R111921
City Council Meeting: August 13, 2019 Santa Monica, California
RESOLUTION NUMBER 11192 (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
DocuSign Envelope ID: EA907DF4-9720-4D9B-B07F-7A22EA2DFD2C
2
costs, 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 July 24, 2007, th e 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
DocuSign Envelope ID: EA907DF4-9720-4D9B-B07F-7A22EA2DFD2C
3
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
WHEREAS, pursuant to this methodology, on August 27, 2013, the City Council
adopted Resolution No. 10764 (CCS) which incrementally adju sted 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, pursuant to this methodology, on August 23, 2016, the City Council
adopted Resolution No. 10986 (CCS) which incrementally adjusted this unit
development cost by $11,805;
WHEREAS, pursuant to this methodology, on August 8, 2017, the City Council
adopted Resolution No. 11070 (CCS) which incrementally adjusted this unit
development cost by $16,987; and
WHEREAS, pursuant to this methodology, on August 14, 2018, the City Council
adopted Resolution No. 11131 (CCS) which incrementally adjusted this unit
development cost by $17,836; and
DocuSign Envelope ID: EA907DF4-9720-4D9B-B07F-7A22EA2DFD2C
4
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), Resolution No. 10903 (CCS), Resolution No. 10986 (CCS), Resolution
No. 11070 (CCS), and Resolution No. 11131 (CCS) thereby established an affordable
housing unit development cost of $374,555; 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 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 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
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
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 $8,240 to the
current affordable housing development cost of $374,555 would be appropriate.
DocuSign Envelope ID: EA907DF4-9720-4D9B-B07F-7A22EA2DFD2C
5
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOW S:
SECTION 1. The current Affordable Housing Unit Development Cost of
$374,555 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), Resolution No. 10903 (CCS), Resolution No. 10986 (CCS), Resolution
No. 11070 (CCS), and Resolution No. 11131 (CCS) shall be increased by $8,240.
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), Resolution No. 10903 (CCS), Resolution No. 10986 (CCS), and
Resolution No. 11070 (CCS), and Resolution No. 11131 (CCS) shall remain in full force
and effect and shall not be superseded or altered by this resolution in any way.
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,
2019.
APPROVED AS TO FORM:
_________________________
LANE DILG
City Attorney
DocuSign Envelope ID: EA907DF4-9720-4D9B-B07F-7A22EA2DFD2C
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. 11192 (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
DocuSign Envelope ID: EA907DF4-9720-4D9B-B07F-7A22EA2DFD2C