R111911
City Council Meeting: August 13, 2019 Santa Monica, California
RESOLUTION NUMBER 11191 (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 9.64.070(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, now renumbered Section 9.64.070, 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 inc rementally 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 $0.69 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, pursuant to this methodology, on August 25, 2015, the City Council
adopted Resolution No. 10902 (CCS) which incrementally adjusted these base fees by
$1.71 per square foot for new market rate con dominiums and $1.46 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 23, 2016, the City Council
adopted Resolution No. 10985 (CCS) which incrementally adjusted these base fees by
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$1.31 per square foot for new market rate condominiums and $1.13 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 8, 2017, the City Council
adopted Resolution No. 11069 (CCS) which incrementally adjusted these base fees by
$1.89 per square foot for new market rate condominiums and $1.62 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 14, 2018, the City Council
adopted Resolution No. 11130 (CCS) which incrementally adjusted these base fees by
$1.99 per square foot for new market rate condominiums and $1.70 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), Resolution No. 10833 (CCS), Resolution No. 10902 (CCS), Resolution
No. 10985 (CCS), Resolution No. 11069 (CCS), and Resolution No. 11130 (CCS)
thereby established an affordable housing unit base fee for condominiums of $41.70 per
square foot and an affordable housing unit base fee for apartments of $35.70; and
WHEREAS, in accordance with Santa Monica Municipal Code Section 9.64.070
and the City Council’s approved methodology, staff 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
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WHEREAS, on August 1, 2019, the City published a notice that at the August 13,
2019 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 staff’s
analysis was available for review in the City Clerk’s Office; and
WHEREAS, the City republished this notice on August 8, 2019; and
WHEREAS, a copy of staff’s analysis has been available in the City Clerk’s
Office for public review since August 1, 2019; and
WHEREAS, based on this analysis, an increase in the amount of $0.79 per
square foot of the current Affordable Housing Unit Base Fee of $36.49 for apartments
and an increase in the amount of $0.92 per square foot of the current Affordable
Housing Unit Base Fee of $42.62 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 $41.70 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), Resolution No. 10833 (CCS), Resolution
No. 10902 (CCS), Resolution No. 10985 (CCS), Resolution No. 11069 (CCS), and
Resolution No. 11130 (CCS) shall be increased by $0.92 per square foot of floor area.
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SECTION 2. The current Affordable Housing Unit Base Fee for new market rate
apartment of $35.70 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), Resolution No. 10833 (CCS), Resolution
No. 10902 (CCS), Resolution No. 10985 (CCS), Resolution No. 11069 (CCS), and
Resolution No. 11130 (CCS) shall be increased by $0.79 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), Resolution No. 10833 (CCS), Resolution No. 10902 (CCS), Resolution
No. 10985 (CCS), Resolution No. 11069 (CCS), and Resolution No. 11130 (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,
2019.
APPROVED AS TO FORM:
_________________________
LANE DILG
City Attorney
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Adopted and approved this 13th day of August 2019.
__________________________
Gleam Davis, Mayor
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 11191 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 13th day of August 2019, by the following vote:
AYES: Councilmembers Himmelrich, Jara, Morena, McKeown, Winterer
Mayor Davis
NOES: None
ABSENT: Mayor Pro Tem O’Day
ATTEST:
_____________________________________
Denise Anderson-Warren, City Clerk
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