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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
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JUl 2 8 1998
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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
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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
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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
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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
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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
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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
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(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
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WIthm 15 days after Its adoption ThIs Ordmance shall become effective 30 days from Its
adoptIon
APPROVED AS TO FORl\1
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MARSHA JoNES MOUTRIE
CIty Attorney
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