R10903City Council Meeting: 08-25-2015
Attachment E
Santa Monica, California
RESOLUTION NUMBER 10x103 (CCS)
(City Council Series)
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 30% income households, 50% income households, 80% income households
or 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, pursuant to this methodology, on September 11, 2012, the City
Council adopted Resolution No. 10706 (CCS) which incrementally adjusted this unit
development cost by $2,296; and
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WHEREAS, pursuant to this methodology, on August 27, 2013, the City Council
adopted Resolution No. 10764 (CCS) which incrementally adjusted this unit development
cost by $2,314; and
WHEREAS, pursuant to this methodology, on August 26, 2014, the City Council
adopted Resolution No. 10834 (CCS) which incrementally adjusted this unit development
cost by $20,996; and
WHEREAS, Resolution No. 10230 (CCS), Resolution No. 10330 (CCS),
Resolution No. 10423 (CCS), Resolution No. 10530 (CCS), Resolution No. 10579 (CCS),
Resolution No. 10706 (CCS), Resolution No. 10764 (CCS), and Resolution No. 10834
(CCS) thereby established an affordable housing unit development cost of $312,609; and
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 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
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
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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 $15,318 to the
current affordable housing development cost of $312,609 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 Development Cost of $312,609
established by Resolution No. 10230 (CCS), Resolution No. 10330 (CCS), Resolution
No. 10423 (CCS), Resolution No. 10530 (CCS), Resolution No. 10579 (CCS), Resolution
No. 10706 (CCS), Resolution No. 10764 (CCS), and Resolution No. 10834 (CCS) shall
be Increased by $15,318.
SECTION 2. Resolution No. 10230 (CCS), Resolution No. 10330 (CCS),
Resolution No. 10423 (CCS), Resolution No. 10530 (CCS), Resolution No. 10579 (CCS),
Resolution No. 10706 (CCS), Resolution No. 10764 (CCS), and Resolution No. 10834
(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), Resolution No. 10579 (CCS), Resolution No. 10706 (CCS),
Resolution No. 10764 (CCS), or Resolution No. 10834 (CCS) in any respects.
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SECTION 3. 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:
ES MOUTRIE
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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. 10903 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 25th day of August, 2015, by the following vote:
AYES: Councilmembers
NOES: Councilmember:
ABSENT: Councilmember:
Himmelrich, O'Connor, O'Day, Winterer,
Mayor McKeown, Mayor Pro Tem Vazquez
None
Davis
ATTEST:
Sarah P. Gorman, City Clerk