Loading...
SR-0 (6) C!ED:CW:nh Council Mtg.: e . Santa Monlca, California May 22, 1984 flOZ--Pt?D ~lC: Mayor and City Council ~ROM: City Staff SUBJECT: ~ Appeal From a Decision of the Planning Commission Approving Development Review 216, Conditional Use Permit 362 for a 6 Unit Condominium at 1941 Euclid Street. ;...."to.....~..... , ~-o - y ~. t". "e ~ntroductiori ..p-.r 'n Q ,,? ~ .~ ~ ~ Antappeal~o~ the Planning Commission decision approving this project ~{;~~. ~ ~ ha$ been filed by the applicant, Michael W. F01onls, based on the ;~ ~ i~/ ~a~dship that w~ll allegedly result to the appellant from the -.~~ 1t0---~. ~ ~ t~guirement to provide one unlt of the six proposed condominium ~<~..if?' ,~, "4~i. Ul\ata" affordable for low to moderate lncome persons as required by ':; <~:< > " lp~ ~ousing Element of the General Plan. ~:~ !{.~ ,~ ~3~~xg.round ~"",--;r--~ ,L ~T~_~i..~::r- .~... i-~.i~nuary ;~~~~~it construction of a six unit condominium proJect with a ft. ~ :- ~-v. ~:;~~ition that one unlt affordable to households with incomes not ;r- !!r'" .,. ~ ?.;.:~.;::;:;dlng 120% of the (HUD) Los Angeles County median income be ~.A~t ;.:-~yided. ~1"" ~~;;:u .~~~.; ~q~I~rms to all applicable C~ty Code requirements for height, r'~; ~C\f)acks, park~ng, and lot coverage. Current density standards In t- ~ - -i- ~i~Y Counc~l Resolution 6385 and the draft Land Use and Circulation l' 30, 1984 the Plannlng Commission approved DR 216/CUP 362 The project has a recorded Tract Map for 6 units and - < ." rl~~ent would permit 5 units. However, a sixth unit was approved "~ ~~ 6s=a density bonus in connection with the provisions of one afford- :" ~ able unit under Government Code Sect10n 65915. .~'";..- e e Mayor and City Council -2- May 22, 1984 The project has been approved previously. On October 6, 1980 the P1annlng Commission approved Tentative Tract Map 40150 for a 6 unit condominlum building. The Architectural Review Board approved building and landscape plans on October 15, 1980. The City Council approved the Final Tract Map and a building permit was issued on April 20, 1981 just prior to the adoption of the Moratorium. ..-}. In October 1981 the appellant entered into an agreement with the City in connection with the granting of a hardship exemption. The agreement provided that the Developer would he exempted from the ~~ building. moratorium on the condition that the developer pay the City of Santa Monica Housing Author~ty 5% of the gross sales price of the condominium units (approxlmately $ ) in lieu of providing on site l~clusionary units. A copy of the agreement is attached. Because of difficulties obtainlng funding for the project, the appellant did not in1tiate construction and the building permit lapsed. Ord1nance 1251 WhlCh was adopted in June 1982 specifies that wlthout a valid buildlng permlt a hardship exemption no longer exempts a project from Development ReVlew and a project is subject to current requirements. (Ordinance 1251, Section 4h) Because the building permit has explred, the project requires a development permit and 1S subject to current City requirements including the requ1rement to provide 25 to 30% of the units for affordable housing. The appellant argues that his actual hardship ,-< e Mayor and City Council e -3- May 22, 1984 continues and requests that because of the project's history, the / Counc~l consider hlS circumstances and allow hLm to meet the intent of providing afforda~le housing by reducing the price of one unit J,<; _~ ~o approximately $132,000 rather than to the $78,000 price set ....- - , by the City's formula. t ': fn;;apprOVing the project the Planning Commission indicated that its 'uf{~dictio~~ did not include determining hardship and that it would ~pprove the project according to current requirements to provide .~- {c, InJ~nCluS~O~ary unit, the pricing of wh~ch was to be determined ~yi.the demand-based formula applied by the City's Housing Division ",. . -. '- -'i, ~kila; iffojects. This f~rmula prices a typical two bedroom J - r 5ondominiurn at $78,000 as follows: ~ ~ 4--- ;; t >='._ L. ~. .C9.unty ~'f*-'rnedlan lucorne i ~. for family of : '.:- four = $27,400 (HUD) f ~ ,-*- . '--~ - ,- Income range for "moderate income" = 101-120% of County median income '1 Bedroom adjustment formula = .95 (2 bedroom unlt) ~-:- -- ~; -;,,'9 ~.~~~__~ Formula for establishing sales price (based on the formula . : used by-the California Coastal Commission) 2.5 x Med~an Income x Income Range x Bedroom Adjustment = 2.5 x $27,400 x 120% x .95 = $78,090 (selling price of a two bedroom un~t affordable to moderate income persons) " ,-'"<- .... The appellant proposes instead to honor h1S original agreement with the City, described above, but rather than paying an in-lieu fee to the .. e . e Mayor and City Council -4- May 22, 1984 City, would apply a percentage of profit to reducing the cost of one unit which would result ~n a sell~ng pr~ce of approximately $132,000, a price which is contrary to all commonly accepted lending criteria about what a family of 4 earning $27,000 can afford to pay for housing. The appellant contends that the $132,000 price is comparable to prices 0.~ffordable to moderate income households in other jurisdictions; It-:::-: r .~. ~~ ~~~w~ver, has offered no proof or comparable data. ~~lanning staff requested an opinion from the City Attorney as to ,i:;' ~'i~~T" ~'>wliether, on the basis of the history of this project and the appli- "';"'"'~ ~.;. 'j~ .~:- ...-.-0 ~~an~'s claim of continuing hardship, the issue of hardship would ~~.t~2,).- . . justify not requiring conformance to the City's inclusionary housing requirement. City Attorney Informal Opinion No. 84-27 states: ~~:_~~:~~~~- Y~~~~In the appeal, the quest~on of hardship may not be raised. The app11cant's hardsh1p exempt10n has expired. Should the applicant desire to pursue this matter further, a new appli- cation for hardship would be required to be flIed. However, the hardsh1p application would not be of ass1stance to the applicant at this late stage. The appl1cant's former conditional use permit has expired. Accord1ngly, in order to develop the property, a new conditional use permit is requlred. Accordlngly, the sole remedy of the applicant 1S to obtain a permit within the current proceedlngs. ~" C'5.J"' ~'The DR/CUP have now been approved by the Plann1ng Commission within current proceedings but the appellant is not willing to accept the City's requirement in condition #8 (see attached statement of Off1cial ~ction) for~ the terms of providing the affordable unit. The appellant ~ -L~-_ argues that by reducing the price on one unit, he complies with the intent of providing an affordable unit but under pric~ng criter1a different from the City's criter~a. To do so, however, would be '. - . e Mayor and City Council -5- May 22, 1984 lnconsistent with other project approvals, would be contrary to all conventional underwriting criteria, and contrary to the Housing _~ Element of the General Plan. City Council Authority Under the provisions of Section 6 of Ordinance No. 1251 (CCS) the ~ -t-- - ~ :~City Council may affirm, reverse or modify any determination of ~~~ _>"t: ~:- ~the< Planning Commission in regard to an Interim Development Permlt and the decision of the City Councll shall be final. In approving ~ an .o'appJ ication the Commission or Council must find that: 4. The existing and/or proposed public and/or private health and safety facillties (including, but not llrnlted to, sanitation, sewers, storm dralns, fire protection devices, protective services, and public utilitles) will be adequate to accommodate the anticipated results of the proposed development. "-5. The proposed development will not prejudice the ability of the City to adopt a revlsed land use element. 6. The proposed use and locat1on are 1n accordance with good zoning practice, in the public lnterest and necessary that substantlal justlce be done. ~ 7. The proposed use is compatible with existing and potential uses withln the general area, traffic or parking congestion will not result, the publlC health, safety and general welfare are protected and no harm to adjacent properties will result. '- e . ~~ < .' .t~~{<: -~~~-"'... '. . "Mayor '=~ ~~~ ~~;- .; " and City Council -6- lJIay 22,1984 Flnancial Impact '~The recommendation presented in this report does not have a budget/ ....;w~ f~ r -~".; inancial impact. iIrlIIK"~ <0- ~...,...~ ~1 _....""i:I-1 of any credible evidence to support the appellant's - - ~.. s~ertio:ii~~t a $132,000 dwelling unit is affordable to low/moderate ~pme per~ons, to maintain consistency with previous Planning requiring affordable housing to be priced accord- -.~~ ... n~to the~~ove described formula, it is respectfully recommended ~~ -J-1: .~~t the ;_~?1?eal be denied and that the Planning Commission approval ~~.",~ ^~ ~~the p~~~ect according to the original conditions (attached) be -:~ the affordable unlt to be priced according to the City's .....~ ~. andard fg.rmula. ii;; ~ ~-- T~~ .;, :;: - 1: .,'.:""<..:pared by: ff{ktt~achment:-' A. Carol Haldrop :)~ Agreement between the City of Santa Monica and Euclid Habitat. B. Planning Commisslon Statement of Official Action. " ~?- ;t: ~ ~~.-" . .~ ~~ ~i~. ~~" ~~....."...""- ~ -:- '-~; ':-~-rt-,.- ~- lifJL ~ , ~01: ~~ - . _ e'l .;---.. \"-.. -0./" Attachment B AG REe.~ENT 't"lo4 '2C11 - ~E~S AG?X~V~NT, enterec lnto th~s day of Oc~ober 1981, by and between the City of Santa Monica, a chartered ~uniclpal corporatlon of the State of Cal~forn~a (herelnafter "City"), and Euclid Habltat (hereinafter "Developer") 1S made w;:.th reference to the following: R Eel TAL S WHEREAS, on Aprll 22, 1981, City adopted an Emergency Building Moratoriumj and WHEREAS, Developer filed a Claim for Vested Right, Cla~m Number M-Oll, to be exempted from the provisions of the Emergency Builclng Moratorlum to proceed wlth the constructl.on of 6 conaoffilnium unl.ts located at 1941 Euclid Avenue, Santa Monlca, Callforniai and WP.EREAS, City has granted Developer an exemption from the Emergency Buildlng Moratorium on the condltion that Developer pay an in lieu fee to the Houslng Authorlty of the Clty of Santa Monica ln the amount of flve percent (5%) of gross sales price of the condoml.niurn unlts and on the concltlon that Developer enter lnto an agreement w1th Clty ':J':r~ ~'ot. .. \ ")... , .~ ~ r, ,'...r-~_ \...f~-."-" e e ensur~ng the payment of such in lieu fee, NOW, THEREFORE, in conslderatlon of mutual prom~ses and covenants contalned hereln and the good fa~th perfor- mance thereof, Clty and Develope= agree as follows: In Lleu Fee. Develo?er shall pay Clty a fee , ln lleu of provldlng on-slte lDcluslonary unlts in the amount equal to f~ve percent (5%) or the gross sales prlce obtalned from the sale of the condoffilnlum unlts. 2. Creatlon of Accour.t. Prlor to C~ty issuing a certiflcate of occupancy for the condominium units and prior to the sale of any condorolnlUID unlts, an account entltled In-Lleu Fee Payment Account (herelnafter "Account") shall be created at an instltut~on mutually agreed upon between Clty and Developer under terms and condltlons necessary to ensure deposits and clsbursements accord~ng to thlS Agreement. The Account shall be administered, held and d~sbursed pursuant to the terms of this Agreement. DepoSl.ts in the'ACCDunt shall-cons~st of all sale pr.oceeds from~he sale of the condo~inlum unlts.- Developer assigns trr City:a~ security'for~the due performance 0= this Agreement all orits r~ght/-title anc l~terest In and to the Account . and the moneys placed thereln to be helc pursuc~t to the _?- ~ e - e te=~s hereof. C~tyls ~nterest to be subord~nate to pr~or claims of ~ndebtedness ~or construct~on and a Note of ~arch 26, 1980 secured by a Deed of Trust payable to Car: Kl~ne In the amount 0: $90,000 taxes and assessments. 3. D~sbursement of Funds in Account. The funds held 1n t~e acco~nt shall be c~sb~rsed 1n the followlng manner and the following order of pr~CYlty: a. Flrst, as eac~ un~t 1S sold, the Developer shall repay that portlon of the princlpal, ~nterest and loan fees lncurred ~n connectlon wlth the con- structlon loan for the develop~ent. b. Second,. as eac~ unlt 1S sold the City shall recelve a partial payment of the 1n lleu fee 1n the amo~~t of two percent (2%) of the gross sales obta~ned from the sale of the condomln~um unit. c. Thlrd, upo~ sale of the last un1t the Clty shatl rece~ve the r:maln1ng three percent (3%) of the in lieu fee unless the amount in the account is such that this 3% is more than one half of the -~ ~ cr rema~n1ng funds. If the 3% ~s in excess of one half of the Account, the Clty and Developer shall equally share the reffialn~ng ~~rds ~n t~e accou~t. e e 4. ~l~e for Dlsb~rsemer~s. Disbursements from the Account shal~ be made ~n the ~anner agreed to by C~ty and Jeveloper at the tlffie 0: creatlon of the Account, except that clsbuTsements ~o Developer shall not be made until all condO~lr.~U~ un~~s have bee~ so:d anc the City has recelved the entlre payment It 15 en~ltled to recelve pursuant to thlS Agreement. as se~ ~ort~ In 3.e. In connectlon wlt~ a~y tra~sfer of development rights, ceveloper shal~ take suc~ actio~ to blnd the transferee to the terms of thlS agreewent. ThlS s~oulc not app:y to ~he sale of ~ndividual condo~~niUIT unlts by developer. EUCLID HASITAT, A PAR~~rRSH!p Clty of Santa Monica /J?,q- a~{,\?t/J -f-' - I !'~lchael FO:"onJ..s ,I A ./' 001. _ _~ "'" / ..-/ / ./ .-' ~. ,,;'/ ---- -' ~....-' ....---/\ ..-c.-.v-' ~ / ! r_ _ ~ _- 'I" _I' ~ ' " ~ . ~ -J ~ 5~!i;:~-~C~ 4cu/'~ /J1 tPt-V-- Davl.-d Gooper / - P.ON~Y B ENTERPRISES ~~~ Loul.S -\~e;!.der- ~ - Pr~-5{d~en t CHRIS7LNA-CORPORA~IO~ (/(H~JVt-t{~.~<rvV ~o~ert Earr~son, Preslde~t (/ --.-. - -,,-~~~~ p:-;. "~-~- _ .....;-u:"'.~ .j.-_ - '"': -~ ~..:!:~.........~ _ ~ ....,.....__j.~w _ , -.:....- , - e It CITY OF SANTA MONICA DI:.PARTMENT OF ENVIRONMENTAL SERVICES · (213) 393.9975 · 1685. Mam Slrecl, ~ta Momca. Cahfomra 90401 October 2 I 1980 Michael W. Fo1onis A Design Group 1550 18th Street Santa Monica, CA 90404 Dear Mr. Folonis: In response to your letter dated September 30, 1980. r regret to inform you that the City does not have any sites available for the relocation of the structure you are offering to the City. Yours truly, /~/~ JOHN HEMER Director of Redevelopment JH:mh .-.IlI....<::~""ioc_:i-_...~---..~~ /~ ~ ~ B~ ~ 2518 W. Grand Ave. Alh~mhra~ CA. 91801 August 2, l~tiu )Uke Follonis !UCLID HABITAT 155u 16th street Santa Mon~ca, Cal~fornia ~u4u4 Dear Mike, We would like to take this opportunity to thank you and your firm for donating the house that was located at 1~41 Eucl~d Street to our church. The house has been relocated to 714 Echandia Avenue in Boyle Heights of the city of Los Angeles. We are now in the process of rehabilitating the house to meet the building codes. After this house is rehabilitated, ~t will belong to the Mungcal family. They are members of our church and they had a housing need. This need was provided for by our Lord Jesus Christ through your des~re to help. After the house 18 finished and made into a home, there w~ll be a celebration and you will be invited to attend. We again thank you for the opportun~ty of working with you and hope you can cont~nue to provide needed homes to the needy. ;?;Jr~=B' BRUCE KItAGEr-- Project Elder ..::.' 11e .i..""~ . 0/ I D~ Mj/liiel IT {\ / < j' \ ...J.d -ll Atrt1r It"M C"IIW f_~s ~.IIt-.A ~'-,Cf /tU,iY.O ,.. huQ~ ~..... . J<'~"'""" ...["..r~ ~'f. -..... .,.~ J'3r'V""...J'II!J,~ '-- 3S4 South Spnng StrH. SUlI,8fXJ . Los .11$ Cl/dwaa 9fXJ1J .J e OUEC 5 1980 2JJ 9711600 ftJe CtJI1B Mr. Ml.chael Folon~s A Design Group 1550 18th Stree't Santa Monica, Cal~forn~a 904C4 Dear Michael; It was good news to hear that the Coastal Comm~.~ had granted approval for removal of the house that you intend to donate to the Mart~nezl fam~ly. You mentioned on the telephone that as of December 16 the structure could be removed. In rev~ewing all the procedures appears the earliest date wh~ch ~s the week of January 5, 1981. of the procedures that would be the following; that would be involved, it we could move the structure For your informat~on, some ~nvo'. ~d include at least 1. Securing bids from mov~ng contractors. 2. Securing bids from dernol~tion contractors for demolit~on of exist~ng Mart~nezl residence. 3. Prepare work write-up, cost est~mates and securing bids for fo~ndation and util~ty hook-ups, new curb and dr~veway and all proposed rehab~litation to structure be~ng moved. 4. Prepar~ng loan package and secur~ng loan approval for Mart~nezl famlly. On many of the above items, it was impossible for us to begin the process unt~l the Coas~al CommlSS1on had gr~~ted you approv~l to remove the structure. WorKing exped~tiously, however, our best estimate lS the week of January 5 fer removal of the structure. I request your pat~ent indulgence in this matter ~n order to allo~ us sufficlent time to follow through our procedures. S~ncerely, c-~}-/. ~(aH4;j) Raul M. Escobedo ?:-=---'..<~:: x-;":-c:.ge:::: ... . ~/- r -...--.. . ..- /' t,,,,\, .J~ _ ,IL. to- j~ L '-r ,~.. ,~'-- , lit .... 'I......Jt""" ~ . . ~ 4r.. .' IJI ios M!JI1les ~, .... ~ "f7 (\ I j \ I I . J.J-d 1-:..1. ~IW ""- /'WIp Dl,}ueS A....,A~ JJMII;flIt nlA!!()I' "fJfftIC ...~!tImul, ~'[~",~T~ Jl>''''' JJ "w::' t~ HI.III ~1I(Jf "-- 354 South Spnng S1THt S/III,8tXJ e i.DJ AngMs c.Jlf(J(jN 9fXJ13 J e 213917 1fiOO 0118 OCT S 1 !9BO NJ8 ClIIiI Mr. M~chae~ w. Fo~onis A Design Group 1550 18th Street Santa Mon~ca, California 90404 Dear Mr. Folonis: Recently you contacted our Agency w~th an offer to donate a wood-frame, three bedroom house located in the City of Santa Mon~ca. I am pleased to ~nform you that we have identified a family in need who is w~lling to accept your kind donation. The fam~ly ~s Mr. and Mrs. Carlos Martinez who presently res~de at 311 Gertrudes Street, in the Boyle Heights community in the C~ty of Los Angeles. The Martinez' family have seen the house you are offering and are very pleased and excited. The Mart~nez' family live within our Boyle He~ghts I Ne~ghborhood Revital~zation Project Area. The Agency is currently making a concerted effort to conserve the eX1sting hous1ng ~n this predominantly Spanish surname, low-income ne1ghborhood through a var1ety of low- interest hous~ng rehab~litatlon loans. The Martinez' family presently have two units on one lot in wh~ch the immediate and extended family reside. Unfor- tunately, one of the un~ts 15 not rehabilltation feasible and until your offer was made, the Agency had no solution to this problem. We are therefore, propos~ng to accept your offer and move the structure from Santa Monica to the Martinez' property ~n Boyle Helghts. Our Ag€ncy will provide a low-interest loan to the ~4rtinez' family to cover the movlng costs, set-up and hook-up anu to make approprLate rehabl1ltatlon ~provements. We are anxious to proceed on this matter pend~ng clearance ~f necessary regulations and legal channels. The procedures used will be very similar to those involved ~n the Salvador Mungcal resi- dence which you prevlously donated to our revltalization project area. , , r\.c: e Mr. Michael w. Foloni~ - .'0 -2- October 31, 1980 We look forward to working with you again and greatly appre- ciate your sensitivity to conserving and re-using an ~mportantly needed hous~ng stock. , t.1j . Sincerely, ~>>{,a4:t- Raul M, Escobedo Project Manager 1L i-~ cc: F. Silva C. Kane :