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sr-092992-8bCA:BAR:rordsr.emg/wpfiles/pc City Council Meeting 9-29-92 STAFF REPORT T0: Mayor and City Council FROM: City Attorney SUBJECT: Ordinance Establishing a Moratorium on Multifamily Residential Development with Certain Exemptions in Order to Comply with Proposition R and Declaring the Presence of an Emergency BACKGROUND On November 6, 1990, the voters of the City of Santa Monica approved Proposition R-which 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. On March 3, 1992, the City Council adopted Ordinance Number 1615 (CCS) to meet the requirements of Proposition R. On March 20, 1992, the Santa Monica Housing Council and Robert J. Sullivan filed suit against the City, Santa Monica Housing Council, et al. v. Citv of Santa Monica. Los Angeles Superior Court Case Number SC 016169, contending, in part, that the City had to amend Program 12 of its Housing Element before adopting Ordinance 1615 (CCS). On August 28, 1992, the Court found that the City's adoption of Ordinance No. 1615 (CCS) without first amending Program 12 of the City's Housing Element violated state law. On September 23, 1992, the Court entered judgment ordering the City in relevant part to refrain from enforcement of ordinance 1615 (CCS) until .the City has amended its Housing Element; to amend its Housing Element to reflect the adoption of Proposition R, and, if desired, Ordinance 1615 (CCS); and pending the amending of the Housing Element, to process projects under Program 12 or establish a moratorium. The City appealed the Court's September 23, 1992 judgment on September 24, 1992. The appeal of the Court's judgment automatically stays the judgment, preventing it from taking effect pending the .resolution of the appeal. However, Santa Monica Housing Council and Robert J. Sullivan may ask the Court to lift the stay of this judgment, thereby necessitating the need for this ordinance. PROPOSED ORDINANCE This ordinance would establish a moratorium on multifamily residential development with certain limited exemptions. This ordinance, in large measure, parallels the moratorium ordinances adopted by the City Council prior to its adoption of Ordinance 1615 (CCS) and contains the principal exemptions set forth in those ordinances. However, the moratorium and exemption provisions of this ordinance would only become operative should the judgment in Santa Monica Housing Council, et al. v. City of Santa Monica become effective or the City otherwise be prohibited from enforcing the provisions of Ordinance 1615 (CCS) pursuant to any court order. Pursuant to the Court's judgment, until the City amends its Housing Element,. the City is required to process projects under Program 12 unless it establishes a moratorium. Simply processing development projects pursuant to existing Program 12 provisions would not enable the City to meet the requirements of Proposition R. Thus, should the stay of the Court's judgment be lifted, this emergency moratorium is necessary so that the City will be able to meet the mandate of Proposition R. This ordinance will expire in forty-five (45) days. RECOMMENDATION It is respectfully recommended that the accompanying ordinance be introduced and adopted. PREPARED BY: Joseph Lawrence, Acting City Attorney Barry Rosenbaum, Deputy City Attorney