R113561
City Council Meeting: August 24, 2021 Santa Monica, California
RESOLUTION NUMBER 11356 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA AUTOMATICALLY ADJUSTING
THE AFFORDABLE HOUSING UNIT BASE FEE FOR
NEW MARKET-RATE MULTIFAMILY DEVELOPMENT PURSUANT TO
SANTA MONICA MUNICIPAL CODE SECTION 9.64.070(B) BASED ON
CHANGES IN CONSTRUCTION COSTS AND LAND COSTS
WHEREAS, on November 8, 2005, the City Council amended Santa Monica
Municipal Code Section 9.56.070, now renumbered Section 9.64.070, to provide that
commencing on July 1, 2006, the Affordable Housing Unit Base Fee shall be
automatically adjusted annually by City Council resolution based on changes in
construction costs and land costs; and
WHEREAS, in order to implement the Council’s decision, staff formulated a
specific method of measuring changes in construction costs and land costs; and
WHEREAS, this proposed methodology was detailed in an April 24, 2006 letter
prepared by Paul S. Silvern of HR&A Advisors, Inc. (“HR&A”) on behalf of the City and
approved by the Council on June 13, 2006; and
WHEREAS, pursuant to this methodology, on June 27, 2006, the City Council
adopted Resolution No. 10149 (CCS) which established an affordable housing unit base
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fee for condominiums of $28.15 per square foot and an affordable housing unit base fee
for apartments of $24.10 per square foot; and
WHEREAS, pursuant to this methodology, on July 24, 2007, the City Council
adopted Resolution No. 10229 (CCS) which incrementally adjusted these base fees by
$1.41 per square foot for new market rate condominiums and $1.21 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on July 23, 2008, the City Council
adopted Resolution No. 10329 (CCS) which incrementally adjusted these base fees by
$1.33 per square foot for new market rate condominiums and $1.14 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on September 8, 2009, the City Council
adopted Resolution No. 10422 (CCS) which incrementally adjusted these base fees by
$0.80 per square foot for new market rate condominiums and $0.69 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on September 28, 2010, the City
Council adopted Resolution No. 10529 (CCS) which incrementally decreased these base
fees by $0.41 per square foot for new market rate condominiums and $0.35 per square
foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on June 14, 2011, the City Council
adopted Resolution No. 10578 (CCS) which incrementally adjusted these base fees by
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$0.66 per square foot for new market rate condominiums and $0.56 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on September 11, 2012, the City
Council adopted Resolution No. 10705 (CCS) which incrementally adjusted these base
fees by $0.26 per square foot for new market rate condominiums and $0.22 per square
foot for new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 27, 2013, the City Council
adopted Resolution No. 10763 (CCS) which incrementally adjusted these base fees by
$0.26 per square foot for new market rate condominiums and $0.22 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 26, 2014, the City Council
adopted Resolution No. 10833 (CCS) which incrementally adjusted these base fees by
$2.34 per square foot for new market rate condominiums and $2.00 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 25, 2015, the City Council
adopted Resolution No. 10902 (CCS) which incrementally adjusted these base fees by
$1.71 per square foot for new market rate condominiums and $1.46 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 23, 2016, the City Council
adopted Resolution No. 10985 (CCS) which incrementally adjusted these base fees by
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$1.31 per square foot for new market rate condominiums and $1.13 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 8, 2017, the City Council
adopted Resolution No. 11069 (CCS) which incrementally adjusted these base fees by
$1.89 per square foot for new market rate condominiums and $1.62 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 14, 2018, the City Council
adopted Resolution No. 11130 (CCS) which incrementally adjusted these base fees by
$1.99 per square foot for new market rate condominiums and $1.70 per square foot for
new market rate apartments; and
WHEREAS, pursuant to this methodology, on August 13, 2019, the City Council
adopted Resolution No. 11191 (CCS) which incrementally adjusted these base fees by
$0.92 per square foot for new market rate condominiums and $0.79 per square foot for
new market rate apartments; and
WHERAS, for 2019 to 2020, the calculations determined that no incremental
adjustment to base fees was needed and so no resolution regarding base fees was
adopted; and
WHEREAS, Resolution No. 10149 (CCS), Resolution No. 10229 (CCS),
Resolution No. 10329 (CCS), Resolution No. 10422 (CCS), Resolution No. 10529 (CCS),
Resolution No. 10578 (CCS), Resolution No. 10705 (CCS), Resolution No. 10763 (CCS),
Resolution No. 10833 (CCS), Resolution No. 10902 (CCS), Resolution No. 10985 (CCS),
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Resolution No. 11069 (CCS), Resolution No. 11130 (CCS), and Resolution No. 11191
(CCS) thereby established an affordable housing unit base fee for condominiums of
$42.62 per square foot and an affordable housing unit base fee for apartments of $36.49
per square foot; and
WHEREAS, in accordance with Santa Monica Municipal Code Section 9.64.070
and the City Council’s approved methodology, staff has calculated the required
incremental adjustment to these base fees based on the changes to construction costs
and land costs that have occurred since the calculations demonstrating that no
adjustment was needed were undertaken last year; and
WHEREAS, on August 2, 2021, the City published a notice that at the August 24,
2021 City Council meeting, the City Council would consider a proposed resolution to
incrementally adjust the affordable housing fee that private developers pay to the City for
the production of affordable housing based on this methodology and that the staff analysis
was available for review in the City Clerk’s Office; and
WHEREAS, the City republished this notice on August 9, 2021; and
WHEREAS, a copy of staff’s analysis has been available in the City Clerk’s Office
for public review since August 2, 2021; and
WHEREAS, based on this analysis, a decrease in the amount of $0.99 per square
foot of the current Affordable Housing Unit Base Fee of $36.49 for apartments and a
decrease in the amount of $1.15 per square foot of the current Affordable Housing Unit
Base Fee of $42.62 for condominiums would be appropriate,
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The current Affordable Housing Unit Base Fee for new market rate
condominiums of $42.62 per square foot established by Resolution No. 10149 (CCS),
Resolution No. 10229 (CCS), Resolution No. 10329 (CCS), Resolution No. 10422 (CCS),
Resolution No. 10529 (CCS), Resolution No. 10578 (CCS), Resolution No. 10705 (CCS),
Resolution No. 10763 (CCS), Resolution No. 10833 (CCS), Resolution No. 10902 (CCS),
Resolution No. 10985 (CCS), Resolution No. 11069 (CCS), Resolution No. 11130 (CCS),
and Resolution No. 11191 (CCS) shall be decreased by $1.15 per square foot of floor
area.
SECTION 2. The current Affordable Housing Unit Base Fee for new market rate
apartments of $36.49 per square foot established by Resolution No. 10149 (CCS),
Resolution No. 10229 (CCS), Resolution No. 10329 (CCS), Resolution No. 10422 (CCS),
Resolution No. 10529 (CCS), Resolution No. 10578 (CCS), Resolution No. 10705 (CCS),
Resolution No. 10763 (CCS), Resolution No. 10833 (CCS), Resolution No. 10902 (CCS),
Resolution No. 10985 (CCS), Resolution No. 11069 (CCS), Resolution No. 11130 (CCS),
and Resolution No. 11191 shall be decreased by $0.99 per square foot of floor area.
SECTION 3. Resolution No. 10149 (CCS), Resolution No. 10229 (CCS),
Resolution No. 10329 (CCS), Resolution No. 10422 (CCS), Resolution No. 10529 (CCS),
Resolution No. 10578 (CCS), Resolution No. 10705 (CCS), Resolution No. 10763 (CCS),
Resolution No. 10833 (CCS), Resolution No. 10902 (CCS), Resolution No. 10985 (CCS),
Resolution No. 11069 (CCS), Resolution No. 11130 (CCS), and Resolution No. 11191
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(CCS) shall remain in full force and effect and shall not be superseded or altered by this
resolution in any way.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect on November 1, 2021.
APPROVED AS TO FORM:
_________________________
GEORGE S. CARDONA
Interim City Attorney
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Adopted and approved this 24th day of August 2021.
__________________________
Sue Himmelrich, Mayor
I, Denise Anderson-Warren, City Clerk of the City of Santa Monica, do hereby
certify that Resolution No. 11356 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 24th day of August 2021, by the following vote:
AYES: Councilmembers Brock, Davis, De la Torre, Negrete, Parra,
Mayor Pro Tem McCowan, Mayor Himmelrich
NOES: None
ABSENT: None
ATTEST:
_____________________________________
Denise Anderson-Warren, City Clerk
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