SR-400-005-19
PCD:BS:TM:F:\BLDGSAF\ADMIN\Administration\City Council\Bootleg
City Council Meeting 11-25-03 Santa Monica, California
To: City Council
From: City Staff
Subject: Introduce For First Reading An 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 staff report supplies information relating to controlled rental units that were built or
created without permits (i.e. bootlegged), discusses issues relating to bootlegged units and
code compliance, and includes a recommendation that the City Council introduce for first
reading the attached interim ordinance to waive certain development standards for
bootlegged units while requiring that typical development related costs are covered.
Council discussed these issues on April 23, 2003 and directed staff to return with code
amendments for its consideration.
Background
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
1
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”.
The fact that these units were constructed or created without permits does not affect their
status as controlled units. A tenant’s rights to protection against unlawful rents are the
same whether or not the property owner complied with the law in building or creating the
unit. Nonetheless, because bootlegged units are unpermitted, they may raise issues
relating to individual safety and public welfare. Such issues run the gambit from basic life
safety risks attendant upon seriously defective electrical wiring to neighborhood quality of
life concerns like insufficient parking.
To estimate the total number of controlled, bootlegged units, Building & Safety staff
compared records from the County Assessor and the Rent Control Board on the
assumption that the county’s records reflect permitted units, while the Board’s records
reflect actual existing units. This comparison shows that there are approximately 1,000
more registered units than there are units on the assessment roles. These 1,000 units are
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.
Indeed, they often come to staff’s attention because of a complaint about habitability made
2
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.
Fortunately, 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.
At the other end of the spectrum is a larger group of controlled bootlegs that meet state
habitability standards but do not comply with local zoning requirements, particularly
parking, density and set back requirements. Occupants of these units are safe.
Neighborhood welfare may be impacted by the failure to meet zoning requirements. On
the other hand, most of these units have been in existence for well over twenty years; and
neighbors have presumably adjusted to the impacts.
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 bootlegs 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
bootlegs. 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.
3
On April 22, 2003, City Council considered these facts and directed staff to prepare
municipal code amendments for Council consideration. This report contains the first of
these proposed amendments as an interim ordinance. An interim measure will allow a test
period to evaluate the proposed permanent regulations and allow certain pending code
enforcement cases to reach closure and resolution.
Discussion
City staff believes that the most appropriate course is to waive certain current development
standards for bootlegged units registered with the Rent Control Board as of April 22,2003.
This would allow these bootlegged controlled units to remain in use if they meet or can be
made to meet habitability standards.
More specifically, the proposed interim ordinance waives the Zoning Ordinance’s set back
and density requirements for a bootlegged unit registered prior to April 22, 2003 if the unit
is or can be made habitable as determined by the City’s Building Officer. This unit will also
not be required to provide parking as required by current codes unless the City’s Parking
and Traffic Engineer determines that the provision of parking is feasible. Parking which
would result in a significant reduction in yard space shall not be considered feasible. The
location of any parking must be consistent with the City’s Municipal Code except the City’s
Parking and Traffic Engineer may authorize a reduction in the dimensions of a parking
space so long as the space remains accessible and safe. Staff proposes an April 22, 2003
4
cutoff date to preclude the possibility of an owner creating new illegal units to take
advantage of this interim ordinance. A bootleg unit that meets the requirements of the
Ordinance will be considered a legal, non-conforming use.
Budget/Financial Impacts
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 costs to provide services
and related infrastructure. Over time, if all estimated 1,000 bootleg units were to obtain
permits, the City could expect to collect and spend an estimated $7.84 million in fees. as
estimated below for a typical unit, and incur as much in costs.
Plan Check $2,269
Building Permit $ 800
Water Meter $3,405
Water Demand Mitigation $ 375
Wastewater $ 991
Estimated Total Permit Fees Per Unit:* $7,840
Recommendation
Staff recommends that the Council introduce for first reading the attached interim
ordinance.
5
PREPARED BY: Marsha Jones Moutrie, City Attorney
Barry Rosenbaum, Senior Land Use Attorney
Tim McCormick, Building Official
6
f:\atty\muni\laws\barry\bootlegs-1.wpd
Council Meeting 11-25-03 Santa Monica, California
ORDINANCE NUMBER ____ (CCS)
(City Council Series)
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA 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
7
units’ condition nevertheless may raise issues relating to individual safety and public
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 bootleg units.
(g) Since bootleg 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 bootleg 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 exists. 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 bootleg 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 bootleg unit is received by Building & Safety staff,
an inspection is undertaken and citation issued if warranted.
8
(k) An owner of a bootleg 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 the 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 requires adoption of an interim ordinance to
waive certain current development standards that govern bootleg 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 bootleg 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
9
development standards as they relate to the development standards that govern bootleg
units.
(p) 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 establish 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 not 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 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.
10
SECTION 2. This Ordinance shall be of no further force or effect sixty days after its
effective date 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.
11
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
12