r-10986City Council Meeting: 08-23-2016 Santa Monica, California
RESOLUTION NUMBER VM)O (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 9.64.070(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, now renumbered Section 9.64.070, 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 9.64.020 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, pursuant to this methodology, on August 25, 2015, the City Council
adopted Resolution No. 10903 (CCS) which incrementally adjusted this unit
development cost by $15,318; 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), Resolution No.
10834 (CCS), and Resolution No. 10903 (CCS) thereby established an affordable
housing unit development cost of $327,927; and
WHEREAS, in accordance with Santa Monica Municipal Code Section 9.64.070
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 12, 2016, the City published a notice that at the August
23, 2016 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
WHEREAS, the City republished this notice on August 18, 2016; and
WHEREAS, a copy of HR&A's analysis has been available in the City Clerk's
Office for public review since August 12, 2016; and
WHEREAS, based on this analysis, an increase in the amount of $11,805 to the
current affordable housing development cost of $327,927 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
327,927 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), Resolution No.
10834 (CCS), and Resolution No. 10903 (CCS) shall be increased by $11,805.
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), Resolution No.
10834 (CCS), and Resolution No. 10903 (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),
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Resolution No. 10579 (CCS), Resolution No. 10706 (CCS), Resolution No. 10764
CCS), Resolution No. 10834 (CCS), or Resolution No. 10903 (CCS) in any respects.
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,
2016.
APPROVED AS TO FORM:
MARSFTA JON. ' W T IE
City Attorney
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Adopted and approved this 231d day of August, 2016.
I, Denise Anderson -Warren, City Clerk of the City of Santa Monica, do hereby
certify that the foregoing Resolution No. 10986 (CCS) was duly adopted at a meeting of
the Santa Monica City Council held on the 23rd day of August, 2016, by the following
vote:
AYES: Councilmembers McKeown, Davis, Himmelrich, O'Day, O'Connor,
Mayor Pro Tem Winterer, Mayor Vazquez
NOES: None
ABSENT: None
ATTEST:
N & 1 4- G J d I o 'Ol/VC1 ,4jj d
Denise Anderson -Warren, City Clerk