SR-8B (21)
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88
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PCD SF:DKW:f:\plan\share\councll\strpt\eqell
Counc1l Mtg. July 12, 1994 Santa Monica, Californla
JUL 1 2 199't
TO: Mayor and Clty Council
FROM: City Staff
SUBJECT: Recommendat1on to Introduce for Flrst Readlng Ordinance
Amendlng Ordlnance 1736 (CCS) to Clarlfy Affordable
Houslng Obllgations for Propertles Which Had Been
Removed From the Rental Housing Market Via the Ellis
Act as of January 17, 1994, and to Lengthen the Time
Period That Displaced Tenants Have to Not1fy Their
Landlord That They W1sh to Renew Their Tenancy
INTRODUCTION
ThlS report recommends that the Clty Council amend the affordable
housing obl1gat1on requirements of "Earthquake Recovery Act"
(Ordinance 1736 (CCS}) to address propertles which had been
removed from the rental houslng market V1a the Ellis Act as of
the date of the Northr1dge Earthquake (January 17, 1994).
Th1s
report also recommends that the City Councll awend this ord1nance
to lengthen the tlme period that d1splaced tenants have to
notlfy thelr owner that they wlsh to renew thelr tenancy In an
earthquake damaged structure after the structure has been
demollshed and reconstructed.
ThlS report recommends that the
ordinance be amended to impose Slm11ar notlflcat1on requlrements
on tenants displaced from a residential ho~slng U~1t so that an
owner can undertake earthquake related repairs.
F1nally , it is
recommended that the ord1nance be amended to clarify certa1n
prov1s1ons of this Bectlon.
"
- ..L -
JUl 1 2 199't
~ . ~~..,
~. I ~.U)
OD
BACKGROUND
Ordinance 1736 (CCS) was adopted on April 19, 1994 to ass1st 1n
eart~quake recovery efforts. It establ1shes procedures and
standards for the repa1r and reconstruct1on of earthquake-damaged
structures. Sectlon 5 of the ord1nance specif1es affordable
housing obligat1ons, WhlCh effectively vary between 15 and 25
percent of units reconstructed. However, th1s sectlon only
applles 1f the pro] ect requlres an Earthquake Recovery Permit,
and also requires a removal permit from the Santa Mon1ca Rent
Control Board.
Section 5 of Ordinance 1736 (CCS) does not address the situation
of earthquake-damaged structures wh1ch had been removed from the
rental hous1ng market V1a the Ellis Act, creat1ng a potential gap
ln the affordable housing schema The proposed emergency
ordinance would address this issue, sett1ng a 25 percent
affordable obligation for such structures in the event that the
owner chose to obtaln an Earthquake Recovery Permlt and
subsequently re-enter the rental hous1ng market. It appears
appropriate to require an affordable hous1ng requirement ln such
s1tuations to achleve consistency w1th how other structures are
treated, and to further the C1ty'S affordable houslng object1ves
While one alternat1ve mlght be to prohibit damaged Ell1s
structures from Making use of the provisions of the Earthquake
Recovery Act, this would act as a disincentlve to the potent1al
restoratlon of the rental hous1ng stock, and therefore that
approach appears inappropr1ate Owners who ut111ze Ellis Act
- 2 -
procedures subsequent to January 17, 1994 would not be ellg1ble
for an Earthquake Recovery Perm~t.
Sect10n 10 of this Ord1nance estab11shes the r~ghts of d1splaced
tenants to reoccupy the1r units ln an earthquake damaged
structure. This Sect10n currently requires tenants to not1fy a
owner within thirty (30) days of d1splacement or th1rty (30) days
after the adopt1on of the ord1nance (May 19, 1994), whichever 1S
later, that the tenant des1res to renew the tenancy and to
prov1de a forwarding address. Concern has been ra1sed that the
timing requ1rements for tenant notificat1on to their owner are
unduly harsh and may unnecessarlly cause tenants to lose the
benefits of thlS prov1s1on. Glven these concerns, this provls1on
has been modlf1ed to slmply require that displaced tenants
provide the requ1s1te notiflcatlon to thelr landlords prJ-or to
final Clty s1gn-off on the owner's building perm1t author1z1ng
the reconstruct1on. The ordinance has been similarly modified to
1mpose the same requ1rement on tenants displaced due to
earthquake repa1rs Such modlfications w11l provlde ample
opportunlty to d1splaced tenants to meet the requ1rements of tn1s
Section and should pose no detr1ment to owners reconstructing or
repa1rlng earthquake damaged property.
This Sect10n has also been modlf1ed 1n certain respects to
clar1fy 1tS language and operatlon and to spec1fy the manner 1n
Wh1Ch speclflc correspondence between the owner and tenant must
be delivered.
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BUDGET/FINANCIAL IMPACT
The recommendat1on presented 1n this report does not have any
budget or f1scal lmpact.
RECOMMENDATION
It ~s respectfully recommended that the Councll introduce the
attached ordinance for first read1ng.
Prepared by.
Suzanne Fr1ck, PCD Director
D. Kenyon Webster, Plann1ng Manager
f:\plan\share\council\strpt\eqell
(5 )
- 4 -
CA:f\a\m\l\mhs\eqrecaS
City Council Meeting 7-12-94
Santa Monica, California
ORDINANCE NUMBER (CCS)
(City council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING
THE EARTHQUAKE RECOVERY ACT CONCERNING ELLIS
ACT WITHDRAWN PROPERTIES AND THE REOCCUPANCY
RIGHTS OF DISPLACED TENANTS
WHEREAS, on April 19, 1994 the city Council adopted
Ordinance Number 1736 (CCS) ,
the Earthquake Recovery Act,
establishing procedures and standards for repair and reconstruction
of earthquake damaged structures; and
WHEREAS, it is necessary to amend the Earthquake Recovery
Act to clarify its application to residential projects which have
removed units from the residential rental market pursuant to the
Ellis Act; and
WHEREAS, it is also necessary to amend the Earthquake
Recovery Act to revise the timing requirements for tenants to
notify owners of their desire to reoccupy their unit after
reconstruction or repair and to clarify the application of certain
other provisions governing the reoccupancy rights of displaced
tenants;
1
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES ORDAIN AS FOLLOWS:
SECTION 1. section 2 of Ordinance Number 1736 (CCS), the
Earthquake Recovery Act is amended to read as follows:
SECTION 2. Definitions. Words used in this
Ordinance shall be defined as provided in this section.
Words not specifically defined in this Ordinance shall be
defined as set forth in the Zoning Ordinance.
(a) Affordable Housinq unit. A rental unit meeting
the requirements of Section 5 of this Ordinance which is
affordable to a household with low or moderate income.
(b) Chancre of Use. For residential structures, a
change to non-residential use~ or a change from
apartments to condominiums/,o'r ... i t::...H:.C~WlI'] L f!'"c:; t:1C rr:lnt,ll
hn..hHr:g ,.. \:kt-t Jlu r~';i:;JIl'!" !"!': t!';.(lI 1: 11 i ~~ ,",:.. -:: ., r t(llC tl.('
.J.tmMry 1", 1':::194 :'f,Jrt '''lr ;ci'J~~ (';~rt~i""il. 11~C'; for non-
residential structures, any use with a different parking
requirement_
(c) Cost of Repair. The estimated cost to repair
or reconstruct to be determined by the City based upon
information provided pursuant to section 6(a) of this
Ordinance. Cost of repair shall include the cost of
including any additional square footage allowed as a size
incentive pursuant to this Ordinance.
2
(d) Current Technical Codes. The provisions of
Santa Monica Municipal Code Chapter 8.04, and any other
construction related technical codes adopted by the City,
in effect at the time of issuance of the building permit.
(e) Earthquake Damaqed structures. structures
damaged by the Northridge earthquake or its aftershocks
for which the cost of repair exceeds $1.00 per square
foot of building area.
(f) Earthquake Recovery Permit. A permit to
repair, or remove and reconstruct, earthquake damaged
structures or portions of earthquake damaged structures,
issued pursuant to this Ordinance.
(g) In-kind. In-kind means that, excluding any
Size Incentive allowed by this Ordinance, and except as
necessary to comply with required CUrrent Technical Code
provisions:
(1) The square footage of the proposed
structure does not exceed the amount which existed in the
building pre-earthquake;
(2) The number of dwelling units is the same
as the number existing pre-earthquake (although the
number of bedrooms or configurations of units may vary) ;
(3) The height of the structure is no greater
than that which existed pre-earthquake;
(4) The setbacks are no less than those which
existed pre-earthquake;
3
(5) The number of parking spaces provided is
no less than the parking provided pre-earthquake (unless
the structure is located in the Downtown Parking
Assessment District);
(6) Lot coverage is no greater than that which
existed pre-earthquake;
(7) Landscaping, trash and recycling
enclosures are substantially similar to those existing
pre-earthquake; and
( 8 ) There is no change in use except as
specifically allowed by this Ordinance.
(h) Landmark eliqible. A structure meeting one or
more of the following criteria:
(1) Listed on the National Register of
Historic Places;
(2) Listed on the California Register of
Historical Resources;
(3) Designated as a city Landmark;
(4) Identified in the City of Santa Monica
Historic Resources Inventory Volumes I, II, and III, and
evaluated as: (a) eligible for the National Register of
Historic Places as an individual structure or as part of
a district or (b) eligible for designation as a city
Landmark.
(i)
New Construction.
For non-residential
structures, any construction which is not in-kind; for
4
residential structures, any construction which, excluding
any Size Incentive allowed by this Ordinance, is not in-
kind.
(j) Pre-ea:rthquake. The condi tions existing
immediately prior to the January 17, 1994 Northridge
earthquake.
(k) Reconstruction. The in-kind restoration or
rebuilding of an earthquake damaged structure in which
more than 50% of the exterior walls are removed to the
foundation.
(1) ReDair. The in-kind restoration of an
earthquake damaged structure in which no more than fifty
percent (50%) of the exterior walls are removed to the
foundation.
(m) ReDlacement Value. The estimated cost of
replacing the earthquake damaged structure, to be
determined by the City using the most current Building
Valuation Table published by the International Conference
of Building Officials.
(n) Residential Rental Pro;ect. A parcel
containing two or more rental dwelling units not held in
condominium or cooperative ownership. Any project for
which a TORCA application has received final City
approval shall not be considered a Residential Rental
Project.
5
(0) Siqnificant Desiqn Chanqe. The architectural
style of a building, building footprint, or the majority
of the exterior building materials are substantially
different from that which existed pre-earthquake.
(p) Size Incentive. An incentive allowing a total
square footage increase of up to fifteen percent (15%)
over pre-earthquake square footage on the parcel, and a
total height increase of five feet per structure on the
parcel; but not allowing any increase in the number of
dwelling units.
(q) Tenant. Any tenant, subtenant, lessee,
sublessee, or any other person occupying a rental housing
unit pursuant to a rental housing agreement.
SECTION 2. section 5 of Ordinance Number 1736 (CCS) , the
Earthquake Recovery Act is amended to read as follows:
SECTION 5. Affordable Housinq Obliqation. The
provisions of the City's Inclusionary Housing Program,
Chapter 9.28 of the Municipal Code, shall not apply to
any proj ect obtaining an Earthquake Recovery Permit,
except as specifically incorporated in this section. An
affordable housing obligation shall apply to any
Residential Rental Project obtaining an Earthquake
Recovery Permit which also requires a removal permit from
the Santa Monica Rent Control Board. The following
affordable housing obligations shall apply:
6
(a) If the project has an affordable housing
obligation imposed by the Rent Control Board, such
obligation shall be deemed to satisfy the requirements of
this section.
(b) If no affordable housing obligation is imposed
by the Rent Control Board, not less than twenty-five
percent (25%) of the total number of dwelling units in
the Residential Rental Project shall be affordable to low
and moderate income households. Low and moderate income
levels shall be defined as set forth in Santa Monica
Municipal Code Section 9.28.020.
(c) In determining the number of affordable units
required, the following chart shall be utilized:
No. of units
Reconstructed Low Income Moderate Income
2 0 1
3 0 1
4 0 1
5 0 1
6 1 1
7 1 1
8 1 1
9 1 1
10 1 2
11 1 2
12 1 2
13 1 2
7
14
15
16
17
18
19
20
2
2
2
2
2
2
2
2
2
2
2
3
3
3
For more than twenty (20) units, the number of
affordable units required shall equal twenty-five percent
(25%) of the number of units built; any decimal fraction
of 0.5 or more rounded up to the nearest whole number,
and any decimal fraction of less than 0.5 rounded down to
the nearest whole number. The first affordable unit
required may be affordable to low or moderate income
households, and alternating thereafter.
Cd) Affordable units may have reduced size or
amenities as long as there are no significant
identifiable differences between the affordable units and
market rate units visible from the exterior of the
dwelling units, and the size of each of the affordable
units is equal to average market unit size, or satisfies
the following minimum total floor area, whichever is
smaller:
8
o bedroom
500 square feet
1 bedroom
600 square feet
2 bedrooms
850 square feet
3 bedrooms
1080 square feet
4 bedrooms
1200 square feet.
(e) The mix of bedroom sizes of affordable units
shall be substantially similar to the mix of bedroom
sizes of the market rate units in the project.
(f) Affordable units shall also comply with the
requirements for inclusionary units set forth in Santa
Monica Municipal Code Sections 9.28.060 (c), 9.28.100,
9.28.110, 9.28.130, and 9.28.140.
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SECTION 3.
section 10 of Ordinance Number 1736 (CCS), the
Earthquake Recovery Act is amended to read as follows:
9
SECTION 10. Riqht of Displaced Tenant to
ReoccuDV Residential Housinq unit.
A tenant displaced
from a residential housing unit in an earthquake damaged
structure shall be entitled to reoccupy the unit in
accordance with the following provisions:
(a) Any owner who reconstructs a residential
housing unit pursuant to an Earthquake Recovery Permit
shall first offer the reconstructed unit for rent or
lease to any tenant who has been displaced from the unit
due to the need to undertake the reconstruction.
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of t (" r i:'h.-ll LC' :-..I!'~ i - ~.. (. :.:.:U r~r:!!" f'. p .~J b: : :'h.~d I: y
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i:; l::.t.~::::', has prcy' i ~"L.; 1 Y provided the owner with written
notice : II J i "~l t ~ n:J ~ his or her desire to renew ox!
rt:c.'~;t..: b t ;~: h the tenancy and ~::.:; f~:::-~i:;h~d. t.h::
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di::::,:::;t.::d tc.' ir.::lc~ the r:.Cl~':- :.1 =.~.l:: r.) i 1 ttr'" eff ,~~. That
tenant =::.y shoul1 advise the owner at any time during the
displacement period of a change of address to which an
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(b) Within fifteen (15) days after final city sign-
off
on
the
building
permit
authorizing
the
reconstruction, the owner shall submit a good faith offer
10
to renew a rental agreement or lease on terms permitted
by law to any displaced tenant who has complied with the
requirements of subdivision (a) of this section. The
owner shall also inform the tenant of the expected date
that the unit will be available.
(c) This offer shall be deposited in the united
states mail, by registered or certified first class mail
with postage prepaid, addressed to the displaced tenant
at the address furnished to the owner as provided in this
section and shall describe the terms of the offer. The
displaced tenant shall have thirty (30) days from the
deposit of the offer in the mail to accept the offer by
personal delivery of that acceptance or by deposit of the
acceptance in the United states mail by registered or
certified first class mail with postage prepaid.
l~,(c) Within five (5) days after final city sign-
off on the building permit authorizing the repair of an
earthquake damaged structure, any owner who wac required
~ recovered possession of a residential housing unit due
to the need to undertake the repairs shall notify the
displaced tenant that the unit is ready for reoccupancy.
Any tenant who has been displaced from such a unit for a
period exceeding fourteen (14) days shall have fourteen
(14) days from the receipt of the owner's notice to
reoccupy the unit and recommence rent payments.
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c:.~tcd:li.:it..C".J bi' :;~L.Ji.:i:;J.::, (c) u! this':; .,'t':'cn L1:1:J shall
only be rt~'juirmt jf tt~, di .1 . '.~'(d t(.'~ .:'~. l~.IL~ f:n..vici.l~~y
provid~u ~ht. o..nr~r ",i~.. ...r Ilt.t II In:t.:.Ct.~ in..:i..: ,tine) h:.s c.r
nnc do::,icC" to rco'-:l.:lJpj.' -:-:.c ..:d t c.l:-.j r :".':::': i:~ i :1:J a:l d.:l~lrC"~;s
to "'hich:~~ oOo.lr:.t'r ~h:')l:lLJ : :JI'" ~t~. ':~lC t~""H.[ th-lt the unit
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ahou Id t:~ ~w;';.t.
(e) 'l.t~c I.ctjrlc:-,t'h~n trJ i! '1i:'p:t,,~nLi tcn::!llt t.=~,t
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L'nitc.j ~.t ''=f''':':
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Cl.,r::ii r~.~.:.l ....ith r.c:-:t :.!f:' p;!.p.lhi, ., Loire.:! c~i to thr.o
di:;1.:1ac.....tl tr:n.l:it dt t::r.' :dt)~r.;;~ hirli...::u..! t(,~ ,:~u.' o....rlt'r
rind ~;.hdl1 ht'l'l"C' t:":.c cu.rt"lnt "lX~-.J'1 .111r."" ".!("I n.nt [.:lr
t.hp un):..
(f.) ,d} The City shall make available official forms
to tenants entitled "Notice of Desire to Renew Tenancy 9~
Ht~m=c.:r}' l:-~: t.,1I and "Notice of Change of Address" which
12
may be utilized by tenants to meet the ~~~~i~it~ notice
requirements of thi::: s~::'ti~~ ~h;UJ.LV~:-.(::l.-: !") it:-.;! (d) cf
th .Hi Sc.~:t" .:.on.
l{g;J (f) A copy of any notice required to be provided
to an owner or a displaced tenant under this Section
shall be provided to the Santa Monica Rent Control Board
within ti';$ t'S); ~ (2) business days after it is
(.."..;" ...:....
provided to the owner or displaced tenant.
{~T{~} No owner or agent of the owner shall rent a
residential housing unit in an earthquake damaged
structure to a new tenant unless the owner has complied
with the terms of this section or is otherwise excused
from complying with this section.
(:.) fill Any displaced tenant may prosecute a civil
action to enforce this section. The relief available to
the tenant in such an action shall include money damages,
equitable relief, and reasonable attorneys' fees.
()) l : : The right of a displaced tenant to n.:"'........ Cl
tt'I'U:1t.y or reoccupy a residential housing unit as
established in this Section is in addition to any right
to reoccupancy or rl~;U--^, 1 that may otherwise be
authorized by law or contract.
lkl:(j) Notwithstanding any provision of section 5
of this Ordinance to the contrary, a displaced tenant may
have priority for the rental of affordable housing units.
This priority will be established by administrative
13
regulation to be adopted by the city's Housing and
Redevelopment Division.
SECTION 4. 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,
are hereby repealed or modified to that extent necessary to effect
the provisions of this Ordinance.
SECTION 5. 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 any competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The city council hereby
declares that it would have passed this Ordinance, 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.
14
SECTION 6. 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 newspaper
wi thin 15 days after its adoption.
This Ordinance shall be
effective 30 days from its adoption.
APPROVED AS TO FORM:
~~L~
MARSHA JON~ MOUTRIE
city Attorney
15