Loading...
SR-8-A (213) p f:\atty\muni\strpts\mjm\affhsg.2d city council Meeting 7-21-98 ~ d. .~ {tUg "trjAMdin~ <31\ JUl 2 1 . 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 ~A JUL 2 11998 '< f latty\muru\law\barry\aflhsg3 ord 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 2 " (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 3 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 4 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 6 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 7 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 8 (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 9 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 II (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 12 ( 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 13 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 14 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 15 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, 16 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 17 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