SR-400-001-03 (22)
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APR 2 6 1988
CA:RMM:lld136X/hpc
City Council Meeting 4-26-88
Santa Monica, California
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SUPPLEMENTAL STAFF REPORT
TO:
Mayor and city council
FROM:
City Attorney
Ordinance Adding Chapter 4A to Article IX of
the Santa Monica Municipal Code Implementing
Program 12 of the Housing Element
SUBJECT:
The ordinance distributed last week adding Chapter 4A to
Article IX of the Santa Monica Municipal code implementing
Program 12 of the Housing Element contained one typographical
error on page 5. In the accompany ing ordinance, under Section
9423, paragraph (a) , the phrase "subsection 9423" has been
changed to nsection 9423(g)," the correct section setting forth a
description of off-site development of required units. No
substantive changes have been made to the ordinance.
PREPARED BY: Robert M. Myers, city Attorney
Laurie Lieberman, Deputy city Attorney
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APR 2 6 1988
CA:RMM:lld137/hpc
city Council Meeting 4-26-88
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. Findings 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 considered and adopted the components of an
inclusionary housing program which would implement
the goals of Program 12 at its meeting on March 10,
1987.
SECTION 9421. Definitions. The fallowing
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.
HUD. The United States Department of Housing
and Urban Development or its successor.
Inclusionary unit. A rental housing 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
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.
Maximum Allowable Rent. A monthly housing
charge which does not exceed 30% 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 proj ect, 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 1 imi ted to the
following: parking, use of common facilities
including pools or health spas, and utilities if the
project is master-metered.
"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
two major income categories are: "middle 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
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shall be updated periodically by the city and filed
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.
Project. A residential development or land
subdivision proposal for which city permits and
approvals are sought.
Senior Citizen Household. A household where
the head of household is at least 62 years of age.
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
affordable to low and moderate income persons or
households for a periOd of not less than 15 years,
which is either financed by federal, state, or local
housing assistance, or owned by religious or other
non-profit organization and shall be exempt from the
requirements of this Chapter.
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(e) Projects approved under inclusionary
standards in existence prior to the effective date
of these requirements which have not begun
construction or executed deed restrictions as of
March 10, 1987, shall, subject to appropriate
administrative and legal requirements, satisfy the
inclusionary obligation by meeting the standards of
this Chapter.
SECTION
9423.
projeot
Development
Requirements.
(a) No less than 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 also be satisfied by off-site
development of required units as described in
Section 9423(g), 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 the plans are submitted to
the City's Planning Division for initial review, the
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proj ect proposal shall specify the number, type,
location, size, and construction scheduling of any
dwelling units to be developed and shall indicate
which units are proposed for rental for the purpose
of satisfying the inclusionary housing requirement.
(d) If located on the project site,
inclusionary units shall, whenever reasonably
possible, be 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 in the
uni ts visible from the exterior and the size and
design of the units are reasonably consistent with
the rest of 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 number of
bedrooms as the average unit in the project and if
the incl usionary units are not the same as the
non-inclusionary units, they shall be subject to the
following minimum size limits:
0 Bedroom 500 Square Feet
1 Bedroom 600 Square Feet
2 Bedrooms 850 Square Feet
3 Bedrooms 1080 Square Feet
4 Bedrooms 1200 Square Feet
(e) All inc1usionary units in a project and
phases of a project shall be constructed
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concurrently with the construction of market rate
units.
(f) Inclusionary units
project site must be rental
ownership projects.
(g) Inclusionary units required pursuant to
this Chapter may be provided at a location within
the city other than the project site. 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.
developed on
uni ts in rental
the
or
SECTION 9424.
Housing.
(a) Whenever the City requires as a condition
of approval of a market-rate housing development
that the development include inclusionary housing
uni ts pursuant to this Chapter. the developer may
pay a fee to the City in lieu of providing such
In-Lieu Fees for Inclusionary
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on-site inclusionary housing 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 development 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
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 the Los
Angeles/Long Beach statistical area, as published by
the united states Department of Labor, Bureau of
Labor Statistics.
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(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 credit or other
acceptable security shall be delivered to the city
prior to the issuance of a building permit for the
housing development.
(g) Any payment made pursuant to this Section
shall be deposited in a Reserve Account in 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 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
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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. Density Bonus and Other
Incentives. Projects which meet applicable
requirements of state law may be entitled to density
bonuses or other incentives in accordance with the
provisions of such law.
SECTION 9427. Pricing Requirements for
Inclusionary Units. Required inclusionary units
shall be priced so that designated households pay no
more than thirty percent (30%) of gross monthly
household income for rent. The City shall, on an
annual basis, set maximum allowable rents for
inclusionary units, adjusted by the number of
bedrooms. The project owners shall retain
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discretion in the selection of eligible renters
provided that such renters meet the requirements of
Section 9428.
SECTION 9428. E1iqibility 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 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
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.
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(c) In setting priorities among eligible
households, first priority shall be given to Santa
Monica residents, second priority to persons
employed in Santa Monica, and third priority to
other persons.
SECTION 9429. Relation to units 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 program if they otherwise meet applicable
requirements for this program including, but not
limited to, the income eligibility requirements of
the program, deed restriction requirements, and
pricing requirements. New inclusionary units
required by the Rent Control Board which meet the
standards of this program shall count towards the
satisfaction of this program.
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 program for City review and
approval. Such restrictions shall be effective for
the lifetime of the project.
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SECTION 9431. Availability of Government
Subsidies. It is the intent of this program that
the requirements for inclusionary units shall not be
determined by the availability of federal or state
housing subsidies. This 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, which does not meet
the requirements of this Chapter. No unit subject
to the inclusionary requirements of this Chapter
shall be rented except 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
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 unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of the ordinance. The City 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
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--
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.
The ordinance shall be
effective 30 days from its adoption.
APPROVED AS TO FORM:
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ROBERT M. MYER~
city Attorney
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