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City Council Meeting 09 -11 -12
RESOLUTION NUMBER 10706
(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 DEVELOPMENT
COST PURSUANT TO SANTA MONICA MUNICIPAL CODE SECTION 9.56.070(c)
BASED ON CHANGES IN CONSTRUCTION COSTS AND LAND COSTS
WHEREAS, on June 13, 2006, the City Council amended Santa Monica
Municipal Code Section 9.56.070 to provide that the City's affordable housing unit
development cost shall be established by resolution and that commencing on July 1,
2007, the affordable housing unit development cost shall be automatically adjusted
annually by City Council based on changes in construction costs and land costs; and
WHEREAS, Santa Monica Municipal Code Section 9.56.020 defines "affordable
housing unit development cost" as "the City's average costs to develop a unit of housing
affordable to low- and moderate - income households;" and
WHEREAS, in order to implement the Council's decision that the affordable
housing unit development cost be adjusted based on changes in land and construction
costs, staff formulated a specific method of measuring changes in construction costs
and land costs; and
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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 July 24, 2007, the City Council
adopted Resolution No. 10230 (CCS) which established an affordable housing unit
development cost of $265,632; and
WHEREAS, pursuant to this methodology, on July 23, 2008, the City Council
adopted Resolution No. 10330 (CCS) which incrementally adjusted this unit
development cost by $11,953; and
WHEREAS, pursuant to this methodology, on September 8, 2009, the City
Council adopted Resolution No. 10423 (CCS) which incrementally adjusted this unit
development cost by $7,217; and
WHEREAS, pursuant to this methodology, on September 28, 2010, the City
Council adopted Resolution No. 10530(CCS) which incrementally decreased this unit
development cost by $3,702; and
WHEREAS, pursuant to this methodology, on June 14, 2011, the City Council
adopted Resolution No. 10579 (CCS) which incrementally adjusted this unit
development cost by $5,903; and
WHEREAS, Resolution No. 10230 (CCS), Resolution No. 10330 (CCS),
Resolution No. 10423 (CCS), Resolution No. 10530 (CCS), and Resolution No. 10579
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(CCS) thereby established an affordable housing unit development cost of $287,003;
we
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 the unit development cost 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 adjust the affordable housing unit development cost that private developers
may 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 $2,296 to the
current affordable housing development cost of $287,003 would be appropriate,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
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SECTION 1. The current Affordable Housing Unit Development Cost of
$287,033 established by Resolution No. 10230 (CCS), Resolution No. 10330 (CCS),
Resolution No. 10423 (CCS), Resolution No. 10530 (CCS), and Resolution No. 10579
(CCS) shall be increased by $2,296.
SECTION 2. 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 3. Resolution No. 10230 (CCS), Resolution No. 10330 (CCS),
Resolution No. 10423 (CCS), Resolution No. 10530 (CCS), and Resolution No. 10579
(CCS) shall remain in full force and effect. This resolution does not supersede or alter
Resolution No. 10230 (CCS), Resolution No. 10330 (CCS), Resolution No. 10423
(CCS), Resolution No. 10530 (CCS), and Resolution No. 10579 (CCS) in any respects.
APPROVED AS TO FORM:
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Adopted and approved this 11th day of September, 2012.
R chard Bloom, Mayor
I, Denise Anderson - Warren, Assistant City Clerk of the City of Santa Monica, do
hereby certify that the foregoing Resolution No. 10706 (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:
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Denise Anderson - Warren, Assistant City Clerk