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SR 04-23-2019 7B City Council Report City Council Meeting: April 23, 2019 Agenda Item: 7.B 1 of 10 To: Mayor and City Council From: David Martin, Director, City Planning Subject: Introduction for first reading and adoption of an Emergency Interim Zoning Ordinance related to Single-Room Occupancy (SRO) uses. The proposed interim amendments pertain to development standards, land use regulations, residential use classifications, and definitions, with consideration given to changing regional housing trends, and consistent with housing-related goals and policies set forth in the 2010 Land Use and Circulation Element (LUCE) and 2017 Downtown Community Plan. Recommended Action Staff recommends that the City Council introduce and adopt an Emergency Interim Zoning Ordinance related to Single-Room Occupancy uses in order to implement housing goals and policies set forth in the 2010 Land Use and Circulation Element and 2017 Downtown Community Plan and with consideration given to emerging regional housing trends. Executive Summary Among the City of Santa Monica’s highest priorities is to promote the development of a diverse housing stock of both affordable and market-rate units meeting the needs of the full range of family and household sizes. On March 26, Council adopted an Urgency Interim Zoning Ordinance No. 2604 (CCS) prohibiting market-rate (non-rent-restricted) Single-Room Occupancy (SRO) uses citywide for a period of 45 days in order to prohibit SRO uses that are not 100% Affordable Housing Projects or certain specialized housing uses such as emergency shelters, transitional housing, and supportive housing as set forth in the Santa Monica Municipal Code. The Council adopted Ordinance No. 2604 (CCS) in order to pause for a limited 45-day period to provide time to further study options to manage market-rate SRO projects and to ensure that citywide zoning standards consistent with City needs and objectives that create a range of housing options that include physical building features that promote social connectedness and enhance community wellbeing. The 45-day prohibition on 2 of 10 market-rate SRO uses was also established to provide time to consider whether additional requirements related to physical design and/or amenity plans are necessary for projects with market-rate SRO units. Following up on Council’s adoption of Ordinance No. 2604 (CCS), and based on staff’s analysis of housing policy objectives and review of applicable laws and recommendations from the Planning Commission, this emergency interim zoning proposes interim changes to development standards for market-rate SROs uses. This would allow further study of the market-rate SRO housing type, and supports the following objectives, consistent with state law, and in the context of the City’s broader housing-first strategy: 1. Differentiate between the market-rate SRO housing type from SROs that have traditionally been comparatively affordable housing in urban centers for service workers, low-income singles and the retired, or provided as supportive and transitional housing consistent with the California Health and Safety Code. 2. Create different standards for Market-Rate Single-Room Occupancy Housing in order to accomplish the following: a. Respond to emerging regional housing trends by including specific requirements addressing livability and quality of life for market-rate SRO units that include kitchen and bathroom facilities and are geared primarily toward single-person households and with secondary emphasis on others who are at various stages of life including couples, retired individuals, and/or other downsizing renters. 3. Maintain current standards for Single-Room Occupancy Housing that are a 100% affordable housing project or specialized housing use as outlined in this report to accomplish the following: a. Continue to underscore the necessity for creating affordable housing and certain specialized housing uses; maintain flexibility for these uses and 3 of 10 limit barriers for projects by non-profit affordable housing and social service providers in the City. The Planning Commission discussed the concepts for the proposed emergency IZO on April 3, 2019 and voted 6-1 in favor of supporting the staff recommendation and also provided additional comments that are summarized in this report. While such a nuanced approach may provide a more livable alternative for single- person households, the proliferation of market-rate micro units may pose a significant threat to the City’s efforts to provide a diverse housing stock of both affordable and market-rate units meeting the needs of the full range of family and household sizes. Council may opt to continue to consider whether additional steps should be taken to further restrict such units in furtherance of the goals of the City’s Land Use and Circulation Element, the Downtown Community Plan and the Housing Element. Background Council’s March 26th Action The Council’s March 26th adoption of a 45-day prohibition on SRO uses focused in part on citywide and Downtown Community Plan (DCP) housing policy objectives that envisioned a robust mix of housing types in the plan area serving a wide range of household sizes and income levels. As summarized in the Council’s March 26th staff report, since July 2018, there have been six Tier 1 Administrative Approval applications filed for mixed-use housing projects in the plan area that propose 100% Single-Room Occupancy Housing. All 363 units proposed in the six projects range from 219-373 SF in size; include sleeping, bathroom, and cooking facilities; and provide 5% of the total units deed-restricted for Extremely-Low Income occupants pursuant to AHPP requirements. Five of these six market-rate SRO projects supersede previously- approved or pending project applications, including two 100% Affordable Housing Projects, that proposed various mixtures of studio, one-, two-, and three-bedroom units. The urgency IZO adopted by Council on March 26th went into effect at the time of 4 of 10 adoption, applies to all projects proposing market-rate SRO uses that have not yet been issued a building permit, and expires on May 10, 2019. For the purposes of the urgency IZO, Single-Room Occupancy uses include SRO Housing and Structures as defined by the Zoning Ordinance and residential units that may, but are not required, to have kitchen or bathroom facilities and are no more than 375 SF in size. Planning Commission Recommendation On April 3, 2019, the Planning Commission discussed the proposed concepts for interim regulations pertaining to market-rate SRO Housing. After an in-depth discussion, the Commission voted 6-1 in favor of staff’s conceptual text amendments applicable on an interim basis, with direction to staff to explore other housing models and return with an ordinance to amend the Zoning Ordinance that would address various emerging housing models more comprehensively. The dissenting Commissioner stated that the proposed requirement for a kitchen and bathroom in market-rate SRO Housing is unnecessary. A more detailed summary of the Commission comments are provided as Attachment B. Discussion Single-Room Occupancy Uses Defined Single-Room Occupancy Housing is a residential use classification and is currently listed as a sub-set of Multiple-Unit Dwelling set forth in (SMMC Section 9.51.020(A)(1)(d)(ii)). Please see Attachment “A” for complete list of relevant definitions and land use classifications associated with this staff report. The Zoning Ordinance currently classifies Single-Room Occupancy Housing as a Multiple-Unit Dwelling sub-type and is a permitted use in most districts in the City. Where permitted, SRO Housing proposed in compliance with Tier 1 development standards is subject to a non-discretionary Administrative Approval application and must comply with the Affordable Production Program set forth in SMMC Chapter 9.64. Housing Policy and the Need to Develop a Range of Housing Types Through a variety of discussions over the years with community input at the Council, 5 of 10 Planning Commission, and Housing Commission, concern has been consistently expressed about projects that exclusively propose small or micro-units in new housing projects that are not 100% affordable housing projects. In particular, a need has been identified for development of new affordable housing and supportive housing for all household sizes, as well as market-rate multi-family apartments for all household sizes near transit in Santa Monica. These discussions have occurred at Council, Planning Commission, and Housing Commission most recently in the context of the 2017 Downtown Community Plan, the 2015 Zoning Ordinance update, various amendments to the City’s Affordable Housing Production Program (AHPP), and preparation of the City’s Housing Element. Changing Regional Housing Trends Housing development patterns and trends in the local and regional context have shown a shift toward developers proposing higher density multi-family projects to offset rising land value and construction costs. The shift to smaller units compared to traditional standards for studios or one-bedroom apartments, often referred to SRO units or micro units, has been seen regionally in urban-core locales. Development trends illustrate the movement toward smaller average unit size, particularly in high-density, expensive metropolitan markets on the US coasts where location-related factors, including proximity to work and school, neighborhood amenities, and public transportation, are key factors. While SRO Housing has traditionally served a role in providing comparably affordable housing in urban centers for service workers, low-income singles and the retired, or served as a housing type for supportive and transitional housing, emerging trends show that in higher density metropolitan areas, a focus has been on development of market- rate rental apartment projects with SRO sized units. These projects include units with kitchen and bathroom facilities and also prioritize amenities outside of the unit for tenants, such as social gathering spaces both inside and outdoors, fitness rooms, and communal kitchens for larger gatherings and events. 6 of 10 In response to changing housing trends that reflect a balance between location, overall unit square footage, and amenities, additional consideration should be given to how livability is addressed through the physical design for market-rate Single-Room Occupancy Housing. Proposed Emergency IZO Concepts While there is substantial evidentiary and policy support to continue Urgency Interim Zoning Ordinance No. 2604’s prohibition of market-rate SRO uses citywide, there is also support to authorize market rate SROs while imposing additional development standards and amenities requirements, at least in the interim while Staff conducts a more comprehensive analysis. While a difficult policy choice, staff opted to present the latter choice to the Planning Commission who supported this approach. Staff further presents this choice to the Council here, especially in light of the Planning Commission’s April 3, 2019 recommendation. More specifically, the following proposed emergency IZO amendments have been brought forward with consideration given to state law requirements along with the numerous discussions held over the years by City staff, decisionmakers, and community members expressing the need for a diverse mix of quality housing options built in the City. This mix of housing types – affordable housing, supportive housing, and market-rate – would serve a wide range of household sizes and income levels as a cornerstone for a complete community. These housing policy discussions have also identified the need to consider changing regional housing trends and to ensure that livability and wellbeing are factored in via the physical design of different housing types and sizes. This emergency IZO proposes to restructure the development standards for SROs, without limiting the overall number of such units or structures, and to distinguish between market-rate SRO Housing and Structures (units that are not rent-restricted) from those projects that are proposed as 100% Affordable Housing Projects and certain specialized housing uses such as emergency shelters, transitional housing, and supportive housing as defined in SMMC Section 9.51.020. 7 of 10 The proposed interim approach set forth in this emergency IZO responds to both changing housing trends for market-rate housing products and supports the continued need to promote affordable housing and certain specialized housing uses and remove barriers for projects by non-profit affordable housing and social service providers in the City while allowing the City to further study whether the market-rate SRO housing type is consistent with the City’s overall housing policies and goals. More specifically, this emergency IZO sets forth the following: Create New SRO Structure Standards for Market-Rate SRO Projects. • This concept would allow for Tier 1 SRO Housing without limiting the number of units but require development standards and amenities differentiation between market-rate SRO Housing and SRO Housing that is a 100% affordable housing project or a specialized housing use. • This concept would preserve the current standards set forth in SMMC Chapter 9.31 (Standards for Special Uses and Activities) for 100% affordable housing projects and specialized housing uses. Maintaining current standards for these types of SRO projects is recommended in recognition of the need to continue to promote affordable housing and certain specialized housing uses, and to limit barriers for projects by non-profit affordable housing and social service providers in the City. • Revised standards set forth in SMMC Chapter 9.31 for SRO Structures would only apply to market-rate SRO Housing and would require the following in order to better ensure that this housing type incorporates livability factors that will in turn help promote community wellbeing: 1. Minimum of 220 SF in size, excluding separate bathroom and separate closet per the International Building Code’s definition of an Efficiency Dwelling Unit. 8 of 10 2. No individual residential unit may exceed 375 square feet within an SRO Structure. An individual unit exceeding 375 square feet may be incorporated in a Duplex or Multiple-Unit Dwelling/Structure as set forth in SMMC Section 9.51.020(A)(1). 3. Must provide a separate bathroom. 4. Must provide a kitchen sink, cooking appliance and refrigeration facilities, each having a clear working space of not less than 30 inches in front, per the International Building Code’s definition of an Efficiency Dwelling Unit. 5. Enhanced Common Area requirements, provided in addition to any open space requirements specified by the Zoning Code or Area/Specific Plan: a. Increase from 4 to 10 square feet of common area per unit; b. Increase from 200 to 400 square feet of interior ground floor entry area with requirement to be programmed and operated with tenant amenities; c. New requirement for minimum of 200 square feet of common area located on each floor dedicated to and programmed for tenant amenities that provide a central focus for tenant social interaction, including but limited to a game room, communal kitchen, shared workspace, fitness, etc. d. New specification that dedicated common area space that is, at a minimum, the same size on the roof and programmed as a tenant amenity would satisfy the common area requirement for one building floor. 6. Requirements from current SRO Structures standards that would remain the same: a. Tenancy of SRO units shall be for 30 or more days. b. An SRO Structure with 10 or more units shall provide full-time on- site management. An SRO structure with fewer than 10 units shall provide a management office on-site. 9 of 10 Applicability The proposed Emergency Interim Zoning Ordinance would be effective immediately after Council adoption and expire in 60 days (June 22, 2019), pursuant to Santa Monica Charter Section and SMMC Section 9.46.090(C), unless otherwise extended by Council up to a total of 60 months. Staff recommends that the Emergency IZO apply to any market-rate SRO Housing Project that does not have a building permit as of March 26, 2019. If Council adopts this emergency IZO, prior to its 60-day expiration, staff would recommend an extension of the interim ordinance in order to develop and implement permanent revisions applicable SROs uses, as necessary. Environmental Analysis The proposed interim ordinance is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation Guidelines (common sense exemption). Based on the evidence in the record, including, but not limited to, evidence that the interim zoning provisions represent a temporary change to development standards that would be more restrictive than existing development standards, and would not result in increased mass or floor area, it can be seen with certainty that there is no possibility that the proposed interim ordinance would have a significant effect on the environment. Therefore, no further environmental review under CEQA is required. Next Steps The proposed Emergency Interim Zoning Ordinance would expire 60 days from the date of adoption on June 22, 2019. If Council adopts this emergency ordinance, prior to its 60-day expiration, staff would seek an extension of this interim ordinance to develop and implement permanent revisions applicable to SRO uses, as necessary, and in coordination with the Council’s anticipated review of the City’s medium term housing policies and analysis of new housing models later this summer. Another approach, if directed by the Council, could be a more permanent prohibition of market-rate SRO uses, consistent with all applicable laws, in order to ensure a balanced range of housing types meeting all the objectives of local land use policies designed to provide a diverse 10 of 10 housing stock of both affordable and market-rate units meeting the needs of the full range of family and household sizes. . A permanent prohibition of market-rate SROs would be analyzed in the context of the City’s broader housing objectives and studied relative to the impact such a prohibition could have on the Zoning Ordinance’s current regulations as well as all applicable State laws. First reading of such an ordinance could be presented to Council as soon as May 14, 2019. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared By: Roxanne Tanemori, Principal Planner Approved Forwarded to Council Attachments: A. Attachment A Definitions Council SRO Emergency IZO 4-23-19 B. Attachment B Planning Commission Comments Council SRO Emergency IZO 4- 23-19 C. PCD - Emergency IZO - Single Room Occupancy (SRO) - 04.23.19 D. Written Comments Attachment A Zoning Ordinance Definitions of Single-Occupancy Housing and Related Terms Single-Occupancy Room Housing For the purposes of this staff report, Single-Room Occupancy Housing includes SRO Structures, with residential units that may, but are not required, to have kitchen or bathroom facilities; must have at least 150 SF of floor area, excluding closet and bathroom; and are less than 375 SF in size. More specifically, Single-Room Occupancy Housing is a residential use classification and is currently listed as a sub-set of Multiple- Unit Dwelling set forth in (SMMC Section 9.51.020(A)(1)(d)(ii)): A. Residential Use Classifications. 1. Residential Types. d. Multiple-Unit Dwelling. 2 or more dwelling units within a single building or within 2 or more buildings on a site or parcel. Types of multiple -unit dwellings include garden apartments, senior housing developments, and multi-story apartment and condominium buildings. This classification includes transitional housing in a multiple-unit format. The classification is distinguished from group residential facilities. ii. Single-Room Occupancy Housing. Multiple-unit residential buildings containing housing units that may have kitchen and/or bathroom facilities and are guest rooms or efficiency units as defined by the State Health and Safety Code. Each housing unit is occupied by no more than two persons and is offered on a monthly rental basis or longer. See Division 3, Section 9.31.330, Single Room Occupancy Structures, for further details. Dwelling Unit The definition of Dwelling Unit is provided as follows: 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. A dwelling unit shall exceed 375 square feet in size pursuant to SMMC Section 9.52.020.0730. Single-Room Occupancy Structures SRO Housing is also defined by standards for specific uses established for SRO Structures (SMMC Section 9.31.330): 9.31.330 Single Room Occupancy Structure Single Room Occupancy (SRO) structures shall be located, developed, and operated in compliance with the following standards: A. Maximum Occupancy. Each SRO unit shall be designed to accommodate a maximum of 2 persons. B. Minimum Size. An SRO unit must have at least 150 square feet of floor area, excluding closet and bathroom. No individual unit may exceed 375 square feet. C. Minimum Width. An SRO of one room shall not be less than 12 feet in width. D. Entrances. All SRO units must be independently accessible from a single main entry, excluding emergency and other service support exits. E. Bathroom. An SRO unit is not required to but may contain partial or full bathroom facilities. A partial bathroom facility shall have at least a toilet and sink; a full facility shall have a toilet, sink and bathtub, shower or bathtub/shower combination. If a full bathroom facility is not provided, common bathroom facilities shall be provided in accordance with the California Building Code for congregate residences with at least one full bathroom per floor. F. Closet. Each SRO unit shall have a separate closet. G. Common Area. 4 square feet per living unit shall be provided, excluding janitorial storage, laundry facilities and common hallways. At least 200 square feet in area of interior common space provided as a ground floor entry area that provides a central focus for tenant social interaction and meetings. H. Tenancy. Tenancy of SRO units shall be for 30 or more days. I. Facility Management. An SRO structure with 10 or more units shall provide full-time on-site management. An SRO structure with fewer than 10 units shall provide a management office on-site. 100% Affordable Housing Project Pursuant to SMMC Section 9.52.0050, a 100% Affordable Housing Project is defined as follows: Housing projects with a minimum of 25% of the units deed restricted or restricted by an agreement approved by the City for occupancy by 60% Income Households or less and the remainder of the housing units are deed restricted or restricted by an agreement approved by the City for occupancy by 80% Income Households or less. Such projects may include nonresidential uses not to exceed 33% of the project’s total floor area. Specialized Housing Uses If an SRO Structure is developed as a 100% Affordable Housing Project as defined by SMMC Section 9.52.0050 and/or is one of the following specialized housing uses set forth in SMMC Section 9.51.020, revised standards for specific uses (SRO Structure) shall not apply: A. Residential Use Classifications. 3. Elderly and Long-Term Care. Establishments that provide 24-hour medical, convalescent or chronic care to individuals who, by reason of advanced age, chronic illness or infirmity, are unable to care for them selves, and is licensed as a skilled nursing facility by the State of California, including, but not limited to, rest homes, nursing homes, and convalescent hospitals, but not Residential Care, Hospitals, or Clinics. 4. Emergency Shelter. A temporary, short-term residence providing housing with minimal supportive services for homeless families or individual persons where occupancy is limited to 6 months or less, as defined in Section 50801 of the California Health and Safety Code. Medical assistance, counseling, and meals may be provided. See Division 3, Section 9.31.130, Emergency Shelters, for further details. 7. Residential Facility. Facilities that provide permanent living accommodations and 24-hour primarily non-medical care and supervision for persons in need of personal services, supervision, protection, or assistance for sustaining the activities of daily living. Living accommodations are shared living quarters with or without separate kitchen or bathroom facilities for each room or unit. This classification includes facilities that are operated for profit as well as those operated by public or not-for-profit institutions, including group homes for minors, persons with disabilities, people in recovery from alcohol or drug addictions, and hospice facilities. See Division 3, Section 9.31.270, Residential Care Facilities, for further details. a. Residential Care, General. A Residential Facility licensed by the State of California and providing care for more than 6 persons. b. Residential Care, Limited. A Residential Facility licensed by the State of California providing care for 6 or fewer persons. c. Residential Care, Senior. A housing arrangement chosen voluntarily by the resident, the resident’s guardian, conservator or other responsible person, where residents are 60 years of age or older and where varying levels of care and supervision are provided as agreed to at the time of admission or as determined necessary at subsequent times of reappraisal. This classification includes continuing care retirement communities and life care communities licensed for residential care by the State of California. d. Hospice, General. A facility that provides residential living quarters for more than 6 terminally ill persons. e. Hospice, Limited. A facility that provides residential living quarters for up to 6 terminally ill persons. 8. Supportive Housing. Housing which meets the definition of Health and Safety Code Section 50675.14 with no limit on length of stay that are occupied by the target population as defined in subdivision (d) of Sec tion 53260 of the California Health and Safety Code, and that are linked to on-site or off-site services that assist supportive housing residents in retaining the housing, improving their health status, and maximizing their ability to live and, where possible, work in the community. Supportive housing as defined by Subdivision (b) of Section 50675.14 may be provided in a multiple-unit structure or group residential facility. Facilities may operate as licensed or unlicensed facilities subject to applicable State requirements. 9. Transitional Housing. Dwelling units with a limited length of stay that are operated under a program requiring recirculation to another program recipient at some future point in time. Transitional housing may be designated for homeless or recently homeless individuals or families transitioning to permanent housing as defined in subdivision (h) of Section 50675.2 of the California Health and Safety Code. Facilities may be linked to onsite or offsite supportive services designed to help residents gain skills needed to live independently. Transitional housing may be provided in a variety of residential housing types (e.g., multiple - unit dwelling, single-room occupancy, group residential, single unit dwelling). This classification includes domestic violence shelte rs. See Division 3, Section 9.31.110, Congregate and Transitional Housing, for further details. Attachment B Summary of Planning Commission Comments, April 3, 2019  It would be preferable to address all the policy issues raised around the emerging housing models at once and in a more comprehensive manner. There is a need for the City to explore a wide range of these housing types, including SRO housing, co-living, corporate housing, student housing, etc., and bring back more detailed information so the Planning Commission can discuss and make recommendations before the proposed SRO Housing IZO expires in a year.  As the broader discussion of new housing models continues, the City needs to explore creating regulations pertaining to tenancy, leasing only to natural persons, and address the concept requiring certain types of housing to be for long-term tenancy.  One Commissioner states that requiring kitchen and bathrooms in these units does not provide the level or type of flexibility needed in an SRO housing project.  Consider a cap on the number of residents who can live in a unit in an SRO Structure. These projects will increase overall density in an area.  The discussion on SRO units has gone back and forth over the years; there is more openness to the idea of smaller units but flexibility is necessary. The requirement for more common area needs to be thought through – as those spaces may not be used as needs change.  Consider that if we create diverse communal spaces and activities in places like the 3rd Street Promenade, perhaps just a bedroom rental is fine. The need to focus on long-term tenancy is very important in the discussion of regulations for new housing models.  The market drives housing products and the City must be flexible and adaptable to change.  A mix of residents in the Downtown is a policy objective. We need to consider how to resolve the issues around this housing type; we need to acknowledge that construction costs have risen and times have changed. Keep these ideas in mind as staff moves forward on the housing discussion Citywide, and consider the need for walkable neighborhoods in the Bergamot Area Plan and Memorial Park Area Plan. Consider whether parking is required in these areas for market -rate SRO projects.  Proposed IZO is a good start, but it will be better for staff and the Commission to have more time to consider these complex issues.  The idea of requiring more shared spaces and common areas is a positive and these shared areas are a necessity for co-living, SRO type housing, and other flexible housing types. We should keep minimum requirements.  Remember that projects that are built regarding small units and co-living type housing may be modified in the future when the market changes and smaller units are recombined to make larger but fewer units. How staff proposes to address the parking requirement today for smaller units/shared living models is something to consider in the event that larger units are formed in the future. 1 City Council Meeting: April 23, 2019 Santa Monica, California ORDINANCE NUMBER _____ (CCS) (City Council Series) AN EMERGENCY INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADOPTING DEVELOPMENT STANDARDS FOR SINGLE-ROOM OCCUPANCY USES THAT ARE NOT ONE-HUNDRED PERCENT AFFORDABLE HOUSING PROJECTS OR CERTAIN TYPES OF SPECIALIZED HOUSING SUCH AS EMERGENCY SHELTERS, TRANSITIONAL HOUSING AND SUPPORTIVE HOUSING WHEREAS, on July 6, 2010 the City Council adopted the Land Use and Circulation Element (“LUCE”) of the City’s General Plan; and WHEREAS, on December 10, 2013, the City Council adopted the 2013 - 2021 Housing Element of the City’s General Plan; and WHEREAS, the City’s new Zoning Ordinance, Chapters 9.01 through 9.52 of Article 9 of the Santa Monica Municipal Code (“Zoning Ordinance”), became effective on July 24, 2015; and WHEREAS, on July 25, 2017, the City Council adopted the Downtown Community Plan (“DCP”) and associated amendments to the Zoning Ordinance; and WHEREAS, each establishes and implements goals and policies that emphasize the need to provide a variety of housing types, sizes, and affordability levels in order to accommodate the residents of all incomes, family situations, and stages of life; and 2 WHEREAS, since July 2018, the City has received six applications for mixed-use market-rate housing projects in the Downtown Community Plan Area that propose 100% Single-Room Occupancy Housing; and WHEREAS, such a proliferation of a single use and housing type is inconsistent with the City’s goals and policies related to the Downtown Community Plan Area; and WHEREAS, an over-concentration of market-rate Single-Room Occupancy units could impact the future population of the City as such small units tend to cater to small households and would unduly limit housing options for larger households; and WHEREAS, the LUCE, Zoning Ordinance, Downtown Community Plan, and related regulations place reasonable density, setback, lot coverage and height restrictions to preserve the character of the City’s neighborhoods, protects against burdens overly intense development would impose on the City and safeguard the overall quality of life and wellbeing of the City’s residents and visitors; and WHEREAS, Single-Room Occupancy uses are subject to the City’s regulations related to density, setback, lot coverage and height; and WHEREAS, such an over-concentration of Single-Room Occupancy units will not create a neighborhood setting that promotes social connectedness and community wellbeing; and WHEREAS, on March 26, 2019, the City Council adopted urgency Interim Zoning Ordinance Number 2604 (CCS) to temporarily prohibit Single-Room Occupancy uses that are not one-hundred percent affordable housing projects or 3 certain types of specialized housing, including, but not limited to, emergency shelters, transitional housing, and supportive housing (“specialized housing”), in order to permit a more comprehensive review while ensuring the availability of housing for those most in need; and WHEREAS, the temporary prohibition was approved to allow the City to study potential permanent regulations that would ensure the City provides a robust mix of housing available to a diverse population consisting of persons from all income levels, family situations, and stages of life; and WHEREAS, under urgency Interim Zoning Ordinance 2604, authorized Single-Room Occupancy uses continue to be permitted in every area of the City zoned for residential use without any numerical limitation ; and WHEREAS, the prohibition established under urgency Interim Zoning Ordinance 2604 expires on May 10, 2019; and WHEREAS, the City desires to continue its study of potential permanent regulations for Single-Room Occupancy uses that are not one hundred percent affordable or specialized housing; and WHEREAS, as that study moves forward, the City desires to ensure that any such Single-Room Occupancy uses afford livability and quality of life for residents of those projects and promote a sense of social connectedness and community wellbeing by adopting interim development standards without placing a numerical limitation; and WHEREAS, the City desires to maintain current standards for Single-Room occupancy uses that are one-hundred percent affordable housing projects and 4 specialized housing to maximize flexibility and limit barriers for projects by nonprofit affordable housing and social service providers in the City; and WHEREAS, the City Council finds and declares that there is a current and immediate threat to public health, safety and welfare that requires the adoption of this ordinance, in that creating development standards for Single-Room Occupancy uses that are not one-hundred percent affordable housing projects or specialized housing on an interim and immediate basis is necessary to protect goals and policies for maintaining a diverse community and creating residential uses to meet a diverse community’s needs in terms of housing type, size, and availability for different income levels; ensuring livability and quality of life for the City’s residents; and encouraging social connectedness and community wellbeing. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Interim Zoning Regulations. Santa Monica Municipal Code Section 9.31.335 is hereby added to read as follows: 9.31.335 Single Room Occupancy Structure, Market Rate A. Single Room Occupancy (SRO) structures, units and uses shall be located, developed, and operated in compliance with the following standards unless the proposed project is one of the following, which shall be subject to the standards for Single Room Occupancy Structures set forth in Section 9.31.330: 1. A 100% Affordable Housing Project, as set forth in Section 9.52.0050; 5 2. One of the following specialized housing uses: a. Elderly and Long-Term Care as set forth in Section 9.51.020(A)(3); b. Emergency Shelter as set forth in Section 9.51.020(A)(4); c. Residential Facility as set forth in Section 9.51.020(A)(7); d. Supportive Housing as set forth in Section 9.51.020(A)(8); e. Transitional Housing as set forth in Section 9.51.020(A)(9); B. Maximum Occupancy. Each SRO unit shall be designed to accommodate a maximum of 2 persons. C. Minimum Size. An SRO unit must have at least 220 square feet of floor area, excluding closet and bathroom in accordance with International Building Code Section 1208.4, or successor thereto. No individual unit may exceed 37 5 square feet within an SRO structure; an individual unit exceeding 375 square feet may be incorporated in a Duplex or Multiple-Unit Dwelling/Structure as set forth in Section 9.51.020(A)(1). D. Minimum Width. An SRO of one room shall not be less than 12 feet in width. E. Entrances. All SRO units must be independently accessible from a single main entry, excluding emergency and other service support exits. F. Bathrooms. An SRO unit must contain a separate bathroom with a toilet, sink, and bathtub or shower in accordance with International Building Code Section 1208.4, or successor thereto. 6 G. Kitchens. An SRO unit must contain a kitchen sink, cooking appliance and refrigeration facilities, each having a clear working space of not less than 30 inches in front, in accordance with International Building Code Section 1208.4, or successor thereto. H. Closets. Each SRO unit shall have a separate closet. I. Common Areas. The following common area shall be provided: 1. 10 square feet per living unit shall be provided, excluding janitorial storage, laundry facilities and common hallways. 2. At least 400 square feet in area of interior common space shall be provided as a ground floor entry area and shall include tenant amenities that provide a central focus for tenant social interaction and meetings. 3. At least 200 square feet of interior common area shall be provided for each floor above the ground floor. These common areas shall include tenant amenities that provide a central focus for tenant social interaction, including but not limited to lounge/game room, workspace, fitness, communal kitchen, or for other similar activities. Common area of the same size dedicated for such activities provided on the roof shall satisfy the requirement for one individual floor in a structure. Common area on the roof shall comply with all other requirements of the Municipal Code. J. Tenancy. Tenancy of SRO units shall be for 30 or more days. 7 K. Facility Management. An SRO structure with 10 or more units shall provide full-time on-site management. An SRO structure with fewer than 10 units shall provide a management office on-site. (C) Applicability. Unless otherwise required by law, any project that has been issued a valid building permit on or before March 26, 2019, shall have a vested right to proceed without complying with this Interim Zoning Ordinance. SECTION 2. Based on the findings contained in this ordinance and material presented in the accompanying Staff Report, the City Council finds that there is a current and immediate threat to the public health, safety, and welfare necessitating the adoption of this Ordinance by emergency, and that the approval of additional subdivisions, use permits, variances, building permits or any other applicable entitlement for use which is otherwise required in order to comply with the current zoning ordinance would result in a threat to public health, safety, and welfare. SECTION 3. In accordance with CEQA Guidelines Section 15061(b)(3), this Interim Zoning Ordinance is exempt from CEQA as it can be seen with certainty that the proposed ordinance does not have the potential to significantly impact the environment. This determination is made based on the record as a whole, including, but not limited to, evidence that the regulations set forth in this Interim Zoning Ordinance represent a temporary change to regulatory standards that would not result in more mass or floor area than currently allowed under the Zoning Ordinance. SECTION 4. Any provision of the Santa Monica Municipal Code or any appendix thereto inconsistent with the provisions of this Ordinance, to the extent 8 of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 5. 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 6. 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 immediately upon its adoption. SECTION 6. This Ordinance shall be of no further force or effect sixty days from its effective date, unless it is otherwise extended pursuant to Santa Monica Municipal Code Section 9.46.090. APPROVED AS TO FORM: _________________________ LANE DILG City Attorney April 23, 2019 RE: Item 7B Dear Mayor Davis and Councilmembers: My comments regarding this item are as follows: Timing. I believe that directing the Planning Commission and staff to return, within 60 days, with a well thought out and thoroughly researched permanent Zoning Ordinance amendment dealing with the issues of co-housing and micro-units is unrealistic. It therefore seems reasonable to assume that the 60-day IZO term will be extended upon its expiration or the term made longer as part of your action tonight. Market Trends. The co-housing model is being used extensively in urban areas throughout the country. It reflects changes in housing market trends and should be embraced by the City of Santa Monica. The existing models include housing for millennials, down-sizing seniors and families. It is a realistic model that offers more affordable market rate housing opportunities, communal and, therefore, community-building living environments, and residential density near transit. More research on this model should be undertaken and recommendations for its adaptation to Santa Monica should be presented to the Planning Commission and the City Council. Household Diversity. The LUCE calls for housing production that engenders a diversity of households. Whether the two-and three-bedroom units being produced are or will be occupied by families should be considered, and, if not, perhaps a re-thinking of the City’s minimum average bedroom number should be undertaken. The very high monthly rents for these larger units, plus common areas that are generally not child-friendly, make it seem unlikely that families are actually occupying these units. The Planning Commission has seen several recent projects with small three bedroom, three bath units. It is likely that this type of rental unit is being proposed as a response to housing market trends and will be occupied by individuals rather than families. Common Areas. Common area space, including shared kitchens, are important elements of co- housing projects since they encourage social connectedness. That said, the size of these common areas should be determined based on economic feasibility particularly in the case of proposed tier 1 projects. Thank you for the opportunity to comment. I look forward to further discussion on these issues. Respectfully, Leslie Lambert, Sunset Park Resident Item 7-B 04/23/19 1 of 1 Item 7-B 04/23/19 REFERENCE: ORDINANCE NO. 2609 (CCS)