SR-401-001-03 (8)
PCD:SF::f:\ppd\share\ccreport\hsngelmt\HEDec11CouncilReport.doc
Council Mtg: December 11, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Adoption of Negative Declaration and Revised Draft 2000-2005 Housing
Element
INTRODUCTION
This staff report recommends that the City Council conduct a public hearing and take
the following actions:
1. Adopt a Resolution to Adopt a Negative Declaration; and
2. Adopt a Resolution to Adopt the 2000-2005 Housing Element of the General Plan
with revisions as requested by the State Department of Housing and Community
Development.
BACKGROUND
The Draft 2000-2005 Housing Element is a technical update to the City’s 1998-2000
Housing Element. One of the seven mandated elements of the General Plan, the
Housing Element establishes a five-year plan for addressing the City’s housing needs.
The Planning Commission reviewed the initial Draft 2000-2005 Housing Element on
February 21, 2001. On April 24, 2001, the City Council conceptually approved the Draft
Housing Element and directed staff to submit the document to the State Department of
Housing and Community Development (HCD) for review, and to commence
environmental review of the Draft Element (Attachment B).
HCD provided the City with its comments on the Draft Element in a letter dated August
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3, 2001. City staff, together with the consulting firms of Cotton, Bridges Associates
(CBA) and Hamilton, Rabinovitz and Alshuler (HRA), met with representatives of HCD
to discuss their comments and outline the additional analysis and subsequent revisions
to the Draft Housing Element that would be prepared to address their concerns.
Additional analysis and proposed revisions were submitted to HCD for review on
October 4, 2001 and on November 28, 2001. The specific changes to the document are
discussed later in this report.
ANALYSIS
Following the City Council conceptual approval of the initial Draft 2000-2005 Housing
Element on April 24, 2001, staff submitted the document to the State Department of
Housing and Community Development (HCD) for review. HCD indicated that additional
analysis and revisions to the City’s Draft 2000-2005 Housing Element were required.
(Attachment C) The areas requiring further analysis and or information were as follows:
?
Analyze the cumulative impact of City regulations to determine if they act as
potential or actual governmental constraints upon the maintenance,
improvement, and development of housing for all income levels.
?
Amend the existing summary table in the Draft Element to provide all required
statistics regarding construction, conversion and demolition of residential units
within the coastal zone since 1982.
?
Prioritize implementation of the first item in the action plan for Program 1.a.
?
Clarify the City’s commitment to implement the fourth item in the action plan for
Program 1.b.
?
Provide a copy of the City’s annual report, produced by the Housing Division, on
new housing construction.
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?
Provide updated data to reflect the current status of pending housing projects
and to include new housing projects that have been submitted since the earlier
draft of the Element was prepared.
While City staff believed that the Housing Element substantially complied with State
Housing Law, City staff, with the assistance of the consulting firms of CBA and HRA,
prepared the analyses requested by HCD and proposes the following revisions to the
proposed Draft 2000-2005 Housing Element (Attachment D):
?
Chapter II, Section C. Housing Stock, Subsection 7, regarding Coastal Zone
Housing. This section has been revised to include all available data on units
built, demolished and converted in the Coastal Zone from 1982. In addition, data
on affordable units demolished or converted in the Coastal Zone, affordable units
built in the Coastal Zone and affordable units built within three miles of the
Coastal Zone from 1982 until 2000, is presented in the revised Table II-21
(Exhibit 1 of Attachment D).
?
Chapter III, Section C, Additional Constraint Analyses. This section has been
revised to address the degree to which eight City policies, programs and
regulations, or features of them, cumulatively operate as actual or potential
governmental constraints on the production of new housing (Exhibit 2 of
Attachment D). The technical analysis that supports these conclusions has been
substantially revised (Exhibit 5 of Attachment D). A brief summary of the new
analysis can be found at pages 9-10 of Exhibit 5 and a more detailed discussion
begins at page 31 (Exhibit 2 and Exhibit 5 of Attachment D).
?
Chapter IV, Section C, Compliance with the RHNA Allocation, Subsection 2
regarding credits for new housing production since January 1998. This section
has been revised to reflect the status of pending housing projects as of August
2001 and to include units for which applications have been submitted since
publication of the Draft Element through August 2001 (Exhibit 3 of Attachment
D).
?
Chapter VI, Section C, Goals, Policies and Programs. Program 1.a. has been
revised to reflect that the implementation time frame for the first item in the action
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plan regarding promotion of residential uses in non-residential zoning districts is
“annually”. (Exhibit 4 of Attachment D)
?
Chapter VI, Section C, Goals, Policies and Programs. Program 1.b. has been
revised to clarify the action plan regarding City procedures for processing CEQA
documents. (Exhibit 4 of Attachment D)
?
Chapter VI, Section C, Goals, Policies and Programs. Program 1.d. has been
deleted since the program to consider rezoning non-residential areas for
residential use will not occur within this 5 year planning period. (Exhibit 4 of
Attachment D)
Additionally, the information regarding the City’s population and related demographic
information has been updated to reflect the results of the 2000 U.S. Census as follows:
?
Chapter II, Section A. Population has been revised to reflect the most current
demographic data available from the 2000 Census. (Exhibit 1 of Attachment D)
Planning Commission Recommendations
The Planning Commission conducted a review of the revised Draft 2000-2005 Housing
Element at a public hearing held on November 14, 2001. At this hearing the
Commission received public testimony on the Draft Element and discussed possible
revisions to the Element and noted areas of concern. These discussion items are
presented for the Council’s review and consideration.
The Commission expressed a desire to consider or evaluate additional programs that
would address the following issues:
(1) The size of affordable housing units;
(2) The density of affordable housing projects. The Commission’s comments on
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this issue were directed towards ensuring that affordable housing units are
provided adequate living area and are not limited to smaller square footages.
The density issue is a concern that affordable housing units not be exclusively
allocated to high density residential settings, and that these units be provided in
a variety of residential settings.
(3) The Commission expressed a desire to find a way to encourage pet ownership
for those who live in affordable housing.
(4) The Commission presented proposed language to be considered for inclusion in
Implementation Program 3.a., of the Housing Objectives, Goals, Policies and
Programs Section pertaining to programs developed to ameliorate the effects of
Costa-Hawkins. The language presented is as follows:
?
Improve coordination between City Departments and Divisions to monitor
and enforce housing related regulations;
?
Conduct annual site visits to confirm owner occupancy exemptions;
?
Conduct site visits to confirm Ellised units remain unoccupied and
unrented;
?
Create incentives to encourage Ellised properties to re-enter the rental
market;
?
Create incentives to discourage the Ellising of properties; and,
?
Create incentives to encourage the construction of “add-on” units to
existing rent controlled properties.
Staff believes that the Draft Element addresses these issues in Programs 2.h.,
(Facilitate the Development of Housing for Families with Children) a program that
addresses the size of units, and Program 3.a. (Develop Programs to Ameliorate the
Effects of Costa Hawkins) that embodies incentives to preserve affordable housing,
specifically through the following action plans:
?
Develop a comprehensive strategy to address the effects of the Costa-
Hawkins Rental Housing Act on housing affordability
?
Create a package of programs to provide incentives for landlords to
provide affordable housing in exchange for deed-restricted affordable
rental units; and
?
In conjunction with the Rent Control Board, assess feasibility of
modifications to Rent Control Law to encourage the development of multi-
family apartments
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Housing Commission
The City’s Housing Commission reviewed the Draft 2000-2005 Housing Element at its
April 19, 2001 meeting.
Conclusion
The City Council conceptually approved, the Draft 2000-2005 Housing Element earlier
this year. Pursuant to State law, the Draft Element was submitted to HCD for review.
Subsequent to that review, modifications are proposed to address HCD’s concerns.
The Draft 2000-2005 Housing Element is a technical update to the recently adopted and
HCD certified 1998-2003 Housing Element. The proposed modifications include:
changes to the City’s RHNA (Regional Housing Needs Assessment), as recently
determined by SCAG (Southern California Association of Governments); updates to
relevant data cited in the current Housing Element; and refinement to programs, many
of which have been implemented since the adoption of the 1998-2003 Element. No
significant changes to the policies and goals established in the previous Housing
Element have been proposed. The City will meet its housing allocation and existing
programs will not impede the production of units.
Following Council certification of the CEQA documentation and adoption of the 2000-
2005 Housing Element, the document will be submitted to HCD for review and approval.
CEQA STATUS
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An Initial Study has been prepared for the proposed project in accordance with the
California Environmental Quality Act (CEQA) and a Negative Declaration is proposed.
(Attachment E). The 1998-2003 Housing Element proposed a significant number of
new and modified programs. The environmental impacts of these programs were
analyzed in the “Final Environmental Impact Report State Clearinghouse No. 97081035
for the Updated Housing Element”, February 1998. Since many of these programs are
less than two years old and/or have been highly successful, the City has continued
these programs for the 2000-2005 planning period. No new programs are contained in
the 2000-2005 Housing Element Update, but the action plans of some programs have
been modified. The Initial Study examines only the potential environmental effects of
the modified programs in the Draft 2000-2005 Housing Element. The Initial Study
concludes that no potentially significant environmental effects will result. Copies of the
Initial Study and proposed Negative Declaration were made available on September 28,
2001 for a 30-day public review period, which closed on October 29, 2001. A total of 2
comment letters on the proposed Negative Declaration were received. These comment
letters, as well as the responses to them, are included in Attachment E.
PUBLIC NOTIFICATION
The Revised Draft 2000-2005 Housing Element Update has been prepared and was
made available for public review on October 4, 2001. The availability of the document
and the City Council public hearing were noticed by mailing flyers to all people on the
City's list of interested persons and to local non-profit housing developers, affordable
housing advocates, and other interested parties. A display ad was also published in the
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“California” section of The Los Angeles Times and on the City’s web site. A copy of the
notice is included as Attachment A.
BUDGET/FINANCIAL IMPACT
The recommendation presented in this report does not have any budget or fiscal impact.
RECOMMENDATION
Staff respectfully recommends that the City Council conduct a public hearing on the
revised Draft 2000-2005 Housing Element, adopt a Negative Declaration, and adopt the
revised Draft 2000-2005 Housing Element and direct staff to transmit the adopted
document to the State Department of Housing and Community Development (HCD) for
review and certification.
Prepared by: Suzanne Frick, Director
Jay Trevino, AICP, Planning Manager
Amanda Schachter, Principal Planner
Bobby Ray, AICP, Senior Planner
Laura Beck, AICP, Associate Planner
ATTACHMENTS:
A. Public Hearing Notice
B. City Council Staff Report 4/24/01 (w/o attachments)
C. HCD Correspondence (w/o attachments)
D. Proposed Revisions
Exhibits
1. Revisions to Chapter II
2. Chapter III Revised
3. Revisions to Chapter IV
4. Revisions to Chapter VI
5. Revisions to Technical Appendix #2
E. Initial Study/Negative Declaration
F. Resolution Adopting a Negative Declaration
G. Resolution Adopting the 2000-2005 Housing Element
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H. Draft 2000-2005 Housing Element (April 24, 2001)
I. Technical Appendix #1
J. Technical Appendix #2
July 5, 2007
NOTICE OF A PUBLIC HEARING
BEFORE THE SANTA MONICA CITY COUNCIL
SUBJECT:
Adopt Negative Declaration andApprove Draft 2000-2005 Housing
Element.
WHEN:
Tuesday, December 11, 2001 at 6:45 p.m.
WHERE:
Council Chambers
1685 Main Street, Room 213
Santa Monica, California
DESCRIPTION OF PROJECT:
The City of Santa Monica proposes to update its
existing Housing Element which was adopted in April 1998, pursuant to Section 65302
of the California Government Code. One of the seven mandated elements of the
General Plan, the Housing Element establishes a five-year plan for addressing the
City’s housing needs. On April 24, 2001, the City Council conceptually approved the
Draft 2000-2005 Housing Element and directed staff to submit the document to the
State Department of Housing and Community Development (HCD) for review, and to
commence environmental review of the Draft Element. Additional analysis and revisions
to the City’s Draft 2000-2005 Housing Element were required by HCD and are included
in the Revised Draft.
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An Initial Study has been prepared for the proposed project in accordance with the
California Environmental Quality Act (CEQA) and a Negative Declaration is proposed.
The City Council will hear public testimony on the Proposed Negative Declaration and
the Draft 2000-2005 Housing Element and consider adoption and approval of the
documents.
HOW TO COMMENT
: You may comment at the City Council public hearing, or by
writing a letter. Written information received before 3:00 p.m. on the Wednesday before
the hearing will be given to the City Council in their packet. Information received after
that time will be given to the City Council prior to the meeting.
Address your letters to: City Clerk
1685 Main Street, Room 102
Santa Monica, CA 90401
MORE INFORMATION:
You may obtain further information about this project by calling
Associate Planner Laura Beck at (310) 458-8341, or via e-mail at laura-beck@santa-
monica.org. Sections of the Code are available at the Planning Counter during business
hours or available on the City’s web site at www.santa-monica.org. The meeting facility
is handicapped accessible. If you have any disabilities related request, contact at (310)
458-8701 or TTY (310) 458-8696 at least three (3) days prior to the meeting. Santa
Monica ‘Big Blue” Bus Lines #1, #2, #3, #7 and #8 serve City Hall.
Pursuant to California Government Code Section 65009(b), if this matter is
subsequently challenged in Court, the challenge may be limited to only those issues
raised at the Public Hearing described in this notice, or in written correspondence
delivered to the City of Santa Monica at, or prior to, the Public Hearing.
ESPAÑOL:
Esto es una noticia sobre un reporte de los posibles efectos ambientales
del Elemento de Vivienda propuesto para 2000-2005, lo cual puede ser de interes para
usted. Para mas informacion, llame a Carmen Gutierrez al numero (310) 458-8341.
F:\PPD\SHARE\NOTICES\HEFINAL DRAFTCOUNCIL.DOC
Approved as to Form:
By: _______________________
Jay Trevino, AICP
Planning Manager
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PCD:SF:f:\ppd\share\ccreport\hsngelmt\Housing Element Update.doc
Council Mtg: April 24, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Conduct a Public Hearing and Approve in Concept
the Draft 2000-2005 Housing Element for Transmittal to the State
Department of Housing and Community Development (HCD) and Direct
Staff to Prepare Environmental Review.
INTRODUCTION
This staff report recommends that the City Council conduct a public hearing and
approve in concept the Draft 2000-2005 Housing Element for transmittal to the State
Department of Housing and Community Development (HCD) and direct staff to prepare
the environmental review on the document.
BACKGROUND
The Draft 2000-2005 Housing Element is a technical update to the City’s current
Housing Element adopted by the City Council on April 21, 1998. One of seven
mandated elements of the General Plan, the Housing Element establishes a five-year
plan for addressing the City’s housing needs. The Draft Housing Element has been
prepared in conformity with State law. In large measure, the Draft 2000-2005 Housing
Element commits the City to continue housing programs established in the 1998-2003
Housing Element. The Planning Commission held a public hearing and reviewed the
Draft 2000-2005 Housing Element on February 28, 2001. The Housing Commission
received the document on March 8, 2001 and reviewed the document at its April 19,
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2001 meeting. The comments of the Planning Commission are summarized later in this
report. Housing Commission comments are provided as a supplement to this staff
report.
This report provides the following: background information including a summary of
applicable legal requirements, a description of the Draft Element’s contents, a summary
of key technical changes, a summary of the Housing Element goals and changes to
program action plans, and a summary of the Planning Commission’s recommended
modifications to the Element.
ANALYSIS
Applicable Legal Requirements
By law, the City’s Housing Element must analyze existing and projected housing needs,
set forth goals, policies, and programs for addressing those needs, and identify
adequate housing sites. Additionally, the Housing Element must identify potential and
actual constraints upon the maintenance, improvement, or development of housing for
all income levels. Specifically, the legislation requires the following:
The housing element shall consist of an identification and analysis of
existing and projected housing needs and a statement of goals, policies,
and quantified objectives and scheduled programs for the preservation,
improvement, and development of housing. The housing element shall
identify adequate sites for housing, including rental housing, factory-built
housing, and mobile homes and shall make adequate provision for the
existing and projected needs of all economic segments of the community.
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California Housing Element law (Section 65588) requires that local jurisdictions update
their housing elements every five years, however, such updates are contingent on
preparation of future regional housing needs estimates, i.e. fair share targets (“RHNA”).
The agency responsible for assigning these fair share targets for Santa Monica is the
Southern California Association of Governments (SCAG).
SCAG adopted its prior RHNA in 1988, covering the 1988-1994 planning period. In
1994, SCAG was technically required to prepare a RHNA for the 1994-1999 period.
SCAG’s ability to prepare the RHNA, however, was dependent on the State Legislature
appropriating funds for this State-mandated local program. As part of an effort to
balance the State budget in the early 1990s, the Legislature chose not to provide funds
for the mandate and therefore SCAG took the position that its obligation to prepare a
new fair share allocation for member jurisdictions was suspended. In fact, subsequent
legislation was adopted in 1993, 1996 and 1998 to postpone the due dates for the
Housing Element.
Although many communities in southern California did not update their housing
element, Santa Monica chose to do so. In preparing the 1998-2003 Housing Element,
the City engaged in an in-depth, comprehensive evaluation of the City’s housing needs
and resources, housing-related regulations, and programs. The City also estimated its
“fair share” housing need by applying SCAG’s 1988 RHNA calculation, with variations in
some of the calculation assumptions to account for alternative household growth rates.
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Through this evaluation, the City identified the following priority goals and objectives:
preservation of affordable housing threatened by the Costa-Hawkins Rental Housing
Act, the development of housing for families, and reexamination of the City’s
development incentives and standards for affordable housing. The policies and
programs set forth in the 1998-2003 Housing Element directly responded to these
identified priorities.
A summary of the 1998-2003 Housing Element is contained in the staff reports that
were presented to City Council prior to that element’s adoption (Attachment B). The
1998-2003 Housing Element was adopted following an extensive public process to
receive input and to foster a discussion of housing issues and policies for the City. It
was reviewed by an inter-departmental committee comprised of representatives of the
Community and Cultural Services Department, the Housing Division, Rent Control
Administration, the City Manager’s Office, the City Attorney’s Office and the Planning
and Community Development Department. The committee collectively considered
public input and the analyses prepared by the City’s consultants, and formulated the
proposed goals, policies and programs of the Housing Element based on input received
at the public workshops, and the desire to continue to provide the community with a
broad array of affordable housing opportunities.
The 1998-2003 Housing Element was adopted by the City Council on April 21, 1998.
The State Department of Housing and Community Development (HCD) approved the
City’s Housing Element in November 1998. In November 2000, SCAG assigned the
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City a new RHNA allocation for the 1998-2005 planning period. The need to update
the 1998-2003 Housing Element is largely the result of SCAG’s recent action.
Consequently, the Draft 2000-2005 Housing Element is considered a technical update.
As detailed later, the City has been highly successful in meeting many of the objectives
set forth in the 1998-2003 Housing Element and therefore the Draft 2000-2005 Housing
Element includes the same goals and policies. The proposed changes to the Element
reflect changes to the City’s RHNA allocation, updates to relevant data cited in the
Element, and refinement to programs, many of which have been implemented since the
adoption of the 1998-2003 Element. The law also requires that the information within
the Element be updated to reflect current conditions and to reflect the City’s progress
towards meeting the goals and objectives of the current Housing Element. Adoption of
the Housing Element in compliance with State law not only provides the City with a
valuable planning tool but also satisfies a requirement that the City must meet to receive
State housing funds.
The City has retained two consulting firms for this project. Cotton/Bridges/Associates
(CBA) has prepared the technical update to the Draft Housing Element, and Hamilton,
Rabinovitz and Alschuler (HR&A) has prepared technical memoranda in support of the
Housing Element.
Contents of the Housing Element
The Draft 2000-2005 Housing Element is bound under three separate covers -- the
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2000-2005 Housing Element Update, Technical Appendix #1, and Technical Appendix
#2. The latter two documents were prepared by Hamilton, Rabinovitz & Alschuler
(HR&A). The Housing Element Update is organized according to State law as follows:
Section II - Housing Needs. An assessment of housing needs
Section III - Potential Constraints on Housing Production and Conservation. A
discussion of potential constraints on housing production
Section IV- Housing Resources. An assessment of housing resources
Section V - Review of Housing Element Past Performance. A summary of
progress under the 1993 Housing Element and the 1998-2003 Housing Element
Section VI - Housing Objectives, Goals, Policies, and Programs. A description of
the goals, quantified objectives, policies, and programs that the city has chosen
to meet the identified needs.
The memoranda included in Technical Appendix #1 were prepared for the 1998-2003
Housing Element and remain relevant to the analysis in this update. Technical
Appendix #1 includes the following memoranda:
? Results of the 1995 Santa Monica Apartment Tenants Survey.
? The Impacts of the Costa-Hawkins Rental Housing Act on the Rent-
Controlled Apartment Stock in Santa Monica.
? Assessment of the Rent Control Board's Ellis Act Removal Permit Process
as a Potential or Actual "Constraint" on the Development of Housing.
? Assessment of Four Large-Scale Residential Rezoning Actions as a
Potential or Actual "Constraint" on the Development of Housing.
? Assessment of the City's Inclusionary Housing Program (Ordinance 1615)
as a Potential or Actual "Constraint" on the Development of Housing.
? Cumulative Effects of Five City of Santa Monica Requirements on Multi-
Family Housing Projects as a Potential or Actual "Constraint" on the
Development of Housing.
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Technical Appendix #2 analyses the degree to which eight City policies, programs and
regulations, or features of them, operate as “actual or potential governmental
constraints” on the production of new housing. Specifically, HR&A analyzed the impact
of changes to the City’s regulatory framework on housing development. These studies
are grouped into three subsets of analyses and are included as Technical Appendix #2.
The three subsets are as follows:
?
City Council actions to modify development and construction regulations. These
include the development moratoria in the City’s multi-family districts, changes in
multi-family district development standards, and a construction rate program;
?
Specific discretionary review procedures, including Rent Control law removal
permits, the Landmark Ordinance, project scale thresholds for Development
Review Permits, Design Compatibility Permits for condominiums, and various
other discretionary review procedures; and
?
Features of the City’s Affordable Housing Production Program with specific focus
on the affordable housing fee for condominium projects and administrative
procedures for exercising the available mitigation options.
Key Technical Changes
In addition to the technical update necessitated to address the approved RHNA
allocation, the law also requires that the information within the Element be updated to
reflect current conditions and to reflect the City’s progress towards meeting the goals
and objectives of the current Housing Element. Changes were made in the following
areas:
Data Update
?
Projected Housing Needs
?
Funding
?
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Potential for Residential Development in Commercial Districts
?
Potential Governmental and Non-Governmental Constraints
?
Quantified Objectives
?
A brief discussion of each of these key technical changes follows.
Data Update: In preparing the 2000-2005 Housing Element, updated data was obtained,
wherever possible, to provide a portrait of the housing needs and resources available in
Santa Monica. The 1990 Census still provided the primary basis for demographic
characteristics since it remains the most comprehensive and widely accepted source on
demographic characteristics. The following data provide updated information in the
2000-2005 Housing Element:
?
Demographic data from the State Department of Finance, the Santa
Monica-Malibu Unified School District, and the Employment
Development Department as of 2000.
?
Housing market data was updated by obtaining the Year 2000
apartment rents and sales prices of homes through surveys, tax
assessor's files, and other available sources.
?
City agencies and various service agencies were consulted to provide
information on the magnitude of special needs populations as of Year
2000; and
?
Data on lending patterns were updated based on interviews with City
staff and utilization of outside sources where available.
Projected Housing Needs: As discussed, State Housing Element law requires that each
city and county develop local housing programs designed to address its “fair share” of
existing and future housing needs for all income groups, as determined by the
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jurisdiction’s Council of Governments, when preparing the State-mandated Housing
Element of its General Plan. SCAG’s process for adopting the 1999 RHNA concluded
in November 2000.
The RHNA allocation for the City of Santa Monica is 2,208 units of housing to be
constructed over a 7 ½ year period. The City’s total construction need is the sum of
units needed for household growth during the 1998-2005 period (1,133 units), additional
units needed to achieve an ideal vacancy rate, now and in the future (152 units), plus
additional units to account for demolitions and other housing stock losses during the
planning period (923 units), for a total of 2,208 units.
The RHNA allocation distributes the construction need total into four household income
categories: very low income; low income; moderate income; and, above moderate
income. The following table presents the RHNA allocation for Santa Monica.
1999 Regional Housing Needs Assessment Allocation to Santa Monica, 1998-2005
Construction 1998-2005 Existing Replacement Total
Need Household and Future Need
Growth Vacancy
Need
Number of Units 1,133 152 923 2,208
Household Very Low Low Moderate Above Total
Income Income Income Income Moderate
Distribution Income
Number of Units 513 335 431 929 2,208
Percent of Total 23% 15% 20% 42% 100%
Source: SCAG, Final 1999 Regional Housing Needs Assessment
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The City’s zoning laws and policies include substantial incentives for the production of
affordable housing, including height and density bonuses and reduced parking
requirements. In addition, the City operates a number of programs that facilitate the
production of affordable housing. These include loans to private, for-profit developers
and owners and funding to non-profit agencies to acquire or construct housing units.
The City also funds many social service programs which provide emergency shelter,
transitional housing and permanent and supportive housing to individuals and families
with very low incomes.
These and other laws, policies and programs have resulted in the preservation and
production of an extraordinary number of affordable units within the City. The presence
of these units has allowed a very substantial number of low and moderate income
households to live in the City notwithstanding its desirable location and high real estate
values.
In creating housing policy the City has tried to strike a balance between protecting the
existing housing stock, and allowing for the development and production of new housing
for all income groups while protecting the quality of life within the City.
Funding: Increasingly, the threats of federal and state budget cuts have left many local
jurisdictions unable to provide their affordable housing production. Due to these funding
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and revenue reductions, the City must be aggressive in pursuing creative financing
mechanisms. The technical update to the 2000-2005 Housing Element reflects
changes to funding amounts and sources and related affordable housing production
estimates.
Potential for Residential Development in Commercial Districts: The City has long
promoted residential development, or mixed use, in commercial zones. In 1993, the
City amended the Zoning Ordinance to conditionally permit residential development in
the Special Office Commercial (C5) and Industrial Conservation (M1) Districts, and to
permit residential uses in most other commercial districts (BCD, C2, C3, C3C, C4, C6).
In 1995, the City established the Light Manufacturing Studio District (LMSD) to replace
a portion of the M1 and C5 districts. The LMSD permits studio live/work uses, while
preserving existing light industrial uses and providing a location for studio-related uses,
such as film and music production and post-production facilities. The City also permits
residential development in the commercial Bayside Commercial District (BSC), which it
established in early 1996. Moreover, in several districts, the City offers special
incentives for housing. In the C3, C3C and CM districts, any floor area devoted to
residential use is eligible to receive a FAR (Floor Area Ratio) discount of 50 percent. In
BCD, C2, C4, and C6 districts, the City offers increased density if at least 30 percent of
the FAR is residential. These changes have been very successful in bringing residential
development to commercial districts.
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While the 1998-2003 Housing Element included an analysis of sites in commercial
districts that would be most likely to recycle during the planning period and an
assessment of the potential for residential development, the 2000-2005 Housing
Element refines this analysis. The analysis is limited to the downtown, the Broadway
Commercial District and the Main Street corridor since these are the areas where there
has been demonstrated and significant market interest in residential development. This
analysis can be located on Table IV-5 (Residential Unit Potential in Select Commercial
Zones Under Varying Development Scenarios) of the Draft Housing Element.
Potential Governmental and Non-governmental Constraints: The Draft Housing
Element includes a detailed analysis of potential governmental and non-governmental
constraints upon the development, maintenance and improvement of housing. In
assessing whether a City program operates as an actual constraint on housing
production, the Element uses the following definition of “actual government constraint”:
A program will constitute an actual governmental constraint on new housing
production within the meaning of Government Code 65583(a)(4) if the program,
either individually or in combination with other governmental programs, has a
significant adverse impact on the City’s ability to meet its fair share of the
regional need for additional housing determined in accordance with the Southern
California Association of Governments’ regional housing need allocation process.
Since State certification of the1998-2003 Housing Element, the City has modified some
programs and enacted, or indicated an intention to enact, other programs that have
been identified as potential governmental constraints. The Draft 2000-2005 Housing
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Element includes an assessment of these programs. A detailed analysis of many City
policies and programs prepared by HR & A is included in Technical Appendix #2.
Quantified Objective: The Draft 2000-2005 Technical Update includes a quantified
objective that reflects changes in housing market characteristics, available funding for
publicly assisted affordable housing, and the new RHNA allocation. The City’s 1998-
2003 Housing Element established a housing production objective of 1,542 new
housing units; the updated housing element proposes a production objective of 2,208
new units including 513 very low income units, 335 low income units, 431 moderate
income units, and 929 above moderate income units. As discussed this housing
production objective is for the 1998-2005 time period. This housing production objective
will allow the City to provide its “fair share” of new housing to satisfy the region’s
housing needs as determined by the RHNA allocation.
Planning Commission Recommendations
The City’s Planning Commission reviewed the Draft 2000-2005 Housing Element at its
February 28, 2001 meeting and recommended conceptual approval. The Commission
recommended that the population density of the City be presented in the document in
such a way as to factor out large land masses such as the airport. Additionally, the
Commission recognized that the City provides its fair share of housing in terms of
density, and that the City seeks to protect the quality of life and preserve its character
for the residents of Santa Monica.
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Housing Commission Recommendations
The City’s Housing Commission received copies of the Draft 2000-2005 Housing
Element. The Commission discussed the Draft Element at its April 19, 2001 meeting.
Housing Commission comments are provided as a supplement to this staff report.
Conclusion
The Draft 2000-2005 Housing Element is a technical update to the recently adopted and
HCD certified 1998-2003 Housing Element. The proposed modifications include
changes to the City’s RHNA as recently determined by the SCAG, updates to relevant
data cited in the current Housing Element, and refinement to programs, many of which
have been implemented since the adoption of the 1998-2003 Element. No significant
changes to the policies and goals established in the previous Element have been
proposed. The City will meet its housing allocation and existing programs will not
impede the production of units.
Following City Council conceptual approval, this draft document will be transmitted to
the State Department of Housing and Community Development (HCD) for a 60-day
review period. Following this review, the Draft 2000-2005 Housing Element will be
revised as necessary to address HCD’s concerns. The revised Housing Element and
the CEQA documentation will be reviewed by the Planning Commission and then
reviewed by the City Council. Following Council certification of the CEQA
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documentation and adoption of the 2000-2005 Housing Element, the document will be
submitted to HCD for review and approval.
CEQA STATUS
An Environmental Impact Report (EIR) was prepared for the 1998-2003 Housing
Element Update and evaluated the potential environmental impacts of implementation
of the policies and programs contained in the Housing Element. An Initial Study will be
prepared for the Housing Element Update prior to adoption by the City Council. No new
programs are contained in the 2000-2005 Housing Element Update, but the action plans
of some programs have been modified. The Initial Study will examine only the potential
environmental effects of the new and modified programs.
PUBLIC NOTIFICATION
The Draft 2000-2005 Housing Element Update has been prepared and was made
available for public review on February 22, 2001. The availability of the document and
the City Council public hearing were noticed by mailing flyers to all people on the City's
"Big List" and to local non-profit housing developers, affordable housing advocates, and
other interested parties. A display ad was also published in the Westside Weekly
section of the Los Angeles Times and on the City’s web site. A copy of the notice is
included as Attachment A.
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BUDGET/FINANCIAL IMPACT
The recommendation presented in this report does not have any budget or fiscal impact.
RECOMMENDATION
Staff respectfully recommends that the City Council conduct a public hearing on the
Draft 2000-2005 Housing Element, consider changes as proposed by the Planning
Commission, approve the Draft Element in concept, direct staff to transmit the draft
document to the State Department of Housing and Community Development (HCD) for
review and comment, and direct staff to begin the CEQA process.
Prepared by: Suzanne Frick, Director
Jay Trevino, AICP, Planning Manager
Amanda Schachter, Principal Planner
Susan Healy Keene, AICP, Senior Planner
Laura Beck, AICP, Associate Planner
Planning and Community Development Department
ATTACHMENTS:
K. Public Hearing Notice
L. Planning Commission staff report 2/28/01 with Attachments
M. Summary of Housing Element Goals and Changes to Program
Action Plans
N. Draft Housing Element 2000-2005 with Technical Appendices
July 5, 2007
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