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Santa Monica, California
TO:
Mayor and City Council
FROM:
City Attorney
SUBJECT:
Ordinance Adding Chapter 9.56 to the Santa
Municipal Code Establishing An Affordable
Production Program
Monica
Housing
INTRODUCTION
At its meeting of July 14, 1998, the City council introduced for
first reading an ordinance adding Chapter 9.56 to the Santa Monica
Municipal Code establishing an Affordable Housing production
Program. At that meeting, the City Counc~l modified the ordinance.
The accompanying ordinance is now presented to the City council for
adoption.
RECOMMENDATION
It is respectfully recommended that the accompanying ordinance be
adopted.
PREPARED BY:
Marsha Jones Moutrie, City Attorney
Barry A. Rosenbaum, Deputy City Attorney
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JUL 2 11998
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City Council Meetmg 7-21-98
Santa Moruca, Callfonua
ORDINANCE NUMBER 1918 CCS
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
ADDING CHAPTER 9 56 TO THE SANTA MONICA MUNICIPAL CODE
ESTABLISHING A1'{ AFFORDABLE HOUSING PRODUCTION PROGRAM
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS
SECTION 1 Chapter 9 56 IS hereby added to the Santa Maruca MUniCipal Code to read
as follows
CHAPTER 9 56
AFFORDABLE HOUSING PRODUCTION PROGRAM
9.56.010. Findings and Purpose.
(a) Santa MOnica IS a coastal City In a prime location, bemg bordered by the City of Los
Angeles to the north, east and south The combmatlon of a scenic oceanside location, excellent
climate, and the ready avallabIllly of urban faClhtles, servIces, and entertamment make Santa
MOnica an extremely deSIrable place to hve
(b) The land area of the City IS very small- approximately eIght (8) square miles Santa
MOnica IS already a fully bUilt-out City, With only sixty-two vacant residential parcels It also has a
population ofapprmomately 90,000 Santa MOnIca's population denSIty, 11,200 persons per
square mIle, IS the second hIghest among nelghbonng and nearby JunsdlctlOns, and IS the densest
among coastal communltles m Los Angeles County
(c) The vast majonty of new market rate multI-famIly development m the CIty IS not
affordable to lower-Income households Moreover, market conditIOns, Includmg the Iugh cost of
resIdentIal land, constructIOn costs, and the avaIlability and cost of finanCing, make the
development of affordable hOUSing m the CIty extremely dIfficult
(d) In additIOn, the consumptIOn patterns of the upper-income households who occupy
these new market rate multl-farmly hOUSing urnts create a need for affordable hOUSing In the CIty
More speCIfically, households create demand for goods and servIces In the pnvate sector, such as
retatl goods and medIcal services, and jobs In the public sector, such as teachers and murnclpal
se,,~ces The hIgher the household's Income, the more demand IS created New market rate
multI-famIly hOUSing In Santa MOnica accommodates upper-Income households almost exclusively
because of the hIgh rent or purchase pnce required to occupy It Supplymg goods and servIces
suffiCIent to meet the demand created by upper-Income households In new market rate mull1-
famIly housing requIres workers across the pay scale spectrum, including lower-wage employees
(e) The City has prepared an analysIs of thiS relationshIp between new market rate
apartment and condomInium development In the City and the need for affordable hOUSing created
by thIS new development TIllS study focuses on the relationshIp between the demand for goods
and semces created by households who occupy new market rate multi-family development In the
C1ly, the number oflow-wage workers In public agencies and busmesses needed to satIsfY thIS
demand, and the costs of prodUCing the affordable hOUSing needed by these workers This study
demonstrates the range per square foot which could be Imposed on new market rate multl-fanuly
development to help finance the development of affordable housmg needed to meet the demand
created by market rate development
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(f) In addItion, because the Cny IS bUilt-out, land avaIlable for residential development in
the CIty IS limited Further, land whIch could be used for development of housing for low Income
households IS being depleted by development oflngh cost housing Thus, continued new
reSIdential development which does not include or contribute toward the cost of housing for
lower Income households will only serve to further exacerbate the current affordable hOUSing
shortage
(g) Requmng developers to assIst In the productIOn of affordable hOUSing IS also
consistent With the City's long-standing commItment to achIeve and maintain a SUitable hVlng
environment including decent hOUSing for persons at all economic levels ThIS mumclpal
commitment conforms With State and Federal poliCIes and IS a pnncIpal goal of the Cny's recently
adopted 1998-2003 HOUSing Element Update
(h) The CIty has hlstoncally effectuated thiS commitment through extraordinary efforts
mamfest In vanous Cny laws, polICIes and programs For Instance, the City's voters have adopted
Imtlatlve measures whIch stnve to maintain and promote affordable housmg In the CIty The Rent
Control Charter Amendment, adopted In 1979, has as Its primary purpose the protection of
affordable hOUSing and has hIstoncally been the City's most important legIslative tool for
mamtammg the supply of affordable housmg SimIlarly, PropOSitIon R, adopted by the voters m
1990, mandates that thIrty percent of all new multI-famIly housmg umts constructed m the CIty
each year be affordable
(I) The Clly's zorung laws and POliCIeS also mclude substantial mcentlves for the
productIOn of affordable housmg, including heIght and denSity bonuses and reduced parkmg
reqUirements In addItion, the CIty operates a number of programs which faCIlitate the productIOn
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of affordable housmg These mclude loans to pnvate, for-profit developers and owners and
fundmg to non-profit agencies to acqUire or construct affordable housing units
(j) Despite the City's prime locatIOn and lngh real estate values, the City has historically
been highly successful in mamtalmng Its economic diverSIty Accordmg to the 1998-2003 Update,
23 percent of the City's households are very low mcome, J 6 1 percent are low mcome, 20 7
percent are moderate Income,. and 40 1 percent are upper Income Moreover, 53 percent of
households resldmg m rent-controlled apartments are very low- and low-mcome This diverSity IS
an essenual element of the City's character It sets the City apart from all other similarly situated
coastal clUes m CalIforrua
(k) However, notwlthstandmg the City's ongomg commitment and efforts, changes m
State and Federal law and market conditIOns are making It increasingly difficult for the City to
ensure a contmued supply of affordable housmg In 1986, the State enacted the EllIs Act wlnch
enables a property owner to cease operating property as residential rental property More
recently, m 1995, the State enacted the Costa-Hawkins Rental Housmg Act which phases out
lImits on the rents which a property owner may charge when re-rentmg voluntanly-vacated UnIts
Except m lImited Circumstances, It elIminates the City's abilIty to control the rent a property
owner can Impose when a UnIt IS mltlally rented Although the full Impacts of Costa-Hawkins wIll
not be felt untIl 1999 and the years thereafter, studIes prepared by the Santa MOnIca Rent Control
Board trackmg the rent levels of UnIts decontrolled as a result ofCosta-Hawkms demonstrates
that these umts are already 10smg their afford abilIty Thus, thiS law IS havmg and will contmue to
have a significant Impact on the Cny's supply of affordable housmg Moreover, there IS an
extremely low vacancy rate for the eXlstmg rental housmg stock In additIOn, reductIons m State
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and federal fundmg for affordable housmg, changes 10 these programs, and the potential
explratlOn of controls on rents m federally-assisted proJects all hmder the Cny's ablhty to provide
or promote affordable housmg In short, changes m State and federal law senously threaten the
CIty's eXIsting affordable housmg stock The dechne m the affordabihty of ttus housmg stock IS
further exacerbated by the production ofluxury market rate housing GIven current economIc
condltlons and the general deSirablhty of the CIty, the new housmg costs will only conlinue 10
mcrease, thereby further exacerbating the groWIng shortage of housing affordable to very low-
and low-mcome households m the City
(I) Cahfomla' s Housmg Element law reqUIres each cIty and county to develop local
housmg programs deSIgned to address tls "fair share" of eXlstmg and future housmg needs for all
mcome groups The CIty's 1998-2003 Housmg Element Update establishes the CIty's faIr share
at 3,219 housmg umts of whIch 1,369 (43%) should be affordable to very low- and low-income
households
(m) The Housmg Element Update catalogues a dozen fundmg sources that the CIty
utlhzes to assist m the development of affordable housmg These substantIal resources are
projected to assist m the development of 403 new umts affordable to low- and moderate- mcome
households However, thiS represents only twenty-one (21%) of the estImated need for new
affordable housmg m the City as estabhshed by the Ctly's fair share Consequently, the total
housmg needs of the CIty exceed the City's available resources and the City's ablhty to meet these
needs The vast maJonty ofhousmg umts have been and Will continue to be produced by the
pnvate housmg mdustry
(n) This Affordable Housmg Production Program will benefit the City as a whole Each
development whIch contnbutes to affordable housmg through the provIsIons oftlus Chapter
augments the City's housing nux, helps to mcrease the supply of housmg for all econonuc
segments of the commumty, addresses the affordable housmg need generated by the development,
and thereby supports a balanced commumty wluch IS beneficIal to the pubhc health, safety and
welfare of the CIty
9.56.020. Definitions.
The following words or phrases as used m thIS Chapter shall have the followmg meamngs
Affordable Housing Fee A fee paId to the CIty by a multifamIly project applicant
pursuant to Section 956070 of this Chapter to assIst the City m the production ofhousmg
affordable to very low- and low-mcome households
Affordable IIousing Unit A housmg umt developed by a multifamily project applIcant
pursuant to SectIOns 9 56 050 or 9 56 060 of this Chapter whIch wIll be affordable to very low- or
low-mcome households
Dwelling Unit. One or more rooms, deSigned, occupied, or mtended for occupancy as
separate hvmg quarters, WIth full cookmg, sleepmg, and bathroom faCIlIties for the exclusive use
of a smgle household Dwellmg umt shall also mclude smgle room occupancy umts as defined In
Santa Moruca MUnICIpal Code Section 9 04 02 030 790
Floor Area. Floor area as defined In Santa MOnIca MUnICipal Code SectIOn
90402030315
HUD. The Umted States Department of Housing and Urban Development or ItS
successor
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Income Eligibility. The gross annual household Income conSldenng household size and
number of dependents, Income of all wage earners, elderly or disabled family members, and all
other sources of household Income
Industrial/Commercial District Any district desIgnated m the Santa MOnica Zomng
Ordmance as a commercIal or mdustnal dlstnct
"Low," "Very Low," and "Moderate" Income Levels. Income levels detennmed
penodlcally by the CIty based on the Umted States Department of Housing and Urban
Development (HUD) estImate of medIan family Income In the Los Angeles-Long Beach Primary
MetropolItan StatIstIcal Area The major Income categones are "low-mcome" (Sllcty percent or
less of the area medIan), "very low-mcome" (fifty percent or less of the area medIan), and
"moderate-Income" (one hundred percent or less of the area medIan) Adjustment shall be made
by household SIze as establIshed by the City
Market Rate Unit. A dwellIng umt as to whIch the rental rate or sales pnce IS not
restncted by thIS Chapter
Maximum Affordable Rent. A monthly hOUSIng charge whIch does not exceed one-
twelfth ofthmy percent of the maxImum very low-, low-, and moderate-Income levels as defined
In thIS Chapter and adopted each year by the City ThIS charge shall represent full consIderatIon
for hOUSing services and amenitIes as proVIded to market rate dwellIng umts In the project,
whether or not occupants of market rate dwellIng umts pay separate charges for such sernces and
amenities Housmg servIces and common area amemtles Include, but are not limited to, the
follOWIng parlang, use of common facihtles Including pools or health spas, and utlhtles [fthe
project IS master-metered NotwIthstanding the foregomg, utilIty charges, to the extent
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IndIvidually metered for each urnt In the project, may be passed through or billed directly to the
occupants of affordable housmg UnIts In the proJect m addItion to maXImum allowable rents
collected for those affordable housmg units
Muttifamily Project. A multIfamIly residential development, Including but not 11Imted to
apanments, condolllirnums, townhouses, or the multlfanuly resIdential component of a Illixed use
proJect, for whIch Clly pemufs and approvals are sought
Multifamily Project Applicant Any person, firm, pannershlP, aSSOCiatIon, JOint
venture, corporatlOn, or any entIty or combinatIOn of entitles which seeks City development
pemuts or approvals to developed a mull1famIly project
!\lultifamily Residential District. Any dlStnct deSIgnated In the Santa Momca Zomng
OrdInance as a multIfamily reSIdentIal dlslnct
Parcel Parcel as defined In Santa Momca Mumclpal Code Sectlon 9 04 02 030 570
Vacant Parcel. A parcel In a multIfamily resldenl1al dIstrict that has no resldenl1al
structure located on It at the time that a multIfamily proJect IS filed WIth the CIty's Planrnng
Depanment No demohtlOn of structures shall be permItted except In accordance with Santa
Monica Mumclpal Code Section 9 04 10 ] 6 ~ ~
9.56.030. Applicability of Cbapter
(a) The obhgatlOns estabhshcd by thIS Chapter shall apply to each multIfamIly project for
which a development applIcatIOn was deemed complete on or after March ], 1998 mvolvmg the
constructIOn oftwo or more market rate umts No building permIt shall be Issued for any
multlfarmly project unless such constructIon has been approved In accordance WIth the standards
and procedures provided for by thIS Chapter
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(b) Multlfarruly projects for which a development applIcation was deemed complete prior
to March 1, 1998 shall be subject to the proVIsions of Santa Momca MUniCipal Code Section 9 28
tl seq as they eXisted on the date the application for the project was deemed complete
Section 9.56.040. Affordable Housing Obligation
All multifamily project applicants subject to the proviSIons oftlus Chapter pursuant to
Section 956030 shall choose one of the following options to meet the requirements oftlus
Chapter
(a) Providing affordable hOUSing umts on-sIte In accordance With Section 9 56 050
(b) PrOViding affordable hOUSing umts off-site In accordance with SectIOn 9 56 060
(c) Paymg an affordable hOUSing fee In accordance with SectlOn 9 56 070
(d) Acqumng land for affordable housmg III accordance With SectIOn 9 56 080
A multifamily project apphcauon will not be deemed complete until the apphcant has
submitted plans and proposals whIch demonstrate the manner m whIch the requirements oflhls
Chapter will be met
Section 9.56.050. On-Site Option
A mulllfamtly project apphcant may meet the affordable housmg obhgatlOns established by
this Chapter by proVIding affordable housing units on-site in accordance with the following
reqUirements
(a) The multifamily project apphcant agrees to construct at least (I) twenty percent (20%)
of the total umts ofa project for low-mcome households or (n) ten percent (10%) ofthe total
uruts of a project for very-low Income households or (m) one hundred percent (100%) of the total
umts of a project for moderate-Income households In an lndustnallComrnerclaJ District Any
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fractional affordable housmg Unit that result from the formulas of thiS subsectIOn (a) shall be
treated as a whole affordable housmg unit (I e any resultmg fraction shall be rounded up to the
next larger mteger) and that urnt shall also be butlt pursuant to the proVisions of thiS section The
Plannmg and Commumty Development Department shall make available a list of very low-, low-,
and moderate-mcome levels adjusted for household size, the correspondmg maXImum affordable
rents adjusted by number ofb-edrooms, and the ITIJmmum number of very low- or low-mcome
umts reqUIred for typical SIzes of mulu-famtly projects, which lIst shall be updated penodlcally
(b) The multifamtly project applIcant may reduce either the size or mtenor amemties of
the affordable housmg umts as long as there are not slgmficant Identifiable differences between
affordable housmg Units and market rate UnIts visible from the extenor of the dwellmg umts,
provIded that all dwellIng umts conform to the reqUIrements of the applicable BUlldmg and
Housmg Codes However, each affordable housmg unIt provided shall have at least two
bedrooms unless (I) the proposed project compnses at least runety-five (95%) one bedroom UnIts,
excludmg the manager's Untt, m whIch case the affordable housmg UnIts may be one bedroom,
(u) the proposed project compnses at least mnety-five percent (95%) zero bedroom uruts,
excludmg the manager's umt, m which case the affordable housmg umts may be zero bedroom
umts or (lll) the proposed project compnses zero and one bedroom umts, excludmg the manager's
uOlt, m whIch case the affordable homing umts must be at least one bedroom uOlts The desIgn of
the affordable housmg umts shall be reasonably consistent With the market rate Units in the
project An affordable housmg umt shall have a mmlmum total floor area, dependmg upon the
number of bedrooms proVided, no less than the followmg
10
o Bedrooms 500 Square Feet
I Bedroom 600 Square Feet
2 Bedrooms 850 Square Feet
3 Bedrooms 1080 Square Feet
4 Bedrooms 1200 Square Feet
Affordable housing umts m multifamily projects of one hundred (100) umts or more must be evenly
disbursed throughout the multifamily project to prevent undue concentrations of affordable housmg
umts
(c) All affordable housmg urnts m a multifamily project or a phase of a multifamily
project shall be constructed concurrently With the construction of market rate umts m the
multtfamIly project or phase of that project
(d) On-site affordable housmg umts must be rental umts m rental projects In
ownershIp projects, affordable housmg umts may be eIther rental umts or ownership units
Affordable housmg ownershIp umts shall comply Wlth reqUirements concerrung sales pnce,
monthly payment, and limited eqUity and resale restnctlOns as established by resolutIOn of the CIty
Council to ensure that subsequent purchasers are also mcome-quallfied households
(e) Each multifamily project applicant, or hlslher successor, shall submIt an annual report
to the CIty Identlrymg which umts are affordable umts, the monthly rent (or total housmg cost If
an ownershIp umt), vacancy mformatlon for each affordable umt for the pnor year, venfication of
mcome of the household occupymg each affordable umt throughout the pnor year, and such other
mformanon as may be reqUired by City staff
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(f) A multifamily project applIcant who meets the requIrements of thIs SectIon shall be
entItled to the densIty bonus development standards established m Santa Momca MUnIcIpal Code
Secllon 9 041014040
(g) All resIdential developments provldmg affordable housmg on-sIte pursuant to the
provIsions of this Section shall receive pnonty bUlldmg department plan check processmg by
whIch housmg developments Shall have plan check revIew m advance of other pendmg
developments to the extent authonzed by law
Section 9.56.060. Off-site Option.
A multlfarruly project applIcant may meet the affordable housmg oblIgatIons establIshed by
tlus Chapter by proVldmg affordable housing units off-SIte m accordance with the following
reqUIrements
(a) The multIfamIly project applicant shall agree to construct the same number of
affordable housmg UnIts as specIfied In SectIon 9 56 050
(b) The multifamily project applicant shall idenllfY an alternate site sUItable for resIdential
housmg which the project apphcant eIther owns or has SIte control over (e g , purchase
agreement, optIon to purchase, lease) subJect to CIty reVIew to ensure that the proposed
development IS consIstent With the City's hOUSIng objectIves and projects
(c) The off-site umts shall be located Wlthm a one-quarter mIle radIUS of the market rate
UnIts
(d) The off-site umts shall satIsfY the requuements of subsectIOns (b)-(f) of SectIOn
9 56 050
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( e) The off-site umts shall not count towards the satisfactIOn of any affordable housmg
obhgallon that development ofthe altemallve site with market rate umts would otherwise be
subject to pursuant to this Chapter
(t) ExceptIOns to the location of the off-site umts specified In this Section may be granted
by the Plannmg Commission on a case-by-case basIs upon a shoWing by the multifamily project
applicant, based upon substarihal evidence, that the locatIon of off-Site umts In a location different
from that specified In this SectIOn better accomplishes the goals of this Chapter, mcludlng
maXimIzing affordable housing production and disperSing affordable housmg throughout the City
(g) The Housmg DIVISIon of the Resource Management Department shall prepare
adrmmstratlve gUIdelines to implement this SectIOn
Section 9.56.070. Affordable Housing Fee.
A multlfanuly project apphcant may meet the affordable hOUSing obhgal1ons estabhshed by
thiS Chapter by paymg an affordable housing fee In accordance With the followmg requirements
(a) An affordable hOUSing fee may be paid In accordance With the follOWing formulas
(1) Multifamily Projects In Mulllfamlly ReSidentIal DIstncts
Affordable housing umt base fee X floor area of multifamily project
(2) Multifamily Projects In Multifamily Resldentlal Dlstnets on Vacant Parcels
Affordable housmg umt base fee X floor area of multIfamily project
X 75%
(3) MultlfamIly Projects In IndustnaVCommefClal Dlstncts on Parcels that are
either not already developed With multifamIly housmg or are already developed
With mulllfamlly housmg, but the multlfamlly project preserves the eXlstmg
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multtfamIly housmg or a Category C Removal Permit has been obtained for the
eXlstmg multifamily housing
Affordable housing urnt base fee X floor area of project devoted
to residential uses X 50%
(b) For purposes of this SectIOn, the affordable housing urnt base fee may be estahhshed at
least every two years by resolutIon of the City Council The amount of the affordable housing
fee that the multIfamIly project apphcant must pay shall be based on the affordable housing Unit
base fee m effect at the lime that the apphcatlon for the mullifamIly project IS deemed complete
(c) The amount of the affordable housmg umt base fee may vary by product type
(apartment or condominIUm) and shall reflect, among other factors, the relatIonshIp between new
market rate multl-falmly development and the need for affordable housmg and the Impact that the
fee wIll have on the finanCial return of multifamIly project apphcants
(d) The fee shall be pald m full to the CIty pnor to the City grantmg any approval for the
occupancy of the project
(e) The CIty shall depOSIt any payment made pursuant to thIS Section III a Reserve
Account separate from the General Fund to be used only for development of very low- and low-
Income housmg, admInlstralive costs related to the productIOn of thIS hOUSing, and momtonng
and evaluatIon of this Affordable Housmg ProductIon Program Any mOnies collected and
mterest accrued pursuant to thiS Chapter shall be committed wIthm five (5) years after the
payment of such fees or the approval of the mullifamIly project, which ever occurs later Funds
that have not been appropnated within tIus five year penod shall be refunded on a pro rata share
to those multifamily project applicants who have paid fees durmg the penod Expenditures and
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comrrntments of funds shall be reported to the City CouncIl annually as part of the City budget
process
(f) An affordable housmg fee payment pursuant to thiS SectIOn shall not be conSIdered
proVIsion of affordable housing uruts for purposes of determming whether the multtfamtly project
qualIfies for a density bonus pursuant to Government Code Section 65915
Section 9.56.080. Land Acquisition.
A multlfarrnly project apphcant may meet the affordable housing obhgal1ons establIshed by
thIS Chapter by makmg an Irrevocable offer (a) dedlcatmg land to the CIty or a non-profit
housing proVider, (b) selling ofland to the City or a non-profit housmg prOVider at below market
value, or (c) optIOnIng ofland on behalf of the City or a non-profit housmg proVider Each of
these optIOns must be for a value at least eqUIvalent to the affordable housmg oblIgal1on otherwIse
reqUIred pursuant to thiS SectIOn The multifamily project applIcant must IdentifY the land at the
time that the development apphcatlOn IS filed WIth the CIty Any land offered pursuant to thIS
SectIon must be located WIthin one-quarter mile radIUS of the market rate umts unless the
multIfamIly project applIcant demonstrates that locatmg the land outSide of thIs radIUS better
accomplIshes the goals of thIs Chapter, mcludmg maxlmizmg affordable housmg production and
dlspersmg affordable housing throughout the CIty The City may approve, condll1onally approve
or reject such offers subject to admmlstratlve gUldehnes to be prepared by the Housmg DivlSlon
of the Resource Management Department lfthe City rejects such offer, the multIfamily project
applIcant shall be reqUIred to meet the affordable housmg oblIgatIOn by other means set forth m
thIS Chapter
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Section 9.56.090. Fee waivers.
The Condomlmum and CooperatIve Tax descnbed In SectIOn 6 76 010 of the Santa
Momca Mumclpal Code and the Park and Recreation FactlltIes Tax established In Chapter 6 80 of
Article 6 ofthe Santa Momca Municipal Code shall be waived for required affordable housing
umts and for low and very low Income dwelling units developed by the CIty or ItS desIgnee uSing
affordable housing fees However, any multifamily project applicant who elects to pay an
affordable housmg fee shall not be eligIble for any fee waiver under tllis Section
Section 9.56.100. Pricing requirements for affordable housing units.
The CIty CouncIl shall, by resolutIon. on an annual basIs, set m8Xtmum affordable rents
and m8Xtmum affordable purchase prices for affordable housing units, adjusted by the number of
bedrooms Such maximum affordable rents shall be set at rates such that qualified occupants for
low mcome Units pay monthly rent that does not exceed thirty percent of the gross monthly
household mcome for households earmng sIxty percent of the median income and that qualified
occupants for very low mcome Units pay monthly rent that does not exceed thirty percent of the
gross monthly household mcome for households earnmg fifty percent of the median mcome Such
maximum affordable purchase pnce shall be set at rates such that quahfied occupants for low
mcome Units pay total monthly housmg costs (mortgage payment, property taxes, homeowners'
msurance, property mortgage msurance, homeowners' aSSOCIation fees) that do not exceed thmy-
eIght percent of the gross monthly household mcome for households earmng sIxty percent of the
median Income and that qualified occupants for very low mcome umts pay total monthly housmg
costs (mortgage payment, property taxes, homeowners' msurance, property mortgage Insurance,
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homeowners' aSSOCIatIOn fees) that do, not exceed tinny-eight percent of the gross monthly
household mcome for households earnmg fifty percent of the median mcome
Section 9.56.110. Eligibility requirements.
(a) Only low-mcome and very low-income households shall be eligible to occupy or own
and occupy affordable housmg uruts The City shall develop a list of mcome-qualIfied households
MultIfamily project applicants shall be reqUIred either to select households from the City-
developed list of mcome-qualIfied households or to themselves select income-qualIfied households
which shall be subject to eligibility certIficatIOn by the City
(b) The CIty shall develop ad1ll1rustral1ve guidelines for the tenant and purchaser selection
process detailed m this SectIOn, wluch shall establish, at a 1ll1mmum, the timmg by which
affordable housmg uruts m a project must be leased or sold and occupIed, both Imtially after
Issuance of the certIficate of occupancy for the project and upon subsequent vacancies m the
affordable housmg umt The guidelines may also estabhsh pnoritIes for mcome-qualIfied tenants
(c) The followmg IndIViduals, by vIrtue of their pOSition or relationshIp, are ineligible to
occupy an affordable housmg umt
(1) All employees and offiCIals of the City of Santa Momca or Its agencies, authoritIes,
or Com1ll1SSl0ns who have, by virtue oflhelr pOSitIOn, pnhcy-makmg authonty or mfluence over
the ImplementatIOn of this Chapter and the Immediate relatIves and employees of such City
employees and offiCials
(2) The tnunedlate relatives of the applicant or owner, mcluding spouse, cluldren,
parents, grandparents, brother, SISler, father-m-Iaw, mother-m-Iaw, son-m-law, daughter-m-law,
aunt, uncle, mece, nephew, sister-in-law, and brother-In-law
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Section 9.56.120. Relation to units required by Rent Control Board.
Very low-mcome and low-mcome dwelhng units developed as part of a market rate
project, pursuant to replacement requirements of the Santa Moruca Rent Control Board, shall
count towards the satisfaction of tlus Chapter if they otherwise meet apphcable requirements for
tlus Chapter including, but not hrruted to, the income ehglblhty requirements, deed restriction
reqUIrements, and pncing requIrements New mclusionary umts reqUIred by the Rent Control
Board wluch meet the standards oftlus Chapter shall count towards the sallsfactlon of this
Chapter
Section 9.56.130. Deed Restrictions.
Prior to Issuance of a bUlldmg permit for a project meetmg the reqUirements ofthts
Chapter by provldmg affordable umts on-site or off-site, the multifamIly project applicant shall
submit deed restnctlOns or other legal Instruments settIng forth the obhgatlon of the apphcant
under this Chapter for City review and approval Such restnctlOns shall be effective for at least
fifty-five years
Section 9.56.140. Enforcement.
No bUildIng permit or occupancy permit shall be Issued, nor any development approval
granted, for a project which IS not exempt and does not meet the reqUIrement of thiS Chapter All
affordable housmg umts shall be rented or owned 10 accordance With thiS Chapter
Section 9.56.150. Annual Report.
The HOUSIng DiviSion of the Resource Management Department shall submit a report to
the City CouncIl on an annual baSIS which shall contam mformatlOn concermng the
Implementation of this Chapter ThiS report shall also detail the projects that have received
18
planrung approval dunng the prevIous year and the manner m winch the proVIsions of tins Chapter
were satisfied This report shall further assess whether the provIsions of PropOSItion R have been
met and whether changes to this Chapter or ItS implementation procedures are warranted In the
event the provISions of ProposItion R have not been met, the City Council shall take such actlon
as IS necessary to ensure that the provisions will be met in the future ThiS action may mclude, but
not be hrruted to. amendmg the prOVISIOns of tins Chapter or ItS implementation
Section 9.56.160. Principles and Guidelines.
(a) In addition to the admlmstrative gUIdelines specifically reqUIred by other provisions of
thiS Chapter, the City Manager or hiS or her deSignee shall be the deSignated authonty to develop
and Implement rules and regulatIOns pertammg to tins Chapter, to enter Into recorded agreements
With multifamily project apphcants, and to take other appropnate steps necessary to assure that
the reqUired affordable housmg Units are proVided and are occupied by very low- and lOW-income
households
(b) Wlthm one year from the passage of this Chapter, admmistratlve rules and regulations
penammg to thiS Chapter shall be brought before the City Council for adoptIOn
SECTION 2 Chapter 928 of the Santa MOnica MUniCipal Code IS hereby repealed in ItS
entJrety and the Implementatton gUldehnes adopted pursuant to Chapter 9 28 are rescmded to the
extent that the guldelmes are inconsistent With the proVIsions of this Chapter
SECTION 3 Any provlston of the Santa MOnica MUniCIpal Code or appendIces thereto
inconsistent With the provlSlons of thiS Ordmance, to the extent of such mconslstencles and no
19
further, IS hereby repealed or modified to that extent necessary to effect the provIsIons of this
Ordmance
SECTION 4 Ifany sectlon, subsectIOn, sentence, clause, or phrase of this Ordmance IS
for any reason held to be mvalId or unconslltutional by a deCISion of any court of competent
JunsdlctlOn, such deCISion shail not affect the vahdIty of the remammg 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 invahd or unconstitutIonal without
regard to whether any portion of the ordmance would be subsequently declared mvahd or
unconstitutIOnal
SECTION 5 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 newspaper
wltlnn 15 days after ItS adoptIOn ThiS Ordmance shall become effectIve 30 days from ItS
adoptIon
APPROVED AS TO FORM
l~ sb.:L4k1l~
MARSHA JONES MOUTRlE
CIty Attorney
20
:;/~L
Robert Holbrook. Mayor
State of Cali forma )
County of Los Angeles) ss
Cny of Santa MOllica )
1. Mana M Stewart. Cny Clerk of the eny of Santa MOllica. do hereby certIfY that the foregomg
Ordmance No 1918 (eeS) was mtroduced on July 14. 1998 and adopted on Julv 21. 1998 by the
followmg vote
Ayes
Council members
Femstem. Genser. O'Connor, Rosenstein
Noes
CouncIl members
Ebner. Greenberg, Holbrook
Abstam
CouncIl members
None
Absent
CouncIl members
None
ATTEST
h~-L "L lo C\-r.-~r..J:.
Mana M Stewart, Cny derk