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SR-400-008-01 (10) . . ~A MAR 2 6 1991 I/tJO-19//$-OI CA:RMM:11566sr/hpc/pc City Council Meeting 3-26-91 Santa Monica, California STAFF REPORT TO: Mayor and city council FROM: City Attorney SUBJECT: Ordinance Establishing a six Month Moratorium on Multifamily Residential Development with certain Exemptions in Order to Comply with Proposition R and Declaring the Presence of an Emergency At its meeting on March 5, 1991, the City council directed the city Attorney to prepare an ordinance imposing a moratorium on the acceptance of applications on new multifamily housing unless the project provides 30% affordable housing on site. In response to this direction, the accompanying ordinance has been prepared and is presented to the city Council for its consideration. The principal features of the ordinance are as follows: 1. Applicability Date. The ordinance will apply to any project for which an application was filed after March 5, 1991. This date was selected because it is the date the city Council directed the preparation of this ordinance. 2. Moratorium. No multifamily residential project may be filed or approved unless it meets the exemption criteria set forth in this ordinance. 3. Exemption. The principal exemption set forth in the ordinance concerns any project which provides 30% affordable - 1 - ~A MAR 2"6 1991 -.......... e . housing consistent with Proposition R. To be exempt, the application must show the following: (1) The applicant proposes that thirty percent (30%) of the total number units to be constructed on site by the applicant, excluding any density bonus units the applicant is entitled to under Government Code Section 65915, shall be permanently affordable to and occupied by low and moderate income households as provided for in this subsection. (2) For purposes of this subsection, lIlow income household" means a household with an income not exceeding sixty percent (60%) of the Los Angeles County median income, adjusted by family size, as published from time to time by the United States Department of Housing and Urban Development, and "moderate income householdlt means a household with an income not exceeding one hundred percent (100%) of the Los Angeles County median income, adjusted by family size, as published from time to time by the United states Department of Housing and Urban Development. (3) At least fifty percent (50%) of the newly constructed units required to be permanently affordable by this subsection shall be affordable to and occupied by low income households. (4) The provisions of Municipal Code Section 9423(b), (c), (d), (e), and (f), Municipal Code Section 9427, and Municipal Code Section 9428 shall be complied with as to such inclusionary units. These provisions currently govern on-site inclusionary units under the city's inclusionary housing ordinance and contain requirements relating to such issues as bedroom size of inclusionary units. - 2 - . . (5) Prior to the issuance of a building permit for a project exempt under this subsection, the applicant shall submit deed restrictions or other legal instruments setting forth the obligations of the applicant under this subsection for city review and approvaL Such restrictions shall be effective for the lifetime of the project. (6) The requirements of this subsection shall be made conditions to the approval of any application filed pursuant to this subsection. 4. Expiration Date. The ordinance will expire in six months. RECOMMENDATION It is respectfully recommended that the accompanying ordinance be introduced and adopted. PREPARED BY: Robert M. Myers, City Attorney - 3 - . . ([ ) JI/ /<-4~{ Santa Monica, California CA:RMM:11566a/hpc/pc City Council Meeting 3-26-91 ORDINANCE NUMBER (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING A SIX-MONTH MORATORIUM ON MULTIFAMILY RESIDENTIAL DEVELOPMENT WITH CERTAIN EXEMPTIONS IN ORDER TO COMPLY WITH PROPOSITION R AND DECLARING THE PRESENCE OF AN EMERGENCY 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 November 6, 1990, the voters of the City of Santa Monica approved Proposition R, adding Section 630 to the city Charter to read as follows: The city Council by Ordinance shall at all times require that not less than thirty percent (30%) of all mUltifamily-residential housing newly constructed in the city on an annual basis is permanently affordable to and occupied by low and moderate income households. For purposes of this section, I1low income householdl1 means a household with an income not exceeding sixty percent (60%) of the Los Angeles County median income, adjusted by family size, as published from time to time by the united States Department - 1 - . . of Housing and Urban Development, and "moderate income household" means a household with an income not exceeding one hundred percent (100%) of the Los Angeles County median income, adjusted by family size, as published from time to time by the United states Department of Housing and Urban Development. At least fifty percent (50%) of the newly constructed units required to be permanently affordable by this section shall be affordable to and occupied by low income households. (b) On December 29, 1990, the City published notice that on January 8, 1991, the city council would consider issues relating to the implementation of proposition R including whether the thirty percent {30%} requirement of Proposition R could be met on site or off site, whether an in-lieu fee would be permitted, and whether the thirty percent (30%) requirement had to be met on a project by project basis. This notice also provided that at the January 8, 1991 meeting, the city council would consider directing staff to prepare an ordinance to implement Proposition R. (c) City staff prepared a staff report for the January 8, 1991 city Council meeting identifying the issues that had to be addressed as part of the implementation of Proposition R, suggesting a process for obtaining public input, presenting city staff's resolution of issues raised by Proposition R's - 2 - . . implementation, and recommending that staff be directed to prepare an ordinance implementing Proposition R. (d) At its January 8, 1991 meeting, the City Council directed staff to prepare an ordinance implementing Proposition R and to return the ordinance to the city council on February 26, 1991. (e) The Santa Monica Planning commission, as well as other groups in the community, believed the schedule for the return of the ordinance did not provide opportunities for adequate review of various alternative strategies for implementing Proposition R. (f) At its meeting on February 19, 1991, the City Council decided to reconsider whether an ordinance should be prepared and scheduled for its next regular meeting a general discussion of implementing strategies. (g) On March 5, 1991, the City council directed the City Attorney to prepare an ordinance prohibiting the filing of applications for market-rate residential housing until such time as the council adopts an ordinance implementing Proposition R excepting from the prohibition any project in which thirty percent (30%) of the units constructed on site are available to low and moderate income persons as provided for in Proposition R. (h) The following ordinance is necessary to enable the City to meet the requirements of proposition R. Proposition R mandates that on an annual basis not less than 30% of all multifamily residential housing newly constructed in the city be permanently affordable to low and moderate income households. Historically, multifamily residential housing developed in the City has fallen far short of this 30% requirement. This trend - 3 - . . continues to date. Thus, unless this emergency moratorium is enacted, and only projects providing 30% affordable housing consistent with Proposition R are exempted, the City will not be able to meet the mandate of Proposition R. This ordinance ensures that the city will comply with proposition R while studying approaches for long-term implementation of the measure. SECTION 2. Moratorium. (a) Subject to the exemptions set forth in section 3 of this Ordinance, a moratorium is hereby placed on the acceptance for processing of any applications for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, or any other City permits for the erection, construction, moving, and excavation and grading for, any mUlti-family residential building or structure. (b) Subject to the exemptions set forth in section 3 of this Ordinance, the Planning commission and city staff are hereby directed to disapprove all applications filed after March 5, 1991, for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, or any other City permits for the erection, construction, moving, and excavation and grading for, any multi-family building or structure. SECTION 3. Exemptions. The following applications are exempt from the provisions of Section 2 of this Ordinance: (a) Applications for approval of permits involving the erection, construction, enlargement, demolition, or moving of, - 4 - . . and excavation and grading for any multiple dwelling development intended for rental housing for persons of low and moderate income or for senior citizens, and which development is financed by any federal, state or city housing assistance program or owned by any non-profit organization, provided a deed restriction is recorded restricting the development to such purpose. (b) Applications for approval of permits involving the rehabilitation or enlargement of existing dwelling (c) Applications for projects filed prior to (d) Applications for approval of permits unitsoc:::> Marc~1991. involving the construction and excavation and grading for, projects where the following requirements are met: (1) The applicant proposes that thirty percent (30%) of the total number units to be constructed on site by the applicant, excluding any density bonus units the applicant is entitled to under Government Code section 65915, shall be permanently affordable to and occupied by low and moderate income households as provided for in this subsection. (2) For purposes of this subsection, "low income household" means a household with an income not exceeding sixty percent (60%) of the Los Angeles County median income, adjusted by family size, as published from time to time by the United states Department of Housing and Urban Development, and "moderate income household" means a household with an income not exceeding one hundred percent (100%) of the Los Angeles County median income, adjusted by family size, as published from time to time by the united states Department of Housing and Urban Development. - 5 - . . (3) At least fifty percent (50%) of the newly constructed units required to be permanently affordable by this subsection shall be affordable to and occupied by low income households. (4) The provisions of Municipal Code Section 9423(b), (c) , (d) , (e), and (f), Municipal Code Section 9427, and Municipal Code section 9428 shall be complied with as to such inclusionary units. (5) Prior to the issuance of a building permit for a project exempt under this subsection, the applicant shall submit deed restrictions or other legal instruments setting forth the obligations of the applicant under this subsection for City review and approval. Such restrictions shall be effective for the lifetime of the project. (6) The requirements of this subsection shall be made conditions to the approval of any application filed pursuant to this subsection. SECTION 4. This Ordinance shall be of no further force and effect six months from its adoption. SECTION 5. This ordinance is declared to be an urgency measure adopted pursuant to the provisions of Section 615 of the Santa Monica City Charter. It is necessary for preserving the public peace, health and safety, and the urgency for its adoption is set forth in the findings above. SECTION 6. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this - 6 - . . Ordinance, to the extent of such inconsistencies and not further, are hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 7. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconsti tutional by a decision of any court of any 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 8. 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 off icial newspaper within 15 days after its adoption. This Ordinance shall become effective upon adoption. APPROVED AS TO FORM: _~ i-.r- ~ ROBERT M. MYERS City Attorney - 7 - . . OF ALL FOR CITY CLERK'S ACTION ORDINANCE #: /:;: 7 .7 Introduced: %t,,/qj Adopted: ~h {., /9 ) ALWAYS PUBLISH ADOPTED ORDINANCES Cross out Attorney.s approval BEFORE DISTRIBUTION CHECK CONTENT DISTRIBUTION OF RESOLUTION t Council Meeting Date ~6/7j Agenda Item #: :? - A- Was it amended? Y E .:;: VOTE: Affirmative: 0c",- .H-=.- r6'?-?/:-v.:r.<.k' t:?-c.p' "/ I /(,"7~ , 4,,,,-- I uc:.,...t:d / t' . / f /' ... Negative~ ~/? Abstain: ) Absent: PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING DISTRIBUTION: ORIGINAL to he s1gned, sealed and filed in Vault. t' NEWSPAPER PUBLICATION {Date: } I Department originat1ng staff report( Laur1e L1eberman) ~ . Ord~nances only for Attorney ( Claud1a Thompson) 2 Management Services Lynne Barrette ORDINANCES ON~Y 1 Agency mentioned in document or staff report (cert1f1ed? ) departments who need to parJsing Auth. Personpel Planning Police Purchasing Recr/Parks Transportat1on Treasurer Subject f11e (agenda packet) Counter file Others: (Review for Airport Auditorium Building Dept. ClEO Finance General Servo Library Manager Fire 1 1 ~ know) . I SEND FOUR COPIES OF ALL ORDINANCES TO: CODED SYSTEMS 120 Main Street Avon, New Jersey 07717 SEND FOUR COPIES OF ALL ORDINANCES TO: 4 . Debra Myrick Santa Monica Municipal Court 1725 Main Street, Room 118 Santa Monica, CA 90401 Total Copies 4 I c;:- . . ~ CA:RMM:11566a/hpc/pc city Council Meeting 3-26-91 Santa Monica, California ORDINANCE NUMBER 1577 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING A SIX-MONTH MORATORIUM ON MULTIFAMILY RESIDENTIAL DEVELOPMENT WITH CERTAIN EXEMPTIONS IN ORDER TO COMPLY WITH PROPOSITION R AND DECLARING THE PRESENCE OF AN EMERGENCY THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Findings and Purpose. The city counci 1 finds and declares: (a) On November 6, 1990, the voters of the City of Santa Monica approved Proposition R, adding Section 630 to the City Charter to read as follows: The city Council by Ordinance shall at all times requ1re that not less than th1rty percent (30%) of all mUltifamily-residential housing newly constructed in the City on an annual basis is permanently affordable to and occupied by low and moderate income households. For purposes of this Section, "low income household" means a household with an income not exceeding sixty percent (60%) of the Los Angeles County median 1ncome, adjusted by family size, as published from t1me to time by the Un1ted States Department - 1 - . . ~ of Housing and Urban Development, and "moderate income household" means a household with an income not exceeding one hundred percent (lOOt) of the Los Angeles County median income, adjusted by family sizet as published from time to time by the united states Department of Housing and Urban Development. At least fifty percent (50%) of the newly constructed uni ts required to be permanently affordable by this section shall be affordable to and occupied by low income households. (b) On December 29, 1990, the City published notice that on January 8, 1991, the City Council would consider issues relating to the implementation of Proposition R including whether the thirty percent (30%) requirement of Proposition R could be met on site or off site, whether an in-lieu fee would be permitted, and whether the thirty percent (30%) requirement had to be met on a project by project basis. This notice also provided that at the January 8, 1991 meeting, the city council would consider directing staff to prepare an ordinance to implement Proposition R. (c) city staff prepared a staff report for the January 8, 1991 City council meeting identifying the issues that had to be addressed as part of the implementation of Proposit1on R, suggesting a process for Obtaining public input, presenting city staff's resolution of issues raised by Proposition R's - 2 - . . ... implementation, and recommending that staff be directed to prepare an ordinance implementing Proposition R. (d) At its January 8, 1991 meeting, the city council directed staff to prepare an ordinance implementing Proposition R and to return the ordinance to the City Council on February 26, 1991. (e) The Santa Monica Planning Commission, as well as other groups in the community, believed the schedule for the return of the ordinance did not provide opportunities for adequate review of various alternative strategies for implementing Proposition R. (f) At its meeting on February 19, 1991, the city council decided to reconsider whether an ordinance should be prepared and scheduled for its next regular meeting a general discussion of implementing strategies. (g) On March 5, 1991, the City Council directed the city Attorney to prepare an ordinance prohibiting the filing of applications for market-rate residential housing until such time as the Council adopts an ordinance implementing Proposition R excepting from the prohibition any project in which thirty percent (30%) of the units constructed on site are available to low and moderate income persons as provided for in Proposition R. (h) The following ordinance is necessary to enable the city to meet the requirements of Proposition R. Proposition R mandates that on an annual basis not less than 30% of all multifamily residential housing newly constructed in the city be permanently affordable to low and moderate income households. Historically, multifamily residential housing developed in the city has fallen far short of this 30% requirement. This trend - 3 - . . ~ continues to date. Thus, unless this emergency moratorium is enacted, and only projects providing 30% affordable housing consistent with Proposition R are exempted, the city will not be able to meet the mandate of Proposition R. This ordinance ensures that the city will comply with proposition R while studying approaches for long-term implementation of the measure. SECTION 2. Moratorium. (a) Subject to the exemptions set forth in section 3 of this Ordinance, a moratorium is hereby placed on the acceptance for processing of any applications for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, or any other City permits for the erection, construction, moving, and excavation and grading for, any multi-family residential building or structure. (b) Subject to the exemptions set forth in section 3 of th1s Ordinance, the Planning Commission and City staff are hereby d~rected to disapprove all applications filed after March 5, 1991, for approval of tentative tract maps, tentative parcel maps, administrative approvals, development review permits, conditional use permits, or any other city permits for the erection, construction, moving, and excavation and grading for, any mUlti-family building or structure. SECTION 3. Exemptions. The following applications are exempt from the provisions of Section 2 of this Ordinance: (a) Applications for approval of permits involving the erection, construction, enlargement, demolition, or moving of, - 4 - . . , and excavation and grading for any multiple dwelling development intended for rental housing for persons of low and moderate income or for sen10r citizens, and which development is financed by any federal, state or city housing assistance program or owned by any non-profit organization, provided a deed restriction is recorded restricting the development to such purpose. (b) Applications for approval of permits involving the rehabilitation or enlargement of existing dwelling units. (c) Applications for projects filed prior to March 6, 1991. (d) Applications for approval of permits involving the construction and excavation and grading for, projects where the following requirements are met: (1) The applicant proposes that thirty percent (30%) of the total number units to be constructed on site by the applicant, excluding any density bonus units the applicant is entitled to under Government Code Section 65915, shall be permanently affordable to and occupied by low and moderate income households as provided for in this subsection. (2) For purposes of this subsection, "low income household" means a household with an income not exceeding sixty percent (60%) of the Los Angeles County median income, adjusted by family size, as published from time to time by the United States Department of Housing and Urban Development, and "moderate income household" means a household with an income not exceeding one hundred percent ( 100%) of the Los Angeles County median income, adjusted by family size, as published from time to time by the united States Department of Housing and Urban Development. - 5 - . . (3) At least fifty percent (50%) of the newly constructed units required to be permanently affordable by this subsection shall be affordable to and occupied by low income households. (4) The provisions of Municipal Code Section 9423(b), (c), (d), (e), and (f), Municipal Code section 9427, and Municipal Code Section 9428 shall be complied with as to such inclusionary units. (5) Prior to the issuance of a building permit for a project exempt under this subsection, the applicant shall submit deed restrictions or other legal instruments setting forth the obligations of the applicant under this subsection for city review and approval. Such restrictions shall be effective for the lifetime of the project. (6) The requirements of this subsection shall be made conditions to the approval of any application filed pursuant to this subsection. SECTION 4. This Ordinance shall be of no further force and effect six months from its adoption. SECTION 5. This ordinance is declared to be an urgency measure adopted pursuant to the provisions of section 615 of the Santa Monica City Charter. It is necessary for preserv1ng the public peace, health and safety, and the urgency for its adoption is set forth in the findings above. SECTION 6. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this - 6 - . . , Ordinance, to the extent of such inconsistencies and not further, are hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 7. 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 any 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 8. The Mayor shall sign and the city Clerk shall attest to the passage of th1s 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 upon adoption. APPROVED AS TO FORM: i- ~~~~~~- " ~."'.. ~ --". "'""";'("<'- - ROBERT M. MYERS City Attorney - 7 - . . II: t Adopted and approved this 26th day of March, 1991. ii, ~/b Ci?f Mayor I hereby certify that the foregoing Ordinance No. 1577 (CCS) was duly and regularly introduced at a meeting of the Ci ty council on the 26th day of March 1991; that the said ordinance was thereafter duly adopted at a meeting of the City Council on the 26th day of March 1991 by the fOllowing Council vote: Ayes: councilmembers: Genser, Holbrook, Olsen, Vazquez, Zane, and Mayor Abdo Noes: Councilmembers: None Abstain: Councilmembers: None Absent: Councilmembers: Katz ATTEST: ~~b~' ~ ........- C1 ty Clerkl