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SR-052284-12B .. ~O~ -005 r .i..... _ C/ED:CW;nh Council Mtg.: May 22, 1984 Santa Monica, Californ~a 1:4 - B MAY 2 2 11M TO: Mayor and City Councl1 FROM: City Staff SUEJECT: Appeal From a DeC1Slon of the Planning Commlsslon Approvlng Development Review 216, Condltlonal Use Permlt 362 for a 6 Unlt Condomlnium at 1941 Euclld Street. Introductlon An appeal of the Plannlng Comrnlssion decislon approvlng thlS project has been filed by the appllcant, Michael W. Folonls, based on the hardshlp that wlll allegedly result to the appellant from the requirement to provlde one unlt of the six proposed condominlum unlts affordable for low to moderate lncorne persons as requlred by the Housing Element of the General Plan. Background On January 30, 1984 the Plannlng Commlsslon approved DR 216/CUP 362 to permit construction of a SlX unlt condomlnlum project wlth a condltlon that one unlt affordable to households wlth incomes not exceedlng 120% of the (HUn) Los Angeles County median lncome be provided. The project has a recorded Tract Map for 6 units and conforms to all appllcable Clty Code requlrements for helght, setbacks, parklng, and lot coverage. Current denslty standards ,~ Clty Councll Resolution 6385 and the draft Land Use and Circulation Element would permit 5 units. However, a sixth unit was approved as a denslty bonus In connectlon with the provisions of one afford- able unlt under Government Code Sectlon 65915. (~-B MA't 2 2 1984 or II *-" . Mayor and City Council ~2- May 22, 1984 The proJect ha~ been approved previously. On October 6, 1980 the Planning Commlssion approved Tentative Tract Map 40150 for a 6 unlt condomlnlum bUlldlng. The Architectural ReVlew Board approved bUlldlng and landscape plans on October IS, 1980. The Clty Councll approved the Flnal Tract Map and a bUlldlng permit was lssued on April 20, 1981 just prior to the adoptlon of the Moratorlum. In October 1981 the appellant entered lnto an agreement wlth the Clty ~n connection w~th the granting of a hardshlp exemptlon. The agreement provlded that the Developer would be exempted from the buildlng moratorlUffi on the condltlon that the developer pay the Clty of Santa Monlca Houslng Authorlty 5% of the gross sales price of the condomlnlum unlts In lleu of providlng on slte lnclus10nary units. A copy of the agreement 15 attached. Because of difflculties obtalnlng funding for the project, the appellant dld not inlt1ate construction, and the bUllding permlt lapsed. Ordlnance 1251, which was adopted 1n June 1982,speclfies that without a valld bUlldlng permit a hardsh1p exemptlon no longer exempts a proJect from Development Review, and a proJect 1S subJect to current requlrements. (Ordlnance 1251, Sectlon 4h) Because the buildlng perrn1t has expired, the proJect requires a development perm1t and is subJect to current City requlrernents lncluding the requ1rement to provlde 25 to 30% of the unlts for affordable houslng. The appellant argues that his actual hardshlp .~ . Mayor and Clty Councll -3- May 22, 1984 contlnues and requests that because of the proJect's hlstory, the Council conslder hlS clrcumstances and allow hlm to meet the lntent of provldlng affordable houslng by reduclng the prlce of one unlt to approxlmately $132,000 rather than to the $78,000 price set by the Clty'S formula. In approvlng the project the Plannlng CommlSSlon lndlcated that lts Jurlsdictlon dld not lnclude determinlng hardship and that lt would approve the proJect accordlng to current requirements to provlde an lncluslonary unit, the priclng of whlch was to be determlned by the demand-based formula applied by the Clty'S Housing Dlvlsion to similar proJects. ThlS formula prlces a typical two bedroom condominlum at $78,000 as follows: L. A. County medlan lncome for famlly of four = $27,400 (HUD) Income range for "moderate income" = 101-120% of County medlan income Bedroom adjustment formula = .95 (2 bedroom unlt) Formula for establlshlng sales price (based on the formula used by the California Coastal Commlsslon) 2.5 x Medlan Income x Income Range x Bedroom AdJustment = 2.5 x $27,400 x 120% x .95 = $78,090 (selllng price of a two bedroom unlt affordable to moderate lncome persons) The appellant proposes lnstead to honor hlS orlg1nal agreement wlth the City, described above,but rather than paying an In-lleu fee to the . . . Mayor and Clty Council -4- May 22, 1984 Clty, would apply a percentage of proflt to reduclng the cost of one unlt WhlCh would result In a selllng prlce of approxlmately $132,000, a prlce WhlCh is contrary to all commonly accepted lending crlterla about what a famlly of 4 earnlng $27,000 can afford to pay for houslng. The appellant contends that the $132,000 prlce is comparable to prlces affordable to moderate income households ln other JurlsdlctloDS; however, has offered no proof or comparable data. Plannlng staff requested an oplDlon from the Clty Attorney as to whether, on the baS1S of the hlstory of th15 proJect and the appll- cant's clalm of contlnulng hardshlp, the issue of hardshlp would ]ustlfy not regulrlng conformance to the City's incluslonary houslng requlrement. Clty Attorney Informal Oplnlon No. 84-27 states: In the appeal, the question of hardshlp may not be raised. The appllcant's hardshlp exemptlon has expired. Should the applicant desire to pursue thlS matter further, a new appll- catlon for hardshlp would be requlred to be flIed. However, the hardship appllcation would not be of asslstance to the app11cant at thlS late stage. The appllcant's former conditional use permlt has expired. Accordingly, in order to develop the property, a new conditlonal use pernlt lS requ1red. Accordingly, the sole remedy of the appllcant 15 to obtaln a permlt withln the current proceedlngs. The DR/CUP have now been approved by the Plannlng Commlssion wlthin current proceedlngs but the appellant 15 not willlng to accept the City's requlrement ln cond1tlon #8 (see attached state~ent of Offlclal Action) for the terms of provlding the affordable unlt. The appellant argues that by reducing the prlce on one unlt, he compiles wlth the 1ntent of provldlng an affordable unlt but under prlclng crlter~a dlfferent from the Clty'S crlterla~ To do so, however, would be Mayor and City Council -5- May 22, 1984 lncons~stent wlth other proJect approvals, would be contrary to all canventlonal underwrltlng criterla, and contrary to the Houslng Element of the General Plan. Clty Council Authorlty Under the prov~sions of Sectlon 6 of Ordlnance No. 1251(CCS) the Clty Councll may afflrm, reverse or modlfy any determlnation of the Plannlng Commlsslon ln regard to an Interlm Development Permlt and the declslon of the City Councll shall be flnal. In approvlng an applicatlon the Commlsslon or Council must flnd that: 1. The Development is conslstent with the flndlngs and purpose of Ordinance No. 1251(CCS). 2. The proposed plans comply with eXlstlng regulatlons contalned ln the Munlclpal Code except as noted. 3. The existing and/or proposed rlghts-of-way for both pedestrlan and automoblle trafflc wlll be adequate to accommodate the anticlpated results of the proposed development lncludlng off-street parklng faCllltles and access thereto. 4. The existlng and/or proposed publlC and/or prlvate health and safety facilltles (lncludlng, but not 11mlted to, sanltation, sewers, storm dralns, flre protectlon devlces, protectlve services, and publlC utilltles) wlll be adequate to accommodate the anticlpated results of the proposed development. 5. The proposed development wlll not prejudlce the abillty of the Clty to adopt a revlsed land use element. 6. The proposed use and locatlon are ln accordance wlth good zoning practlce, in the publlC lnterest and necessary that substantial ]Ustlce be done. 7. The proposed use is compatlble w~th existlng and potentlal uses wlthln the general area, trafflc or parking congestlon will not result, the publlC health, safety and general welfare are protected and no harm to adjacent properties wlll result. f Mayor and Clty Councll -6- May 22, 1984 FlnanClal Impact The recommendation presented In thlS report does not have a budget/ f1nanc1al impact. Recornmendat1on In the absence of any credlble evidence to support the appellant's assertion that a $132,000 dwelllng unlt lS affordable to low/moderate lncome persons, to malntaln conslstency with prevlous Plannlng CommlSSlon actlons requlrlng affordable houslng to be prlced accord- lng to the above descrlbed formula, 1t 1S respectfully recommended that the appeal be denled and that the Plann1ng Commlssion approval of the proJect accordlng to the orlginal cond1t1ons (attached) be afflrmed, the affordable unlt to be pr1ced accordlng to the C1ty'S standard formula. Prepared by: Carol Haldrop Attachment: A. Agreement between the Clty of Santa Monlca and Eucl1d Hab1tat. B. Plannlng Commission Statement of Offlclal Act1on.