SR-032806-7B (2)
., lj
MAR 2 8 2006
PCD:AA:AS:J L:TK: F:\CityPlanning\Share\COUNCI L \STRPT\2006\Density Bonus Extension 032806.doc
March 28, 2006 Santa Monica, California ,
TO: Mayor and Council members
FROM: City Staff
SUBJECT: Introduction and First Reading of a Proposed Interim Ordinance
Extending, with Modifications and Clarifications, the Provisions of
Ordinance Number 2176 (CCS) Which Modified the Density Bonus
Provision of the Zoning Ordinance In Accordance with State Density
Bonus Law.
INTRODUCTION
This report recommends that the City Council introduce for first reading an interim
ordinance extending Ordinance Number 2176 (CCS) until May 11, 2008. This
ordinance modified the density bonus provisions of the Zoning Ordinance in accordance
with State density bonus law. Ordinance Number 2176 (CCS) will expire on May 15,
2006 unless extended prior to that date.. The proposed ordinance is included with this
report as Attachment A.
DISCUSSION
The attached ordinance extends the density bonus provisions adopted by the Council
on February 14, 2006, and clarifies the calculation of development bonuses in the City's
commercial and industrial zones.
The initial interim ordinance approved by the Council modified the City's existing density
bonus regulations to alter the number of affordable units that developers must agree to
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MAR 2 8 2.00B
set aside to qualify for a density bonus and the corresponding density bonus
percentages; to permit density bonuses for specified common interest developments,
senior citizen developments, qualifying mobilehome parks, and donations of land; to
authorize density bonuses for affordable housing developments that include a child care
facility on site; and to provide required incentives, concessions, and development
waivers.
In the City's commercial and industrial districts where housing is authorized, the Zoning
Ordinance does not place any limit on the number of dwelling units that must be
constructed on site. Instead, a developer can construct as many units as the developer
chooses subject to height, stepback, floor area and other zoning requirements. Since
the Zoning Ordinance does not establish a limitation on density in the districts, it is not
clear that the State Density Bonus law applies. Notwithstanding this, the City has
historically provided a development bonus, which has been characterized as a "density"
bonus, to all housing developments in these districts in the form of floor area ratio
discounts. The initial interim ordinance continued this approach by providing FAR
discounts in the BSC, BCD, C2, C3, C3-C, C4, C6, and CM Zoning Districts. The initial
interim ordinance also established a FAR discount in the C5 and CP Districts for the first
time. This proposed extension ordinance would continue these provisions.
Unlike in the commercial districts, the initial interim ordinance did not address the
calculation of development bonuses in the M1 and LMSD districts. The City's Zoning
Ordinance currently offers development bonuses incentives in the M1 and LMSD
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industrially zoned districts for artist studios by providing additional FAR for these
projects. The proposed ordinance would maintain these provisions. The Zoning
Ordinance does not currently provide development bonuses in the M1 zoning district for
multi-family dwelling units, which are conditionally permitted in that zone. The proposed
ordinance would establish a 35% development bonus for qualifying multi-family housing
developments in the M1 zoning district. Housing, other than artist studio housing, is not
permitted in the LMSD zoning district; therefore, no change in the initial interim
ordinance is required.
The new proposed language would read as follows:
Pursuant to Santa Monica Municipal Code Section 9.04.08.34.060(b) [M1 Zoning
District] and Santa Monica Municipal Code Section 9.04.08.35.050(b)(2) [LMSD
Zoning District], development bonuses are provided to artist studios in the
form of a floor area ratio bonus over the otherwise allowable maximum floor area
ratio. These provisions are not modified by this Ordinance. In the M1 Zoning
District, a floor area ratio bonus of thirty-five (35%) over the otherwise allowable
maximum floor area ratio shall be accorded housing developments in that district.
The interim ordinance also codifies the City's current practice of excluding the floor area
ratio bonus in an amount which corresponds to the State density bonus percentage for
purposes of calculating the number of affordable housing units required in the housing
development. This interim ordinance further clarifies that a developer may request a
lesser density bonus than available under this ordinance and state law without a
corresponding reduction in the required number of affordable units. Additionally, the
cost of City review of any financial information which a developer is required to submit
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under this ordinance, including any necessary consultant review, shall be borne by the
developer.
The interim ordinance will be extended until May 11, 2008. During this time staff will
prepare permanent language as part of the comprehensive evaluation of the City's Land
Use Element and Zoning Ordinance.
CEQA STATUS
The proposed Ordinance extends the revisions to the City's density bonus law to
comply with changes to State law enacted by the Legislature through the adoption of
Senate Bills 1818 and 435. The revisions modify the criteria and incentives offered to
qualifying developments, but do not authorize construction not already permitted under
the City's existing codes. Moreover, most of the incentives/concessions that the City
has designated as a matter of right are already authorized by the Zoning Ordinance,
although certain of these incentives currently require discretionary approval. Also, it is
uncertain how many projects will seek to utilize the provisions of State law and this
Ordinance and where such projects might be located in the City. Further, each
individual project will be subject to its own environmental review. Consequently, the
attached proposed ordinance is exempt from the requirements of the California
Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3) of Title 14 of the
California Code of Regulations since it can be seen with certainty that there is no
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possibility the adoption and implementation of this Ordinance may have a significant
effect on the environment.
PUBLIC NOTICE
A legal advertisement was published in the "California" section of the Los Anqeles
Times at least ten consecutive calendar days prior to the hearing and sent to all
neighborhood organizations. A copy of the notice is contained in Attachment B.
BUDGET/FINANCIAL IMPACT
The recommendation presented in this report has no budget or financial impact.
RECOMMENDATION
Staff recommends that the City Council introduce for first reading the interim ordinance
included in Attachment A.
PREPARED BY: Andy Agle, Interim Director
Amanda Schachter, Planning Manager
Jonathan Lait, AICP, Principal Planner
Tony Kim, Associate Planner
Planning and Community Development Department
Attachments:
A.
S.
Proposed Interim Ordinance
Public Notice
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ATTACHMENT A
PROPOSED INTERIM ORDINANCE
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f:\atty\muni\laws\barry\Density Bonus Interim Ordinance 3-28-06
City Council Meeting 3-28-06 Santa Monica, California
(CCS)
ORDINANCE NUMBER
(City Council Series)
AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA EXTENDING, WITH MODIFICATIONS AND CLARIFICATIONS, THE
INTERIM ORDINANCE MODIFYING THE CITY'S DENSITY BONUS AND
AFFORDABLE HOUSING INCENTIVES IN ACCORDANCE WITH STATE DENSITY
BONUS LAW
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION 1. Findinqs and Purpose. The Council finds and declares:
(a) In September 2004, the Governor signed SB 1818 which significantly
changed the State's density bonus law. SB 1818 became effective on January 1,
2005.
(b) This law imposes new state housing mandates on California cities in
the form of required density bonuses and incentives for housing developers. The
law lowers both the set-aside requirements for affordable units and the density
bonus. As additional affordable units are set aside, it gradually increases the
density bonus to a maximum of 35 percent. This law also provides housing
developers with additional incentives or concessions as the percentage of
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affordable units is increased. It also permits housing developers to request a
waiver of development standards if necessary to make a development feasible.
Cities must grant the requested concessions unless certain findings are made.
SB 1818 also includes density bonus provisions for senior housing development
and for housing developers that donate land to the City for affordable housing.
This legislation also continued previous density bonus provisions to encourage
the inclusion of child care facilities in affordable housing developments.
(c) In September 2005, the Governor also signed into law SB 435. This
law expanded the scope of developments entitled to obtain density bonuses to
include senior mobilehome parks, community apartment developments, and
stock cooperatives and made additional clarifications to the law.
(d) SB 1818 and SB 435 require cities to adopt implementing ordinances.
Notwithstanding the City's constitutional right to control land use, this proposed
interim ordinance incorporates the new density bonus provisions and establishes
an implementation process addressing the incentives and concessions required
by State law.
(e) The City has received applications from developers seeking to take
advantage of the State's new density bonus provisions.
(f) In accordance with State law, this proposed interim ordinance would
modify the City's existing density bonus regulations to alter the number of units
that developers must agree to set aside as affordable to qualify for a density
bonus and the corresponding density bonus percentages; to permit density
bonuses for common interest developments, senior citizen developments,
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qualifying mobilehome parks, and donations of land; to authorize density
bonuses for affordable housing developments that include a child care facility on
site; and to provide required incentives, concessions, and development waivers.
(g) The City Council finds and declares that the public health, safety and
general welfare requires adoption of an interim ordinance since these revisions
are mandated by State law and the City has received development applications
that must be reviewed in accordance with State law.
(h) The City's zoning and planning regulations should be revised to be
consistent with State law requirements. These permanent revisions will be
implemented in conjunction with the Land Use Element/Zoning Ordinance
update.
(i) In light of these concerns, the City Council adopted Ordinance Number
2176 (CCS) on February 14, 2006 which modified the City's density bonus and
affordable housing incentives in accordance with State density bonus law.
However, that ordinance will expire on May 14, 2006 unless it is extended.
U) Pending completion of this review and revision, in order to protect the
public health, safety, and welfare, it is necessary on an interim basis to modify
the City's density bonus requirements as set forth in Section 2 of this Ordinance
and extend the initial interim ordinance until May 11, 2008.
SECTION 2. Affordable Housing Incentives/Density Bonuses. The following
density bonuses and developer incentives/concessions shall be provided when a
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developer of a housing development seeks and agrees to construct a specified
percentage of housing for very low and lower income households, a senior citizen
housing development, a qualifying mobilehome park, a common interest for-sale
development for moderate income households, or seeks and agrees to donate land or
provide child care facilities:
(a) Purpose. The purpose of this Section is to establish procedures for
implementing state density bonus requirements, as set forth in California
Government Code Sections 65915, as amended, and to increase the production
of affordable housing, consistent with the City's goals, objectives, and policies.
(b) Definitions. The following definitions shall apply to this Section:
(1) Affordable Housing Production Program. Chapter 9.56 of the
Santa Monica Municipal Code and the Administrative Guidelines for the
Affordable Housing Production Program.
(2) Affordable Housing Units. Dwelling units for which rental or
ownership costs do not exceed the limits stated in Section 65915 of the California
Government Code. Dwelling units designated for lower income households, as
defined in Section 50079.5 of the California Health and Safety Code shall have
rents not exceeding 30 percent of 60 percent of the area median income as set
forth on a rent schedule prepared by the City's Housing Division or any
successor agency. Dwelling units designated for very low income households, as
defined in Section 50105 of the California Health and Safety Code shall not have
rents exceeding 30 percent of 50 percent of the area median income as set forth
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on a rent schedule prepared by the City's Housing Division or any successor
agency. Dwelling units designated for moderate income households as defined
in Section 50093 of the California Health and Safety Code shall be offered at an
affordable housing cost, as that cost is defined in Section 50052.5 of the Health
and Safety Code and the Affordable Housing Production Program.
(3) Area Median Income. The estimate of median income in the Los
Angeles Long Beach Primary Metropolitan Statistical Area that is determined
periodically by the United States Department of Housing and Urban Development
(HUD) or any successor agency, adjusted for household size, and which is
published periodically.
(4) Child care facility. A child day care facility other than a family day
care home, including, but not limited to, infant centers, preschools, extended day
care facilities, and school age child care centers.
(5) Condominium Development. A housing development defined In
subdivision (f) of Section 1351 of the Civil Code, not including the conversion of
existing rental apartments to condominiums.
(6) Density Bonus. A density increase over the otherwise maximum
allowable residential density granted pursuant to Government Code Section
65915 and this Ordinance.
(7) Density Bonus Housing Development. A housing development
that obtains a density bonus pursuant to Government Code Section 65915 and
this Ordinance.
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(8) Housing Development. A construction development consisting of
five or more residential units, including single family and multifamily units, for sale
or for rent. For purposes of this Ordinance, "housing development" also includes
a subdivision, planned unit development or condominium development consisting
of five or more residential units or unimproved residential lots, the substantial
remodel and conversion of an existing commercial building to residential use,
and the substantial remodel of an existing multifamily dwelling, where the
remodel would create a net increase of at least five residential units.
(9) Incentive or Concession. A reduction in site development
standards, modification of the Zoning Ordinance or Chapter 9.32 (Architectural
Review), or other regulatory incentives or concessions proposed by the
developer or the City as specified in Government Code Section 65915(1).
(10) Lower, Very Low, or Moderate Income. Annual income of a
household that does not exceed the area median for the income category as
specified in California Health and Safety Code Sections 50079.5, 50105, or
50093, as determined by the City's Housing Division.
(11) Qualifying Mobilehome Park. A mobilehome park that limits
residency based on age requirements for housing for older persons pursuant to
Section 798.76 or 799.5 of the Civil Code.
(12) Restricted Affordable Unit. An affordable housing unit in a
development rented or sold to a household with very low, lower, or moderate
income residents, and/or senior citizens in accordance with Government Code
Section 65915 and this Ordinance. For a rental development containing one or
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more restricted affordable housing units, the owner shall record a document with
the Los Angeles County Recorder guaranteeing that the relevant affordability
criteria will be observed for at least thirty (30) years from the issuance of the
Certificate of Occupancy or a longer period of time as specified in Government
Code Section 65915(c)(1) and this Ordinance. In the case of for-sale units to
Moderate Income households, the owner shall comply with requirements set forth
by the City's Housing Division. Rents for the lower and very low income density
bonus units shall be set at an affordable rent as defined in Sections 50079.5 and
50105 of the Health and Safety Code respectively. Owner-occupied units shall
be available at an affordable housing cost as defined in Section 50052.5 of the
Health and Safety Code for moderate income persons as defined in Section
50093 of the Health and Safety Code.
(13) Senior citizen housing development. A housing development as
defined in California Civil Code Sections 51.3.
(c) Calculation of Minimum Density Bonus in Residential Zones.
As set forth in the Density Bonus Calculation Table and Density Bonus Summary
Table immediately following subsection (d) of this Section, the minimum density
bonuses that shall be awarded to a housing development in a residential zone
are established by this subsection (c).
(1) The City shall grant a density bonus to a developer of a housing
development who seeks a density bonus and agrees to construct at least one of
the following in accordance with the requirements of this Section:
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(i) Ten percent (10%) of the total units of the housing development as
restricted affordable units affordable to lower income households; or
(ii) Five percent (5%) of the total units of the housing development as
restricted affordable units affordable to very low income households; or
(iii) A senior citizen housing development; or
(iv) A qualifying mobilehome park
(v) Ten percent (10%) of the total units of a common interest development
as restricted affordable units affordable to moderate income households,
provided that all units in the development are offered to the public for purchase
subject to the restrictions specified in this Ordinance.
(2) In determining the number of density bonus units to be granted
pursuant to this subsection (c), the maximum residential density for the site shall
be multiplied by 0.20 for subdivision (1 i), (1 ii), 1 (iii), and 1 (iv) and by 0.05 for
subdivision (1 )(v), unless a lesser number is selected by the developer. The
number of density bonus units may also be increased in accordance with
subsection (d) of this Section.
(3) In calculating the minimum density bonus established by this
subsection (c) or the additional density bonus established by subsection (d), the
density bonus units shall not be included when determining the number of
restricted affordable units required to qualify for a density bonus and any
calculations resulting in a fractional number shall be rounded upwards to the next
whole number. Each housing development is entitled to only one density bonus,
which may be selected based on the percentage of either very low restricted
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affordable units, lower income restricted affordable units or moderate income
restricted affordable units, or the development's status as a senior citizen
housing development or qualifying mobilehome park. Density bonuses from
more than one category may not be combined.
(4) A developer may request a lesser density bonus that that which is
available for a housing development under this subsection (c); however, the City
shall not be required to similarly reduce the number of units required to be
dedicated pursuant to this subsection and Government Code Section 65915(b).
(d) Additional Density Bonus Increase in Residential Zones. As
set forth in the Density Bonus Calculation Table and Density Bonus Summary
Table immediately following this subsection (d), a housing development shall wfU
be granted an increase in the density bonus up to a maximum of thirty-five
percent (35%) by increasing the number of restricted affordable units, as follows:
(1) For each one percent (1%) increase in the percentage of restricted
Very Low Income affordable units, a housing development will receive an
additional two and one-half percent (2.5%) density bonus up to a maximum of
thirty-five percent (35%).
(2) For each one percent (1 %) increase in the percentage of restricted
Lower Income affordable units, a housing development will receive an additional
one and one-half percent (1.5%) density bonus up to a maximum of thirty-five
percent (35%).
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(3) For each one percent (1 %) increase in the percentage of Moderate
Income affordable units, a for-sale housing development will receive an
additional one percent (1 %) density bonus up to a maximum of thirty-five percent
(35%).
(4) For each one percent (1 %) increase above the minimum ten
percent (10%) land donation described in Government Code Section
65915(h)(2), the density bonus shall be increased by one percent (1 %) to a
maximum of thirty-five percent (35%). This increase shall be in addition to any
increase in density mandated by subdivision (c) of this Section, up to a maximum
combined by-right density increase of thirty-five percent (35%).
(5) No additional density bonus increases shall be authorized for senior
citizen housing developments or qualifying mobilehome parks beyond the bonus
authorized by subsection (c) of this Section.
Density Bonus Summary Table
Target Group Minimum Bonus I Additional % Restricted
Affordable
% Granted Bonus for Units
Restricted
Affordable
Units Each 1 % Required
Increase in for
Restricted Maximum
Affordable
Units 35% Bonus
Very Low Income 5% 20% 2.5% 11%
Lower Income 10% 20% 1.5% 20%
Moderate Income (Common Interest Dev.) 10% 5% 1% 40%
Senior Citizen Housing 100% 20% -- n
DevelopmenUQualifying Mobilehome Park
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Density Bonus Calculation Table
Percentage of Very-Low Income Density Bonus Percentage
Units
5 20
6 22.5
7 25
8 27,5
9 30
10 32,5
11 35
Percentage of Lower- Income Density Bonus Percentage
Units
10 20
11 21.5
12 23
13 24.5
14 26
15 27.5
16 29.0
17 30.5
18 32
19 33.5
20 35
Percentage of Moderate- Income Density Bonus Percentage
U ni ts
10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
18 13
19 14
20 15
21 16
11
22 17
23 18
24 19
25 20
26 21
27 22
28 23
29 24
30 25
31 26
32 27
33 28
34 29
35 30
36 31
37 32
38 33
39 34
40 35
(e) Calculation of Development CeR-Sity Bonus in Commercial
Zones. The development bonus awarded to a housinq development In a
commercial zone is established by this subsection (e).
(1) Pursuant to Santa Monica Municipal Code Section
9.04.08.15.060(a)(2) [BSC Zoning District], Santa Monica Municipal Code
Section 9.04.08.14.060 (b) [BCD Zoning District], Santa Monica Municipal Code
Section 9.04.08.16.060 (c) [C2 Zoning District], Santa Monica Municipal Code
Section 9.04.08.18.060(b) [C3 Zoning District, Santa Monica Municipal Code
Section 9.04.08.20.060 [C3-C Zoning District], Santa Monica Municipal Code
Section 9.04.08.22.060 [C4 Zoning District], Santa Monica Municipal Code
Section 9.04.08.26.060 [C6 Zoning District], and Santa Monica Municipal Code
Section 9.04.08.28.060 [CM Zoning District], the density development bonuses
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that are ~awarded to a density bonus housing development in a commercial
zone ~are provided in the form of a floor area ratio bonus over the otherwise
allowable maximum floor area ratio. These provisions are not modified by this
Ordinance. In the C5 Zoning District and the CP Zoning District, a residential
floor area ratio bonus of thirty-five percent (35%) over the otherwise allowable
maximum floor area ratio shall be accorded density bonus housing developments
in those districts.
(2) In determininq the base project for purpose of calculatinq the number
of affordable housinq units required in the housing development, the floor area
ratio bonus shall be excluded, so lonq as the percentage of the floor area bonus
that is excluded does not exceed the correspondinq State density bonus
percentaqe.
(f) Calculation of Development Bonus in Industrial Zones.
The development bonus awarded to a housing development In an
industrial zone is established by this subsection (t).
0) Pursuant to Santa Monica Municipal Code Section 9.04.08.34.060(b)
rM1 Zoninq Districtl and Santa Monica Municipal Code Section
9.04.08.35.050(b)(2) rLMSD Zoninq Districtl. the development bonus that is
awarded to artist studios is provided in the form of a floor area ratio bonus over
the otherwise allowable maximum floor area ratio. These provisions are not
modified by this Ordinance. In the M1 Zoninq District. a residential floor area
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ratio bonus of thirty-five (35%) over the otherwise allowable maximum floor area
ratio shall be accorded housinq developments in that district.
(2) In determininq the base proiect for purpose of calculatinq the number
of affordable housinq units required in the housinq development, the floor area
ratio bonus shall be excluded, so lonq as the percentage of the floor area bonus
that is excluded does not exceed the corresponding State density bonus
percentaqe.
(g) By-Right Parking Incentives. Density bonus housing
developments shall be granted the following maximum parking standards,
inclusive of handicapped and guest parking, which shall apply to the entire
development, not just the restricted affordable units, when requested by a
developer:
(1) Zero to one bedroom dwelling unit: one onsite parking space
(2) Two to three bedrooms dwelling unit: two onsite parking spaces
(3) Four or more bedrooms: two and one-half parking spaces
If the total number of spaces required results in a fractional number, it
shall be rounded up to the next whole number. For purposes of this subsection
(g), this parking may be provided through tandem parking or uncovered parking,
but not through on-street parking.
(h) Incentives or Concessions. As set forth in the
incentives/concessions summary table immediately following this subsection (h),
in addition to by-right parking incentives identified in subsection (g) above,
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density bonus housing developments shall be granted one, two or three
incentives or concessions as follows:
(1) For housing developments with Very Low Income restricted units:
(i) One incentive or concession if five percent (5%) of the units (not
including the bonus units) are set aside for very low income households.
(ii) Two incentives or concessions if ten percent (10%) of the units (not
including the bonus units) are set aside for very low income households.
(iii) Three incentives or concessions if fifteen percent (15%) of the units
(not including the bonus units) are set aside for very low income households.
(2) For housing developments with Lower Income or Moderate Income
restricted units:
(i) One incentive or concession if ten percent (10%) of the units are
set aside for lower income households or if ten percent (10%) of the units are set
aside for moderate income households in a common interest development.
(ii) Two incentives or concessions if twenty percent (20%) of the units
are set aside for lower income households or if twenty percent (20%) of the units
are set aside for moderate income households in a common interest
development.
(iii) Three incentives or concessions if thirty percent (30%) of the units
are set aside for lower income households or if thirty percent (30%) of the units
are set aside for moderate income households in a common interest
development.
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(3) Housing developments that meet the requirements of Government
Code Section 65915(b) and include a child care facility that will be located on the
premises of, as part of, or adjacent to, the development, shall be granted an
additional concession or incentive that contributes significantly to the economic
feasibility of the construction of the child care facility.
(4) In submitting a proposal for the number of incentives or concessions
authorized by this subsection (h), a housing developer may request the specific
incentives set forth in the Menu of Incentives/Concessions in subsection (i) or
subsection U) of this Section or may submit a proposal for other incentives or
concessions. The process for reviewing this request is set forth in subsection
(0) of this Section.
Incentives/Concessions Summary Table
Target Group Restricted Affordab/e Units
Very Low Income 5% 10% 15%
Lower Income 10% 20% 30%
Moderate Income (Common 10% 20% 30%
Interest Dev.)
Maximum 1 2 3
I ncentive( s )/Concession( s)
(i) Menu of Incentives/Concessions in Residentially Zoned
Districts. Housing developments in residentially zoned districts that meet the
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requirements of subsection (h) may request one or more of the following
incentives, as applicable:
(1) Up to a fifteen percent (15%) deviation from one side yard setback
requirement.
(2) Up to a ten percent (10%) deviation from the parcel coverage
requirement.
(3) Up to fifteen percent (15%) deviation from front or rear yard setback
requirements so long as rear yard setback is at least five feet.
U) Menu of Incentives/Concessions in Commercially or Industrially
Zoned Districts. Housing developments in commercially or industrially zoned
districts that meet the requirements of subsection (g) may request one or more of
the following incentives, as applicable:
(1) Elimination of any restriction on the number of stories that can be
constructed within the allowable height limit of the commercial or industrial
zoning district in which the development is constructed.
(2) The floor area devoted to residential use shall be discounted by fifty
percent (50%) when determining the threshold for a Development Review permit.
(3) Elimination of the private open space requirement.
(k) Land Donation. When a developer of a housing development
donates land to the City as provided for in this section, the developer shall be
entitled to a fifteen percent (15%) increase above the otherwise maximum
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allowable residential density under the applicable zoning ordinance and land use
element of the general plan for the entire development. For each one percent
(1 %) increase above the minimum ten percent (10%) land donation described in
paragraph (2) of this section; the density bonus shall be increased by one
percent (1 %), up to a maximum of thirty-five percent (35%). This increase shall
be in addition to any increase in density allowed by subsection (c), up to a
maximum combined density bonus of thirty-five percent (35%) if a developer
seeks both the increase required pursuant to this subsection (k) and subsection
(c). When calculating the number of permitted density bonus units, any
calculations resulting in fractional units shall be rounded to the next larger
integer.
(1) A housing development shall be eligible for the density bonus
described in this section if the City makes all of the following findings:
(i) The developer will donate and transfer the land no later than the
date of approval of the final subdivision map, parcel map, or development
application for the housing development.
(ii) The developable acreage and zonmg classification of the land
being transferred are sufficient to permit construction of units affordable to very
low income households in an amount not less than ten percent (10%) of the
number of residential units of the proposed development, or will permit
construction of a greater percentage of units if proposed by the developer.
(iii) The transferred land is at least one acre in size or of sufficient size
to permit development of at least forty (40) units, has the appropriate general
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plan designation, is appropriately zoned for development as very low income
housing, and is now or at the time of construction will be served by adequate
public facilities and infrastructure. The land shall also have the appropriate
zoning and development standards to make the development of the very low
income units feasible. No later than the date of approval of the final subdivision
map, parcel map, or development application for the housing development, the
transferred land will have all of the permits and approvals, other than building
permits, necessary for the development of the very low income housing units on
the transferred land.
(iv) The transferred land and the very low income units constructed on
the land will be subject to a deed restriction ensuring continued affordability of
the units consistent with this Ordinance, which restriction will be recorded on the
property at the time of dedication.
(v) The land will be transferred to the City, Redevelopment Agency, or
to a housing developer approved by the City. The City reserves the right to
require the developer to identify a developer of the very low income units and to
require that the land be transferred to that developer.
(vi) The transferred land is within the boundary of the proposed housing
development or is located within one quarter mile of the boundary of the
proposed housing development provided that the City makes all of the findings
required by this Section.
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(I) Child Care Facilities. When a 'developer proposes to construct a
housing development that includes restricted affordable units as specified in
subsection (c) and includes a child care facility that will be located on the
premises of, as part of, or adjacent to the housing development, the City shall
grant either of the following if requested by the developer.
(1) An additional density bonus that is an amount of square feet of
residential space that is equal to or greater than the amount of square feet in the
child care facility.
(2) An additional concession or incentive that contributes significantly
to the economic feasibility of the construction of the child care facility.
(3) A housing development shall be eligible for the density bonus or
concession described in this section if the City makes all of the following findings:
(i) The child care facility will remain in operation for a period of time
that is as long as or longer than the period of time during which the restricted
affordable units are required to remain affordable pursuant to subsection (c) of
this Section.
(ii) Of the children who attend the child care facility, the percentage of
.
children of very low income households, lower income households; or moderate
income households shall be equal to or greater than the percentage of dwelling
units that are proposed to be affordable to very low income households, lower
income households, or moderate income households.
(iii) Notwithstanding any requirement of this section, the City shall not
be required to provide a density bonus or concession for a child care facility if it
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finds, based upon substantial evidence, that the community already has
adequate child care facilities.
(m) Equity-Sharing Agreement. Unless it is in conflict with the
requirements of another public funding source or law, the following equity-sharing
agreement shall apply to the restricted affordable units in a common interest
development:
(1) Upon resale, the seller of the unit shall retain the value of any
improvements, the downpayment, and the seller's proportionate share of
appreciation. The City shall recapture any initial subsidy and its proportionate
share of appreciation, which shall then be used within three years for any of the
purposes prescribed in subdivision (e) of Section 33334.2 of the Health and
Safety Code that promote homeownership.
(2) The City's initial subsidy shall be equal to the fair market value of the
home at the time of initial sale minus the initial sale price to the moderate-income
household, plus the amount of any publicly-assisted downpayment assistance or
mortgage assistance. If upon resale, the market value is lower than the initial
market value, then the value at the time of resale shall be used as the initial
market value.
(3) The City's proportionate share of appreciation shall be equal to the
ratio of the initial subsidy to the fair market value of the home at the time of the
initial sale.
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(n) Waiver/Modification of Development Standards. Developers may
seek a waiver or modification of development standards that will have the effect
of precluding the construction of a density bonus housing development at the
densities or with the concessions or incentives permitted by this Section. The
developer shall show that the waiver or modification is necessary to make the
housing units economically feasible and that the development standards will
have the effect of precluding the construction of a housing development meeting
the criteria of subsection (c) of this Section at the densities or with the
concessions or incentives permitted by this Ordinance.
(0) Procedures
(1) An application for a density bonus, incentive, concession, waiver,
modification, or revised parking standard pursuant to this Ordinance shall be
submitted with the first application for approval of a housing development and
processed concurrently with all other applications required for the housing
development. The application shall be submitted on a form prescribed by the City
and shall include at least the following information:
(i) Site plan showing total number of units, number and location of
affordable housing units, and number and location of proposed density bonus
units.
(ii) Level of affordability of affordable housing units and proposals for
ensuring affordability.
22
(iii) Description of any requested incentives, concessions, waivers or
modifications of development standards, or modified parking standards. For all
incentives and concessions that are not included within the menu of
incentives/concessions set forth in subsections (i) and U) of this Section, the
application shall include evidence that the requested incentives and concessions
result in identifiable, financially sufficient, and actual cost reductions. The cost of
reviewinq any required pro forma or other financial data submitted as part of the
application In support of a request for a incentive/concession or
waiver/modification of developments standard, includinq, but not limited to the
cost to the City of hiring a consultant to review said financial data shall be borne
by the developer.
(iv) If a density bonus or concession is requested for a land donation,
the application shall show the location of the land to be dedicated and provide
evidence that each of the findings included in subsection (k) of this Section can
be made.
(v) If a density bonus or concession is requested for a childcare facility,
the application shall show the location and square footage of the child care
facilities and provide evidence that each of the findings included in subsection (I)
of this Section can be made.
(2) Except as provided in subdivision (4) of this subsection (0), an
application for a density bonus, incentive, concession, waiver, modification, or
revised parking standard pursuant to this Ordinance shall be considered by and
acted upon by the approval body with authority to approve the housing
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development and subject to the same administrative appeal procedure, if any. In
accordance with state law, neither the granting of a concession, incentive,
waiver, or modification nor the granting of a density bonus shall be interpreted, in
and of itself, to require a general plan amendment, zoning change, variance, or
other discretionary approval.
(3) For housing developments requesting a density bonus without any
incentives, or a density bonus with by-right incentives and/or one or more
incentives included in the Menu of Incentives/Concessions in subsection (i) or
subsection U) above, the following shall apply if the housing developments are
not otherwise subject to discretionary review:
(i) The Director of Planning or his/her designee shall issue a
determination pursuant to Government Code Section 65915 and this Ordinance.
(ii) Pursuant to Government Code Section 65915, the Director or
his/her designee shall approve a density bonus and requested
incentives/concessions unless he/she finds that:
(A) The incentive or concession is not required to provide for
affordable housing costs as defined in Section 50052.5 of the Health and Safety
Code, or for rents for the affordable units, or
(B) The concession or incentive will have a specific adverse impact
upon public health and safety, on the physical environment, or on any real
property that includes an Historic Cultural Monument, as declared by the City,
State or Federal government, and for which there is no feasible method to
24
satisfactory mitigate or avoid the specific adverse impact without rendering the
development unaffordable to Moderate, Lower or Very Low Income households.
(iii) Notice. Notice of the determination shall be provided to same
extent as required for the underlying development approval.
(4) For housing developments requesting a waiver of a development
standard or an incentive/concession not included in the Menu of
Incentives/Concessions in subsection (i) and subsection 0), the following shall
apply:
(i) Hearing and Notice. An application pursuant to this subdivision
shall follow the procedures for Design Compatibility Permits forth in Section
9.04.20.15.030. A public hearing shall be held by the City Planning Commission
and the Commission shall issue a determination.
(ii) Pursuant to Government Code Section 65915, the City Planning
Commission shall approve a density bonus and requested
incentives/concessions unless a finding is made that:
(A) The incentive or concession is not required to provide for affordable
housing costs as defined in Section 50052.5 of the Health and Safety Code, or
for rents for the affordable units, or
(8) The concession or incentive will have a specific adverse impact
upon public health and safety, on the physical environment or on any real
property that includes an Historic-Cultural Monument, as declared by the City,
State or Federal government, and for which there is no feasible method to.
25
satisfactory mitigate or avoid the specific adverse impact without rendering the
development unaffordable to Moderate, Lower or Very Low Income households.
(iii) Appeal. The decision of the City Planning Commission may be
appealed to the City Council within fourteen consecutive calendar days of the
date the decision is made in the manner provided in Santa Monica Municipal
Code, Part 9.04.20.24.
(p) Chapter 9.56. Notwithstanding any provision of this Section to the
contrary, development projects remain subject to all applicable requirements of
Chapter 9.56, the City's Affordable Housing Production Program, including but
not limited to Sections 9.56.050, 9.56.100, 9.56.110, and 9.56.130.
SECTION 3. This ordinance shall be of no further force or effect after May 11,
2008, unless prior to that date, after a public hearing, noticed pursuant to Santa Monica
Municipal Code Section 9.04.20.22.050, the City Council, by majority vote, extends this
interim ordinance.
SECTION 4. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
26
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have passed this Ordinance and each and every section, subsection, sentence, clause,
or phrase not declared invalid or unconstitutional without regard to whether any portion
of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage
of this Ordinance. The City Clerk shall cause the same to be published once in the
official newspaper within 15 days after its adoption. This Ordinance shall become
effective 30 days from its adoption.
27
ATTACHMENT B
PUBLIC NOTICE
7
NOTICE OF A PUBLIC HEARING
BEFORE THE SANTA MONICA CITY COUNCIL
SUBJECT:
Introduction and First Reading of a Proposed Interim Ordinance Extending and Modifying
the Provisions of Ordinance 2176 (CCS) Which Modified the Density Bonus Provision of
the Zoning Ordinance In Accordance with State Density Bonus Law.
DATE/TIME: TUESDAY, MARCH 28, 2006, AT 6:45 p,m.
LOCATION: City Council Chambers, Second Floor, Santa Monica City Hall
1685 Main Street, Santa Monica, California
HOW TO COMMENT
The City of Santa Monica encourages public comment. You may comment at the City Council public
hearing, or by writing a letter. Written information will be given to the City Council at the meeting.
Address your letters to:
City Clerk
Re: Density Bonus
1685 Main Street, Room 102
Santa Monica, CA 90401
MORE INFORMATION
If you want more information about this project or wish to review the project file, please contact Tony Kim
at (310) 458-8341, or bye-mail attony.kim@smqov.net. The Zoning Ordinance is available at the
Planning Counter during business hours and on the City's web site at www.santa-monica.orq.
The meeting facility is wheelchair accessible. For disability-related accommodations, please contact (310)
458-8341 or (310) 458-8696 TTY at least 72 hours in advance. All written materials are available in
alternate format upon request. Santa Monica Big Blue Bus Lines numbered 1, 2, 3, 5, 7, 8, 9, and 10
serve City Hall.
Pursuant to California Government Code Section 65009(b), if this matter is subsequently challenged in
Court, the challenge may be limited to only those issues raised at the public hearing described in this
notice, or in written correspondence delivered to the City of Santa Monica at, or prior to, the public
hearing.
ESPANOL
Esto es una noticia de una audiencia publica para revisar applicaci6nes proponiendo desarrollo en Santa
Monica. Si deseas mas informaci6n, favor de lIamar a Carmen Gutierrez en la Divisi6n de Planificaci6n
al numero (310) 458-8341.
APPROVED AS TO FORM:
~11(J~lL~
AMANDA SCHACHTER
Planning Manager
F:\CityPlanning\Share\COUNCIL\NOTICES\2006\Density Bonus Ext 032806.doc
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