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
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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)
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9.56.020 Definitions. Page 1 of 2
Santa Monica Municipal Code
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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.
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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)
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9.56.030 Applicability of chapter. Page 1 of 1
Santa Monica Municipal Code
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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)
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9.56.040 Affordable housing obligation. Page 1 of 1
Santa Monica Municipal Code
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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)
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9.56.050 On-site option. Page 1 of 2
Santa Monioa t~~unicipal Code
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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)
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9.56.060 Off-site option. Page 1 of 1
Santa Monaca Municipal Code
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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)
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9.56.070 Affordable housing fee. Page 1 of 2
Santa Monioa Municipal Code
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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)
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9.56.080 Land acquisition. Page 1 of 1
Santa Monica Municipal Code
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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)
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9.56.090 Fee waivers. Page 1 of 1
Santa f~onica municipal Code
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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
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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)
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9.56.110 Eligibility requirements. Page 1 of 1
Santa Monica Municipal bode
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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)
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9.56.120 Relation to units required by Rent Control Board. Page 1 of 1
Santa Monica Municipal Code
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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
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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)
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9.56.140 Enforcement. Page 1 of 1
Santa Monica Munioipal Code
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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
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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)
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9.56.160 Principles and guidelines. Page 1 of 1
Santa Monica Municipal Oode
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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
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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).