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O2429F: \M u n i Law\Share\Laws\MJ M\Afford Hsg Prod Prog ramAH PPOrd0625132d City Council Meeting: 6 -25 -13 Santa Monica, California ORDINANCE NUMBER &Y7-41 (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE CHAPTER 9.56, THE CITY'S AFFORDABLE HOUSING PRODUCTION PROGRAM INCLUDING REVISING AFFORDABLE HOUSING CATEGORIES, INCOME - ELIGIBILITY LIMITS, RENT LIMITS, AND EXPANDING AHPP INCOME CATEGORIES WHEREAS, the City Council desires to amend Chapter 9.56 of the Santa Monica Municipal Code relating to the City's Affordable Housing Production Program ( "AHPP "); W' WHEREAS, the proposed amendments to the AHPP are intended to achieve greater affordability and maintain Santa Monica's economic diversity; and WHEREAS, the proposed amendments to the AHPP include revising affordable housing categories, income - eligibility limits, and rent limits to be consistent with federal and state affordable housing programs; and WHEREAS, the proposed ordinance would also expand AHPP income categories to include households at the lowest end of the income scale, and make technical updates to reflect current practices; and WHEREAS, the proposed changes to the AHPP would result in increased targeting of lower income households, and lower rents; and WHEREAS, the proposed amendments to the AHPP are consistent with Proposition R; and 1 WHEREAS, if adopted, the proposed amendments to the AHPP would only apply to future multi - family housing developments. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: Santa Monica Municipal. Code Chapter 9.56 is hereby amended to read as follows: Chapter 9.56 AFFORDABLE HOUSING PRODUCTION PROGRAM 9.56.010 Findings and purpose. The City's affordable housing production program requires developers of market rate multi - family developments to contribute to affordable housing production and thereby help the City meet its affordable housing need. As detailed in the findings supporting the ordinance codified in this Chapter, the requirements of this Chapter 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 2 quality impacts, and the demands placed on the regional transportation infrastructure. 9.56.020 Definitions. The following words or phrases as used in this Chapter shall have the following meanings: 30% Income Household means a household whose gross income does not exceed the 30% income limits applicable to the Los Angeles- Long Beach Primary Metropolitan Statistical Area, adjusted for household size, as published and periodically updated by HUD. 50% Income Household means a household whose gross income does not exceed 50% of the area median income, adjusted for household size, as published and periodically updated by HUD. 50% income households include 30% income households. 80% Income Household means a household whose gross income does not exceed 80% of the area median income, adjusted for household size, as published and periodically updated by HUD. 80% income households include 50% income households. Adjusted for Household Size means 70% adjustment for a household of one person, 80% adjustment for a household of two persons, 90% adjustment for a household of three persons, 100% adjustment for a household of four persons, 108% adjustment for a household of five persons, 116% adjustment for a household of six persons, 124% adjustment for a household of seven persons, 132% adjustment a 3 household size of eight persons. For households of more than eight persons, adjustments shall be made in accordance with applicable HUD regulations. Adjusted for Household Size Appropriate for the Unit means for a household of one person in the case of a studio unit, two persons in the case of a one - bedroom unit, three persons in the case of a two - bedroom unit, four persons in the case of a three - bedroom unit, and five persons in the case of a four - bedroom unit. Affordable Housing Fee means 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 30% income households, 50% income households, 80% income households, and moderate- income households. Affordable Housing Unit means 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 30% income households, 50% income households, 80% income households, or moderate- income households. Affordable Housing Unit Development Cost means the City's average cost to develop a unit of housing affordable to 30% income households, 50% income households, 80% income households or moderate income households. Ell Affordable Ownership Housing Cost. Affordable ownership housing cost means: For moderate income households whose gross incomes exceed the maximum income limits for 80% income households, affordable housing cost shall not be less than 28 percent of the gross income of the household, nor exceed the product of 35 percent times 110 percent of the area median income adjusted for household size appropriate for the unit. Affordable Rent. Affordable rent means: (a) For 30% income households, the product of 30 percent times 30 percent of the area median income adjusted for household size appropriate for the unit. (b) For 50% income households, the product of 30 percent times 50 percent of the area median income adjusted for household size appropriate for the unit. (c) For 80% income households whose gross incomes exceed the maximum incomes for 50% income households, the product of 30 percent times 60 percent of the area median income adjusted for household size appropriate for the unit. (d) For moderate income households, the product of 30 percent times 110 percent of the area median income adjusted for household size appropriate for the unit. 5 Area Median Income or AMI. Area median income or AMI means the median family income published from time to time by HUD for the Los Angeles -Long Beach Metropolitan Statistical Area. Dwelling Unit. One or more rooms, designed, occupied or intended for occupancy as separate living quarters, with full cooking, sleeping and bathroom facilities for the exclusive use of a single household. Dwelling unit shall also include single -room occupancy units as defined in Santa Monica Municipal Code Section 9.04.02.030.790 or any successor thereto. Floor Area. Floor area as defined in Santa Monica Municipal Code Section 9.04.02.030.315 or any successor thereto. Gross Income. Gross income has the same meaning as provided in title 25, section 6914 of the California Code of Regulations, as amended from time to time, in accordance with law. HCD. The California Department of Housing and Community Development or its successor. Housing Cost. Housing cost has the same meaning as provided in title 25, section 6920 of the California Code of Regulations, as amended from time to time in accordance with law. HUD. The United States Department of Housing and Urban Development or its successor. Income Eligibility. Income eligibility is based upon the gross income of the household, including the income of all wage earners, elderly or disabled family members, and all other sources of household income. Industrial /Commercial District. Any district designated in the Santa Monica Zoning Ordinance as a commercial or industrial district. Market Rate Unit. A dwelling unit as to which the rental rate or sales price is not restricted by this Chapter. Moderate Income Household means a household whose gross income exceeds the maximum income for a 80% income household and whose gross income does not exceed the lesser of: (i) 120% of the area median income, adjusted for household size, as published and periodically updated by HCD or (ii) twice the income limit for 50% income households, adjusted for household size, as published and periodically updated by HUD. Multi- family Project. A multi- family residential development, including but not 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. 7 Multi- family Residential District. Any district designated in the Santa Monica Zoning Ordinance as a multi - family residential district. Parcel. Parcel as defined in Santa Monica Municipal Code Section 9.04.02.030.570 or any successor thereto. Rent. Rent has the same meaning as provided in title 25, section 6918 of the California Code of Regulations, as amended from time to time in accordance with law. Vacant Parcel. A parcel in a multi - family residential district that has no residential structure located on it as of August 20, 1998 or which had a residential structure located on it on that date which was subsequently demolished pursuant to a demolition order of the City. No demolition of structures shall be permitted except in accordance with Santa Monica Municipal Code Section 9.04.10.16 et seq or any successor thereto. 9.56.030 Applicability of chapter. (a) The obligations established by this Chapter shall apply to each multi - family project involving the construction of two or more multi- family units, which project has not received its ministerial or discretionary planning approvals including, without limitation: variances, conditional use permits, administrative approvals, development review permits, and development agreement ordinances which have not yet become effective (collectively, "Approvals ") on the effective date of this ordinance. No building permit shall be issued for any multi - family project unless such construction has been approved in accordance with the standards and f' procedures provided for by this Chapter. Notwithstanding the above, a multi - family rental housing project that will 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 9.04.02.030.025 or any successor thereto 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 fifty -five years. (b) Multi- family projects which have received Approvals prior to the effective date of this ordinance [date] shall be subject to the provisions of Santa Monica Municipal Code Section 9.56.010 et seq., as they existed on the date of their approvals, except that pricing requirements for affordable housing units shall be published by the City on an annual basis instead of adoption by resolution of the City Council. (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. 9.56.040 Affordable housing obligation. All multi- family project applicants shall comply with the requirements of this Chapter in the following manner: N (a) Multi- family project applicants for multi - family ownership projects of four or more units in multi - family residential districts shall choose one of the two following options: (1) Providing affordable housing units on -site in accordance with Section 9.56.050; (2) Providing affordable housing units off -site in accordance with Section 9.56.060. (b) In addition to the options established in subsections (a)(1) and (2), all other multi - family project applicants may also choose one of the following options: (1) Paying an affordable housing fee in accordance with Section 9.56.070; (2) Acquiring land for affordable housing in accordance with Section 9.56.080. A multi - family project application 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. 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 10 as ownership units for moderate - income households, or as an alternative; (2) twenty percent of the total units as rental units for 80% 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); (3) ten percent of the total units as rental units for 50% 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); or (4) five percent of the total units as rental units for 30% 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 80% 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); fifteen percent of the total units as rental units for 50% 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); or (4) ten percent of the total units as rental units for 30% 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). 11 (c) For all other multi - family applicants, the multi - family project applicant agrees to construct at least: (1) five percent of the total units of the project for 30% income households; (2) ten percent of the total units of the project for 50% income households; (3) twenty percent of the total units of the project for 80% income households; or (4) one hundred percent of the total units of a project for moderate income households in an Industrial /Commercial District. (d) Any fractional affordable housing unit that results from the formulas of this Section that is 0.75 or more shall be treated as a whole affordable housing unit (i.e., any resulting fraction shall be rounded up to the next larger integer) and that unit shall also be built pursuant to the provisions of this Section. Any fractional affordable housing unit that is less than 0.75 can be satisfied by the payment of an affordable housing fee for that fractional unit only pursuant to Section 9.56.070(a)(4) or by constructing all the mandatory on -site affordable units with three or more bedrooms. The City shall make available a list of income levels for 30% income households, 50% income households, 80% income households, and moderate income households, adjusted for household size, the corresponding maximum affordable rents adjusted by household size appropriate for the unit, and the minimum number of units required for 30 % income households, 50% income households, or 80% income households required for typical sizes of multi - family projects, which list shall be updated periodically. 12 (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 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: r . - .. u . 1 bedroom 13 500 square feet 600 square feet 2 bedrooms 850 square feet 3 bedrooms 1,080 square feet 4 bedrooms 1,200 square feet Affordable housing units in multi - family projects of one hundred units or more must be evenly disbursed throughout the multi - family project to prevent undue concentrations of affordable housing units. (f) All affordable housing units in a multi - family project or a phase of a multi - family project shall be constructed concurrently with the construction of market rate units in the multi - family project or phase of that project. (g) On -site affordable housing units must be rental units in rental projects. In ownership projects, these affordable housing units may be either rental units or ownership units. (h) Each multi - family project applicant, or his or her successor, shall submit an annual report to the City identifying which units are affordable units, the monthly rent (or total housing cost if an ownership unit), vacancy information for each affordable unit for the prior year, verification of income of the household occupying each affordable unit throughout the prior year, and such other information as may be required by City staff. (i) A multi - family project applicant in a residential district who meets the requirements of this Section shall be entitled to the density bonuses and incentives provided by Sections 9.04.10.14.040 or any 14 successor thereto and 9.04.10.14.050 or any successor thereto and the waiver /modification of development standards provided by Section 9.04.10.14.060 or any successor thereto. 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. 0) All residential developments providing affordable housing on -site pursuant to the provisions of this Section shall receive priority building department plan check processing by which housing developments shall have plan check review in advance of other pending developments to the extent authorized by law. (k) The City Council may by resolution establish compliance monitoring fees which reflect the reasonable regulatory cost to the City of ensuring compliance with this Section when affordable housing units are being initially rented or sold, when the required annual reports are submitted to the City, and when the units are being re -sold or re- leased. 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). 15 (b) For all other multi - family project applicants, the applicant shall agree to construct the same number of affordable housing units as specified in Section 9.56.050(c). (c) The multi - family project applicant shall identify an alternate site suitable for residential housing which the project applicant either owns or has site control over (e.g., purchase agreement, option to purchase, lease) subject to City review to ensure that the proposed development is consistent with the City's housing objectives and projects. (d) The off -site units shall be located within a one - quarter mile radius of the market rate units. (e) The off -site units shall satisfy the requirements of subsections (d) through (j) of Section 9.56.050. (f) The off -site units shall not count towards the satisfaction of any affordable housing obligation that development of the alternative site with market rate units would otherwise be subject to pursuant to this Chapter. (g) Exceptions to the location of the off -site units specified in this Section may be 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. 16 (h)The City Council may by resolution establish compliance monitoring fees which reflect the reasonable regulatory cost to the City of ensuring compliance with this Section when affordable housing units are initially being rented or sold, when the required annual reports are submitted to the City, and when the units are being re -sold or re- leased. 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: City's affordable housing x fractional percentage unit development cost (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, 17 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 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 affordable 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 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. 9.56.080 Land acquisition. A multi - family project applicant may meet the affordable housing obligations established by this Chapter by making an irrevocable offer: (a) dedicating land to the City or a non - profit housing provider; (b) selling of W., 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 City Manager or designee. 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. 9.66.090 Fee waivers. The Condominium and Cooperative Tax described in Section 6.76.010 of the Santa Monica Municipal Code or any successor thereto and the Park and Recreation Facilities Tax established in Chapter 6.80 of Article 6 of the Santa Monica Municipal Code or any successor thereto shall be waived for required affordable housing units and for 30 %, 50 %, 80% and moderate - income dwelling units developed by the City or its ?i7 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. 9.56.100 Pricing requirements for affordable housing units. The City shall publish, on an annual basis, the 30 %, 50 %, 80 %, and moderate income household levels, and affordable rents for affordable housing units, adjusted for household size appropriate for the unit. 9.56.110 Eligibility requirements. (a) Only 30 %, 50 %, 80% 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 four or more units in the City's multi - family residential zones may themselves select income - qualified households which shall be subject to eligibility certification by the City. (b) The following individuals, by virtue of their position or relationship, are ineligible to occupy an affordable housing unit: (1) All employees and officials of the City of Santa Monica or its agencies, authorities, or commissions who have, by the authority of their position, policy- making authority or influence over the implementation of 21 this Chapter and the immediate relatives and employees of such City employees and officials; (2) The immediate relatives of the applicant or owner, including 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. 9.56.120 Relation to units required by Rent Control Board. 30 %, 50 %, 80% and moderate- income dwelling units developed as part of a market rate project, pursuant to replacement requirements of the Santa Monica Rent Control Board, shall count towards the satisfaction of this Chapter if they otherwise meet applicable requirements for this Chapter including, but not limited to, the income eligibility requirements, deed restriction requirements, and pricing requirements. New inclusionary units required by the Rent Control Board which meet the standards of this Chapter shall count towards the satisfaction of this Chapter. 9.56.130 Deed restrictions. 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. In addition to the administrative guidelines specifically required by other provisions of this Chapter, the City 22 Manager or designee shall be the designated authority to enter into recorded agreements with multi - family project applicants. 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. 9.56.150 Annual report. The City Manager or designee, shall submit a 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 in the future. This action may include, but not be limited to, amending the provisions of this Chapter or its implementation. 9.56.160 Principles and guidelines. The City Manager or designee, shall develop guidelines to implement this chapter, which guidelines shall be subject to approval of 23 the City Council. The guidelines shall include, but not be limited to, the methodology for the establishment and periodic adjustment of the base fee and the affordable housing unit development cost; for -sale affordable unit requirements, tenant and purchaser eligibility procedures; and additional requirements for exercise of the off -site option and land acquisition option. 9.56.170 Adjustments or waivers. (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 City Manager or 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. (c) In making a determination on an application to adjust or waive the requirements of this Chapter, the City Manager or designee, or City Council on appeal, may assume each of the following when applicable: 24 (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 City Manager or designee shall render a written decision within ninety days after a complete application is filed. The City Manager's or designee'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 is made in the manner provided in Part 9.04.20.24, Sections 9.04.20.24.010 through 9.04.20.24.050 of this Code or any successor thereto. (e) If the City Manager or designee, 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 City Manager or 4i designee, 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. 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, 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 30 days from its adoption. APPROVED AS TO FORM: 26 Approved and adopted this 25th day of June, 2013. am O'Connor, Mayor State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2429 (CCS) had its introduction on May 14, 2013, and was adopted at the Santa Monica City Council meeting held on June 25, 2013, by the following vote: Ayes: Councilmembers: Davis, Holbrook, McKeown, Vazquez, Winterer Mayor Pro Tern O'Day, Mayor O'Connor Noes: Councilmembers: None Absent: Councilmembers: None A summary of Ordinance No. 2429 (CCS) was duly published pursuant to California Government Code Section 40806. ATTEST: Sarah P. Gorman, City Clerk