O26481
City Council Meeting: September 8, 2020 Santa Monica, California
ORDINANCE NUMBER 2648 (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTION 9.10.070
TO ESTABLISH PROJECT REQUIREMENTS FOR TIER 3 HOUSING PROJECTS
GREATER THAN 90,000 SQUARE FEET LOCATED IN THE CITY’S DOWNTOWN
DISTRICTS
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, the DCP encourages the development of uses that support a 17 hours
a day/7 days a week environment that meets the needs of businesses and residents,
including retail goods and services, food stores, restaurants and cafés, hotels, health
clubs, entertainment, and comparable uses; 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 increasing the thresholds that trigger requirements for greater amounts
of process; and
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WHEREAS, the DCP’s requirements for Downtown housing projects are intended
to incentivize and place a priority on the development of housing in Downtown, implement
affordable housing requirements that result in a greater number and more diverse unit
mix, and ensure greater discretionary review for commercial projects; and
WHEREAS, the DCP establishes three application review procedures for housing
projects: Administrative Approvals, Development Review Permits, and Development
Agreements based on Tier level (1, 2, or 3) and the amount of proposed square footage
in a project; and
WHEREAS, the DCP requires Tier 3 housing projects greater than 90,000 square
feet require to be processed by a Development Agreement; and
WHEREAS, Santa Monica Municipal Code Section 9.10.070 sets forth project
requirements for all Tier 2 projects and Tier 3 projects up to 90,000 square feet; and
WHEREAS, on April 9, 2019, the City Council adopted Ordinance Number 2606
(CCS) (“Ordinance 2606”), which, in part, made minor clarifications to Santa Monica
Municipal Code Section 9.10.070; and
WHEREAS, portions of Section 9.10.070(C)(5) related to transportation demand
management for housing projects were inadvertently omitted from Ordinance 2606, and
the City Council desires to restore to Section 9.10.070(C)(5) the portions that were
inadvertently omitted from Ordinance 2606; 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 below which
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ministerial review would be permitted for certain housing projects would further stimulate
housing production; and
WHEREAS, on March 10, 2020, the City Council held a public hearing and adopted
an Emergency Interim Zoning Ordinance Number 2633 (CCS), authorizing 100%
Affordable Housing projects and housing projects compliant with the Housing
Accountability Act to be processed by Administrative Approval; and
WHEREAS, during its March 10, 2020 discussion, the City Council received
testimony requesting that the City consider allowing Tier 3 housing projects located in the
DCP area that exceed 90,000 square feet to be processed by Development Review
Permit as a further means of stimulating housing production and streamlining the housing
project approval process; and.
WHEREAS, approval of Tier 3 housing projects greater than 90,000 square feet
by Development Review Permit offers greater predictability in both the review process
and the requirements for applicants and is likely to decrease overall project costs; and
WHEREAS, amending the text of the DCP to allow for the processing of Tier 3
housing projects greater than 90,000 square feet by Development Review Permit will
encourage the development of larger housing projects and maximization of housing
opportunity, thereby increasing housing production in the Downtown; and
WHEREAS, establishing project requirements for Tier 3 housing projects greater
than 90,000 square feet located in the DCP area will increase the certainty for applicants
while implementing policies set forth in the Land Use and Circulation Element of the City’s
General Plan that require development above the base floor area ratio and height to be
accompanied by a range of community benefits, including incentives for the production of
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affordable housing and reductions in the additional burdens more intense development
allowed by the General Plan will impose on the City; and
WHEREAS, on May 13, 2020, the Planning Commission adopted a Resolution of
Intention, Resolution Number 20-011 (PCS), declaring its intention to consider
recommending to the City Council that the City Council amend the Zoning Ordinance to
establish project requirements for Tier 3 housing projects greater than 90,000 square feet
located in the DCP area; and
WHEREAS, on May 20, 2020, the Planning Commission conducted a public
hearing to consider its recommendations to the City Council, and, after considering oral
and written testimony regarding the proposed amendments to the text of the Zoning
Ordinance, made the following findings as set forth in Resolution Number 20-013 (PCS):
1. The proposed amendments to the text of the Zoning Ordinance are
consistent with the General Plan in that the amendments implement the LUCE
policies to create and support additional housing opportunities through incentives
for process and development potential. Specifically, Policy LU11.2 states to
expand housing opportunities near transit-rich districts including near Expo Light
Rail stations such as within the Transit Adjacent (TA) district and Policy LU11.3
seeks to provide incentives for housing/affordable housing. Further, the proposed
amendments support housing production through process incentives and design
flexibility for Tier 3 housing projects that are consistent with the DCP and project
requirements pursuant to the Zoning Ordinance; and
2. The proposed amendments to the text of the Zoning Ordinance are
consistent with the purpose of the Zoning Ordinance to promote the growth of the
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City in an orderly manner and to promote and protect the public health, safety, and
general welfare in that the proposed amendments will establish prescribed
community benefit requirements for Tier 3 downtown housing projects greater than
90,000 square feet and thereby incentivize the development of Tier 3 housing
projects within the Downtown Community Plan area; and
WHEREAS, on August 25, 2020, the City Council conducted a duly noticed hearing
to consider the findings and recommendations of the Planning Commission, and desires
to adopt the proposed Zoning Ordinance amendments set forth below.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Based upon the oral and written testimony presented to the City
Council at the public hearing on August 25, 2020 regarding the proposed changes to the
text of the Zoning Ordinance, the City Council hereby makes the following findings:
1. The proposed amendments to the text of the Zoning Ordinance are
consistent with the General Plan in that the amendments implement the LUCE
policies to create and support additional housing opportunities through incentives
for process and development potential. Specifically, Policy LU11.2 states to
expand housing opportunities near transit-rich districts including near Expo Light
Rail stations such as within the Transit Adjacent (TA) district and Policy LU11.3
seeks to provide incentives for housing/affordable housing. Further, the proposed
amendments support housing production through process incentives and design
flexibility for Tier 3 housing projects that are consistent with the DCP and project
requirements pursuant to the Zoning Ordinance.
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2. The proposed amendments to the text of the Zoning Ordinance are
consistent with the purpose of the Zoning Ordinance to promote the growth of the
City in an orderly manner and to promote and protect the public health, safety, and
general welfare in that proposed amendments will establish prescribed community
benefit requirements for Tier 3 downtown housing projects greater than 90,000
square feet and thereby incentivize the development of Tier 3 housing projects
within the Downtown Community Plan area.
SECTION 2. Santa Monica Municipal Code Section 9.10.070 is hereby amended
to read as follows:
9.10.070 Project Requirements
A. Purpose. The purpose of this section is to implement LUCE policies which
require that as development is approved above the base FAR and height, it must
accompanied by a range of community benefits from four priority categories: Affordable
Housing, Trip Reduction and Traffic Management, Community Physical Improvements,
and Social and Cultural Facilities. In addition to promoting the development of additional
affordable housing and to maintaining existing City programs that provide incentives for
the production of affordable housing, these requirements are intended to reduce the
additional burdens more intense development allowed by the General Plan will impose
on the City by requiring applicants to pay additional fees to mitigate project impacts or, in
specific instances, allowing applicants to incorporate features into their projects.
B. Applicability. Except for 100% Affordable Housing Projects, the
requirements of this Chapter apply to all projects involving new development and
additions for which applicants propose to exceed the maximum base floor area or height
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allowed for Tier 1 projects. The provisions of this Chapter establish the requirements
under which additional floor area and height may be allowed up to the Tier 2 or Tier 3
maximum standards established in the Downtown Community Plan.
C. Housing and Mixed-Use Residential Projects Qualifying Benefits. An
applicant seeking approval for a housing or mixed-use residential project that exceeds
the base floor area ratio or height allowed in the district where the project is located shall
provide community benefits in each of the following categories.
1. Housing. All Tier 2 projects and Tier 3 projects must meet the
following requirements:
a. Affordable Housing. Subject to the modifications contained in this
Section 9.10.070, all of the affordable units shall comply with the provisions of
Chapter 9.64. As set forth in Table 9.10.070.A, applicants proposing residential
and mixed-use residential projects shall incorporate the following:
i. A percentage of the total number of units in the project,
corresponding with the height or FAR of the project, shall be deed-restricted
as on-site affordable housing units. Any fractional affordable housing unit
that results from this formula shall be provided as a whole affordable
housing unit (i.e., any resulting fraction shall be rounded up to be the next
larger integer).
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Table 9.10.070.A: On-Site and Off-site Affordable Housing Requirements
Height
(Feet)
On-site
Affordable
Housing %
Off-site
Affordable
Housing %
On-Site
Affordable
Housing % for
Development
Agreements and
Planning
Applications
Complete on or
before 11/11/16
Off-Site
Affordable
Housing % for
Development
Agreements and
Planning
Applications
Complete on or
before 11/11/16
40-50 20% 25% 20% 25%
52 21% 26% 20% 25%
54 22% 27% 20% 25%
56 23% 28% 20% 25%
58 24% 29% 20% 25%
60 25% 30% 20% 25%
62 26% 31% 20% 25%
64 27% 32% 20% 25%
66 28% 33% 20% 25%
68 29% 34% 20% 25%
70-84 30% 35% 20% 25%
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ii. Affordable housing units may be provided offsite pursuant to
Section 9.64.060 except that the total number of affordable housing units
shall be increased to the percentage of the total number of units in the
project as set forth in Table 9.10.070.A. The offsite affordable housing units
shall meet the following conditions:
(1) the affordable housing units are owned in whole or part
and operated by a non-profit housing provider for the life of the
project;
(2) the Final Construction Permit Sign Off or Certificate of
Occupancy for the affordable units is issued prior to or
concurrently with the Tier 2 or qualifying Tier 3 project; and
(3) the location of the offsite location shall be within the
boundaries of the Downtown or within a one-quarter mile radius
of the market rate units.
iii. The total number of affordable housing units shall incorporate
the affordability mix specified in Table 9.10.070.B. Any fractional affordable
housing units that result from the percentage mix of total affordable housing
units shall be aggregated into whole affordable housing units (i.e. any
resulting fraction shall be added to other resulting fractions). The resulting
whole units may be provided at 30%, 50%, 80%, or Moderate-income
household affordability levels.
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Table 9.10.070.B. Affordability
Affordability Level Affordability Mix of
Total Number of Affordable
Housing Units
30% Income
Household
20%
50% Income
Household
20%
80% Income
Household
30%
Moderate Income 30%
iv. An affordable housing unit shall have a minimum total floor
area of no less than the average floor area of comparable market rate units
in the project.
b. Unit Mix. Applicants proposing residential and mixed-use projects
shall incorporate the following:
i. For market rate units:
(1) At least 15% of the units shall be three-bedroom units;
(2) At least 20% of the units shall be two-bedroom units:
(3) No more than 15% of the units shall be studio units;
(4) The average number of bedrooms for all of the market rate
units combined shall be 1.2 or greater; and
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(5) Notwithstanding subsections (C)(2)(a)(i)-(iii) above, any
fractional housing unit less than 0.5 that results from this unit mix shall
be rounded down to the next lower integer. Any fractional housing unit
of 0.5 or more that results from this units mix shall be rounded up to the
next larger integer.
ii. For affordable housing units:
(1) the average number of bedrooms for all of the affordable
housing units combined shall be equal to or greater than the average
number of bedrooms provided for all of the market rate units pursuant to
subsection (C)(2)(a) of this Section.
(2) Affordable housing units shall be no smaller than the average
size of comparable market rate units in the project.
iii. The Director may grant a waiver from this unit mix requirement
pursuant to the requirements and procedures for Waivers in SMMC Chapter
9.43.
2. Transportation Impact Fee.
a. All Tier 2 and Tier 3. Projects shall pay an additional Transportation
Impact Fee (TIF) of 90% of the maximum allowable fee established in the
Transportation Impact Fee nexus study, for that portion of the floor area above
the maximum Tier 1 floor area allowed by the Downtown Community Plan.
3. Open Space.
a. All Tier 2 and Tier 3. Projects shall pay an additional Parks and
Recreation Development Impact Fee of 90% of the maximum allowable fee
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established in the Parks and Recreation Fee nexus study for that portion of the
floor area above the maximum Tier 1 floor area allowed by the Downtown
Community Plan
4. Affordable Housing Commercial Linkage Fee.
a. All Tier 2 and Tier 3. Commercial portions of mixed-use projects shall
pay a housing mitigation fee 23 percent above the base fee as required by
Chapter 9.68, Affordable Housing Commercial Linkage Fee Program for that
portion of the floor area above the maximum Tier 1 floor area allowed by the
Downtown Community Plan
5. Transportation Demand Management. All Tier 2 and Tier 3
residential and mixed-use projects shall include the following Transportation
Demand Management measures in addition to those required by Chapter 9.53,
Transportation Demand Management:
a. For nonresidential components of projects, provide the
following:
i. Bike valet, free of charge, during all automobile valet
operating hours.
b. For residential components of projects, provide the following:
i. Free on-site shared bicycles intended for resident and
guest use. This shall be optional if Citywide bikeshare is available
within a 2-block radius of the project site.
D. All Other Projects Qualifying Benefits. An applicant seeking approval for
Tier 2 and Tier 3 projects up to 30,000 square feet that are not residential or mixed-use
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projects that exceed the base floor area or height allowed in the district where the project
is located shall provide community benefits in each of the following categories.
1. Impact Fees.
a. Affordable Housing Commercial Linkage Fee.
i. Tier 2 and Tier 3 up to 30,000 square feet – Projects shall pay
a housing mitigation fee 23% above the base fee as required by
Chapter 9.68, Affordable Housing Commercial Linkage Fee Program for
that portion of the floor area above the maximum Tier 1 floor area allowed
by the Downtown Community Plan
b. Transportation Impact Fee.
i. Tier 2 and Tier 3 up to 30,000 square feet – Projects shall pay
an additional transportation impact fee (TIF) 23% above the base fee
required by Chapter 9.66, Transportation Impact Fee Program, for that
portion of the floor area above the maximum Tier 1 floor area allowed by
the Downtown Community Plan.
c. Open Space.
i. Tier 2 and Tier 3 up to 30,000 square feet. Projects shall pay
an additional parks and recreation development impact fee 23% above the
base fee required by Chapter 9.67, Parks and Recreation Fee Program, for
that portion of the floor area above the maximum Tier 1 floor area allowed
by the Downtown Community Plan.
2. Transportation Demand Management. All Tier 2 and Tier 3
Projects shall include the following Transportation Demand Management
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measures in addition to those required by Chapter 9.53, Transportation Demand
Management: bike valet, free of charge, during all automobile valet operating
hours.
SECTION 3. 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.
SECTION 4. 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 5. 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:
_______________________
GEORGE S. CARDONA
Interim City Attorney
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Approved and adopted this 8th day of September, 2020.
_____________________________
Kevin McKeown, Mayor
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. 2648 (CCS) had its
introduction on August 25, 2020 and was adopted at the Santa Monica City
Council meeting held on September 8, 2020, by the following vote:
AYES: Councilmembers Davis, Himmelrich, Jara, McCowan, Winterer
Mayor Pro Tem O’Day, Mayor McKeown
NOES: None
ABSENT: None
ATTEST:
_____________________________________ _________________
Denise Anderson-Warren, City Clerk Date
A summary of Ordinance No. 2648 (CCS) was duly published
pursuant to California Government Code Section 40806.
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9/21/2020