r-10705f:\atty\muni\law\barry\affordfeereso09-11-12
City Council Meeting 09 -11 -12
1 • •► ► u _:
(City Council Series)
Santa Monica, California
(CCS)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AUTOMATICALLY ADJUSTING THE AFFORDABLE HOUSING UNIT BASE FEE FOR
NEW MARKET -RATE MULTIFAMILY DEVELOPMENT PURSUANT TO SANTA
MONICA MUNICIPAL CODE SECTION 9.56.070(b) BASED ON CHANGES IN
CONSTRUCTION COSTS AND LAND COSTS
WHEREAS, on November 8, 2005, the City Council amended Santa Monica
Municipal Code Section 9.56.070 to provide that commencing on July 1, 2006, the
Affordable Housing Unit Base Fee shall be automatically adjusted annually by City
Council resolution based on changes in construction costs and land costs; and
WHEREAS, in order to implement the Council's decision, staff formulated a
specific method of measuring changes in construction costs and land costs; and
WHEREAS, this proposed methodology was detailed in an April 24, 2006 letter
prepared by Paul S. Silvern of HR &A Advisors, Inc. ( "HR &A ") on behalf of the City and
approved by the Council on June 13, 2006; and
WHEREAS, pursuant to this methodology, on June 27, 2006, the City Council
adopted Resolution No. 10149 (CCS) which established an affordable housing unit base
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fee for condominiums of $28.15 per square foot and an affordable housing unit base fee
for apartments of $24.10 per square foot; and
WHEREAS, pursuant to this methodology, on July 24, 2007, the City Council
adopted Resolution No. 10229 (CCS) which incrementally adjusted these base fees by
$1.41 per square foot for new market rate condominiums and $1.21 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on July 23, 2008, the City Council
adopted Resolution No. 10329 (CCS) which incrementally adjusted these base fees by
$1.33 per square foot for new market rate condominiums and $1.14 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on September 8, 2009, the City
Council adopted Resolution No. 10422 (CCS) which incrementally adjusted these base
fees by $0.80 per square foot for new market rate condominiums and $0.69 per square
foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on September 28, 2010, the City
Council adopted Resolution No. 10529 (CCS) which incrementally decreased these
base fees by $0.41 per square foot for new market rate condominiums and $0.35 per
square foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on June 14, 2011, the City Council
adopted Resolution No. 10578 (CCS) which incrementally adjusted these base fees by
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$0.66 per square foot for new market rate condominiums and $0.35 per square foot for
new market rate apartments; and
WHEREAS, Resolution No. 10149 (CCS), Resolution No. 10229 (CCS),
Resolution No. 10329 (CCS), Resolution No. 10422 (CCS), Resolution No. 10529
(CCS), and Resolution No. 10578 (CCS) thereby established an affordable housing unit
base fee for condominiums of $31.94 per square foot and an affordable housing unit
base fee for apartments of $27.35; and
WHEREAS, in accordance with Santa Monica Municipal Code Section 9.56.070
and the City Council's approved methodology, HR &A has calculated the required
incremental adjustment to these base fees based on the changes to construction costs
and land costs that have occurred since the adjustment undertaken last year; and
WHEREAS, on August 31, 2012, the City published a notice that at the
September 11, 2012 City Council meeting, the City Council would consider a proposed
resolution to incrementally adjust the affordable housing fee that private developers pay
to the City for the production of affordable housing based on this methodology and that
the HR &A analysis was available for review in the City Clerks Office; and
WHEREAS, the City republished this notice on September 5, 2012; and
WHEREAS, a copy of HR &A's analysis has been available in the City Clerk's
Office for public review since August 31, 2012; and
WHEREAS, based on this analysis, an increase in the amount of $0.22 per
square foot of the current Affordable Housing Unit Base Fee of $27.35 for apartments
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and a increase in the amount of $0.26 per square foot of the current Affordable Housing
Unit Base Fee of $31.94 condominiums would be appropriate,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The current Affordable Housing Unit Base Fee for new market rate
condominiums of $31.94 per square foot established by Resolution No. 10149 (CCS),
Resolution No. 10229 (CCS), Resolution No. 10329 (CCS), Resolution No. 10422
(CCS), Resolution No. 10529 (CCS), and Resolution No. 10578 (CCS) shall be
increased by $0.26 per square foot of floor area.
SECTION 2. The current Affordable Housing Unit Base Fee for new market rate
apartment of $27.35 per square foot established by Resolution No. 10149 (CCS),
Resolution No. 10229 (CCS), Resolution No. 10329 (CCS), Resolution No. 10422
(CCS), Resolution No. 10529 (CCS), and Resolution No. 10578 (CCS) shall be
increased by $0.22 per square foot of floor area.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect on November 11,
2012.
SECTION 4. Resolution No. 10149 (CCS), Resolution No. 10229 (CCS),
Resolution No. 10329 (CCS), Resolution No. 10422 (CCS), Resolution No. 10529
(CCS), and Resolution No. 10578 (CCS) shall remain in full force and effect. This
resolution does not supersede or alter Resolution No. 10149 (CCS), Resolution No.
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10229 (CCS), Resolution No. 10329 (CCS), Resolution No. 10422 (CCS), Resolution
No. 10529 (CCS), and Resolution Number 10578 (CCS) in any respects.
APPROVED AS TO FORM:
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Adopted and approved this 11th day of September, 2012.
Rich rd Bloom, May r�
I, Denise Anderson - Warren, Assistant City Clerk of the City of Santa Monica, do
hereby certify that the foregoing Resolution No. 10705 (CCS) was duly adopted at a
meeting of the Santa Monica City Council held on the 11th day of September, 2012, by
the following vote:
AYES: Councilmembers Holbrook, McKeown, O'Connor, O'Day, Shriver
Mayor Pro Tern Davis, Mayor Bloom
NOES: None
ABSENT: None
ATTEST:
Denise Anderson - Warren, Assistant City Clerk