these measures, as required by Government Code Section 65400(b}, Cit}~ staff «~ill pro«de an annual report to the Crty Council outlining the progress toward General Plan implementation, mcluding ixnplemen~ation of the Housmg Element ~.~ j ~~ SANTA MONICA HOUSING EL~M~NT M1TiGATION IVl4NITORING AND REPORTING CHECKLIST Verification of Compliance i i i M f ga# on Measure Monitoring Monitoring Enforcement Phase Ager~ry Agenry ~n~tials Date Remarks Air Quaiita- 1 For individual devalopment Ongoing City of Santa City of Santa projects s~i~ject to discretionary Monica, Monica, rev~ew, the City shall determine Building & Building & wnat measvres will be required to Safety Safety m~nimize indirect source Division Division emissions through energy conservation, installation of Qr}B~sY'BT7ICIBR~ 4~~~10fiCB5~ passive solar design, etc Transportation/Circulation The following will apply to projects Ongoing City of Santa City of Spnta requiring discrefianary permit Manica, Monica, apr,.....: Engineering Buiiding & Division, Safety 2 Circulation system Emprovements Parking & Division or other req.,~~e~T,~nts imposed by T.:~-~."._ th@ City Pdrking and TrafFic pivision, and Engineer wiE! be implemented City Planning prior to tF~e is~..,.~ ~.e of occupanry Division permits ~~_i ~c-,- Verification of Compliance Mttigation Measure MonitorEng Phase Monitoring Agenry ~nforcert~enf Agenry Initials Date Rernarks Water Use - Cumulative 3 The Cify shall continue to require Ongoing City of Santa City of Santa water conservation of al~ .._.. Monico, Monica, d~veloprnent Each n~.. project is Environ & Building & required to achieve a 2 1 ofFset of Public Worlcs Safety water use -- that is to conserve Management Division twice the amount of waier the Department project uses To accomplish that, and Building tF~e ~.iry cnarges each dsveloper a & Safety fee on every gallon of water used Div~sion The revenue is added to the retrofit program funds io buy and install low-flow plumbing in exisfing buildings Implementalion af this and other conservation programs and meas~res will redvice cumuiative impact on the City's water supply to a less-than-significant ievel w ~, C1TY OF SANTA MONICA HOUSING ELEMENT MIT[GATION MONITORING AN~ R~PORTING CHECKLIST Verification of CompEfance Mitigation Measure Manitoring Monitoring Enfor_~...~nt Ph4se Agenry qgenry Initials Date Remarks Parks 4nd ~ecre4tion 4 The City will continue to collect Ongoing City of Santa City of Santa fees pursuani to 4rdinance 1367 Monica, Mon~ca, and to assess established taxes City Planning Building & Division, and Safety Community Division and Cultural Services Los Angeles Departmeni County Assessor Land Use 5 Any action to amend the zoning At time City oi Sa~ta City of Santa provisions for the C5 an Ml when zoning Monica, Monica, ~~~~~s to al4ow residential uses by ordinance Ci4y Planning City Planning right shall incl~de establishing amendments brvision Divis~on zornng regulations that call for are buffering and similar measures to proposed protect potentially incompatible land uses from one another Similar considerations will be given to the LMSD zone ~U r,~ C~TY OF SANTA MONICA HOUSING ~LEM~NT M#TIGATION MONITORING AND REPORTING CHECKLIST Verification of Compiiance Mitigation Measure Monitoring Phase Monitoring Agenry #nfor..~...~nt Agenry Initials Date Remarks Cumu~ative Impacts - Air Qualit~r, Traffic, and Parks and Recreation b The mitigation measures cited Ongaing City of Santa City of Santa above related to impacts Monica, Gty Monica, City assocaated with housing Planning Planning developmenf will also be appl~ed Division, DrvFSion, to nonrssidential development Engineering Building & where feasible Also, City policies Division, Safety that encourage mixed-use Parking and Drv~sion, and development w~ll work to put Traffic Los Angeles people closer to worlc, thereby Division, and County creating opportunities for d Cornmunity Assessor r~duction in overall vehicle Inps and Cultural and associated pollutant Services emissions Department ~ I~ ,~ ~r~~ ~_~~ -~ ~` DEFiNtNG A "G~VERNMENTAL CONSTRA~NT" UNDER STATE HOUS~NG ELEMENT LAW a Housing Element Law. 5tate law requires local ~urisdictions to assess any constramts imposed by local government on th~e mamtenance, improvement or development of housEng i~ form~latmg a f~ve-year t~ous~ng strategy, ~ur~sd~c#tions are requ~red ta, among other th~ngs, cons~der remov~ng any such canstraints ~ City's "Constraint" Definftion. The C1ty's 9998-2D03 Hous~ng Element Update defines an "actua~ go~ernmental constra~nt" as failows A City pragram, either Endiv~dually or in combmatian with other programs, is a"constramt~ ifi it has a sEgnificant adverse impact on the City's ab~lity to meet its fa~r share of the regional need for addit~onai housing Th~s "significant adverse impac#° occurs wher~ reasanably well-informecf and exper~enced property owners or developers elect ~ot to pursue a~erage multi family housing development pra~ects m the C~ty because the cost o# complymg with a C~ty program, regulation or procedure causes the pro~ect's financ~al return to fall below minimum thresholds generally accepted by the development community ff it does, developers or owners would pursue t~e average development in another ~urisdkction where the minamum thresholds are achievable, ar to make other ~n~estment choECes, thereby s~bstantialSy d~mir~ishing the likelihaod that the City would meet its "fa~r sharen target ^ Finarrcial Rafios As lndicators of "Constraint." lt is di~Ficuit to say precisely when the "constraint" line has ~een crossed, because of the wide variety of de~elapers and development pro}ect circumstances There are, nevertheless, genera{ly accepted financia! ratias thak can be used #o identify when the cost impacts of a City program or regulatGOn an typicai apartment ancf condorninium pra~ects become a °canstraint A HR&A's analysis af whether Ordinance ~ 615 constituted an actual governmental constrair~t evaluated four typicaf apartment and four typica! corodomin~um pro~ects, and the effects Ordinance 1fi15 would have on key finanaal ratios for eacF~ pro~ect, usmg computer models t~at s~mulated the financial performance of these typ~cal pro~ects HamrBon, Rabrnovrtz & Alschuler, !nc Page 1 Apnl 21, 1998 x .` The 1998-2Q03 Housing Element Update identified the City's lnclusionary Ho~sting Program as a potent~af, not an actuat constratint on the development of new mu{ti-family housang Based on financ~al modeling (wh~ch ~ncluded reasonabfe ass~ampt~ons abaut 1and, construct~on and othes deveEopment costs and sr~came var4ables for typtica4 p~o3ects ~n tt~e R2 District), HR&A concluded that market condit~ons wouid r~ot support new mult~-family develapments of the type analyzed, even ~f the City had no ~nclus~o~ary Hous~ng Progam H~gh land cost was the overrtding fac#ar thak ad~ersely affected the financ~al returns of the typECal pro~ects modefed Average land costs were at IeWels that could not be ~ust~fied an the bas~s o€ the ~ncome ach~evable from the compieted pro}ect. HR8~A's financial models were updated to help defne the po~nt at wh~ch the scale of an AfFordable Housing Production Program fee would became an "actual go~ernmental constraint " Hawe~er, ad~ust~r~g the models to account ~or today's more favorable econom~c climate d~d not alter the conclus~an that market condit~Qns d~ not support new mu~t~- family developments of #he type analyzed, because iand costs rema~n ~ery ~igh Ham-Iton, Rabrnovr[z ~ Alschuler, Inc Page 2 Apr~l 2~ ,1998 FURTHER EXPL.ANATi~N OF THE CQNDOMINIUM PROJECT RATE OF RETURN THRESHOLQS USED TO DEFtNE A"GOVERNMENTAL CONSTRAINT" ^ Real Estate Development Competes for Financial Caprta! With Many pther, Much Less Rrsky Investrnent Alte~natives ^ Reai estate pro~ects take longer ta produce a return on m~estment, cannot be canverted easily to cash and are substantially r~skier investments than many other alternatives ^ For comparison, the lang-term historical ave~age retum in the stack market (S&P 500) is about 13% per year Dur~ng the bull market of the past three years, the average annual re#urn on tF~e market as a whole (S&P 500) was about 31 °~ per year These levels of returr~ were ava~~able with no more effar# than a few phone calls to a bank or brokerage ^ Real estate investors, therefore, expect to eam higF~er returns on in~ested capifal than an other, iargely passive forms of mvestment ~e.g , stocks and bonds) ^ Alternative Return on lnvestment Indfcators for Condaminium Projects. Measurmg "retum" m rea! estate is alsa more complicated than m many other forms of investment because ofi #he very same dist~ngwshmg faetars (e g, tirne, liquid~ty and r~sk) and because ~t usualfy involves se~era~ sources of cap~tal, ir~c[uding borrowed fur~cfs (i e , "leverage") For condomm~um pro~ects, at least three different "return" ind~cators area genera~ly used ALTERNAT~VE `~EA51BILiTY" THRESHOLDS FQR SMALL-SGALE CONROM[NIUM ~E1lEL~PMEh1TS Threshold Name Farmula GeneraEiy Acceptable Range Cash-on-Cash Return on Equity [Gross Sales-(Cost of Sales+Tatal 40-5496 {Leveragedl Devefopment Cost)]lEqu~ty Grflss Margm {•Prof~t"f IGross Saies-{Cast of 5ales+Totai 18-2096 ~Unle~eraged) Development Cast~]IGross Sales Return on Development Cost [Gross 5ales-{Cost of Sales+Yotal 20-2596 (Unleveragedl fle~elopment CostllRotal Deve{opment Cost Source HR&A Ham-Iton, Rab~rrovrtz & Alschuler, !nc Page 3 Apn! 29 , 'i 998 ~ ^ The "Return on Equity" Threshold. HR&A's anaiysis has consistently used the return on equ-fy appraach to evaluate and estab~ish "co~straint" threshalds for typ4ca[ apartment and c~ndom~n~um p~o3ects ~n Santa Mon~ca For co~dam~r~~ums, th~s represents the total, cumulative return on maney ir~~ested by t~e developer (i e, to buy land and pay for other pre- cvnstruction costs), whict~ is recei~ed afterthe project has been approved, constructed and ai! of the uni#s have been sold lt ~s not a measure of profi# per unit or an annual rate of return ^ Constraint-Defined Fee Ranges Implied By The Return on Equify Thresho/d. Using this th~eshold, HR&A est~mated that an Affordable Hous~ng Production Program #ee would not be a gavernmer~tal constra~nt on typical new condominium pra~ects if #he fee was in the range of $4 to $8 per gross square foot, depending an pro~ect location in the c~ty and pro~ect s~ze ^ The Implications Of An Alternative "ConstralnN` Threshold. In response to questions about the return on equity t~reshold, HR&A also appl~ed the °gross margin" threshold to the same prototypECal condommium pro~ects This is another way of evaluating the same typical proJects, but involves a different calculatior~, and not merely a cha~ge ~r~ t~e threshold percentage ^ Th~s #hreshold removes the effects that borrowang may have on finar~cia~ results due to fluctuatior~s m interest rates, loan-to-~aiue rat~os ancf the creditwortnyness of the de~eioper The result~ng constramt-defined fee range usmg grass margm as a threshold ~s $5 to $7 per gross square foot, or about the same range ~mplied by t~e return on equity t~reshold [See Tabfe 3B-2, on the followmg page] Ham~Iton, Rab~nov-tt & Alschuler, Inc ~age 4 Apnl 21, 199~ Table 3B-2 IMPACT5 QF AN AFFORDABLE HOUS3NG PRODUCTION PROGRAM FE~, IN ONE DOLLAR 1NCR~MENTS, ON PROTQTYPICAL CONDOMINlUM PR~JECTS 1N THE R2 DISTRICT ~N THE CITY OF SANTA MONICA, UNDER HIGH AND LOW tAND C~STS AND PURCHASE PRICES, USiNG AN 1 S°k-20°~ GROSS MARGiN CONS7RAIN7 THRESHOL~ ~ea Amount 1-Lot Pro~ects in the R2 District 3-Lot Pro~ects in the R2 District Per GSF Lower-Cost' Nigher-Cost~ Lower-Cost' Higher-Cost~ Profrt' Delta ~rofit Delfa Profit Delta Profrt Delfa Land Land Land Land Ras1d ` Resrd Res~d Resrd $0 (Base Case) 79 9°~ 4 0°k 20 4°!0 0 0°~6 19 9°~ 0 0°k 2U 0°k ~ 0°•6 $1 19 6% -2 0°k ~ 9 7% -1 4°/v 19 5% -2 6°k 19 7°k -7 5% $2 19 2% -4 1% 19 4% -2 8°!0 19 1% -5 3°k 19 4% -3 0% $3 ~$ S% -6 1% 19 4% -4 2% 18 8°/b -7 9% 19 1% -4 5% $4 1$ 5% -8 2% 1 B 7°!0 -5 fi% 18 4°l0 -10 5°!n ~ 8 8°/n $1 °!c ~~ ~ 8 1% -1 Q 2% ~ 8 9% ~ 9°/u 1$.~a/s -~',~.'j°le ~ 8 5% -7 6% $6 47.7%e -1'~.2% 78 1% -8 3°k t7 6% -15 8% 1 S 2% -7 B°/b ~~' 17 4°/a -14 3°/6 'I~.$9fo =.g_.~.°Io 17 3°k -1 S 4°10 1~.9°I(i -7',$°~'i $8 ~7 0% -16 3°k 17 5% -11 1% ~6 9% -21 i°/a 17 6°k -9 1% ~9 16 6% -S 8 4°k 17 2% -12 5% 16 5% -21 1% 17 3% -10 fi% $10 16 3°~ -20 4°rb 16 9°~ -13 9°10 16 1°~ -23 7°~ 1T 0°~ -12 1°~ $1 ~ 15 S°k -22 4% 16 B°!o -15 3°!0 15 $°fo -26 3°k 16 8°k -13 6°!0 $~2 15 5°l0 -24 5°/6 16 2°/a -16 7°,6 15 4°k -28 9°k 16 S°ifo -15 2°i6 $13 ~5 2°~ -26 5% 15 9°k -181°/6 15 0°16 -31 B°r6 16 2°10 -16 7°!0 $14 '14 8°~ -28 6°k 15 B°~ -~ 9 4°k 14 6°~ -3r~ 2°~ 15 9°~ -1$ 2°~ $15 14 4°Jo -30 6°la 15 3°k -20 8°k 14 2% -36 8°l0 15 6% -19 7% $16 14 1% -32 7°16 15 0% -22 2°k 13 8°h -39 5% 15 3°fo -21 Z% $17 13 7% -34 7% 14 7% -23 6% 13 3% -02 1% 15 4°fo -22 l% $1g 93 3°/a -36 7% 14 4°h -25 0°~ 12 9°/a -04 7% 94 6% -24 Z°k $19 13 0% -38 8% 14 1°k -26 4% 12 5°h -47 4°h 14 3°i6 -25 $°!a $20 12 6°/a -40 8°k 13 7°~ -27 S°~ 12 1°/a -SR 0°~ '14 4°~ -25 $°~ `$49Jsf (one lat) to S381sf (three lots)land cost, $282-$328fsf assu med sale pnce Z$72Isf (one lot} tn $66/sf (three fats) land cosk, $243-$314/sf assu med sale pnce 3 Developer profirt margan =[ (Tatal Sales - (Cvst of Safes + Total Development Cost))fTotal Sales] ' Percent change Fn residual land value 5ource HRB~A Hamrlton, Ra6rnov-tz & Alschuler, lnc Page 5 Aprd 21,1998 ~ a ,4n Affordab-e Housing Producfion Program Fee Must Be Supported By Evidence of r`Nexus." Befor~ imposing an affordable housing fee on new multi-family de~eiopment pro~ects, Cor~st~tut~onal law also reqwres an appropriate analytic four~da#ian to show, among other th~ngs, that there ~s a reasanable relationship between new market rate multi-family housmg and the need for affordable housing HR8~A ~s ~aseparsng a Hexus Study that anaiyzes t~e demand far goods ar~d services created by households who occupy new market rate multi-fam~ly ho~sing, the number of lower-wage worker hauseholds needad to meet that demand, tF~e cost af supplying housing that ~s affordable to those lower-wage worker households, and what this means about the fee amaunt chargeable ta new market rate multi fam~ly developmen# to offset the need for affordable housmg that these pra~ects create. The Nexus Study will be completed by early June a~d w~ll ~e cons~dered by the Planning and Hous~r~g Commissians and City Ca~ncil alor~g wEth any draft ordinance that the City Council may direct the City Attomey to prepare to revise the City's Inclusionary Housing Program Hamrltorr, Rabrnovrtr ~ Alschuler, Jnc Page 6 Apnl 21, 1998