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SR-8-C (44) rg-~'j' oro.-*" iCfJ(P f:\atty\muni\strpts\mjm\affhsg.amd City Council Meeting 7-28-98 Santa Monica, California TO: Mayor and city Council FROM: City Attorney SUBJECT: Ordinance Amending sections 9.56.020 and 9.56.070 of the Affordable Housing Production Program, Chapter 9.56 of the Santa Monica Municipal Code, Regarding the Definition of Vacant Parcel and the Applicability of the Affordable Housing unit Base Fee Resolution to Project Applicants INTRODUCTION At its meeting of July 21, 1998, the City Council adopted Chapter 9.56 of the Santa Monica Municipal Code which establishes an Affordable Housing Production Program, Ordinance No. 1918 (CCS). At that meeting, the city Council directed staff to make two revisions to this ordinance. First, the Council directed that the term "Vacant Parcel" be defined as a parcel in a multifamily residential district which either has no residential structure located on it upon the effective date of ordinance No. 1918, August 20, 1998, or which had a residential structure located on it as of August 20, 1998, but which was subsequently demolished pursuant to a demolition order of the City. The ordinance has been amended accordingly. Second, the Council dlrected that the ordinance be amended to clarify the date when the affordable housing unit base fee is established for any specific project applicant. The ordinance has been amended to provide that a project applicant must pay an affordable housing fee based on the affordable housing unit base fee resolution in effect when the project application is ye, JUl 2 8 1998 ~e... JUL 2 8 1998 deemed complete or based on Resolution No. 9295 (CCS), the first affordable housing unit base fee resolution adopted pursuant to this Chapter, whichever resolution is later in time. Recommendation It is respectfully recommended that the accompanying ordinance be introduced for first reading. PREPARED BY: Marsha Jones Moutrie, City Attorney Barry A. Rosenbaum, senior Land Use Attorney .~ f \atty\muni\law\barry\affhsg4 ord City Council Meetmg 7-28-98 Santa Monica, Cahfornla ORDINANCE NUMBER _ (CCS) (City Council Senes) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SA.'TT A MONICA AMENDING SECTIONS 9 56 020 ~'D 9 56 070 OF THE AFFORDABLE HOUSING PRODUCTION PROGRAM REGARDING THE DEFll\TITION OF VACANT PARCEL AND THE APPLICABILITY OF THE AFFORDABLE HOUSING UNIT BASE FEE TO PROJECT APPLICMTTS THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS SECTION I SectiOn 9 56 020 of the Santa MOllIca MUlllcIpal Code IS hereby amended to read as follows 9.56.020. Definitions. The following words or phrases as used in thIS Chapter shall have the followmg mearnngs Affordable Housing Fee A fee paid to the City by a mulufamlly project applIcant pursuant to SectIon 9 56070 OfthlS Chapter to assIst the City III the production ofhousmg affordable to very low- and low-mcorne households Affordable Housing Unit A housmg unIt developed by a multifamIly project appltcant pursuant to SectiOns 956050 or 956060 of thIs Chapter whIch WIll be affordable to very low- or low-mcome households Dwelling Unit. One or more rooms, deSIgned, occupIed, or mtended for occupancy as separate hvmg quarters, WIth full cookmg, sleeping, and bathroom facIlttles for the exclusive use of a smgle household DwellIng umt shall also include smgle room occupancy umts as defined m 1 Santa Momca Mumclpal Code SectlOn 9 04 02 030 790 Floor Area. Floor area as defined 10 Santa ~1omca Mumclpal Code SectlOn 9 04 02 030 3 15 HUD. The Umted States Department ofHousmg and Urban Development or Its successor Income Eligibility_ The gross annual household Income consldenng household size and number of dependents, Income of all wage earners, elderly or disabled famIly members, and all other sources of household mcome Industrial/Commercial District Any dlstnct deSignated m the Santa Momca Zomng Ordmance as a commercial or mdustnal dlstnct "Low," "Very Low," and "l\loderate" Income Levels. Income levels determmed penodlcally by the City based on the Umted States Department ofHousmg and Urban Development (HUD) estimate of median famIly mcome m the Los Angeles-Long Beach Pnmary 1\1etropohtan Statistical Area The major mcome categones are "low-mcome" (sixty percent or less of the area med13n), "very low-lUcome"' (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 l\larket Rate Unit. A dwelling umt as to which the rental rate or sales pnce IS not restncted by thiS Chapter Maximum Affordable Rent. A monthly housmg charge which does not exceed one- twelfth of thirty percent of the maximum very low-. low-, and moderate-mcome levels as defined m thiS Chapter and adopted each year by the City ThiS charge shall represent full conSideration 2 ". for housing servIces and amemtIes as provIded to market rate dwellIng umts m the project, whether or not occupants of market rate dwellIng umts pay separate charges for such servIces and amemtles Housmg servIces and common area amemtIes mclude, but are not lImned to, the followmg parkIng, use of common facIlItIes mcludmg pools or health spas, and utIlItles If the project IS master-metered NotWIthstandmg the foregoing, utIlIty charges, to the extent indIvIdually metered for each UnIt in the proJect, may be passed through or billed dIrectly to the occupants of affordable housmg umts In the project In addItIon to maxImum allowable rents collected for those affordable housmg umts Multifamily Project. A multIfamIly reSIdentIal development, IncludIng but not hmlted to apartments, condomInIUms, townhouses, or the multIfamIly reSIdentIal component of a ffilxed use project, for whIch CIty permIts and approvals are sought l\-lultifamily Project Applicant Any person, firm, partnershIp, aSSOCIatIOn, JOInt venture, corporatlOn, or any entIty or combmatIon of entItIes WhICh seeks CIty development permIts or approvals to developed a multIfamIly project l\lultifamily Residential District. Any dIstnct deSIgnated m the Santa MOnIca Zonmg Ordmance as a multifamIly reSIdentIal dIstnct Parcel Parcel as defined In Santa MOnIca Mumclpal Code SectIOn 9 04 02 030570 Vacant Parcel. A parcel m a multIfamIly reSIdential dlstnct whIch eaher has no reSIdentIal structure located on it ~~ t~~~ :.;~.~ ~L.: ~ ;~~~~~~f~;~~~lJ Y~":'J .:.:: ;:; ;;~.:~ -.-.-~:~~. :~:~ ~;:]':; Plan111n~ DqHlftR.cn~ as of August 20, 1998 or whIch had a reSIdentIal structure located on it on that date whIch was subsequently demoltshed pursuant to a demolItIon order of the CIty No 3 demolItlOn of structures shall be permitted except in accordance WIth Santa Momca 1.1umc~pal Code SectIon 9 04 10 16 et seq SECTION 2 SectIon 956070 of the Santa MOnIca MumcIpal Code IS hereby amended to read as follows Section 9.56.070. Affordable Housing Fee. A multifamily project apphcant may meet the affordable housing oblIgauons establIshed by thIs Chapter by paymg an affordable housmg fee m accordance wIth the followmg reqUirements (a) An affordable housing fee may be paId m accordance wIth the followmg formulas (1) 1vfultIfamlly Projects III Mulufanuly ReSidentIal Dlstncts Affordable housmg umt base fee X floor area ofmulufamIly project (2) MultIfamily Projects 10 Mulufamlly ReSIdentIal Distncts on Vacant Parcels Affordable housing umt base fee X floor area of multIfamIly project X 75% (3) MultifamIly Projects In Industnal/CommercIaI Dlstncts on Parcels that are either not already developed with multIfamIly housmg or are already developed WIth multifamIly housmg, but the multIfamIly project preserves the eXIstmg multifamIly housmg or a Category C Removal Permit has been obtained for the existmg mulufamlly housing Affordable housing umt base fee X floor area ofproject devoted to residential uses X 50% (b) For purposes of thIS Section, the affordable housmg umt base fee may be establIshed at 4 least every two years by resolutIOn of the City Council The amount of the affordable housmg fee that the multtfamlly project applicant must pay shall be based on the affordable housmg umt base fee resolutIOn m effect at the tIme that the applicatiOn for the multlfarmly project IS deemed complete or based on ResolutIOn No 9295 (CCS), whichever resolutIOn is adopted later in time (c) The amount of the affordable housmg unit base fee may vary by product type (apartment or condomimum) and shall reflect, among other factors, the relatIOnship between new market rate multi-famIly development and the need for affordable housmg and the Impact that the fee will have on the finanCial return of multlfamlly project apphcants (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 thiS SectIOn m a Reserve Account separate from the General Fund to be used only for development of very low- and low- mcome housmg, admmlstratlve costs related to the production of thIs housmg, and momtoring and evaluation of thIs Affordable Housmg Production Program Any momes collected and mterest accrued pursuant to thiS Chapter shall be comrmtted withm five (5) years after the payment of such fees or the approval of the multifamIly project, which ever occurs later Funds that have not been appropnated wlthm thiS five year penod shall be refunded on a pro rata share to those mulufamtly project applIcants who have paId fees dunng the penod Expenditures and conllmtments offunds shall be reported to the City Council annually as part of the City budget process 5 (f) An affordable housmg fee payment pursuant to this Section shall not be consIdered provIsIOn of affordable housmg umts for purposes of determmmg whether the multifamily project qualIfies for a density bonus pursuant to Government Code SectIOn 65915 SECTION 3 Any provision of the Santa MOnica MUnicipal Code or appendices thereto mconslstent with the provIsions of thiS Ordmance, to the extent of such mconslstencles and no further, IS hereby repealed or modified to that extent necessary to effect the provIsions of this Ordmance SECTION 4 If any section, subsection. sentence, clause, or phrase of this Ordinance IS for any reason held to be mvalId or unconstitutional by a deCISIOn of any court of competent JUriSdiction, such deCISion shall not affect the validity of the remaining portIons of thiS Ordmance The CIty Council hereby declares that It would have passed this Ordmance and each and every sectIOn, subsectIon, sentence, clause, or phrase not declared Invaltd or unconstItutional WIthout regard to whether any portIOn of the ordmance would be subsequently declared mvahd or unconstitutIOnal SECTION 5 The Mayor shall sign and the City Clerk shall attest to the passage of this Ordmance The City Clerk shall cause the same to be published once In the offiCial newspaper 6 .. WIthm 15 days after Its adoption ThIs Ordmance shall become effective 30 days from Its adoptIon APPROVED AS TO FORl\1 ~~~1~c/vJ MARSHA JoNES MOUTRIE CIty Attorney 7