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Council Meeting: 06/09/92 Santa Monica, California
CDD:Housing:CE:JK:proprstf2/pc
To: Mayor and City Council Members
From: City Attorney and city Staff
Subject: Recommendation to Adopt the Attached Resolution which
Establishes the Inclusionary unit Base Price for Purposes
of Calculating the In-Lieu Fee option
INTRODUCTION
This report recommends that the City Council adopt the
attached resolution establishing the inclusionary unit base price
as required by section 9426(c) of Ordinance 1615.
BACKGROUND
On March 3, 1992 the city council adopted Ordinance 1615
implementing Proposition R. section 9426(c) of that Ordinance
requires that the city council set an inclusionary unit base price
dependent upon the City's cost to subsidize the construction of a
new residential unit. This unit base price will be used in
calculating the amount of the in lieu fee payment when an in lieu
fee payment option is available for a particular development.
DISCUSSION
section 9426 (c) of Ordinance 1615 states, "... 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."
Therefore, it is necessary at this time to determine the amount of
the in-lieu fee and incorporate it into the Ordinance. 9-c.
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The city has chosen four (4) new construction projects to
which it has committed subsidies during the past four years. These
projects total one-hundred thirty-one (131) units of affordable
housing. The city's subsidy for those units was as follows:
PROJECT # OF UNITS CITY SUBSIDY
2nd st. Center 44 $ 2,165,523
Greenwood/Garcia 30 1,107,280
Virginia Village 12 723,333
815 Ashland Ave. 45 2,689,103
131 $ 6,685,239
AVERAGE PER UNIT SUBSIDY = $ 51,032
Therefore, on average, the per unit cost of subsidies to these new
units is approximately $51,000. Staff believes this amount is
indicative of the subsidy necessary to enable the production of
affordable units to be feasible, and therefore recommends that the
City Council adopt this amount as the "inclusionary unit base
price."
FINANCIAL/BUDGETARY IMPACT
In lieu fees collected pursuant to Ordinance 1615 will be
deposited into a deferred revenue account until they can be
programmed for use in accordance with established budget procedures
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and necessary Council approvals. Approval of the recommended unit
base price does not have a financial or budgetary impact at this
time.
RECOMMENDATION
It is recommended that the City Council adopt the attached
resolution establishing the inclusionary unit base price at
$51,000, as required by Section 9426(c) of Ordinance 1615.
Prepared by: Barbara Stinchfield, Acting Director
Chuck Elsesser, Housing program Manager
Jim Kemper, Senior Development Analyst
Community Development Department
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CA:RMM:incl/hpadv
City Council Meeting Santa Monica, California
RESOLUTION NUMBER 8414(CCS)
(City council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ESTABLISHING THE
INCLUSIONARY UNIT BASE PRICE
WHEREAS, the city Council of the city of Santa Monica
adopted Ordinance Number 1615(CCS) on March 3, 1992 amending
Chapter 4A of the Municipal Code relating to the Inclusionary
Housing Program; and
WHEREAS, Santa Monica Municipal Code section 9426(c)
provides that the City Council by Resolution shall establish and
adjust from time to time the inclusionary unit base price for
purposes of determining in lieu fees based upon the cost to the
ci ty of sUbsidizing the construction of a new residential unit:
and
WHEREAS, the city Council finds that the average City
subsidy per unit for new construction projects of affordable
housing over the past three years is approximately $51,000;
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
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. . SECTION 1. The inclusionary unit base price for
determining in lieu fees pursuant to Santa Monica Municipal Code
Section 9426 is $51,000.
SECTION 2. The City Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
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Adopted and approved this 9th day of June, 1992.
I hereby certify that the foregoing Resolution No. 8414 (CCS)
was duly adopted by the City council of the city of Santa Monica
at a meeting thereof held on June 9, 1992 by the following
Council vote:
Ayes: Councilmembers: Abdo, Genser, Holbrook, Olsen,
Vazquez, Zane
Noes: Councilmembers: Katz
Abstain: Councilmembers: None
Absent: Councilmembers: None
ATTEST:
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