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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
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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.
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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
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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
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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
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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
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EXHIBIT A
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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
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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
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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,
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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
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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
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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
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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
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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
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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
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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
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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
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newspaper wlthm 15 days after Its adoption This Ordmance shall become effective upon
Its adoptIon
APPROVED AS TO FORM
MARSHA JONES MOUTRIE
CIty Attorney
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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
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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
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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
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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
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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.
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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
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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
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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
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(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
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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
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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