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SR-8-B (83) ~ ~:llft'1 Rfl MAY 2 Mil f \atty\mum\strpts\mjm\morarpt sr City Council Meetmg 5-25-99 Santa MOnlca, California TO Mayor and City Council FROM City Attorney SUBJECT An Interim Emergency Ordinance of the City Council of the City of Santa MOnica Enacting A MoratOrium on Multi-family ReSidential Development In the City's Multi-family ReSidential Dlstncts Introduction The City Council has directed staff to draft an emergency ordinance which would establish a temporary moratonum on development In the City's multi-family reSidential districts so that the status quo may be maintained while the City promptly evaluates Its options for preserving the City's character, diversity, and quality of life In this time of radical change The proposed ordinance responds to that direction See Ex A The proposed emergency ordmance would place a temporary moratorium on the acceptance of applications for permits to bUild condominiums and apartments In the City'S multi-family dlstncts subject to lImited exceptIons Staff recommends that the CounCil adopt the proposed emergency ordInance Background In the last SIX months, City reSidents have appeared before the City CounCil on several occasions to express concerns about the City's future They expressed the fear that 1 MAY 2 5 199 88 rampant change IS threatening the character and diversity of the City and that, unless such change IS recognized and managed, It Will Imperii the CIty's welfare and quality of life The resIdents noted and explained a number of speCIfic issues whIch contnbuted to theIr overall concerns One major Issue IS the loss of affordable housing Units and an attendant loss of economic and social diversity Another major Issue IS the loss of older structures which have been a hallmark of the City's aesthetIc make up for decades In particular, speakers expressed their fear that apartments bUilt In a style that promotes human mteractlon are being replaced with monolithic structures The loss of courtyard style apartments was a speCific concern Speakers also complained that the high volume of construction ongoing In the City IS negatively Impacting their quality of life They noted that construction Impedes traffic Circulation, causes a great deal of nOise, and Impairs neighborhood aesthetics Additionally, speakers noted that bUilding and rebuilding In the residential neighborhoods Interferes wIth pedestrian enjoyment of CIty streets The speakers asked the Council to take action to manage the change which IS occurring In the CIty In general and In the multi-family neighborhoods In particular DiSCUSSion In response to the CouncIl's dIrectIon, staff has assessed the changes occurring In the multi-family neighborhoods Staffs analysIs substantiates reSidents' complamts. 2 There has been a drastic decline In the number of affordable housing units Within the City Statistical information compiled by Rent Control staff shows that between January 1 and March 31, 1999, nine hundred and fifteen (915) vacancy registrations have been processed by the Rent Control Board See Ex 8 These registration forms set forth the new rent levels for Units decontrolled by the Costa-Hawkins Rental Housing Act of 1995 ('"Costa-Hawkins") The vacancy rent Increases have resulted In the loss of 582 umts affordable to low I ncome households It IS projected that as a result of Costa-Hawkms, the City could lose 10% of Its affordable housmg stock thiS year alone ThiS loss of affordable Units will mevltably Impact the economiC and SOCial diverSity which have long been valued as definIng characterrstlcs of thiS City It may also Impact the City's ability to meet state gUidelines for the provIsion of affordable hOUSing Staffs review also substantiates reSidents' complaints about construction In the multi-family dlstncts Over the last five years there has been a Significant Increase In multi-unit constructIon For Instance between 1996 and 1997, the number of multI-family Units approved for constructIon almost tnpled ThIS year's figure WIll be substantially hlg her than last years See Ex C In summary, there has been a slgmficant Increase In the amount of construction occurnng m the multi-family neIghborhoods Moreover, the vast majonty of new, pnvately bUilt units are for upper Income mdlvlduals See Ex D Only a very small number of newly constructed units are affordable to those IndiVIduals or families With very low or low Incomes 3 These realitIes -- the loss of affordable Units and slgnrflcant Increase In multr-famlly construction -- probably reflect the confluence of two major events the passage of Costa- Hawkins and the boom In our local economy which Includes soanng land values These events combine to sweep the City Into a period of accelerated change The CIty anticipated that Costa HawkIns would bring change That was one ofthe reasons that the City amended Its Housing Element last year However, the full Impacts of the change could not be predicted with certainty. Nor could the options that would be available for managing thIs change to ensure the CIty's long-term welfare In January of this year, after the Housing Element was revIsed, the state gave cities a new option for meetmg affordable housing requirements Under that option, Cities can "count" rehabilitated Units toward their fair share requirements under certain conditions However, the new law which permIts countmg rehabilitated Units IS very complicated. For thiS reason, and others, It IS difficult to tell whether thiS new opportunity WIll serve the City well Nevertheless, thiS option should be assessed because It may afford the City a new possibility for satisfYing Its affordable housing needs m a manner most consistent wIth Its strong commItment to neighborhood preservation A temporary moratorium would allow time to assess thiS option and others for meetmg the City'S need to preserve Its character, diverSity, and quafityoflife while continuing to provide adequate affordable housing The attached emergency ordInance would Impose a temporary moratorium on applicatIons for permits to bUild condominiums and apartments In the multI-family dlstncts Two classes of applications would be exempted (1) those for 4 permits to bUild projects on vacant sites or projects replacing single family homes, and (2) applications to bUild wholly affordable projects. The latter exemption IS suggested as consistent With the purposes of the moratorlU m The former IS suggested to safeguard the ordinance from legal challenge If adopted, the proposed ordmance would be m effect for forty-five days Pnor to the end of that period, staff Will make recommendatlons as to the length of any extension needed to evaluate possible changes m City law or policy In general, staff Intends to propose the shortest possIble moratorium period consIstent WIth the CIty's needs The proposed emergency ordinance would take effect on the date of Its adoption Staff does not recommend retroactive appllcatlon because of possible legal challenges However, If the CounCil determmes that retroactivity IS necessary to safeguard the City's welfare, staff recommends that CounCIl consIder adopting a hardshIp exceptIon Fiscal and Budgetary Impact There IS no direct fiscal and budgetary Impact because the ordmance's duration IS only 45 days 5 Recommendation Staff recommends that the CouncIl adopt the proposed interim emergency ordinance. PREPARED BY Marsha Jones Moutne, City Attorney Bany Rosenbaum, Senior Land Use Attorney Claudia Thompson, Legal Admm Staff AssIstant EXHIBITS A Proposed Emergency Ordinance B Rent Control Board Memorandum Regarding Impact of Market Rate VacancIes Since January 1, 1999 C Santa MOnica ReSIdential Development D' Affordablllty of ReSIdential Development BUilt by Private Developers 6 EXHIBIT A f \atty\munI\laws\mjm\moratora 3 wpd City Council Meeting 5-25-99 Santa MOnica, California ORDINANCE NUMBER (CCS) (City Council Series) AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ENACTING A MORATORIUM ON MULTI-FAMILY RESIDENTIAL DEVELOPMENT IN THE CITY'S MULTI-FAMILY RESIDENTIAL DISTRICTS, DECLARING THE PRESENCE OF AN EMERGENCY THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS SECTION 1 FindIngs and Purpose The CouncIl finds and declares (a) Drastic changes In state law and the local economy have propelled the CIty to a crossroad In Its hIstory at which the CIty must now pause to ensure that Its land use laws and poliCies are adequate to ensure Its future welfare (b) The gravIty of thiS situation IS greatly Intensified by the fact that Santa MOnica has much to lose Located at the western edge ofthe Los Angeles basin, the City affords a unique combination of natural splendors -- broad beaches, stunning Views, mild weather and clean air -- together with sophisticated urban amemtles and a community scale that respects both the natural environment and individual needs All this eXists in a very small space -- just eight square miles (c) In that small space, the City teams With activIty It IS home to 90,000 reSidents, and Its population density, 11,200 persons per square mile, IS the highest among coastal 1 communItIes In Los Angeles County Santa MOnica IS also the workplace for approxImately 155.000 workers and a destinatIon for as many as 400,000 daily VISItorS Thus, extreme density complicates planning efforts and makes preservation of the quality of1lfe a difficult challenge (d) Moreover, plannmg drfflcultles are exacerbated by the fact that the City IS fully bUilt-out and has been so for decades As of November 1995, there were only sixty-two (62) vacant residential parcels out of approximately 6, 132 multi-family zoned parcels m the entire CIty Since then, even this limited number of vacant parcels has shrunk Thus, plannmg flexIbIlity IS limited by the reality that resIdentIal development In the City'S reSIdentIal dIstricts means change -- not expansIon -- and Virtually any new project or constructIon replaces an eXisting structure or Improvement (e) Planning dIfficulties are most acute In the multi-family districts which are the largest and densest In the City Santa MOnica has the highest percentage of land zoned multi-family residential among westslde/south bay JUriSdictions PermItted denSities In these zones range from approximately 29 units to approxImately 48 units per acre As a result of these standards, the vast majority of CIty reSidents live In multi-family dwellings Most of them live In the City's 37,000 apartment umts (f) In the past, the dynamic created by competing demands for use of a small, choIce space has brought the CIty to crossroads on other occasIons In the late 1970's, the CIty faced a severe shortage of rental housIng precipItated In part by a "Demolition Derby" -- a fifteen (15) month period dUring which over 1,300 rental housmg Units were demolished and hundreds of others were converted mto condominiums These housing ., umts were removed from the market at ten (10) times the rate of removal (relatIve to population) of Los Angeles (g) The City Council wrestled wIth the policy Issues raised by the Demolition Derby but could not resolve them. So the voters took control They amended the City Charter by adoptIng a stnngent Rent Control Law The law Imposed stnct controls on rents, whIch applied even when units were vacated, and restricted the demolition or conversion of controlled Units Legal challenges ensued, but the courts upheld the law as a legitimate exerCise of the City's police power to proVide for the health, safety and welfare of its reSidents (h) The Rent Control Law had the effect of limItIng change In the multi-family areas of the City In the years follOWing Its adoption of the Rent Control Law, the City maintained a stable and diverse residential population, and the multi-family neighborhoods retained their basIc character and scale Most structures In these neighborhoods are one or two stories high Many have gardens, lawns or courtyards. Thus, despite their density, these neIghborhoods retamed a unIque sense of space, greenery and light condUCIve to human mteractlon and qUietude The streets In the residential neighborhoods were "pedestrian friendly" A City survey showed that walking became City reSidents' favonte recreational actIVIty (J) MeanwhIle, In the years follOWing the adoption of the Rent Control Law, the rest of the CIty developed and changed rapidly In the SIngle famIly dIstricts, hOUSing pnces skyrocketed By the early 1980's even older, very small homes In the R-1 District were selling for $250,000 or more Prices dipped In the early 1990's, and shot upwards again, 3 makmg It vlrtlJaJly Impossible for low or moderate mcome families to purchase homes In the R-1 District (j) At the same time, the numbers of workers coming to the City each day swelled as multi-story office parks were bUilt In the central city Moreover, commuter numbers Will Increase dramatically as new multi-story office bUlldmgs are completed during the next two years Additionally, as the City shifted Its revenue base to hotel taxes, many large new hotels were bUilt, and the City became an Internationally acclaimed vacation spot hostmg approximately 2,355,000 VISItorS In 1997 (k) Thus, the City boomed and became ncher and more crowded, but the multi- famIly reSIdential neIghborhoods remained relatIvely qUiet and stable consldenng theIr density AccordIngly. for years, a balance was struck between resIdential and commerCIal Interests whIch preserved the character of the City's multi-family reSidentIal neighborhoods but allowed the City to f10unsh economically (I) In 1994, natural disaster swept the City mto a period of transition On January 17th, the City suffered Widespread damage to both Its residential and commerCial dlstncts as a result of the Northndge earthquake The earthquake rendered approXImately 3,100 dwelling Units un Inhabitable and damaged thousands of other propertIes thus necessltatmg substantial rebUlldmg However, the balanCing of residential and commerCial Interest remamed unchanged (m) Recent changes In state law destroyed thIS balance In 1996, m response to Intense lobbymg efforts by landlords and real estate developers, the State LegIslature drastically restncted local control of housing policy by adopting the Costa-Hawkms Rental Housmg Act of 1995 ("Costa-Hawkms") Costa-HawkinS weakens local rent control by 4 phasing In mandatory vacancy decontrol, which became fully effective In January of this year This Signaled the end of local rent control as It had eXisted for almost twenty years In Santa Monica It also threw the commumty Into a period of extreme uncertamty as the potential for radIcal change loomed large en) Costa-Hawkins has already had a dramatIc Impact on the CIty's housing stock Between January 1 and March 31, 1999. nine hundred and fifteen (915) vacancy registrations have been processed by the Rent Control Board These registration forms set forth the new rent for units decontrolled by Costa-Hawkms The vacancy Increases have resulted In the loss of 582 umts affordable to low Income households If vacancy registratIons contm ue to be flIed at the same rate, It IS estimated that almost 2400 unIts that had been affordable to low Income households wIll be lost ThiS figure represents, In one year, a CitYWide loss of approximately 10% of the umts that had been affordable to low Income households (0) ThIS loss of affordablIlty has a number of senous repercussIons At a time when the demand for affordable housing already exceeds supply, the addItIonal loss of affordable housing WIll only serve to exacerbate thIS problem Low Income households Will face almost Insurmountable odds In secunng affordable housIng and such housing Will not be available to new low Income households seeking to move Into the City IndIViduals presently working In the City WIll find It increasingly d!fflcult to find affordable hOUSIng The new Jobs that WIll be created by the additional commercIal development ongoing In the City Will only serve to aggravate thiS housmg cnsls by generating addItional demands on thiS limited supply of housmg The result w!l1 be that these workers Will be forced to live In more distant communities and commute to Santa MOnica ThiS trend Will add to the already 5 heavy burden on the regIon's congested streets and overtaxed transportation system The loss ofthfS housing will also result In Increased over-crowdmg for those mdlvlduals who are unable to secure larger affordable Units as their need for such units develop (p) At the same time as Costa-Hawkins was phaSing In, the City was experiencing a time of unprecedented economIc boom Land values were skyrocketing again In the single famIly neighborhoods, small lots sold for sums ranging from hundreds of thousands of dollars to a million or more Modest forty-year old homes sold for as much as half a million dollars The burgeOning economy Impacted the multi-family development as well Between 1996 and 1997, the number of multi-family hOUSing units approved for constructIon almost tnpled Prior to that tIme, the three year average was under 80 new unIts per year In 1997 the number jumped to 234 (excludIng one enormous and hIghly unusual project of 351 Units) (q) Along with the economic boom and acceleration In bUilding came a dramatic shift In demographics The vast maJonty of new, privately bUilt Units were for upper Income purchasers These new hOUSing developments have committed scarce land resources to providing luxury hOUSing which IS unaffordable to most reSidents of the City Moreover, market conditIons, including the high cost of reSidential land, construction costs, and the availabIlity and cost of finanCing, make the development of affordable housmg In the City extremely difficult (r) These trends are conbnulng Plannrng approvals for multI-famIly constructIon Will substantially exceed the rate approved last year Accelerated development Impacts the City as a whole and also Impact the dally lives of reSidents who must cope WIth the nOise and Interference caused by construction undertaken In a crowded, fully developed 6 community ConstructIon materials and eqUIpment are often placed In the roadway and/or on sidewalks, thereby obstructmg both vehicular and pedestnan traffic NeIghborhood aesthetics suffer (s) ThIS construction boom Will likely continue A significant amount of the City's reSidential housing stock was bUilt pnor to the 1960's Parcels developed with older structures tend to be developed at densities and heights that are lower than what IS currently allowed by zOning Given these conditions and the booming economy, there IS a high likelihood that a significant amount of construction Will occur In the City wIth ItS attendant disruption to residents' peace and qUiet enjoyment (t) The redevelopment of these currently underdeveloped propertIes at greater heIght and densitIes would also result In the loss of vIews and light and could pose a threat to the eXisting character of neighborhoods and the City's unique natural environment (u) There IS also a significant shortage of reasonably available and convenient parking spaces In these residential districts ThiS IS demonstrated In part by the large number of preferential parking districts that have been established by the City and the continued demand for the creation of new preferential parking districts Given the growing affluence of the community, Increased development may exacerbate an already unacceptable level of parkmg problems (v) In order to address the changes resultmg from Costa-Hawkms and from the economiC boom, In part, the CIty undertook a reVISIon of Its hOUSing polrcles through the process of amendmg the City's HOUSing Element ThIS was a difficult process State HOUSing Element law purports to require Cities to continually proVide new hOUSing However, Santa MOnica IS fully bUilt out and committed to neighborhood preservation 7 Despite this problem and an additional problem caused by the State's failure to supply RHNA numbers, Santa MOnica completed the amendment process last summer, and the State approved Its amendment The Housmg Element establishes the CIty'S fair share at 3,219 housing umts and Its quantified objectIve at 1,542 housing umts These objectives are based exclusIvely on the construction of new housing (w) After the City completed reVISions, the State again changed the law This time, the State amended the HousIng Element law to allow cIties to count rehabIlitated unIts In meeting their "faIr share" of hOUSing opportunities ThIs change has major SIgnifIcance for Santa MOnica because the City has an aging housmg stock and a strong commitment to neighborhood preservation Accordingly, consistent With local poliCies favonng preservation, the City needs the opportunity to evaluate whether this change m state law affords new opportunltles for the City to fulfI1Ilts own goals This process will take some time because the state law which allows the counting of rehabIlitated units IS complicated and diffIcult to utilize (x) Maintaining the unique character of Santa MOnica's neighborhoods IS Important for many reasons FIrst, City reSidents value their neighborhoods The preservation of neighborhoods promote a sense of place and loyalty from reSidents It proVides reSidents with qUiet enjoyment In their homes and a community which eXists on a pedestnan friendly scale DeSign and development standards which are senSitive to eXisting neighborhood condItions can further environmental and SOCial goals Preservation of eXIstIng neIghborhoods can serve to mamtam the CIty's supply of affordable hOUSing and Its architectural diverSity Meanwhile, workers need good traffiC Circulation, adequate parking and perhaps even places to live Tounsts expect to recreate In an aesthetically appealing 8 community whIch combInes entertainment opportunities with small town warmth and charm (y) The City must address the very difficult question of how to balance these competing demands and fulfill Its legal responsIbility to provide affordable housing m new ways The method which worked for twenty years has been eViscerated by State action Time IS needed to expeditiously evaluate the new option for rehabilitation supplied by state law, (z) For the reasons detaIled, the continUIng development of multI-family hOUSing In the CJty's resIdentIal zones pnor to the comprehensIve revIew of the City's hOUSIng and land use poliCies and regulations presents a current and Immediate threat to the public peace, health, safety, and welfare If urgent action IS not taken, IrreverSible development activity will continue unabated, thereby committing scarce land resources to development that IS not In the best Interests of the reSidents of the City The approval of additional multi-family hOUSing development In the City's multi-family hOUSing districtS, with limited exception, pending the City's reView of ItS housmg and land use policies and regulations would result In a threat to the public health, safety, and welfare SECTION 2 MoratOrium Subject to the exemptions set forth In Section 3 of this Ordinance, a moratorium IS hereby placed on the acceptance for processing of any applications for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, and condItional use permits, for any resIdential bUilding or structure, mcludlng any hotel or motel, on propertIes located In multI-famIly residential dlstncts In the City For purposes ofthJS Ordmance, the multi-famIly residential 9 dlstncts In the City are R2R, R2, R3, R4, RVC, RMH, OPDuplex, OP2, OP3, OP4, NWOverlay, R2B, and R3R SECTION 3 Exemptions The follOWing app\1catlons are exempt from the provIsions of Section 2 of thiS Ordinance (a) ApplicatIons for approval of permits involVing the erection, construction, enlargement, demolition or moving of, and excavation and grading for any multiple dwellmg development mtended for rental housing for persons of low and moderate Income and which development IS financed by any federal, state or City hOUSing assistance program or owned by any non-profit organization, proVided the Director of Plannmg determines that such development IS In conformance With the General Plan and the Zomng Ordinance and proVIded a deed restnctlon IS recorded restnctlng the development to such purpose (b) Applications for approval of permits Involvmg the erection, construction, enlargement of, and excavatIon and grading for, prOjects whIch replace smgle-famlly homes or whIch Will be developed on sItes that were vacant as of May 25, 1999 SECTION 4 ThIS ordinance IS declared to be an urgency measure adopted pursuant to the proVISIon of SectIon 615 of the Santa Monica City Charter As set forth In the fmdlngs above, thiS ordmance IS necessary for preserving the publiC peace, health, safety, and welfare 10 SECTION 5 This Ordinance shall be of no further force and effect forty-five (45) days from the date of Its adoption, unless pnor to that date, after a public heanng, noticed pursuant to Santa Monica MUnicipal Code Section 9 04 20 22 050, the City Council, by maJonty vote, extends thIs Intenm Ordinance SECTION 6 Any provIsion of the Santa MOnica Municipal Code or appendices thereto Inconsistent 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 this Ordmance SECTION 7 If any section, subsection, sentence, clause, or phrase of this Ordinance IS for any reason held to be Invalid or unconstitutional by a deCISion of any court of competent Junsdlctlon, 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 invalId or unconstitutIonal WIthout regard to whether any portIon of the ordInance would be subsequently declared invalId or unconstItutIonal SECTION 8 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 11 newspaper wlthm 15 days after Its adoption This Ordmance shall become effective upon Its adoptIon APPROVED AS TO FORM MARSHA JONES MOUTRIE CIty Attorney 12 EXHIBIT B SANTA MONICA RENT CONTROL BOARD ADMINISTRATION MEMORANDUM DATE: April 13, 1999 TO: Rent Control Commissioners FROM: STAFF FOR BOARD MEETING OF: April 15, 1999 RE' Impact of Market Rate Vacancies Since January 1, 1999 Summarv On January 1, 1999 the full extent of vacancy decontrol-recontrol began to take effect, as owners may now raise the rents on vacant units to market rate. Between January 1 and March 31, 1999, 1,034 vacancy Increases (X- registrations) have been filed, 915 (88%) of those have been processed, including five units on which two X-registrations have been filed The impact of the increases on rents and tenants is explored below. Vacancy increases on these 910 units resulted In the loss of 582 units affordable to low income households (80% of median income) Including 398 units affordable to very low income households (60% of median income) units and 162 units affordable to very low income households (50% of median Income), In other words. 64% of the vacancy increases resulted in units which previously were affordable at 80% of median income becoming affordable only to households whose income IS 100% of median or higher. Affordable units were lost at eVf;ry affordablllty level and f;)very bedroom size, ThiS report projects that if vacancy registrations continue to be filed at the same rate. there will be an affordability loss in 1999 of 2.359 units that had been affordable at 80% of median on December 31. 1998. That is a cItywide loss in one year alone of lOOk of the unIts affordable to a household making 80% of median income or less. Note. It is possible that the vacancy increases filed to date may not be an accurate depiction of the current market. There are indications that some owners are holding off on renting vacant unIts while they determine what rents the market will support Therefore. it should be understood that the rent levels in thiS report are preliminary findings because they are based on data that may not be representative Market Rent Report -- 4/13/99 Rent Increase$ This report analyzes the 910 units that received vacancy Increases between January 1 and March 31. 1999, It compares these units to units of the CIty as a whole. and detalls the impact of those increases on rents and affordability . The chart below summarizes median rent Information. Vacancy Increases 1/1 - 3/31/99 (910 unifs) Citywide Pre- Post (28.296 units) Increase -Increase Dollar 12/31/98 No. of Median Median Amount % Median Bedrooms MAR's MAR'$ Chanae Change MAR'S 0 $553 $775 $??? 40% $f:04 1 6.:0 1 ,OOJ 370 Eft 5S6 2 772 1.397 tJ25 81 7ED 3 or more 991 1.890 m 91 93J Q-Bedroom Units: For the 114 G-bedroom units receiving a market increase, the median pre- increase MAR was $553 - somewhat higher than for the city as a whole The median of the increased rents is $775. The change between the pre- increase and post-increase medians is $222. an Increase of 40% l-Bedroom Units: For the 510 1-bedroom market rent units, the median pre-increase MAR was 5630. The median of the Increased rents is S 1,000. The change between the pre-increase and post-Increase medians is $370. an increase of 59%. 2-Bedroom Units: The median pre-increase MAR for the 254 2-bedroom market rent units was $772. The median of the increased rents is $1,397. The change between the pre-increase and post-increase medians is $625, an increase of 81 %. 3 or more- Bedroom Units: The median pre-increase MAR for the 32 market rent units wIth 3 or more bedrooms was $991, The medIan of the increased rents is $1,890. The change between the pre-increase and post-Increase medians is $899. an increase of 91%. Market Rent Report -- 4113199 2 The pre-increase MAR's of the 910 units with vacancy increases were significantly higher than median rents citywide. One reason may be that a larger proportion of these units hod receIved pnor Costa-Hawkins increases between 1995 and 1999. Approximately 1 ~o of units citywide have had one prior Costa-Hawkins increase and 7% have had two Costa-Hawkins Increases By contrast 27% of the 910 units with market vacancy increases had one prior Costa- Hawkins increase and 17% had two prior Costa-Hawkins increases. Affordabilifv The impact of the market rate increases is particularly meaningful when placed in the perspective of affordabllity, one of the most important factors affected by the recent increases. In the first 76 years of rent control, the stability provided by vacancy controls resulted in a large percentage of units that were affordable to households with a wide range of incomes, from very low to moderate, thereby enabling Santa Monica to maintain an economically diverse community. The following discussion uses definitions established by the federal HousIng and Urban Development (HUD) program. Very Low Income -- households whose income is 50% or less than the median household income for a famify of four in Los Angeles County', Another Very Low Income category used in this report is 60% of median income for a family of four, Low Income -- households whose Income IS 80% or less than the median household income for a family of four in Los Angeles County. Moderate Income -- households whose ,ncome IS between 700% - 120% of median household income for a family of four in Los Angeles County Affordable -- paying no more than 30% of household's gross income for rent, Affordable units were lost at every affordability level and every bedroom size as a result of market rent increases since January 1, 1999 For the 910 units with market increases, prior to the increase, the median MARs at all bedroom sizes were affordable to a household whose income is 80010 of the adjusted County median None of the post-increase medians were affordable at 80% of median income. 1 For example. for a famIly of four. the median Jllcome at 50% was $25.650 III the years in questIon Income for a family of four at 60% was $30,780, at 80% It was $41.040, and at 100% It was $51.300 Market Rent Report -- 4/13/99 3 After the increase. the median MAR's of 0- and l-bedroom units were only affordable at 100% of median and above, Even more significantly, the medians of units with 2 or more bedrooms were no longer affordable even at 100% of median. In fact, the median of 3-bedroom units is nearly $500 above the amount affordable at 100% of median Income, On December 31, 1998. just prior to implementation of market increases, there were 6,916 units citywide affordable to very low income households (at 50% of median income). By March 31, 1999, only 90 days later, 162 of 165 units (98%) that had been affordable at 50% of income pnor to the increase received increases making them no longer affordable to very low income households at 50%. On December 31,1998.14.710 units were affordable to very low income households citywide (at 6Cfk of median income. including those affordable to households with Income at 50%). By March 31, 398 of 415 unlts(96%) that had been affordable at 60% of income prior to the increase received increases making them no longer affordable at 60%. On December 31. 1998. 23.850 units citywide were affordable to low income households (at 80% of median Income, Including those affordable to households with income at 50% and 6Cf1o) By March 31 of the 742 unIts that were affordable at 80% of income prior to the Increase, 582 (78%) received increases whIch made them no longer affordable at 80% Affordability was even lost at the moderate HXJOIo income level. 26,630 units had been affordable on December 31. 1998 425 units are no longer affordable even at that level The chart below details the loss of the 425 units that had been affordable at 100% of median by bedroom-size No of Bedrooms o 1 2 3 or more Units Affordable at 100% of Median Lost as a Result of Market Rents # Units # Units # UnIts # Units with Affordable at Affordable at No Longer Vacancy 100% of Med 100% of Med. Affordable Increase Pre-Increase Post-Increase ot 100% 114 110 89 41 510 486 280 206 254 232 72 1 CD J2 26 .8 l8. 910 854 429 425 Total Market Rent Report -- 4113/99 4 Summarizing, the 910 units with vacancy Increases resulted in the loss of 582 low income (80%) units including 162 very low income (SOCk of median) units, and 398 very low income (60% of median) units. In other words, 64% of the vacancy increases resulted in units which previously were affordable at 80% of median income becoming affordable only to households whose Income is 100% of median or higher The graph below depicts the effect of increases on units affordable at the various percentages of median As the chart shows, the lower the affordability level, the greater the loss of affordable units, UNITS REMAINING AFFORDABLE AT SAME LEVEL AFTER INCREASE1 JANUARY 1 - MARCH 31,1999 ".__.___________.______ _______________________________ I .n.n.n~ _______________.............n.n.ll9J'__.__._________.__.__................n..~____.__.__: 900 800 Cl LU f- 700 <.:> tl: 600 u.. <( ~ 500 Z ::> 400 u.. 0 a:: 300 w to :2 200 ::> Z 100 0 131 X-Petitions at Affordablhty Level o Units Affordable at Same Level After Increase me I 50% I 60% I 80% AFFORDABILlTY LEVEL Translafina Affordabilitv in Income I 100% USing HUD affordability factors. Including a factor that indicates that a household paying more than 30% of gross rent is rent burdened, and factors HUD applies regarding the number of bedrooms. the following changes occurred in minimum Incomes required for a rent to be affordable. The charts below use HUD 30% affordability standards and Indicate the income needed to pay for median rents citywide, and for unIts with market increases pnor to and after the market increase The MAR's on which the table is based are those shown in the table on page 2, Market Rent Report -- 4/13199 5 Income Needed to Afford MAR's (30% Affordabilitv Standard) Units Citywide (28.296 units) Income Needed to Afford MAR $28bOO 29.300 31 .579 34286 No. of BedrQoms o 1 2 3 or more 12/31/98 Median MAR'$ SE04 S86 7fIJ 92D Income Needed to Afford MAR's (30% Affordabilitv Standard) Units with Vacancy Increases 1/1 ~ 3/ 31/99 (910 units) Pre- Income Post Income Increase Needed -Increase Needed No. of Median to Afford Median to Afford Bedrooms MAR's MAR MAR'$ MAR Difference 0 S553 $31 ,em $775 $44286 S 121:X36 1 6:fJ 31,ffJJ 1 .(XX) 50 .em 18fDJ 2 772 32,8)5 1.397 58 .821 26,316 3 or more W1 36.535 1,8<;0 69 /)77 33.142 Proiection of Future Loss of Affordable Units If vacancy registrations continue to be filed at the same rate (which is a reasonable expectation based on rates experienced when R-petltjons (15% vacancy increases) were filed), slightly more than 3,600 increases will occur during the year. As of December 31, 1998 there were 26,630 units affordable at 800k of median income (84% of all units), It can be assumed that 84% of the 3,600 units (3,024 unrts) will be affordable at 80% pnor to the increase. If the increases upon vacancy contInue at the same rate (582 out of 742 -- 78%), it can be projected that 78% of the 3,024 units Will no longer be available to households with incomes at 80% of median or below, That would be a loss of 2,359 affordable units, which IS 10% of all units that had been affordable at 80% on December 31, 1998, Market Rent Report -- 4/13/99 6 As of December 31. 1998 there were 6.916 units affordable at 50% of median income (24% of 011 units), The projection assumes that 24% of the 3.600 units (864 units) will be affordable at SOCk pnor to the Increase, If the increases upon vacancy continue at the same rate (162 out of 165- 98%) It is projected that 98% of the 864 units will no longer be available to very low income households at SOO/O of median That would be a loss of 847 affordable units, which is 12% of all units that had been affordable at 50% on December 31. 1998 Based on the above numbers. the graphs below depict the loss of affordability at the 50% and 80% levels through December 1998, and projects the further loss that may be experienced by December 1999 9/30/95 12/31/97 12/31/98 12/31/99 (projected) mI W//A 1 3 o 2 Number of Bedrooms l:: m "'5 (!,l ~ '0 ::.e b {l 10 co c Cii m (!,l ::J :o~ res l- 5 "E .!2 < rJ) - E => Units Affordable to Low Income (800/0 of Medianj All Controlled Units n_ n ____ n___ ....__nnn._.........___ ____ n__nno _.___n___nn.._ .____~_~.___.__J!'I ".._ ",.....u__ ____ _.'.VJ'.._.._ n___ .._.__ ____ n..... _.. n____ _ ......._._____.__"""'"' __n_ ____ 1 5 I EJ 9/30/95 012/31/97 1Z112/31198 nm.U.umn.mnnumUm. n n 0 12/31/99 projected .~ o ~ m ~ I 3 I o I 1 2 Number of Bedrooms Market Rent Report - 4/13/99 7 Areas of the Cifv The percentage of controlled rental units varies In the seven areas of the CIty, The vacancy increase filings are not in the same proportion Areas F and G combIned (both north of Wilshire) contain 38% of the controlled rental units. However, 46% of the X-petition increases are from these areas Ar€,7Q A B C D E F G % of Rental Units 17% 12 5 10 18 17 21 <>;'9 of X-oetltlons 13010 12 4 8 17 21 25 Size of Unit -- Number of Bedrooms The percentage of controlled units also varies by the number of bedrooms in the unit. Singles and l-bedrooms are 55.6% of the citywide units However, 68 5% of X-petitions were for units of this size, At this point it is not possible to determine the reason for the variatIon It is possible that there is higher turnover among the smarter units. On the other hand, the larger units may not be rented as qUIckly if owners have an expectation of being able to collect higher rents than tenants are willing to pay. No. of B~<;frooms o 1 2 3 or more %of Rental Units 9.00k A6.5 345 10.0 % of X-oetitions 12,5% 56.0 285 3,5 Other Sideliahts It was thought that many units would be kept off the market for long periods In anticipation of market rents. The 910 increases do not support that theory According to self-reporting by owners on registration forms, only 39 units had been vacant more than one year prior to the petitIon fIling. On the other hand nearly 800 units had been vacant less than 3 months Conclusion When the State Legislature mandated vacancy decontrol to all cities with rent control. predictions were made as to the potential impact on rents and affordabihty. Unfortunately, the direst predictions appear to have been the closest. Market Rent Report -- 4/13199 8 The loss of affordable units is occurring at a rapidly escalating rate, For example. between October 1995 (when vacancies increases began) and December 1998,1.439 units lost affordabillty at the 50% of median Income level as a result of vacancy increases, nearly 38 per month. In the three months of market rent vacancies, 162 units prevIously affordable at 50% of median were lost, 54 per month. Likewise. 2,908 units lost affordabllity at the 60% of median income level as a result of the 15% vacancy increases, 76,5 per month through December 1998 In the three months of market rent vacancies, 398 units previously affordable at 60% of median were lost, 133 per month The loss of affordable rent controlled units in Santa Monica increases the demand for affordable housing In this city and the surrounding area Low income households will no longer be able to relocate into affordable housing within the city, nor will housing be available to new low income populations The stable and diverse community that Santa Monica has prided itself on will change, The lack of affordable low Income housing may have many potentIal indirect effects If workers cannot find housing locally, they may relocate to more affordable, but more distant communities This could represent either a Joss in the work force or an added burden on the commuter transportation system. Finally, for the lowest income households, the diminishing supply of low Income housing may result In more over-crowding and homelessness More rapid production of permanently affordable housing is essentIal. Staff Will continue to monitor these developments and periodically update this report, Market Rent Report -- 4/13/99 9 EXHIBIT C ....... = ~ S Q.. 0 ~ ..... QJ :: i: ;;.. ......, Q. = Q. - QJ < "" Q QJ ~ ~ - t. .. :; IIIIIIIII' = = = '-l - ~ .. - .JIIIII u ; ~ ~ 1: = '" -< 0 ";i ... QJ ... ........ 0 ~ \", "0 =- = ... .JIIIII ~ =- '" rI1 Q\ -< :: QJ g. ::J ,.. c:: 0\ .- -.; - ... ..... c ? .s ec . ~. '" - .; C.J = .c - <:: .... = .~ '" = ..., "- ~ -' 0 ~ '-l .-. ~ Q t.. ~ = ....... = = 00 ~ = =' C) c iii ~ o J: ~ E .e ~ '3 ~ -Itr,c '/;';';';',":;:;~.:;.;:;>~~:;:~:':">J ~ g: ~ lc;;" ,"',,,,"': :,:;:,'".' :.,. f ~ ro '- .li'7 7:~?'-t ~ ~ '" :~ _~ '9r.~ \. -1 g: N ~ '~d ; N <<I o o .., o III N o o N o 10 .... o o .... o 10 o SllUn,O # ~ ~ E .c :::l IJ) .. C "tI III > o ... 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'< f \atty\mum\laws\mjm\moratora 3 wpd City Council Meetmg 5-25-99 Santa Monica, California ORDINANCE NUMBER 1944 (CCS) (City Council Series) AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ENACTING A MORATORIUM ON MULTI-FAMILY RESIDENTIAL DEVELOPMENT IN THE CITY'S MULTI-FAMILY RESIDENTIAL DISTRICTS, DECLARING THE PRESENCE OF AN EMERGENCY THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS SECTION 1 Findings and Purpose The Council finds and declares (a) Drastic changes In state law and the local economy have propelled the City to a crossroad In Its history at which the City must now pause to ensure that Its land use laws and poliCies are adequate to ensure Its future welfare (b) The gravity of thiS SituatIon IS greatly IntenSified by the fact that Santa MOnica has much to lose Located atthe western edge ofthe Los Angeles basin, the City affords a umque combination of natural splendors -- broad beaches, stunning Views, mild weather and clean air -- together with sophIsticated urban amenities and a community scale that respects both the natural environment and Individual needs All thiS eXists In a very small space -- just eight square miles (c) In that small space, the CIty teems WIth actIvIty. It IS home to 90,000 resIdents, and Its population density, 11,200 persons per square mile, IS the highest among coastal 1 y commUnities In Los Angeles County Santa Monica IS also the workplace for approximately 155,000 workers and a destmatlon for as many as 400,000 daily VISItorS. Thus, extreme density complicates planning efforts and makes preservation of the quality of life a difficult challenge (d) Moreover, planning difficulties are exacerbated by the fact that the City IS fully built-out and has been 50 for decades As of November 1995, there were only sixty-two (62) vacant resIdential parcels out of approximately 6,132 multi-family zoned parcels In the entire CIty Smce then, even thIS hmlted number of vacant parcels has shrunk. Thus, plannIng flexIbility IS limited by the reality that residential development In the CIty's residential districts means change .- not expansion - and Virtually any new project or construction replaces an eXlstlng structure or Improvement. (e) Planning dIfficultIes are most acute In the multi-family districts which are the largest and densest In the CIty Santa Monrca has the highest percentage of land zoned multI-family reSIdential among westslde/south bay JUrisdictIOns Permitted denSities In these zones range from approximately 29 Units to approximately 48 umts per acre. As a result of these standards, the vast majority of City reSidents live In mu ItI-famlly dwellings Most of them live In the City's 37,000 apartment Units (f) In the past, the dynamIC created by competing demands for use of a small, chOice space has brought the CIty to crossroads on other occasions In the late 1970's, the City faced a severe shortage of rental hOUSing precipitated In part by a "Demolition Derby" -- a fifteen (15) month period dUring which over 1.300 rental housmg Units were demolished and hundreds of others were converted Into condominiums These hOUSing 2 .- Units were removed from the market at ten (10) times the rate of removal (relative to population) of Los Angeles. (g) The City Council wrestled with the polley Issues raised by the Demolition Derby but could not resolve them So the voters took control. They amended the City Charter by adopting a stnngent Rent Control Law The law Imposed stnct controls on rents, which applied even when units were vacated, and restricted the demolition or conversion of controlled Units Legal challenges ensued, but the courts upheld the law as a legitimate exercise of the City's police power to proVide for the health, safety and welfare of Its reSidents. (h) The Rent Control Law had the effect of limiting change In the multi-family areas ofthe City In the years follOWing ItS adoption of the Rent Control Law, the City mamtalned a stable and diverse residential population, and the multi-family neighborhoods retained their basIc character and scale Most structures In these neighborhoods are one or two stories high Many have gardens, lawns or courtyards. Thus, despite their density, these neighborhoods retamed a unique sense of space, greenery and light condUCive to human InteractIon and qUietude. The streets In the reSidential neighborhoods were "pedestrian friendly" A City survey showed that walkmg became City reSidents' faVOrite recreational a ctlvJty . (I) Meanwhile, In the years follOWIng the adoption ofthe Rent Control Law, the rest of the City developed and changed rapidly In the Single family districts, hOUSing pnces skyrocketed. By the early 1980's even older, very small homes In the R-1 District were selling for $250,000 or more Prices dipped In the early 1990's, and shot upwards again, 3 ..., making It virtually Impossible for low or moderate Income families to purchase homes In the R-1 District. (J) At the same tIme, the numbers of workers commg to the City each day swelled as multi-story office parks were built In the central city. Moreover, commuter numbers Will Increase dramatically as new multi-story office bUildings are completed dunng the next two years Additionally, as the City shifted Its revenue base to hotel taxes, many large new hotels were bUIlt, and the City became an Internationally acclaImed vacatIon spot hosting approxImately 2,355,000 VISitOrs In 1997 (k) Thus, the City boomed and became richer and more crowded, but the multi- famIly reSidential neighborhoods remained relatively quiet and stable consldenng theIr density AccordIngly, for years, a balance was struck between reSidential and commerCial interests which preserved the character ofthe City's multi-family reSidential neighborhoods but allowed the City to flOUrish economically (I) In 1994, natural disaster swept the City Into a period of transition On January 17th, the City suffered Widespread damage to both Its reSidential and commerCial districts as a result of the Northndge earthquake The earthquake rendered approximately 3,100 dwelling umts uninhabitable and damaged thousands of other properties thus necessitatIng substantial rebUilding However, the balanCing of reSidential and commerCial Interest remaIned unchanged (m) Recent changes In state law destroyed thiS balance. In 1996, In response to Intense lobbYing efforts by landlords and real estate developers, the State Legislature drastically restncted local control of housing policy by adopting the Costa-Hawkins Rental HOUSing Act of 1995 ("Costa-Hawkins") Costa-HawkinS weakens local rent control by 4 phasing In mandatory vacancy decontrol, which became fully effective In January of this year This signaled the end of local rent control as It had eXisted for almost twenty years In Santa Monica It also threw the commumty Into a period of extreme uncertainty as the potential for radical change loomed large. (n) Costa-Hawkins has already had a dramatic impact on the City's housing stock Between January 1 and March 31, 1999, nine hundred and fifteen (915) vacancy regIstrations have been processed by the Rent Control Board. These regIstratIon forms set forth the new rent for Units decontrolled by Costa-Hawkins The vacancy increases have resulted In the loss of 582 Units affordable to low Income households. If vacancy registrations continue to be filed at the same rate, It IS estimated that almost 2400 Units that had been affordable to low Income households Will be lost ThiS figure represents, In one year, a citYWide loss of approximately 10% of the units that had been affordable to low mcome households. (0) ThiS loss of affordablllty has a number of serious repercussions At a time when the demand for affordable hOUSing already exceeds supply, the additional loss of affordable hOUSing Will only serve to exacerbate thiS problem Low Income households Will face almost Insurmountable odds In securing affordable hOUSing and such hOUSing will not be avaIlable to new low Income households seeking to move Into the City IndiViduals presently working In the City will find It Increasingly difficult to find affordable hOUSing The new Jobs that WIll be created by the addItIonal commercIal development ongoIng In the CIty Will only serve to aggravate thiS hOUSing CriSIS by generating additional demands on thiS limited supply of housmg The result will be that these workers will be forced to live In more distant communities and commute to Santa MOnica ThiS trend Will add to the already 5 .. y heavy burden on the region's congested streets and overtaxed transportation system The 105S of this housing will also result In mcreased over-crowding for those Individuals who are unable to secure larger affordable Units as their need for such Units develop (p) At the same time as Costa-Hawkins was phaSing in, the City was expenenclng a time of unprecedented economic boom. Land values were skyrocketing again In the smgle family neighborhoods, small lots sold for sums ranging from hundreds ofthousands of dollars to a million or more Modest forty-year old homes sold for as much as half a million dollars The burgeoning economy Impacted the multl~famlly development as well. Between 1996 and 1997, the number of multi-family housing Units approved for construction almost tripled Pnor to that time, the three year average was under 80 new units pef year. In 1997 the number Jumped to 234 (excluding one enormous and highly unusual project of 351 umts). (q) Along With the economic boom and acceleration In bUilding came a dramatic shift In demographics The vast majonty of new, privately built units were for upper Income purchasers. These new housing developments have committed scarce land resources to provldmg luxury housing which IS unaffordable to most residents of the City Moreover, market condltrons, Including the high cost of residential land, construction costs, and the availability and cost of financing, make the development of affordable housing In the City extremely difficult (r) These trends are continuing Planning approvals fOf multi-famIly construction will substantially exceed the rate approved last year Accelerated development Impacts the City as a whole and also Impact the dally lives of residents who must cope WIth the nOIse and Interference caused by construction undertaken In a crowded, fully developed 6 commumty Construction matenals and equipment are often placed In the roadway and/or on sidewalks, thereby obstructing both vehicular and pedestnan traffic Neighborhood aesthetics suffer (s) This construction boom will likely continue. A slgmficant amount of the Clty]s residential hOUSing stock was bUilt pnor to the 1960's. Parcels developed with older structures tend to be developed at denSities and heights that are lower than what IS currently allowed by zoning Given these conditions and the booming economy, there IS a high likelihood that a Significant amount of construction will occur In the City with ItS attendant disruption to reSidents' peace and qUiet enjoyment. (t) The redevelopment of these currently underdeveloped properties at greater height and denSities would also result In the loss of views and light and could pose a threat to the eXisting character of neighborhoods and the City's unique natural environment (u) There IS also a SignifIcant shortage of reasonably available and convenient parkmg spaces In these residential dlstncts ThiS IS demonstrated In part by the large number of preferentIal parking dlstncts that have been established by the CIty and the continued demand for the creation of new preferential parking dlstncts. Given the growing affluence of the community, Increased development may exacerbate an already unacceptable level of parking problems (v) In order to address the changes resulting from Costa-Hawkins and from the economIc boom, In part, the CIty undertook a reVISion of Its hOUSing policIes through the process of amending the City]s HOUSing Element ThiS was a difficult process State HOUSing Element law purports to require Cities to continually proVIde new hOUSing However, Santa Momca IS fully bUilt out and committed to neighborhood preservation. 7 l" Despite thIs problem and an additional problem caused by the State's failure to supply RHNA numbers, Santa MOnica completed the amendment process last summer, and the State approved its amendment The Housing Element establishes the City'S fair share at 3,219 housing Units and Its quantified objective at 1,542 housing units These objectives are based exclusively on the construction of new housing. (w) After the City completed revisions, the State again changed the law ThiS time, the State amended the Housing Element law to allow cities to count rehabilitated units In meeting their "faIr share" of housing opportunities This change has major slgmficance for Santa Monica because the City has an agIng housing stock and a strong commitment to neighborhood preservation Accordingly, consistent with local poliCies favoring preservabon, the City needs the opportunity to evaluate whether thiS change In state law affords new opportunities for the CIty to fulfill ItS own goals. ThiS process Will take some time because the state law which allows the counting of rehabilitated Units IS complicated and difficult to utilize (x) Mamtalmng the unique character of Santa MOnica's neighborhoods IS Important for many reasons First, City reSidents value their neighborhoods. The preservation of neighborhoods promote a sense of place and loyalty from reSidents It proVides reSidents with qUiet enjoyment In their homes and a community which eXists on a pedestnan friendly scale Design and development standards which are sensItive to eXisting neighborhood condItIons can further environmental and social goals Preservation of eXisting neighborhoods can serve to malntam the City's supply of affordable housing and Its archltectu ral diversity Meanwhile, workers need good traffic circulation, adequate parking and perhaps even places to live Tourists expectto recreate m an aesthetically appealing 8 .... community which combines entertamment opportumtles with small town warmth and charm (y) The City must address the very difficult question of how to balance these compettng demands and fulfill its legal responslblhty to prOVide affordable housing In new ways The method which worked for twenty years has been eViscerated by State action Time IS needed to expeditiously evaluate the new option for rehabilitation supplied by state law (z) For the reasons detailed, the continuing development of multi-family hOUSing In the City's residential zones prior to the comprehenSive review of the City'S hOUSing and land use poliCies and regulations presents a current and Immediate threat to the public peace, health, safety, and welfare If urgent action IS not taken, Irreversible development activity Will continue unabated, thereby commItting scarce land resources to development that IS not In the best Interests of the reSidents of the City The approval of additional multi-family hOUSing development In the City's multi-family hOUSing diStriCtS, With limited exception, pending the City'S review of Its hOUSing and land use poliCies and regulations would result In a threat to the public health, safety, and welfare SECTION 2 MoratOrium (a) Subject to the exemptions set forth In Section 3 ofthls Ordinance, a moratorium IS hereby placed on the acceptance for processing of any applications for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permIts, and conditional use permits, for any reSidential bUilding or structure, including any hotel or motel, on properties located m multi-famIly reSidential districts In the City For 9 11' purposes of this Ordinance, the multI-family reSidential dlstncts In the City are R2R, R2, R3, R4, RVC, RMH, OPDuplex, OP2, OP3, OP4, NWOverlay, R2B, and R3R (b) Subject to the exemptions set forth In Section 3 of this Ordinance, the Planmng Commission and City staff are hereby directed to disapprove all applications which have not been deemed complete as of May 25, 1999, for tentative tract maps, tentative parcel maps, admmlstrative approvals, development review permits, and conditional use permits for any resIdential bUIlding or structure, including any hotel or motel, on properties located In multi-family reSidential dlstncts m the City SECTION 3 Exemptions The follOWing applications are exempt from the provIsions of Section 2 of this Ordmance (a) Appllcatrons for approval of permits mvolvlng the erection, construction, enlargement, demolition or moving of, and excavation and grading for any multiple dwelling development mtended for rental housing for persons of low and moderate Income and which development IS financed by any federal, state or City housing assistance program or owned by any non-profit organization, provided the Director of Planning determines that such development IS In conformance with the General Plan and the Zoning Ordinance and provided a deed restriction IS recorded restrictIng the development to such purpose (b) ApplicatIons for approval of permits InvolVing the erection, constructlon, and excavation and grading for an additional residential dwelling umt on a site which currently contains and Will maintaIn an eXisting SIngle famIly home 10 v (c) Applications for approval of permits involving the erection, constructIon, enlargement of, and excavation and gradmg for, projects which will be developed on sites that were vacant as of May 25, 1999 SECTION 4 This ordinance IS declared to be an urgency measure adopted pursuant to the provIsion of Section 615 of the Santa MOnica City Charter. As set forth In the findings above, this ordinance IS'11ecessary for preservIng the public peace, health, safety, and welfare. SECTION 5 ThIs Ordinance shall be of no further force and effect forty-five (45) days from the date of ItS adoption, unless pnor to that date, after a public heanng, noticed pursuant to Santa Monica MUnicipal Code SectIon 9.04.2022050, the City Council, by majonty vote, extends this Intenm Ordinance '. SECTION 6 Any provIsIon of the Santa MOnica Municipal Code or appendices thereto Inconsistent 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 thiS Ordinance SECTION 7 If any section, subsection, sentence, clause, or phrase of thiS Ordmance IS for any reason held to be Invalid or unconstitutional by a deCISion of any court of competent Junsdlction, 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 11 ~ Ordinance and each and every section, subsectIon, sentence, clause, or phrase not declared Invalid or unconstitutional without regard to whether any portion of the ordmance would be subsequently declared Invalid or unconstitutional SECTION 8 The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance The City Clerk shall cause the same to be published once In the official newspaperwlthm 15 days after Its adoption. This Ordinance shall become effective upon Its adoption APPROVED AS TO FORM. rr~d k~ MARSHA JO~UTRIE City Attorney 12 J Adopted and approved tlns 25th day of May, 1999 I ~l/l CU/j//,{ pL O'Connor, Mayor State of Cahforrua ) County of Los Angeles) S5 CIty of Santa Moruca ) I, Mana M Stewart, CIty Clerk of the CIty of Santa Maruca, do hereby certIfy that the foregomg Ordmance No 1944 (CCS) had ItS mtroductlon and adoptIon on May 25, 1999, by the followmg vote Ayes CouncIl members. McKeown, Femstem, Bloom, Mayor Pro Tern Genser. Mayor O'Connor Noes CouncIlmembers Holbrook, Rosenstem Abstam None Absent None ~.~-~~ Mana M Stewart, CIty <S:lerk