SR-8-B (66)
CA:BAR:rordsr.emg/wpfiles/pc
City Council Meeting 9-29-92
Y-8
SEP 2 9 1992
Santa Monica, California
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STAFF REPORT
TO: Mayor and City Council
FROM: City Attorney
SUBJECT: Ordinance Establishing a Moratorium on Multifamily
Residential Development with Certain Exemptions in
Order to Comply with Proposition R and Declaring the
Presence of an Emergency
BACKGROUND
On November 6, 1990, the voters of the city of Santa Monica
approved Proposition R which mandates that on an annual basis not
less than 30% of all multifamily res1dential housing newly
constructed in the City be permanently affordable to low and
moderate income households.
On March 3, 1992, the city Council adopted Ordinance Number
1615 (CCS) to meet the requirements of Proposition R.
On March 20, 1992, the Santa Monica Housing Council and Robert
J. Sullivan filed suit against the city, Santa Monica Housinq
Council, et al. v. City of Santa Monica, Los Angeles Superior Court
Case Number SC 016169, contending, in part, that the City had to
amend Program 12 of its Housing Element before adopting Ordinance
1615 (CCS).
On August 28, 1992, the Court found that the City's adoption
of Ordinance No. 1615 (CCS) without first amending Program 12 of
the City'S Housing Element violated state law.
On September 23, 1992, the Court entered judgment ordering the
City in relevant part to refrain from enforcement of ordinance 1615
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SEP 2 9 i992
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(CCS) until the city has amended its Houslng Element; to amend its
Housing Element to reflect the adoption of Proposition R, and, if
desired, Ordinance 1615 (CCS)i and pending the amending of the
Housing Element, to process projects under Program 12 or establish
a moratorium.
The city appealed the Court's September 23, 1992 judgment on
September 24, 1992. The appeal of the Court's judgment
automatically stays the judgment, preventing it from taking effect
pending the resolution of the appeal. However, Santa Monica
Housing Council and Robert J. Sullivan may ask the Court to lift
the stay of this judgment, thereby necessitating the need for this
ordinance.
PROPOSED ORDINANCE
This ordinance would establish a moratorium on multifamily
residential development with certain limited exemptions. This
ordinance, in large measure, parallels the moratorium ordinances
adopted by the City Council prior to its adoption of Ordinance 1615
(CCS) and contains the principal exemptions set forth in those
ordinances. However, the moratorium and exemption provisions of
this ordinance would only become operative should the judgment in
Santa Monica Housinq council, et al. v. City of Santa Monica become
effective or the City otherwise be prohibited from enforcing the
provisions of Ordinance 1615 (CCS) pursuant to any court order.
Pursuant to the Court's judgment, until the City amends its
Housing Element, the City is required to process projects under
Program 12 unless it establishes a moratorium. Simply processing
development projects pursuant to existing Program 12 provisions
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would not enable the City to meet the requirements of Proposition
R. Thus, should the stay of the Court's judgment be lifted, this
emergency moratorium is necessary so that the City will be able to
meet the mandate of Proposition R.
This ordinance will expire in forty-five (45) days.
RECOMMENDATION
It is respectfully recommended that the accompanying ordinance
be introduced and adopted.
PREPARED BY: Joseph Lawrence, Acting City Attorney
Barry Rosenbaum, Deputy City Attorney
CA:BAR:rord.emgjwpflles/pc
City Council Meeting 9-29-92
Santa Monlca, Californla
ORDINANCE NUMBERl649 (CCS)
(City council Serles)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ESTABLISHING A FORTY-FIVE DAY
MORATORIUM ON MULTIFAMILY RESIDENTIAL DEVELOPMENT WITH
CERTAIN EXEMPTIONS IN ORDER TO COMPLY WITH PROPOSITION R
AND DECLARING THE PRESENCE OF AN EMERGENCY
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTION 1. Findlnqs and purpose. The Clty Council finds and
declares:
(a) On November 6, 1990, the voters of the city of Santa
Mon1ca approved Proposition R, addlng Section 630 to the City
Charter to read as follows:
The City Council by Ordlnance shall at all
times require that not less than thlrty
percent (30%) of all mUltifamlly-resldential
housing newly constructed in the city on an
annual basis is permanently affordable to and
occupied
by
low
and
moderate
income
households.
For purposes of this section,
"low income household" means a household with
an income not exceedlng sixty percent (60%) of
the Los Angeles County median income, adjusted
by family size, as publlshed from time to time
by the United States Department of Housing and
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Urban Development, and "moderate lncome
household" means a household with an income
not exceedlng one hundred percent (100%) of
the Los Angeles County medlan income, adJusted
by family size, as publlshed from time to time
by the United States Department of Housing and
Urban Development. At least fifty percent
(50%) of the newly constructed units required
to be permanently affordable by this section
shall be affordable to and occupled by low
income households.
(b) On March 3, 1992, the City Councll adopted Ordinance
Number 1615 (CCS) specifically to meet the requirements of
Propos1tion R.
(c) On March 20, 1992, the Santa Monica Housing council and
Robert J. Sulllvan flIed SUlt against the city, Santa Monica
Housinq council f et al. v. Cl ty of Santa Monica, Los Angeles
Superior Court Case Number SC 016169, contending, in part, that the
city had to amend Program 12 of its Housing Element before adopting
Ordlnance 1615 (CCS).
(d) On August 28, 1992, the Court found that the City's
adoptlon of Ordinance No. 1615 (CCS) without first amending Program
l2 of the C1ty's Housing Element vlolated state law.
(e) On August 31, 1992, the city sent a rev1sed Housing
Element to the California Department of Housing and Community
Development ("HCD") for its reVlew.
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(f) This document contains additions and revlsions prepared
in response to comments made by HCD to an earlier verSlon of the
Clty's revlsed Housing Element submitted to HCD by the city. The
August 31, 1992 document also updates the Housing Element to
reflect changes in City ordlnances and population and income data
from the 1990 census. The revised Housing Element contalns a
descript10n of the passage of Propositlon R and its implementatlon
through adoption of Ordinance 1615. There is no confllct between
the revised Houslng Element sent to HCD on August 31, 1992 and the
provisions of Ordinance 1615.
(g) The California Department of Houslng and Community
Development has forty-five days to report is wrltten findings to
the Clty. After these findings are received, the revlsed Houslng
Element will be revlewed by the Santa Monica Plannlng Commisslon
and the Santa Monica city Councll prlor to final adoptlon.
(h) On September 23, 1992, the Court entered Judgment
orderlng the City ln relevant part to refrain from enforcement of
Ordinance 1615 (CCS) untll the Clty has amended lts Houslng
Element; to amend its Housing Element to reflect the adoptlon of
Proposition R, and, if deslred, Ordinance No. 1615 (CCS); and
pending the amending of the Housing Element, to process projects
under Program 12 or establlsh a moratorium.
(i) The City appealed the Court's September 23, 1992 judgment
on September 24, 1992.
(j) The city's appeal of the Court's judgment automatically
stays the judgment, preventing the judgment from being effective
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pending the resolutlon of the appeal.
(k) Santa Monlca Housing council and Robert J. Sulllvan may
ask the Court to llft the stay pursuant to Code of civil Procedure
Section 1110b.
(I) Should the stay be lifted, this ordinance lS necessary to
enable the Clty to meet the requlrements of Proposltlon R.
Proposition R mandates that on an annual baS1S not less than 30% of
all multifamily resldentlal houslng newly constructed in the city
be permanently affordable to low and moderate income households.
Historically I multifamily residential housing developed in the City
falls far short of thls 30% requlrement. slmply processing
development projects pursuant to the existing Program 12 provisions
would not enable the Clty to meet the requirements of Propositlon
R. Thus, thlS emergency ~oratorium must be adopted so that the
City will be able to meet the mandate of Proposltion R.
(m) Given that the City would not be able to meet the
obligations of Proposition R should the stay be llfted and this
ordinance not be enacted, there IS a current and immediate threat
to the public heal thl safety, or welfare of the Cl ty. The
processing of tentative tract maps, tentatlve parcel maps, use
permits, variances, building permits or other City permits for
mUlti-family residential development contrary to the terms of this
ordinance would also result ln a threat to public health, safety,
or welfare.
(n) This ordlnance is adopted in conformity wlth Santa Monica
Munlcipal Code Section 9120.6.
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SECTION 2. Applicabllity.
The provislons of Sectlons 3 and 4 of thlS ordinance shall
become lmmediately operative the date that any of the following
events occur:
(a) The stay of the judgment in Santa Monica Houslnq Council,
et al. v. city of Santa Monlca, Los Angeles Superlor Court Case
Number SC 016 169 ~s lifted pursuant to the provlslons of Code of
civil Procedure Section 1110b or the Judgment otherwise becomes
effective.
(b) The Clty is prohlb~ted from enforclng the provlslons of
Ordinance 1615 (CCS) pursuant to any court order.
SECTION 3. Moratorium.
(a) subject to the exemptions set forth in section 4 of this
Ordinance, a moratorium lS hereby placed on the acceptance for
processing of any appllcations for approval of tentative tract
maps, tentative parcel maps, adminlstrative approvals, development
reVlew permits, condltlonal use permits, or any other City permits
for the erection, constructlon, mov1ng, and excavation and grading
for, any multi-family residential building or structure.
(b) subject to the exemptions set forth ln section 4 of this
Ordinance, the Planning Commisslon and City staff are hereby
directed to disapprove all applications for approval of tentative
tract maps, tentative parcel maps, administrative approvals,
development review perm~ts, conditional use permits, or any other
Clty permits for the erection, construction, moving, and excavation
and grading for, any multl-famlly residential bUlldlng or
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structure.
SECTION 4. Exemptions. The following applications are exempt
from the provlsions of Sectlon 3 of thlS Ordinance:
(a) Appllcatlons for approval of permits involving the
erection, constructlon, enlargement, demolition, or moving of, and
excavation and grading for any multiple dwelllng development
intended for rental housing for persons of low and moderate income
or for senior citlzens, and WhlCh development is financed by any
federal, state or Clty houslng assistance program or owned by any
non-profit organization, provlded a deed restriction lS recorded
restrictlng the development to such purpose.
(b) Applications for approval of permits lnvolving the
erection, construction, and excavatlon and grading for any multiple
dwelling development that has already obtalned a vesting tentative
map from the Clty that has not subsequently explred.
(c) Appllcations for approval of permits lnvolving the
construction and excavatlon and grading for, projects where the
followlng requlrements are met:
(1) The appllcant proposes that thirty percent
(30%) of the total number unlts to be constructed on slte by the
applicant, excluding any denslty bonus units the applicant is
entitled to under Government Code Sectlon 65915, shall be
permanently affordable to and occupled by low and moderate income
households as provlded for in thlS subsectlon.
(2) For purposes of this subsectlon, "low income
household" means a household wlth an lncome not exceeding sixty
6
percent (60%) of the Los Angeles County median income, adjusted by
family size, as publlshed from time to time by the United states
Department of Houslng and Urban Development, and IImoderate income
household" means a household with an lncome not exceeding one
hundred percent (100%) of the Los Angeles County median income,
adjusted by family size, as published from tlme to time by the
United states Department of Houslng and Urban Development.
(3) At least fifty percent (50%) of the newly
constructed units required to be permanently affordable by this
subsection shall be affordable to and occupied by low lncome
households.
(4) In determining the number of lnclusionary units
required, any declmal fraction less than 0.5 shall be rounded down
to the nearest whole number, and any deClmal fraction of 0.5 or
more shall be rounded up to the nearest whole number. However, ln
determlnlng the number of low lncome lncluslonary units required,
any decimal fract1.on less than 0.5 shall be rounded up to the
nearest whole number.
(5) At the time of flling an application with the
City's Planning Department for permission to develop mUlti-family
market rate dwelling un1.ts, the developer shall specify the number,
type, location, size, and construction schedule of all dwelling
unlts proposed to be developed and shall indicate which of the
dwelling units, if any, are lntended to satisfy the inclusionary
houslng requirements of this Chapter.
(6) If located on the proJect site, incluslonary
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unlts shall, whenever reasonably possible, be evenly distributed
throughout the proJect. The applicant may reduce elther the size
or lnterior amenltles of the inclusionary units as long as there
are not significant ~dentlflable differences between lncluslonary
and market rate units visible from the exterior of the units and
the size and design of the units are reasonably cons1stent with the
market rate units in the proJect, provided that all units confirm
to the requirements of the appllcable BUllding and Housing Codes.
Inclusionary units provided shall have at least the same number of
bedrooms as the average unlt in the proJect and 1f the floor area
of the lnclusionary units lS not the same as the floor area of the
market rate units at the project, each of the lnclusionary units
shall satisfy the following minlmum total floor area, depending
upon the number of bedrooms provided:
0 Bedroom 500 Square Feet
1 Bedroom 600 Square Feet
2 Bedrooms 850 Square Feet
3 Bedrooms 1080 Square Feet
4 Bedrooms 1200 Square Feet
(7) All lncluslonary units in a project or a phase
of a project shall be constructed concurrently with the
construction of market rate units in the proJect or phase of that
project.
(8) Incluslonary units developed on the proJect
site must be rental units in rental or ownership proJects.
(9) The City shall, on an annual basis, set maximum
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allowable rents for 1nclusionary un1ts, adjusted by the number of
bedrooms. Such maximum allowable rents shall be set at rates such
that qualified occupants for low income unlts pay no more than
thirty percent (30%) of the gross monthly household income for
households earnlng 60% of the medlan income. Qualified occupants
for moderate 1ncome units shall pay no more than 30% of the gross
household income for households earnlng the median income. The
owner of each lncluslonary unit shall retain discretion ln the
selection of eligible renters for that unit, prov1ded that such
renters meet the requlrements of Subsections (c) (10)-(c) (12) of
thlS Section.
(10) Only low and moderate income households shall
be eligible to occupy inclusionary units. The City may establlsh
admlnistratlve guidellnes for determining household income, minimum
and maX1mum occupancy standards and other compatible eligibility
criteria. The City Councll may, by resolution, approve a tenant
certiflcation process with WhlCh a project applicant subject to
thls Chapter shall be required to comply.
(11) The following indivlduals, by virtue of their
positlon or relationship, are ineligible to occupy an affordable
unit:
(1) All employees and offlcials of the city of
Santa Monica or lts agenCles, authorities, or commissions who have,
by the authority of thelr positlon, policy-making authority or
influence affecting City housing programs.
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(11) The lmmedlate relatlves, employees, or
other persons gaining significant economic benefit from a direct
bUSlness associatlon with public employees or officials.
(iii) The immediate relatives of the applicant
or owner, including spouse, children, parents, grandparents,
brother, sister, father-in-law, mother-in-law, son-in-law,
daughter-ln-Iaw, aunt, uncle, niece, nephew, sister-in-law, and
brother-in-law.
(12) In settlng priori ties among eligible
households, flrst prlorlty shall be given to Santa Monlca
resldents, second priorlty to persons employed in Santa Monica, and
third priority to other persons.
(13) Prior to the lssuance of a building permit for
a proJect exempt under thlS subsectlon, the appllcant shall submit
deed restrictlons or other legal instruments settlng forth the
obligations of the applicant under this subsection for Clty review
and approval. Such restrlctlons shall be effective for the
llfetime of the project.
(14) The requirements of this subsection shall be
made condltions to the approval of any application filed pursuant
to this subsectlon.
(d) Applications for approval of permits lnvolving the
rehabilltation or enlargement of existlng dwelllng units.
SECTION 5. This ordinance shall be of no further force and
effect forty-five days from its adoption.
SECTION 6. This ordinance 1S declared to be an urgency
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measure adopted pursuant to the provlsions of section 615 of the
Santa Monica Clty Charter. It lS necessary for preservlng the
public peace, health and safety, and the urgency of lts adoption is
set forth in the find~ngs above.
SECTION 7. Any provision of the Santa Monlca Municipal Code
or append lees thereto inconslstent wlth the provlslons of thls
Ordlnance, to the extent of such inconslstencles and not further,
are hereby repealed or modified to that extent necessary to affect
the provisions of this Ordinance.
SECTION 8. If any sectlon, subsectlon, sentence, clause, or
phrase of thlS Ordlnance is for any reason held to be invalid or
unconsti tutional by a declslon of any court of any competent
]urlsdictlon, such decision shall not affect the valldity of the
rema~nlng portlons of thlS Ordinance. The city council hereby
declares that lt would have passed this ordinance, and each and
every section, subsection, sentence, clause, or phrase not declared
invalid or unconstltutional without regard to whether any portion
of the Ordlnance would be subsequently declared invalid or
unconstltutional.
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SECTION 9.
The Mayor shall s1gn and the city Clerk shall
attest to the passage of thlS Ordinance.
The Clty Clerk shall
cause the same to be publlshed once in the official newspaper
wlthin 15 days after its adoption. This Ordlnance shall become
effective upon adoption.
APPROVED AS TO FORM:
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\. J
J11"sEPH LAWRENCE
Actlng City Attorney
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Adopted and approved this 29th day of September, 1992.
I hereby certify that the foregoing Ordinance No. 1649(CCS)
was duly and regularly introduced at a meeting of the city
council on the 29th day of September 1992; that the said
Ordinance was thereafter duly adopted at a meeting of the city
Council on the 29th day of september 1992 by the following
council vote:
Ayes: Councilmerobers: Abdo, Genser, Olsen, Vazquez,
Zane
Noes: Councilmembers: Katz
Abstain: Councilmembers: None
Absent: Councilmembers: Holbrook
ATTEST:
LIA~
~ ~ city Clerk (