O2409Fatty \muni \laws \barry\AH PP2012AmendmentOrd 1023122d
City Council Meeting: 10/23/2012
Santa Monica, California
ORDINANCE NUMBER 2409 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 9.56.070
TO ELIMINATE THE DISCOUNT TO THE AFFORDABLE HOUSING UNIT BASE FEE
WHICH IS CURRENTLY A FIFTY PERCENT DISCOUNT IN
INDUSTRIAUCOMMERCIAL DISTRICTS AND A TWENTY -FIVE PERCENT
DISCOUNT IN RESIDENTIAL DISTRICTS WHEN CERTAIN CONDITIONS ARE MET
WHEREAS, the City's Affordable Housing Production Program, Chapter 9.56 of
the Santa Monica Municipal Code (the "AHPP "), requires developers of multi - family
housing projects to contribute to affordable housing production and thereby help the
City meet its affordable housing goals; and
WHEREAS, the requirements of the AHPP are based on a number of factors
including, but not limited to, the City's long- standing commitment to economic diversity;
the serious need for affordable housing as reflected in local, state, and federal housing
regulations and policies; the demand for affordable housing created by market rate
development; the depletion of potential affordable housing sites by market -rate
development; and the impact that the lack of affordable housing production has on the
health, safety, and welfare of the City's residents including its impacts on traffic, transit
and related air quality impacts, and the demands placed on the regional transportation
infrastructure; and
WHEREAS, subject to certain exceptions, the requirements of the AHPP can be
met through various alternatives including providing affordable housing units on -site,
providing affordable housing units off -site, acquiring land for affordable housing, and
paying an affordable housing fee; and
WHEREAS, the AHPP currently provides a discount to the Affordable Housing
Unit Base Fee for new development that will not displace existing multi- family housing -
a fifty percent (50 %) discount in commercial zones and a twenty -five percent (25 %)
discount in residential zones; and
WHEREAS, at the time of the AHPP's adoption, most existing multi - family
housing had rent levels that were affordable to low and moderate income households;
IT':
WHEREAS, this fee discount was intended to encourage residential development
on sites that would not result in tenant displacement; and
WHEREAS, history of housing construction demonstrates that this incentive has
not been effective since more than one -half of the 140 new multi - family developments
since the discount's adoption have involved properties with existing multi - family
housing; and
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WHEREAS, eliminating the discount would also increase fee revenue contributed
to the City's Housing Trust Fund which is used to finance affordable housing throughout
the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 9.56.070 is hereby amended
to read as follows:
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) Affordable housing unit base fee x floor area of
multi - family project;
(2) Multi- family projects with fractional affordable
housing units of less than 0.75 based on the formula
established in Section 9.56.050:
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City's affordable housing unit development cost x
fractional percentage.
(b) For purposes of this Section, the affordable
housing unit base fee shall be established by resolution of
the City Council. Commencing on July 1, 2006 and on July
1st of each fiscal year thereafter, the affordable housing unit
base fee 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 amount of the affordable housing fee that the
multi - family project applicant must pay shall be based on the
affordable housing unit base fee resolution in 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
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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.
(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
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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 shall 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.
SECTION 2. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have passed this Ordinance and each and every section, subsection, sentence, clause,
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or phrase not declared invalid or unconstitutional without regard to whether any portion
of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage
of this Ordinance. The City Clerk shall cause the same to be published once in the
official newspaper within 15 days after its adoption. This Ordinance shall become
effective 60 days from its adoption.
APPROVED AS TO FORM:
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Approved and adopted this 23`d day of October, 2012.
Richard Bloom, Mayor
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
1, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Ordinance No. 2409 (CCS) had its introduction on September 11,
2012, and was adopted at the Santa Monica City Council meeting held on
October 23, 2012, by the following vote:
Ayes: Council members: Holbrook, McKeown, O'Connor, O'Day
Mayor Pro Tern Davis, Mayor Bloom
Noes: Council members: None
Absent: Council member: Shriver
A summary of Ordinance No. 2409 (CCS) was duly published pursuant to
California Government Code Section 40806.
ATTEST:
Sarah P. Gorman, City Clerk