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SR-8-A (104) f \atty\munl\strpts\mJm\vacant 2d City Council Meeting 10-13-98 ~ fI: 192~ 1.- o.i fujt~ 8M lollolCfB 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 2A [Or 13/qB ~" -~ . f\atty\murn\law\bany\aflhsg4 ord 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 1 . 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 2 . 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 3 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% 4 . , T (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 5 (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 6 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 7 ;). ~di~z"'-- 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: -~~ ~~ :Mana M Stewart. CIty Clerk