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sr-062612-8bCity Council Meeting: June 26, 2012 Agenda Item: '66 To: Mayor and City Council From: Andy Agle, Director of Housing and Economic Development Subject: Affordable Housing Production Program Amendments Recommended Action Staff recommends that City Council: 1. Amend the Affordable Housing Production Program Administrative Guidelines as set forth in Attachment A, to: a. Revise Sections 6 -A and 6 -B to clarify existing language regarding the purchase price formula and escrow timing associated with the City's purchase option upon resale of affordable condominiums; b. Add a new Section 7 -D.2 to establish that tenants who were not income - qualified for an affordable residence at initial occupancy must vacate within 90 days of receiving written notice from the property owner; c. Add a new Section 7 -D.3 to establish a property owner's responsibility to pay tenant relocation expenses if the property owner fails to establish that the tenant is income - qualified at initial occupancy; d. Add a new Section 7 -DA to establish that a property owner must provide advance written notice to the City before issuing a rent increase notice to a tenant; and 2. Direct staff to prepare for City Council consideration an ordinance eliminating the discount of the Affordable Housing Unit Base Fee, currently 50 percent in commercial zones and 25 percent in residential zones. Executive Summary The proposed modifications to the Administrative Guidelines (Guidelines) of the Affordable Housing Production Program (AHPP) respond to circumstances relating to the implementation and effectiveness of the AHPP. Amending the Guidelines would clarify components of the purchase price formula and the purchase option timing granted to the City in conjunction with the resale of an affordable condominium, as well as a tenant obligation to vacate an affordable residence within 90 days of receiving notice if the tenant was not qualified to initially occupy the affordable residence. Additional amendments to the Guidelines would establish that property owners must 1 pay the cost of relocating a tenant to another residence in situations where the property owner cannot produce documentation establishing a tenant's income eligibility at initial occupancy, and that property owners must provide written notice to the City prior to issuing rent increases to tenants of AHPP housing. Finally, a discount of the Affordable Housing Unit Base Fee was adopted to incentivize new housing development in commercial zones and on vacant parcels in residential zones in order to protect existing multifamily housing. Housing development data indicates that the impact of this fee incentive is unclear, as a significant amount of multi - family development has occurred on properties in commercial and residential zones with existing multi - family housing. Staff is seeking City Council direction on eliminating the discounted fee. Background The AHPP, contained in SMMC Section 9.56, implements Proposition R, which establishes that not less than 30 percent of all newly constructed multifamily housing in the City annually must be affordable to low- and moderate - income households for at least 55 years. The AHPP was adopted by the City Council on July 21, 1998 and has been periodically amended as necessary when the provisions of Proposition R have not been met. The AHPP requires developers of new market -rate multifamily housing to contribute to affordable housing goals through dedication of a portion of a project's total units as affordable housing, construction of affordable housing offsite, dedication of land for affordable housing development, or payment of a fee. Multifamily ownership housing of four of more units developed in Santa Monica's multifamily districts is required to include affordable units either on -site or off -site. Currently, there are approximately 1,000 AHPP affordable residences located throughout Santa Monica that were developed by for - profit developers. The AHPP Ordinance establishes that the City shall develop administrative guidelines. The Guidelines, originally adopted by the City Council on October 5, 1999 and most recently amended on June 14, 2011, detail the affordable housing fee adjustment methodology, the options available to market -rate housing developers when deciding to build off -site affordable units associated with a market -rate project, the factors used in determining the affordable sale price of ownership units, and protocols regarding the tenant and purchaser selection process for income - qualified households. 2 Discussion Staff has identified components of the Guidelines where changes are necessary to clarify existing language to facilitate administration of the program and to ensure that affordable residences are available for income - qualified households. The proposed amendments also include new language to establish tenant and property owner obligations when ineligible tenants are allowed to occupy affordable residences at move -in, and a new provision to notify the City before issuing rent increase notices. Details of these proposed amendments are found below. Guidelines Modifications Affordable Condominiums Sections 6A -B of the Guidelines detail the requirements associated with establishing the purchase or resale price and affordable housing cost of an affordable condominium, as well as the City's purchase option upon resale. Recent experience in administering the program revealed the need to clarify some of the existing Guideline's language. One proposed change clarifies that the purchase or resale price of an affordable condominium is based upon the affordable "total monthly housing cost" plus a down payment of no less than five percent. Another change clarifies that the City has sixty days to submit a written purchase offer, after receiving notice of the owner's intent to sell the affordable unit, and the seller and City must mutually agree on the purchase price and length of the escrow period. Finally, the proposed language makes clear that although the seller has the right to reject purchase offers, the seller may only accept a purchase offer from an income - qualified buyer at a price consistent with the affordable price formula. Tenant Not Initially Income - Qualified Section 7 -C.8 of the Guidelines establishes policy for increases in tenant income which surface during the annual income recertification process. However, the Guidelines do not specifically address the circumstance in which a property owner allows a tenant to occupy an affordable residence but fails to obtain sufficient documentation to establish the tenant's initial income eligibility. New language in Section 7 -D.2 of the proposed 3 Guidelines would establish that in such instances, the property owner must give the tenant a minimum of 90 days to vacate. Additionally, a new Section 7 -D.3 would specify the property owner's responsibility to pay the costs directly associated with relocating the tenant to another residence within Santa Monica or an adjacent area, unless the tenant provided fraudulent information to initially occupy the unit. Such costs would include packing and unpacking, moving and movers and utility connection fees, but would not include the differential in rent between the affordable (AHPP) residence and the new residence. Rent Increase Notice The Guidelines do not currently include a provision requiring property owners to provide the City with an advance notice of rent increases they intend to issue to their tenants. Rents on AHPP residences are limited to create affordability and allowable rents generally include parking and utilities such as water and trash removal. Calculating rents on some of the AHPP residences is complicated due to other applicable programs, such as Rent Control and Multi- family Earthquake Repair Loans that impact the amount of allowable rent increases. Although most property owners with AHPP residences keep their rents and rent increases within the permissible limits, staff review of proposed rent increases would ensure program compliance. Therefore, a Section 7- DA of the proposed Guidelines would establish that a property owner must provide a 30 -day advance written notice to the City before issuing a rent increase notice to a tenant. Eliminate Fee Discount Staff is seeking City Council direction on eliminating an existing discount to the Affordable Housing Unit Base Fee (9 56.0700} and would return to Council with a proposed Ordinance removing the fee discount. The AHPP provides a fee discount for new developments that will not displace multi - family housing — a 50 percent discount in commercial zones and a 25 percent discount in residential zones. The discounted fee was intended to steer housing development to parcels that would not involve removing M existing multi - family housing. More than 140 housing developments have been completed since implementation of the discount, but more than one -half of the new developments occurred on properties already developed with multi - family housing. Therefore, the fee discount does not appear to be achieving the anticipated purpose. Eliminating the discount would provide increased financial support to the City's Housing Trust Fund when such development occurs. Financial Impacts & Budget Actions There are no financial or budget impacts associated with the proposed amendments to the AHPP Guidelines. Prepared by: Jim Kemper, Housing Administrator Approved: Andy Agle, Director Housing and Econo Attachments: Development Forwarded to Council: Rod Gould City Manager A. Proposed Amendments to the Administrative Guidelines of the Affordable Housing Production Program 5 ADMINISTRATIVE GUIDELINES for the AFFORDABLE OV. of the CITY OF SANTA (Pursuant to Chapter 9.56 of,the Municipal Code) the Housing Division by City Council June 4 ^,244412 2012 Administrative Guidelines Affordable Housing Production Program 1. Introduction ................................................................................... ..............................1 2. Fee Methodology ......................................... ............................... ............................333 A. Establishment and Periodic Adjustment of Base Fee ............. ............................333 B. Affordable Housing Unit Development Cost ........................ .........................4z4 3. On -Site Affordable Unit Option ..... ............................... .... ............................... 555 4. Off -Site Affordable Unit Option ...................... .,......6 ....... .........................666 A. One - Quarter Mile Radius Maximum .......... B. Exceptions to the One - Quarter Mile Radiu C. Evidence of Site Control ............................ D. Simultaneous Development of Off -Site Aft 5. Land Acquisition Option........... A. Eligible Land Parcels.... B. Evidence of Site Control C. Conveyance of,the Site ........... D. Simultaneous - Convevance:of Land E. Eligible 6. For - Sale;) ..................... ::...:..................... 666 imum....................... . ...........666 .......... 888 dable Units ........ ............................838 ....... .....:............... .............................9w eveloper ............... .........................144444 .............................. .......................1544515 A. Establishment of the Initial Purchase Price ........................... .......................151 -545 B. Re7Sale of an Affordable Unit to a Subsequent Purchaser .. ........................174 -71 f C. Subordination ......................................... ............................... .....................184 -8-W-- D. Default and Foreclosure... ........................... ........................... .......................194 -94-8 E. Distribution of lnsurance and Condemnation Proceeds ....... ........................19441 -8 7. Tenant and Purchaser Eligibility Procedures ............................ ........................202419 A. Priority Households ............................. ............................... ..........................2029 B. Persons Ineligible to Occupy an Affordable Unit ............... ...........................212a 29 C. Establishment, Maintenance, and Update of Income - Qualified Tenants and PurchasersList .................................... ............................... .........................222224 8. Adjustments or Waivers ........................... ............................... .........................29299 Administrative Guidelines Affordable Housing Production Program /AaECyCR1rl. lrll 1 -A Municipal Code Chapter 9.56 1 -B AHPP Options Comparison Table 2 -A Fee Adjustment Methodology 2 -B Current Base Fees for Apartment and Condominium Projects 3 -A Affordable Units Table - Condominium Projects w /4+ Units in Multifamily Zones 3 -B Development Incentives Table 3 -C Very Low, Low and Moderate Income Levels 3 -D of Maximum Rents 3 -E Sample of Deed Restrictions\ 4 -A Sample Application for Affordable Housing Eligibility List 4 -B Referral Form Administrative Guidelines Affordable Housing Production Program tT1 1i These Administrative Guidelines provide guidance on the implementation of the City's Affordable Housing Production Program, Chapter 9.56 of the Santa Monica Municipal Code ( "AHPP ") (see Attachment 1 -A for a complete copy of the AHPP). The AHPP was originally adopted by the City Council on July 21, 1998. It has been amended on several occasions since then. The AHPP gives developers options for satisfying the City's affordable housing,reg depending on the housing type and location All new multi - family housing developments housing that is part of commercial or other c unless specifically exempted by comparison table on the various options,for implements Propos Proposition R newly constru low- and these Gu information about the housing a variety of options vary being )re units, including multi - family must comply with Chapter 9.56 56. See Attachment 1 -B for a 9.56. The AHPP R. Approved by Santa Monica voters in November, 1990, at not less than 30 percent of all multi - family residential housing City each year be permanently affordable to, and occupied by, describes the Fee Methodology. Section 3 provides of affordable units required and development incentives associated with the On -Site Option. The remaining sections expand upon the AHPP and provide additional requirements regarding the Off -Site Option (Section ), the Land Dedication Option (Section 5), For -Sale Affordable Units (Section 6), the Tenant and Purchaser Eligibility Procedures (Section 7) and Adjustments or Waivers (Section 8). Questions about how a particular multifamily project applicant shall satisfy the affordable housing obligation (pay fee, build units onsite or offsite, or provide land dedications) Administrative Guidelines Affordable Housing Production Program 1 i should be directed to the City Planning Division at (310) 458 -8341 or to the Planning Counter in Room 111 in City Hall. Questions about current maximum rents and sales price calculation, or Tenant Eligibility and Selection Procedures should be directed to staff in the Housing Division at (310) 458 -8702. Administrative Guidelines Affordable Housing Production Program 2 1 ,1.-:P 1 r One way to satisfy the affordable housing obligation is through payment of the Affordable Housing Unit Base Fee (§ 9.56.070). The amount of the Affordable Housing Unit Base Fee ( "Base Fee ") is based upon the floor area of the project. The floor area of the project, as defined in the Municipal Code § 9.04.02.030.315, is multiplied by Base Fee in order to determine the total fee owed by each project. The proceeds from this Base Fee are deposited into a special City Trust Fund and used to facilitate the development of housing affordable to very low income, low- income and moderate- income households. The Fee Option is not available for ownership projects of 4 or more units in the City's multi- family residential zones. A. Establishment and Periodic Adjustment .of Base Fee,, The Base Fee is set by a Resolution of'the City Council (See Municipal Code 9.56.070 (b)) and is subject to annual,adjustment based on changes in land cost and construction cost. The methodology for making these 'annual adjustments was established by the City Council in June 2006. More specifically, construction cost inflation is established based on the Engineering News Record's (ENR) Construction Cost Index, because it is updated monthly and is readily available via the,lnternet. The methodology uses annual change in median condominium purchase prices as,a proxy measure for land cost changes. The relative balance between land cost inflation (based on changes in median condo prices) and construction cost inflation (based on a construction cost index) is determined based on current development cost data for recently completed or construction -in- progress multi- family affordable developments assisted by the City. A detailed explanation of the annual adjustment methodology is provided in Attachment 2 -A. There are different base fees for condominiums and apartment projects. Attachment 2- B contains the current Base Fee amounts for apartment and condominium projects. Administrative Guidelines Affordable Housing Production Program 191 B. Affordable Housing Unit Development Cost The Affordable Housing Unit Development Cost is set by a Resolution of the City Council (See Municipal Code 9.56.070(c)) and is subject to annual adjustment based on changes in land cost and construction cost. The methodology for making these annual adjustments was established by the City Council in June 2006 and is the same methodology used in adjusting the Affordable Housing Unit Base Fee described in Section 3 -A. The Affordable Housing Unit Development Cost is the average cost to the City to,develop a unit of housing affordable to low- and moderate - income households. The Affordable Housing Production Program provides that when developers of market rate' multi - family housing are providing affordable units on- or off -site, and the calculation of the number of affordable units required results in a fractional unit, these cost of producing that fractional un Cost if that fraction is less than 0.7 le 1.2 1 unit would be velopers are eligible to pay a fee equal to the on the Affordable Housing Unit Development 0 nits on -site 632 = $53,126.40 Administrative Guidelines Affordable Housing Production Program Another way to satisfy the affordable housing requirements of Chapter §9.56 is by constructing affordable units on the same site as the proposed new multi - family project (See § 9.56.050). Ownership projects or 4 or more units in multifamily zones must provide affordable units either onsite or offsite (See § 9.56.040). All housing developments that provide onsite affordable units in accordance with the AHPP are entitled to a bonus over the maximum allowable number of units on the site (i.e.,'density bonus) or a development bonus (commercial /industrial zones) and This includes all units for sale or rent such as: ® Substantial remodel and conversion of • Substantial remodel of re • Condos and apartments. Attachment 3 -A provides a tak required in an ownership projec that may be paid as a fee. At other development incentives all 3 -C I and`3 -D provide informatic Attachment 3 -E provides an ex Property between the City and housing units. W buildings to residential units minimum number of affordable units zone and the fractional portion of a unit es information on density bonus and when providing onsite affordable units. Attachment the most current income eligibility and rent limits. ample of the Agreement Imposing Restrictions on Real the developer regarding a project containing affordable 5 Administrative Guidelines Affordable Housing Production Program h ' IC 1 1 . 1' r, This section of the Guidelines specifies certain additional requirements concerning the location of the Off -Site Affordable Units, site control and concurrent development of the market -rate project and the off -site units. A. One - Quarter Mile Radius Maximum Except as provided below, the alternative site located within a one - quarter mile radius of the, . proposed, and within the boundaries of the City this one - quarter mile radius area shall be det Development Department. The Department's method used for determining the area within wh permit is given. Specifically, on a map of City p part of the project application a'set of one -quar on which the ma parcel on which within these inte Site Affordable 'I B. Exceptions to the The City Planning Co upon substantial units is a Units shall be I on which the market rate units are MC § 9:56.060 (c)) The'outer limit of 30 by.the Planning and Community id for so doing shall be similar to the of a pending development t applicant shall submit as mile radii'from the corners of the parcel Any multi - family parcel or commercial use, located, in whole or in any part, n eligible parcel for development of Off- Mile Radius Maximum ile radius requirement may be waived by majority vote of the hose decision shall be appealable to the City Council), based demonstrating that the location of Off -Site Affordable Units more than one - quarter mile from the site of the market rate units, but still within the City limits, better accomplishes the goals of the City's zoning and planning regulations, including maximizing affordable housing production and dispersing affordable housing throughout the City. (SMMC § 9.56.060 (f)) Administrative Guidelines Affordable Housing Production Program [7 The project applicant shall have the burden of demonstrating why a location for the Off -Site Affordable Units of more than one - quarter mile from the market rate units better accomplishes the City's affordable housing objectives. In making its determination, the Planning Commission shall considerthe recommendations ofthe Planning Directorand the Housing and Redevelopment Manager on the petition. An application for an exception to the one - quarter mile radius shall be submitted as part of the planning application for any other discretionary approvals on the project that are Commission. By way of example, but not by limitation, include: ® No Available Sites. There are no mu parcels within the strict bou accommodate the required n ® Dispersal of. Off -Site Affol ® More Afforda results in a p' were located ® Deener Levt Units throughout rview of the Planning may justify the special exception ti- family or suitably zoned non - residential the one - quarter mile radius that can Affordable Off' -Site Units. City. makes it possible to locate size, price or other characteristics of the alternative site s more affordable units than the project would yield if it of the one - quarter mile radius. of Affordability. The size, price or other characteristics of the ition' makes it possible to offer the Off -Site Affordable Units to households at a lower household income level than would be possible within the strict limits of the one - quarter mile radius. In no event, however, shall the Off -Site Affordable Units be located outside a radius of one mile from the market rate units. No more than five project exceptions to the one - quarter mile radius shall be approved in any one City fiscal year. Administrative Guidelines Affordable Housing Production Program 7 C. Evidence of Site Control In order to exercise the Off -Site Affordable Unit Option, the applicant must provide evidence that the site is owned in fee or that an option to purchase, subject to City project approval, has been secured. (SMMC § 9.56.060 (b)) Evidence of such site control (e.g., copies of purchase or option agreements) shall be provided to, the City as part of the project application package. D. Simultaneous Development of Off -Site All affordable housing units in a multi - family shall be constructed concurrently with the consl family project or phase of that project. No buildin issued until a building permit has been issued for City construction permit sign -off or units until final construction permit Off -Site Affordable Units. Off -Site applicable, prior to with L' a phase of a multi - family project of market rate units in the multi - t for the market rate units shall be Site Affordable Units, and no final all be granted for the market rate permit has been granted for the for rent or sale, as sale of the market rate units. Administrative Guidelines Affordable Housing Production Program This section of the Guidelines specifies additional requirements for exercising the Land Acquisition Option. A. Eligible Land Parcels Only land parcels meeting the following minimum Land Acquisition Option: 1. Zoning Land parcels eligible for conveyance to tl housing developer, shall be located in a industrial district in which multi- familv;ho be eligible under the eligible non - profit affordable housing, commercial or itted use. 2. Minimum Land Value For sites dedicated to the City, or an eligible non - profit affordable housing developer, the fair market value of thel.parcel(s) shall be at least equal to the amount of the Affordable Housing Production Fee that would otherwise apply were the market rate project;,applicant to elect that option under Chapter 9.56 instead of the Land Acquisition Option. The fair market value of the parcels proposed under this, Option shall be supported by an estimate of value prepared by a qualified real estate'appraiser, subject to the City's reasonable review of the appraisal. For situations involving option payments, rather than conveyance of land in fee, see below. For below market rate sales, or option transfers, see below. 3. Site Characteristics The parcel shall satisfy the following minimum criteria: - 6,000 square feet - Can be developed with at least 4 dwelling units Administrative Guidelines Affordable Housing Production Program 9 - Free of characteristics that would make it difficult or impossible to develop (i.e., irregular'shape, excessive sloping, soil or other contamination, adjacent to incompatible land use) A Phase I environmental evaluation report shall be required before any parcel can be considered for conveyance. 4. One - Quarter Mile Radius Maximum Except as provided below, the land parcels) proposed to be conveyed to the City, or an eligible non - profit affordable housing developer, shall be located within a one- quarter mile radius of the parcel on which within the City limits. (SMMC § 9.56.080) radius area shall be Department. The De used for determining permit is given. Spe draw a set ofone -qi market rate units will area the P on a map of City units are proposed and limits of this one - quarter mile Community Development II be similar to the method of a pending development the project applicant shall radii from the corners of the parcel on which the nulti- family parcels located, in whole or in rter mile radii is an eligible parcel for the The maximum one - quarter mile radius requirement may be waived by majority vote of the City Planning Commission (whose decision shall be appealable to the City Council), based "upon substantial evidence demonstrating that the location of land more than one - quarter mile from the site of the market rate units better accomplishes the goals of the City's zoning and planning regulations, including maximizing affordable housing production and dispersing affordable housing throughout the City. (SMMC § 9.56.080) Administrative Guidelines Affordable Housing Production Program 10 i The project applicant shall have the burden of demonstrating why a proposed site more than one - quarter mile from the market rate units (but still within the City limits) better accomplishes the City's affordable housing objectives. In making its determination, the Planning Commission shall considerthe recommendations of the Planning Director and the Housing and Redevelopment Manager. An application for an exception to the one - quarter mile radius shall be processed simultaneously with any the project that are within the purview of the Planning C By way of example, but not by limitation, include: No Available Sites. There are no mu the one - quarter mile radius that are. ® Dispersal of Affordable Units. The a affordable housing throughout the C �fflrf _ may justify unary approvals on exception within the strict boundaries of family development. it possible to locate characteristics of the alternative site that yields more affordable units than under the On -Site Affordable Units option or the Off- Affordable Units option in Ordinance 1918. Deeper Level of Affordability. The size, price or other characteristics of the alternative location, makes it possible to offer affordable units to households at a lower household income level than would be possible within the strict limits of the one - quarter mile radius. In no event, however, shall the Land Acquisition Option apply to a site located outside a radius of one mile from the market rate units. No more than five project exceptions to the one - quarter mile radius maximum shall be approved in any one City fiscal year Administrative Guidelines Affordable Housing Production Program 11 B. Evidence of Site Control In order to exercise the Land Acquisition Option, the market rate multi - family project applicant shall provide evidence, subject to reasonable City approval, that the site to be conveyed to the City, or an eligible non - profit affordable housing developer, is owned in fee by the applicant, or that an option to purchase has been secured. Evidence of such site control, including a current title report, and a copy of the option or lease agreement, if applicable, shall be included as part of the application for,the market rate project. C. Conveyance of the Site An eligible site, or option to purchase an eligible non - profit affordable housing de, 1. Fee Title Transfer The site shall be sold or developer free of any e prevent it from being di housing developer, for If to n may conveyed to °the,City, or an City or to a qualified non - profit housing ractual, physical or financial, that would way by the City, or a qualified non - profit nily housing. n eligible non - profit affordable housing City shall provide reasonable cooperation as may be :ant secure any state or federal tax credit forwhich such If the site is sold to the City, or to an eligible non - profit affordable housing developer at below market rate, the difference between the fair market value and the below market sale price must be at least equal to the amount of the Affordable Housing Production Fee otherwise due, if that option had been selected by the project applicant. 1 Administrative Guidelines Affordable Housing Production Program 2. Option to Purchase If the market rate project applicant secures an option for another site to fulfill the Land Acquisition Option, the option must have a minimum term of six months and clearly state that the option may be transferred to a third party, such as the City or a qualified non - profit housing developer, under the same terms and conditions, including the agreed upon purchase price. A copy of the option agreement and a current title report shall be included with the application for the market rate project. Any costs incurred by applicant to maintain the option from the date of project application through successful transfer of the option to the City orto a qualified non- profit developer shall be the responsibility of the applicant. If the sum of the applicant's out -of- pocket option - related expenses, from date of project application through conveyance of the option, is less than the amount of the Affordable Housing Production Fee Option, these costs will be treated as a credit against the Affordable Housing Production Fee that would otherwise be due the City under that Chapter 9.56 option. The applicant shall "pay any difference to the City as a reduced_ Affordable Housing Production Fee: The applicant shall provide the City a full accounting of all option payments and out -of- pocket option - related costs eligible for offset against the Affordable Housing Production Fee amount, which accounting shall be subject to reasonable City review and approval. land offered for,option must have the following minimum site characteristics: - 6,000 square feet i -' Can be developed with at least 4 dwelling units Free of characteristics that would make it difficult or impossible to develop (i.e., irregular shape, excessive sloping, soil or other contamination, adjacent to incompatible land use) A Phase I environmental evaluation report shall be required before any parcel can be considered for option. 1191 Administrative Guidelines Affordable Housing Production Program The City shall exercise reasonable discretion in considering the option. The land option must be consistent with all City funding requirements, including the Consolidated Rental Housing Trust Fund Guidelines. D. Simultaneous Conveyance of Land or Option Conveyance of land or an option to purchase land to the City or an eligible non - profit affordable housing developer, pursuant to Chapter 9.56; shall be completed prior to the City's final sign -off on construction permits for the market rate;un.its, or issuance of a certificate of occupancy, whichever occurs first. E. Eligible Non- Profit Affordable Housing Developer Dedication of land, below market rate sale of land or transfer of an option to purchase may be made either to the City or an "eligible non- profit affordable housing developer." For purposes of the Land Acquisition Option of Chapter 9.56, an eligible not - profit affordable housing developer is a private,_ non-profit corporation with: (1) a current exemption under Section 501(c)(3) of the U.S. Internal Revenue Code; (2) a certificate of good standing from the Secretary of State in which the organization is incorporated; (3) has the development of housing, affordable to low- income households as one of its principle missions; and (4) has been approved by the City Housing and Redevelopment Manager, based on reasonable review of the organization's record of performance developing multi- family housing affordable to low-income households. The non - profit affordable housing developer intended as the recipient of land pursuant the Land Acquisition Option must be identified as part -of the project application. Administrative Guidelines Affordable Housing Production Program 14 MCI M= In the event that the affordable units required under either the On-Site Affordable Unit Option or the Off-Site Affordable Unit Option is -are intended to be for-sale units, rather (principal and interest) property taxes, r)rorterty insurance and property Mgggage insurance, and homeowners' association dues. The conventional financing shall conform to all of the following terms 1161 Administrative Guidelines Affordable Housing Production Program Loan Term: 30 Years Interest Rate: Fixed Minimum Dowf�� Maximum Front End Debt-to-Incorne Ratio: 38% Maximum Back End Debt-to-Incorne Ratio: 41% 9.56 and this Acireement. ' principal and interest, property Front End Ratio: ratio of total monthly housing costs (including mortgage h*xen'~ insurance, nern'�assooiation dues and mortgage insurance, if applicable —tototal gross household income. Chapter 9.50of the Municipal Code restricts the front-end ratio tono more than 2 Back End Ratio: ra I tio of total monthly housing costs (including mortgage principal and interest, property taxes, property insurance association dues and mortgage insurance, if applicable) plus other monthly payments on long-term household debt to gross household income. The actual once of the affordable unit will be a combination of the bank loan amount a Administrative Guidelines Affordable Housing Production Program monthly housing costs and the financinq terms listed above). The lending criteria used by the private lender must be reasonable and customary and shall be subject to review and approval by the City Housing Division prior to completion of the purchase transaction. Moreover, any purchase price for an affordable unit underwritten with a ^� te-of less-than Tscent -or-a- back -end ratio of more than 41 percent (the maximum generally required by the secondary mortgage market) will also require review and reasonable approval by the City prior to completion of the purchase transaction. S. Re -Sale of an Affordable Unit to a 1. First Right of Refusal to the City Throughout the 55 -year period of the Agreement Imposing Restrictions on Real Property, the City shall have the first opportunity to purchase affordable for -sale units created pursuant to the On-Site Affordable Unit Option or the Off -Site Affordable Unit Option ("Option, to Purchase "). Owners wishing to sell their units shall notify the City in writing at least 60 days before the unit is offered for sale to another qualifying party. The seller shall "ensure that the unit is clean, in good repair and is available to be shownto prospective buyers. Any Option - related time periods in favor of the City shall be tolled until' these conditions are met to the City's The City shall have 60 days'to notify the seller of its intent to exercise the Option to Purchase, either by City purchase, by its designee (e.g., a non - profit affordable housing' developer), or by referral of a qualified moderate - income buyer. (See below for the method for calculating the subsequent purchase price.) The-G4--Gr s e IN Administrative Guidelines Affordable Housing Production Program In the event that the City does not exercise the Option to Purchase, or an offer to purchase by the City or a qualified buyer is not accepted by the seller, wit ffer -the Option shall terminate and the owner may sell the unit to any income qualifying pattVbuyer at a price as—s� accept an offer by an income qualified b shall be divided between seller and transactions in Santa Monica at the 2. The resale price restriction shall be calculated using the 3. Continuo Each purcn form accept. as the, purch for a homeo, the unit is n( C. Subordination er shall net-refonly Closing costs is customary for like real estate escrow is that the price for resale of the affordable unit forth in Section 6A. The rdable unit shall certify, prior to the close of escrow, in a that the unit is being purchased and shall be maintained residence. Failure of the purchaser to maintain eligibility ion from property tax shall be construed as evidence that residence of the purchaser. At the request of the qualifying household's lender, the City may subordinate the foregoing income eligibility and resale price restrictions to a first Deed of Trust at the time of purchase, provided that the Deed of Trust does not exceed the purchase price of the unit. Administrative Guidelines Affordable Housing Production Program W D. Default and Foreclosure A Request for Notice of Default shall be recorded along with the Agreement Imposing Restrictions on Real Property. The Agreement will provide that any Notice of Default will constitute an owner's Notice of Intent to Sell, and that the City may exercise its Option to Purchase. In the event that the City does not exercise its Option and the unit is foreclosed upon, proceeds of the foreclosure sale shall be used first to any surplus proceeds, up to the amount that the owner ti been no foreclosure, shall be paid to the owner. The rerr shall be paid to the City for deposit into the Citywide Afforc E. Distribution of Insurance and Condemnation Prc In the event that the unit is destroyed and insurance'pr< income household owner instead of being used to rebui the homeowners' association and distribution of the members, including the owner, a, surplus remaining aft( be distributed as set forth above with respect to default 19 itisfy the lender's lien(s), and akl.have received had there ninglbalance of any surplus ble Housing Trust Fund. are distributed to the low- or in the event of liquidation of gets of the association to the of encumbrances shall foreclosure. Administrative Guidelines Affordable Housing Production Program M1 /.. `1 Per Chapter 9.56, multi - family project applicants who have opted to satisfy the affordable housing obligation through the on -site or off -site option are required to fill vacant affordable units by selecting income - eligible tenants from a City - developed list of income - qualified households, except if there are no qualified households on the City- developed list or if the project applicant is developing ownership projects of 4 or more' units in the City's multi -. family residential zones. Under these exceptions, the project applicant may choose themselves to select income - qualified households'which shall be subject to eligibility certification by the City. This section establishes priorities for ,eligibility to occupy On -Site Affordable Units, describes categories of persons i the procedures whereby the City list of eligible tenants. A. Priority House' In establishina the ng priorities: Units, and outlines maintain, and update the occupy affordable units, the Housing Persons who ,>' have been permanently displaced or face permanent displacement from their housing units in Santa Monica as.a result of any of the followinq: Aa) Ellis Act, owner - occupancy, or removal permit eviction 8b) Earthquake, fire, flood, or other natural disaster Qc) Funding reductions in Santa Monica housing voucher assistance programs Oki] Administrative Guidelines Affordable Housing Production Program DO Governmental Action, such as Code enforcement Ee) Closure of a mobile home park 2) Second Priority Persons who are: Aa) Residents of Santa Monica or Sa) Working in Santa Monica at least>36 hours B. Persons Ineligible to Occupy an Affordable Unit Chapter 9.56 (see § 9.56.110(c)) specifically Aisqualifies the following categories of persons from occupying On -Site Affordable Units: All employees and officials of the City or its agencies; authorities, or commissions who have, by virtue of their position, policy- making authority or influence over the implementation of the Affordable Housing Production Program, as well as the immediate relatives of employees of such City employees and officials. - The immediate relatives of the applicant or owner, including spouse, child, parent, grandparent, brother, sister, father -in -law, mother -in -law, son -in -law, daughter -in- law, aunt, uncle, niece, nephew, sister -in -law, and brother -in -law. Administrative Guidelines Affordable Housing Production Program 21 C. Establishment, Maintenance, and Update of Income - Qualified Tenants and Purchasers List The Housing Division shall be responsible for preparing and maintaining an Eligibility List for this program and shall follow these Guidelines for preparing, maintaining, and updating the Eligibility List. Subject to the requirements below, the establishment, maintenance and update of the Eligibility List shall be generally modeled after the Housing Authority Admir retaining the authority to adjust these p program. 1) Public Noticing Procedures To create the Eligibility List, the Ho 'Ian with the Housing Division as appropriate for this local shall publish notices in newspapers circulated widely in Santa Monica; including newspapers that reach minority communities. At least one notice shall be published in a Spanish - language newspaper of general circulation. Examples of appropriate newspapers include the,Santa Monica Daily Press, L.A. Times, La Opinion, and The Sentinel. The notices should briefly explain what affordable housing is, state the applicable income requirements, indicate how to apply forthe Eligibility List, state when ,the application period Ir opens and closes, indicate priorities for eligible occupants, and provide a telephone number for questions. ons may;7equire name, address, telephone number, household size, date of birth, information relevant to program priorities, and applicant's Sig 2) Creating the Eligibility List The Housing Division shall create an Eligibility List using the information provided on the applications received, including name, household size, income, age, residency, place of employment (if applicable), priority status, and any other relevant information. Additionally, the Eligibility List will include households on Administrative Guidelines Affordable Housing Production Program 22 any existing waiting list who indicated their intent to be included in the Eligibility List after being contacted by the Housing Division. Households will be drawn from the Eligibility List as affordable units become available or in anticipation of affordable units becoming available in the near future and shall be income qualified for use in referrals for available affordable units. Additionally, if the number of households on the Eligibility List households for any income category (i.e., Housing Division will publicly notice the re -a protocols described in Section 7 -C(1) abov 3) Eligibility List and Referral Proc( Each time affordable units become Housing Division shall to less than 300 Low or Moderate), the ibility List using the occupancy, the owner and the Aa) At least 90 days prior, to issuance of a Certificate of Occupancy by the City for newly developed units, or'''within 5 business days of notice of tenant vacation in existing developments, owners shall notify the City of the number and type (low- /mod- income, number of bedrooms, ownership or rental) of Bb) Within 20, business. days of notice by the owner, the City shall provide the "owner with a Referral Form, for each household drawn from the Eligibility List, and provide at least three names for each unit available. Additional names, may be provided to the owner upon request, subject to availability. Cc) Owners shall directly contact the persons on the Referral Forms provided by the City. Owners shall give applicants at least 5 business days to submit a completed application. Owners who are not able to fill vacant units from the Referral Forms provided may request additional names from the City. Administrative Guidelines Affordable Housing Production Program 23 Additional names will be provided within 5 business days, subject to availability. Bd) Owners shall conduct all further screening and selection of applicants. All applicable State Fair Housing laws must be observed. Ee) Candidates on the City's Eligibility List may be referred up to a maximum of five times. After the fifth referral, candidate names will be removed from the Eligibility List. 4) Updating the Eligibility List Aa) Periodic Update: The; Eligibility List shat be periodically updated at least every two years. Letters shall be sent to all households on the Eligibility List requesting verification of alCinformation, including name, address, place of residency, place of, employment -(if applicable), and continued interest in staying,,'on the list. Eligibility List, households shall be given two weeks to respond. At the end of the two week period, the names of households who have failed to respond shall be taken off the Eligibility List. The Eligibility List shall ahso, be updated to incorporate any changes in status (place of residency, eligibility for priority status, etc.) for each applicant. Bb) Emergency Additions to Eligibility List: At any time, even if the Eligibility List is closed, persons displaced from Santa Monica housing as set forth in Section 7 -A(1) of these Guidelines (i.e., "first- priority" households) will result in the automatic addition of that household to the Eligibility List with the applicable priority. Administrative Guidelines Affordable Housing Production Program Nzl GO The City will provide a Referral Form to the owner for each household selected from the Eligibility List. The owner shall complete the Referral Form indicating whether a unit was offered to the household and whetherthe unit was accepted or refused. A sample Referral Form is provided in Attachment 4 -13. If a unit was not offered because of a poor credit history or for any other reason, the owner will note this as well. The City will incorporate this information into the Eligibility List:, fad) Households on the City's Elic for which they qualify. For exarr be referred for vacancies in m( City's Eligibility List must report Santa Monica residency, employ Housing Division within 1O, days 5) Persons on the C Any disclose. In tE the income of ;twill be referred only for those units Jerate income households will only income units. Households on the 3nges to address, household size, Santa Monica, and /or, income to the )n Income from Other Sources Eligibility,; List must report income from all sources. ity's Eligibility List receiving support, including tuition and /or, substantial gifts, and /or any household who upon the tax return of another individual must so the income of the other will be considered along with old in determining eligibility. 6) ,Automatic Removal from Eligibility List Applicant` names will be removed immediately from the Eligibility List for: Aa) Failure to appear for a scheduled qualification interview or prior to the interview time contact the Housing Division to arrange an alternate time or date, or; Bb) More than two refusals of offered units, or; Administrative Guidelines Affordable Housing Production Program 25 Oc) Fraudulent statements on eligibility documentation, in qualification interview(s), or Informal Review, or; 8d) Failure to disclose dependent status or receipt of substantial support, or; €e) Acceptance of an affordable unit stemming Households whose names are removed from their names removed from the Referral Form i Households whose names are removed from t by mail at the address which they have supp removal will be specified as part of the notificE 7) Appeal Process Aa) Right to Appeal The decision by the Referral Form_mav be a Referral. Eligibility List will also have i which their names appear. :ligibilitiy,List shall be notified to the City: ,1_ The reason for the Eligibility List or from a must be in writing and delivered to the Housing Division in person or by first class mail, by the close of the business day,`no later than 10 business days from the date of the Housing' Division's notification of removal from the Eligibility List. nformal Review Upon receipt.. of an appeal in writing, the Housing Division shall conduct an Informal Review. The Housing Division will schedule an Informal Review to place within 10 days of receipt of the appeal. Once the Informal Review the appellant may reschedule only upon showing "good cause," efined as an unavoidable conflict seriously affecting the health, safety or welfare of the Appellant or his /her family. Oc) Failure of Appellant to Appear for Informal Review If the appellant does not appear at a scheduled Informal Review and has not rescheduled the Informal Review in advance, the appellant must contact the Administrative Guidelines Affordable Housing Production Program 26 M Housing Division within two working days. The Housing Division shall reschedule the Informal Review only if the appellant's absence was caused by medical emergency or incarceration. In this event, the Informal Review may be rescheduled only once. 9d) Conduct of the Informal Review The informal review must be conducted by a person other than the one who made or approved the decision under review, or a subordinate of this person. The Appellant must be provided an opportunity to present written or oral objections to the decision to remove them from the Eligibility List and both the Appellant and the Housinc information pertinent to the issue €e) Notification of the The Housina.Division the admi This a right to present any Review. \ppellant within 14 days of the decision ing an explanation of the decision and i shall be final and not subject to further IMI MN MMM9tFMMI 19 TenantlncomeIncreases If after moving into an affordable unit the tenant's income eventually exceeds the income limit for the unit, the tenant may remain in the unit as long as his/her income does not exceed 140% of the income limit for the unit. 27 Administrative Guidelines Affordable Housing Production Program However, if the tenant's income exceeds 140 %d of the income limit for the unit, the following shall apply, depending upon the income mix of the development: a) For Developments that are All Low - Income: If a tenant's income exceeds 140% of the income limit for the low income unit but remains within the Program limit for a moderate - income unit, the tenant may remain in the unit and his /her name shall be moved automatically to the top of the Waiting List for the next available moderate - income unit of the same size or larger in the City. As long as the tenant's income" does not exceed the program limits for a moderate income unit, the tenant may remain in the low income until the next moderate income affordable unit of an appropriate size becomes available. Once the tenant is offered tenancy in a moderate - income unit, if the tenant does not accept the offer, then the tenant must move out of the low income unit with 90 days of the offer of the moderate- income unit. ie tenant's income exceeds the program limits for a it at any time during his /her tenancy in the low- income be given one year's notice to vacate the unit. If a tenant's income exceeds 140% of the his /her unit ( "original unit ") but does not exceed the income limits of other units in the development, the tenant may remain in the original unit as long as a) the income limit for the original unit is re- designated for an appropriate higher income category applicable to another unit in the development, and b) the next vacant higher income unit in the development is re- designated for the same lower income category applicable to the original unit. Administrative Guidelines Affordable Housing Production Program I0 *1 Notwithstanding, if the tenant's income exceeds 140% the program limits for all affordable units in the mixed income development and also exceeds the program limits for a moderate income affordable unit, the tenant shall be given one year's notice to vacate the unit. If the tenant's income exceeds the program limits for the original unit by 140 %, and if there are no units designated for a higher income category within the development which may be substituted for the original unit, the tenant °may remain in the original unit and the tenant's rent may be raised to market rate. However, the next vacant market rate unit in the development must be re- designated for the same income limit formerly residing in a moderate -inc tenant may.remain_in the 1 ro- for I to the original unit. If the income of a tenant limit for the unit, the as his /her income does not exceed nit. However, once the tenant's income limit, the tenant shall be given one a r affordable r Administrative Guidelines Affordable Housing Production Program 29 within the subieet proe, then the tenant may be allowed to move to that unit subject to Section 7 -D.3 below. 3) Property Owner to Pay for Relocation Administrative Guidelines Affordable Housing Production Program 01] The AHPP authorizes a project applicant to request an adjustment or waiver of the AHPP based on a showing that applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property. To receive an adjustment or waiver, the applicant Director of Housing and Economic Development,, .c applicant files a multi - family project application. .1 presenting substantial evidence to support the requi and legal basis for the claim, including all supporting In making a determination on an Chapter, the Director of Housing and may assume each of (1) The applicant? is subject to the afford (2) The applicant will benefit from the and the Citv's Municipal Code: an application to the , at the time the applicant bears, the burden of set forth in detail the factual docume the requirements of this City Council on appeal, housing requirement of this Chapter; incentives set forth in this Chapter (3) The applicant will be obligated to provide the most economical affordable housing units feasible in terms of construction, design, location and tenure. The Director of Housing and Economic Development must make a written decision within ninety days after a complete application is filed. The Director's decision may be appealed to the City Council if such appeal is filed within fourteen consecutive calendar days from the date that the decision. 31 Administrative Guidelines Affordable Housing Production Program i If the Director of Housing and Economic Development, or City Council on appeal, upon legal advice provided by or at the behest of the City Attorney, determines that applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property, the affordable housing requirements shall be adjusted or waived to reduce the of the extent necessary to avoid an unconstitutional result. granted, any change in the use within the project shall inva If the Director, or City Council on appeal, determines that r or California Constitutions would occur requirements of this Chapter remain fully [The 32 vio plication under this Chapter to justment or waiver is adjustment or waiver. n of the United States >f this Chapter, the Administrative Guidelines Affordable Housing Production Program 1 -A 1 -B 2 -A 2 -B 3 -A 3 -B 3 -C 3 -D 3 -E 4 -A 4 -B 01m, Municipal Code Chapter 9.56 (Subject to Amendments) AHPP Options Comparison Table Fee Adjustment Methodology Current Base Fees for Apartment and Condominium Projects Annually) Affordable Units Table - Condominium Projects w /4+ Units in (Adjusted Development Incentives Table Very Low, Low and Moderate Income Levels (Adjusted Annually) Maximum Rents (Adjusted Annually) Sample of Deed Restrictions . Sample Application for Affordable Housing Waiting List Referral Status Form ` ly Zones Administrative Guidelines Affordable Housing Production Program 33 FAl a VTAalryIAUKIF11 Municipal Code Chapter 9.56 Chapter 9.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.020 Definitions. The following words or phrases as used in this Chapter shall have the following meanings: multi - family is affordable luirements of mg- standing A state, and market rate id the impact y's residents i the regional d by Ord. No. Affordable Housing Fee. A fee paid to the City by a multi - family project applicant pursuant to Section 9.56.070 of this Chapter to assist the City in the production of housing affordable to very low -, low -, and moderate - income households. Attachment 1 -A: Page 1 Administrative Guidelines Affordable Housing Production Program Affordable Housing Unit. A housing unit developed by a multi - family project applicant pursuant to Section 9.56.050 or 9.56.060 of this Chapter which will be affordable to very low -, low -, or moderate - income households. Affordable Housing Unit Development Cost. The City's average cost to to low- and moderate income households. Dwelling Unit. One or more rooms, designed, occupied or quarters, with full cooking, sleeping and bathroom facilities for „the exclus Dwelling unit shall also include single -room occupancy units as defined in Section 9.04.02.030.790. Floor Area. Floor area as defined in Santa Monica HUD. The United States Department Income Eligibility. The dependents, income of a household income. "Low, ". ,"Very Low," and "M on the United States Departr person household in the Los categories are: "low- income” of the area median): and "m( shall be made by ual Urban a unit of housing affordable pancy as separate living e. of a single household. Monica Municipal Code 9.04.02.030.315. or its successor. size and number of and all other sources of in the Santa Monica Zoning Ordinance as a ne Levels. Income levels determined periodically by the City based Ig and Urban Development (HUD) estimate of income for a four - 1 Beach Primary Metropolitan Statistical Area. The major income or less of the area median), "very low- income" (fifty percent or less e" (one hundred percent or less of the area median). Adjustment size as established by the City. Market Rate Unit. A dwelling unit as to which the rental rate or sales price is not restricted by this Chapter. Maximum Affordable Rent. A monthly housing charge which does not exceed one - twelfth of thirty percent of the maximum very low -, low -, and moderate - income levels as defined in this Chapter and adopted each year by the City. This charge shall represent full consideration for housing services and amenities as provided to market rate dwelling units in the project, whether or not occupants of market rate dwelling units pay Administrative Guidelines Affordable Housing Production Program Attachment 1 -A: Page 2 separate charges for such services and amenities. Housing services and common area amenities include, but are not limited to, the following: parking, use of common facilities including pools or health spas, and utilities if the project is master - metered. Notwithstanding the foregoing, utility charges, to the extent individually metered for each unit in the project, may be passed through or billed directly to the occupants of affordable housing units in the project in addition to maximum allowable rents collected for those affordable housing units. Multi- family Project. A multi - family residential development, lot limited to apartments, condominiums, townhouses or the multi - family residential component of a mixed use project, for which City permits and approvals are sought. Multi- family Project Applicant. Any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities which seeks City development permits or approvals to develop a multi - family project. Multi- family Residential District. Any district designated in family residential district. Parcel. Parcel as defined Vacant Parcel. A of August 20, 1998 or demolished pursuant to (pad), •. 9.56.030 Applicability of (a) The obligatk development applicat in Santa Monica � a multi - family, resi had a residential iolition order of th' a Municipal Code Monica Zoning Ordinance as a multi- that has no residential structure located on it as ted on it on that date which was subsequently iolition of structures shall be permitted except in 10.16 et seq. (Added by Ord. No. 1918CCS § 1 No. 1926CCS § 1, adopted 10/13/98; Ord. No. 2174CCS § 2, 6/13/06) shed by this Chapter shall apply to each multi - family project for which a =rmined complete on or after May 25, 2006 involving the construction of two or more market rate units. No building permit shall be issued for any multi - family project unless such construction has been approved in accordance with the standards and procedures provided for by this Chapter. Notwithstanding the above, a multi - family rental housing project thatwill be developed by a nonprofit housing provider receiving financial assistance through one of the City's housing trust fund programs shall not be subject to the requirements of this Chapter so long as the project is an affordable housing project meeting the requirements of Santa Monica Municipal Code Section 9.04.02.030.065 and the project's affordability obligations will be secured by a regulatory agreement, memorandum of agreement, or recorded covenant with the City for a minimum period of 55 years. Administrative Guidelines Affordable Housing Production Program Attachment 1 -A: Page 3 (b) Multi- family projects for which a development application was determined completed prior to May 25, 2006 shall be subject to the provisions of Santa Monica Municipal Code Section 9.56.010 et seq., as they existed on the date the application for the project was determined complete. (c) A designated landmark building or contributing structure to an adopted Historic District that is retained and preserved on -site as part of a multi - family project shall not be considered or included in assessing any of the requirements under this Chapter. (Added by Ord. No. 1918CCS § 1_(part),adopted 7/21/98; amended by Ord. No. 2191CCS § 2, adopted 6/13/06; Ord. No. 2206CCS § 5, adopted 10/3/06; Ord. No. 2285CCS § 1, adopted 3/24/09) 9.56.040 Affordable housing obligation. All multi - family project applicants shall comply manner: (a) Multi- family project applicants for in residential districts shall choose one of the (1) Providing affordable (2) Providing affordable' (b) 1n addition applicants may also (1) Paying:. an a' (2) Acquiring lai 0 units fee in M requirements of this following ip projects of four or more units in multi - family ns: ce with Section 9.56.050, ce with Section 9.56.060; (a)(1) and (2), all other multi - family project Section 9.56.070; in accordance with Section 9.56.080. will not be determined complete until the applicant has submitted a written proposal which'demonstrates the manner in which the requirements of this Chapter will be met. (Added by Ord. No. 1918CCS §,1 (part), adopted 7121/98; amended by Ord. No. 2191CCS § 3, adopted 6/13106) 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 Administrative Guidelines Affordable Housing Production Program Attachment 1 -A: Page 4 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). (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 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 Industrial /Commercial District. (d) Any fractional affordable housing unit that result shall be treated as a whole affordable housing unit'(i.e., larger integer) and that affordable housing unit t that fractional unit only affordable units with thre make available a list ,c units also be built pu than 0.75 can be to Section 9.56. bedrooms. The f low -, and mo income households in an ithe formulas of this Section that is 0.75 or more �sulting fraction shall be rounded up to the next the provisions of this Section. Any fractional by the payment of an affordable housing fee for or by constructing all the mandatory on -site tnd Community Development Department shall mme levels adjusted for household size, the adjusted by numberof bedrooms, and the minimum number of very pica) sizes of multi - family projects, which list shall be updated (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 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 Administrative Guidelines Affordable Housing Production Program Attachment 1 -A: Page 5 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 Affordable housing units in multi - family projects of one throughout the multi - family project to prevent undue con (f) All affordable housing units in a multi - family proje€ constructed concurrently with the construction of market rate project. (g) On -site affordable affordable housing units n shall comply with require restrictions as establishes income - qualified househo (h) Each''multi -famil identifying which units e vacancy information for occupying each affordat City staff. (i) A multi - family pro must at units g sales the City units or more must, be evenly disbursed of affordable hase of a multi - family project shall be the multi - family project or phase of that In ownership projects, these ble housing ownership units monthly payment, and limited equity and resale it to ensure that subsequent purchasers are also )roject applicant, or his /her successor, shall submit an annual report to the City affordable units, the monthly rent (or total housing cost if an ownership unit), ach affordable unit for the prior year, verification of income of the household unit throughout the prior year, and such other information as may be required by 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. A multi - 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. Q) All residential developments providing affordable housing on -site pursuant to the provisions of this Section shall receive priority building department plan check processing bywhich housing developments shall Administrative Guidelines Affordable Housing Production Program Attachment 1 -A: Page 6 have plan check review in advance of other pending developments to the extent authorized by law. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amended by Ord. No. 2191CCS § 4, adopted 6/13106; Ord. No. 2350CCS § 7, adopted 2/22/11) 9.56.060 Off -site option. The following requirements must be met to satisfy the off -site option of this. Chapter: (a) The multi - family project applicant for ownership projects of four or more units in multi - family residential districts shall agree to construct twenty -five percent more affordable housing, units than number of affordable housing units required by Section 9.56.050(a) and (b). (b) For all other multi - family project applicants, the applicants hall agree to construct the same number of affordable housing units as specified in Section 9.56.( (c) The multi - family project applicant shall identify an alte the project applicant either owns or has site control over (e.g., subject to City review to ensure that the and projects. (d) The off -site units (e) The off -site units shall satisfy (f) the within ate site suitable for residential housing which rchase agreement, option to purchase, lease) is consistentwith the City's housing objectives of the market rate units. (d) through 0) of Section 9.56.050. of any affordable housing obligation that market rate units would otherwise be subject to pursuant to this (g) Exceptions to the location of the off -site units specified in this Section maybe granted by the Planning Commission on a case -by -case basis upon a showing by the multi - family project applicant, based upon substantial evidence, that the location of off -site units in a location different from that specified in this Section better accomplishes the goals of this Chapter, including maximizing affordable housing production and dispersing affordable housing throughout the City. (h) The Housing Division of the Resource Management Department shall prepare administrative guidelines to implement this Section. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amended by Ord. No. 2191CCS § 5, adopted 6/13/06) Administrative Guidelines Affordable Housing Production Program Attachment 1 -A: Page 7 9.56.070 Affordable housing fee. A multi - family project applicant eligible to meet the affordable housing obligations established by this Chapter by paying an affordable housing fee shall pay the fee in accordance with the following requirements: (a) An affordable housing fee may be paid in accordance with the following formulas: (1) Multi- family projects in Multi- family Residential Districts: Affordable housing unit base fee x floor area of multi - family (2) Multi- family projects in Multi- family Residential Districts on vacant parcels: Affordable housing unit base fee x floor area of multi - family project,x seventy -five percent; (3) Multi - family projects in Industrial/Commercial Districts on parcels that are either not already developed with multi - family housing or are already developed with multi - family housing, but the multi- family project preserves the existing multi - family housing ore Category C,removal permit has been obtained for the existing multi - family housing: Affordable housing unit base fee x (4) Multi- family projects with established in Section 9.56:050( City's affordable housing unit (b) For purposes of this Sect the City Council Commencing o housing unit base fee shall be ad July 1, 2 of these the affordable the results of usino fee that housing unit base uses x fifty percent. 0.75 based on the formula cost x fractional percentage. unit base fee shall be established by resolution of luly,1, 2006 and on July 1st of each fiscal year thereafter, the affordable ,ted based on changes in construction costs and land costs. No later than fryfive year period thereafter, the Citywill conducta comprehensive study ; omprehensive study shall be reported to the City Council. The amount of multi - family project applicant must pay shall be based on the affordable effect at the time that the affordable housing fee is paid to the City. (c) For purposes of this Section, the City's affordable housing unit development cost shall be established by resolution of the City Council. Commencing on July 1, 2007 and on July 1st of each fiscal year thereafter, the City's affordable housing unit development cost shall be adjusted based on changes in construction costs and land costs. No later than July 1, 2015 and approximately every five year period thereafter, the City will conduct a comprehensive study of these fees and the results of the comprehensive study shall be reported to the City Council. The affordable housing fee that the multi - family project applicant must pay shall be based on the affordable housing unit development cost resolution in effect at the time of payment to the City. Administrative Guidelines Affordable Housing Production Program Attachment 1 -A: Page 8 (d) The amount of the affordable housing unit base fee may vary by product type (apartment or condominium) and shall reflect, among other factors, the relationship between new market rate multi - family development and the need for affordable housing. (e) The affordable housing fee shall be paid in full to the City prior to the City granting any approval for the occupancy of the project, but no earlier than the time of building permit issuance. (f) The City shall deposit any payment made pursuant to this Section in a reserve account separate from the General Fund to be used only for development of very low- and low-income housing, administrative costs related to the production of this housing, and monitoring and evaluation of this affordable housing production program. Any monies collected and interest accrued pursuant to this Chapter shall be committed within five years after the payment of such fees or the approval of the`multi- family project, whichever occurs later. Funds that have not been appropriated within this five -year period shall be refunded on a pro rata share to those multi - family project applicants who have paid fees during the period: Expenditures and commitments of funds shall be reported to the City Council annually as part of the City budget process. (g) An affordable housing fee payment pursuant to this Section shalt not be considered provision of affordable housing units for purposes of determining whether the multi family project qualifies for a density bonus pursuant to Government Code Section 65915.,"-(Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; amended by Ord..1926CCS § "2, adopted 10/13/98; Ord. No. 2174CCS § 3, adopted 11/8/05; Ord. No. 2191CCS § 6, adopted 6/13/06; Ord. No. 2363CCS §), adopted 6/28/11) a.oti.uau Lana acquisition.,-, Amult% family project applicant may meet the affordable housing obligations established bythis Chapter by making an irrevocable offer: (a) dedicating land to the City or a non - profit housing provider, (b) selling of land to the City or a non- profit housing provider at below market value, or (c) optioning of land on behalf of the City or a non - profit housing provider. Each of these options must be for a value at least equivalent to the affordable housing obligation otherwise required pursuant to this Section. The multi - family project applicant must identify the land at the time that the`development application is filed with the City. Any land offered pursuant to this Section must be located within one - quarter mile radius of the market rate units unless the multi - family project applicant demonstrates that locating the land outside of this radius better accomplishes the goals of this Chapter, including maximizing affordable housing production and dispersing affordable housing throughout the City. The City may approve, conditionally approve or reject such offers subject to administrative guidelines to be prepared by the Housing Division of the Resource Management Department. If the City rejects such offer, the multi - family project applicant shall be required to meet the affordable housing obligation by other means set forth in this Chapter. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98) Administrative Guidelines Affordable Housing Production Program Attachment 1 -A: Page 9 9.56.090 Fee waivers. The Condominium and Cooperative Tax described in Section 6.76.010 of the Santa Monica Municipal Code and the Park and Recreation Facilities Tax established in Chapter 6.80 of Article 6 of the Santa Monica Municipal Code shall be waived for required affordable housing units and for low, very low and moderate income dwelling units developed by the City or its designee using affordable housing fees. However, any multi- family project applicant who elects to pay an affordable housing fee shall not be eligible for any fee waiver under this Section. (Added by Ord. No. 1918CCS § 1 (part), adopted 7 121 /98;,6mended by Ord. No. 2285CCS § 2, adopted 3/24/09) 9.56.100 Pricing requirements for affordable housing The City Council shall, by resolution, on an annual affordable purchase prices for affordable housing units affordable rents shall be set at rates such that qualified does not exceed thirty percent of the gro the median income, that qualified occup thirty percent of the gross monthly hot, income and that qualified occupants for percent of the gross monthly household income. Such maximum affordable ours income units pay t property mortgage gross monthly hou very low -ii insurance, cent'ofthe asis set maximum affordable rents and maximum djusted by the number of bedrooms. Such maximum ccupents.for IoW- income units pay monthly rent that ehold income for households earning sixty percentof income units pay monthly rent that does not exceed or households earning fifty percent of the median ie units pay monthly rent that does not exceed thirty fie for households earning one hundred percent of the median price shall beset at rates such that qualified occupants for low sts (mortgage payment, property taxes, homeowners' insurance, ^s' association fees) that do not exceed thirty -eight percent of the eholds earning sixty percent of the median income, that qualified total monthly housing costs (mortgage payment. property taxes, ge insurance, homeowners' association fees) that do not exceed income for households earning fifty percent of the median income and that qualified occupants for moderate - income units pay total monthly housing costs (mortgage payment. property taxes, homeowners' insurance, property mortgage insurance, homeowners' association fees) that do not exceed thirty -eight percent of the gross monthly household income for households earning one hundred percent ofi the ' median income. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21198; amended by Ord. No. 2285CCS § 3, adopted 3/24/09) 9.56.110 Eligibility requirements. (a) Only low- income, very low- income and moderate income households shall be eligible to occupy or own and occupy affordable housing units. The City shall develop a list of income - qualified households. Multi- family project applicants shall be required to select households from the City - developed list of income - qualified households, except applicants of ownership projects of 4 or more units in the City's multi - family residential Administrative Guidelines Affordable Housing Production Program Attachment 1 -A: Page 10 zones may themselves select income - qualified households which shall be subject to eligibility certification by the City. (b) The City shall develop administrative guidelines for the tenant and purchaser selection process detailed in this Section, which shall establish, at a minimum, the timing by which affordable housing units in a project must be leased or sold and occupied, both initially after issuance of the certificate of occupancy for the project and upon subsequent vacancies in the affordable housing unit. The guidelines may also establish priorities for income - qualified tenants. (c) The following individuals, by virtue of their affordable housing unit: (1) All employees and officials of the City of Santa Monica or its who have, by the authority of their position, policy- making auti- Chapter and the immediate relatives and employees of such (2) The immediate relatives of the brother, sister, father -in -law, mother -ir law, and brother -in -law. 2285CCS § 4, 9.56.120 Relation to Very low - income, project, pursuant to re the satisfaction of this not limited to, the income New inclusionary, units rel count towards the'lfsatisfa amended by Ord. 9.56.130 Deed restrictions. No. 1918CCS ;§ 1 (part), to occupy an over the implementation of this and officials; ;hildren, parents, grandparents, , uncle, niece, nephew, sister -in- 7/21/98; amended by Ord. No. nit moderate-income dwelling units developed as part of a market rate auirements of the Santa Monica Rent Control Board, shall count towards ly otherwise meet applicable requirements for this Chapter including, but requirements, deed restriction requirements, and pricing requirements. the Rent Control Board which meet the standards of this Chapter shall lis Chapter. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98; 5, adopted 3/24/09) Prior to issuance of a building permit for a project meeting the requirements of this Chapter by providing affordable units on -site or off -site, the multi - family project applicant shall submit deed restrictions or other legal instruments setting forth the obligation of the applicant under this Chapter for City review and approval. Such restrictions shall be effective for at least fifty -five years. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98) Administrative Guidelines Affordable Housing Production Program - Attachment 1 -A: Page 11 9.56.140 Enforcement. No building permit or occupancy permit shall be issued, nor any development approval granted, for a project which is not exempt and does not meet the requirement of this Chapter. All affordable housing units shall be rented or owned in accordance with this Chapter. (Added by Ord. No. 1918CCS § 1 (part), adopted 7/21/98) 9.56.150 Annual report. The Housing Division of the Resource Management Department shall submita report to the City Council on an annual basis which shall contain information concerning the implementation of this Chapter. This report shall also detail the projects that have received planning approval during the previous year and the manner in which the provisions of this Chapter were satisfied. This report shall further assess whether the provisions of Proposition R have been met and whether changes to this Chapter or its implementation procedures are warranted. In the event the provisions of Proposition R have not been met, the City Council shall take such action as is necessary to ensure that the provisions will be met (n the future. This action may include, but not be limited to, amending the provisions of this'Chapter or its implementation. (Added by Ord. No. 1918CCS § 1 (part), adopted 7 /21/98) _ 9.56.160 Principles and guidelines. (a) In addition to the administrative guidelines specifically required by other provisions of this Chapter, the City Manager or designee shall be the designated authority to develop and implement rules and regulations pertaining to this Chapter; to enter into recorded agreements with multi - family project applicants, and to take other appropriate steps necessary to assure that the required affordable housing units are provided and are occupied by very low- income, low- income and moderate- income households. (b) Within one year from the passage of this Chapter, administrative rules and regulations pertaining to this Chaptershall be brought before the City Council for adoption. (Added by Ord. No. 1918CCS § 1 (part), adopted 7 /21 /98;,amended by Ord, No. 2285CCS § 6, adopted 3/24109) 9.56.170 (a) A multi - family project applicant may request that the requirements of this Chapter be adjusted or waived based on a showing that applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property. (b) To receive an adjustment or waiver, the applicant must submit an application to the Director of Resource Management, or his /her designee, at the time the applicant files a multi - family project application. The applicant shall bear the burden of presenting substantial evidence to support the request and set forth in detail the factual and legal basis for the claim, including all supporting technical documentation. Administrative Guidelines Affordable Housing Production Program Attachment 1 -A: Page 12 (c) In making a determination on an application to adjustor waive the requirements of this Chapter, the Director of Resource Management, or City Council on appeal, may assume each of the following when applicable: (1) The applicant is subject to the affordable housing requirement of this Chapter; (2) The applicant will benefit from the inclusionary incentives set forth in this Chapter and the City's Municipal Code; (3) The applicant will be obligated to provide the most economical affordable housing units feasible in terms of construction, design, location and tenure. (d) The Director of Resource Management shall render a "written decision within ninety days after a complete application is filed. The Director's decision may appealed to the City Council if such appeal is filed within fourteen consecutive calendar days from the date that the decision!is made in the manner provided in Part 9.04.20.24, Sections 9.04.20.24.010 through 9.04.20.24:040 of this Code. (e) If the Director of Resource Management, or City Council on appeal, upon legal advice provided by or at the behest of the City Attorney, determines that applying the _requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property, the affordable housing requirements shall be adjusted or waived to reduce the obligations under this Chapter to the extent necessary to avoid an unconstitutional result: „If an adjustment or waiver is granted, any change in the use within the project :shall invalidate the adjustment or waiver. If the Director, or City Council on appeal, determines that no violation of the United States or California Constitutions would occur through application of this Chapter, the requirements of this Chapter remain fully applicable. (Added by Ord. No. 2174CCS § 4, adopted 11/8/05; amended by Ord. No, 2207CCS § 10, adopted 10/3/06) Administrative Guidelines Affordable Housing Production Program Attachment 1 -A: Page 13 ATTACHMENT I -E AHPP Options Comparison Table Administrative Guidelines Affordable Housing Production Program Attachment 1 -13 2 -3 ownership units in multi- family zones *; 2+ ownership units in all i 4+ ownership units in other zones multi - family zones* 2+ apartment units in any zone ® 10% of units for Very. Low 20% of units are Income �' ® 20% of units for Low affordable for4 -15 unit ON -SITE OPTION Income projects ® 100% of units for `® 25% of units are Moderate Income (for affordable for 16+ unit non - residential zones) projects e : -25% more than the OFF -SITE OPTION a Same as on- site,option required number of on- site units Current Fees AFFORDABLE $27.35%sf for apartments HOUSING FEE ** $31.94/sf for condominiums Not Applicable (adjusted annually by City Council) (effective 8/15/11; subject to annual adjustments thereafter) LAND ACQUISITION SiIVIMC 9.58.080 Not Applicable OPTION _r Administrative Guidelines Affordable Housing Production Program Attachment 1 -13 Fee Adjustment Methodology Table 1 — Affordable Housing Unit Base Fee Affordable Housing Unit Base Fee Annual Inflation Adjustment Calculations for FY 20011 -42 Land Cast lnfla6on Hard Construction Most Recent CCSM Family Rental Projects Land Cast Median Price Change sum Calculation $ 2,730,000 $ 21P Coda 2009.2010 0Condos Sold Weights Weighted Avg. 90401 -14.4% 9 2.6% -0.4% 90402 41.6% 19 5.4% -2.2% 90403 3.4% 145 41.2% 1.4% 90404 6.2% 77 21.9% 1.4% 90405 1.4% 102 29_01/6 0.4% Construction Cost lnBation 2.7% 352 100.1% 0.677 Source: MDA Dataquick(available on -line at: http:lh i.dgnews.mm/CharWAnnual- Charts /LA- Times- ChartsMIPLAT10.aspx) Constmction Cost Inflation Engineering Nevis Record's Construction Cost Index -- Los Angeles March 2010 Index Value 9,769.69 March 2011 Index Value 10,035.05 Percentage Change 2010 -2011 Source: Engineering News Record (available at http: /AW .encmnsWCtion.wMfealures/mnem /subs /mnsilndexHist.asp) Derivation of Land Cost and Construction Cost Calculation Weights 2.1 Adjusted Fees FY2010 -11 Fees Inflation Factor Uptlatetl Fees a $ Change Condos $31.28 21/ 53194 50.68 Apartments $26.79 21 / 527 35 $0.58 For information Only: Consumer Price Index Change, LA -RN -Or Co., All Urban Consumers, 1982 -84 = 100 Mar. 2010 Index Value 225.483 Mar. 2011 index Value - 232.241 Percentage Change Mar. 2010 -Mar. 2011 3.0% Source: US Bureau of Labor Statistics (available at: http:1Avvvi.bls.gov/cpg Prepared by. HRSA, Inc. Attachment 2 -A: Page 1 Administrative Guidelines Affordable Housing Production Program Hard Construction Most Recent CCSM Family Rental Projects Land Cast Cost sum 145814th Street $ 2,730,000 $ 6,035,559 $ 8,765,559 2602 Broadway $ 5175000 S 11199833 S 16.374.833 $ 7,905,000 $ 17,235,392 $ 25,140,392 31.4% 68.6% 100.00% Sourm: Housing Division, City of Santa Monica Inflation Factor Dedvallon Inflation Value Weight Wig. Avg. Land Value Inflation 0.6% 31.4% 0.2% Construction Cost lnBation 2.7% 68.6% liYA 2.1 Adjusted Fees FY2010 -11 Fees Inflation Factor Uptlatetl Fees a $ Change Condos $31.28 21/ 53194 50.68 Apartments $26.79 21 / 527 35 $0.58 For information Only: Consumer Price Index Change, LA -RN -Or Co., All Urban Consumers, 1982 -84 = 100 Mar. 2010 Index Value 225.483 Mar. 2011 index Value - 232.241 Percentage Change Mar. 2010 -Mar. 2011 3.0% Source: US Bureau of Labor Statistics (available at: http:1Avvvi.bls.gov/cpg Prepared by. HRSA, Inc. Attachment 2 -A: Page 1 Administrative Guidelines Affordable Housing Production Program ATTACHMENT 2 -A Fee Adjustment Methodology Table 2 — Affordable Housing Unit Development Cost Affordable Housing Development Cost Annual Inflation Adjustment Calculations for FY 2011 -12 Land Cost legation ZIP Code Median Price Change 2009 -2010 #Condos Sold Calculation Weights Welghted AVg. 90401 -14.4% 9 2.6% -0.4% 90402 41.6% 19 5.4% -2.2% 90403 3.4% 145 41.2% 1.4% 9D404 6.2% 77 21.9% 1.4% 90405 IA% 102 29.0% 0.4% 352 100.1 % 0.6% Source: MDA Dalaquick(available on - lineal: http:IAwnvdgnavrs.wmlChads/ Annual- Chads/ - Times- ChadsIZIPLAT/0.sspx) Construction Cast Inflation Engineering News Record's Construction Cost Index — Los Angeles March 2010 Index Value 9,769.69 March 2011 Index Value 10,035.05 Percentage Change 2009 -2010 Sum Source: Engineering News Record (available at hilp.IAV . encwnsimcUm. mmifealums twnew /subs/wnsllndexHist.asp) Derivation of Land Cost and CauslmcUan Cost Calculation Weights Adjusted Unit Cost FY 2010 -11 COSWnit Inflation Factor Uptlated COSUUni[e $Change Affordable Housing Development Cost $281,100 2.1% $287,003' $5,903 For miormafion Only: Consumer Price Index Change, LA- Riv -Or Co., All Urban Consumers, 1982 -84 = 100 Mar. 2010 Index Value 225.483 Ma, 2011 Index Value 232.241 Percentage Change Ma, 2010 -Mar. 2011 3.0% Source: US Bureau of Labor Statistics (available at: hilpIM1 .bisgov /cpi) Pie eyed by: HRMA Inc. Attachment 2 -A: Page 2 Administrative Guidelines Affordable Housing Production Program Hard Construction Most Recent CCSM Family Rental Projects Land Cast Cost Sum 145014th Street $ 2,730,000 $ 6,035,559 $ 8,765,559 2602 Broadway 3 5.175000 $ 11.199833 3 16.374.833 $ 7,905,000 $ 17,235,392 $ 25,140,392 m Av, 606% 100,0% Sources: Housing Division, City of Santa Monica Ingenue Factor Derivation Inflation Value Weight Wirt. Avg. Lend Value Inflation 0.6% 31.4% 0.2% Construction Cost Inflation - 21% 60.6% 1.9% Adjusted Unit Cost FY 2010 -11 COSWnit Inflation Factor Uptlated COSUUni[e $Change Affordable Housing Development Cost $281,100 2.1% $287,003' $5,903 For miormafion Only: Consumer Price Index Change, LA- Riv -Or Co., All Urban Consumers, 1982 -84 = 100 Mar. 2010 Index Value 225.483 Ma, 2011 Index Value 232.241 Percentage Change Ma, 2010 -Mar. 2011 3.0% Source: US Bureau of Labor Statistics (available at: hilpIM1 .bisgov /cpi) Pie eyed by: HRMA Inc. Attachment 2 -A: Page 2 Administrative Guidelines Affordable Housing Production Program ATTACHMENT 2 -B Current Base Fees for Apartment and Condominium Proiects Current Fee: $27.35 [adopted 6- 14 -11]. Effective August 15, 2011. FEE FOR CONDOMINIUM PROJECTS Current Fee: $31.94 [adopted 6 -14- 2011]. Effective August 15, 2011 TIMING OF FEE PAYMENT Base Fee is due prior to completion of project, but not before building permit issuance, and the amount of fee' due is based on fee 'amount in effect at time of payment. Attachment 2 -B Administrative Guidelines Affordable Housing Production Program ATTACHMENT 3 -A Affordable Housing Table for 4+ Ownership Units in Multi- Family Zones *Ownership units must be available for very low, low, or moderate income households *Rental units must be available for very low or low income households * *For fractions of 0.75 or more - round up to next whole number ** *For fractions less than 0.75 - there are 2 options: 1) Pay the fractional cost of developing the unit (based on affordable housing unit development cost) 2) Construct all mandatory affordable units with 3+ bedrooms Administrative Guidelines Affordable Housing Production Program Attachment 3 -A Number of units in project before density bonus Number of affordable units to be provided ** FRACTIONS' Fraction eligible for fee payment Fractional cost of developing a unit 2 On -site or off -site units are not mandatory. May pay affordable housing fee. 3 4 1.00 0.00 $0.00 5 1.00 0.00, , $0.00 O 6 1.00 0.40 $57,400.60 N 7 1.00 0.40 $114,801.20 CL k 8 1.00 0!60. $172,201.80 0 9 2.00 0.00 '� $0.00 10 2.00 0.00 $0.00 11 2.00 0.20 $57,400.60 v 12 2.00 0.40 $114,801.20 13 2.00 0.60 $172,201.80 14 3.00 0.00, $0.00 15 3.06\ 0:00 $0.00 16+ [# units x 250/6 [fraction < 0.751 [fraction x unit development cost] 2 On -site or off-'site units required are not mandatory May pay affordable housing fee. 3 4 Ti00 .0.00 $0.00 5 1.60 0.25 $71,750.75 ® 6 1.,00 0.50 $143,501.50 CL 04 7 2.00 0.00 $0.00 k 8 2.00 0.00 $0.00 LL 9 2.00 0.25 $71,750.75 10 2.00 0.50 $143,501.50 11, 3.00 0.00 $0.00 12 /3.00 0.00 $0.00 C) 13 3.00 0.25 $71,750.75 14 3.00 0.50 $143,501.50 15 4.00 0.00 $0.00 etc. etc. fraction < 0.75] [fraction x unit development cost] *Ownership units must be available for very low, low, or moderate income households *Rental units must be available for very low or low income households * *For fractions of 0.75 or more - round up to next whole number ** *For fractions less than 0.75 - there are 2 options: 1) Pay the fractional cost of developing the unit (based on affordable housing unit development cost) 2) Construct all mandatory affordable units with 3+ bedrooms Administrative Guidelines Affordable Housing Production Program Attachment 3 -A ATTACHMENT 3 -13 Development Incentives Density Bonus Table for Housing Developments in Residential Zones -ijmum % of project that must be affordable to be ellnible for bonus % OF UNITS THAT ARE AFFORDABLE I DENSITY BONUS" JADDITIONAL BONUS'' IVERY LOW INCOME LOW INCOME MODERATE INCOMEJ LAND DONATION FOR RESIDENTIAL ZONES 22.5% x x 6% 7% 25.0% 8% 27.5% 9% 30.0% -10% 32.5% 1 /' . 21.5% MENEUMMMENIMEM 6.0% 16.0% 11% 35.0% 12% 35.0% 23.0% 7.0% 17.0% 13% 35.0% 24.5% 8.0% 18.0% 14% 35.0% 26.0% 9.0% 19.0% 15% 35.0% 27.5% 10.0% 20.0% 16% 35.0% 29.0% 11.0% 21.0% 17% 35.0% 30.5% 12.0% 22.0% 18% 35.0% 32.0% 13.0% 23.0% 19% 35.0% 33.5% 14.0% 24.0% 20% 35.0% 35.0% 15.0% 25.0% 21% 35.0 0/4 35.0% 16.0% 26.0% 22% 35.0% 35.0% 17.0% 27.0% 23% 35,13% 35.0% 18.0% 28.0% 24% 35.0% 35.0% 19.0% 29.0% 25% 35.0% 35.0% 20.0% 30.0% 26% 35.0% 35.0% 21.0% 31.0% 27% 35.0% 35.0% 22.0% 32.0% 28% 35.0% 35.0% 23.0% 33.0% 29% 35.0% 35.0% 24.0% 34.0% 30% 35.0% 35.0% 25.0% 35.0% 31% 35.0% 35.0% 26.0% 35.0% 32% 35.0% 35.0% 27.0% 35.0% 33% 35.0% 35.0% 28.0% 35.0% 34% 35.0% 35.0% 29.0% 35.0% 35% 35.0% 35.0% 30.0% 35.0% 36% 35.0% 35.0% 31.0% 35.0% 37% 35.0% 35.0% 32.0% 35.0% 38% 35.0% 35.0% 33.0% 35.0% 39% 35.0% 35.0% 34.0% 35.0% 40% 35.0% 35.0% 35.0% 35.0% Administrative Guidelines Affordable Housing Production Program Attachment 3 -13: Page 1 11 l a 4 Development Incentives Affordable Housing Incentives and Concessions Note That: • Requests for incentives /concessions on the Menu shall not require the filing of an application for Variance, GPA, Zone Change, or any other discretionary approval. • Requests for density bonuses without incentives, with by -right incentives, and /or one or more incentives included in the Menu of Incentives /Concessions shall be reviewed by the Director of Planning or designee. Requests shall be granted unless: • The incentive /concession is not required Section 50052.5 of Health and Safety Co • There is a specific adverse impact upor environment or on any real property that in feasible method to mitigate or avoid the s development unaffordable to Moderate, L • The incentive or concession is contrary to PARKING STANDARDS When requested, the fol that has obtained a den 0 to 1 bedroom unit 2 to 3 bedroom uil 4 or more bedroom Ad the Number of Incentives/ Concessions are )vide for affordable, housing costs per for rents for the affordable units. lic health and safety, on the physical > historic sites, and for which there is no adverse impact without rendering the Very Low Income households. or Federal law. up to the nett whole number. entire housing development bled access parking: bonus may be granted up to 3 concessions /incentives based on :t that are affordable. % of units that are restricted affordable before density bonus Very Low Income Low Income Moderate Income 5% 1 10% 10% Attachment 3 -13: Page 2 Administrative Guidelines Affordable Housing Production Program ATTACHMENT 3 -B Development Incentives Affordable Housing Incentives and Concessions (coot.) The following are the incentives /concessions that a developer may request, depending on the zone. The developer may also request additional waivers and modifications not in this list. Type of Zone Menu of Incentives /Concessions that may be requested Residential Zones Side Yard Setback up to 15% deviation from one side yard setback':re'uirement' _ Parcel Covera e up to 10% deviation Rear Setback up to .'f5% deviation as long as rear yard setback is at least 5 feet Additional Waivers and Modifications Developer that seeks a density bonus may also request standards but shall show that: 1) The modification is necessary to make the 2) The development standards, even with the of precluding construction of the density b A Public Hearing shall'be held by the Plannir modifications following, the procedures for Design The Planning Commission's decision may be appi or modification of development ly feasible. would have the effect Commission to review these waivers and mpatibility Permits in SMMC 9.04.20.15.030. ed to the City Council. tlicant must submit the following with the first application for approval of a housing development: 1) Site Plan showing total number of units, number and location of affordable housing units, and number and location of density bonus units. 2) Level of affordability for'' affordable housing units and proposals for ensuring affordability. 3) Description of any requested modifications or incentives. For all waivers and modifications not on the Menu of Incentives /Concessions, applicant must demonstrate that the request will result in identifiable jinancially sufficient, and actual cost reductions. The cost of reviewing any financial data submitted by the developer, including the hiring of a consultant by the City, shall be borne by the developer. Administrative Guidelines Affordable Housing Production Program Attachment 3 -13: Page 3 ATTACHMENT 3 -C Very Low, Low and Moderate Income Levels II • Administrative Guidelines Affordable Housing Production Program Attachment 3 -C Maximum Rents NIURZT -TIM i�1"1i f MAXIMUM ALLOWABLE Unit Type Very Low' (50%0)' Low (60 %) Moderate (100 %) 0 -Bdrm $747 $896.. $1,495 1 -Bdrm $854 $1.,024.,° $1,708 2 -Bdrm $1,014. $1;216 $2,028 3 -Bdrm `x;$1,158 .� $1,389 $2,316 4 -Bdrm $1,308 i' $1,568 $2,615 Administrative Guidelines Affordable Housing Production Program Attachment 3 -D Recording Requested By: City of Santa Monica When Recorded Mail To: City of Santa Monica 1685 Main Street, Room 310 Santa Monica, CA 90401 ATTACHMENT 3 -E Sample of Deed Restriction No Recording Fee Required Government Code Section 27383 NO THIS AGREEMENT IMPOSING RESTRICTIONS ON RENTS & OCCUPANCY OF REAL PROPERTY, entered into this [_] day of [month, 20 - -], by and between the CITY OF SANTA MONICA, a Municipal Corporation (hereinafter the "City "), and [name of applicant], a [California Limited Liability Company] (hereinafter the "Developer "), is made with reference to the following: RECITALS A. Developer is the owner of certain real property located at [address] in the City of Santa Monick.in the County of Los Angeles, California (hereinafter referred to as the "Subject Property "). The subject property is more particularly described in Exhibit "A" which is attached hereto and incorporated herein by this reference. B. Developer wishes to construct [project description include # stories, building square footage, form of ownership apt. /condo etc.] (hereinafter referred to as the "Project "). The City has approved [type of application/ project # AA, DR, VAR etc] for the proposed development Project. The City issued this approval subject to conditions which are imposed for the benefit of the City, the public and surrounding landowners and without which no permit would be issued. C. [If condominium project in multi- family districts] The Project is subject to the City's Affordable Housing Production Program, Santa Monica Municipal Code Chapter Administrative Guidelines Affordable Housing Production Program Attachment 3 -E: Page 1 9.56, which requires the Project to provide either twenty percent of the total units as ownership units for moderate- income households, or as an alternative, twenty percent of the total units as rental units for low- income households if these units are provided by the applicant in accordance with Civil Code Sections 1954.52(b) and 1954.53(a)(2). The Developer has elected to meet the requirements of Chapter 9.56 by providing [ #] rental units for low- income households] on -site. The Developer is required to submit this Agreement for City review and approval which shall establish Developer's commitment to provide these affordable units for fifty -five years from the date'' of recordation. [Note: Higher on -site requirement for 16 or more units or if units provided off -site] or [If apartment project or condominium 1 Project is subject to the City's Affordable Housin< Municipal Code Chapter 9.56, which requires the Pi of the total units as rental [include "or ownersh ' very-low, low, or moderate- income households, or Developer has elected to meet the requirements „c units for [specify affordable income level anc Developer is required to submit this Agreement for establish Developer's commitment to provide these the date of recordation. NOW, THER follows: 1. and Permit for the applicable to ly ag I district] The Santa Monica rject to provide a specified percentage if condominium project] units for pay an affordable housing fee. The Chapter 9.56 by providing [ #] rental whether on -site or off - site.] The City review and approval which shall iffor"dable units for fifty -five years from the undersigned parties as are hereby, incorporated by reference into this Agreement Agreement as true and correct. as applicable] hereby acknowledges that in issuing the [type of permit AA, VAR etc.] ject, the City is reducing or modifying development standards otherwise Project such as increasing unit density, reducing parking and other property development standards, and /or waiving fees. In exchange for such forms of assistance from the City, which are of financial benefit to the Developer, Developer has entered into this contract with the City and agreed to the other conditions of the [type of permit see above] Permit, including the requirement included in this Agreementto provide and maintain [ #] affordable units on site for occupancy by qualified households which meet income requirements specified in Section 2 of this Agreement. The parties agree and acknowledge that this is a contract providing direct financial assistance to the Developer within the meaning of Civil Code Section 1954.52 (b) and Government Code Section 65915 et seq. Administrative Guidelines Affordable Housing Production Program Attachment 3 -E: Page 2 DEVELOPER TO PROVIDE [Total # deed restricted units] AFFORDABLE UNITS. (a) Developer shall provide and maintain [ #] affordable housing units on the Subject Property that shall be affordable to households which earn not more than [fifty percent (50 %)] of the then current annual median income adjl the Los Angeles County Area, as defined by the United States Urban Development ( "HUD ") [if very -low units, or sixty perc units, or eighty percent (80 %), or one hundred percent (100 units as appropriate]. Three (3) [insert correct number] contain at least two bedrooms and one [insert correct hum shall contain at least three bedrooms. The affordab rented to and affordable to [ very -low, low or mo households as provided in this agreement. (b) Developer may satisfy Section households which participate in a: 1937, as amended, or any other c (c) The Affordable Units calculated pursuant to the formula (d) The City shall issue a I expressly contingent upon complia shall be required at all times to.cc Agreement shall be grounds for red notice and an opportunity to curF Certificate. :d for household size, for partment of Housing and (60 %) if low affordable if moderate affordable e affordable units shall at the su (select If the affordable units )ject property shall be :orrect_rate)] income oiling the Affordable Units to Section 8 of the Housing Act of (t,be rental units "and the maximum rent shall be forth in Section 3 of this Agreement. tificate of Occupancy for the Project ( "Certificate ") with the terms of this Agreement. A valid Certificate we to use or occupy the Project. A breach of this ng the Certificate. The City shall provide reasonable ly breach of this Agreement prior to revoking the that are designated as affordable] units shall be rented to [ very low, low or moderate (select appropriate level) ] income households which meet income requirements specified in Sections 2 and 4 of this Agreement, not to exceed the maximum allowable rental rates established as follows: (a) If the household is receiving assistance under the Section 8 Existing Assistance Program or similar subsidy program, the maximum allowable rent shall be that which is established by the Section 8 subsidy program. (b) If the household is not receiving federal rental assistance as defined above, the maximum allowable rent for the unit shall be calculated as follows: Median income x 50% x Bedroom Adjustment Factor x 30% = Maximum Allowable Rent (Annual). [ if Very -Low Income, otherwise delete ] Administrative Guidelines Affordable Housing Production Program Attachment 3 -E: Page 3 Median income x 60% x Bedroom Adjustment Factor x 30% = Maximum Allowable Rent (Annual). [if Low Income, otherwise delete ] Median Income x [ 80% or 100% (select appropriate rate)] x Bedroom Adjustment Factor x 30% = Maximum Allowable Rent (Annual). [if Moderate Income otherwise delete] The Maximum Allowable Rent figures must be divided by twelve to determine the maximum allowable monthly rent. "Median Income" is defined as the median income for a four person household in the Los Angeles County Area as established periodically by HUD. The formula for the calculation of rents as of the date of this Agreement is as follows:. Median Income (1) x Income Range (2) x Bedroom Adjustment (3) x 30% E ON 3 April ?] Median Income - As periodically published by HUD, currently, $75,800 (for a family of four). Income Ranges Very -Low is 50% or less of median income [delete if inapplicable] Low is 60% or less of Moderate is 80% or,100% or less of median income [delete inapplicable] -. 0 Bedroom .7 3 Bedrooms 1.085 1Bedroom .81 4 Bedrooms 1.225 Affordable mm $663 Low (60 %) . $796 Moderate (100 %) $1,327 ng Div. updates figures once a year; usually 1 -BR 2 -BR 3 -BR $758 $900 $1,028 $910 $1,080 $1,234 $1,516 $1,800 $2,056 In the event the standards for establishing the monthly rental rate of the Affordable Units set forth in Section 3 above cease to exist, the parties shall substitute a similar standard established by HUD or its successor governmental agency. If the parties Administrative Guidelines Affordable Housing Production Program Attachment 3 -E: Page 4 are unable to agree upon a substitute standard, the parties shall refer the choice of the substitute standard to binding arbitration in accordance with the rules of the American Arbitration Association. 5. INCOMES. OCCUPANCY AND ELIGIBILITY STANDARDS. Except as required by section 2, Developer shall only rent the Affordable Units to persons whose income, adjusted for household size, does not exceed the following income guidelines: Median Income x 50% x Household Adj inapplicable] Median Income x 60% x Househ inapplicable] Median Income x 80% or 100% x delete inapplicable rate] The Household Adjustment F 1 person 0.7 2 persons 0.8 3 persons 0.9 4 persons, 1.0 5 persons `: 1..0 0 , delete if Factor ffor Low. delete if Factor [for Moderate, If, the affordable rents are 'below the Section 8 Program "Fair Market Rents" Developer, shall make the Affordable Units available for occupancy to Section 8 Housing Assistance Program Certificate Holders by listing the Affordable Units with the local Housing Authority., n no case shall the Developer discriminate against Section 8 Program Certificate Holders for occupancy in the property. Developer shall not rent the Affordable Units to a member of his or her family. For the purposes of this Agreement, the term "family" shall include the Developer and his or her spouse, children, parents, grandparents, brother, sister, father -in -law, mother -in -law, son -in -law, daughter -in -law, aunt, uncle, niece, nephew, sister -in -law and brother -in -law. For the purposes of this Section, the term "Developer" shall include all parties bound by this Agreement. In addition, if Developer is a corporation, Developer shall not rent the Affordable Units to any officer, shareholder or employee of such corporation. If Developer is a Administrative Guidelines Affordable Housing Production Program Attachment 3 -E: Page 5 partnership, Developer shall not rent the Affordable Units to any partner or employee of such partnership. In addition, Developer shall not rent the Affordable Units to any member of the Santa Monica City Council, or City Boards or Commissions, or City employees who presently exercise any function or responsibility in connection with the Property, or shall have or acquire any personal, financial, or economic interest, direct or indirect. For the purposes of this Agreement direct or indirect interest spouse, parent, child, brother, sister, father -in -law, moth law, daughter -in -law, or son -in -law of the potential tena Developer agrees to make reasonable sixty days. 6. TENANT SELECTION. Developer shall select households from households. interest held by the iher -in -law. sister -in- rdable Units within loped list of income qualified [OR if Project is an ownership project ,of 4 or more units in the City's multifamily residential zones, use the ,following provisions] Developer may select households from the City - developed list of income qualified households or may self select households subject to the following requirements: 1 Developer shall give preference in leasing the affordable units to persons evicted pursuant to the Ellis Act;�Government Code, Section 7060, persons residing in Santa Monica, and persons working in Santa Monica, unless preempted by HUD grant program requirements or other government requirements that pertain to tenant selection. Developer shall, certify the income of the prospective tenants subject to City certification' prior to selection for occupancy in order to ensure that the occupancy requirements specified in Section 4 of this Agreement are met. The income certification shall be completed, in accordance with the following: (a) Developer shall require an income declaration from all household members eighteen (18) years of age and older. (b) For the purposes of this Agreement, "income" shall include employment income, social security, disability, pensions, supplementary benefits, support payments, income from sale of real property, and income from assets over $5,000 (not including automobiles or furnishings). Developer shall obtain verification for all income, which may include pay stubs, income tax returns, savings account statements, financial statements, stock certificates, etc. in order to verify the gross annual household income. Administrative Guidelines Affordable Housing Production Program Attachment 3 -E: Page 6 (c) Developer shall compute gross annual household income by totaling all income, and adjusting as follows: (1) Deduct $480 for each dependent, defined herein as a household member under 18 years of age; (2) Deduct $400 for any family with ahead of household over 62 years old; (3) Deduct medical expenses in excess of three percent (3 %) of annual income for any elderly family; and (4) For households whose total assets exceed $5,000, the Developer must calculate the annual asset income by multiplying the value of the total assets by ten percent (10 %). Developer shall then add the result to the other household income to obtain the adjustment gross annual income. (d) Developer shall select a household for income verification process and may require othe documentation of ability and history of timely pa maintaining property. (e) Developer may accept a tenant with, Assistance Payments Program Certificate as i verifications. 7. 'ordable Units upon completion of nation prior to selection, including of rent, and ability and history of ent and valid Section 8 Housing without completing the above The Conditions, Covenants and Restrictions (C ,C & R's), if any, for the Subject Property shall include reference,to all applicable obligations and duties of the parties created by this Agreement. The City Attorney of the City of Santa Monica shall approve as to form the C,C & R's, prior to recordation of the final subdivision or parcel map for the Subject Property. Developer shall rent the Affordable Units pursuant to the terms and conditions of a lease or rental agreement approved by the City. At least thirty days prior to the expected completion date, Developer shall submit to the City Housing Division for review a copy of the lease agreement to be'used and 'a brief marketing plan and description of the tenant selection process to be used. In addition to any other provision required by the City to ensure compliance with Chapter 9.56 and the Administrative Guidelines for Chapter 9.56, as they may be amended from time to time, said lease or rental agreement shall contain a provision prohibiting subleasing of the Affordable Units or revising the composition of the household without Developer's permission. Developer shall not approve any change that renders the Units in noncompliance with the income guidelines for such household as set out in Section 1. The addition to the household of a minor child or children shall not be deemed a change in the household requiring Developer's prior approval pursuant to this Section. Administrative Guidelines Affordable Housing Production Program Attachment 3 -E: Page 7 8. ATTORNEYS' FEES AND COSTS. In the event of any controversy, claim or dispute between the parties hereto, arising out of or relating to this Agreement or breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs. 9. APPOINTMENT OF OTHER AGENCIES. The City may designate, appoint or contract with any other public agency to perform City's obligations under this Agreement. 10. SEVERABILITY. In the event any limitation, condition, this Agreement is held to be invalid, void jurisdiction, the remaining portions of this Ac full force and effect. 11. NOTICES. All notices receipt requested e n, covenant or ined in any court orcompetent heless. be and remain in shall be sent by certified mail, return City of Santa Monica Planning and Community Development Department 1685 Main Street, Room 212 Santa Monica, California 90401 Attention: Director, Planning and Community Development Department [enter developer name /address] Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above. Administrative Guidelines Affordable Housing Production Program Attachment 3 -E: Page 8 12. HOLD HARMLESS. As between the City and the Developer, the Developer is deemed to assume responsibility and liability for, and the Developer shall indemnify and hold harmless the City and its City Council, boards and commissions, officers, agents, servants or employees from and against any and all claims, loss, damage, charge or expense, whether direct or indirect, to which the City or its City Council, boards and commissions, officers, agents, servants or employees may be put or subjected, by reason of any damage, loss or injury of any kind or nature whatever to persons or property caused, by or resulting from or in connection with any negligent act or action, or any neglect, omission or failure to act when under a duty to act, on the part of the Developer or any of Developer's officers, agents, servants, employees or subcontractors in his or their performance hereunder. 13. The covenants and conditions herein cont; successors and assigns of all the parties hereto ar Property for the benefit of the City, the public and s in accordance with the provisions hereof. Develol and covenants contained in this Agreement a conveying any interest in the Subject Property,,' ' 14. �d shall apply to and bind the heirs, hall run with and burden the Subject Funding landowners, until terminated shall expressly make the conditions t of anv" ,deed or other instrument In the event of.sale or conversion of the subject property, any Conditions, ants and Restrictions (CC & R's) for the property, shall incorporate by reference all ions and duties of, the parties created by this Agreement. Reporting obligations set . Section 22 below, shall be set forth in the CC & R's if any, for the project. 15. Developer agrees not to discriminate against any actual or potential occupant of the subject property on the basis of sex, race, color, religion, ancestry, national origin, sexual orientation, age, pregnancy, marital status, handicap, HIV, family composition, or the potential or actual occupancy of minor children. Developer further agrees to take affirmative action to ensure that no such person is discriminated against for any of the aforementioned reasons. Administrative Guidelines Affordable Housing Production Program Attachment 3 -E: Page 9 16. STANDING TO ENFORCE AGREEMENT. Violation of this Agreement may be enjoined, abated or remedied by appropriate legal proceeding in a court of competent jurisdiction by any aggrieved party, including but not limited to, the parties hereto, or their respective successors, heirs and assigns. The right to specific performance of this Agreement shall be an appropriate remedy for a breach of this Agreement because of the uniqueness of the Property and the inherent difficulty in calculating adequate damages. 17. INTEGRATED AGREEMENT. This Agreement constitutes the err modification hereof shall be binding unless hereto. 18. APPLICABLE LAW. All questions pertaining to tl determined in accordance with the be performed within the State. 19. CITY AUl The obligation way limit, the author Subject Property. N appropriate action to Subject Property. 20. DURATIC This Agreemei the date of recordatic :ment between the parties and no to writing and signed by the parties interpretation of this Agreement shall be lia applicable to contracts made to and to ner pursuant tothis Agreement are in addition to, and in no City to enforce all laws and regulation applicable to the his Agreement shall limit the authority of the City to take he terms of any permit issued by the City relating to the shall terminate and become null and void fifty -five (55) years from hereof. 21. AMENDMENT OF AGREEMENT. This Agreement, and any Section, subsection, or covenant contained herein, may be terminated or amended only upon the written consent of all parties hereto. Administrative Guidelines Affordable Housing Production Program Attachment 3 -E: Page 10 22. RECORDING OF AGREEMENT. The parties hereto shall cause this Agreement to be recorded in the Official Records of the County of Los Angeles. 23. YEARLY REPORT. Developer shall issue a written report to City on an ann year from the date of recordation of this Agreement and'contin the term of the Agreement. The report shall state the rent level Affordable Units, whether the occupants are assisted by a prog Housing Act of 1937, the number of occupants in the householc any changes in the composition of the hot during the reporting year, any changes in and such other information as may be req Prepared by: Planner Name Reference Number: XXDED -XXX I basis commencing one ng thereafter throughout en being charged for the m under Section 8 of the whether any vacanci( of the residents of the have been occurred able units, Administrative Guidelines Affordable Housing Production Program Attachment 3 -E: Page 11 ■11-1 Sample Application for Affordable Housing Eligibility List Preliminary Application Page 1 of 3 Housing Authority of the city of Santa Monica First Name: 1901 Main street, iIt ". Suite A Santa Monica, California 90405 City of Snoth monfedo (Where you currently -live) PRELIMINARY APPLICATION English l This application must be submitted electronically using this system to create a receipt of application. Paper copies of this form cannot be accepted. Waiting List: Affordable Housing Programs Pan` R: Head of Household Applicant EthnicitV (Check one box) First Name: Mailing Address (If different from Legal) O Hispanic (Where you currently -live) (Where you currently receive mail) ONot Hispanic Last Name: 1 Address Him 1: j Address Line 2: Address Line 2: Ram (Check all that apply) Social Security Number: i xxx- .x-xxxx Data of Birth: Ir (mm /dd /yyyy) ❑slack/ ` — - - - -' —� African American Sex: 0remale OMate ❑ American Indian/ _ .Alaska Native ❑Asian Telephone Number: ,((xxx) xxx -xxxx) . ❑Native Hawaiian/ Other Phone /E -mall: i Other Pacific Islander Other Phone Type: 't Raffal and ethnic data for - - statistical purposes only. Oyes O No Do you qualify for a reasonable accommodation due to a disability? Note: If Your legal or mailing address changes, you must notify the Housing Authority in writing to malntaln your waiting list status, https: / /www. waitl istcliecic ,com /applicatioll/foim. Pbl)?ID= 2348 -CAI I1 8/8/2011 Administrative Guidelines Affordable Housing Production Program Attachment 4 -A Part 2: Household Information Legal Address Mailing Address (If different from Legal) (Where you currently -live) (Where you currently receive mail) Address Line 1: 1 Address Him 1: j Address Line 2: Address Line 2: City: City: State: � � - State: , I ZIP Code: ZIP Code: Note: If Your legal or mailing address changes, you must notify the Housing Authority in writing to malntaln your waiting list status, https: / /www. waitl istcliecic ,com /applicatioll/foim. Pbl)?ID= 2348 -CAI I1 8/8/2011 Administrative Guidelines Affordable Housing Production Program Attachment 4 -A Preliminary Application Page 2 of 3 Household Members List Information for adults first, then children underage 18. Use "f-" or "M" to indicate sex. IF a household member qualifies for a reasonable accommodation due to a disablllty select Y',. If not, select "N ", List relationship of each person to the Head of Household. First Name Last Name Social Date of Security f« LEr. Sex Disabled Relationship Head List total gross Income (before taxes) and payments received by each mmlly member age 18 or Older for wages, military pay, pensions, social security, SSIr welfare, child support, unemployment, business, profession, or any other source. Include payments made to family members age 18 or older on behalf of other family members under age Is. Gross If Income Is from Wages List total cash value and total Income received for assets owned by all family members. Type of Asset Checking Accounts. Savings Accounts Stocks, Bonds, CDs, Investment Real [state Other Cash Value of Asset Income Received from Asset $�_ — ---- ___._.. _J Part 4: EIigibilitV. and Preferences - Your response to the following statement will help determine your eligibility for'rental assistance and If you are entitled to a preference when placed on the program's waiting list. Select the appropriate responses for each question below. littps:// www. waitlistchecic .com/api)licationtforin.l)hp?ID= 2348 -CA111 8/8/2011 Administrative Guidelines Affordable Housing Production Program Attachment 4 -A Preliminary Application - Page 3 of 3 Yes No 00 Have you been Involuntarily displaced from your housing in Santa Monica as a result of a natural disaster such as a are, flood or earthquake; federal, state, or local government action related to code enforcement or public Improvement or development; or an eviction pursuant to the Ellis Act or Civil Code Section 798.56(8) of the Mobile Home Residency Law? Has the Santa Monica Housing Authority terminated your Housing Choice Voucher (Section 8) rental assistance due to insufficient program funding? 00 Are you currently a Santa Monica resident? A Santa Monica resident is a person who: (a) Resides In the City of Santa Monica; (b) Currently works a minimum of 3B hours or more a week In Santa Monica; (c) Homeless In Santa Monica and currently receiving services from a Santa Monica service agency which provides case management services. Homelss Is defined as living on the street, in a car, In an emergency shelter, in transitional or supportive housing; (d) Chronically homeless In Santa Monica. Chronically homeless is defined as a person being homeless with a disabling condition who has either been continuously homeless for a year or more OR have had at least four (4) episodes of being homeless In the past three years- you must have been on the streets or In an emergency shelter (not transitional housing); (e) Listed on the City of Santa Monica's Service Registry, the list of the most chronic and vulnerable homeless individuals sleeping in selected high concentration areas In Santa Monica: 00 Are you or your spouse /partner a member of the US Military, Including . active reserves, veterans or families of US veterans, or surviving spouse of a US veteran? (Veterans and family members must reside In the same household) - 0 0 Are you a single appllcant(1 person household) who is Elderly or Disabled? 00 Are you Interested In home ownership? 00 Do you own a home? You have the right to Include as part of your applicaton contact Information fora person or organization that may be able to help you resolve any Issues that may arise or to assist in providing any speclaI care or services you may require In association with this application for housing. You are not required to provide this contact Information, but If you choose to do so, please click the "Add Contact" button below to complete the form. Add Contact_ 0 Check this box if you choose not to provide the contact Information: Part 6: 11.5. Citizenship Notification and Certification Housing may be contingent upon the submission and verincatton of evidence of citizenship or eligible Immigration . status prior to the time housing Is made available. Based on the evidence submitted at that time, assistance may be prorated, denied or terminated following appeals and Informal hearing processes. . I certify that the Information on this form Is true and complete to the best of my knowledge and belief. I understand that I can be fined up to $10,000 or Imprisoned up to five years if I mrnlsh fetse.or Incomplete Information. - Submit ° Equal Housing opportunity Copyright © HAPPY Software, Inc. 2007 -2011, ht tps:// www. waitlistcheek .couilapDlicatioii/fozm.l)hl)?ID= 2348 -CAl 11 8/8/2011 Administrative Guidelines Affordable Housing Production Program Attachment 4 -A City N No it t A I - Housing 1- ! oi '' Administrative Guidelines Affordable Housing Production Program Attachment 4 -13 Name Phone Number Referred Applicant #1: Was the Unit No Offered to Yes Applicant #1? (If no, please state reason) Was the unit accepted by Yes ' No Applicant #1 ? Name Phone Number '= F Referred A licant #2: Was the Unit No Offered to Yes Apelicant #2? (If no, please state reason) Was the unit accepted by Yes No Applicant? #2? Name "Phone Number F—Referred Appli cant #3: Was the Unit No Offered to Yes Applicant #3? (If no, please state reason) Was the unit accepted by Yes No Applicant? #3? Administrative Guidelines Affordable Housing Production Program Attachment 4 -13