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O2350City Council Meeting: 2-22-11 Santa Monica. California ORDINANCE NUMBER 2350 (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 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 Tong-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 projects 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 City 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. 7 (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 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 project may be eligible for a density bonus in return for land donation pursuant to the requirements set forth in Government Code Section 65915(g). (2) A residential project 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. SECTION 2. Santa Monica Municipal Cdde Section 9.04.10.14.050 is hereby amended to read as follows: 8 Section 9.04.10.14.050 Additional Density Bonus Increase in Residential Zones. As set forth in the Density Bonus Calculation Table and Density Bonus Summary Table at the end of this Section, a housing development shall 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: (a) 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%). (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 thirty- 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 9 (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 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). (f) 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. 10 Density Bonus Summary Table Target Group Minimum Bonus Additional Restricted Affordable Granted Bonus for Units Restricted Affordable Units Each 1% Required 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 Housino Deve l opme nt/Q u al ifvi np Mobilehome Park 100% 20% - - '', 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 P ercentage Density Bonus Units 10 20 11 21.5 12 23 13 24,5 ii 14 26 15 27.5 16 29.0 17 30.5 18 32 19 33.5 20 35 11 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 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 SECTION 3. Section 9.04.10.14.060 is hereby added to the Santa Monica Municipal Code to read as follows: 12 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 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. As an alternative to Section 9.04.10.08.040, 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 13 (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 parking 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 of this subsection (b), in addition to by right parking incentives identified in subsection (a) above, 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: (A) One incentive or concession if five percent (5%) of the units (not including 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. 14 (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 sef 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. (B) 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. (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. 15 Incentives/Concessions Summary Table Target Group 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: (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 16 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. (3) 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 extent required 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 (f) of this Section or may submit a 17 proposal for other incentives or concessions. The process for reviewing this request is set forth in Section 9.04.10.14.080. (f) 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. (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. 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 18 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. 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 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: 19 (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. (3) 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 subsection (f) 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 City of hiring a consultant to review said financial data shall be borne by the developer. The pro forma shall include all of the following items: 20 (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 (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 21 findings included in Government Code Section 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 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 discretionary 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 (f) of Section 9.04.10.14.060, the following shall apply: 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 22 designee shall approve 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 (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 concession or incentive 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 23 included in subsection (f) 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. (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 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 (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 24 there is no feasible method to satisfactory mitigate or avoid the specific adverse impact without rendering the development unaffordable to Moderate, Lowey or Very Low Income households. (C) The concession or incentive would be contrary td State or federal law. (3) 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 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 specific adverse 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 25 (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 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. (a) The following projects 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 26 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 households with incomes of eighty percent of median income or less. (3) Projects in the C2 and CM districts which are required by the City's zoning 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 projects located in the R2, R3, R4, R2B, R3R, OP2, OP3, OP4, and OP-D districts shall be exempt from development review thresholds: Affordable rental housing projects 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 City for occupancy by households with incomes of eighty percent of 27 median income or less. An affordable rental housing project may also include nonresidential uses, as lohg as such uses constitute neighborhood-serving goods, services, or retail uses that do not exceed fifteen percent of the floor area of 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 fow- income households if these rental units are provided by the 28 applicant in accordance with Civil Code Sections 1954.52(b) and 1954.53(a)(2). (b) For ownership projects of sixteen units or more in multi-family residential districts: The multi-family project applicant. agrees to construct at least (1) twenty-five percent of the total units as ownership units for moderate-income households, or as an alternative, (2) twenty-five percent of the total units as rental units for low-income households if these rental units are provided by the applicaht 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 29 treated as a whole affordable housing unit (i.e., any resulting fraction shall be rounded up to the next larger integer) and that unit shall also be built pursuant to the provisions of this Section. Any fractional affordable housing unit that is less than 0.75 can be satisfied by the payment of an affordable housing fee for that fractional unit only pursuant to Section 9.56.070(a)(4) or by constructing all the mandatory on-site affordable units with three or more bedrooms. The Planning and Community Development Department shall make available a list of very low-, low-, and moderate-income levels adjusted for household size, the corresponding maximum affordable rents adjusted by number of bedrooms, and the minimum number of very low- or low-income units required for typical sizes of multi-family projects, which list shall be updated periodically. (e) The multi-family project applicant may reduce either the size or interior amenities of the affordable housing units as long as there are not significant identifiable differences between affordable housing units and market rate units visible from the exterior of the dwelling units, provided that all dwelling units conform to the requirements of the applicable Building and Housing Codes. However, each affordable housing unit provided shall have at least two 30 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 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 31 4 bedrooms 1200 square feet Affordable housing units in multi-family projects of one hundred units or more must be evenly disbursed throughout the multi-family project to prevent undue concentrations of affordable housing units. (f) All affordable housing units in amulti-family project or a phase of a multi-family project shall be constructed concurrently with the construction of market rate units in the multi-family projector 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 nisJher 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 32 information for each affordable unit for the prior year, verification of income of the household occupying each affordable unit throughout the prior year, and such other information as may be required by City staff. (i) Amulti-family project applicant 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 project 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 2345 (CCS), and any successor thereto, shall remain in full force and effect. 33 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. 34 APPROVED AS TO FORM: Approved and adopted this 22nd day of February,. 2011. Richard Bloom, Mayor State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2350 (CCS) had its introduction on February 8, 2011, and was adopted at the Santa Monica City Council meeting held on February 22, 2011, by the following vote: Ayes: Council members: Holbrook, McKeown, O'Day, Shriver Mayor Pro Tem Davis, Mayor Bloom Noes: Council members: None Abstain: Council members: None Absent: Council members: O'Connor A summary of Ordinance No. 2350 (CCS) was duly published pursuant to California Government Code Section 40806. ATTEST: Maria M. Stewart, City Clerk