O26221
City Council Meeting: October 22, 2019 Santa Monica, California
ORDINANCE NUMBER 2622 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE CHAPTER 9.64
TO EXTEND THE REMOVAL OF THE EXTREMELY LOW-INCOME AFFORDABLE
HOUSING CATEGORY
WHEREAS, the City has a long history of prioritizing preservation and production
of affordable housing in order to promote and maintain affordability and diversity within
the community; and
WHEREAS, the City’s residents have affirmed this priority in voter-approved
initiatives, such as Proposition R, which was adopted by the voters in 1990 and mandated
that 30 percent of all new multi-family housing units constructed each year be affordable ,
and Proposition I, which was adopted by the voters in 1998 and authorized the City to
participate financially in creating affordable housing equal to one-half of one percent of
the housing stock annually; and
WHEREAS, the City Council has further facilitated preservation and production of
affordable housing by adopting land use incentives and administrative funding guidelines
to streamline affordable housing production and preservation and through the policy
foundation of supporting affordable housing articulated in the General Plan’s Land Use
and Housing Elements; and
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WHEREAS, the City’s Affordable Housing Production Program, codified at
Chapter 9.64 of the Santa Monica Municipal Code (the “AHPP”), requires developers of
multi-family housing projects to contribute to affordable housing production and thereby
enhances the City’s efforts to meet its affordable housing production goals; and
WHEREAS, the requirements of the AHPP are based on a number of factors
including, but not limited to, the City’s longstanding commitment to economic diversity;
the serious need for affordable housing as reflected in local, state, and federal housing
regulations and policies; the demand for affordable housing created by market rate
development; the depletion of potential affordable housing sites due to market-rate
development; and the impact that the shortage of affordable housing has on the health,
safety, and welfare of the City’s residents, including local and regional traffic, transit,
transportation and air quality impacts; and
WHEREAS, on June 25, 2013, the City Council adopted Ordinance Number 2429
(CCS) to amend Chapter 9.64 by revising affordable housing categories, income-eligibility
limits, and rent limits to be consistent with federal and state affordable housing programs
(“Ordinance 2429”); and
WHEREAS, Ordinance 2429 also expanded AHPP income categories to include
households at the lowest end of the income scale, whose gross income does not exceed
30 percent of the area median income, sometimes referred to as the extremely low-
income category; and
WHEREAS, Ordinance 2429 further provided that a developer may meet its AHPP
requirements by developing 5 percent of the total units of the project to be made available
at affordable rent to households in the extremely low-income category; and
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WHEREAS, the extremely low-income category was added to the AHPP to
stimulate the development of such units; and
WHEREAS, since the adoption of Ordinance 2429, more than one-third of all
affordable units approved have been in the extremely-low income category, and, in 2018,
84 percent of all affordable units approved were in the extremely -low income category;
and
WHEREAS, although the City has met its overall affordable housing production
requirements as mandated by Proposition R since adoption of Proposition R and,
collectively, since 2014, the City has seen an overall decline in affordable housing
production since 2014 and has not met its annual targets for affordable housing
production under Proposition R in fiscal years 2014/2015, 2015/2016, or 2016/2017; and
WHEREAS, the production of such a large number of affordable units in the
extremely low-income category has resulted in fewer affordable units being produced in
the very low-, low- and moderate-income categories and fewer affordable units being
produced overall; and
WHEREAS, on July 25, 2017, after conducting a feasibility study, the City adopted
AHPP obligation requirements specific to the Downtown as part of the Downtown
Community Plan (“DCP”); and
WHEREAS, the DCP established a 20 percent base requirement for a project’s
total affordable housing contribution, with a required distribution across all affordable
income levels; and
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WHEREAS, the DCP AHPP requirements are designed to ensure the development
of affordable units to be made available across all income levels and to assist the City in
meeting its affordable housing production goals overall; and
WHEREAS, on March 26, 2019, the City Council authorized a feasibility study to
determine whether adjustments to the AHPP obligations are appropriate for areas outside
of the City’s Downtown; and
WHEREAS, on April 9, 2019, the City Council adopted Ordinance Number 2605
(CCS) to remove the extremely-low income category as an option for satisfying affordable
housing production obligations until November 27, 2019 in order to ensure production of
affordable housing units at a variety of affordable income levels and to encourage the
overall production of affordable housing within the City while the feasibility study is
completed; and
WHEREAS, since the adoption of Ordinance 2605, the California legislature
passed legislation intended to address the State’s housing crisis by removing regulatory
barriers that discourage housing production; and
WHEREAS, the Southern California Association of Governments has released
possible methodology options for allocation of the Regional Housing Needs Assessment
(“RHNA”) for the based on recent changes in State law; and
WHEREAS, the current feasibility study will need to be updated to account for
these changes in State law and possible RHNA outcomes; and
WHEREAS, in order to accommodate such revisions, the City desires to extend
the elimination of the extremely-low income category as an option for satisfying affordable
housing production obligations until November 27, 2020; and
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WHEREAS, the proposed amendments to the AHPP are intended to achieve
greater affordability and maintain Santa Monica’s economic diversity; and
WHEREAS, the proposed changes to the AHPP would result in lower rents and
greater accessibility of affordable housing to lower income households; and
WHEREAS, the proposed amendments to the AHPP are consistent with
Proposition R.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 9.64.050 is hereby amended
to read as follows:
9.64.050 On-site option.
The following requirements must be met to satisfy the on -site provisions of
this Chapter:
A. For ownership projects of at least four units but not more than fifteen
units in multi-family residential districts, the multi-family project applicant agrees to
construct at least: (1) twenty percent of the total units as ownership units for
moderate-income households at an Affordable Ownership Hosing Cost, or as an
alternative; (2) twenty percent of the total units as rental units for 80% income
households at affordable rent if these rental units are provided by the applicant in
accordance with Civil Code Sections 1954.52(b) and 1954.53(a)(2); (3) ten percent
of the total units as rental units for 50% income households at affordable rent if
these rental units are provided by the applicant in accordance with Civil Code
Sections 1954.52(b) and 1954.53(a)(2); or (4 ) for projects with an application for a
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ministerial or discretionary planning approval that is determined complete on or
before March 26, 2019 or after November 27, 2020, five percent of the total units
as rental units for 30% income households at affordable rent if these rental units
are provided by the applicant in accordance with Civil Code Sections 1954.52(b)
and 1954.53(a)(2).
B. For ownership projects of sixteen units or more in multi -family
residential districts, the multi-family project applicant agrees to construct at least:
(1) twenty-five percent of the total units as ownership units for moderate -income
households at an Affordable Ownership Housing Cost, or as an alternative; (2)
twenty-five percent of the total units as rental units for 80% income households at
affordable rent if these rental units are provided by the applicant in accordance
with Civil Code Sections 1954.52(b) and 1954.53(a)(2); fifteen percent of the total
units as rental units for 50% income households at affordable rent if these rental
units are provided by the applicant in accordance with Civil Code Sections
1954.52(b) and 1954.53(a)(2); or (4) for projects with an application for a
ministerial or discretionary planning approval that is determined complete on or
before March 26, 2019 or after November 27, 2020, ten percent of the total units
as rental units for 30% income households at affordable rent if these rental units
are provided by the applicant in accordance with Civil Code Sections 1954.52(b)
and 1954.53(a)(2).
C. For all other multi-family applicants, the multi-family project applicant
agrees to construct at least:
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1. five percent of the total units of the project for 30% income
households at affordable rent for projects with an application for a ministerial
or discretionary planning approval that is determined complete on or before
March 26, 2019 or after November 27, 2020;
2. ten percent of the total units of the pro ject for 50% income
households at affordable rent;
3. twenty percent of the total units of the project for 80% income
households at affordable rent; or
4. one hundred percent of the total units of a project for moderate
income households at affordable rent.
D. Except as provided in 9.23.030(A), any fractional affordable housing
unit that results from the formulas of this Section that is 0.75 or more shall be
treated as a whole affordable housing unit (i.e., any resulting fraction shall be
rounded up to the next larger integer) and that unit shall also be built pursuant to
the provisions of this Section. Any fractional affordable housing unit that is less
than 0.75 can be satisfied by the payment of an affordable housing fee for that
fractional unit only pursuant to Section 9.64.070(A)(2) or by constructing all the
mandatory on-site affordable units with three or more bedrooms. The City shall
make available a list of income levels for 30% income households, 50% income
households, 80% income households, and moderate income households, adjusted
for household size, the corresponding maximum affordable rents adjusted by
household size appropriate for the unit, and the minimum number of units required
for 30% income households, 50% income households, or 80% income households
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required for typical sizes of multi-family projects, which list shall be updated
periodically.
E. The multi-family project applicant may reduce either the size or
interior amenities of the affordable housing units as long as there are not significant
identifiable differences between affordable housing units and market rate units
visible from the exterior of the dwelling units; provided, that all dwelling units
conform to the requirements of the applicable Building and Housing Codes.
However, except as provided in Section 9.23.030(A), each affordable housing unit
provided shall have at least two bedrooms unless:
1. The proposed project comprises at least ninety-five percent
one bedroom units, excluding the manager’s unit, in wh ich case the
affordable housing units may be one bedroom;
2. The proposed project comprises at least ninety-five percent
zero bedroom units, excluding the manager’s unit, in which case the
affordable housing units may be zero bedroom units;
3. The proposed project comprises zero and one bedroom units,
excluding the manager’s unit, in which case the affordable housing units
must be at least one bedroom units; or
4. The multi-family project applicant has elected not to pay the
affordable housing fee pursuant to Section 9.64.070(A)(2), in which case
the affordable housing units must be at least three bedroom units. The
design of the affordable housing units shall be reasonably consistent with
the market rate units in the project. An affordable housing unit shall have a
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minimum total floor area, depending upon the number of bedrooms
provided, no less than the following:
0 bedrooms 500 square feet 1 occupant
1 bedroom 600 square feet 1 occupant
2 bedrooms 850 square feet 2 occupants
3 bedrooms 1,080 square feet 3 occupants
4 bedrooms 1,200 square feet 5 occupants
Affordable housing units in multi -family projects of one hundred units or
more must be evenly disbursed throughout the multi -family project to prevent
undue concentrations of affordable housing units.
F. All affordable housing units in a multi-family project or a phase of a
multi-family project shall be constructed concurrently with the construction of
market rate units in the multi-family project or phase of that project.
G. On-site affordable housing units must be rental units in rental
projects. In ownership projects, these affordable housing units may be either renta l
units or ownership units.
H. Each multi-family project applicant, or his or her successor, shall
submit an annual report to the City identifying which units are affordable units, the
monthly rent (or total housing cost if an ownership unit), vacancy info rmation for
each affordable unit for the prior year, verification of income of the household
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occupying each affordable unit throughout the prior year, and such other
information as may be required by City staff.
I. A multi-family project applicant in a residential district who meets the
requirements of this Section shall be entitled to the density bonuses and incentives
provided by Sections 9.22.030 or any successor thereto and the
waiver/modification of development standards provided by Section 9.22.040 or any
successor thereto. A multi-family project applicant in a commercial or industrial
district shall be entitled to the development bonuses and incentives provided in the
Land Use and Circulation Element and implementing ordinances.
J. All residential developments providing affordable housing on -site
pursuant to the provisions of this Section shall receive priority building department
plan check processing by which housing developments shall have plan check
review in advance of other pending developments to the extent authorized by law.
K. The City Council may by resolution establish compliance monitoring
fees which reflect the reasonable regulatory cost to the City of ensuring compliance
with this Section when affordable housing units are being initially rented or sold,
when the required annual reports are submitted to the City, and when the units are
being re-sold or re-leased.
SECTION 2. Any provision of the Municipal Code or appendices thereto
inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent
necessary to effect the provisions of this Ordinance.
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SECTION 3. 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 4. 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 30
days from its adoption.
APPROVED AS TO FORM:
_______________________
LANE DILG
City Attorney
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Approved and adopted this 22nd day of October, 2019.
_____________________________
G l e a m D a v i s , M a y o r
State of California )
County of Los Angeles ) ss.
City of Santa Monica )
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica,
do hereby certify that the foregoing Ordinance No. 2622 (CCS) had its
introduction on October 15, 2019 and was adopted at the Santa Monica City
Council meeting held on October 22, 2019, by the following vote:
AYES: Councilmembers Morena, McKeown, Himmelrich, Winterer, Jara,
Mayor Pro Tem O’Day, Mayor Davis
NOES: None
ABSENT: None
ATTEST:
_____________________________________ _________________
Denise Anderson-Warren, City Clerk Date
A summary of Ordinance No. 2622 (CCS) was duly
published pursuant to California Government Code Section
40806.
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11/21/2019