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sr-092810-7dpity Cour~cit Meeting: September 2, 2~1{l Aerar3a Stem: ~' _ D To: Mayor and City Council Frorn: Marsha Jones Nioutrie, City Attorney Subject: C7rdinance Amending the Plana at the Arboretum t?eveioprnent Agreement Address: 22flfl Colorado C7wner: CSHV Arboretum, i_t_C ~eco€r€rr~en~eci Action Staf# recommends that the City Councii adopt the attached ordinance. xeca~tive z~r~rraary At its rtzeeting on September 14, 2010; the City Council introduced for first reading an ordinance amending the Ptaza at the Arboretum E3evefopment Agreement. the ordinance is now presented to the City Council for adoption. ~re~sared by: Marsha Jones it~outrie, City Attorney Approved: Fo arde to ~o~sncif: Rod Gould City ivtanager 1 ~ ~ ~ RECOP~DDIhiCr tLEOUESTED BY CITY OF SANTA MONICA tiT'HEN I2E.CORDF,D NtAtL. TO City of Szrzta ?Monica City Attorney's f).~tice 1 fi&~ ~c1(lt Street, Thied F-(oor Santa Monica, CA 90 X01 attention: Dapufy City Atto~tev Garv Rhoades 5~ace Aoove Line For Reco!ders Use No Reco.~dn~ Fee Recuired Ciovemment C°ode Section 27~8~ Ah~tEND~4ENT 1v~Utv1I3ER TI IR.EE TC~ I3EV'EI,{?P1titENT ,~f rI2EEltE1VT' THIS .~?~IENDi~IENT NU01~ER. THREE TO DEV'EI OPA~ENT ACiRE.T_',MENT {"Amendment Number Three"} is entered into as of this ___--. day of 2010 {"Effective Data''}, by anc: between THE CITY OF SANTA R~IONICA, a municipal corporation organized and existing pursuant to the laws of the State of California and the Charter of the t:ity of Sa€rta Monica {"City") and CSV ARf3CRETli V1, LLC, a Delaware limited liability company ("CSHI%"} wl#h reference to the following facts: A. CSHti is the owner of that certain real property {"Property''} located in the C"ity of Banta Monica, {:alifornia, which is snore particularly described in Exhibit "A" to this Third Amendment. Exhibit A is hereby in~rporatec9 by reference herein. B. The City and the prior owner of the Propet•fv entered into a Development _lgreement dated as of Daeena6er 16, 198 pursuant to California Government Code Se:,tions fi?R64 et seq. and Santa Ivlonica Municipal Code Chapter 9.48. The ()rigina[ Developtreni Agreement ~~~as recorded on December ] 7, 1987, in the official records of tlz Cotu2ty of Los Angeles ns Instrument Number 87-1 }96737, The Development Agreement was amended on March 16, 199:1. C. The C3riginal Development Agreement and Second Amendrnznt authorised the construction of an office building and multi-residzn.tiaf units, including 97 units of affordable housing, on the subjzct pro~7erty. D. Regarding the production and maintenance of affordable housing califs at the Project, the Original l~zvefopment Ab•ezment and its amendfnent states that Santa ~Y4onica Mcurizipal. Code Section 9.2$ applies to the Project. 'That section has since been reseincled and replaced by Section 9.~b. E. `i he purpose of this Tlsird Amendment is to make the current Affordablz Dousing Production Program (ADPP} ordinance, Section 9Sb, applicable to the Project.. F, The C;ity's Plannuig {'ommission held a duly noticed public hearing on August 4, 2t?IO with respect to this Third Amendment <jnd recommended that the City Council aitopt the proposed antercdmzni. G. In taking this aciion, the City Cocnrcil has ,a} specifically considered and approved the impacts anal benefits of the requzstzd Arnzrdment Number Three and has concluded the this Amendment Number T1n~ee is consistent with the public health, safety, and welfare of the residents of the City and the su~rouncfing region and promotes the goals, objectives, and pohoies of the General Plan, (b) determined that the City has complied with all proaednres required by the L7evaloptnent Agreement Stahatzs with respec;t'to this r1~nendanent Number Tln~ee, and (c} duty authorized the City to enter into this Amencfntent Ntrrnber Three. N{3u%, THEFtEPt~RE, in consideration of the for€going and the covenants and conditions hereinafter set forth; the City and CSHV hereby agree as follows: I. Section l2{€) of the Original Bevelopment Agreement is hereby amended to read as follows: 12. Sections 1.2 {; }and l2 {d} of I3eveloprnent Agreement. ~.{c) Affordable Housing. The provisions of Chapter }.ab of the Santa 1~lonica 1Vlunioipal Code, a copy of which is attached hereto as Exhibit B, and the related Administrative Guidelines for the Affordable Mousing Production Program, as in effect on the date of this atnendmcnt shall. apply to the Project, subject to the following modifications to specific sections: {i) P.~todifying the applicat7an of Section 9.Sfi,0~t}{c) 'to the project, the Project wrli continue to have 97 restricted units and the xnix of low-income and moderate income units will be unchanged notwithstanding any requirements of the Santa iVlonica D2unicipal Code or the City's promulgated Affot•dabie Horsing Production Program Guidelines to due contrary; (ii} Iblodifying the application of Section fi(c}{6} of the Administrative Guidelines to the Project, any tenzuzt of a restricted unit designated as a moderat€ income unit whose income, based on the most recently availably data, exceeds l4~°,4. of the moderate-income limit, will be given ~ one-year notice to vacate such restricted unit and will be given ~flre option to apply for residence in the next available market-rate cntit at the Project, during which one-year period saoh unit shall continue to constitute a restricted unit for ail purposes, and C3wner luill not be required to convert such restricted unit into amarket- raty unit or to convert the next available market-rate tuzit into a restricted. unit." All units required to by affordable to moderate-income households shall be provided ota site and the inclusionaty unit base price shall 'be $$0,{700 per xuzit, adjusted for intlation tram the eff€ctive date of this Ameneitnent, in the manner provided ir. Santa lvlonica b~iunicipal Cade Section 9.~6.0?Q{c}. [Section l2{d) remains unaltered by Amendment Ntnnbyr Three.] 2, P;xcept as amended lay this Amendtnynt Number Three. the. Amendment Number T«=o to the IJeveiopment ~.greyment shall. remain in full force and of#ect in accordance with its terms and conditions. 3. The parties hereto shall cause this Third Ivznendn~ent to be recorded in the Official Records of the Los Acigeies County Recorder's Office. IN WIINF.SS T~'EIEREOF, the parties hereto have duly executed this agreement as of the date and veto- first written above. CITY OF Sa1VTA iiION1CA, a municipal corporation Sv: ROD GOULL) City i~fanager r1TTEST: tvlaria Stewart City Clerk F~PPRO~'LD ~~S TO FORl4t: 1~larsha Tones Nlautrie Cityr Attorney CSHti' .4RBORET€7M, LLC a Delaware Limited liability company By California StaEe Teachers' Retirement Svstem a public entity, its sole member ~5': [~dazne & Title] =1 ERHIBIT A• LEGAL .DESCRIPTION OF THE PROPERTY Parcel A: Lots l~throngh 6 of Tract No. 49694, in the City of Santa Monica, as per map recorded in Book 1175 Pages 37' to 40 inclusive of. Maps in ,the Official Records of the ' County of Los Angeles, State of California. Parcel B: The Lessee's interest only in lease of the real ' property below, dated Mazch 12, 1979 between Southern Pacific Transportation Company as Lessor and Parker Manufacturing Company as Lessee (Instrument No. 86- 184890), held by SoPac Properties, Inc., (formerly known as. Anaheim Hills Development Corp.j following February 11, 1986 assignment by Parker Manufacturing Company to Anaheim Hills Development Corp. (Instrument No. 66-184890). That portion of the right-of-way, 100.0 feet wide of the Southern Pacific Railroad Company in the City of Santa Monica, County of Los Angeles, State of California, as recorded in Book 40, Page, 282 of deeds in the Office of the County Recorder of.said county, described as follows: Beginning at the intersection of the curved northwesterly line of said right-of-way, 100.0 feet wide with the curved northwesterly line of the land described in Parcel 3 of the final order of Condemnation No. 4965S1,.filed July 23, 1945 'and. . entered July 24, 1945, in judgment Book 1553, Page 27, Superior Court, records of said State; said last mentioned curve being concave southeasterly and having a radius of 905.00 feet; a-•radial line of said curve to said intersection bears. north 51 degrees,.34 minutes, 36 second west thence southwesterly and continuing along said curve 94.25 feet through a central angle of 5 degrees, 58 minutes, 02 seconds to a point in a curved line being concentric with and distant southeasterly 40.00 feet measured radially from, said northwesterly line of said right-af-way, 100.00. 'feet wide; said last. described curve being concave southeasterly and having a radius of 11,663.40 feet; a radial line of said curve to said point bears north 29 degrees, 38 minutes, 43 seconds west; thence southwesterly 63b'.65 feet along said concentric curve through a central angle of 3 degrees, 07 minutes, 34 seconds, to the northwesterly line of Twentieth Street, 70.00 feet wide as shown on the Map of Tract No. 9774 in said City and recorded in Book .140, Pages 64 and fi5 of Maps, in the Office of the County Recorder of said county; thence along said last described northeasterly 20709073--45195 line north 44 degrees, 45 'minutes, 25 second west, 40.88 feet to its intersection with said curved northwesterly line of said right-of-way, 100.0 feet wide;. said last-mentioned curve being concave southeasterly and having a radius of 11,703.40 feet; a radial line of said curve to said intersection bears north 32 degrees, 48 minutes, 53 seconds west; thence northeasterly 732.79 feet along said curve, through a central angle of 3 degrees; 35 minutes, 15 seconds to the point of beginning. 20709673--4j5f95 EXHIBIT B CHAPTER 9.56 9.56.010 Findings and purpose. Page 1 of 1 Santa Monica Munic6pal Code iJp Previous P1ext Mtain Searctr Print No Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.010 Findings and purpose. The City's affordable housing production program requires developers of market rate multi-family developments to contribute to affordable housing production and thereby help the City meet its affordable housing need. As detailed in the findings supporting the ordinance codified in this Chapter, the requirements of this Chapter are based on a number of factors including, but not limited to, the City's long-standing commitment to economic diversity; the serious need for affordable housing as reflected in local, state, and federal housing regulations and policies; the demand for affordable housing created by market rate development; the depletion of potential affordable housing sites by market-rate development; and the impact that the lack of affordable housing production has on the health, safety, and welfare of the City's residents including its impacts on traffic, transit and related air quality impacts, and the demands placed on the regional transportation infrastructure. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amended by Ord. No. 2174CCS § 1, adopted 11/08/05) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_010&frames=on 9/17/2010 9.56.020 Definitions. Page 1 of 2 Santa Monica Municipal Code Up Previous Next Main Search Print No Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSING PRODUCTION PROGRAM Definitions. The following words or phrases as used in this Chapter shall have the following meanings: Affordable Housing Fee. A fee paid to the City by amulti-family project applicant pursuant to Section 9.56.070 of this Chapter to assist the City in the production of housing affordable to very low-, low-, and moderate-income households. Affordable Housing Unit. A housing unit developed by amulti-family project applicant pursuant to Section 9.56.050 or 9.56.060 of this Chapter which will be affordable to very low-, low-, or moderate- income households. Affordable Housing Unit Development Cost. The City's average cost to develop a unit of housing affordable to low- and moderate income households. Dwelling Unit. One or more rooms, designed, occupied or intended for occupancy as separate living quarters, with full cooking, sleeping and bathroom facilities for the exclusive use of a single household. Dwelling unit shall also include single-room occupancy units as defined in Santa Monica Municipal Code Section 9.04.02.030.790. .................................. _ ................. Floor Area. Floor area as defined in Santa Monica Municipal Code Section 9.04.02.030.395. .................. _ ................................ HUD. The United States Department of Housing and Urban Development or its successor. Income Eligibility. The gross annual household income considering household size and number of dependents, income of all wage earners, elderly or disabled family members, and all other sources of household income. Industrial/Commercial District. Any district designated in the Santa Monica Zoning Ordinance as a commercial or industrial district. "Low," "Very Low," and "Moderate" Income Levels. Income levels determined periodically by the City based on the United States Department of Housing and Urban Development (HUD) estimate of income for afour-person household in the Los Angeles-Long Beach Primary Metropolitan Statistical Area. The major income categories are: "low-income' (sixty percent or less of the area median), "very low-income' (fifty percent or less of the area median), and "moderate-income" (one hundred percent or less of the area median). Adjustment shall be made by household size as established by the City. Market Rate Unit. A dwelling unit as to which the rental rate or sales price is not restricted by this Chapter. Maximum Affordable Rent. A monthly housing charge which does not exceed one-twelfth of thirty percent of the maximum very low-, low-, and moderate-income levels as defined in this Chapter and adopted each year by the City. This charge shall represent full consideration for housing services and amenities as provided to market rate dwelling units in the project, whether or not occupants of market rate dwelling units pay separate charges for such services and amenities. Housing services and common area amenities include, but are not limited to, the following: parking, use of common facilities including pools or health spas, and utilities if the project is master-metered. Notwithstanding the foregoing, utility charges, to the extent individually metered for each unit in the project, may be passed through or billed directly to the occupants of affordable housing units in the project in addition to maximum allowable rents collected for those affordable housing units. http://www.gcode.us/codes/santamomca/view.php?topic=9-9_56-9_56_020&frames=on 9/17/2010 9.56.020 Definitions. Page 2 of 2 Multi-family Project. Amulti-family residential development, including but not limited to apartments, condominiums, townhouses or the multi-family residential component of a mixed use project, for which City permits and approvals are sought. Multi-family Project Applicant. Any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities which seeks City development permits or approvals to develop amulti-family project. Multi-family Residential District. Any district designated in the Santa Monica Zoning Ordinance as amulti-family residential district. Parcel. Parcel as defined in Santa Monica Municipal Code Section 9.04.02.030.570. _ . .................................................. Vacant Parcel. A parcel in amulti-family residential district that has no residential structure located on it as of August 20, 1998 or which had a residential structure located on it on that date which was subsequently demolished pursuant to a demolition order of the City. No demolition of structures shall be permitted except in accordance with Santa Monica Municipal Code Section 9.04.10.16 et seq. .................................. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amended by Ord. No. 1926CCS § 1, adopted 10/13/98; Ord. No. 2174CCS § 2, adopted 11/08/05; Ord. No. 2191CCS § 1, adopted 6/13/06) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_020&frames=on 9/17/2010 9.56.030 Applicability of chapter. Page 1 of 1 Santa Monica Municipal Code Up Previous Next Main 5earoit Print No Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.030 Applicability of chapter. (a) The obligations established by this Chapter shall apply to each multi-family project for which a development application was determined complete on or after May 25, 2006 involving the construction of two or more market rate units. No building permit shall be issued for any multi-family project unless such construction has been approved in accordance with the standards and procedures provided for by this Chapter. Notwithstanding the above, amulti-family rental housing project that will be developed by a nonprofit housing provider receiving financial assistance through one of the City's housing trust fund programs shall not be subject to the requirements of this Chapter so long as the project is an affordable housing project meeting the requirements of Santa Monica Municipal Code Section 9.04.02.030.065 and the project's affordability obligations will be secured by a regulatory ......................... agreement, memorandum of agreement, or recorded covenant with the City for a minimum period of fifty-five years. (b) Multi-family projects for which a development application was determined complete prior to May 25, 2006 shall be subject to the provisions of Santa Monica Municipal Code Section 9.56.010 et ............................ seq. as they existed on the date the application for the project was determined complete. (c) A designated landmark building or contributing structure to an adopted Historic District that is retained and preserved on-site as part of amulti-family project shall not be considered or included in assessing any of the requirements under this Chapter. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amended by Ord. No. 2191CCS § 2, adopted 6/13/06; Ord. No. 2206CCS § 5, adopted 10/3/06; Ord. No. 2285CCS § 1, adopted 3/24/09) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_030&frames=on 9/17/2010 9.56.040 Affordable housing obligation. Page 1 of 1 Santa Monica Municipal Code Up Previous 1Vext Main Search Print No Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.040 Affordable housing obligation. All multi-family project applicants shall comply with the requirements of this Chapter in the following manner: (a) Multi-family project applicants for multi-family ownership projects of four or more units in multi- family residential districts shall choose one of the two following options: (1) Providing affordable housing units on-site in accordance with Section 9.56.050; ............................ (2) Providing affordable housing units off-site in accordance with Section 9.56.060; ............................ (b) In addition to the options established in subsections (a)(1) and (2), all other multi-family project applicants may also choose one of the following options: (1) Paying an affordable housing fee in accordance with Section 9.5&.070; ............................ (2) Acquiring land for affordable housing in accordance with Section 9.56.080. Amulti-family project application will not be determined complete until the applicant has submitted a written proposal which demonstrates the manner in which the requirements of this Chapter will be met. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amended by Ord. No. 2191CCS § 3, adopted 6/13/06) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_040&frames=on 9/17/2010 9.56.050 On-site option. Page 1 of 2 Santa Monioa t~~unicipal Code Up Previous Next Main Search Print too Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSING. PRODUCTION PROGRAM 9.56.050 On-site The following requirements must be met to satisfy the on-site provisions of this Chapter: (a) For ownership projects of at least four units but not more than fifteen units in multi-family residential districts: The multi-family project applicant agrees to construct at least: (1) twenty percent of the total units as ownership units for moderate-income households, or as an alternative (2) twenty percent of the total units as rental units for low-income households if these rental units are provided by the applicant in accordance with Civil Code Sections 1954.52(b) and 1954.53(a)(2). ................................. (b) For ownership projects of sixteen units or more in multi-family residential districts: The multi-family project applicant agrees to construct at least (1) twenty-five percent of the total units as ownership units for moderate-income households, or as an alternative, (2) twenty-five percent of the total units as rental units for low-income households if these rental units are provided by the applicant in accordance with Civil Code Sections 1954.52(b) and 1954.53(a)(2). ................................. (c) For all other multi-family applicants: The multi-family project applicant agrees to construct at least (1) ten percent of the total units of the project for very-low income households or (2) twenty percent of the total units of the project for low income households or (3) one hundred percent of the total units of a project for moderate income households in an Industrial/Commercial District. (d) Any fractional affordable housing unit that results from the formulas of this Section that is 0.75 or more shall be treated as a whole affordable housing unit (i.e., any resulting fraction shall be rounded up to the next larger integer) and that unit shall also be built pursuant to the provisions of this Section. Any fractional affordable housing unit that is less than 0.75 can be satisfied by the payment of an affordable housing fee for that fractional unit only pursuant to Section 9:56.070(a)(4) or by . ............. constructing all the mandatory on-site affordable units with three or more bedrooms. The Planning and Community Development Department shall make available a list of very low-, low-, and moderate- income levels adjusted for household size, the corresponding maximum affordable rents adjusted by number of bedrooms, and the minimum number of very low- or low-income units required for typical sizes of multi-family projects, which list shall be updated periodically. (e) The multi-family project applicant may reduce either the size or interior amenities of the affordable housing units as long as there are not significant identifiable differences between affordable housing units and market rate units visible from the exterior of the dwelling units, provided that all dwelling units conform to the requirements of the applicable Building and Housing Codes. However, each affordable housing unit provided shall have at least two bedrooms unless (1) the proposed project comprises at least ninety-five percent one bedroom units, excluding the manager's unit, in which cas8 the affordable housing units may be one bedroom, (2) the proposed project comprises at least ninety-five percent zero bedroom units, excluding the manager's unit, in which case the affordable housing units may be zero bedroom units, (3) the proposed project comprises zero and one bedroom units, excluding the manager's unit, in which case the affordable housing units must be at least one bedroom units, or (4) the multi-family project applicant has elected not to pay the http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_050&frames=on 9/1/2010 9.56.050 On-site option. Page 2 of 2 affordable housing fee pursuant to Section 9.58.070(a)(4), in which case the affordable housing units ........................... must be at least three bedroom units. The design of the affordable housing units shall be reasonably consistent with the market rate units in the project. An affordable housing unit shall have a minimum total floor area, depending upon the number of bedrooms provided, no less than the following: 500 square feet 0 bedrooms 1 bedroom 800 square feet 2 bedrooms 850 square feet 3 bedrooms 1080 square feet 4 bedrooms 1200 square feet Affordable housing units in multi-family projects of one hundred units or more must be evenly disbursed throughout the multi-family project to prevent undue concentrations of affordable housing units. (f) All affordable housing units in amulti-family project or a phase of amulti-family project shall be constructed concurrently with the construction of market rate units in the multi-family project or phase of that project. (g) On-site affordable housing units must be rental units in rental projects. In ownership projects, these affordable housing units may be either rental units or ownership units. Affordable housing ownership units shall comply with requirements concerning sales price, monthly payment, and limited equity and resale restrictions as established by resolution of the City Council to ensure that subsequent purchasers are also income-qualified households. (h) Each multi-family project applicant, or his/her successor, shall submit an annual report to the City identifying which units are affordable units, the monthly rent (or total housing cost if an ownership unit), vacancy information for each affordable unit for the prior year, verification of income of the household occupying each affordable unit throughout the prior year, and such other information as may be required by City staff. (i) Amulti-family project applicant who meets the requirements of this Section shall be entitled to the density bonus development standards established in Santa Monica Municipal Code Section 9.04.10.14.040. (j) All residential developments providing affordable housing on-site pursuant to the provisions of this Section shall receive priority building department plan check processing by which housing developments shall have plan check review in advance of other pending developments to the extent authorized by law. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amended by Ord. No. 2191 CCS § 4, adopted 8/13/08) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_050&frames=on 9/17/2010 9.56.060 Off-site option. Page 1 of 1 Santa Monaca Municipal Code tDp Previous aVext a+~ain Search Print No Frames Article 9 PLANNING AND ZONING Chapter 9_56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.060 Off-site The following requirements must be met to satisfy the off-site option of this Chapter: (a) The multi-family project applicant for ownership projects of four or more units in multi-family residential districts shall agree to construct twenty-five percent more affordable housing units than number of affordable housing units required by Section 9 56A50(a) and (b). (b) For all other multi-family project applicants, the applicant shall agree to construct the same number of affordable housing units as specified in Section 9.56.050(c). (c) The multi-family project applicant shall identify an alternate site suitable for residential housing which the project applicant either owns or has site control over (e.g., purchase agreement, option to purchase, lease) subject to City review to ensure that the proposed development is consistent with the City's housing objectives and projects. (d) The off-site units shall be located within aone-quarter mile radius of the market rate units. (e) The off-site units shall satisfy the requirements of subsections (d) through Q) of Section 9.56.050. (f) The off-site units shall not count towards the satisfaction of any affordable housing obligation that development of the alternative site with market rate units would otherwise be subject to pursuant to this Chapter. (g) Exceptions to the location of the off-site units specified in this Section may be granted by the Planning Commission on a case-by-case basis upon a showing by the multi-family project applicant, based upon substantial evidence, that the location of off-site units in a location different from that specified in this Section better accomplishes the goals of this Chapter, including maximizing affordable housing production and dispersing affordable housing throughout the City. (h) The Housing Division of the Resource Management Department shall prepare administrative guidelines to implement this Section. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amended by Ord. No. 2191CCS § 5, adopted 6113/06) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_060&frames=on 9/17/2010 9.56.070 Affordable housing fee. Page 1 of 2 Santa Monioa Municipal Code ilp Previous Next N1aln Searoh Print Plo Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.070 Affordable housing fee. A multi-family project applicant eligible to meet the affordable housing obligations established by this Chapter by paying an affordable housing fee shall pay the fee in accordance with the following requirements: (a) An affordable housing fee may be paid in accordance with the following formulas: (1) Multi-family projects in Multi-family Residential Districts: Affordable housing unit base fee x floor area ofmulti-family project; (2) Multi-family projects in Multi-family Residential Districts on vacant parcels: Affordable housing unit base fee x floor area ofmulti-family project xseventy-five percent; (3) Multi-family projects in Industrial/Commercial Districts on parcels that are either not already developed with multi-family housing or are already developed with multi-family housing, but the multi- family project preserves the existing multi-family housing or a Category C removal permit has been obtained for the existing multi-family housing: Affordable housing unit base fee x floor area of project devoted to residential uses x fifty percent. (4) Multi-family projects with fractional affordable housing units of less than 0.75 based on the formula established in Section 9.56.050(d): .... _ .................... City's affordable housing unit development cost x fractional percentage. (b) For purposes of this Section, the affordable housing unit base fee shall be established by resolution of the City Council. Commencing on July 1, 2006 and on July 1st of each fiscal year thereafter, the affordable housing unit base fee shall be adjusted based on changes in construction costs and land costs. No later than July 1, 2010, and approximately every five year period thereafter, the City will conduct a comprehensive study of these fees and the results of the comprehensive study shall be reported to the City Council. The amount of the affordable housing fee that the multi-family project applicant must pay shall be based on the affordable housing unit base fee resolution in effect at the time that the affordable housing fee is paid to the City. (c) For purposes of this Section, the City's affordable housing unit development cost shall be established by resolution of the City Council. Commencing on July 1, 2007 and on July 1st of each fiscal year thereafter, the City's affordable housing unit development cost shall be adjusted based on changes in construction costs and land costs. No later than July 1, 2010 and approximately every five year period thereafter, the City will conduct a comprehensive study of these fees and the results of the comprehensive study shall be reported to the City Council. The affordable housing fee that the multi- family project applicant must pay shall be based on the affordable housing unit development cost resolution in effect at the time of payment to the City. (d) The amount of the affordable housing unit base fee may vary by product type (apartment or condominium) and shall reflect, among other factors, the relationship between new market rate multi- family development and the need for affordable housing. (e) The affordable housing fee shall be paid in full to the City prior to the City granting any http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_070&frames=on 9/17/2010 9.56.070 Affordable housing fee. Page 2 of 2 approval for the occupancy of the project, but no earlier than the time of building permit issuance. (f) The City shall deposit any payment made pursuant to this Section in a reserve account separate from the General Fund to be used only for development of very low- and low-income housing, administrative costs related to the production of this housing, and monitoring and evaluation of this affordable housing production program. Any monies collected and interest accrued pursuant to this Chapter shall be committed within five years after the payment of such fees or the approval of the multi-family project, whichever occurs later. Funds that have not been appropriated within this five-year period shall be refunded on a pro rata share to those multi-family project applicants who have paid fees during the period. Expenditures and commitments of funds shall be reported to the City Council annually as part of the City budget process. (g) An affordable housing fee payment pursuant to this Section shall not be considered provision of affordable housing units for purposes of determining whether the multi-family project qualifies for a density bonus pursuant to Government Code Section 65915. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amended by Ord. 1926CCS § 2, adopted 10!13/98; Ord. No. 2174CCS § 3, adopted 11/8/05; Ord. No. 2191CCS § 6, adopted 6/13/06) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_070&frames=on 9/17/2010 9.56.080 Land acquisition. Page 1 of 1 Santa Monica Municipal Code tJp Previous Next Main Search Print fJo games Article 9 PLANNING AND ZONING Chapter 4.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.080 Land acquisition. A multi-family project applicant may meet the affordable housing obligations established by this Chapter by making an irrevocable offer: (a) dedicating land to the City or anon-profit housing provider, (b) selling of land to the City or anon-profit housing provider at below market value, or (c) optioning of land on behalf of the City or anon-profit housing provider. Each of these options must be for a value at least equivalent to the affordable housing obligation otherwise required pursuant to this Section. The multi-family project applicant must identify the land at the time that the development application is filed with the City. Any land offered pursuant to this Section must be located within one-quarter mile radius of the market rate units unless the multi-family project applicant demonstrates that locating the land outside of this radius better accomplishes the goals of this Chapter, including maximizing affordable housing production and dispersing affordable housing throughout the City. The City may approve, conditionally approve or reject such offers subject to administrative guidelines to be prepared by the Housing Division of the Resource Management Department. If the City rejects such offer, the multi- family project applicant shall be required to meet the affordable housing obligation by other means set forth in this Chapter. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_080&frames=on 9/17/2010 9.56.090 Fee waivers. Page 1 of 1 Santa f~onica municipal Code !Jp Previous Next NBain SearcFa Print tdo Framea Article 9 PLANNING AND ZONING Chapter 9.56._AFFORDABLE HOUSING PRODUCTION_PROGRAM 9.56.090 Fee waivers. The Condominium and Cooperative Tax described in Section 6.76.010 of the Santa Monica ...................... ..... Municipal Code and the Park and Recreation Facilities Tax established in Chapter 6:.80 of Article 6 of the Santa Monica Municipal Code shall be waived for required affordable housing units and for low-, very low-, and moderate-income dwelling units developed by the City or its designee using affordable housing fees. However, any multi-family project applicant who elects to pay an affordable housing fee shall not be eligible for any fee waiver under this Section. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amemded by Ord. No. 2285CCS § 2, adopted 3/24/09) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_090&frames=on 9/17/2010 9.56.100 Pricing requirements for affordable housing units. Page 1 of 1 Santa Monica Municipal Oode Up Previous Next hta6n ~earoh Print No Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.100 Pricing requirements for affordable housing units. The City Council shall, by resolution, on an annual basis, set maximum affordable rents and maximum affordable purchase. prices for affordable housing units, adjusted by the number of bedrooms. Such maximum affordable rents shall be set at rates such that qualified occupants for Iow- income units pay monthly rent that does not exceed thirty percent of the gross monthly household income for households earning sixty percent of the median income, that qualified occupants for very low income units pay monthly rent that does not exceed thirty percent of the gross monthly household income for households earning fifty percent of the median income, and that qualified occupants for moderate- income units pay monthly rent that does not exceed thirty percent of the gross monthly household income for households earning one hundred percent of the median income. Such maximum affordable purchase price shall be set at rates such that qualified occupants for low income units pay total monthly housing costs (mortgage payment, property taxes, homeowners' insurance, property mortgage insurance, homeowners' association fees) that do not exceed thirty-eight percent of the gross monthly household income for households earning sixty percent of the median income and that qualified occupants for very low-income units pay total monthly housing costs (mortgage payment. property taxes, homeowners' insurance, property mortgage insurance, homeowners' association fees) that do not exceed thirty-eight percent of the gross monthly household income for households earning fifty percent of the median income and that qualified occupants for moderate income. units pay total monthly housing costs (mortgage payment, property taxes, homeowners' insurance, property mortgage insurance, homeowners' association fees) that do not exceed thirty-eight percent of the gross monthly household income for households earning one percent of the median income. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amemded by Ord. No. 2285CCS § 3, adopted 3/24/09) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_100&frames=on 9/17/2010 9.56.110 Eligibility requirements. Page 1 of 1 Santa Monica Municipal bode Up Previous Next (wain Search Print No Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.110 Eligibility requirements. (a) Only Idw-income, very low-income, and moderate-income households shall be eligible to occupy or own and occupy affordable housing units: The City shall develop a list of income-qualified households. Multi-family project applicants shall be required to select households from the City- developed list of income-qualified households, except applicants of ownership projects of four or more units in the City's multi-family residential zones may themselves select income-qualified households which shall be subject to eligibility certification by the City. (b) The City shall develop administrative guidelines for the tenant and purchaser selection process detailed in this Section, which shall establish, at a minimum, the timing by which affordable housing units in a project must be leased or sold and occupied, both initially after issuance of the certificate of occupancy for the project and upon subsequent vacancies in the affordable housing unit. The guidelines may also establish priorities for income-qualified tenants. (c) The following individuals, by virtue of their position or relationship, are ineligible to occupy an affordable housing unit: (1) All employees and officials of the City of Sarita Monica or its agencies, authorities, or commissions who have, by the authority of their position, policy-making authority or influence over the implementation of this Chapter and the immediate relatives and employees of such City employees and officials; (2) The immediate relatives of the applicant or owner, including spouse, children, parents, grandparents, brother, sister, father-in-law, mother-in-law; son-in-law, daughter-in-law, aunt. uncle, niece, nephew, sister-in-law, and brother-in-law. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amemded by Ord. No. 2285CCS § 4, adopted 3/24/09) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_110&frames=on 9/17/2010 9.56.120 Relation to units required by Rent Control Board. Page 1 of 1 Santa Monica Municipal Code Up Previous Next Main Search Print No Frames Article 4 PLANNING AND ZONING Chapter 4.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.120 Relation to units required by Rent Control Board. Very low-income, low-income, and moderate-income dwelling units developed as part of a market rate project, pursuant to replacement requirements of the Santa Monica Rent Control Board, shall count towards the satisfaction of this Chapter if they otherwise meet applicable requirements for this Chapter including, but not limited to, the income eligibility requirements, deed restriction requirements, and pricing requirements. New inclusionary units required by the Rent Control Board which meet the standards of this Chapter shall count towards the satisfaction of this Chapter. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amemded by Ord. No. 2285CCS § 5, adopted 3/24/09) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_120&frames=on 9/17/2010 9.56.130 Deed restrictions. Page 1 of 1 Santa Monica Municipal Code Up Previous Plext Main Search Print too Frames Article 9 PLANNING AND ZONING Chapter 9 56 AFFORDABLE HOUSING PRODUCTION PROGRAM, 9.56.130 Deed restrictions. Prior to issuance of a building permit for a project meeting the requirements of this Chapter by providing affordable units on-site or off-site, the multi-family project applicant shall submit deed restrictions or other legal instruments setting forth the obligation of the applicant under this Chapter for City review and approval. Such restrictions shall be effective for at least fifty-five years. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_130&frames=on 9/17/2010 9.56.140 Enforcement. Page 1 of 1 Santa Monica Munioipal Code Up Previous Next Main Search Print No Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSING PROD_U_CTION PROGRAM 9.56.140 Enforcement. No building permit or occupancy permit shall be issued, nor any development approval granted, for a project which is not exempt and does not meet the requirement of this Chapter. All affordable housing units shall be rented or owned in accordance with this Chapter. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_140&frames=on 9/17/2010 9.56.150 Annual report. Page 1 of 1 Santa Monica Municipal Code !!p previous Plext Main Search print No Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.150 Annual report. The Housing Division of the Resource Management Department shall submit a report to the City Council on an annual basis which shall contain information concerning the implementation of this Chapter. This report shall also detail the projects that have received planning approval during the previous year and the manner in which the provisions of this Chapter were satisfied. This report shall further assess whether the provisions of Proposition R have been met and whether changes to this Chapter or its implementation procedures are warranted. In the event the provisions of Proposition R have not been met, the City Council shall take such action as is necessary to ensure that the provisions will be met in the future. This action may include, but not be limited to, amending the provisions of this Chapter or its implementation. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21 /98) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_150&frames=on 9/17/2010 9.56.160 Principles and guidelines. Page 1 of 1 Santa Monica Municipal Oode Up Previous PJext t+~ain Search Print iVo Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.160 Principles and guidelines. (a) In addition to the administrative guidelines specifically required by other provisions of this Chapter, the City Manager or his or her designee shall be the designated authority to develop and implement rules and regulations pertaining to this Chapter, to enter into recorded agreements with multi-family project applicants, and to take other appropriate steps necessary to assure that the required affordable housing units are provided and are occupied by very low-, low-, and moderate-income households. (b) Within one year from the passage of this Chapter, administrative rules and regulations pertaining to this Chapter shall be brought before the City Council for adoption. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amemded by Ord. No. 2285CCS § 6, adopted 3/24/09) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_160&frames=on 9/17/2010 9.56.170 Adjustments or waivers. Page 1 of 1 Santa Monica Muericapal Code Up Previous Next Main Searoh Print No Frames Article 9 PLANNING AND ZONING Chapter 9.56 AFFORDABLE HOUSINGPRODUCTION PROGRAM 9.56.170 Adjustments or waivers. (a) Amulti-family project applicant may request that the requirements of this Chapter be adjusted or waived based on a showing that applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property. (b) To receive an adjustment or waiver, the applicant must submit an application to the Director of Resource Management, or his/her designee, at the time the applicant files amulti-family project application. The applicant shall bear the burden of presenting substantial evidence to support the request and set forth in detail the factual and legal basis for the claim, including all supporting technical documentation. (c) In making a determination on an application to adjust or waive the requirements of this Chapter, the Director of Resource Management, or City Couhcil on appeal, may assume each of the following when applicable: (1) The applicant is subject to the affordable housing requirement of this Chapter; (2) The applicant will benefit from the inclusionary incentives set forth in this Chapter and the City's Municipal Code; (3) The applicant will be obligated to provide the most economical affordable housing units feasible in terms of construction, design, location and tenure. (d) The Director of Resource Management shall render a written decision within ninety days after a complete application is filed. The Director's decision may be appealed to the City Council if such appeal is filed within fourteen consecutive calendar days from the date that the decision is made in the manner provided in Part 9.04.20.24, Sections 9.04.20.24.010 through 9.04.20.24.040 of this Code. (e) If the Director of Resource Management, or City Council on appeal, upon legal advice provided by or at the behest of the City Attorney, determines that applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property, the affordable housing requirements shall be adjusted or waived to reduce the obligations under this Chapter to the extent necessary to avoid an unconstitutional result. If an adjustment or waiver is granted, any change in the use within the project shall invalidate the adjustment or waiver. If the Director, or City Council on appeal, determines that no violation of the United States or California Constitutions would occur through application of this Chapter, the requirements of this Chapter remain fully applicable. (Added by Ord. No. 2174CCS § 4, adopted 11/8/05; amended by Ord. No. 2207CCS § 10, adopted 10/3/06) http://www.gcode.us/codes/santamonica/view.php?topic=9-9_56-9_56_170&frames=on 9/17/2010 Reference Ordinance No. 2325 (CCS) and Amended Agreement No. 6083 (ccs). Reference Ordinance No. 2325 (CCS) and Amended Agreement No. 6083 (ccs).