sr-041211-8a-incom~® Supplemental
°ty°f City Council Report
Santa 6lonica
City Council Meeting: April 12, 2011
Agenda Item:
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Supplemental Staff Report Regarding FAME Senior Housing
Recommended Action
Staff recommends that the City Council adopt the attached revised resolution approving
the issuance of tax-exempt bonds by the California Statewide Communities
Development Authority (CSCDA) to assist in the financing of a senior group housing
facility with 24 individual living quarters located at 1924 & 1930 Euclid Street, a senior
group housing facility with 18 individual living quarters located at 1753 18th Street, and a
senior housing project with seven dwelling units located at 1754 19th Street.
Executive Summary
At its March 22, 2011 meeting, City Council asked several questions regarding the
senior affordable housing proposed to be developed by FAME Santa Monica Senior
Apartments L. P. This supplemental report responds to those questions and provides
clarifying information about. the .development's amenities, zoning categorization and
financing.
Background
On March 22, 2011, the City Council considered the adoption of a resolution that would
allow CSCDA to issue tax-exempt bonds to finance senior affordable housing at
1924/1930 Euclid Street, 1753 18th Street and .1754 19th Street. Following the public
comment period, the City Council requested additional .information and clarifications
about this proposed development.
Discussion
The following represents supplemental information in response to Councilmember
questions and public comments that arose during their initial consideration of this matter
on March 22, 2011.
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Councilmember Questions
What type of housing is proposed? Will it be senior group housing or senior
apartments?
FAME Santa Monica Senior Apartments, L. P. (FAME) is the name of the developer, not
the type of housing proposed. FAME proposes the collective development, of 49
affordable senior residences on three sites. The 1924/1930 Euclid Street site will
contain 24 senior group housing residences, the 18th Street site will contain 18 senior
group housing residences and the 19th Street site will contain 7 senior housing
residences. The Zoning Code distinguishes "senior group housing" (Section
9.04.02.030.765) from "senior housing" in that senior group housing must contain "a
central kitchen and dining facilities and a separate bedroom or private living quarters"
while senior housing is comprised of "individual dwelling units" that must contain "full.
cooking facilities." The Euclid Street and 18th Street sites will both contain central
kitchen and dining facilities and include separate living quarters that contain full
bathrooms and small efficiency kitchens. The 19th Street site will provide multifamily
senior housing with individual dwelling units containing full bathrooms and kitchens.
Is the proposed development in conformance with the Zoning Ordinance designation of
Senior Group Housing?
The Zoning Ordinance for Senior Group Housing states: "The number of dwelling units
may exceed that which is permitted in the underlying district zoning if the dwelling units
consist of individual rooms that contain full bathrooms and small, efficiency kitchens
located in a building that also contains a common kitchen, dining and living space,
adequate to serve all residents." SMMC §9.04.10.02.141
Both proposed senior group housing sites (i.e., Euclid Street and 18th Street) will have
dwelling units with individual rooms with full bathrooms and small, efficiency kitchens to
include a refrigerator and stove. In addition, a common kitchen and dining and living
space are included in each building. Each kitchen will be equipped with a commercial
stove, cold and dry storage, sanitation facilities, and preparation space adequate to
serve the building's residents for large meals or group gatherings. The dining and living
space in each building are designed to meet Occupancy Load and Egress requirements
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of the California Building Code. Although subject to interpretation, the text of the Zoning
Ordinance regarding Senior Group Housing does not expressly require the provision of
staff or services. There is no explanation in the record regarding the reasons for the
elimination of density limitations for Senior Group Housing.
Planning and Housing staff, as well as the City Attorney's Office, reviewed. the Zoning
Ordinance for other housing types with common facilities and amenities for the purpose
of comparing the required provision of staff or services among these various housing
types. Staff found that the following housing types all expressly require the provision of
staff and services: 1) Congregate Housing (SMMC §9.04.02.030.210); 2) Residential
Care Facility for the Elderly (SMMC §9.04.02.030.710), and 3) Residential Housing and
Educational. Facility for Young Adults Emancipated from Foster Care (SMMC
§9.04.02.030.718). Based upon review of the Zoning Ordinance requirements of these
other housing types and the associated language specifically requiring the provision of
staff and/or services, which may include meals, staff concluded that, in contrast, the
zoning requirements for Senior Group Housing may be interpreted not to require the
provision of staff and services.
Why would the City agree to finance the development prior to final plan check approval?
All funding commitments from the City for proposed developments are conditioned upon
compliance with applicable provisions of the Zoning Code prior to building. permit
issuance. Funds for the construction of the development would not be disbursed prior
to the developer obtaining a building permit.
Would the City -have any ultimate responsibility for repaying the bonds should the
developer of the project default?
No. The repayment of bonds will be the sole obligation of the developer and the City
has no obligation to repay the bonds in the event of a default.
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Does First African Methodist Episcopal Church have the authority to enter into a ground
lease on the 19th Street property?
Yes. The City Attorney's Office and Housing staff reviewed the ground lease and
supporting documents and determined that the lessor and lease are appropriate and
legal.
Will this development have a Santa Monica resident preference?
Yes. The 'local preference' policy applicable to this development allows persons who
live or work in Santa Monica to have a preference for occupancy in this development.
The local preference policy was developed in conjunction with the City Attorney's Office
to ensure opportunities for Santa Monica residents and workers without violating Fair
Housing Laws.
Has the Planning Commission reviewed this development?
Yes. The Planning Commission reviewed the design of this development on appeal
from the Architecture Review Board on October 21, 2009. Since the proposed
development is a permitted use, consistency review of other development standards is
ministerial and undertaken prior to the Architectural Review Board's review of the
design, colors/materials and landscape plan and as part of the City's plan check
process prior to building permit issuance.
Public Comment
The project does not comply with group housing rules. Senior group housing should
have only one utility meter, as well as staff to prepare meals in the central kitchen.
Senior group housing in the Zoning Code is defined as: "A building or buildings,
including a single family dwelling that provides residence for a group of senior citizens
with a central kitchen and dining facilities and a separate bedroom or private living
quarters." The definition does not limit the number of utility meters required for senior.
group housing. SMMC Section 7.12.150 requires separate utility meters for each unit of
a multi-unit building built after 1990, unless the owner seeks and obtains an exemption.
Pursuant to this code requirement, the development proposes utility meters for each of
the individual units, which is consistent with City's policies for conserving water and
other natural resources. As previously noted, the Zoning Ordinance requires the
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provision of a common kitchen to adequately serve all residents. Review of the floor
plan layout and proposed kitchen equipment, as well as an operation plan, will be used
to establish compliance with this standard.
The development does not fit in the neighborhood.
The Statements of Official Action on the ARB appeal issued by the Planning
Commission for the Euclid Street and 18th Street developments determined -that "the
proposed design of the building or structure is compatible with developments on land in
the general area in that the proposed project is consistent with all R2 development
standards, is lower than the maximum permitted height of 30 feet, and proposes
setbacks that exceed those required by Code. In addition, the project has incorporated
significant design elements to enhance its pedestrian orientation."
Developer cancelled a meeting scheduled with adjacent residents to discuss the
proposed project.
City funding of this affordable housing development required the developer to have at
least two public workshops with adjacent neighbors to allow opportunities for input into
the design options prior to the formal submission of a planning application. These
meetings were held at Virginia Avenue Park on November 20, 2008 and December 4,
2008. In addition, the developer has informed staff that some of the neighbors with an
interest in the proposed development invited the developer's representative to attend a
meeting. regarding the development. The developer's representative had to cancel
attendance at the meeting. The developer did not reschedule the meeting because the
two previous, required public meetings provided the broadest community participation
and transparency in the consideration of the proposed development.
Due to the special nature of low income senior housing, affordability should be enforced
forever, not for 55 years.
The Zoning Code establishes that the term of affordability is 55 years. During the term
of the affordability restrictions, rent for the units cannot exceed affordable rent limits.
Is this development compliant with new ADA regulations?
Yes, the development must comply with the Americans with Disabilities Act (ADA).
Compliance with ADA is reviewed during the building permit plan check process.
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How much funding has the City provided to the proposed development?
To date, the City has provided an affordable housing loan in the amount of $4.4 million
for acquisition and predevelopment. An additional $7.1 million has been committed for
construction and is contingent upon the developer obtaining $g.5 million of construction
financing and $5.3 million in permanent financing. Tax-exempt bond financing is an
example of how the City maximizes leveraging of other financing to create affordable
housing.
No new construction can be built until the project on 12~h Street can be completed.
Housing developments in which 100 percent of the units are affordable are exempt from
the Construction Rate Program.
Revised Resolution
Attached for the City Council's consideration as Attachment A is an updated resolution
which more accurately describes the proposed affordable housing development and
makes other minor, technical changes to the original resolution.
Financial Impacts & Budget Actions
City approval of the issuance of bonds by CSCDA for the proposed development has no
financial or budgetary impact.
Prepared by: Ava Lee, Senior Development Analyst
Approved:
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Andy Agle, Direct
Housing and Economic Development
Forwarded to Council:
Rod Gould
City Manager
Attachment A: Resolution Approving the Issuance of Bonds by CSCDA for the Purpose
of Financing a Multifamily Affordable Housing Development
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