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SR-062706-7C (2) e .- JCilyot Santa Monica" City Council Report City Council Meeting: June 27, 2006 Agenda Item: 1-C- To: Mayor and City Council From: Marsha Jones Moutrie, City Attorney Subject: Interim Ordinance Modifying an Interim Ordinance to Eliminate the Cut Off Date for Registration of Bootleg Units with the Rent Control Board and Extending it to May 31,2008 Recommended Action This staff report recommends that the City Council consider for first reading an ordinance modifying interim Ordinance Number 2149 (CCS) to eliminate the cut off date for registration of bootleg units with the Rent Control Board and extending the interim ordinance to May 31,2008. Executive Summary The attached, proposed ordinance would eliminate the April 22, 2003 cut off date for registration of bootleg units (i.e., residential units that were constructed or created without building permits or other approvals) with the Rent Control Board that currently exist in Ordinance Number 2149 (CCS). It would also extend the ordinance until May 31, 2008. There would be no costs associated with the implementation of the Ordinance. 1 Discussion Backqround On April 10, 1979, the voters adopted Santa Monica's Rent Control Law, which includes a provision requiring the Rent Control Board to require registration of "controlled rental units" within 60 days of the law's adoption. The term "controlled rental unit" is defined to exclude units constructed after the Rent Control Law's adoption. Santa Monica City Charter Section 1801 (c)(5). On December 16, 2003, the City Council adopted interim Ordinance Number 2100 (CCS) to address the reality that there were a significant number of units in the City which were registered with the Board, but which were illegally constructed or created without building permits or other approvals and therefore might pose risks to individual safety and public welfare. In order to address both safety concerns and legal issues, staff recommended and Council agreed to waive certain development standards for bootlegged units registered with the Rent Control Board as of April 22, 2003. Thus, Ordinance 2149 (CCS) allowed bootlegged, controlled units to remain in use if they could be made to meet habitability standards as opposed to zoning requirements. The ordinance included an April 22, 2003 deadline for registration of such units to preclude the possibility of an owner creating new illegal units to take advantage of the relaxed zoning standards authorized by the interim ordinance. The initial interim ordinance was 2 then extended by Ordinance Number 2113 (CCS), adopted January 27, 2004, and by Ordinance Number 2149 (CCS), adopted February 8, 2005. The Rent Control Board has requested that the registration deadline be eliminated. The Board believes that it is able to determine whether a bootleg unit was in existence or not as of the Rent Control Law's registration deadline and fear that the cutoff date may preclude the legalization of authentic bootleg units which were extant in 1979. Making the provisions of the ordinance permanent will occur in conjunction with the Land Use Element/Zoning Ordinance Update. Since the completion of the update has been postponed to the Spring of 2008, it is necessary to extend the provisions of the ordinance to May 31, 2008. Alternatives Alternatively, the Council could reject the Rent Control Board's proposal to eliminate the cut off date. This approach would reduce any possibility of property owners circumventing current parking and setback standards by illegally creating and registering new units claiming they were in existence in 1979. Budqet/Financial Impact There are no costs associated with the implementation of the proposed ordinance. 3 Prepared by: Marsha Jones Moutrie Attachment: Ordinance Approved: Forwarded to Council: f: \atty\muni\strpts \mj m \bootlegsnocutoffrept.doc 4 f: \atty\m u n i\laws \ba rry\bootlegsnocutoffrev. d oc Council Meeting 6-27-06 Santa Monica, California ORDINANCE NUMBER _ (CCS) (City Council Series) AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA MODIFYING AND EXTENDING AN INTERIM ORDINANCE WAIVING CERTAIN DEVELOPMENT STANDARDS FOR RENTAL UNITS WHICH WERE BUILT OR CREATED WITHOUT PERMITS AND REGISTERED WITH THE RENT CONTROL BOARD PRIOR TO APRIL 22,2003 TO ELIMINATE THE CUT OFF DATE FOR REGISTRATION OF UNITS WITH THE RENT CONTROL BOARD THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. Findinqs and Purpose. The City Council finds and declares: (a) On April 10, 1979, the voters of Santa Monica amended the City Charter by adopting Article 18, the City's Rent Control Law. (b) Section 1800(c) of the Rent Control Law, with specified exceptions, defines controlled rental units as all residential rental units in the City of Santa Monica including mobile homes. In general terms, the Rent Control Law governs residential units rented or offered for rent prior to April 1 0, 1979. (c) Section 1803(q) of the Rent Control Law requires owners to register all controlled residential rental units with the Rent Control Board. (d) Some of the units registered had been constructed or created without building permits or other City approvals. These units are commonly referred to as bootlegged units. 1 (e) Although bootlegged units may constitute controlled rental units, these units' condition nevertheless may raise issues relating to individual safety and public welfare. (f) The City estimates that there are approximately 1,000 more units registered with the City's Rent Control Board than are included on the County Assessor's roll and assumes that most of this class of registered units constitute bootlegged units. (g) Since bootlegged units were built without required permits, there was no official determination at the time of construction that these units met safety and habitability standards established by State and local law and there has likely been no such determination since the time of their construction. (h) Staff often learns of a bootlegged unit from a complaint raised about the unit made by the unit's occupant or a neighbor; and in responding to such complaints, Building and Safety staff frequently discover habitability violations, including lack of heat and hot water, improper electrical wiring, compromised water, improper gas and waste connections, and improper exits. However, these serious hazards can usually be remedied and the units rendered habitable. (i) Apart from this subset of units that have habitability problems, most bootlegged units do not comply with local zoning requirements, particularly parking, density and set back requirements. While the failure to comply with such zoning requirements can impact the neighborhood welfare, these conditions have now been present for over twenty years. 0) Once a complaint regarding a bootlegged unit is received by Building & Safety staff, an inspection is undertaken and citation issued if warranted. (k) An owner of a bootlegged unit may seek a removal permit from the Rent Control Board if the unit is extremely substandard and cannot be rendered habitable; removal 2 permits are not available for units which can be made habitable. While owners of these latter units must bring them into compliance with habitability and other legal requirements, they are frequently unable to do so since these units do not and cannot meet all of the City's zoning requirements. (I) This conflict between City laws creates an untenable situation both for the property owner and for City staff. Consequently, the City Council finds and declares that the public health, safety and general welfare require adoption of an interim ordinance to waive certain current development standards that govern bootlegged units if these units meet or can be repaired to meet habitability standards and these units are registered with the Rent Control Board in accordance with the Rent Control Law. (m) Therefore, the City's zoning and planning regulations should be revised to waive certain current development standards that govern bootlegged units if these units meet or can be repaired to meet habitability standards and these units are properly registered with the Rent Control Board. (n) Pending completion of these permanent revisions, which will be implemented in conjunction with the Land Use Element/Zoning Ordinance Update, in order to protect the public health, safety, and welfare, it is necessary on an interim basis to change current development standards as they relate to the development standards that govern bootlegged units. (0) In light of these concerns, the City Council adopted Ordinance Number 2100 (CCS) on December 16, 2003, which waived certain development standards for rental units which were built or created without permits and registered with the Rent Control Board prior to April 22, 2003. On January 27,2004, the City Council then adopted Ordinance Number 3 2113 (CCS) which extended the terms of Ordinance 2100 (CCS) to March 11, 2005. On February 8, 2005, the City Council then adopted Ordinance Number 2149 (CCS) which extended the terms of Ordinance 2100 (CCS) to March 11, 2007. (p) Elimination of the April 22, 2003 cutoff date for registration of bootleg units is warranted since it will enable the Rent Control Board to legalize authentic bootleg units which were extant in 1979. (q) Consequently, it is necessary for this ordinance to modify and extend the provisions of Ordinance Number 2100 (CCS), Ordinance Number 2113 (CCS) and Ordinance Number 2149 (CCS) up to an including May 31,2008, to establish on an interim basis the following development standards: SECTION 2. Bootleq Units. (a) A rental unit registered with the Santa Monica Rent Control Board which was built or created without City planning or building permits shall not be required to meet the set back and density requirements of the City's Zoning Ordinance if the unit is or can be made habitable as determined by the City's Building Official. (b) A rental unit exempt from set back and density requirements pursuant to subsection (a) of this Section shall be required to provide parking for the unit pursuant to Santa Monica Municipal Code Section 9.04.10.08.040 unless the City's Parking and Traffic Engineer determines that the provision of parking is not feasible. Parking which would result in a significant reduction in yard space is not feasible. 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