SR-8-A (104)
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City Council Meeting 10-13-98
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Santa Monica, California
TO Mayor and City Council
FROM City Attorney
SUBJECT Ordinance Amending Sections 956020 and 956070 of the Affordable
Housing Production Program Regarding the Definition of Vacant Parcel and
the Applicability of the Affordable Housing Unit Base Fee to Project
Applicants
INTRODUCTION
At ItS meeting of July 28, 1998, the City Council mtroduced for first reading an ordinance
amending two Sections of the Affordable Housing Production Program regarding the
definition of vacant parcel and the applicability of the affordable housing unit base fee to
project applicants The accompanYing ordinance IS now presented to the City Council for
adoption
RECOMMENDATION
It IS respectfully recommended that the accompanYing ordinance be adopted
PREPARED BY
Marsha Jones Moutne, City Attorney
Barry A Rosenbaum, Deputy City Attorney
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CIty CouncIl Meeting 10-13-98
Santa Monica, Cahforma
ORDINANCE NUMBERl926 (CCS)
(City Councll Senes)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AMENDING SECTIONS 9 56 020 AND 9 56 070 OF THE AFFORDABLE HOUSING
PRODUCTION PROGRAM REGARDING THE DEFINITION OF VACANT
PARCEL AND THE APPLICABILITY OF THE AFFORDABLE
HOUSING UNIT BASE FEE TO PROJECT APPLICANTS
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS
SECTION 1 SectIon 956020 of the Santa Monica MurnClpal Code IS hereby amended
to read as follows
9.56.020. Definitions.
The following words or phrases as used m tills Chapter shall have the followmg meanings
AtTordable Housing Fee A fee paid to the City by a rnultifanuly project applicant
pursuant to Section 956070 oftrus Chapter to assist the City ill the production ofhousmg
affordable to very low- and low-income households
Affordable Housing Unit A housing unit developed by a multlfanuly project applicant
pursuant to Sections 956050 or 956060 of this Chapter wluch will be affordable to very low- or
low-mcome households
Dwelling Unit. One or more rooms, deSIgned, occupred, or mtended for occupancy as
separate livmg quarters, with full cookmg, sleepmg, and bathroom facilitles for the exclusIve use
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of a smgle household Dwelling umt shall also mclude smgle room occupancy urnts as defined m
Santa Monica Murucipal Code SectiOn 9 0402030790
Floor Area. Floor area as defined in Santa Moruca Mumclpal Code SectlOn
90402030315
HUD. The Uruted States Department ofHousmg and Urban Development or Its
successor
Income Eligibility. The gross annual household mcome considering household SIze and
number of dependents, income of aU wage earners, elderly or disabled farrnly members, and all
other sources of household mcome
IndustriaVCommercial District Any district designated in the Santa Moruca Zoning
Ordinance as a commercial or industnal distnct
"Low," "Very Low," and "Moderate" Income Levels. Income levels determIned
periodically by the City based on the United States Department ofHousmg and Urban
Development (HUD) estimate of median fanu1.y mcome 10 the Los Angeles-Long Beach Pnmary
Metropohtan StatistIcal Area The major Income categones are 1l1ow-incomell (sixty percent or
less of the area median), "very low-lilcome" (fifty percent or less of the area median), and
"moderate-income" (one hundred percent or less of the area median) Adjustment shall be made
by household SIZe as established by the City
Market Rate Unit. A dwellIng unit as to which the rental rate or sales pnce is not
restricted by this Chapter
Maximum Affordable Rent. A monthly housing charge wluch does not exceed one-
twelfth of thirty percent of the maxtmum very low-, low-, and moderate-income levels as defined
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in tlus Chapter and adopted each year by the City Tills charge shall represent full consIderatIOn
for houSlllg servIces and amemtles as provIded to market rate dwellmg uruts m the project,
whether or not occupants of market rate dwelllllg uruts pay separate charges for such services and
amemtles Housmg services and common area amerutIes mclude, but are not linuted to, the
followmg parking, use of common facditles mcluding pools or health spas, and utdItles If the
project is master-metered Notwithstanding the foregoing, utility charges, to the extent
mdividually metered for each urut in the project, may be passed through or billed directly to the
occupants of affordable housmg uruts in the project m addItIon to maxtmum allowable rents
collected for those affordable houSlllg uruts
Multifamily Project. A multnaffi1ly reSIdentIal development, inc1udmg but not limited to
apartments, condomInIUms, townhouses, or the multifanuly residential component of a nuxed use
proJect, for which City pennits and approvals are sought
Multifamily Project Applicant Any person, firm, partnership, aSSOCIatIon, JOInt
venture, corporatIOn, or any entIty or cOmbInatIOn of entItIes wlnch seeks CIty development
pemuts or approvals to developed a multlfanuly project
Multifamily Residential District. Any distnct deSIgnated 10 the Santa Maruca Zorung
Ord1Oance as a multifarruly reSIdential distnct
Parcel Parcel as defined in Santa Moruca Municipal Code SectIOn 9 0402030570
Vacant Parcel. A parcel in a mulufaffi1ly reSIdentlal distnct wluch enher has no
reSidential structure located on It as of August 20, 1998 or wlnch had a reSIdentIal structure
located on it on that date winch was subsequently demobshed pursuant to a demobtlon order of
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the CIty No demolition of structures shall be permitted except in accordance WIth Santa Moruca
Mumcipal Code Section 9 04 10 16 ~ seq
SECTION 2 SectIon 956070 of the Santa Moruca MuniCIpal Code IS hereby amended
to read as follows
Section 9.56.070. Affordable Housing Fee.
A mulhfanuly project applicant may meet the affordable housmg oblIgatIOns established by
this Chapter by paying an affordable housing fee in accordance W1th the followmg requirements
(a) An affordable housing fee may be p8.1d In accordance with the followmg formulas
(1) MultIfamily Projects m MultIfamIly Residential Districts
Affordable housing urnt base fee X floor area of multlfarruly project
(2) MultIfanuly Projects In Multifarmly Residential Districts on Vacant Parcels
Affordable housmg unit base fee X floor area of multIfamily project
X 75%
(3) Mulufamily Projects in IndustnaVComrnercIa1 Distncts on Parcels that are
eIther not already developed with multifanuly housing or are already developed
with multifamily housing, but the multIfarmly project preserves the existing
multifamily housing or a Category C Removal Pemut has been obtained for the
existing multifanuly housmg
Affordable housmg urnt base fee X floor area of proJect devoted
to reSIdential uses X 50%
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(b) For purposes of thIs Section, the affordable housmg umt base fee may be estabhshed at
least every two years by resolution of the City Councll The amount of the affordable housmg
fee that the multifamily project applicant must pay shall be based on the affordable housing umt
base fee resolution in effect at the time that the application for the multlfannly proJect is deemed
complete or based on ResolutIOn No 9295 (CCS), whIchever resolution IS adopted later m tlme
( c) The amount of the affordable housing unit base fee may vary by product type
(apartment or condominium) and shall reflect, among other factors, the relationship between new
market rate multl-fannly development and the need for affordable housmg and the impact that the
fee wlll have on the financial return of multIfamily project applIcants
(d) The fee shall be paid in full to the City prior to the CIty grantmg any approval for the
occupancy of the project
(e) The City shall deposit any payment made pursuant to tlus Section m a Reserve
Account separate from the General Fund to be used only for development of very low- and low-
mcome housmg, admInistrative costs related to the production ofthis housmg, and monitonng
and evaluatIOn of tlus Affordable Housing Production Program Any momes collected and
mterest accrued pursuant to thIs Chapter shall be comnutted WIthm five (5) years after the
payment of such fees or the approval of the multifamily project, wluch ever occurs later Funds
that have not been appropriated WItlun this five year period shall be refunded on a pro rata share
to those multifamily project applicants who have paid fees dunng the period ExpendItures and
commitments of funds shall be reported to the City Councll annually as part of the City budget
process
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(t) An affordable housing fee payment pursuant to this Section shall not be considered
prOVlSIon of affordable housmg uruts for purposes of determining whether the multtfanuly project
qualIfies for a density bonus pursuant to Govemrnent Code SectlOn 65915
SECTION 3 Any provision of the Santa Moruca Mumcipal Code or appendices thereto
lDconslstent With the provisions of this Ordinance, to the extent of such inconsistencies and no
further, is hereby repealed or modified to that extent necessary to effect the provisIOns of tills
Ordmance
SECTION 4 If any section, subsectton, sentence, clause, or phrase of tlus Ordinance is
for any reason held to be invalid or unconstitutional by a deciSion of any court of competent
jurisdiction, such deciSion shall not affect the validity of the remairung portions of tills Ordinance
The City Council hereby declares that it would have passed dus Ordinance and each and every
sectIOn, subsectlOn, sentence, clause, or phrase not declared invalid or unconstitutIOnal without
regard to whether any portIon of the ordinance would be subsequently declared invalid Of
unconstitutional
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SECTION 5 The Mayor shall sign and the CIty Clerk shall attest to the passage of tlus
Ordmance The CIty Clerk shall cause the same to be pubhshed once in the officIal newspaper
WIthIn 15 days after Its adoptIon ThIs Ordinance shall become effective 30 days from Its
adoption
APPROVED AS TO FORM ~ 1_
IhIU~Lj~
MARSHA JONE$j10UTRIE
City Attorney
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t'fv{l-V ( ,
Robert Holbrook, Mayor
State of Cahforma )
County of Los i\ngeles ) ss
CIty of Santa Ylolllca )
I. Mana M Stewart. CIty Clerk of the CIty of Santa MOllICa. do hereby certIfy that the foregomg
Ordmance No 1926 (CCS) had Its first readmg on July 28.1 998 and was adopted on October 13.
1998 by the followmg vote
Ayes
CouncIl members
Ebner. Femstem. Genser. Holbrook, O'Connor
)J" oes
CouncIl members
None
Abstam
CouncIl members
None
Absent
CouncIl members:
Rosenstem
~A.. ITEST:
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:Mana M Stewart. CIty Clerk