r-10635f: \atty \muni\ law \barry\monitoringfeereso11 -22 -11 final
City Council Meeting 11 -22 -11
Santa Monica, California
RESOLUTION NUMBER ;0 156 (CCS)
(City Council Series),
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
ESTABLISHING COMPLIANCE MONITORING FEES FOR AFFORDABLE HOUSING
UNITS PURSUANT TO SANTA MONICA MUNICIPAL CODE SECTIONS 9.56.050
AND 9.56.060 BASED ON THE REASONABLE REGULATORY COSTS OF
ENSURING COMPLIANCE WITH THE CITY'S AFFORDABLE HOUSING
PRODUCTION PROGRAM AND ANNUALLY MONITORING AFFORDABLE HOUSING
UNITS
WHEREAS, the City's Affordable Housing Production Program, Chapter 9.56 of
the Santa Monica Municipal Code (the "AHPP "), requires developers of multi - family
housing projects to contribute to affordable housing production and thereby help the
City meet its affordable housing goals; and
WHEREAS, subject to certain exceptions, the requirements of the AHPP can be
met through various alternatives including providing affordable housing units on -site,
providing affordable housing units off -site, acquiring land for affordable housing, and
paying an affordable housing fee; and
WHEREAS, Ordinance Number _ (CCS) (the "Ordinance "), adopted
November 22, 2011, authorizes the City Council by resolution to establish compliance
monitoring fees which reflect the reasonable regulatory cost to the City of performing
G
investigations and audits to ensure that the affordable housing units comply with the
Affordable Housing Production Ordinance when affordable housing units are initially
being rented or sold, when the required annual reports are submitted to the City and
when the units are being reoccupied or resold; and
WHEREAS, when a developer has chosen to meet the requirements of the
AHPP through the provision of on -site or off -site rental housing and is preparing to rent
the affordable unit(s), the developer must select households from a City - developed list
of income - qualified households except for ownership projects of four or more units
where income - eligible households may be selected by the developer, submit a copy of
the proposed lease agreement for City.review /approval, and prepare a deed restriction
to be recorded on the property consistent with the requirements of the AHPP; and
WHEREAS, when a developer has developed an ownership project and is
preparing to initially sell the affordable unit(s), the developer must submit a brief
marketing plan and a description of the buyer selection process which includes
implementation of the City's local preference policy, submit the buyer's income - eligibility
documentation for City review /verification, and provide information regarding buyer
financing terms for City review for consistency with affordability criteria established in
Section 9.56.100 and the Administrative Guidelines for the AHPP; and
WHEREAS, after the developer has rented the affordable unit(s), the developer
or his /her successor must 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, verification of income of the
`A
household occupying each affordable rental unit throughout the prior year, and such
other information as may be required by City staff to determine compliance with the
AHPP; and
WHEREAS, when a vacancy for an affordable rental unit occurs and the
developer is preparing to re -rent the unit, the developer must select households from a
City - developed list of income - qualified households unless ownership housing; and
WHEREAS, when the owner of an affordable ownership unit seeks to sell that
unit, the owner must submit a brief marketing plan and a description of the buyer
selection process which includes implementation of the City's local preference policy,
submit the buyer's income - eligibility documentation for City review /verification; and
provide information regarding buyer financing terms for City review for consistency with
affordability criteria established in Section 9.56.100 and the Administrative Guidelines
for the AHPP; and
WHEREAS, when a developer seeks initially to lease his /her affordable unit(s),
City staff must engage in the following work efforts: review sample lease agreement,
obtain prospective tenant names from City- administered waiting list, interview applicant
and review income /asset documentation for eligibility, provide referral list of income-
qualified applicants to developer, review deed restriction and add the record to
monitoring database for new unit; and
WHEREAS, when a developer seeks initially to sell an affordable ownership unit,
City staff must engage in the following work efforts: review deed restriction and add
record to monitoring database for unit, review draft marketing plan, review buyer
3
income /asset documentation, review purchase agreement and buyer financing terms,
and provide program information to buyer regarding resale restrictions; and
WHEREAS, when a developer submits his /her annual report for an affordable
rental unit, City staff must engage in the following work efforts: prepare letter to owner
regarding the annual report, review submitted report, schedule monitoring appointment,
engage in compliance monitoring, and review tenant annual income recertification files;
and
WHEREAS, when a developer submits his /her annual report for an affordable
ownership unit, City staff must engage in the following work efforts: prepare letter to
owner regarding the annual report and review annual report documentation to confirm
that designated owner still lives in unit; and
WHEREAS, when a developer seeks to re -lease an affordable unit, City staff
must engage in the following work efforts: obtain prospective tenants from City -
administered waiting list and schedule appointment, interview applicant and review
income /asset documentation for eligibility, and provide referral list of income - qualified
applicants to developer; and
WHEREAS, when an owner seeks to re -sell an affordable unit, City staff must
engage in the following work efforts: review new buyer income /asset documentation for
eligibility, review purchase agreement and new buyer financing terms, and provide
program information to new buyer regarding resale restrictions; and
4
WHEREAS, on June 14, 2011, the City Council directed staff to prepare an
ordinance authorizing the establishment of a fee to recover staff costs of ensuring
compliance with the AHPP and monitoring affordable housing units and an ordinance
was prepared in response to Council's direction; and
WHEREAS, the November 22, 2011 City Council staff report details the tasks
that staff must undertake, the time for performing these tasks, the classification of the
employees performing these tasks, their hourly rate, and the overall staff costs of
ensuring compliance with the AHPP and monitoring affordable housing units; and
WHEREAS, these compliance monitoring fees are necessary to permit the City
to offset the reasonable regulatory costs for performing investigations and audits to
ensure that the affordable housing units are occupied in compliance with the AHPP,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The owner of an affordable housing unit pursuant to Santa
Monica Municipal Code Sections 9.56.050 or 9.56.060 shall pay the following
compliance monitoring fees:
5
Fee Amount
Fee Applicability
Rental Units
$170
Initial Occupancy (one -time)
$145
Each reoccupancy
$135
Annual Report
Ownership Units
$135
Initial Sale (one -time)
$150
Each resale
$30
Annual Report
5
SECTION 2. Commencing on July 1, 2013 and on July 1 of each fiscal year
thereafter all fees established by this resolution, unless noted otherwise, shall be
administratively revised and increased annually by a factor equal to the difference in the
Los Angeles- Anaheim- Riverside Consumer Price Index for Wage Earners and Clerical
Workers for the twelve (12) month period February through February of the prior fiscal
year, except that any such administrative revision shall not be less than any annual cost
of living adjustment provided to the employees of the City of Santa Monica through
Memorandums of Understanding entered into between the City and the employees'
bargaining representatives for the comparable fiscal year, and in no event shall the
annual administrative revision be less than zero percent (0 %).
SECTION 3. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect when Ordinance
Number _ (CCS) is effective.
APPROVED AS TO FORM:
Adopted and approved this 22nd day of November, 2011.
Ric and Bloom, Mayor
i,
"ivlaua "- -f- M. vtaJJart, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution No. 10635 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 22 "d day of November, 2011, by the following vote:
Ayes: Councilmembers: McKeown, O'Day,
Mayor Pro Tern Davis, Mayor Bloom
Noes: Councilmembers: Holbrook
Absent: Councilmembers: O'Connor, Shriver
ATTEST:
Maria M. Stewart, Cit Clerk