sr-020811-7f~ t of City Council Report
Y
Santa rlonica°
City Council Meeting: February 8, 2011
Agenda Item: ~' ~
To: Mayor and City Council
From: Eileen Fogarty, Planning and Community Development Director
Subject: Introduction and first reading of an ordinance adopting a Text Amendment
amending various sections of Chapter 9 of the Santa Monica Municipal
Code to modify the City's density bonus and affordable housing incentives
in accordance with State density bonus law.
Recommended Action
Staff recommends that the City Council introduce for first reading the ordinance
included in Attachment A to adopt Text Amendment 10TA-002 implementing State
density bonus provisions which will provide affordable housing incentives in the City's
residential zones.
Executive Summary
The proposed text amendment will codify, in part; the provisions of Interim Ordinance
No. 2176 (CCS) and subsequent extending ordinances and ensure compliance with
Government Code Section 65915, which requires cities. to adopt implementing
ordinances that provide affordable housing density bonuses and offer concessions and
incentives for housing developments that contain affordable housing on-site. The
proposed ordinance establishes a menu of concessions/incentives that an applicant can
receive by right. 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. The Interim Ordinance was adopted on February 14, 2006 and expired
on July 26, 2010 after being extended the .maximum time allowed by Section
9.04.20.16.060.
There are two substantive recommended modifications to the City's interim ordinance
that are proposed to clarify certain provisions. The ordinance has been modified in the
following way:
• Ordinance applies to residential zones. Policies and standards .pertaining to
commercial zones will be governed by the recently adopted Land Use and
Circulation Element (LUCE) and implementing ordinances.
• Ordinance removes the by-right incentive that allows fora 15% deviation from
the front yard setback requirements from the menu of potential concessions.
Background
The City has along-standing commitment to affordable housing, and has for a number
of years provided incentives for the creation of this desirable housing type. In general,
these incentives have gone beyond the maximum State mandates fqr
bonuses/incentives to be given to projects including affordable housing. Developments
in commercial zones, where housing is permitted; were given increased floor area for
providing affordable housing since there already was ho density limitation. In residential
zones, projects including affordable housing which met the requirements for a density
bonus under State law were also entitled to a separate local density bonus of up to
25%.
The City Council adopted Interim Ordinance No. 2176 (CCS) on February 14, 2006,
modifying the density bonus provisions of the Zoning Ordinance in order to be
consistent with Senate Bill 1818 and Senate Bill 435. These state statutory provisions,
among other requirements, set new standards for local jurisdictions that altered the
number of units a developer had to provide in order to receive a density bonus and
required local jurisdictions to provide up to three development incentives/concessions to
development standards to facilitate the production of housing: These can include
reductions in zoning standards, such as parking, setbacks and lot coverage, substitute
development standards, design requirements, .and any other incentive that would
reduce the cost barriers to the production of affordable housing. A sliding scale is used
in the density bonus law to adjust the density bonus, based on the percentage
increases in the number of on-site affordable units proposed as part of the
development, up to a maximum of 35%. This legislation also expanded the scope of
projects entitled to obtain density bonuses to include land donations, senior housing,
mobile homes and projects including childcare facilities, and provided tables for
calculating density bonuses to replace the more complicated language regarding how
density bonuses change on a sliding. scale. New parking standards modify local
requirements to remove guest parking requirements and, in some cases, reduce the
number of spaces that would be required, and also allow tandem configurations which
previously were available only for parcels with narrow widths or with approval of a
2
variance. The number of incentives required to be provided by the City to developers to
facilitate the development of housing is based on the percentage of affordable housing
units in the project.
The State law requires cities to adopt implementing ordinances to provide affordable
housing density bonuses. Ordinance No. 2176 (CCS) was extended through the
adoption of Interim Ordinance No. 2180 (CCS) on April 11, 2006. The City Council
further extended the ordinance through the adoption of Ordinance No. 2252 (CCS) on
March 25, 2008. This interim ordinance expired on July 26, 2010 and is not eligible for
further extension past this date. Although staff will be coming back to the Planning
Commission and City Council in the future with a comprehensive Zoning Ordinance
update that will include the neighborhood conservation requirements of the LUCE, the
provisions of this ordinance are still necessary to ensure compliance with. State density
bonus law. The policies contained in this text amendment work in coordination with
strategic zoning and other policies to ensure responsible development in residential
areas. The implementing ordinance encourages an applicant to select particular
incentives/concessions when providing on-site affordable housing by establishing a
menu of by-right incentives/concessions. The ordinance reduces confusion and adds
clarity to the process of receiving incentives/concessions and obtaining density bonuses
for providing affordable housing. The absence of an implementing ordinance increases
the likelihood that the City would be subject to myriad relief requests that may not
comply with the character of the existing neighborhood and would increase the amount
of time needed to process applications. The proposed provisions are consistent with the
goals and policies of the LUCE and staff recommends the Planning Commission
recommend City Council adopts the proposed text amendment.
The proposed ordinance would modify the City's Zoning Ordinance density bonus
regulations for residential zones as follows:
Describes the minimum number of affordable units to be set aside to qualify for a
density bonus, and the corresponding density bonus percentages, while clarifying
3
that developers must first meet the requirements of the City's Affordable Housing
Production Program (AHPP)
Authorizes density bonuses for affordable housing developments that include a
child care facility on site
Defines the bonus calculation
Provides incentives and concessions as outlined in State law, and establishes
procedures for seeking these incentives and concessions as well as seeking
development standard waivers.
Discussion
Since adopting Interim Ordinance No. 2176 (CCS) in 2006, there have been a total of
46 units built in three separate projects in residential zones under the provisions, with
41 being deed restricted affordable housing (see Table A). Additionally, there are 30
projects that have either been approved or are pending tract maps, consisting of 265
units -approximately 30% of which are deed restricted affordable units -that have yet
to be built. There are also four 100% affordable apartment projects approved
comprising 78 deed restricted units, which have been approved under the provisions of
the interim ordinance. The recent downturn in the global and national economies has
significantly curbed the housing stock growth in all communities including Santa Monica.
There are a number of negative economic trends in Southern California and other parts
of the country that are expected to affect funding for housing development for several
years or longer. The consequence of these economic trends is a considerable drop off
in housing expansion which translates into a decrease in affordable housing production.
Table A Units Rermitted'and BuiltSince Ordinance
Number of Units Market Rate Affordable Affordable Housing Fee
46 5 41 $83,126
In June 2006, further Council action altered the Affordable Housing Production Program
(AHPP) to require construction of affordable units on-site for residential ownership
projects that exceed three units in multifamily residential districts. The number of
4
projects constructed, approved, and pending construction exemplifies how the AHPP
and State density bonus provisions combine to facilitate the on-site production of
affordable housing within market. rate residential projects, advancing a key City goal to
increase the supply of affordable housing citywide.
EXAMPLE PROJECT
A typical proposal in the Low Density Multi-Family Residential District (R2) for a four unit
condominium project would calculate in the following way:
• Applicant chooses to provide low income units
• AHPP requires 20% to be deed restricted affordable (low income)
• Results in 35% density bonus in accordance with State's calculation table (refer to
Ordinance p. 11)
• 4 X 0.35 = 1.4 bonus units ~ 2 bonus units (rounded up)
• Project becomes 6 total units= 1 affordable unit + 5 market rate units
The 35% is multiplied times the four units to give the applicant a 1.4 unit bonus. The
Ordinance requires all fractions be rounded up to the nearest whole number so in this
scenario the applicant will be granted two bonus units for a total of six units, resulting in
a project that has one affordable unit and five market rate units. The City has a
worksheet to help applicahts calculate their density bonuses located on the City
Planning Division website located at:
http://www01.smgov.net/planning/planningcomm/cityplanning.html
After reviewing the administration of this ordinance over the last four years, staff
proposes a few modifications to the existing Interim Ordinance. The following
modifications are proposed [page numbers refer to Attachment A]:
1. Section 1 [page 6] clarifies existing policy by adding language that a project in a
residential zone must also comply with the City's Affordable Housing
Production Program (AHPP). More specifically, a project that builds the
AHPP's required on-site affordable housing requirements is entitled to the
density bonuses/incentives and the waiver/modification of development
5
standards authorized by State law, as described in the example. Additionally,
a project that meets the AHPP through the payment of an affordable housing
fee could still qualify for a state density bonus by constructing on-site
affordable units as allowed under State law. The section also clarifies that in
no case shall a density bonus exceed 35% except for 100% affordable
housing projects which are governed by SMMC 9.04.10.14.030
2. Section 3(f)(3) [page 18] would be modified to remove the by right option for up
to 15% deviation from front yard setback requirements. Through the LUCE,
the City seeks to encourage pedestrian orientation and preserve ground level
open space in the neighborhoods. A deviation from the front yard setback
requirements can still be requested if the applicant's request results in
identifiable, financially sufficient and actual cost reductions.
3. Section 7(i) [page 33] Modified to cross-reference the Affordable Housing
Production Program Chapter 9.56 with the Zoning Code.
4. Removed references to development bonuses and incentives/concessions in
commercial and industrial zones. This ordinance applies only to residential
zones where density is restricted; commercial zones will be governed by the
recently adopted Land Use and Circulation Element (LUCE) policies and
subsequent implementing ordinances.
State law requires that the City adopt an ordinance implementing the State density
bonus provisions of Government code Section 65915. The proposed ordinance meets
this requirement.
CEQA Compliance
The proposed Ordinance codifies 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 and brings the City into compliance with Government Code Section
65915. 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 and concessions the City has
designated as a matter of right are already authorized by the Zoning Ordinance,
6
although certain of these incentives currently require discretionary approval. 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
possibility the adoption and implementation of this Ordinance may have a significant
effect on the environment.
In addition, the Land Use and Circulation Element EIR certified by the City Council on
July 6, 2010, studied the potential development in residential zones through the horizon
year of the plan which accounted for density bonus units. Consequently, no further
environmental review is required pursuant to CEQA Guidelines Section 15183.
Public Notice
Pursuant to Municipal Code Section 9.04.20.22.050, notice of the public hearing was
published in the Santa Monica Daily Press at least ten consecutive calendar days prior
to the public hearing
General Plan Consistency
The 2010 General Plan Land Use and Circulation Element (LUCE) states clearly that
the development of affordable housing is necessary to ensure availability of a wide
range of housing opportunities necessary to sustain a diverse labor force and to meet
the needs of all segments of the community. The LUCE emphasizes the importance of
allowing for a range of housing options that suit the spectrum of individual lifestyles and
needs. The Housing section (p. 3.3-8) reads:
"There is a strong City commitment to address this growing housing affordability gap
through affordable housing programs. Affordable housing production will continue to be
the City's highest housing priority, both to create new housing and retain existing
affordable units, including housing for special needs populations such as seniors and
homeless people."
7
The following goals and policies regarding housing are contained in the LUCE:
• GOAL LU11: Create Additional Housing Opportunities -Provide additional
opportunities for a diversity of housing options for all income groups and advance
the City's sustainability goals through housing production.
• LU11.1 Neighborhood Housing. Continue to support the healthy, diverse
neighborhoods that provide a range of housing choices to meet the needs of its
residents.
• LU11.3 Housing Incentives. Provide incentives to build and increase the ratio of
affordable and workforce housing and to conserve character defining multi-family
housing.
• LU11.5 Senior and Lifecycle Housing. Provide opportunities for housing and
care facilities that meet the needs of diverse age groups and abilities including
singles, families, seniors, disabled persons and homeless individuals.
• LU11.6 Affordable Housing Incentives. Encourage projects providing
exclusively very low-, low-, and moderate-income housing through incentives
such as a streamlined permit .process, flexible development and parking
standards, density bonuses, and financial assistance.
• H1.1 Maintain programs to require and encourage the production of affordable
housing for very low, low and moderate-income households.
• N11.4 Documentation of housing opportunities for low-and moderate-income
households including seniors and the disabled.
• Neighborhood Conservation -Development standards [p. 2.2-13] Require ah
amount or percentage of ground level open space for new multi-family buildings.
Thus, the proposed zoning text amendment is consistent in principle with the goals,
objectives, policies, land uses and programs specified in the adopted General Plan.
Alternative Actions:
In addition to the recommended action, the City Council could consider the following
with respect to the project:
• Recommend the Text Amendment with revised language
8
Financial Impacts and Budget Actions
There are no direct budgetary impacts associated with the recommendations within this
report
Prepared by: Travis Page, Associate Planner, Community and Strategic Planning
Approved:
Forwarded to Council:
i
` ~ Q/
Eileen Fog rty irect Rod Gould
Planning nd omm~ity Development City Manager
Attachments
A. Proposed Ordinance
B. Notice of Public Hearing
f:\atty\muni\laws\barry\Density Bonus Ordinance 2-8-11
City Council Meeting 2-8-11 Santa Monica, California
ORDINANCE NUMBER (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTIONS
9.04.10.14.040, 9.04.10.14.050, AND 9.56.050 AND ADDING SANTA MONICA
MUNICIPAL CODE SECTIONS 9.04.10.14.060,. 9.04.10.14.070, 9.04.10.14.080 AND
9.04.10.14.090 TO MODIFY THE CITY'S DENSITY BONUS AND AFFORDABLE
HOUSING INCENTIVES IN ACCORDANCE WITH STATE DENSITY BONUS LAW
WHEREAS, in September 2004, the State adopted SB 1818 which changed the
State's density bonus law; and
WHEREAS, this law imposes new state housing mandates on California cities
regarding required density bonuses and incentives for housing developers; and
WHEREAS, the law lowers both the set-aside requirements for affordable units
and the density bonus; and
WHEREAS, as additional affordable units are set aside, the State law gradually
increases the density bonus to a maximum of 35 percent; and
WHEREAS, this law also provides housing developers with additional incentives
or concessions as the percentage of affordable units is increased and also authorized
housing developers to request a waiver of development standards if necessary to make
a development feasible and cities must grant concessions unless certain findings are
made; and
1
WHEREAS, SB 1818 also includes density bonus provisions for senior housing
development and for housing developers that donate land to the City for affordable
housing and this legislation also continues previous density bonus provisions to
encourage the inclusion of child care facilities in affordable housing developments; and
WHEREAS, in September 2005, the State adopted SB 435 which 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, and
WHEREAS, the State Density Bonus Law was further modified in 2008 through
the adoption of AB 2280; and
WHEREAS, the State .Density Bonus Law ,requires cities to adopt an
implementing ordinance; and
WHEREAS, in accordance with State law, the City adopted interim ordinances
which modified 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, 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; and
WHEREAS, more specifically, 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 and extended and
2
modified this ordinance by adopting Ordinance Number 2180 (CCS) on April 11, 2006
and Ordinance Number 2252 (CCS) on March 25, 2008; and
WHEREAS, Ordinance Number 2252 (CCS) expired on July 26, 2010 and could
not be extended; and
WHEREAS, on February 2, 2011, the Planning Commission reviewed the
proposed text amendment and recommended to the City Council that the Council adopt
the amendment; and
WHEREAS, the proposed text amendment is consistent in principle with the
goals, objectives, policies, land uses, and programs specified in the adopted General
Plan, including Goal LU 11 (provide additional opportunities for a diversity of housing
options for all income groups and advance the City's sustainability goals through
housing production), LU 11.1 (continue to support the healthy, diverse neighborhoods
that provide a range of housing choices to meet the needs of its residents), LU 11.3
(provide incentives to build and increase the ratio of affordable and workforce housing
and to conserve character defining multi-family housing), LU 11.5 (provide opportunities
for housing and care facilities that meet the needs of diverse age groups and abilities
including singles, families, seniors, disable persons and homeless individuals), LU 11.6
(encourage projects providing exclusively very low-; low-, and moderate-income
housing through incentives such as a streamlined permit process, flexible development
and parking standards, density bonuses, and financial assistance, and H1.1 (maintain
programs to require and encourage the production of affordable housing for very low,
low and moderate-income households); and
3
WHEREAS, the public health, safety, and general welfare require the adoption of
the proposed amendment, in that this ordinance will ensure compliance with
Government Code Section 65915 which requires cities to adopt an implementing
ordinance that provides affordable housing density bonuses and offers concessions and
incentives for specified housing developments and in that this ordinance continues the
City's long-standing commitment to affordable housing and the provision of incentives
for the creation of this desired housing type and is integrated with the City's other
existing regulations promoting affordable housing production,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 9.04.10.14.040 is hereby
amended to read as follows:
Section 9.04.10.14.040. State incentives for
affordable housing in residential zones -density
bonuses.
This Section describes the minimum density bonuses
which shall be provided at the request of an applicant when
that applicant provides affordable units, pursuant to Chapter
4.3 (commencing with Section 65915) of Division 1 of Title 7
of the Government Code in addition to the affordable units,
if any, required by Santa Monica Municipal Code Chapter
9.56 the City's Affordable Housing Production Program.
4
Notwithstanding any provision of this Section to the contrary,
development projects must satisfy 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. However,
development proiects of four or more residential units that
provide on-site affordable units pursuant to Section 9.56.050
shall be entitled to the additional density bonuses and the
incentives provided by Sections 9.04.10.14.050 and
9.04.10.14.060 and to the waiver/modification of
development standards provided by Section 9.04.10.14.070.
(a) The Citv shall grant a density bonus to a
developer of a housing development who seeks a density
bonus under the State Density Bonus law and agrees to
construct at least one of the following in accordance with the
requirements of this Section and Government Code Section
65915:
(1) Ten percent (10%) of the total units of the housing
development as restricted affordable units affordable to
lower income households; or
5
(2) Five percent (5%) of the total units of the housing
development as restricted affordable units affordable to very
low income households; or
(3) A senior citizen housing development; or
(4) A qualifying mobilehome park; or
(5) 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 equity sharing and restrictions specified in Government
Code Section 65915(c)(2).
(b) This Section establishes the minimum density
bonuses that shall be awarded to a housing development in
a residential zone under the State Density Bonus Law. In
determining the number of density bonus units to be granted
pursuant to this Section the maximum residential density for
the site shall be multiplied by 0.20 for subdivision (a)(1),
(a)(2), (a)(3), and (a)(4) and by 0.05 for subdivision (a)(5),
unless a lesser number is selected by the developer. The
number of density bonus units may also be increased in
accordance with the Density Bonus Calculation Table and
Density Bonus Summary Table located in Section
6
9.04.10.14.050. However, except as provided in Section
9.04.10.14.030(b)(2), in no event shall the total density
bonus for affordable housing under local provisions and
under state density bonus provisions exceed thirty-five
percent.
(1) In calculating the minimum density bonus
established by this Section or the additional density bonus
established by Section 9.04.10.14.050, 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 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.
(2) A developer may request a lesser density bonus
than that which is available for a housing development under
this Section and Section 9.04.10.14.050; however, the City
7
shall not be required to similarly reduce the number of units
required to be dedicated pursuant to this Section and
Government Code Section 65915(b).
(c) Certain other types of development activities are
specifically eligible for a density bonus:
(1) A residential proiect may be eligible for a density
bonus in return for land donation pursuant to the
requirements set forth in Government Code Section
65915
(2) A residential proiect that contains a child care
facility as defined by Government Code Section 65915(h)
may be eligible for an additional density bonus or incentive
pursuant to the requirements set forth in that section.
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SECTION 2. Santa Monica Municipal Code Section 9.04.10.14.050 is hereby
amended to read as follows:
Section 9.04.10.14.050 Additional Density Bonus
Increase in Residential Zones. [Exemption Provisions
moved to new Section 9.04.10.14.090]
As set forth in the Densitv Bonus Calculation Table
and Density Bonus Summary Table at the end of this
Section, a housing development shall be granted an
10
increase in the density bonus up to a maximum of thirty-five
percent (35%) by increasing the number of restricted
affordable units, as follows:
(a) For each one percent (1 %) increase in the
percentage of restricted Vern 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%).
(b) 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 thirtv-
five percent (35%
(c) 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%
(d) 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
11
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%).
(e) No additional density bonus increases shall be
authorized for senior citizen housing developments or
qualifying mobilehome parks beyond the bonus authorized
by Section 9.04.10.14.040(b).
~fl Affordable housing units provided pursuant to this
Section and Section 9.04.10.14.050 shall conform to the
affordability requirements set forth in subsections (b) and (c)
of Government Code Section 65915 as applicable.
Density Bonus Summary Table
Taroet Group Minimum Bonus Additional
Restricted
Affordable
Granted Bonus for Units
Restricted
Affordable
Units Each 1% Reouired
Increase in for
Restricted Maximum
Affordable
_ Units 35%
Bonus
Ve Low Income 5% 20% 2.5% 11%
Lower Income 10% 20% 1.5% 20%
Moderate Income (Common 10% - 5% 1% 40%
Interest Dev.
Senior Citizen Housing
Develoome nt/Q ua I ifvi n°
Mobilehome Park 100% 20%
12
Density Bonus Calculation Table
Percentage of Very-Low Income Densit~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
Units
10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
18 13
19 14
20 15
21 16
22 17
23 18
13
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
14
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SECTION 3. Section 9.04.10.14.060 is hereby added to the Santa Monica
Municipal Code to read as follows:
Section 9.04.10.14.060 State incentives for
affordable housing in residential zones.
This section includes provisions for providing
incentives pursuant to Chapter 4.3 (commencing with
Section 65915) of Division 1 of Title 7 of the Government
Code. An applicant may request incentives pursuant to this
Section only when the residential project is eligible for, and
15
the applicant requests, a density bonus pursuant to Section
9.56.050(1) or pursuant to Section 9.04.10.14.040.
(a) By Right Parking Incentives. Density bonus
housing developments shall be granted the following
maximum parking standards, inclusive of handicapped and
quest parking, which shall apply to the entire development,
not iust 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 (a), this parking
may be provided through tandem parkins or uncovered
parking, but not through on-street parking.
(b) Additional Incentives or Concessions. As set
forth in the incentives/concessions summary table at the end
16
of this subsection (b), in addition to by right parking
incentives identified in subsection (a) above, densitybonus
housing developments shall be granted one two or three
incentives or concessions as follows:
(1) For housing developments with Very Low
Income restricted units:
(A) One incentive or concession if five percent
(5%) of the units (not ihcluding the bonus units) are set aside
for very low income households.
(B) Two incentives or concessions if ten percent
(10%) of the units (not including the bonus units) are set
aside for very low income households.
(C) 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:
(A) 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
17
moderate income households in a common interest
development.
(B) Two incentives or concessions if twehty
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.
(C) 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.
Incentives/Concessions Summary Table
Tar et Grou Restricted Affordable Units
Ve Low Income 5% 10% 15%
Lower Income 10% 20% 30%
Moderate Income (Common 10% 20% 30%
Interest Dev.)
Maximum
Incentive(s)/Concession(s) 1 2 3
(c) For purposes of subsection (b) of this Section
9.04.10.14.060, an incentive means the following:
18
(1) A reduction of development standards or
architectural design requirements which exceed the
minimum applicable building standards approved by the
State Building Standards Commission pursuant to Part 2.5
(commencing with Section 18901) of Division 13 of the
Health and Safety Code, including but not limited to,
setback coverage and/or parking requirements which result
in identifiable, financially sufficient and actual costs
reductions, based upon appropriate financial analysis and
documentation to the extent required by the City pursuant to
Section 9.04.10.14.080.
(2) Allowing mixed use development in conjunction
with the proposed residential development, if nonresidential
land uses will reduce the cost of the residential project and
the nonresidential land uses are compatible with the
residential project and existing or planned surrounding
development consistent with the City's General Plan and
Zoning Ordinance.
j3) Other regulatory incentives proposed by the
applicant or the City which result in identifiable financially
sufficient and actual cost reductions, based upon
appropriate financial analysis and documentation to the
19
extent r_e_quired by the City pursuant to Section
9.04.10.14.080.
(d) 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.
(e) In submitting a proposal for the number of
incentives or concessions authorized by this Section, a
housing developer may request the specific incentives set
forth in subsection (fl of this Section or may submit a
proposal for other incentives or concessions. The process
for reviewing this request is set forth in Section
9.04.10.14.080.
~fl Housing developments in residentially zoned
districts that meet the requirements of subsection (b) of this
Section 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.
20
(2) Up to a ten percent (10%) increase in first floor
parcel coverage.
(3) Up to fifteen percent (15%) deviation from rear
yard setback requirements so long as rear yard setback is at
least five feet.
SECTION 4. Section 9.04.10.14.070 is hereby added to the Santa Monica
Municipal Code to read as follows:
Section 9.04.10.14.070 Waiver/Modification of
Development Standards for Housing Developments in
Residential Zones.
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 development
standards that are requested to be waived or modified will
have the effect of physically precluding the construction of a
housing development meeting the criteria of subsection (b)
of Section 9.04.10.14.040 at the densities or with the
concessions or incentives permitted by this Ordinance.
21
SECTION 5. Santa Monica Municipal Code Section 9.04.10.14.080 is hereby
amended to read as follows:
9.04.10.14.080 Procedures
The following procedures shall govern the processing
of a request for a density bonus incentive, concession,
waiver, modification or revised parking standard:
(a) 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 applicatiohs
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:
(1) Site plan showing total number of units,
number and location of affordable housing units, and number
and location of proposed density bonus units.
(2) Target income of affordable housing units and
proposals for ensuring affordability.
22
(3) Description of anV 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 subsection (fl of Section
9.04.10.14.060 or set forth in subsection (a) of Section
9.04.10.14.060, the application shall include a pro forma
providing evidence that the requested incentives and
concessions result in identifiable, financially sufficient, and
actual cost reductions. The cost of reviewing any required
pro forma or other financial data submitted as part of the
application in support of a request for aincentive/concession
or waiver/modification of developments standard, including,
but not limited to the cost to the Ci of hirin a consultant to
review said financial data shall be borne by the developer.
The pro forma shall include all of the following items:
(A) The actual cost reduction achieved through the
incentive;
(B) Evidence that the cost reduction allows the
applicant to provide affordable rents or affordable sales
prices: and
23
(C) Other information requested by the Planning
Director. The Planning Director may require any pro forma
include information regarding capital costs, equity
investment, debt service, projected revenues, operating
expenses, and such other information as is required to
evaluate the pro forma.
(4) For any requested waiver of a development
standard the applicant shall provide evidence that the
development standard for which the waiver is requested will
have the effect of physically precluding the construction of
the residential project with the density bonus and incentives
requested.
(5) If a density bonus or concession is requested for
a land donation the application shall show the location of the
land to be dedicated, provide proof of site control, and
provide evidence that all of the requirements and each of the
findings included in Government Code Sectiori 65915(g) can
be made.
(6) 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 all of the requirements and each of the
24
findings included in Government Code Section 65915(h) can
be made.
(b) 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 discretionanr approval.
(c) 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 subsection (fl of Section 9.04.10.14.060. the
following-shall a
Pursuant to Government Code Section 65915. if the
applicant has made the evidentiary showing required by
subsection (a) of this Section, the Director or his/her
designee shall approve a density bonus and requested
incentives/concessions unless he/she finds that:
(1) The incentive or concession is not necessary
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
25
(2) The concession or incentive will have a specific
adverse impact upon public health and safety, on the
physical environment, or on any real property listed in the
California Register of Historic Resources and for which there
is no feasible method to satisfactory mitigate or avoid the
specific adverse impact without rendering the development
unaffordable to Moderate, Lower or Very Low Income
households, or
(3) The waiver is contrary to state or federal law.
Notice of the determination shall be provided to same
extent as required for the underlying development approval.
(d) For housing developments requesting a waiver
of a development standard or an incentive/concession not
included in subsection (fl of Section 9.04.10.14.060, the
following shall apply:
(1) Hearing and Notice. An application pursuant to
this subdivision shall follow the procedures for Design
Compatibility Permits set 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.
26
(2) Pursuant to Government Code Section 65915,
if the applicant has made the evidentiary showing required
by subsection (a) of this Section, the City Planning
Commission shall approve a density bonus and requested
incentives/concessions unless it makes one of the following
findings, supported by substantial evidence, 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
f B) The concession or incentive will have a specific
adverse impact upon public health and safety, or on the
physical environment or on any real property that is listed in
the California Register of Historic Resources and for which
there is no feasible method to satisfactory mitigate or avoid
the specific adverse impact without rendering the
development unaffordable to Moderate, Lower or Very Low
Income households.
(C) The concession or incentive would be contrary to
State or federal law.
(3) Pursuant to Government Code Section 65915, if
the applicant has made the evidentiary showing required by
27
subsection (a) of this Section, the City Planning Commission
shall approve a requested waiver unless it makes one of the
following findings supported by substantial evidence that:
(A) The waiver would have a specific, adverse impact
upon public health or safety or the physical environment, and
there is no feasible method to satisfactorily mitigate or avoid
the specificadverse impact without rendering the residential
project unaffordable to low and moderate income
households. For purposes of this provision, "specific
adverse impact" means a significant, quantifiable, direct, and
unavoidable impact, based on objective identified, written
public health or safety standards policies, or conditions as
they existed on the date that the application for the
residential project was deemed complete; or
(B) The waiver would have an adverse impact on real
property listed in the California Register of Historic
Resources; or
(C) The waiver is contrary to state or federal law.
(4) 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
28
is made in the manner provided in Santa Monica Municipal
Code, Part 9.04.20.24.
SECTION 6. Santa. Monica Municipal Code Section 9.04.10.14.090 is hereby
added to read as follows:
9.04.10.14.090 Exemptions from development
review thresholds. fNote: This Section is not new-only
relocated)
(a) The following proiects located in the RVC,
BCD, C2, C4, C5, C6 CM, CP, M1, and LMSD districts shall
be exempt from development review thresholds:
(1) Projects that contain a minimum of eighty
percent of floor area devoted to multi-family residential use
provided that at least fifteen percent of the housing units are
deed-restricted for households with incomes of eighty
percent of median income or less or at least ten percent of
the housing units are deed-restricted for households with
incomes of sixty percent of median income or less.
(2) Affordable housing projects in which one hundred
percent of the housing units are deed-restricted for
29
households with incomes of eighty percent of median
income or less.
(3) Proiects in the C2 and CM districts which are
required by the City's zohinq ordinance to devote more than
twenty percent of floor area to pedestrian oriented uses shall
also be exempt if these projects contain the maximum
percentage of multi-family residential use authorized by the
zoning ordinance and meet the affordable housing unit
requirement of subsection (a) of this Section.
(b) The following Proiects located in the R2, R3, R4,
R26, R3R. OP2, OP3. OP4, and OP-D districts shall be
exempt from development review thresholds:
Affordable rental housing Proiects of not more than
fifty units. For purposes of this Section, an affordable rental
housing project shall be defined as housing in which one
hundred percent of the dwelling units are deed-restricted or
restricted by an agreement approved by the Citv for
occupancy by households with incomes of eighty percent of
median income or less. An affordable rental housing project
may also include nonresidential uses, as long as such uses
constitute neighborhood-serving goods, services, or retail
uses that do not exceed fifteen percent of the floor area of
30
the total project and these neighborhood-serving goods,
services or retail uses are designated as permitted uses in
the Zoning Ordinance in the district in which the parcel is
located.
SECTION 7. Santa Monica Municipal Code Section 9.56.050 is hereby amended
to read as follows:
9.56.050 On-site option.
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).
31
(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 uhits 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
32
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 case the affordable housing units
33
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 affordable
housing fee pursuant to Section 9.56.070(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:
0 bedrooms 500 square feet
1 bedroom 600 square feet
2 bedrooms 850 square feet
3 bedrooms 1080 square feet
4 bedrooms 1200 square feet
34
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,
35
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 in a residential
district who meets the requirements of this Section shall be
entitled to the density bonuses and incentives provided by
Sections 9.04.10.14.050 and 9.04.10.14.060 and the
waiver/modification of development standards provided by
Section 9.04.10.14.070 Amulti-family proiect applicant in a
commercial or industrial district shall be entitled to the
development bonuses and incentives provided in the Land
Use and Circulation Element and implementing ordinances.
(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.
SECTION 8. Interim Ordinance (CCS), and any successor thereto, shall
remain in full force and effect.
36
SECTION 9. 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 10. 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
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 11. 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.
APPROVED AS TO FORM:
~rWl/ ~
MA SHA ES MO TRIE
City ttor
37
Attachment B
Notice of Public Hearing.
11
NOTICE OF A PUBLIC HEARING
BEFORE THE SANTA MONICA CITY COUNCIL
SUBJECT: Proposed Zoning Text Amendments to amend sections of the Zoning Ordinance in order
to implement State law regarding density bonuses for projects that include affordable
housing
APPLICANT: City of Santa Monica
LOCATION: Citywide
Public hearings will be held by the City Council to consider the following proposed text amendments and to
forward recommendations to the City Council:
Modification of and additions to the City of Santa Monica Municipal Code (SMMC) Sections 9.04.10.14.040,
9.04.10.14.050, 9.04.10.14.060, 9.04.10.14.070, 9.04.10.14.080, and 9.04.14.090, and sections
that cross-references these sections of the Zoning Ordinance to codify, in part, the provisions of Interim
Ordinance No. 2176 (CCS) and subsequent extending ordinances; to comply with Government Code Section
65915, which requires cities to adopt implementing ordinances providing affordable housing incentives.
DATEITIME: TUESDAY, February 8, 2011 AT 7:00 PM
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 commeht. You may comment at the Planning Commission public
hearing, or by writing a letter. Written information will be given to the Planning Commission at the meeting.
Address your letters to: City of Santa Monica
City Planning Division
1685 Main Street, Room 212
Santa Monica, CA 90407-2200
Attn: Travis Page, Associate Planner
MORE INFORMATION
If you want more information about this project or wish to review the project file, please contact Travis Page at
(310) 458-8341, or by e-mail at travis.page(o~smgov.net. The Zoning Ordinance is available at the Planning
Counter during business hours and on the City's web site at www.santa-monica.org.
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 publics pars revisar applicaciones proponiehdo desarrollo en Santa Monica.
Si deseas mss informacion, favor de Ilamar a Peter James en la Division de Planificacion al numero (310) 458-
8341