R10902City Council Meeting: 08-25-2015
Attachment D
Santa Monica, California
RESOLUTION NUMBER iogt) - (CCS)
(City Council Series)
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 $0.59 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 $0.56 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on September 11, 2012, the City
Council adopted Resolution No. 10705 (CCS) which incrementally adjusted these base
fees by $0.26 per square foot for new market rate condominiums and $0.22 per square
foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 27, 2013, the City Council
adopted Resolution No. 10763 (CCS) which incrementally adjusted these base fees by
$0.26 per square foot for new market rate condominiums and $0.22 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 26, 2014, the City Council
adopted Resolution No. 10833 (CCS) which incrementally adjusted these base fees by
$2.34 per square foot for new market rate condominiums and $2.00 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),
Resolution No. 10578 (CCS), Resolution No. 10705 (CCS), Resolution No. 10763 (CCS),
and Resolution No. 10833 (CCS) thereby established an affordable housing unit base fee
for condominiums of $34.80 per square foot and an affordable housing unit base fee for
apartments of $29.79; and
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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 14, 2015, the City published a notice that at the August 25,
2015 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 August 20, 2015; and
WHEREAS, a copy of HR&A's analysis has been available in the City Clerk's
Office for public review since August 14, 2015; and
WHEREAS, based on this analysis, an increase in the amount of $1.46 per square
foot of the current Affordable Housing Unit Base Fee of $29.79 for apartments and an
increase in the amount of $1.71 per square foot of the current Affordable Housing Unit
Base Fee of $34.80 for 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 $34.80 per square foot established by Resolution No. 10149 (CCS),
Resolution No. 10229 (CCS), Resolution No. 10329 (CCS), Resolution No. 10422 (CCS),
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Resolution No. 10529 (CCS), Resolution No. 10578 (CCS), Resolution No. 10705 (CCS),
Resolution No. 10763 (CCS), and Resolution No. 10833 (CCS) shall be increased by
$1.71 per square foot of floor area.
SECTION 2. The current Affordable Housing Unit Base Fee for new market rate
apartment of $29.79 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), Resolution No. 10578 (CCS), Resolution No. 10705 (CCS),
Resolution No. 10763 (CCS), and Resolution No. 10833 (CCS) shall be increased by
$1.46 per square foot of floor area.
SECTION 3. Resolution No. 10149 (CCS), Resolution No. 10229 (CCS),
Resolution No. 10329 (CCS), Resolution No. 10422 (CCS), Resolution No. 10529 (CCS),
Resolution No. 10578 (CCS), Resolution No. 10705 (CCS), Resolution No. 10763 (CCS),
and Resolution No. 10833 (CCS) shall remain in full force and effect and shall not be
superseded or altered by this resolution in any way.
SECTION 4. 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 1, 2015.
APPROVED AS TO FORM:
MAR NA JOS MOUT IE
City orney
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Adopted and approved this 25th day of August, 2015.
Kevin McKeown, Mayor
I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution No. 10902 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 25f" day of August, 2015, by the following vote:
AYES: Councilmembers: Himmelrich, O'Connor, O'Day, Winterer,
Mayor McKeown, Mayor Pro Tem Vazquez
NOES: Councilmember: None
ABSENT: Councilmember: Davis
ATTEST:
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Sarah P. Gorman, City Clerk