SR-400-001-03 (14)
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City council Meeting 6-28-88
b-B
JUN 2 R 19BB
Santa Monica, California
STAFF REPORT
TO:
Mayor and City Council
SUBJECT:
City Attorney
Ordinance Adding Chapter 4A to Article IX of
the Santa Monica Municipal Code Implementing
Program 12 of the Housing Element
FROM:
At its meeting on June 14, 1988, the city Council
introduced for first reading an ordinance adding Chapter 4A to
Article IX of the Santa Monica Municipal Code implementing
Program 12 of the Housing Element.
The ordinance is now
presented to the City Council for adoption.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be adopted.
PREPARED BY: Robert M. Myers, City Attorney
Laurie Lieberman, Deputy city Attorney
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CA:RMM:lld137/hpc
city council Meeting 6-28-88
Santa Monica, California
ORDINANCE NUMBER
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA ADDING CHAPTER 4A TO
ARTICLE IX OF THE SANTA MONICA MUNICIPAL CODE
IMPLEMENTING PROGRAM 12 OF THE HOUSING ELEMENT
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTION 1. Chapter 4A is added to Article IX of the Santa
Monica Municipal Code to read as follows:
CHAPTER 4A. INCLUSIONARY HOUSING PROGRAM.
SECTION 9420. Findinqs and Purpose. The city
Council finds and declares:
(a) The city of Santa Monica has a
responsibility to address the needs of its residents
and residents in the region from all social and
economic groups for decent, affordable housing,
while at the same time maintaining an economically
sound and healthy environment.
(b) The Housing Element of the General Plan
of the City of Santa Monica adopted on January 25,
1983, provided for an inclusionary housing program
to address the need for decent and affordable
housing in Program 12.
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(c) The city Council of the City of Santa
Monica properly considered and adopted the
components of an inclusionary housing program which
would implement the goals of Program l2 at its
meeting on March 10, 1987.
SECTION 9421. Definitions. The following
words or phrases as used in this Chapter shall have
the following meanings:
Dwelling unit. One or more rooms, designed,
occupied, or intended for occupancy as separate
living quarters, with full cooking, sleeping, and
bathroom facilities for the exclusive use of a
single household.
Elderly Household. A household where the head
of household is at least 62 years of age.
HUp. The United States Department of Housing
and Urban Development or its successor.
Inclusionary Unit. A rental dwelling unit as
required by this Chapter which is affordable by a
household with low or middle income.
Income Eligibility. The gross annual
household income considering household size and
number of dependents, income of all wage earners,
elderly or disabled family members, and all other
sources of household income.
In-Lieu Fee. A fee paid to the city by a
developer subject to this Chapter in-lieu of
providing the required inclusionary units.
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Market Rate Unit. A dwelling unit as to which
the rental rate is not restricted by this Chapter or
by the Rent Control Law.
Maximum Allowable Rent. A monthly housing
charge which does not exceed 30t of the median
income established by BUD, adjusted for income
level, household size, and unit size. This charge
shall represent full consideration for housing
services and amenities as provided to market rate
units in the project, whether or not occupants of
market rate units pay separate charges for such
services and amenities. Housing services and common
area amenities include but are not lim.ited to the
following: parking, use of common facilities
including pools or health spas, and utilities if the
project is master-metered. Notwithstanding the
foregoing, util i ty charges for use of natural gas
and electricity, to the extent individually metered
for each unit in the project, may be passed through
or billed directly to the occupants of inclusionary
units in the project in addition to maximum
allowable rents collected for those inclusionary
units.
"Middle" and "Low" Income Levels. Determined
periodically by the City based on the United states
Department of Housing and Urban Development (HUD)
estimate of median income in the Los Angeles-Long
Beach Primary Metropolitan statistical Area. The
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two maj or income categories are: "llliddle income"
(81% to 100% of the area median) and "low income"
(80% or less of the area median). state law also
defines "moderate" income as between 81% and 120% of
the area median. Further adjustment shall be made
by household size as established by the city. The
Planning Department shall make available a list of
middle and low income levels as adjusted, which list
shall be updated periodically by the city and riled
with the City Clerk.
Off-Site Construction. Erection of low or
middle income housing units on land other than that
on which the developer intends to place a proj ect
within the city of Santa Monica.
proj ect. A residential development or land
subdivision proposal for which City permits and
approvals are sought.
SECTION 9422. Applicability.
(a) An inclusionary requirement shall apply
to all multi-family residential market rate dwelling
units resulting from new construction or condominium
or cooperative conversion of projects of five units
or more.
(b) The construction of any multiple rental
or limited equity cooperative housing which has a
recorded deed restriction requiring occupancy of all
units in the project by and rent levels of all units
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affordable to low and moderate income persons or
households for a period of not less than 15 years,
and which is either financed by federal, state, or
local housing assistance, or owned by religious or
other non-profit organization shall be exempt from
the requirements of this Chapter.
(c) (1) This Chapter shall apply to any
project for which an application was approved after
March 10, 1987, except to the extent that the
provisions of this Chapter conflict with the
conditions of approval of any such map.
(2) A project approved prior to March
10 I 1987, shall be subject to the provisions of
Program 12 as they existed on the date of approval
of the application for the project, unless the
applicant voluntarily requests that the provisions
of this Chapter apply to the project. In the event
of such a request, the provisions of this Chapter
shall apply to such project unless the request is
barred by the provisions of Section 9424{h) of this
Chapter.
(3) Whenever any person requests that
in order to satisfy the requirements of Program 12
of the Housing Element that an in-lieu fee be paid
pursuant to the provisions of this Chapter or any
other law, the amount of the in-lieu fee shall be
the amount then in effect at the time of payment,
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regardless of the date of approval of the
application for the project.
SECTION
9423.
Project
Development
Requirements.
(a) This Chapter requires that fifteen
percent (15%) of the total number of units to be
constructed in any project developed by an applicant
at one location, designed for permanent occupancy
and containing five (5) or more units, shall be
affordable by households of low- or middle-income.
The requirements of this Section may al ternati vely
be satisfied at the developer's discretion by
off-site developEent of required units as described
in Section 9423(9), or an in-lieu fee payment
pursuant to the provisions of Section 9424.
(b) In determining the number of inclusionary
units required, any decimal fraction less than 0.5
shall be rounded down to the nearest whole number,
and any decimal fraction of 0.5 or more shall be
rounded up to the nearest whole number.
(c) At the time of filing an application with
the city's Planning Department for permission to
develop mUlti-family market rate dwelling units, the
developer shall specify the n~mher, type, location,
size, and construction schedule of all dwelling
units proposed to be developed and shall indicate
which of the dwelling units, if any, are intended to
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satisfy the
this Chapter.
Cd) If located on the project site,
inclusionary units shall, whenever reasonably
possible, be evenly distributed throughout the
project. The applicant may reduce either the size
or interior amenities of the inclusionary units as
long as there are not significant identifiable
differences between inclusionary and market rate
units visible from the exterior of the units and the
size and design of the units are reasonably
consistent with the market rate units in the
project, provided that all units conform to the
requirements of the applicable Building and Housing
Codes. Inclusionary units provided shall have at
least the same nwn}:)er of bedrooms as the average
unit in the project and if the floor area of the
inclusionary units is not the same as the floor area
of the ~arket rate units at the project, each of the
inclusionary units shall satisfy the following
minimum total floor area, depending upon the ntlm~er
of bedrooms provided:
o Bedroom
1 Bedroom
2 Bedrooms
3 Bedrooms
4 Bedrooms
inclusionary housing require~ents
of
500 Square Feet
600 Square Feet
850 Square Feet
1080 Square Feet
1200 Square Feet
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(e) All inclusionary units in a project or a
phase of a project shall be constructed concurrently
wi th the construction of market rate un! ts in the
project or phase of that project.
(f) Inclusionary units developed on the
project site must be rental units in rental or
ownership projects.
(9) Inclusionary units required pursuant to
this Chapter may be provided at a location wi thin
the City other than the project site at the
developer's discretion. Any such off-site
inclusionary units shall be completed by the
developer of the market rate housing project prior
to the issuance of a Certificate of Occupancy for
the market rate housing unit project and shall
conform to the requirements of the applicable
Building and Housing Codes and the minimum size
provisions cited in Section 9423(d). The occupancy
and rents of any such off-site units shall be
governed by the terms of a deed restriction similar
to that used for on-site inclusionary units Which
shall take precedence over all other covenants,
liens, and encumbrances of the property on which the
off-site construction is performed.
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SECTION 9424. In-Lieu Fees for Inclusionary
Housing.
(a) Whenever the City requires as a condition
of approval of a market-rate housing development
that t.he development include inclusionary housing
uni ts pursuant to this Chapter, the developer may
elect to pay a fee to the City in lieu of providing
such on-site or off-site inclusionary units in
accordance with the provisions of this section.
(b) The amount of the fee pursuant to this
Section shall be determined as follows: $5.73 per
gross square foot of floor area of the project for
the first 10,000 square feet of developm.ent and
$6.77 for each gross square foot of floor area in
excess of 10,000 square feet. In determining the
required fee, the floor area of anyon-site
inclusionary units shall be excluded from the floor
area calculation.
(c) The amount of the fee set forth in
subsection (b) above shall be reduced by the amount
of the fee imposed on residential development by the
Santa Monica-Malibu Unified School District as
permitted by California Government Code Section
65995.
(d) Any fee required pursuant to this Section
shall be adjusted for inflation by the percentage
change in the Consumer Price Index ("CPI") between
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the date of adoption of this Chapter through the
month in which payment is made. For purposes of
this Section, CPI shall mean the index for Urban
Wage Earners and Clerical Workers for All Items for
the Los Angeles/Long Beach/Anaheim statistical area,
as publ ished by the Uni ted states Department of
Labor, Bureau of Labor Statistics.
(e) Any fee required pursuant to this Section
shall be paid in full before a Certificate of
Occupancy is issued for any unit in the housing
project.
(f) Any fee required by this Section shall be
secured by execution of an irrevocable letter of
credit in favor of the City or other security
acceptable to the city for the total amount of the
obligation. The letter of credi t or other
acceptable security shall be delivered to the City
prior to the issuance of a building permit for the
housing development. The letter of credit or other
security shall be released and returned to the
developer immediately upon payment of the in-lieu
fee.
(9) Any payment lI'lade pursuant to this Section
shall be deposi ted in a Reserve Account separate
from the General Fund to be used only for
development of low and moderate income housing. Up
to twenty-five percent (25%) of in-lieu fee funds
may be used to develop affordable housing for
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moderate-income households, and up to fifteen
percent (15%) of in-lieu fee funds may be used for
program administration costs.
(h) This Section shall not apply to any
housing development for which an agreement has been
executed between the City and developer to provide
for an on-site inclusionary unit and the
inclusionary unit has been occupied.
(i) This section shall not apply to any
housing development in which a density bonus has
been given pursuant to Government Code Section
65915.
SECTION 9425. Fee Waivers. The Condominium
and Cooperative Tax described in section 6651 of the
Santa Monica Municipal Code and the Park and
Recreation Facilities Tax established in Chapter 6C
of Article VI of the Santa Monica Municipal Code
shall be waived for required inclusionary and for
low and moderate income units developed by the City
or its designee using in-lieu fee fUnds. However,
any developer who elects to pay an in-lieu fee shall
not be eligible for any fee waiver under this
Section.
SECTION 9426. Densi ~y Bonus and Other
Incentives. Projects which meet applicable
requirements of State law as a result of
inclusionary units are entitled to density bonuses
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or other incentives in accordance with the
provisions of such law.
SECTION 9427. Pricing Requirements for
Inclusionary Onits. The city shall, on an annual
basis, set maximum allowable rents for inclusionary
uni ts, adj usted by the number of bedrooms. Such
maximum allowable rents shall be set at rates such
that qualified occupants pay no more than thirty
percent (30%) of the maximum gross monthly household
income eligible for such a unit. The owner of each
inclusionary unit shall retain discretion in the
selection of eligible renters for that unit,
provided that such renters meet the requirements of
Section 9428.
SECTION 9428. Eligibility Requirements.
(a) Only low- and middle-income households
shall be eligible to occupy inclusionary units. The
City may establish administrative guidelines for
determining household income, minimum and maximum
occupancy standards and other compatible eligibility
criteria.
(b) The following individuals, by virtue of
their position or relationship, are ineligible to
occupy an affordable unit:
(1) All employees and officials of the
City of Santa Monica or its agencies, authorities,
or commissions who have, by the authority of their
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position, policy-making authority or influence
affecting City housing programs.
(2) The immediate relatives, employees,
or other persons gaining significant economic
benefit from a direct business association with
public employees or officials.
(3) The immediate relatives of the
applicant or owner, inclUding spouse, children,
parents, grandparents, brother, sister,
father-in-law, mother-in-law, son-in-law,
daughter-in-law, aunt, uncle, niece, nephew,
sister-in-law, and brother-in-law.
(c) In setting priorities among eligible
households, first priority shall be given to Santa
Monica residents, second priority to persons
employed in Santa Menica, and third priority to
other persons.
SECTION 9429. Relation to Onits Required by
Rent Control Board. Low- and middle-income units
developed as part of a market rate project, pursuant
to replacement requirements of the Santa Monica Rent
Control Board, shall count towards the satisfaction
of this Chapter if they otherwise meet appl icable
requirements for this Chapter including, but not
limited to, the income eligibility requirements of
the Chapter, deed restriction requirell1ents, and
pricing requirements. New inclusionary units
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required by the Rent Control Board which meet the
standards of this Chapter shall count towards the
satisfaction of this Chapter.
SECTION 9430. Deed Restrictions. Prior to
issuance of a building permit for a project subject
to the requirements set forth in this Chapter, the
applicant shall submit deed restrictions or other
legal instruments setting forth the obligations of
the applicant under this Chapter for City review and
approval. Such restrictions shall be effective for
the lifetime of the project.
SECTION 9431. Availability of Government
Subsidies. It is the intent of this Chapter that
the requirements for inclusionary units shall not
depend upon the availability of federal or state
housing subsidies. This Section does not, however
preclude the use of such programs or subsidies.
SECTION 9432. 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 requirements of
this Chapter. All inclusionary units shall be
rented in accordance with this Chapter.
SECTION 2. Any provision of the Santa Monica Municipal
Code or appendices thereto inconsistent with the provisions of
this ordinance, to the extent of such inconsistencies and no
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further, is hereby repealed or modified to that extent necessary
to affect the provisions of this ordinance.
SECTION 3.
If any section, subsection, sentence, clause,
or phrase of this ordinance is for any reason held to be invalid
or unconsti tutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of the ordinance.
The Ci ty Council hereby
declares that it would have passed this ordinance and each and
every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether
any portion of the ordinance would be subsequently declared
invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall
attest to the passage of this ordinance. The city Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption.
effective 30 days from its adoption.
The ordinance shall be
APPROVED AS TO FORM:
0.rt,~kvv...\.-v~
ROBERT M. MYERS U
City Attorney
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