R113571
City Council Meeting: August 24, 2021 Santa Monica, California
RESOLUTION NUMBER 11357 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA AUTOMATICALLY ADJUSTING
THE AFFORDABLE HOUSING UNIT DEVELOPMENT COST PURSUANT
TO SANTA MONICA MUNICIPAL CODE SECTION 9.64.070(C)
BASED ON CHANGES IN CONSTRUCTION COSTS AND LAND COSTS
WHEREAS, on June 13, 2006, the City Council amended Santa Monica Municipal
Code Section 9.56.070, now renumbered Section 9.64.070, to provide that the City’s
affordable housing unit development cost shall be established by resolution and that
commencing on July 1, 2007, the affordable housing unit development cost shall be
automatically adjusted annually by City Council based on changes in construction costs
and land costs; and
WHEREAS, Santa Monica Municipal Code Section 9.64.020 defines “affordable
housing unit development cost” as “the City’s average costs to develop a unit of housing
affordable to 30% income households, 50% income households, 80% income households
or moderate-income households;” and
WHEREAS, in order to implement the Council’s decision that the affordable
housing unit development cost be adjusted based on changes in land and construction
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costs, 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 July 24, 2007, the City Council
adopted Resolution No. 10230 (CCS) which established an affordable housing unit
development cost of $265,632; and
WHEREAS, pursuant to this methodology, on July 23, 2008, the City Council
adopted Resolution No. 10330 (CCS) which incrementally adjusted this unit development
cost by $11,953; and
WHEREAS, pursuant to this methodology, on September 8, 2009, the City Council
adopted Resolution No. 10423 (CCS) which incrementally adjusted this unit development
cost by $7,217; and
WHEREAS, pursuant to this methodology, on September 28, 2010, the City
Council adopted Resolution No. 10530 (CCS) which incrementally decreased this unit
development cost by $3,702; and
WHEREAS, pursuant to this methodology, on June 14, 2011, the City Council
adopted Resolution No. 10579 (CCS) which incrementally adjusted this unit development
cost by $5,903; and
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WHEREAS, pursuant to this methodology, on September 11, 2012, the City
Council adopted Resolution No. 10706 (CCS) which incrementally adjusted this unit
development cost by $2,296; and
WHEREAS, pursuant to this methodology, on August 27, 2013, the City Council
adopted Resolution No. 10764 (CCS) which incrementally adjusted this unit development
cost by $2,314; and
WHEREAS, pursuant to this methodology, on August 26, 2014, the City Council
adopted Resolution No. 10834 (CCS) which incrementally adjusted this unit development
cost by $20,996; and
WHEREAS, pursuant to this methodology, on August 25, 2015, the City Council
adopted Resolution No. 10903 (CCS) which incrementally adjusted this unit development
cost by $15,318; and
WHEREAS, pursuant to this methodology, on August 23, 2016, the City Council
adopted Resolution No. 10986 (CCS) which incrementally adjusted this unit development
cost by $11,805;
WHEREAS, pursuant to this methodology, on August 8, 2017, the City Council
adopted Resolution No. 11070 (CCS) which incrementally adjusted this unit development
cost by $16,987; and
WHEREAS, pursuant to this methodology, on August 14, 2018, the City Council
adopted Resolution No. 11131 (CCS) which incrementally adjusted this unit development
cost by $17,836; and
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WHEREAS, pursuant to this methodology, on August 13, 2019, the City Council
adopted Resolution No. 11192 (CCS) which incrementally adjusted this unit development
cost by $8,240; and
WHEREAS, for 2019 to 2020, the calculations determined that no incremental
adjustment to unit development cost was needed and so no resolution regarding unit
development cost was adopted; and
WHEREAS, Resolution No. 10230 (CCS), Resolution No. 10330 (CCS),
Resolution No. 10423 (CCS), Resolution No. 10530 (CCS), Resolution No. 10579 (CCS),
Resolution No. 10706 (CCS), Resolution No. 10764 (CCS), Resolution No. 10834 (CCS),
Resolution No. 10903 (CCS), Resolution No. 10986 (CCS), Resolution No. 11070 (CCS),
Resolution No. 11131 (CCS), and Resolution No. 11192 thereby established an
affordable housing unit development cost of $382,795; 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 the unit development cost 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
adjust the affordable housing unit development cost that private developers may 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
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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 $10,335 to the
current affordable housing development cost of $382,795 would be appropriate,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The current Affordable Housing Unit Development Cost of $382,795
established by Resolution No. 10230 (CCS), Resolution No. 10330 (CCS), Resolution
No. 10423 (CCS), Resolution No. 10530 (CCS), Resolution No. 10579 (CCS), Resolution
No. 10706 (CCS), Resolution No. 10764 (CCS), Resolution No. 10834 (CCS), Resolution
No. 10903 (CCS), Resolution No. 10986 (CCS), Resolution No. 11070 (CCS), Resolution
No. 11131 (CCS), and Resolution No. 11192 (CCS) shall be decreased by $10,335.
SECTION 2. Resolution No. 10230 (CCS), Resolution No. 10330 (CCS),
Resolution No. 10423 (CCS), Resolution No. 10530 (CCS), Resolution No. 10579 (CCS),
Resolution No. 10706 (CCS), Resolution No. 10764 (CCS), Resolution No. 10834 (CCS),
Resolution No. 10903 (CCS), Resolution No. 10986 (CCS), Resolution No. 11070 (CCS),
Resolution No. 11131 (CCS), and Resolution No. 11192 (CCS) shall remain in full force
and effect and shall not be superseded or altered by this resolution in any way.
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SECTION 3. 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. 11357 (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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