SR-8-A (100)
CA:RMM:sr9425/hpadv
City Council Meeting 10-20-92
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NOV 1 0 1992 OCT 2 0 1992
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Santa Monica, California
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STAFF REPORT
TO:
Mayor and City Council
FROM:
City Attorney
SUBJECT:
Ordinance Amending Municipal Code Sections 9.28.060
and 9.28.080 Regarding On site Inclusionary Unit
Development Requirements and In Lieu Fees
At its June 9, 1992 meeting, the city Council directed the
city Attorney to draft an amendment to Ordinance 1615 which would
make an adjustment 1n the number of on site inclusionary housing
units required for five unit projects, so that only one on site
unit would be required. The ordinance lS presented to the City
Council for first reading.
SECTION-BY-SECTION ANALYSIS
SECTION 1. Section 1 of the Ordinance amends santa Monica
Municipal Code section 9.28.060 which sets forth the number of
inclusionary housing units required when on site units are
provided.
A chart is provided which indicates the number of
units required if 20 or fewer units are built. The only change
to the existing requirements occurs at five units. If five units
are built, one low income unit is required.
Prior to this
amendment, two inclusionary units were required when five units
were built.
For greater than 20 units,
the number of
inclusionary units required equals 30 percent of the number of
uni ts bui 1 t, with 0.3 or more rounded up to the nearest whole
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number.
This
represents
no
change
from
the
existing
requirements.
SECTION 2.
Sectlon 2 of the Ordinance amends Munlcipal
Code section 9.28.080 by adding a CPI adJustment to in lieu fees
for the time period between the date of adoption of the
Resolution establishing the inclusionary unit base price and the
date of payment. At its June 9, 1992 meeting, the city council
adopted a Resolution establishing the inclusionary unit base
price at $51,000.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be introduced for first reading.
PREPARED BY: Joseph Lawrence, Acting City Attorney
Mary H. Strobel, Deputy City Attorney
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CA:RMM:a9425/hpadv
city council Meeting 10-20-92
Santa Monica, California
ORDINANCE NUMBER
(Clty Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING
SANTA MONICA MUNICIPAL CODE SECTIONS 9.28.060 AND
9.28.080 REGARDING ON SITE INCLUSIONARY
UNIT DEVELOPMENT REQUIREMENTS AND IN LIEU FEES
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN
AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 9.28.060 is
amended to read as follows:
SECTION
9.28.060.
On
site
Inclusionary
Unit
Development
Requirements.
(a) In determining the number of
inclusionary units required when on site
units are provided, the following chart
shall be utilized.
Number of
Units Built
(excluding
density bonus)
Low
Income
Units
Required
Moderate
Income
units
Required
2
3
4
5
6
7
8
9
10
1
1
1
1
1
1
2
2
2
o
o
o
o
1
1
1
1
1
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11
12
13
14
15
16
17
18
19
20
2
2
2
2
3
3
3
3
3
3
2
2
2
2
2
2
2
3
3
3
For more than 20 units, the number of
inclusionary units required shall equal 30
percent of the number of uni ts bui 1 t i any
deClmal fraction of 0.3 or more rounded up
to the nearest whole number,
and any
deClmal fraction of less than 0.3 rounded
down to the nearest whole number.
(b)
Inclusionary
units
shall,
whenever reasonably possible,
be evenly
dlstributed throughout the project. The
appllcant may reduce elther the size or
interior
amenlties
of
the
inclusionary
units as long as there are not significant
identifiable
dlfferences
between
inclusionary and market rate dwelling units
visible from the exterior of the dwelling
unlts and the size and design of the
dwelling units are reasonably consistent
with the market rate units in the project,
provided that all dwelling units conform to
the requirements of the applicable Building
and
Housing
Codes.
Inclusionary
units
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provided shall have at least the same
number of bedrooms as the average dwelling
unit in the project and if the floor area
of the inclusionary units is not the same
as the floor area of the market rate
dwelling units at the proJect, each of the
inclusionary units shall satisfy the
following minimum total floor area,
the number of bedrooms
depending upon
provided:
0 Bedroom
1 Bedroom
2 Bedrooms
3 Bedrooms
4 Bedrooms
(c) All
500 Square Feet
600 Square Feet
850 Square Feet
1080 Square Feet
1200 Square Feet
inclusionary units in a
proJect or a phase of a project shall be
constructed concurrently with the
construction of market rate dwelling units
in the project or phase of that project.
(d) On site inclusionary units must
be rental units ln rental projects. In
ownershlp projects, inclusionary units may
be either rental units, or ownership units.
Ownership units shall comply with
requirements concerning sales price,
monthly payment, limited equity, and resale
restrictions established by Resolution of
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the City Councll to ensure that subsequent
purchasers are also income-qualified
households.
(e) If only one inclusionary unit is
required, such unit must be affordable to
low lncome households. The second
inclusionary unit provided
affordable to moderate income
and alternating thereafter.
(f) Whenever inclusionary units are
required by this Chapter, the requirement
may be satisfied at the developer's
discretion by providing 100% of the units
in the proj ect affordable to moderate
income households, provided that all such
uni ts meet the requirements of subsections
(b) and (d) of this Section, and sections
9.28.100, 9.28.110, and 9.28.130.
may be
households,
SECTION 2. Santa Monica Municipal Code section 9.28.080 is
amended to read as follows:
SECTION 9.28.080.
In Lieu Fees for
Inclusionary Housing.
(a) Whenever this Chapter allows the
payment of an in lieu fee, the required
inclusionary unit number shall be
determined as follows: Number of units in
the project, (excluding density bonus
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unlts) x 30% = required inclusionary unit
number. The first inclusionary unit
required shall be affordable to low income
income households, and the second to
moderate income households. Addi tional
inclusionary units shall alternate between
low and moderate lncome units. Any
fraction of a unit required shall not be
considered either a low or moderate income
unit.
An in lieu fee may be paid only for
low income units required, and any fraction
of a unit required. All moderate income
units required shall be provided on site.
The fee shall be determlned as follows:
( i ) For any low income unit,
the ln lieu fee payment required shall
equal the inclusionary unit base price, as
established in subdivlSlon (c) of this
section.
(ii) For any fraction of a
unit required, the in lieu fee shall equal
the inclusionary unit base price times the
fractlon of a unit required.
(b) The following chart illustrates
the in lieu fee payable, the number of on
site inclusionary units requlred, and
whether such unl ts must be affordable to
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low or moderate income levels, using, for
illustrative purposes only, an inclusionary
unit base price of $60,000:
No. Units
Built Exclud-
ing Density
Bonus
Moderate
Inclusionary
units On
site
Fee
2
3
4
5
6
7
8
9
10
o
o
o
o
o
1
1
1
1
$ 36,000
54,000
72,000
90,000
108,000
66,000
84,000
102,000
120,000
(c)
For purposes of this
Section,
the inclusionary unit base price shall be
established and adJusted from time to time
by Resolution of the city Council based
upon the cost to the city of subsidizing
the construction of a new residential unit.
Any fee required pursuant to this section
shall be adjusted for lnflation by the
percentage change in the Consumer Price
Index ("CPI") between the date of adoption
of
the
Resolution
establishing
the
inclusionary un1t base price through the
month ln which payment is made. For
purposes of this section CPI shall mean the
index for Urban Wage Earners and Clerical
Workers
for
All
Items
for
the
Los
Angeles/Long
Beach/Anaheim
statistical
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area, as published by
Department of Labor,
statistics.
(d) Fifty percent (50%) of any fee
required pursuant to this section shall be
paid prior to the issuance of a Building
Permit for the project. The remaining
fifty percent (50%) shall be paid in full
before a Certificate of Occupancy is issued
for any unit in the housing project.
(e) Any fee required by this Section
shall be secured by execution of an
the United
states
Bureau of
Labor
irrevocable letter of credl t in favor of
the Clty or other security acceptable to
the city for the total amount of the
obligation. The letter of credit or other
acceptable security shall be delivered to
the City prior to the issuance of a
building permit for the housing
development. The letter of credit or other
security shall be released and returned to
the developer immediately upon payment in
full of the in lieu fee.
(f) Any payment made pursuant to
this section shall be deposited in a
Reserve Account separate from the General
Fund to be used only for development of low
income housing.
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(g) If an lieu fee is paid pursuant
to this Section, such payment shall not be
considered provislon of an inclusionary
unit for purposes of determining whether
the housing development qualifies for a
densi ty bonus pursuant to Government Code
section 65915.
SECTION 3. Any provision of the Santa Monica Municipal
Code or appendices thereto inconsistent with the provisions of
this ordinance, to the extent of such inconsistencies and no
further, are hereby repealed or modified to that extent necessary
to affect the provisions of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause,
or phrase of this Ordinance is for any reason held to be lnvalid
or unconstitutional by a decision of any court of any competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The city Council hereby
declares that it would have passed this Ordinance, and each and
every section, subsection, sentence, clause, or phrase not
declared invalld or unconstltutlonal without regard to whether
any portion of the Ordinance would be subsequently declared
invalid or unconstitutional.
SECTION 5. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance. The city Clerk shall
cause the same to be publlshed once in the offlclal newspaper
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within 15 days after its adoption. This Ordinance shall become
effective after 30 days from lts adoption.
APPROVED AS TO FORM:
~L~
JcfSE1?H LAWRENCE
A~g City Attorney
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