SR-400-004-07 (6)
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FE8 1 4 1978
Santa Monlca, Callfornla, February 7, 1978
TO: The Mayor and Clty Councll
FROM: Clty Staff
SUBJECT: Emergency Ordlnance Imposlng a Moratorlum on
Cooperatlve Apartments
Introductlon
ThlS report constitutes a staff recommendatlon that the Clty
Councll adopt an emergency ordlnance lmposlng a moratorlum on
the converSlon of existlng apartments to cooperatlves and
authorlze notlflcatlon of the State Department of Real Estate
of thlS actlon.
Background
Recent changes In the State laws deallng wlth loans for cooper-
atlve houslng may make cooperatlve converSlons of eXlstlng
apartment buildlngs an alternatlve method to condomlnlum con-
verSlons. The eXlstlng Santa Monica Ordlnances deallng wlth
new condomlnlums and conversions of existlng apartment houses
do not cover cooperatlves or cooperatlve converSlons, Hhereas
new condomlnlums and condomlnlum converSlons are subJect to ap-
proval by the Plannlng Commission or City Councll, must meet
certaln mlnimum standards for parklng and pay a condomlnlum tax
of $1,000 per unlt, cooperatlves or cooperatlve converSlons are
not covered. In order to make cooperatives subJect to the same
procedures and taxes as condomlnlums, it wl11 be necessary to
amend the Municipal Code to lnclude them. Inasmuch as amend-
ments must be prepared and processed through the Planning
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FEB 1 4 1978
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The Mayor and C~ty Counc~l
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February 7, 1978
Comrn1ss~on and C1ty Counc11, a morator1Uffi on such conversions
should be 1mposed to assure that a large number of such con-
verSlons do not occur dur1ng the t1me the C1ty 1S amend1ng 1tS
Ordinances. It lS conce1vable that several large apartments
could convert w1th a tax loss to the C1ty 1n excess of $500,000
or more. By 1mposing a morator1Uffi and not1fY1ng the State De-
partment of Real Estate of th1s act10n, the Cornm1ssion will
defer approval of further appllcat10ns unt11 the C1ty has had
an opportun1ty to adopt appropr1ate legislat10n cover1ng 1t.
Alternat1ves.
Not app11cable.
Recomrnendat1on.
In V1ew of the poss1b1lLty that the loss of substantLal tax
revenue may be 1nvolved, it LS respectfully recommended that the
C1ty Counc1l adopt the Emergency Ordlnance 1mposlng a morator1Uffi
on the development or converS10n of cooperatlve houslng proJects
for a perlod of Slxty (60) days and authorlze the Clty Manager
to notify the Department of Real Estate of that action and request
that off1ce to defer approval of any pend1ng or subsequent app11-
cat10ns dur1ng that perLod.
Prepared by: James Lunsford
JL:bt
C~ RLK:SIS:lcb 78-23
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ORDINN~CE NO. 1077((C5)
(Clty Councll Serles)
AN ORDINANCE OF THL CITY COUNCIL
OF THE CITY OF SAN'l'A MONICA CREATING
A MORATORIUM ON THE CDNSTRUCTION~
ERECT JON r CREA'I'lO~J OR DEVr.;LOPlv!}~NT
OF ANY STOCK COOPERATIVE HOUSING
WITHIN THE CITY OF SANTA MONICA AND
DECLARING THE PRESENCE OF AN EplliRGENCY.
THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES ORDAIN AS FOLLOWS:
SECTION 1.
A moratorlum lS hereby placed on
the constructlonr erectlon, creatlonr development or
agproval of any stock cooperatlve housing project lD any
and all dlstrlcts In the Clty of Santa Mon~ca.
S.cCTION 2.
It 15 the lntent of the C~ty of
Santa MOD1ca for purposes of thlS e~2rgency zon1ng ordlnance
to treat stock cooperatlve housing projects d~fferently
from a~artment building proJects (and slm~lar structures)
due to the different demands that the two types of
proJects place upon the City.
SECTION 3. For purposes of thls ordlnance, a
stock cooperative houslng proJect shall be as deflned In
Sectlon 17265 of the Revenue and Taxation Code of the State
of CallfornJa and Sect10n 216 of the Unlted States Internal
Revenue Code.
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CA 78-23 2-6-78~
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recommendation of the Plannlng COffimiSS10n, subJect to
a flnding of the followlng:
1. ""~ strlct appLu':dLLon -'f ~U"'e
prov L,lons of the mora torl U'-,1 to a
partLcular stock cooperatlve houslng
proJect would result lD practical
dlfflculty and unnecessary hardshlps
inconslstent with the general purpose
of the moratorlum;
2. That there are exceptional
circumstances or conditions appllcable
to thlS ~ondomlnium project that do
not apply generally to the other
projects covered by thlS moratorlUmj
and
3. That the grantlng of a variance
would not be materially detri8ental
to the public welfare as deflned
above.
SECTION 8. Under no clrcumstances is thlS
ordlnance to be 1nterpreted to apply to any proj ect "lhich
has already recelved approval by the Plannlng Commisslonr
or the Clty Council, or has recelved necessary permlts
from Clty offices, or for WhlCh substantlal expense or
11abilltles have been lncurred.
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78-23 2-6-78.
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SECTION 9. Th1S ord1nance 15 declared to be an
e~ergency measure adopted pursuant to the prov1s1ons of
Sect10n 61~ of the Santa l10nlca C1ty Charter and 1S
necessary for preservlng the punl1c peace, health and
safety, and the urgency for lts adoption 1S set forth In
the flndlngs above.
SECTIO~ 10. This ord1nance shall take effect and
be 1n full force 1mmed1ately after the passage and adoptlon
thereof and shall remain 1n effect unt1l May 14, 1978,
at which tlffie 1t shall be of no further effect and shall
be deemed repealed.
SECTION 11. The ~1ayor shall slgn and the C1 ty
ro 1- y 1"",
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shall attest to the passage of this ordinance.
'l'h e
Clty Cler~ shall cause the same to be published once in the
offlClal ~ewspaper w1th1D f1fteen (15) days after 1ts
adoptlon. The ord1nance shall become effectlve from and
after lts adoptlon.
]>,DOPTED and APPROVED thls 14t}1 day of I'cbruary
1978.
_l~'~V-l~~\ lU1i
HAYOR
ATTEST:
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CITY CLERK .
STATE OF CAL1FO&~JA )
COffi~TY OF LOS ANGELES ) 55.
CITY OF SANT~ MO~ICA )
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CA 78~23 2-6-78
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I do hereby certlfy that the foregoing ordlnance
was duly and regularly lntroduced at a meetlng of the
Cit.: Cou:lc1.l on thc~ ~~~!_'~ day of I.21nU'1j-)_~_, ]9:8; th3t
L'lereafter the sald OtclUlanc(> was duly adopted at a
r'-:=eting of the Clty COUDCll on the 141 h day of
fcbru<In.'
1978; by the follow.lng vote of t.he Council:
AYES:
Councllmember: Ba'llbrlCk~ Cohen, Reed,
Scott, Trl\res, ~1ayor
S\~'lnk
NOES:
CounCllmernber: Eane
ABSENT:
Councllrnember: van den Steenhoven
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/, ;/ CITY CLERK
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AS TO
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