Loading...
SR-400-001-03 (7) } ...' e .. e - ID-A HB 2 5 "" CjED:PC:KW:nh CouncIl Mtg: Ljpo ....OO/~Kfa~onIca, CalifornIa February 25, 1986 TO: Mayor and CIty Councll FROM: C~ty Staff SUBJECT: Recommenda tIon to Adopt Resolut lon of InItIatIng Amendment of Program 12 of Element of the General Plan. Intent~on the HOUSIng INTRODUCTION ThIS staff repor t transmIts the recommendatIon of the plannIng CommiSSIon that the CIty CouncIl adopt a ResolutIon of IntentIon to beg In formal proceed Ings to amend Program 12 of the CIty'S Housing Element. BACKGROUND program 12 of the Houslng Element establishes a 25-30% Incluslonary houslng reqUIrement for new hOUSIng developments of three unIts or more. InItIally, concerns about Program 12 were raIsed In the context of CouncIl and PlannIng CommIssIon dISCUSSIon of an In-lIeu fee ordInance which would have allowed developers of small proJects to satlsfy thelr Incluslonary oblIgatIons by payment of an In-lIeu fee. In response to the concerns raIsed by CouncIlrnembers, CommISSIoners, developers and others, the Planning CommiSSIon apPolnted a subcommIttee to revIew program 12. The consensus of the subcommIttee was that changes to program 12 should be made, ,o-~ FEB 2 5 1986 - 1 - . ' , It e and that the HousIng Element reVISIon process should be InItIated. To provIde a prellffilnary focus for dIScussIon, the subcommIttee prepared tentatIve amendments to program 12, as well as poss~ble elements of an Implementlng ordlnance. These items are provlded In Exhlblt 1. The subcommlttee prepared these Items for dlScuss~on purposes only, and the PlannIng Commiss Ion has not endorsed them, nor IS the City CouncIl beIng asked at thIS tIme to approve or adopt them. On Saturday, February 8, 1986 tne PlannIng Commlsslon conducted a PublIC Hear lng on the subcommIttee's prelImInary recomrnenda tIon (see ExhIbIt 1) to amend Program 12 of the Clty'S Houslng Element. A summary of the hearIng lS prOVIded as ExhIbIt 2. The CommIssIon approved a motIon to recommend to the Council the adoptlon of a ResolutIon of IntentIon to amend Program 12, wIth speclf IC amendments to be developed dur Ing the Hous Ing Element amendment process. In partIcular, the CommISSIon would like an analys1s of mechanIsms for adJustment of the program ln a more expedIent manner than IS currently avaIlable. AdoptIon of the ResolutIon by the CIty Councll w111 begln the formal amendment process. By adoptIng the ResolutIon of IntentIon at thIS tIme, the CounCIl IS not asked to approve the exhIbIts to thlS report. The Plannlng CommISSIon will be addreSSIng tne lssues presented In that report and after further delIberat10n and Input from the publlC WIll return to the Councll wIth recommended changes. - 2 - e e The process for amending Program 12 Includes the following: AdoptIon of CIty Councll ResolutIon of IntentIon to Amend Program 12 Staff analysls and preparatlon of recommendatIons and environmental documentatIon for presentation to the PlannIng CommIssion. Staff wIll seek input from the Planning CommIssion subcommIttee, the HousIng CommiSSIon, community and busIness groups, and other Interested persons In formulatIng specIfIC recommendatlons. PlannIng CommiSSIon publIC hearIng and recommendatIon for reVISIon to program 12. CIty CounCIl publlC hearIng and adoptIon of reVIsed Program 12. ReVIew by the State of Callfornla would also be reqUIred prior to adoptlon of any amendments to the HOUSIng Element. It IS estImated that the entIre process WIll take four to SIX months to complete. BUDGET/FINANCIAL IMPACT The recommendatIon of thIS report has no budget/fInancIal Impact. RECOMMENDATION It IS respectfully recommended that the CIty CounCIl adopt the proposed ResolutIon of IntentIon to amend the HOUSIng Element. Prepared by: D. Kenyon Webster, SenIor Planner CIty Planning DivIsIon ExhIbltS: 1. PlannIng Commlsslon SubcommIttee Report. 2. Summary of Planning Commission PubllC HearIng. 3. ResolutIon of IntentIon - 3 - ExhIblt 1 SUM}~RY O~ANNING CO~~ISSION PROGR~2 DISCUSSION CommlSSloner Israel moved that the Plannlng CommlSS10n off Ie lally recommend to tne Cl ty Coune 11 that 1 t IS sue a notIce of Intention to modIfy the General Plan ~n respect to Houslng Element Program 12 and that the subcommIttee report be sent to them as advlsory materIals ln connectIon WIth that recommendatIon. The rnotlon was seconded. CommISSIoner Heche responded that she was concerned about the percentage fIgure expressed In the subcommIttee 1 s adVIsory memorandum. She asked that it be clearly stated that ultImately the program should include a SImple mechanIsm WhiCh allowed adJustment of the Incluslonary percentage as Clrcumstances or needs may change. CommiSSIoner Israel saId that he could except thIS amendment. CommISSIoner Hebald-Heymann commented that she felt that the In-lIeu fees should go down rather than up In order to encourage development to bUIld more unlts. Commlssloner KIrshner responded that as tentatIvely structured by the subcommIttee, the number of unlts that are bUIlt will not be affected by ~he In-lieu fee. Commlssloner Shearer asked for a summary of the process by WhICh any change In the HOUSIng Element has to be made. Staff responded that the process begIns With a resolutlon of Intentlon by the CounCIl. The Councll will refer the matter back to the PlannIng ComrnlsSlon. Staff wIll more than lIkely have to do some envIronmental work on the matter. The Commlsslon wlll act upon the amendment and then forward the matter to the Cl ty Coune 11 who wIll ul tirnately approve the amendment and the envlronmenta1 documentatlon. PublIC hearings must be conducted by both the CommISSIon and CounCIl. A vote was taken on the motlon and Its amendment. votIng yes were Commlssloners Hebald-Heymann, HeCht, and KIrshner. CommISSIoner Shearer voted no. Those Israel, pc020886 e e Exh,b,t 2 M E M 0 RAN DUM CITY PLANNING DIVISION COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT CITY OF SANTA MONICA DATE: February 5, 1986 TO: The Honorable PlannIng CommlSSlon FROM: PlannIng Staff SUBJECT: Transm~tta1 of Hous~ng Element Program 12 RecommendatIon Attached for your reVIew are the recommendatIons of the Comm~sslon's subcommittee regardIng the Inc1uslonary program of the CIty'S HousIng Element. The subcommIttee of Commlssloners Perlman, KIrshner, and Israel. PlannIng hOUSlng conSIsts The proposed lnclusionary requl.rements are based upon an evaluatlon of the effectIveness of the eXIstIng Incluslonary progr am, costs of developIng affo rdable hous lng, the exper lence of other ]urlsdlctlons, and the economIC Impact of Incluslonary reqUIrements on proJects of varYlng SIzes. Staff concurs 'inth the subcomm~ttee's recommendatIons. 1'hlS matter IS set for publlC hearIng and Saturday, February 8,1986, at 9:30 A.M. Chambers. Comm~sSlon reVIew on In the C~ty CounCIl Recommendation Is respectfully recommended that the Plann~ng ComffilSSlon allow l~terested members of the publlC to comment on the subcommIttee's recommendat~ons, follOWIng which the Comm~SSlon adopt the S~bCo~illl~tee's recommendatIons and forward chem to the C~ty Counc~l for ~ts reVlew. DKW:klc Attachment: proposed Changes to Houslng Element Program 12 e e January 31, 1986 ?ROPOSED C~~GES TO HOUSING ELEM~NT PROGR&~ 12 Th~s is a ?roposal to the Plann~ng Com~sslon, from the Subcommittee appo~nted for thIS purpose. The approprIate process is ror the Planning Commission as a whole to recommend :0 the CIty CouncIl that ~t InItIate the process of changIng HouSlOg ~~ement Program 12. Par~ or thIS process wlll =eoulre the matter to be of~~cially referred to the PlannIng CommIssion for public hearIngs, etc. The HOUSIng Element IS necessar~ly broad and general. After It is revised. it WIll stlll be necessary far an ~mplementlng ordinanc~ to be prepared. The Subco~ttee felt that It would be qUIte useful. If not essentIal, to discuss Its ldeas as to what the detaIls or such an implementIng ordinance might be, Slnce that seems the best way to most clearly present and reVIeW the likely effect and ImplementatIon of a reVIsed HOUSIng Element Program 12. Hence, the results of such dis~~sslon appear later in th~s ~emo. ~ Refer to ~he annotated copy of a~~ached (pages 73-76). The first portIon or the second ?aragraph of 2ART 1 ~s to be =e?laced wath the folloWing: ThlS incluslonarf program shall be desl~ed to prOVIde housing affordable to ~e~sans ~th ~ncomes at 80% or less of the Couney ~edian. The inclus~onary requlrement shall be proportIonal to the square rootage af ne~ market rate hcus~ng Inc:uded ~n eac~ suoJec: pro]ec:. InItially the ratIO shall be 15%. E"~s rat~o may be ari:usteci by the C~ty Councll, followi~g ~eVleW and recommenaat~an by the ?lannlng Co~sslon, no more often than once every c~o years, ~ased on ~~anges :~ t~e ~eed ~or an :ncluslonary reqUIrement, economIC =easIbll:ty at ?ar~lcular leve:s or for ?roJec~s or particular SIZes, and the avallaolllty or ocher slg~lf:canc benefIts to the CIty. The l~u:e~ent:ng JrdInance may ?rovlde for satIsfactlon oi chis :ncluslonary recu:re~ent JY on-slte hOUSIng. or:-slte hOUSIng, an In-lleu fee to be held ~y t~e CIty and dedIcated express:y Co ?rOV~dIng lncluSlona=y hOUSIng under City dl~ec~~on. or a comblnat~on or Chese elements. e e Projects with less than four (4) units shall be exempced entirely from the lnclusionary requ1rement. All projects receiving approval to actually construct an lnclus10nary unit shall be ellgl~le for a denS1ty bonus 1n the same 1ncluslonary ratlo as stated above, wlth the incluslonary portlon to at least equal the space constructed under the denslty bonus ?rovlsion. In lieu fees, subject to formula increases to recognIze the effec~ of inflatlon, shall be established with due regard to the City's ability to obtaln the benef1ts of State-mandated density bonuses. Projects including less than nlne (9) new market rate unlts are to be subject to progressively reduced in lieu fees. PART 2 should be deleted entirely, but wlCn the additlon or the zollowlng to PART 1. The expliclt subtltle MPART I" can then be deleted as ~ell. The lncluslonary houslng ordinance which lmplements thlS ?~ogram ~y provlde encouragement, Vla specific lnCentlves, to projects Nn~crt ?rOvlae low or moderate income hous~ng In great~r proport~ons than ~nlmum reaUlremen~5. SPECIFIC ELEME~TS OF IMPLEMENTI~G ORDINANCZ The followlng comments and descr1pclons =eflect the Subcom~:tee's :hlnKlng as to reasonable and llkely proVls~ons In an lmplementlng ordlnance, wnlch are conSlstent wlth and would carry out the Intent ot :~e revlsed ?rogram 12. 1. 3-unIt and 2-unlt projects are explicltly exe~pted. 2. The City's use of 1n-lleu fees is expllcltly oandated and :lilllted to p~ovlde affordable houslng at the level of 80% or :ess oi County mealan income. 3. If the RCS mandates new lnclusionary unlts In a ?artlcuiar ?ro]ect, at the 80% lncome level (as contrasted WIth reDlacemenc lnc~uslonary unlts), the ordinance should not requlre duplicaclon under ChIS ?rogram, that 1S, any such ~ew RCB-mandated unIts are permltted to satisfy the requlrements of tnls programas well. -- e e 1 I ! I 4. As a policy ~cter, there should be a slight ~conomlC bias (approximately 5-20%) towards actually building lnclusionary units rather than paying the in l1eu fee, based on scaff analysis of the net cost of on-site inclusionary unlts. 5. Based on ?rellmlnary analysls conducted thus far, it appears that the followlng In-Ileu fees ~ould be approprlate and would meet other stated Ob]ec:lves of the revlsed Program 12. J of In Ll.eu Fee Typical Unl.ts(a) ?er Sq. Foot ProJect Fee(b) 4 $4.00 $16,000 5 $4.50 $22,500 6 35.00 330,000 7 55.50 538,500 8 56.00 $48,000 9 or illare $6.50 $58,500 (9 ) (a) Markee-rate, excludlng dens~ty ~onus available at 7 unlts or more. (b) Based on ave~age I,JOO square foot unlts. 6. ~t 1S perrnatted to satlsfy :ie lncluslonary requlrement by a comolnacion of the pe~tteci me~hods. The ~ost llkely example 15 a bUlldlng Wlth less than the mandated ~ncluslonary square foocage (on or off slte), and paylng for the excess on a 9roportlonal basls. For example, suppose an a-unit proJec:, agg=egat:ng 3,JOO 5qUa~e feet: (lgnorln~ densl:Y bonus) and hence wlth an incluslonary requlrement: for 1,200 square feet: (15%), could most conveniently oe JULIe wlth only a 1,JOO square foot Inclusionary unlt ln the developer's ODl~lon. :he de~elope= ~ould je pe~ltted to satIsfy the lnclusionary requl=ement ror an addi:lonal :00 square feet by paylng 38,000, whl.ch lS 1!6th oi :he stated lncluslonary fee for the full 8,000 quarter feet (at 8 llcltS). The U6th :-ac.:o comeS about 'Jecause t:he ZOO "JUsslng square feet. 15 i/6th or the :ncluslonary =equlrement of 1,200 square reet. i. ~he C?l prOV~Slon WhlCh ap?eared Ln the preVlOUS draft ordinance is approprlate. ... -- --- PROGRAM 12: Develop an inclusionary zoning program. OBJECTIVE: Promote development of housing af=ordable to low- and - -, moderate-income persons. DESCRIPTION: PART 1 The City shall adopt an inclus~onary zon~:1g program. The inclusionary requirement shall apply to all market rate housing whether resulting f=om new construc~ion. substantial ". r remodeling, or market-rate conversion of aoart:nent units, "211.~ dt.t~e~e5 ~ single fa.'!1ily homesAshall. be exemp"te -:::,"...o,:,"',,-~l except that a-"'~ ~!,~1'<;+- i ~l . ~ <:1.-'-........ I _ _ ~__ ~a. --~-.1. ::.?~=::;Jri:J.~a ..3:____.,. ___ _ I .....~"'I ~..........,.t:"'..-~........ ~L::.ll -i !! '= ! ~ i 0 :-.. c.. ;: ~.. - -:"'j, vi...;.;:, 1. ';1 ~ u :., 1 :... S .:. -:. .:. 0 n r: 3. C C ,'J r C. :.. :: :; ~ .~ "':. :" 0 ~~o~~i~~~~~~= cf Ci~:r ~7.:.:d~,' c:: :::],00. ~.... _..Ji.~ --... -- 1.,.,1......- .::I__...........,j,~ m ... c ::':':-.t.;:"'~" ,j ~;;'...f~:...=.:..::.,:.:-..~ :h::l~ 1.....:. ~~..... ~-::. :l every ~4rket rat~ housi~g uni~ .30 ; i- un_ _s 120 afforc.able to pe~scr..s at percent !Ited~an orov:.ded. or the application less t~an a ~hole nunber, i~ shall be to t:J.e ne a= as-:. who 1 a nu.-nber, exc&?t shall prov:.de at least 1 inclusionary =<Jr~"l1er de'le2.op a the Ci ty mechan~srn upward or t~e percentage as to re!2.ect changes ~:l t:he for a:l requ~rement, and =egulat~ons s~a:l ::le:dble appl.:.ca~.!.on of inclusiona=y 73 -0 ])e(~ Ccve,..e...J. 'io" L u E "ib( e{e y~ (I I rtl!~ 7.....e. ( u.... I. b~ 71IJOl ..) I I"" "" -r- . -r:- I -...... , ~ e e ,:~~~S~qn_i~~;~~~ ~~~~e~~~~,Yb~ ~~tt_~~'ied. __.-_'j!?r1~~~ ~~__.._ _.._......~ __v_...~ ......,,....~_...~,. 'L- ~ho ,..,~..... '--':~n~~"-l :_-',"' -- ~:pp:o:::a t: :eg~-l-a-:1o:~- - :~~ll-- be - :'~:~t::'~ ~:~ ~::::~ e,xemption procedures for remodeling and convers::..ons. Such exempt~ons shall not conflict with other laws and shall provide protec-:'1ons aga1nst tenant displacement and for preservat10n of the affordable housing stock. Inclusionary units produced shall be ownership~ or rental units, and shall be subJect to controls to maintain a::fordabili ty. The inclusionary units shall be made affordable and available to persons in the 0% to 120% of median County incorne_ ~ Lhe econolili<,.; .LlJ. ~ uf J ~ t""'t _ _ _.. t.;...i.= """--.1 L. 't_ _ ....i.J.~ "_ l "II, I "_..<a"_ c-~.... ;:l:-~r:.r..-i-~ .--:..:-~~l~;;.; a ~ea. in'" -:...l~t;; _....1......: ~~ ;,c;:.J.r~r ~::.:. ~s . 5 tandar ds shall be developed for provision of un~ts witn1n 'l?Oz... sub-c:a"tegor1es of the 0% to~ of median income range. ':'~e Ci ,;:y shall. encourage the provis ion of uni -:'5 tHi th an apprOpr12.te number of bedroorr.s and othe= iea"ture5 so as "':0 oes't. meet "the needs of 5 en10r ci tizens , - , , . 1: 3.::11 ..:..1.e5 , large c~sabled persons, and pe~5ons with other s?ec~al ~eeds. 'I':,.e =elev2.:lt prcv~s~ons of State law, i!1cl'..ld~r:.g Gove=:lme:--.c Code Sec"':ion 65915-65918 shall be complied with 1.n t~e develo9rnent of the l.nclusionary housing ordinance. 74 : . ...-i. ,- - e P ART I! 1>e(e~e produced. In years most of the ne..... zr.ult.1.-family hous~n in Santa Monica have been to only very small proport;.cn of \ \ -This proce\ has resulted 1.0 a h.1.storic d.1.v~s.1.~Y, ~o address res 1. den t. s . the Ci t.y · 5 the number of expens1. ve. mar: permitted shall be related to the housing units USl.ng ye~-u~r~leased income data for Santa Hcn1.ca, the Ci ':.y the proportion of the Ci~y's low-, mccerat~- households. The number of issued for low- and mOde.::-ate-;':lcame the previous calendar yea:. toge ~~er ",o/::'~.. : 980 0= low- and =d.".to- ,ncome l>.:s.o.01dS shall to deter:nin. the allowable numbe~ of :r.ar1<:e~-rate mUl"t.:"~milY housing un!. ts per=ttad "'-/ s,-ran "e'''. Fer e"a:no~~e, if 513% 0= the / <::'":.'.1'3 'house"holds 'Ne=~ :'ow- or rnode=a~e- ::. cerna, and -:.here we" ~ bU,l.bng p."= ~s for 306 10w- and 1II~ ~ t. - income :hoc.s~::g~r..:. ':.5 .l.ss:..:ed .:.n t::J.e pr e'll.OUS calenca_ year I the al::.ocfc.l.on of ma=~-cet.-=ate nulti-.:amily t;"e I curl en t year would equal 300 uni. t.s . ~sehclds were low- or ~ode~ate-~nccme in th~s //1 1 - T . . ~ 1- ocat~an :or mar<et-=ate ncus~ng wou~a /mU2.t..!.-.:anUol'l :..lnl.-:'s. Va=::ance ==cm t......u.s ?=ogram shElll If 40% ot the 75 ---.oiIf ,J" .' e(- e .... j)e(e~~ ~f it is deter~ned tha~ s~gnifi~an~oenefi~s . "11 These prov~s~ons 1 market-rate ~ulti-farnilv ~ - 1---" ~n. vo '''~ng new co ns t::- uc t.::.on 1 -... housing condominiu. ~ cooper a t~ V'e conver s ion s 1 ()r~= Any reference herein to subd.::.v.::.s:.cn maps pa::-cel maps. - -.......-...- n1PLEMENTAT ION: Res?ons.::.ble Agency: Commun.::.ty and 3conomic Developme~t Depart..'1Ie:l t. Cost: Est~mated ann~a~ cost of S0 to 513,700. Zst':'.:!1.at.:c one-t.::.me costs of ~0 ~o ssa0. Staffincr: .. Zero to one-~al~ Assist~~t Planner. Fundina : - City General P~nd, in-l~eu fee reve~ue. Schedule: j. Quant~f~ed I~?ac~: S1..qn.::.::.:.cant l..ncrease in :=.e'., a::=ordabl e housi:lg. Es~.::.matec potential acd.::.~ion of - ~ j .J to 130 inclus~onary un.::.ts per year. 76 e e Agenda Item # BEFORE DISTRIBUTION CHECK CONTENT OF ALL DISTRIBUTION OF RESOLUTION # 7175.-- oJ7s /J' C /0 ~ /f-- fro FOR CITY _CkERK'S ACTION ORDINA.:\TCE # Councll Meetlng Date Introduced. Adopted. Af]."lAYS PUBLISH AOOPTED ORDINANCES * *Cross out Attorney's aDDr'oval f') 0 ...... ;, " ...... 7l f) 11 ) ~ ~ ~ ~ :: .oj :l .. ) ~ ) J ) Was it amended? VOTE: Afflrmative: ~~() Negatlve: Abstain: Absent: 4'-_ . L {~e'T PROOF VOTE,c WITH ANOTHER PERSITN BEFORE ANYTHING DI5TRI~iI0N'ORIGINAL LO-De signed, sealed' and filed in Vault. NEWSPAPER PUBLICATION (Date: ) ) Department o11ginating staff report ( Management Serv,~~e? Lynne Barrette urdinances only <<It- Agency mentIoned In document or staff report (certifled?) Subject fIle (agenda packet) Counter file 1 1 Others: AIrport Parking Auth. Auditorum Personnel BuildIng Dept. Planning I CuIllll.mi ty and EconatUc Dev. Finance PolIce (en- forcement?) Purchasing .. FIre Recr/Parks General Servo TransportatIon LIbrary Treasurer Manager SE~D FOU~ COPIES OF ALL ORDINANCES TO: CODfD SYSTEMS, Attn Peter Maclearie 12_9 ~tain 1"~r~et ~ . Av6"1,1 N"€iw Jersey_07717 . SEND FOUR COPIES OF ~J.J. onn TMJHJrpC; -to: ~ltifl r.(d.~fEk MUNICIPAL COURT .' 725 MAIN STREE1; Room 118 SANTA MONICA, CA 90401 *Check COde Sect~ons before sendwg. TOTAL COPIES 3 .. . " e Exhl.blt 3 e RESOLUTION NO. 7172 (CCS) (CIty Council SerIes) A RESOLUTION OF THE CITY COUNCIL OF TrlE CITY OF SANTA MONICA INITIATING PROCEEDINGS TO CONSIDER AMENDMENTS TO PROGRAM 12 OF THE HOUSING ELEMENT OF THE GENERAL PLAN WHEREAS, the PlannIng CommIssion of the CIty of Santa Monl.ca has requested the CIty Councll to lnltlate proceedIngs to conSider amendments to Program 12 of the HousIng Element of the General Plan, NOW, TdEREFORE, THE CITY COUNCIL OF THE CIry OF SANTA MONICA DOE3 RESOLVE AS FOLLOWS: SECTION 1. The CIty CouncIl authorlZ9s the PlannIng CommIssion to lnltl.ate proceedings to conSIder a~endments to Program 12 of the HousIng Element of the General Plan. SECTION 2. The City Clerk shall certlfy to the adoptlon of thIS ResolutIon, and thenceforth and thereafter the same shall be In full force and effect. APPROVED AS TO FORM: ~~.~ ROBERT N. MYERS 0 City Attorney ~ '); . e e Adopted a~d approved thIS 25th day of February, 1986. I JJA ~JA~ /~. V!V5YUTempo(j' I hereby certlfy that the foregol~g Resolutlo~ No. 7172(CCS) was duly adopted by the Clty Cou~cll of the Clty of Sa~ta MO~lca at a meetlt'lg thereof held 0'1. February 25, 1986 by the followlng COU!1Cll vote: Ayes: Cou!1cllmembers: COt'l!l, Epsteln, A. Katz, H. Katz, Zat'le and Nayor Pro Tempore Jennlngs Noes: Cou'1cllmembers: None Abstal~: Cou'1cllmembers: NO'1e Absel1t: Cou~cllmembers: Hayor Reed ATTEST: ~~.~ Clty Clerk