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R112371 City Council Meeting: March 10, 2020 Santa Monica, California RESOLUTION NUMBER 11237 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING THE LAND USE AND CIRCULATION ELEMENT OF THE GENERAL PLAN OF THE CITY OF SANTA MONICA TO INCREASE THRESHOLDS FOR MINISTERIAL REVIEW OF ONE HUNDRED PERCENT AFFORDABLE HOUSING PROJECTS AND HOUSING PROJECTS SUBJECT TO THE HOUSING ACCOUNTABILITY ACT WHEREAS, the State is experiencing a housing supply crisis, with housing demand far outstripping supply; and WHEREAS, in 2018, California ranked 49th out of the 50 states in housing units per capita; and WHEREAS, housing crisis has particularly exacerbated the need for affordable homes at prices below market rates; and WHEREAS, the housing crisis has resulted in increased poverty and homelessness, especially first-time homelessness, forced lower income residents into crowded and unsafe housing in urban area, and forced families into lower cost new housing in greenfields at the urban-rural interface with longer commute times and a higher exposure to fire hazard; and DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 2 WHEREAS, California needs an estimated 180,000 additional homes annually to keep up with population growth, and the Governor has called for 3.5 million new homes to be built over the next 7 years; and WHEREAS, the Regional Housing Needs Assessment (RHNA) process is pending finalization for the 6th Cycle Housing Element, and is anticipated to result in an allocation of approximately 8,800 units to Santa Monica, of which 69% would be affordable housing; and WHEREAS, on July 6, 2010, the City Council adopted the Land Use and Circulation Element of the City’s General Plan (“LUCE”) which designates the proposed general distribution, location and extent of land uses within the City; and WHEREAS, the LUCE was adopted after an extensive planning process, and addresses neighborhood conservation and enhancement; integrated land use and transportation; proactive congestion management; complete neighborhoods with increased open space; community benefits; quality urban character and form; preservation of historic resources; and growth management; and WHEREAS, the LUCE differs from prior Land Use and Circulation elements, in part, by establishing a direct link between land use and transportation policies and programs and the establishment of new development policies and standards which ensure that quality development contributes to the character of the City; and WHEREAS, the LUCE establishes a base height for each land use as a baseline and proposed development which seeks additional height above the base is subject to discretionary review and must meet additional requirements consistent with the DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 3 community’s broader social, environmental, and circulation goals – an approach defined in three tiers; and WHEREAS, the LUCE provides certain bonuses, concessions and incentives for one hundred percent affordable housing projects, including a provision that allows for ministerial approval for projects of up to 50 units in size; and WHEREAS, a RHNA allocation of 8,880 units with 69% affordability in the 6th Cycle Housing Element will require the City to permit approximately 1,000 housing units a year between 2021 and 2029, 700 of which are required to be affordable housing; and WHEREAS, 100% affordable housing projects, with challenges in available funding, are turning to financing sources such as tax credits, which establish a strict schedule for obtaining entitlements and building permits which are more easily met with a streamlined review process; and WHEREAS, the Housing Accountability Act, California Government Code Section 65589.5 (the “HAA”), places strict limitations on the City’s discretion to deny, reduce the density of, or place conditions a housing project that complies with objective general plan, zoning and subdivision standards and criteria, including design review standards in effect at the time the application is determined complete; and WHEREAS, requiring discretionary review for housing projects that comply with objective general plan, zoning and subdivision standards and criteria, including design review standards in effect at the time the application is determined complete, adds time and expense to housing production without providing any meaningful benefit to the community; and DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 4 WHEREAS, on December 10, 2019, the City Council conducted a study session on housing policy in part to discuss options for increasing housing production throughout the City with a particular emphasis on incentivizing one hundred percent affordable housing projects, and considered whether increasing the thresholds for ministerial review of certain housing projects would further stimulate housing production; and WHEREAS, on February 5, 2020, the Planning Commission adopted a Resolution of Intention, Resolution Number 20-002 (PCS), declaring its intention to consider recommending to the City Council that the City Council amend the text of the LUCE, the Bergamot Area Plan (“BAP”) and the Downtown Community Plan (“DCP”) to increase the thresholds for ministerial review of one hundred percent affordable housing projects and housing projects subject to the HAA; and WHEREAS, on February 19, 2020, the Planning Commission conducted a duly noticed public hearing, and after considering oral and written testimony regarding the proposed amendments to the text of the LUCE, BAP and DCP, adopted a Resolution of Recommendation, Resolution Number 20-005 (PCS) recommending to the City Council that the City Council adopt the proposed amendments; and WHEREAS, on March 10, 2020, the City Council conducted a duly noticed public hearing to consider the recommendation of the Planning Commission, and, after considering all oral and written testimony, desires to adopt the proposed amendments to the LUCE. DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 5 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. Amendments to the Land use and Circulation Element. Pursuant to Santa Monica Municipal Code Section 9.45.080, the City Council does hereby amend the Land Use and Circulation Element of the General Plan of the City of Santa Monica as set forth in Exhibit A, attached to this Resolution and incorporated herein by reference. SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: _________________________ Lane Dilg City Attorney DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 6 EXHIBIT A [Behind this page] DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 7 CHAPTER AND PAGE(S) PROPOSED AMENDMENTS TO THE LAND USE AND CIRCULATION ELEMENT Various Summary of Purpose: The amendments included herein will remove barriers to building housing, particularly affordable housing by increasing ministerial process thresholds for one hundred percent affordable housing projects and housing projects that meet all objective standards in accordance with the Housing Accountability Act. Executive Summary, pp. 11-12 Require Community Benefits • Traditional planning has long required development to meet minimum community benefit standards. The LUCE proposes a comprehensive approach to benefits designed to serve the community’s core needs— new affordable housing opportunities, cultural and social facilities, employee housing, preservation of historic resources, and the creation of quality “places”. The LUCE establishes a review process which conditions new development above a base height to provide community benefits. This approach provides the City and the community with the capability to shape how individual projects contribute to the City as a whole. This will ensure that new buildings will be rich additions to the urban fabric while creating special places in the City that enhances its unique character and quality of life. To accomplish this, the LUCE Plan establishes a base height of up to 32 feet for new development (ministerial up to the discretionary review thresholds established by the Zoning Ordinance), initiating a Development Review Permit or Development Agreement process for development beyond this height. To incentivize housing production, the following projects that exceed the base height will be subject to ministerial review up to discretionary review thresholds established by the Zoning Ordinance: 1) one hundred percent affordable housing projects; and 2) housing projects that meet the definition of “housing development project” under the Housing Accountability Act, Government Code Section 65589.5, (“Housing Accountability Act”) and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete. DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 8 Chapter 2.1, Land Use Policy and Designations, p. 2.1-5 The LUCE Requires a New Zoning Approach • The 1984 LUCE and current zoning code establish varying heights for development in selected areas in the City. In contrast, the LUCE approach establishes the base height at no more than 32 feet (ministerial up to the discretionary review thresholds established by the Zoning Ordinance*) and requires applicants desiring to develop above the base height to be subject to a discretionary review process with required community benefits that will contribute to the community’s overall social and environmental goals. To incentivize housing production, the following projects that exceed the base height will be subject to ministerial review up to discretionary review thresholds established by the Zoning Ordinance: 1) one hundred percent affordable housing projects; and 2) housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete. Chapter 2.1, Land Use Policy and Designations, p. 2.1-17 Citywide Land Use Policies LU10.4 Discretionary Review. Require a discretionary review process with community input for projects above the base height except for 100 one hundred percent affordable housing projects and housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete. Chapter 2.1, Land Use Policies and Designations, p. 2.1-30 Introduction to the LUCE Land Use Designations A. Neighborhoods 2. Low-Density Housing, Development Parameters • One hundred percent affordable housing projects will be subject to ministerial review of 50 or fewer units will be processed ministerially. DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 9 Chapter 2.1, Land Use Policies and Designations, p. 2.1-31 Introduction to the LUCE Land Use Designations A. Neighborhoods 3. Medium-Density Housing, Development Parameters • Tier 2 – Housing projects that provide identified community benefits specified in implementing ordinances may request a maximum allowable height not to exceed 40 feet and maximum allowable density up to 35 units per net residential acre, exclusive of City and State density bonuses. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. These All other housing projects will require a discretionary permit, following a public review process that will determine consistency with objective standards such as mass, scale, compatibility, affordable housing, open space, TDM measures and implementation of parking strategies. • One hundred percent affordable housing projects will be subject to ministerial review50 or fewer units will be processed ministerially. Chapter 2.1, Land Use Policy and Designations, p. 2.1-32 Introduction to the LUCE Land Use Designations A. Neighborhoods 4. High-Density Housing, Development Parameters • Tier 2 – Housing projects that provide identified community benefits specified in implementing ordinances may request a maximum allowable height not to exceed 45 feet and maximum allowable density up to 48 units per net residential acre, exclusive of City and State density bonuses. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. These All other housing projects will require a discretionary permit, following a public review process that will determine consistency with DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 10 appropriate objective standards such as mass, scale, compatibility, affordable housing, open space, TDM measures and implementation of parking strategies. • One hundred percent affordable housing projects will be subject to ministerial review of 50 or fewer units will be processed ministerially. Chapter 2.1, Land Use Policy and Designations, p. 2.1-35 Introduction to the LUCE Land Use Designations B. Boulevards 5. Mixed-Use Boulevard Low, Development Parameters • Tier 2 – Above Base -With Community Benefits — Subject to a discretionary review process, projects Projects that provide community benefits may request a height up to 36 feet and 1.75 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. • All Tiers – One hundred percent affordable housing projects will continue to be provided existing incentives, including: building height not to exceed the allowable maximum height limit at the highest tier, inclusive of any development bonus for affordable housing; reduced parking requirements; flexibility in providing a reduction in required ground floor pedestrian-oriented uses, which may also include community services, arts, and similar uses, as applicable; and administrative review of affordable housing projects (up to a maximum of 80% of median income only) with 50 units or less. DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 11 Chapter 2.1, Land Use Policy and Designations, pp. 2.1-37-39 Introduction to the LUCE Land Use Designations B. Boulevards 6. Mixed-Use Boulevard, Development Parameters Projects with 100% Residential Above the Ground Floor • Tier 2 – Above Base -With Community Benefits — • Subject to a discretionary review process, projects Projects that provide community benefits may request a height up to 50 feet and 2.25 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects are subject to a discretionary review process. • Within the Downtown Community Plan area on the east side of Lincoln Boulevard, subject to a discretionary review process, projects that provide community benefits may request a height up to 50 feet and 2.25 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to administrative review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. • Within the Downtown Community Plan area on the west side of Lincoln Boulevard, subject to a discretionary review process, projects that provide community benefits may request a height up to 60 feet and 2.75 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 12 applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. • Within the Downtown Community Plan area on Wilshire Boulevard west of Lincoln Boulevard, subject to a discretionary review process, projects that provide community benefits may request a height up to 50 feet and 2.25 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established in the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. • Within the Downtown Community Plan area on the east and west sides of Lincoln Boulevard, 100% affordable housing projects may request an additional ten feet of building height and 0.5 FAR above Tier 2 standards. All Other Projects • Tier 2 – Above Base -With Community Benefits — • Subject to a discretionary review process, projects Projects that provide community benefits may request a height up to 45 feet and 2.25 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 13 • Within the Downtown Community Plan area on the east side of Lincoln Boulevard, subject to a discretionary review process, as required by the Downtown Community Plan, projects that provide community benefits may request a height up to 40 feet and 1.75 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. • Within the Downtown Community Plan area on the west side of Lincoln Boulevard and on Wilshire Boulevard west of Lincoln Boulevard, subject to a discretionary review process or development agreement, as required by the Downtown Community Plan, projects that provide community benefits may request a height up to 50 feet and 2.25 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. • Within the Downtown Community Plan area on Wilshire Boulevard west of Lincoln Boulevard, subject to a discretionary review process, projects that provide community benefits may request a height up to 40 feet and 1.75 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 14 discretionary review thresholds established in the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. • All Tiers – One hundred percent affordable housing projects will continue to be provided existing incentives, including: building height not to exceed the allowable maximum height limit at the highest tier, inclusive of any development bonus for affordable housing; reduced parking requirements; flexibility in providing a reduction in required ground floor pedestrian-oriented uses, which may also include community services, arts, and similar uses, as applicable; and administrative review of affordable housing projects (up to a maximum of 80% of median income only) with 50 units or less. Chapter 2.1, Land Use Policy and Designations, p. 2.1-41-42 Introduction to the LUCE Land Use Designations B. Boulevards 7. General Commercial, Development Parameters Santa Monica Boulevard • Tier 2 – Above Base -With Community Benefits — Subject to a discretionary review process, projects Projects that provide community benefits may request a height up to 35 feet and 1.5 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. Lincoln and Pico Boulevards • Tier 2 – Above Base -With Community Benefits — Subject to a discretionary review process, projects Projects that provide community benefits may request additional FAR up to 1.75. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 15 at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. • All Tiers – One hundred percent affordable housing projects will continue to be provided existing incentives, including: building height not to exceed the allowable maximum height limit at the highest tier, inclusive of any development bonus for affordable housing; reduced parking requirements; flexibility in providing a reduction in required ground floor pedestrian-oriented uses, which may also include community services, arts, and similar uses, as applicable; and administrative review of affordable housing projects (up to a maximum of 80% of median income only) with 50 units or less. Chapter 2.1, Land Use Policy and Designations, p. 2.1-44 Introduction to the LUCE Land Use Designations B. Mixed-Use Centers 8. Neighborhood Commercial, Development Parameters • All Tiers – One hundred percent affordable housing projects will continue to be provided existing incentives, including: building height not to exceed the allowable maximum height limit at the highest tier, inclusive of any development bonus for affordable housing; reduced parking requirements; flexibility in providing a reduction in required ground floor pedestrian-oriented uses, which may also include community services, arts, and similar uses, as applicable; and administrative review of affordable housing projects (up to a maximum of 80% of median income only) with 50 units or less. Pico Boulevard • One hundred percent affordable housing projects will continue to be provided existing incentives, including: building height not to exceed the allowable maximum height limit at the highest tier, inclusive of any development bonus for affordable housing; reduced parking requirements; flexibility in providing a reduction in required ground floor pedestrian-oriented uses, which may also include community services, arts, and similar uses, as applicable; and administrative review of affordable housing projects (up to a maximum of 80% of median income only) with 50 units or less. DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 16 Chapter 2.1, Land Use Policy and Designations, p. 2.1-46, 47 Introduction to the LUCE Land Use Designations C. Mixed-Use Centers 9. Bergamot Transit Village, Development Parameters • Tier 2 – Above Base -With Community Benefits — Subject to a discretionary review process, projects Projects that provide community benefits may request a height up to 60 feet and 3.0 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. • All Tiers – One hundred percent affordable housing projects will continue to be provided existing incentives, including: building height not to exceed the allowable maximum height limit at the highest tier, inclusive of any development bonus for affordable housing; reduced parking requirements; flexibility in providing a reduction in required ground floor pedestrian-oriented uses, which may also include community services, arts, and similar uses, as applicable; and administrative review of affordable housing projects (up to a maximum of 80% of median income only) with 50 units or less. Chapter 2.1, Land Use Policy and Designations, p. 2.1-49 Introduction to the LUCE Land Use Designations C. Mixed-Use Centers 10. Mixed-Use Creative, Development Parameters • Tier 2 – Above Base -With Community Benefits — Subject to a discretionary review process, projects Projects that provide community benefits may request a height up to 47 feet and 2.0 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 17 application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. • All Tiers – One hundred percent affordable housing projects will continue to be provided existing incentives, including: building height not to exceed the allowable maximum height limit at the highest tier, inclusive of any development bonus for affordable housing; reduced parking requirements; flexibility in providing a reduction in required ground floor pedestrian-oriented uses, which may also include community services, arts, and similar uses, as applicable; and administrative review of affordable housing projects (up to a maximum of 80% of median income only) with 50 units or less. Chapter 2.1, Land Use Policy and Designations, p. 2.1-53 Introduction to the LUCE Land Use Designations C. Mixed Use Centers 12. Beach and Oceanfront, Development Parameters • Tier 2 – Above Base -With Community Benefits — Subject to a discretionary review process, projects Projects that provide community benefits may request a height up to 47 feet and 2.0 FAR. One hundred percent affordable housing projects will be subject to ministerial review. Housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to ministerial review up to the discretionary review thresholds established by the Zoning Ordinance. All other Tier 2 projects will be subject to a discretionary review process. • All Tiers – One hundred percent affordable housing projects will continue to be provided existing incentives, including: building height not to exceed the allowable maximum height limit at the highest tier, inclusive of any development bonus for affordable housing; reduced parking requirements; flexibility in providing a reduction in required ground floor pedestrian-oriented uses, which may also include community services, arts, and similar uses, as applicable; and administrative review of affordable housing projects (up to a maximum of 80% of median income only) with 50 units or less. DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 18 Chapter 2.7, Managing Change, p. 2.7-4 Five Innovative Controls Incorporated Into the LUCE Type of Uses Community-Serving Benefits • Except as otherwise provided, buildings Buildings over the base height of 32–35 feet will be reviewed through a public process to ensure that incentives for additional height result in community benefits such as affordable and workforce housing opportunities, child care, cultural and open space and sensitive historic preservation or adaptive reuse Chapter 2.7, Managing Change, p. 2.7-6 Amount of Change Reduction in the Maximum Base Height The LUCE modifies the maximum ministerial base height for new development on the boulevards and in the districts to 32 feet. Chapter 3.2, Community Benefits, p. 3.2-4 The Community Identifies Core Values for Community Benefits Five Priority Categories of Community Benefits: The community identified the following five priority categories of community benefits: 1. New and Affordable Workforce Housing For all projects in which a developer seeks to develop a project that is greater in height than the base height of 32 feet, affordable housing or a contribution to the affordable housing fund shall be required. The objective is to incentivize housing along the City’s commercial corridors where there is transit, local-serving retail and an enhanced pedestrian environment, facilitating a complete neighborhood for a range of socioeconomic levels. While affordable housing is identified as a primary community benefit, the provision of a significantly higher percentage of workforce housing units is also a community benefit. DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 19 Chapter 3.2, Community Benefits, p. 3.2-4 How the LUCE Achieves Community Benefits • In addition to articulating the community’s long-term vision, the LUCE establishes broad goals and policies that set the framework for community benefits. In each land use designation, the Plan sets a base height and allowable development intensity which permits quality lower-scale, generally ministerial development. Using the citywide vision for urban form, the Plan then sets a maximum height and intensity, even with provision of community benefits, along with sensitive transitions to homes and neighborhoods. The specific standards and procedures for providing community benefits will be incorporated into the revised Zoning Ordinance using the LUCE concepts. The LUCE land use policy establishes a baseline building height for nonresidential land use designations. Any proposed development that seeks to build above the base height in these nonresidential areas of the City, except for 100 percent affordable housing projects and housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete will be subject to a public review process and additional requirements consistent with the community’s broader social and environmental goals. Chapter 3.2, Community Benefits, p. 3.2-5-6 The Community Shapes the Future: A Three-Tiered Approach The Plan defines a comprehensive program that incentivizes new development above an 32-foot established base height. A three-tiered approach, based on increments of height and floor area, defines additional requirements consistent with the community’s broader social and environmental goals. While the specifics for each boulevard and district are provided within each zoning designation, a general explanation of how the process will work for any project is provided here. Tier 1 – Base Height • The LUCE establishes a base of up to 32 feet (2 stories). A project will receive a height bonus above the base height, allowing for an additional floor of housing, by providing the required affordable units on-site, or within close proximity along the boulevard, in accordance with the percentage requirements specified in the City’s Affordable Housing Production Program. While the 32-foot base accommodates 2 stories, the height available with this DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 20 incentive allows 3 stories. A Tier 1 project is ministerial up to the discretionary review threshold established by the Zoning Ordinance. Even these ministerial projects may be subject to discretionary review such as use permits, architectural review, historic resource review, etc. Tier 2 – Height Above Base Height •By maintaining discretionary control for a most projects over the ministerial base height, the City is better positioned to ensure compliance with LUCE principles. The process will differ slightly depending on the type of land use and the specific project as described below. •Commercial Projects: Unless a developer seeks a Development Agreement, a discretionary process will apply to all commercial projects and mixed-use projects. •Residential Projects: Except for deed-restricted 100 percent affordable housing projects Housing projects and mixed-use housing projects shall be processed through a Development Agreement or a discretionary review process, except that deed- restricted 100 percent affordable housing projects and housing projects that meet the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, comply with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the project application is deemed complete shall be subject to ministerial review. One Hundred Percent Affordable Housing Projects •One hundred percent affordable housing projects (up to a maximum of 80% of median income only) of 50 or fewer units will be subject to ministerial review processed ministerially. Chapter 3.3, Housing, p. 3.3-2 The LUCE Housing Policy The overarching coal of the LUCE housing policy is to create significant new additional affordable housing opportunities where few or none currently exist. These new housing opportunities are to be associated with transit in a manner that enhances sustainability, creates complete neighborhoods and provides ease access to local services. The Plan accomplishes this challenge in a variety of innovative ways, adding to the City’s substantial Housing Element goals to maintain and produce a wide range of housing types and affordability by: . . . DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 21 • Establishing a maximum ministerial base building height of up to 32 feet and requiring that projects over the base incorporate community benefits, with affordable housing identified as a primary community benefit. Chapter 3.3, Housing, p. 3.3-4 LUCE Strategies to Implement the Vision One of the most important accomplishments of the LUCE is to strategically locate housing in areas that are associated with transit and currently provide for commercial or industrial uses. The LUCE shifts the City’s land use policy from the strong commercial emphasis of the 1894 General Plan to a balanced policy of incentives for the construction of significant additional housing units, particularly affordable and workforce housing, to accompany new investment. The following strategies will guide the City in its efforts to successfully create new neighborhoods while conserving existing neighborhoods. Aggressively Create New Affordable Housing Affordable housing creation, the primary emphasis of the 2008-2014 Housing Element, will continue to be the City’s first housing priority and should not be supplanted by other housing efforts. Affordable housing will be the focus of any direct City subsidies. The LUCE builds on these City policies by identifying clear incentives to create additional affordable and workforce housing in conjunction with new development. Such incentives will be targeted to specific transit accessible locations on the boulevards and in the districts as a strategy for change in those areas. This approach requires that any project above the established base height must be accompanied by community benefits, particularly affordable housing. These incentives are progressive in nature and are described below: . . . • One hundred percent affordable housing projects will continue to be provided existing incentives, including: up to a 50% density bonus in residential designations, inclusive of the State density bonus requirement; building height in non-residential designations not to exceed the allowable maximum height limit at the highest tier, or 40 feet where applicable; reduced parking requirements; flexibility in providing a reduction in required ground floor pedestrian-oriented uses; and administrative review of affordable housing projects (up to a maximum of 80% of median income only) with 50 units or less. One hundred percent affordable housing projects are defined as housing in which one hundred percent of DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 22 the dwelling units are deed-restricted or restricted by an agreement approved by the City for occupancy by low or moderate income households. Such projects may also include non-residential uses, as long as such uses do not exceed a maximum percentage of the floor area of the total project to be established in the Zoning Ordinance. Chapter 5.0, Measuring Progress: Implementing the Plan, p. 5.0-13 Objective Standards and Criteria •By stating the goals and policies for each land use designation and each neighborhood, boulevard, district, and activity center, the LUCE creates certainty for residents and developers and establishes how development projects can positively affect the character, form, and quality of the City. Objective standards and criteria rooted in community priorities and measures to mitigate the impacts of new development will be the method by which all administrative projects will be reviewed. Review of discretionary projects that involve new construction will be guided by a new incentive system that places significant emphasis on inclusion of affordable housing and other community benefits with the objective that new development should contribute to the city’s physical, environmental, and cultural goals. Types of review for new projects are described below and include: •Ministerial review for projects that fall within established base height and FAR limits •Planning Commission and/or City Council review for projects that exceed thresholds established in the Zoning Ordinance base height and FARs •Development Agreements Maximum Ministerial Base Height and FAR and Provisions for Increases when Projects Offer Community Benefits •The LUCE establishes a maximum ministerial base height and FAR of 25–35 feet. As an incentive, additional height and FAR above the base may be granted, subject to a discretionary review process, if it meets community benefit criteria. A Development Agreement may be required for these increases in height and FAR. DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360 Adopted and approved this 10th day of March 2020. _____________________________ Kevin McKeown, Mayor I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby certify that Resolution No. 11237 (CCS) was duly adopted at a meeting of the Santa Monica City Council held on the 10th day of March 2020, by the following vote: AYES: Councilmembers Davis, Himmelrich, Jara, Morena, Winterer, Mayor Pro Tem O’Day, Mayor McKeown NOES: None ABSENT: None ATTEST: ________________________________ Denise Anderson-Warren, City Clerk DocuSign Envelope ID: 5DBC9064-73F1-47E1-A19A-B2A8372F5360