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R112381 City Council Meeting: March 10, 2020 Santa Monica, California RESOLUTION NUMBER 11238 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING THE BERGAMOT AREA PLAN 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 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 DocuSign Envelope ID: C3885E42-CE99-4832-94B3-2BB28AE3DC07 2 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 community’s broader social, environmental, and circulation goals – an approach defined in three tiers; and DocuSign Envelope ID: C3885E42-CE99-4832-94B3-2BB28AE3DC07 3 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, on September 11, 2013, the City Council adopted the Bergamot Area Plan (“BAP”), which provides policies and standards to transition 142.5 acres of former industrial lands into an arts-focused, transit-oriented, mixed use pedestrian-oriented neighborhood anchored by the Bergamot Exposition Light Rail Station; and WHEREAS, the BAP envisions creating the City’s most sustainable neighborhood—one that both conserves the authentic, industrial character that has fostered a creative community in the area and removes barriers to housing, local restaurants and services to take full advantage of the arrival of the Exposition Light Rail; and WHEREAS, the BAP encourages and creates opportunities to develop appropriate housing for all members of the community, with a target of at least 30% of housing affordable to people earning between 30% and 180% of the area median income; and WHEREAS, the BAP sets forth certain thresholds for processing development projects, including housing projects, in the plan area; 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 DocuSign Envelope ID: C3885E42-CE99-4832-94B3-2BB28AE3DC07 4 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 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 DocuSign Envelope ID: C3885E42-CE99-4832-94B3-2BB28AE3DC07 5 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 BAP. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. Amendments to the Bergamot Area Plan. Pursuant to Santa Monica Municipal Code Section 9.45.080 and 9.45.130, the City Council does hereby amend the Bergamot Area Plan as set forth in Exhibit A, attached to this Resolution and incorporated herein by reference. In adopting these amendments, the City Council hereby finds and declares that, based on the oral and written testimony presented to the City Council at the public hearing on March 10, 2020: DocuSign Envelope ID: C3885E42-CE99-4832-94B3-2BB28AE3DC07 6 The proposed amendments to the text of the Bergamot Area Plan are consistent with the General Plan in that amendments implement LUCE policies to support one hundred percent affordable housing through incentives for process and development potential. Specifically, Policies LU11.3 and LU11.6 seek to provide incentives for affordable housing with a focus on process streamlining, bonuses and flexible standards. Further, the proposed amendments also support housing production through process incentives for projects that comply with the objective standards in the General Plan and Zoning Ordinance. 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: C3885E42-CE99-4832-94B3-2BB28AE3DC07 7 EXHIBIT A [Behind this page] DocuSign Envelope ID: C3885E42-CE99-4832-94B3-2BB28AE3DC07 8 CHAPTER AND PAGE(S) PROPOSED AMENDMENTS TO THE BERGAMOT AREA PLAN 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. Development Standards and Land Use Regulations, p. 148 As discussed in Chapter 1, Introduction, the LUCE sets out three tiers for new development in the Bergamot Plan Area. Tier I is baseline, by-right development up to the discretionary review thresholds established by the Zoning Ordinance. Tier II and Tier III projects are allowed additional intensity and height if the associated development provides community benefits. Tier II projects shall be processed in accordance with the review thresholds established by the Zoning Ordinance. DocuSign Envelope ID: C3885E42-CE99-4832-94B3-2BB28AE3DC07 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. 11238 (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: C3885E42-CE99-4832-94B3-2BB28AE3DC07