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SR-0 (89) Exh/b/I- ---.---- ..." LtJTM:CPO: w/proprpc COUNCIL MEETING: November 19, 1991 Santa Monica, California TO: Mayor and City Council FROM: city staff SUBJECT: Planning Commission Recommendation on Implementation Alternatives for Proposition R. IHTRODUCTIOB This report provides the city Council with the Planning Commission recommendations on Proposition R. The Planning Commission voted 4-2 in support of asking the City council to extend for 2-) months the existing moratorium ordinance to allow the Commission to formulate appropriate and thoughtful recommendations. BACKGROmm The Planning Commission on October 16, 1991 conducted a public hearing and on October 25, 1991 discussed .their recommendations related to the implementation of Proposition R. Planning commissioners Morales, Polhemus, pyne, and Rosenstien voted in favor of aSking the City council to extend the existing moratorium ordinance for 2-3 months so that the commission could thoroughly review the information contained in the summary Report, Technical Analysis, and financial proformas. The - 1 - commission would then conduct another public hearing on December 11, 1991 to formulate their recommendations to the city Council. Commissioners Gilpin and Chair Mechur voted no, Commissioner Nelson was absent. Although the Planning Comm~ssion requested additional time, individual commissioners provided the fOllowing comments: o Evaluate the the proposed dwelling unit threshold limit. Examine the impact on small developments, in particular, three unit owner/occupied projects. Perhaps provide a rebate on in-lieu fees if the owner occupies one of the units for a specified period of time. o Evaluate the proposal to round-up. The proposal in the report may result in more than a 30t compliance rate. o Evaluate other alternative scenarios. Alternatives may include, a four unit project providing one unit on site and paying an in-lieu fee for the 60% unit, or providing all units on-site without a rounding up requirement. o Evaluate in-lieu fees that are based upon a project's geographic location. o Examine the number of condominium developments in the pipeline and calculate the amount of potential in-lieu fees that may be collected. Look at how many affordable units may be developed using the in-lieu fees. o Reconsider the proposal linking Rent Controlled units with a 60% or less maximum allowable rent to this program. o Evaluate the geographic distribution of the 60% units the City may be producing. will this program result in the production of only 60% units in future city housing projects. o Evaluate the present program and examine who presently resides in existing affordable housing units. The program should provide units for people of color, and those who are presently rent burdened. o Examine the experience of other cities who may have on-site affordable hous~ng programs. - 2 - - , o Provide arguments for and against the proposed implementation alternatives. o Examine the possibility of reducing the required number of parking spaces for on-site affordable units. o Evaluate the possibility of eliminating density requirements and applying a floor area ratio concept to housing developments. o Examine a land banking program, a bond program and other funding mechanisms for the production of affordable housing. Evaluate the existing barriers that prevent the production of affordable housing. o Develop a maximum and minimum unit size for the affordable units that may be provided on-site. o Evaluate how this program will impact the quality of life for existing residents. The program may provide incentives for building to the maximum permitted density. o Evaluate this program in the context of all the other City housing programs, Proposition R is not an isolated program. o ~end Proposition R to revise annual accounting. Examine the possibility of averaging production over multiple years and carrying over excess production of affordable units into subsequent years. RECOMMEHDATI Olf It is recommended the Council take into consideration the comments and recommendations of the Planning Commission. Prepared By: Paul Berlant, Director of LUTM Suzanne Frick, Planning Manager Land Use and Transportation Management Department Program and Policy Development Division - 3 -