SR-400-005 (15)
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City Council Meeting 1-20-04 Santa Monica, California
To: City Council
From: City Staff
Subject: Introduction For First Reading Of An Interim Ordinance Extending the Initial
Interim Ordinance Waiving Certain Development Standards For Rental Units
Which Were Built Or Created Without Permits And Registered With The
Rent Control Board Prior To April 22, 2003
Introduction
This report recommends that the City Council introduce for first reading an interim
ordinance extending for one year an initial interim ordinance waiving certain development
standards for bootlegged units while requiring that typical development related costs are
covered. On December 16, 2003, the City Council adopted an interim, 60-day ordinance
that exempts rental units built or created without permits and registered with the Rent
Control Board prior to April 22, 2003 from the set back and density requirements of the
City’s Zoning Ordinance if the units are or can be made habitable as determined by the
City’s Building Official. These units would still have to provide required parking unless the
City’s Parking and Traffic Engineer determined that the provision of parking was
infeasible. This ordinance will expire on March 15, 2004, unless the proposed interim
ordinance (Attachment A) is adopted.
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Discussion
The history and legal issues associated with bootleg units were detailed in the November
25, 2003 staff report (Attachment B) and are summarized below.
On April 10, 1979, the voters of Santa Monica amended the City Charter by adopting
Article 18, the City’s Rent Control Law. It includes a provision that required owners to
register all rental units used as residential dwellings with the newly created Rent Control
Board. Eventually, approximately 40,000 units were registered. Some of those units had
been constructed or created without building permits or other approvals. That class of
controlled rental units is commonly referred to as “bootlegged units.”
Because bootlegged units are unpermitted, they may raise issues relating to individual
safety and public welfare. Such issues run the gamut from basic life safety risks attendant
upon seriously defective electrical wiring to neighborhood quality of life concerns like
insufficient parking and other zoning violations.
Based on an examination of County and local records, Building & Safety staff estimate that
there are approximately 1,000 registered bootlegged units situated on about 750
properties.
By definition, the bootlegged units were created and occupied without the benefit of an
official determination that they meet safety and habitability standards set by state law.
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Indeed, they often come to staff’s attention because of a complaint about habitability made
by the occupant or upon referral from County Health inspectors. Staff’s experience
indicates that habitability violations are frequent in such units. These violations include
lack of heat and hot water, improper electrical wiring, compromised water, improper gas
and waste connections, and improper exits. All of these are serious safety hazards. In
most cases, the serious hazards can usually be eliminated through repairs, and the units
can be made safe. In rare cases, the unit cannot be made habitable.
A much larger group of controlled bootlegged units meet state habitability standards but do
not comply with local zoning requirements, particularly parking, density and set back
requirements. Although neighborhood welfare may be impacted by the failure to meet
zoning requirements, most of these units have been in existence for well over twenty
years.
Building & Safety staff must and does process complaints and conduct inspections of
residential units without regard to controlled or uncontrolled status. Once cited, owners of
controlled bootlegged units that are extremely substandard and cannot be made habitable
may seek removal permits from the Rent Control Board. However, this is a small subset of
bootlegged units. Removal permits are not available for units that can be made habitable.
Thus, most owners have no option but to bring the units into compliance with habitability
and other legal requirements. Under present law, that is frequently not possible,
particularly with regard to parking and density requirements.
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On December 16, 2003, the City Council adopted the initial interim ordinance which
addressed these circumstances by exempting rental units built or created without permits
and registered with the Rent Control Board prior to April 22, 2003 from the set back and
density requirements of the City’s Zoning Ordinance if the units are or can be made
habitable as determined by the City’s Building Official. These units would still have to
provide required parking unless the City’s Parking and Traffic Engineer determined that
the provision of parking was infeasible. A bootlegged unit that meets the requirements of
the ordinance will be considered a legal, non-conforming use. The proposed extension
ordinance is intended to ensure continuity of the initial interim ordinance through March
11, 2005 and provide sufficient time for the Council to consider permanent revisions to the
City’s Zoning Ordinance.
Budget/Financial Impacts
As detailed in the November 25, 2003 staff report, budget and financial impacts will
depend on the rate at which property owners seek permits for their bootlegged units based
on their voluntary compliance or staff code enforcement efforts. Development fees are
based on the City’s costs of providing services and related infrastructure. Over time, if all
estimated 1,000 bootlegged units were to obtain permits, the City could expect to both
collect and spend an estimated $7.84 million in fees, as estimated below for a typical unit:
Plan Check $2,269
Building Permit $ 800
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Water Meter $3,405
Water Demand Mitigation $ 375
Wastewater $ 991
Estimated Total Permit Fees Per Unit:* $7,840
Recommendation
It is respectfully recommended that the Council introduce for first reading the attached
interim ordinance.
PREPARED BY: Marsha Jones Moutrie, City Attorney
Barry Rosenbaum, Senior Land Use Attorney
Tim McCormick, Building Official
ATTACHMENT: A: Proposed Interim Ordinance
B: November 25, 2003 Staff Report
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Council Meeting 1-20-04 Santa Monica, California
ORDINANCE NUMBER ____ (CCS)
(City Council Series)
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA EXTENDING THE INITIAL INTERIM ORDINANCE WAIVING CERTAIN
DEVELOPMENT STANDARDS FOR RENTAL UNITS
WHICH WERE BUILT OR CREATED WITHOUT PERMITS AND REGISTERED WITH
THE RENT CONTROL BOARD PRIOR TO APRIL 22, 2003
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTION 1. Findings and Purpose. The City Council finds and declares:
(a) On April 10, 1979, the voters of Santa Monica amended the City Charter by
adopting Article 18, the City’s Rent Control Law.
(b) Section 1800(c) of the Rent Control Law, with specified exceptions, defines
controlled rental units as all residential rental units in the City of Santa Monica including
mobile homes. In general terms, the Rent Control Law governs residential units rented or
offered for rent prior to April 10, 1979.
(c) Section 1803(q) of the Rent Control Law requires owners to register all
controlled residential rental units with the Rent Control Board.
(d) Some of the units registered had been constructed or created without building
permits or other City approvals. These units are commonly referred to as bootlegged
units. (e) Although bootlegged units may constitute controlled rental units, these
units’ condition nevertheless may raise issues relating to individual safety and public
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welfare.
(f) The City estimates that there are approximately 1,000 more units registered with
the City’s Rent Control Board than are included on the County Assessor’s roll and
assumes that most of this class of registered units constitute bootlegged units.
(g) Since bootlegged units were built without required permits, there was no official
determination at the time of construction that these units met safety and habitability
standards established by State and local law and there has likely been no such
determination since the time of their construction.
(h) Staff often learns of a bootlegged unit from a complaint raised about the unit
made by the unit’s occupant or a neighbor; and in responding to such complaints, Building
and Safety staff frequently discover habitability violations, including lack of heat and hot
water, improper electrical wiring, compromised water, improper gas and waste
connections, and improper exits. However, these serious hazards can usually be
remedied and the units rendered habitable.
(i) Apart from this subset of units that have habitability problems, most bootlegged
units do not comply with local zoning requirements, particularly parking, density and set
back requirements. While the failure to comply with such zoning requirements can impact
the neighborhood welfare, these conditions have now been present for over twenty years.
(j) Once a complaint regarding a bootlegged unit is received by Building & Safety
staff, an inspection is undertaken and citation issued if warranted.
(k) An owner of a bootlegged unit may seek a removal permit from the Rent Control
Board if the unit is extremely substandard and cannot be rendered habitable; removal
permits are not available for units which can be made habitable. While owners of these
latter units must bring them into compliance with habitability and other legal requirements,
they are frequently unable to do so since these units do not and cannot meet all of the
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City’s zoning requirements.
(l) This conflict between City laws creates an untenable situation both for the
property owner and for City staff. Consequently, the City Council finds and declares that
the public health, safety and general welfare require adoption of an interim ordinance to
waive certain current development standards that govern bootlegged units if these units
meet or can be repaired to meet habitability standards and these units were registered with
the Rent Control Board prior to April 22, 2003, when the City Council gave policy direction
on this issue.
(m) Therefore, the City's zoning and planning regulations should be revised to
waive certain current development standards that govern bootlegged units if these units
meet or can be repaired to meet habitability standards and these units were registered with
the Rent Control Board prior to the cut-off date.
(n) Establishing April 22, 2003 as the cutoff date will preclude the possibility of an
owner creating new illegal units to take advantage of this program.
(o) Pending completion of these permanent revisions, in order to protect the public
health, safety, and welfare, it is necessary on an interim basis to change current
development standards as they relate to the development standards that govern
bootlegged units.
(p) In light of these concerns, the City Council adopted Ordinance Number 2100
(CCS) on December 16, 2003, which waived certain development standards for rental units
which were built or created without permits and registered with the Rent Control Board
prior to April 22, 2003. However, this ordinance will expire on March 15, 2004, unless
extended. Adoption of the proposed extension ordinance will allow sufficient time for a
comprehensive planning process to revise these development standards on a permanent
basis.
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(q) As described above, there exists a current and immediate threat to the public
safety, health, and welfare should this interim ordinance not be adopted. Consequently, it
is necessary for this ordinance to extend the provisions of Ordinance Number 2100 (CCS)
up to and including March 11, 2005, establishing on an interim basis the following
development standards:
SECTION 1. Bootleg Units.
(a) A rental unit registered with the Santa Monica Rent Control Board prior to April
22, 2003, which was built or created without City planning or building permits shall not be
required to meet the set back and density requirements of the City’s Zoning Ordinance if
the unit is or can be made habitable as determined by the City’s Building Official.
(b) A rental unit exempt from set back and density requirements pursuant to
subsection (a) of this Section shall be required to provide parking for the unit pursuant to
Santa Monica Municipal Code Section 9.04.10.08.040 unless the City’s Parking and Traffic
Engineer determines that the provision of parking is not feasible. Parking which would
result in a significant reduction in yard space is not feasible. The location of any feasible
parking shall comply with the City’s Municipal Code except the City’s Parking and Traffic
Engineer may authorize a reduction in parking space dimensions so long as the space
remains accessible and safe.
(c) A rental unit that meets the requirements of this Section shall be considered a
legal, non-conforming unit.
SECTION 2. This Ordinance shall be of no further force or effect after March 11,
2005, unless prior to that date, after a public hearing, noticed pursuant to Santa Monica
Municipal Code Section 9.04.20.22.050, the City Council, by majority vote, extends this
interim ordinance.
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SECTION 3. 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 4. 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 this 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 any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
SECTION 5. 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. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
____________________________
MARSHA JONES MOUTRIE
City Attorney
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