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O2468City Council Meeting: October 14, 2014 Santa Monica, California ORDINANCE NUMBER 2468 (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 9.56.050 TO ESTABLISH MINIMUM OCCUPANCY STANDARDS FOR AFFORDABLE HOUSING UNITS WHEREAS, the City's Affordable Housing Production Program ( "AHPP ") establishes a range of affordable housing unit bedroom sizes, with a minimum total floor area for each bedroom size, that may be developed under specified circumstances; and WHEREAS, the AHPP does not establish minimum occupancy requirements (i.e., minimum household sizes) for these affordable housing units; and WHEREAS, on December 11, 2012, the City Council directed staff to assess the establishment of minimum occupancy requirements; and WHEREAS, minimum occupancy standards for each unit size would help ensure that larger units actually house larger families; and WHEREAS, Policy 1.6 of the City's Housing Element provides, in part, that the City should maintain development standards that promote the development of family housing; and WHEREAS, the program for Objective 2.a of the City's Housing Element provides, in part, that the City should revise the AHPP as appropriate to address the housing needs of the community; and WHEREAS, the proposed minimum occupancy standards mirror Housing and Urban Development's standards for publically funded affordable housing. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 9.56.050 is hereby amended to read as follows: 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 rental units for 80% income households if these rental units are provided by the applicant in accordance with Civil Code PA 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); (3) 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 K 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) 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, 13 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. (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 0 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 and minimum number of occupants, depending upon the number of bedrooms provided, no less than the following: 0 bedrooms 500 square feet 1 occupant 1 bedroom 600 square feet 1 occupant 2 bedrooms 850 square feet 2 occupants 3 bedrooms 1,080 square feet 3 occupants 4 bedrooms 1,200 square feet 5 occupants 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 successor thereto and 9.04.10.14.050 or any successor thereto and the waiver /modification of development standards provided by 6 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. Q) 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. 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. 0 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: Approved and adopted this 14th day of October, 2014. Pam 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. 2468 (CCS) had its introduction on February 25, 2014, and was adopted at the Santa Monica City Council meeting held on October 14, 2014, by the following vote: Ayes: Councilmembers: Davis, Holbrook, McKeown, Vazquez, Winterer Mayor O'Connor, Mayor Pro Tern O'Day Noes: Councilmembers: None Absent: Councilmembers: None A summary of Ordinance No. 2468 (CCS) was duly published pursuant to California Government Code Section 40806 . ATTEST: Sarah P. Gorman, City Clerk