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R112391 City Council Meeting: March 10, 2020 Santa Monica, California RESOLUTION NUMBER 11239 (CCS) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING THE DOWNTOWN COMMUNITY PLAN TO INCREASE THRESHOLDS FOR MINISTERIAL REVIEW OF 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 areas, 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: E7D513A0-E9C8-4716-973D-16911D34C59D 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: E7D513A0-E9C8-4716-973D-16911D34C59D 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 July 25, 2017, the City Council adopted the Downtown Community Plan (“DCP”) which sets forth the City’s vision of the Downtown as a high quality, mixed- use district offering opportunities for housing for people across the income spectrum, jobs, arts and culture, local serving retail and community and visitor gathering places; and WHEREAS, in the DCP, Downtown housing projects are encouraged to support a strong and economically diverse residential neighborhood component; and WHEREAS, the DCP supports that encouragement by differentiating between housing projects and commercial projects and provides for various incentives for housing projects, including streamlined processing by allowing for ministerial review of all one hundred percent affordable housing projects and any other housing project up to 75,000 square feet; 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, 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, DocuSign Envelope ID: E7D513A0-E9C8-4716-973D-16911D34C59D 4 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 Bergamot Area Plan (“BAP”) and the 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 DocuSign Envelope ID: E7D513A0-E9C8-4716-973D-16911D34C59D 5 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 DCP. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. Amendments to the Downtown Community Plan. Pursuant to Santa Monica Municipal Code Section 9.45.080 and 9.45.130, the City Council does hereby amend the Downtown Community 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: The proposed amendments to the text of the Downtown Community 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. DocuSign Envelope ID: E7D513A0-E9C8-4716-973D-16911D34C59D 6 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: E7D513A0-E9C8-4716-973D-16911D34C59D 7 EXHIBIT A [Behind this page] DocuSign Envelope ID: E7D513A0-E9C8-4716-973D-16911D34C59D 8 CHAPTER AND PAGE(S) PROPOSED AMENDMENTS TO THE DOWNTOWN COMMUNITY PLAN Various Summary of Purpose: The amendments included herein will remove barriers to building housing by increasing ministerial process thresholds for housing projects that meet all objective standards in accordance with the Housing Accountability Act. Development Standards and Land Use Regulations, p. 28 Section 2A.4, Entitlement and Tier System The LUCE addresses the Downtown area from a broad policy perspective, outlining goals and objectives, but defers the specific land-use standards to the Downtown Community Plan. The DCP implements a modified version of the LUCE Tiering system, which provides distinct entitlement processes for projects of certain sizes and/or land uses. The DCP entitlement system differentiates between housing projects and commercial projects, and relies upon process thresholds to crate distinct entitlement pathways for each project type, which are summarized in Chapter 4, 9.10.050, Application Thresholds Table. Downtown housing projects are strongly encouraged to support a strong economically diverse residential neighborhood component to Downtown vitality. These are consequently provided more generous floor area thresholds than their commercial counterpart. Housing projects are defined in Chapter 4, Standards and Regulations, 9.10.050. • “Base” Projects Typically, developments that conform to Tier 1 standards are referred to as “base” projects. Base projects must meet minimum project requirements for setbacks, design and open space, and pay adopted fees for items such as affordable housing, trip reduction, cultural arts and child-care fees. Projects that provide the required percentage of Affordable Housing Production Program (AHPP) on-site are allowed an additional floor of housing for a maximum of three stories and 39 feet. 1. Housing Projects Any project up to 75,000 sq. ft. may be processed through an administrative approval. Any housing project that meets the definition of “housing development project” under the Housing Accountability Act and that, consistent with the Housing Accountability Act, complies with all applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at DocuSign Envelope ID: E7D513A0-E9C8-4716-973D-16911D34C59D 9 CHAPTER AND PAGE(S) PROPOSED AMENDMENTS TO THE DOWNTOWN COMMUNITY PLAN the time that the project application is deemed complete, may be processed through an administrative approval up to the thresholds established by Section 9.10.050. 2. Commercial Projects Smaller commercial projects that conform to Tier 1 standards may be processed through an Administrative Approval. Chapter 4, Development Standards and Regulations, p. 177 9.10.050, Application Thresholds Table B. Administrative Approval Review Procedures. 1. For projects eligible for an Administrative Approval under Table 9.10.050 and exempt from Development Review Permit Requirements under 9.10.050(C)(1) or (2), an applicant shall conduct a community meeting to receive community input on the proposal, which meeting shall be conducted prior to submitting an application and with noticing and reporting on the community meeting as required in guidelines adopted by the Director. 2. Following receipt of a recommendation from the Architectural Review Board, the Director shall issue a decision on the Administrative Approval in accordance with SMMC Chapter 9.39. C. Housing Exemptions. The following types of projects are exempt from Development Review Permit requirements: 1. 100% Affordable Housing Projects 2. Housing Projects that: a. 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,; b. Do not exceed the thresholds for Tier 2 projects established by Table 9.10.050; and DocuSign Envelope ID: E7D513A0-E9C8-4716-973D-16911D34C59D 10 CHAPTER AND PAGE(S) PROPOSED AMENDMENTS TO THE DOWNTOWN COMMUNITY PLAN c. For projects with rental units, the applicant agrees, prior to issuance of a building permit, to record a deed restriction against the property ensuring that: i. All leases shall be made only to a tenant who is a natural person, or to tenants who are natural persons; ii. All leases shall be made only to a tenant or tenants who, regardless of the term of occupancy, intend to make the rental unit the tenants’ domicile as defined in California Elections Code Section 349(b); iii. All prospective tenants shall be offered a written lease which has a minimum term of one (1) year; and iv. All units shall be leased as unfurnished units. DocuSign Envelope ID: E7D513A0-E9C8-4716-973D-16911D34C59D 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. 11239 (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: E7D513A0-E9C8-4716-973D-16911D34C59D