SR 01-10-2023 10C
City Council
Report
City Council Meeting: January 10, 2023
Agenda Item: 10.C
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To: Mayor and City Council
From: David Martin, Director, City Planning
Subject: Introduction and Adoption of Proposed Emergency Interim Zoning Ordinance
to Extend Interim Zoning Regulations Allow Certain 100% Affordable Housing
Projects to Request Waivers or Reductions of Development Standards
Pursuant to State Density Bonus Law.
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding that no subsequent environmental review is required pursuant to
California Environmental Quality Act (CEQA) Guidelines § 15162 based on a
determination that the proposed project was analyzed as part of the 2021-2029
6th Cycle Housing Element Environmental Impact Report (EIR) [SCH No.
20212269242021] that was certified by Council on October 12, 2021 with an
Addendum to the EIR approved on October 11, 2022.
2. Introduce and adopt an emergency interim zoning ordinance to extend interim
zoning regulations adopted by Emergency Interim Zoning Ordinance No. 2732
(CCS) to allow qualifying 100% affordable housing projects that receive
unlimited density and up to three stories or 33 feet in additional height under
State Density Bonus Law to request additional waivers or reductions of
development standards.
Executive Summary
At its meeting on December 13, 2022, the City Council introduced and adopted
Emergency Interim Zoning Ordinance No. 2732 (CCS) to allows certain 100%
affordable housing projects, except in the Pico Neighborhood Area as outlined in Santa
Monica Municipal Code Figure 9.40.020.A, to request waivers or reductions of
development standards pursuant to State Density Bonus Law. The interim zoning
regulations provided in Emergency Interim Zoning Ordinance No. 2732 (CCS) will
expire on February 11, 2023 unless extended by the City Council. The proposed
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Emergency Interim Zoning Ordinance (Attachment “A”) recommends an extension of
the interim zoning regulations until May 31, 2023 to allow time to study and adopt
permanent regulations as part of Housing Element implementation.
Discussion
As described more fully in the Council staff report for the December 13, 2022 public
hearing (Attachment “C”), the purpose of the Emergency Interim Zoning Ordinance
(“IZO”) is to remove potential barriers to production of 100% affordable housing projects
on an interim basis while the City continues implementation of adopted Housing
Element programs. Housing Element implementation, which is scheduled to be
presented to the City Council in Spring 2023, includes comprehensive rezoning and
process streamlining as set forth in required 6th Cycle Housing Element Programs
including but not limited to 1F (Downtown standards), 1J (Citywide standards), 2C
(AHPP Update), and 2D (State Density Bonus).
More specifically for purposes of the proposed Emergency IZO, Housing Element
Program 2D requires revisions to the City’s Density Bonus Ordinance to ensure
consistency with recent changes in State Density Bonus Law, California Government
Code Section 65915 et seq.
As part of its adoption of the IZO on December 13th, the Council specified that the
authorization to seek waivers or reductions of development standards for certain 100%
affordable housing projects does not apply in the Pico Neighborhood Area, as outlined
in Santa Monica Municipal Code Figure 9.40.020.A, during this interim period. Staff will
further evaluate the concern expressed regarding potential overconcentration of 100%
affordable housing projects in the Pico Neighborhood Area as part of its work on the 6th
Cycle Housing Element implementation program that will be presented to City Council
later this year.
The proposed extension of the Emergency Interim Zoning Ordinance is now presented
to the City Council for introduction and adoption with a recommended expiration of May
31, 2023 to allow time for such study and implementation.
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Environmental Review
The proposed adoption of an Emergency IZO to allow a request for waivers of
development standards in conjunction with a 100% affordable housing project utilizing
State Density Bonus Law provisions was analyzed as part of the 2021-2029 6th Cycle
Housing Element Environmental Impact Report (EIR) [SCH No. 20212269242021] that
was certified by Council on October 12, 2021, with an Addendum to the EIR approved
on October 11, 2022. This approval of an Emergency IZO implements a portion of that
6th Cycle Housing Element project.
An analysis has been performed pursuant CEQA Guidelines § 15162 to determine
whether subsequent environmental review is required for the adoption of an Emergency
IZO to allow a request for waivers of development standards in conjunction with a 100%
affordable housing project utilizing State Density Bonus Law provisions. Based upon
this analysis, the following findings are made to support the determination that no
subsequent environmental review is required:
1) No substantial changes are proposed in the project which will require major
revisions of the previous EIR and Addendum due to the involvement of new
significant environmental effects or a substantial increase in the severity of
previously identified significant effects. In this case, there are no changes to the
project.
2) No substantial changes occur with respect to the circumstances under which the
project is undertaken which will require major revisions of the previous
addendum due to the involvement of new significant environmental effects or a
substantial increase in the severity of previously identified significant effects. In
this case, no substantial changes have occurred.
3) There is no new information, which was not known and could not have been
known at the time of the previous EIR and Addendum that the project will have
significant effect not discussed in the EIR and Addendum.
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Based upon these findings, it has been determined that no further environmental
documentation is required for this project.
Past Council Actions
Meeting Date Description
10/11/2022
(Attachment B)
Adoption of Resolution Amending the 6th Cycle (2021-2029)
Housing Element to the City’s General Plan and Approval of
Addendum to the Final Environmental Impact Report for the
6th Cycle (2021-2029) Housing Element
12/13/2022
(Attachment C)
Introduction and Adoption of Emergency Interim Zoning
Ordinance No. 2732 (CCS)
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared By: Roxanne Tanemori, Principal Planner
Approved
Forwarded to Council
Attachments:
A. Attachment A Ordinance Density Bonus for Affordable Housing 011023
B. Attachment B Link to 10-11-2022 Council Meeting
C. Attachment C Link to 12-13-2022 Council Meeting
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City Council Meeting: January 10, 2023 Santa Monica, California
ORDINANCE NUMBER _____ (CCS)
(City Council Series)
AN EMERGENCY INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA EXTENDING INTERIM ZONING REGULATIONS TO
UPDATE DENSITY BONUS REQUIREMENTS FOR 100% AFFORDABLE HOUSING
DEVELOPMENTS
WHEREAS, the State is experiencing a housing supply crisis, with housing
demand far outstripping supply; and
WHEREAS, the 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 a 7-year period; and
WHEREAS, the City of Santa Monica has long been committed to ensuring that
Santa Monica is an inclusive and affordable community despite mounting market
pressures; and
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WHEREAS, the City’s Land Use and Circulation Element, adopted in 2010, and
Zoning Ordinance, adopted in 2015, demonstrate this commitment through providing
extra bonuses and incentives for one hundred percent affordable housing; and
WHEREAS, on October 9, 2019, the Governor signed 18 bills into law to stimulate
housing production, including: AB 1763, which amends the State Density Bonus Law,
California Government Code Section 65915 et seq. (“SDBL”), to provide for increased
density bonuses and incentives and concessions for housing developments that contain
one hundred percent of all units in the development, including total units and density
bonus units, but exclusive of a manager's unit or units, are for lower income households,
except that up to 20 percent of the units in the development, including total units and
density bonus units, may be for moderate-income households (“100% affordable housing
developments”); and
WHEREAS, AB 1763, in part, provides that the City may not impose maximum
controls on density on 100% affordable housing developments located within one-half
mile of a major transit stop, and that those 100% affordable housing developments shall
also receive a height increase of up to three additional stories, or 33 feet; and
WHEREAS, AB 1763 further provides that 100% affordable housing developments
that received unlimited density are not eligible for additional waivers or reductions of
development standards; and
WHEREAS, on September 8, 2020, the City Council adopted Ordinance Number
2649 (CCS) which, in part, incorporated provisions of AB 1763, including the prohibition
against waivers for 100% affordable housing developments that receive unlimited density;
and
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Packet Pg. 535 Attachment: Attachment A Ordinance Density Bonus for Affordable Housing 011023 (5532 : Extension of Emergency IZO for 100% Affordable
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WHEREAS, AB 2345, which became effective on January 1, 2021, amended the
SDBL to allow a city to authorize a developer to request additional waivers or reductions
of development standards for 100% affordable housing developments that receive
unlimited density; and
WHEREAS, the City received a Regional Housing Needs Assessment (“RHNA”)
allocation for is 6th Cycle (2021-2029) Housing Element (“6th Cycle Housing Element”)
of 8,895 housing units, with approximately 70 percent allocated as affordable housing;
and
WHEREAS, this RHNA allocation will require the City to permit approximately
1,000 housing units annually between 2021 and 2029, 700 of which are required to be
affordable housing, representing an increase of approximately five times over the City’s
RHNA allocation for the 5th Cycle (2013-2021) Housing Element; and
WHEREAS, on October 11, 2022, the City Council adopted Resolution Number
11469 (CCS), adopting an amended 6th Cycle Housing Element, which was certified by
the State on October 14, 2022; and
WHEREAS, the 6th Cycle Housing Element represents the City’s longstanding
commitment to affordable housing, tenant protection, housing and services for special
needs groups, homeless services, sustainable development, and fair housing; and
WHEREAS one of the four key principles of the 6th Cycle Housing Element is to
increase housing production for all, with an emphasis on affordable housing; and
WHEREAS, through Housing Element Program 2D, the City has committed to
updating its density bonus ordinance to ensure consistency with SDBL and integration
into the City’s land use system no later than October 15, 2023; and
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WHEREAS, on August 4, 2021, the Planning Commission adopted Resolution
Number 21-007 (PCS) declaring its intention to consider recommending to the City
Council that the City Council amend the text of the Zoning Ordinance for consistency with
the goals, policies, and programs set forth in the 6th Cycle Housing Element, including
Program 2D; and
WHEREAS, the Planning Commission has been conducting discussions on
implementation of the Housing Element, and it is anticipated that the Commission will
make a formal recommendation to the City Council in January 2023; and
WHEREAS, if the Planning Commission makes a formal recommendation to the
City Council in January 2023, it is anticipated that amendments to the Zoning Ordinance
to implement Program 2D would not be presented to Council before February 2023, with
a likely effective date of April 2023; and
WHEREAS, agreeing to additional waivers or reductions of development
standards for 100% affordable housing developments that receive unlimited density will
facilitate the development of affordable housing within the City, consistent with the key
principles of the 6th Cycle Housing Element and Program 2D; and
WHEREAS, 100% affordable housing projects, with challenges in available
funding, often turn to financing sources such as tax credits, which establish a strict
schedule for obtaining entitlements and building permits; and
WHEREAS, if the City does not agree to waivers or reductions of development
standards before the anticipated effective date for implementation of Program 2D in the
Spring of 2023, it could jeopardize the production of 100% affordable housing
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developments within the City as well as the City’s ability to meet its RHNA allocation
goals; and
WHEREAS, on December 13, 2022, the City Council adopted Emergency Interim
Zoning Ordinance Number 2732 (CCS) (“IZO 2732”) to allow a housing development that
(a) receives a waiver from any maximum controls on density, and up to three additional
stories or 33 feet in height; and (b) is not located in the Pico Neighborhood Area, as
outlined in Figure 9.40.020.A, to seek additional waivers or reductions of development
standards in accordance with the provisions of SDBL and Santa Monica Municipal Code
Chapter 9.22; and
WHEREAS, a current and immediate threat to the public health, safety and welfare
continues to exist due to the State’s ongoing and unprecedented housing crisis, which
has resulted in the City’s RHNA allocation that heavily focuses on affordable housing
production; and
WHEREAS, adoption of this emergency Interim Zoning Ordinance to extend the
interim zoning regulations adopted by IZO 2732 is necessary to preserve public peace,
health, safety and welfare as it will remove barriers to production of housing, particularly
100% affordable housing developments as the City completes implementation of Housing
Element Program 2D.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Interim Zoning Regulations. Notwithstanding anything to the contrary
in Santa Monica Municipal Code Section 9.22.070(C), a housing development that (a)
receives a waiver from any maximum controls on density pursuant to Santa Monica
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Municipal Code Section 9.22.050(B)(3)(d)(ii), and up to three additional stories or 33 feet
in height in accordance with 9.22.060(A)(4), and (b) is not located in the Pico
Neighborhood Area, as outlined in Figure 9.40.020.A, shall be eligible for, and may
receive, additional waivers or reductions of development standards in accordance with
the provisions of SDBL and Santa Monica Municipal Code Chapter 9.22.
SECTION 2. Any provision of the Santa Monica Municipal Code or any appendix
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 3. 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 4. 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
immediately upon adoption. Pursuant to Sections 615 and 619 of the City Charter, and
Section 9.46.090 of the Municipal Code, for the reasons stated in the recitals above, the
staff report accompanying this ordinance, oral and written testimony received by the City
Council, and City Council discussion, the City Council declares this ordinance to be
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necessary as an emergency measure for preserving the public peace, health, and safety,
with the result that this ordinance shall be introduced and adopted at the same meeting
and shall become effective immediately upon its adoption.
SECTION 5. This Ordinance shall be of no further force or as of May 31, 2023,
unless it is otherwise extended pursuant to Santa Monica Municipal Code Section
9.46.090(C).
APPROVED AS TO FORM:
_________________________
DOUGLAS SLOAN
City Attorney
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Packet Pg. 540 Attachment: Attachment A Ordinance Density Bonus for Affordable Housing 011023 (5532 : Extension of Emergency IZO for 100% Affordable
Attachment B
Link to the October 11, 2022 City Council Meeting:
Adoption of Resolution Amending the 6th Cycle (2021-2029) Housing Element to the
City’s General Plan and Approval of Addendum to the Final Environmental Impact
Report for the 6th Cycle (2021-2029) Housing Element
https://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=
1320&MediaPosition=&ID=5191&CssClass=
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Packet Pg. 541 Attachment: Attachment B Link to 10-11-2022 Council Meeting (5532 : Extension of Emergency IZO for 100% Affordable Housing Projects (15
Attachment C
Link to the December 13, 2022 City Council Meeting:
Introduction and Adoption of an Emergency Interim Zoning Ordinance to Allow 100%
Affordable Housing Projects to Request Waivers or Reductions of Development
Standards Pursuant to State Density Bonus Law
https://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=
1326&MediaPosition=&ID=5467&CssClass=
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Packet Pg. 542 Attachment: Attachment C Link to 12-13-2022 Council Meeting (5532 : Extension of Emergency IZO for 100% Affordable Housing Projects (15