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SR-6-E (109) ...~. . ~ (P-6 CA:RMM:11566g/hpc/pc NOV '2 6 1991 city Council Meeting 11-26-91 Santa Monica, California STAFF REPORT TO: Mayor and City Council FROM: City Attorney SUBJECT: Ordinance Establishing a Moratorium on Multifamily Residential Development with certain Exemptions in Order to Comply with Proposition R At its meeting on November 19, 1991, the city Council introduced for first reading an ordinance establishing a moratorium on multifamily residential development with certain exemptions in order to comply with Proposition R. The ordinance is now presented to the City Council for adoption. RECOMMENDATION It is respectfully recommended that the accompanying ordinance be adopted. PREPARED BY: Robert M. Myers, city Attorney ~v-: ~I ! I CA:RMM:ll566c/hpc/pc Clty Council Meeting 11-26-91 Santa Monica, California ORDINANCE NUMBER 1609(CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING A MORATORIUM ON MULTIFAMILY RESIDENTIAL DEVELOPMENT WITH CERTAIN EXEMPTIONS IN ORDER TO COMPLY WITH PROPOSITION R THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Findlngs and Purpose. The City Council finds and declares: (a) On November 6, 1990, the voters of the City of Santa Monlca approved Proposition R, adding Sectlon 630 to the City Charter to read as follows: The City Council by Ordinance shall at all tlmes requlre that not less than thirty percent (30%) of all multifamlly-resldential houslng newly constructed in the City on an annual baS1S lS permanently affordable to and occupied by low and moderate lncome households. For purposes of this section, "low income household" means a household with an income not exceeding sixty percent (60%) of the Los Angeles County median income, adjusted by famlly size, as published from - 1 - . time to time by the United states Department of Houslng and Urban Development, and "moderate income household" means a household with an income not exceeding one hundred percent (100%) of the Los Angeles County median lncome, adjusted by family size, as published from time to time by the United states Department of Housing and Urban Development. At least fifty percent (50%) of the newly constructed units required to be permanently affordable by thlS Section shall be affordable to and occupied by low income households. (b) On December 29, 1990, the City published notice that on January 8, 1991, the city council would consider issues relating to the implementation of Proposition R including whether the thirty percent (30%) requirement of Proposition R could be met on site or off site, whether an in-lieu fee would be permitted, and whether the thirty percent (30% ) requirement had to be met on a project by project basis. This notice also provided that at the January 8, 1991 meeting, the City Council would consider dlrectlng staff to prepare an ordinance to lmplernent Proposltion R. ( c) City staff prepared a staff report for the January 8, 1991 Clty Councll meeting identifying the issues that had to be addressed as part of the implementation of Proposition R, suggesting a process for obtaining public input, presenting city staff's resolutlon of issues raised by Proposltlon R's - 2 - lmplementatlon, and recommending that staff be directed to prepare an ordinance implementing Proposition R. (d) At its January 8, 1991 meeting, the City council directed staff to prepare an ordinance implementing Proposition R and to return the ordinance to the Clty Council on February 26, 1991. (e) The Santa Monica Planning Commisslon, as well as other groups in the community, believed the schedule for the return of the ordinance dld not provide opportunities for adequate review of varlOUS alternative strategies for lmplementing proposition R. (f) At its meeting on February 19, 1991, the City Council decided to reconsider whether an ordlnance should be prepared and scheduled for its next regular meeting a general discussion of implementing strategies. (g) On March 5, 1991, the city Council directed the City Attorney to prepare an ordinance prohibitlng the filing of applications for market-rate residential houslng until such time as the Council adopts an ordinance implementing Proposition R excepting from the prohlbition any project in which thirty percent (30%) of the units constructed on site are available to low and moderate income persons as provided for in Proposition R. (h) On March 26, 1991, Ordinance Number 1577 (CCS) was adopted imposlng restrictlons on new multifamily housing to ensure compliance with Proposition R. This ordinance will expire on September 26, 1991. (i) On April 3, 1991, the Planning Commission reviewed an outline developed by staff on the issues and information that - 3 - would be presented as part of the analysis on the alternative implementatlon strategies. (j) In mld-September, a report will be issued by staff on the "Proposed Implementatlon Strategy Under proposition R.II (k) During the period between mid-September and November 11, 1991, the public will have the opportunity to review and comment on the report "Proposed Implementation strategy Under Proposition R" and attend hearings before the Planning Commission and City Council. (1) On October 16 and October 25, 1991, the Plannlng Commisslon conducted a public hearing and formulated a recommendation to the city council. The Planning Commission requested a two or three month extenslon of the eXlstlng moratorlum ordinance on multifamily residential development to allow for further public reVlew and Planning commission consideratlon. (m) The following ordinance is necessary to enable the city to meet the requirements of Propositlon R. Proposition R mandates that on an annual basis not less than 30% of all multifaml1y residential housing newly constructed in the city be permanently affordable to low and moderate income households. Hlstorically, multl.faml1y residential housing developed in the city has fallen far short of thls JO% requirement. Th1S trend continues to date. Thus, unless this emergency moratorium 1S extended, and only projects providing 30% affordable houslng consistent with Proposltion R are exempted, the City wlll not be able to meet the mandate of proposition R. This ordinance - 4 - ensures that the Clty will comply with Proposltlon R while studying approaches for long-term implementation of the measure. SECTION 2. Morator1um. (a) Subject to the exemptlons set forth ln Sectlon 3 of thlS Ordinance, a moratorlum lS hereby placed on the acceptance for processing of any appllcatlons for approval of tentative tract maps, tentative parcel maps, adminlstrative approvals, development review permits, conditional use permits, or any other city permits for the erection, construction, movlng, and excavation and grading for, any multl-family residentlal bUllding or structure. (b) Subject to the exemptions set forth in Section 3 of this Ordinance, the Planning commission and Clty staff are hereby dlrected to disapprove all applications filed after March 5, 1991, for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditlonal use permlts, or any other city permits for the erection, constructlon, moving, and excavation and grading for, any mult1-fam1ly bU1lding or structure. SECTION 3. Exemptions. The followl.ng applications are exempt from the provisions of Sectlon 2 of thlS Ordlnance: ( a) Applications for approval of permlts involvlng the erection, construction, enlargement, demolitlon, or movlng of, and excavat10n and grading for any multiple dwelling development intended for rental houslng for persons of low and moderate lncome or for senior cltlzens, and which development is flnanced by any federal, state or C1ty housing asslstance program or owned - 5 - ---- by any non-profit organizat1on, provided a deed restriction is recorded restricting the development to such purpose. (b) Applications for approval of permits involving the rehabilitation or enlargement of eXlstlng dwelling units. (c) Applicatlons for projects filed prior to March 6, 1991. (d) Appllcat10ns for approval of permits 1nvolving the construction and excavation and grading for, proJects where the following requirements are met: ( 1) The appl1cant proposes that thirty percent (30%) of the total number unlts to be constructed on site by the appl1cant, excluding any density bonus units the applicant 1S entltled to under Government Code Sect10n 65915, shall be permanently affordable to and occupled by low and moderate income households as prov1ded for 1n this subsection. (2 ) For purposes of this subsection, "low lncome household" means a household wlth an lncome not exceed1ng Slxty percent (60%) of the Los Angeles County median 1ncome, adjusted by family Slze, as published from tlme to t1me by the Unlted States Department of Hous1ng and Urban Development, and "moderate income householdll means a household w1th an income not exceeding one hundred percent (lOO%) of the Los Angeles County median 1ncome, adJusted by family Slze, as publ1shed from t1me to time by the United States Department of Housing and Urban Development. ( 3) At least fifty percent (50%) of the newly constructed unlts required to be permanently affordable by this subsection shall be affordable to and occupled by low income households. - 6 - (4 ) The prov1s1ons of Munlclpal Code Sectlon 9423 (b) , (c) , (d) , (e) , and (f) , Municipal Code Section 9427, and Municipal Code Sectlon 9428 shall be complied wlth as to such inclusionary unlts. (5) Pr ior to the issuance of a building perm1t for a project exempt under this subsection, the applicant shall submit deed restr1ctlons or other legal instruments settlng forth the obligations of the appllcant under thlS subsection for City reV1ew and approval. Such restrictlons shall be effectlve for the lifetime of the proJect. (6) The requlrements of this subsection shall be made condltlons to the approval of any application filed pursuant to th1s subsectlon. SECTION 4. This Ordinance shall be of no further force and effect on April 10, 1992. SECTION 5. Any prov1sion of the Santa Monica Munlcipal Code or append1ces thereto inconsistent wlth the provlslons of this Ordinance, to the extent of such lnconslstencles and not further, are hereby repealed or mod1fied to that extent necessary to affect the provlsions of this ordinance. SECTION 6. If any section, subsectlon, sentence, clause, or phrase of this Ordlnance 1S for any reason held to be inval1d or unconstitutional by a declslon of any court of any competent jurlsdlctlon, such decls10n shall not affect the validity of the remaining portions of this Ordinance. The Clty Council hereby declares that 1 t would have passed this Ordinance, and each and - 7 - - . , . . every section, subsect1on, sentence, clause, or phrase not declared invalid or unconstltut1onal without regard to whether any portion of the Ordinance would be subsequently declared 1nvalid or unconstitutlonal. SECTION 7. 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 pub11shed once in the official newspaper w1thln 15 days after its adopt1on. ThlS Ordinance shall become effective 30 days from the date of adoption. APPROVED AS TO FORM: ~ 1.0..- . \ TI- ROBERT M. MYERS city Attorney - 8 - . . Adopted and approved this 26th day of November, 1991. ~ ~/? , ayor I hereby certify that the foregoing ordinance No. 1609(CCS) was duly and regularly introduced at a meeting of the city Council on the 19th day of November 1991; that the said Ordinance was thereafter duly adopted at a meeting of the City Council on the 26th day of November 1991 by the following Council vote: Ayes: Councilmembers: Genser, Holbrook, Katz, Olsen, Vazquez, Zane, Mayor Abdo Noes: Councilmembers: None Abstain: Councilmembers: None Absent: councilmembers: None ATTEST: J&V/;o'~ ~~ city Clerk I