SR 07-18-2023 10A
City Council
Report
City Council Meeting: July 18, 2023
Agenda Item: 10.A
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To: Mayor and City Council
From: David Martin, Director, City Planning
Subject: Introduction and First Reading of an Ordinance Amending the Text of the
Zoning Ordinance to Provide Incentives for Certain Housing Projects That
Filed an Application Prior to Implementation of the City’s 6th Cycle (2021-
2029) Housing Element
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 Section15162 based on
a determination that the adoption of development incentives as set forth in the
proposed ordinance amending the Zoning Ordinance was analyzed as part of the
2021-2029 6th Cycle Housing Element Environmental Impact Report (EIR ) [SCH
No. 2020100575] that was certified by the City Council on October 12, 2021 with
an Addendum to the EIR approved by the City Council on October 11, 2022.
2. Introduce for first reading an Ordinance amending the text of the Zoning
Ordinance to provide incentives for certain housing projects that filed an
application prior to implementation of the City’s 6th Cycle (2021-2029) Housing
Element.
Executive Summary
This report provides a summary of a proposed Zoning Ordinance amendment that
would establish certain housing development incentives for applicants that have
asserted eligibility for processing under the “builder’s remedy” provision of the Housing
Accountability Act (“HAA”), California Government Code section 65589.5(d). These
housing project applications were filed prior to the State of California’s Housing and
Community Development Department’s (“HCD”) certification of the City’s 6th Cycle
(2021-2029) Housing Element on October 14, 2022.
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The City Council is being asked to consider a proposed Ordinance amending Santa
Monica Municipal Code (SMMC) Chapter 9.31 for the purpose of incentivizing the
production of housing on certain parcels subject to applications for housing
development projects that have asserted eligibility for processing under the “Builder’s
Remedy” provision of the Housing Accountability Act (“HAA”), California Government
Code section 65589.5(d), that were filed between September 30, 2022 and October 13,
2022, prior to certification of the 6th Cycle (2021-2029) Housing Element.
As discussed in the Background section of this report, on May 9, 2023, the Santa
Monica City Council approved a Settlement Agreement with WS Communities, LLC and
its affiliates (“WS” or “owners”), the owners of 13 Builder’s Remedy housing projects
development sites with pending applications. The Settlement Agreement addresses the
disposition of these Builder’s Remedy applications and also provides an option, but
does not require, the City Council to adopt a permanent ordinance to allow use of the
ministerial development process already authorized in the Housing Element
implementing ordinance adopted on April 11, 2023. If adopted, these incentives would
further incentivize voluntary use of the ministerial development process authorized for
housing projects in the April 11, 2023 Zoning Ordinance amendments as an alternative
to the submitted Builder’s Remedy projects that significantly exceed codified
development standards, including building height and floor area ratio (“FAR”).
Background
The City’s 6th Cycle (2021-2029) Housing Element was certified by the California
Department of Housing and Community Development (“HCD”) on October 14, 2022.
Prior to that certification, between September 30, and October 13, 2022, the City
received 15 preliminary applications for housing development projects pursuant to
Government Code Section 65941.1. The applicants for the 15 housing development
projects assert that the projects are eligible for processing under the Builder’s Remedy
provision of the Housing Accountability Act, California Government Code section
65589.5(d), (the “Builder’s Remedy applications”).
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The Builder’s Remedy provision prohibits a local agency from disapproving a housing
development project, that provides at least 20 percent of total units for very l ow, low-, or
moderate-income households, or condition approval in a manner that renders the
housing development project infeasible for development for the use of very low, low -, or
moderate-income households unless the local agency is able to make certain specific
findings, including, but not limited to, the housing development project is inconsistent
with both the jurisdiction's zoning ordinance and general plan land use designation as
specified in any element of the general plan as it existed on the date the application was
deemed complete, and the jurisdiction has adopted a housing element that is in
substantial compliance with State Housing Element law.
The Builder’s Remedy applications propose housing development projects that are
inconsistent with the City’s Land Use and Circulation Element (“LUCE”) and Zoning
Ordinance, in part, because the housing development projects exceed height and floor
area ratio (“FAR”) maximums.
On April 11, 2023, the City Council adopted Ordinance Number 2742 (CCS),
implementing the certified 6th Cycle (2021-2029) Housing Element (“Ordinance 2742”),
in conjunction with the Housing Element Environmental Impact Report (EIR) [SCH No.
2020100575] that was certified by Council on October 12, 2021, with an Addendum to
the EIR approved on October 11, 2022. The implementation incentivizes housing
production in order to meet the City’s Regional Housing Needs Assessment and
Affirmatively Furthering Fair Housing obligations mandated by State law through,
among other things, providing for increased heights and FARs in the City’s
nonresidential districts, and streamlined ministerial approval processes for housing
projects that are consistent with the City’s objective standards.
On May 9, 2023, the Santa Monica City Council approved a Settlement Agreement with
WS, the owners of the following properties:
• 1433-1437 6th Street,
• 601 Colorado Avenue,
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• 1518-1524 7th Street,
• 1441-1443 Lincoln Boulevard,
• 3000-3030 Nebraska Avenue,
• 2901 Santa Monica Boulevard,
• 1425 5th Street,
• 1557 7th Street,
• 1238 7th Street,1925 Broadway,
• 1238-1242 10th Street,
• 1007 Lincoln Boulevard, and
• 1038 10th Street.
The Settlement Agreement addresses the status of 13 of the pending Builder’s Remedy
applications filed by WS. The City and owners of these properties disagree on the
applicability of the Builder’s Remedy statute. Consequently, the parties elected to settle
various disputes involving the Builder’s Remedy projects and unrelated litigation.
Specifically, the parties agreed to settle pending litigation against each other pertaining
to the City’s leasing ordinance (requiring leasing periods of no less than one year) and
alleged violations of consumer and tenant protection laws by the City against certain
WS affiliates. The Settlement Agreement provides financial benefits for three recently
displaced tenants of 1242 10th Street and guarantees them the right to return. The
Settlement Agreement would also authorize the transfer of 20 deed -restricted affordable
units from 1560 Lincoln Boulevard to 1038 10th Street.
The Settlement Agreement also includes a completely optional component that the City
is under no obligation to pursue and that provides reciprocal benefits to the parties
independent of the other provisions of the Settlement Agreement. Under these optional
provisions, the City may adopt an ordinance that contemplates WS’s use of the
ministerial development process already authorized in Ordinance 2742. If adopted,
these incentives would further facilitate the owners’ voluntary use of the ministerial
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development process previously authorized in Ordinance 2742, rather than continue to
propose development under the Builder’s Remedy statute.
On June 19, 2023, the Planning Commission adopted Resolution No. 23 -011 (PCS)
(Attachment “B”) recommending to the City Council that the Council amend the text of
the Zoning Ordinance to provide incentives for certain housing projects that filed an
application prior to implementation of the City’s 6th Cycle (2021 -2029) Housing
Element.
Discussion
As presented in the Background section of this report, the Settlement Agreement
approved between the City and WS addresses the disposition of 13 of the Builder’s
Remedy projects submitted by WS. The Settlement Agreement specifies that
processing of these 13 Builder’s Remedy applications have been temporarily
suspended; confirms the applicability of the new development standards and process
streamlining for housing projects approved on April 11, 2023 through Ordinance 2742 to
implement the certified Housing Element; and establ ishes the option for the City to
adopt a permanent ordinance to create additional incentives for applicants to propose
new housing development projects on these sites that would be consistent with the
City’s LUCE and Zoning Ordinance and therefore subject to ministerial/administrative
review.
The Proposed ordinance (Attachment “A”) provides the redline amendments to the
Zoning Ordinance that are contemplated by the Settlement Agreement. If adopted by
the City Council, the owner of each development site ma y, but is in no way obligated to,
utilize these provisions, which would provide the following local incentives:
Affordable Housing Units
Affordable housing obligations for projects proposed under the Zoning Ordinance
amendments (“Ordinance Projects”) may be provided off-site at any commercially or
residential zoned parcel in the City outside of the Pico Neighborhood Area as identified
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SMMC Figure 9.40.020.A (the “Off-site Affordable Option”). The Off-site Affordable
Option may not be utilized on properties improved with residential units.
In exercising the Off-site Affordable Option, the Ordinance Project would be required to
provide 15% of the total number of base density (i.e., pre density bonus) units as off -site
affordable housing units, as opposed to the 20% off-site affordable requirement, which
was recently adopted consistent with the certified Housing Element.
State Density Bonus Benefits.
Under the State Density Bonus Law, the required affordable units must be provided on -
site as part of the development project to be eligible for a density bonus and related
benefits. However, the Off-Site Affordable Option would allow the same State Density
Bonus Law benefits (i.e., up to a 50% market rate density bonus, three permitted
incentives, and additional waivers of development standards) as if the affordable units
were to be provided on-site.
Timing for Completion
Under the Off-Site Affordable Option, the off-site affordable units would need to receive
a certificate of occupancy prior to issuance of a certificate of occupancy for the market
rate units. However, nothing would prevent the market rate units from obtaining a
building permit and commencing construction concurrent with or prior to the
corresponding off-site affordable units.
Parking Benefit
Any Ordinance Project located within the Downtown Community Plan area would also
be allowed a maximum of one parking space per unit under the Ordinance, as opposed
to the current maximum requirement of one-half space per unit.
Termination
The provisions for Affordable Housing Units, State Density Bonus Benefits, and Timing
of Completion would terminate and upon issuance of Administrative Approval
applications for a total of 965 “additional units”. For purposes of this requirement,
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“additional units” means the total amount of units provided by one or more eligible
Ordinance Projects, including market rate, affordable, on -site and off-site units, that
exceed the collective unit capacity allocated to the properties associated with the
Ordinance Projects under the Suitable Sites Inventory for the City’s 6th Cycle (2021 -
2029) Housing Element.
This provision does not impose any limit on the number of units of the Ordinance
Projects (either individually or collectively) that do not utilize the off-site Affordable
Housing benefits.
In addition, the Parking Benefit will continue to apply to any Ordinance Projects located
within the Downtown Community Plan area in the event that the criteria for Termination
are met.
Conclusion
As demonstrated above, the primary benefit of the proposed Zoning Ordinance is the
ability to locate affordable units off-site and still obtain the benefits under the State
Density Bonus Law, which would otherwise require all affordable units to be located on -
site. However, practical considerations, such as control of other appropriate sites, could
effectively prevent or discourage project site owners from utilizing this incentive.
Additionally, whether or not the Ordinance is utilized, projects proposed at Sites would
be subject to the City’s Administrative Approval processing, which is already codified as
Downtown Community Plan Section 9.10.050(B) and Municipal Code Chapter 9.39, and
expedited processing timelines provided under the Settlement Agreement independent
of the Ordinance.
Zoning Text Amendment Findings
1. The amendments to the text of the Zoning Ordinance are consistent with the
General Plan and any applicable Specific Plans in that the amendments
incentivize the production of housing projects that are consistent wit h the
General Plan and any applicable Specific Plan on parcels that are subject to
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pending applications for housing development projects that have asserted
eligibility for processing under the “Builder’s Remedy” provision of the Housing
Accountability Act (California Government Code section 65589.5(d)), that were
filed prior to certification of the City’s 6th Cycle (2021 -2029) Housing Element.
These Builder’s Remedy applications do not comply with General Plan or
applicable Specific Plan standards for Floor Area Ratio or building height. The
new projects that may be submitted in accordance with the text amendments
would comply with General Plan and applicable Specific Plan development
standards for Floor Area Ratio and building height and provide new deed -
restricted affordable and market-rate housing units in Santa Monica.
2. The 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 the amendments will incentivize the production of General Plan, Specific
Plan, and Zoning Ordinance compliant housing on parcels that are subject to
pending applications for housing development projects that have asserted
eligibility for processing under the “Builder’s Remedy” provision of the Housing
Accountability Act (California Government Code section 65589.5(d)), that were
filed prior to certification of the City’s 6th Cycle (2021 -2029) Housing Element.
These Builder’s Remedy applications do not comply with General Plan or Zoning
Ordinance standards for Floor Area Ratio or building height. The new projects
that may be submitted in accordance with the text amendments would comply
with General Plan, Specific Plan, and Zoning Ordinance development standards
for Floor Area Ratio and building height and therefore promote the orderly growth
of the City in a manner that protects public health, safety and general welfare in
comparison to projects that exceed General Plan, Specific Plan, and Zoning
Ordinance development parameters.
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Effective Date of Action
If adopted, the proposed Zoning Ordinance amendment would take effect 30 days after
second reading of the ordinance which is anticipated to be scheduled on July 25,
2023.
Environmental Analysis
An analysis of the proposed Zoning Ordinance Amendments was prepared pursuant to
State California Environmental Quality Act (CEQA) Guidelines. Based on this analysis,
the 6th Cycle Housing Element Final Environmental Impact Report (SCH No.
20212269242021), certified on October 12, 2021, and the Addendum to the Final EIR,
adopted on October 11, 2022, accounts for and analyzes the potential environmental
effects associated with the proposed Zoning Ordinance Amendments and Ordinance
Projects. Therefore, the proposed Zoning Ordinance Amendments do not trigger any of
the conditions described in CEQA Guidelines Section 15162 that would require the
preparation of a supplemental EIR or negative declaration pursuant to CEQA Guidelines
Section 15168(c).
The following provides the summary of this analysis:
The Housing Element EIR analyzed a total of 11,025 housing units planned in the City
during the 6th Cycle period of 2021-2029. Subsequent to certification of the Housing
Element EIR, the City revised the Housing Element and prepared an addendum to the
Housing Element EIR (“Housing Element Addendum”) that analyzed the total planned
number of units in the City from 11,025 to 13,600 housing units.
The Suitable Site Inventory (“SSI”) contained in the certified Housing Element is the
City’s roadmap to achieving the commitment of 13,600 units and identifies specific sites
for housing along with their potential housing capacity. Although the certified Housing
Element calls for, and the SSI accommodates, 13,600 units, the Housing Element
Addendum “conservatively considers maximum theoretical buildout with an additional
10-percent increase, for a total of 14,565 dwelling units.” Therefore, the Housing
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Element Addendum provides a 965-unit buffer (“Buffer”) to cover and analyze potential
environmental effects for units proposed beyond those accounted for in the certified
Housing Element SSI.
The proposed Zoning Ordinance Amendments will restrict the density of the projects
proposed under the proposed Ordinance (“Ordinance Projects”) (including the related
offsite affordable receiver sites) to no more than the unit capacity assumed in the SSI at
the site (the “SSI Credit”) plus any additional units beyond the SSI Credit so long as the
additional units collectively proposed for Ordinance Projects do not exceed the buffer of
965 units. Since the proposed provisions for Affordable Housing Units, State Density
Bonus Benefits, and Timing of Completion for Ordinance Projects would terminate and
upon issuance of Administrative Approval applications for a total of 965 additional units,
the potential environmental impacts resulting from amendments to the Zoning
Ordinance have been adequately analyzed in the Housing Element EIR and Add endum
and do not trigger any of the conditions described in CEQA Guidelines Section 15162
that would require the preparation of a supplemental EIR or negative declaration
pursuant to CEQA Guidelines Section 15168(c).
Past Council Actions
Meeting Date Description
October 11, 2022 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
February 22 and February 28, 2023 Study Session on Implementation of 6th
Cycle (2021-2029) Housing Element
Programs
March 21, 2023 and April 11, 2023 Adoption of a finding that various
amendments necessary to implement the
City’s Certified 6th Cycle (2021-2029)
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Housing Element were analyzed as part
of the 2021-2029 6th Cycle Housing
Element Environmental Impact Report
(EIR) and Addendum, and no further
review pursuant to the California
Environmental Quality Act (CEQA) is
required
First and Second Reading, as required:
Adoption of ordinances for amendments
to the LUCE, DCP, BAP, and Zoning
Ordinance, LUCE designation map, and
Zoning Districting Map, LUCE
designation map, and Zoning Districting
Map implementing Certified 6th Cycle
(2021-2029) Housing Element programs
May 9, 2023
City Council approved a Settlement
Agreement with WS, the owners of the
following properties: 1433-1437 6th
Street, 601 Colorado Avenue, 1518-1524
7th Street, 1441-1443 Lincoln Boulevard,
3000-3030 Nebraska Avenue, 2901
Santa Monica Boulevard, 1425 5th
Street, 1557 7th Street, 1238 7th
Street,1925 Broadway, 1238-1242 10th
Street, 1007 Lincoln Boulevard, and
1038 10th Street
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action. Staff will return to Council if specific budget actions are required
in the future.
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Prepared By: Roxanne Tanemori, Principal Planner
Approved
Forwarded to Council
Attachments:
A. Attachment B PC Resolution 23-011.docx
B. Attachment A Ordinance Incentives for Certain Housing Projects 071823
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Planning Commission Meeting June 21, 2023 Santa Monica, California
RESOLUTION NUMBER 23-011 (PCS)
(Planning Commission Series)
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF SANTA
MONICA RECOMMENDING TO THE CITY COUNCIL THAT THE COUNCIL AMEND
THE TEXT OF THE CITY’S ZONING ORDINANCE TO PROVIDE INCENTIVES FOR
CERTAIN HOUSING PROJECTS THAT FILED AN APPLICATION PRIOR TO
IMPLEMENTATION OF THE CITY’S 6TH CYCLE (2021-2029) HOUSING ELEMENT
WHEREAS, the Housing Element Law, California Government Code Sec tions
65580 et seq., requires the City to review and update the Housing Element of its General
Plan every eight years; and
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, 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 pove rty 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 7 years; and
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WHEREAS, the City received a Regional Housing Needs Assessment (“RHNA”)
allocation for the 6th Cycle (2021-2029) Housing Element of approximately 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, in September 2020, the City commenced a public outreach process
for the 6th Cycle Housing Element, which consisted of creation of a dedicated website,
presenting informational webinars, seeking input through questionnaires and surveys,
forming two technical working groups, and conducting a series of study sessions with the
Planning Commission, Housing Commission, Rent Control Bo ard, and the City Council;
and
WHEREAS, on or about May 24, 2021, City staff published a Draft 6th Cycle
Housing Element (“Draft Housing Element”); and
WHEREAS, on June 2 and 3, 2021, the Planning Commission conducted a public
hearing on the Draft Housing Element and made recommendations to the City Council;
and
WHEREAS, on June 15, 2021, the City Council conducted a public hearing to
discuss the Draft Housing Element and directed staff to transmit the Draft Housing
Element to the California Department of Housing and Community Development (“HCD”)
with revisions; and
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WHEREAS, on July 1, 2021, City staff transmitted the Draft Housing Element, as
revised by the City Council, to HCD for a 60-day review period; and
WHEREAS on August 4, 2021, in accordance with Santa Monica Municipal Code
Section 9.46.030(B), the Planning Commission adopted a Resolution of Intention,
Resolution Number 21-007 (PCS), declaring its intention to consider recommending to
the City Council that the City Council adopt amendments to the text of the Zoning
Ordinance for consistency with the Goals, Policies and Programs of the 6th Cycle
Housing Element, and minor changes, corrections and clarifications to the text of the
Zoning Ordinance related to parcel coverage limitations for existing structures in the City’s
R1 (Single-Unit Residential) Districts and standards for accessory structures for
consistency with Council direction to return with amendments to the City’s home -share
rules; and
WHEREAS, on August 30, 2021, in accordance with Government Code Section
65585, HCD issued a letter to report on its review of the Draft Housing Element; and
WHEREAS, HCD’s review concluded that the draft Housing Element addressed
many statutory requirements, but that revisions would be necessary to substantially
comply with State Housing Element Law; and
WHEREAS, in its review letter, HCD set forth recommended revisions to the Draft
Housing Element to, among other things, provide additional information and a nalysis of
the City’s: housing needs, resources, and constraints related to fair housing; population
and employment trends; household characteristics; Suitable Sites Inventory (“SSI”);
zoning regulations for a variety of housing types; governmental and non governmental
constraints on housing; special housing needs; and “at risk” housing units; and
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WHEREAS, HCD further recommended that the City make revisions to housing
programs set forth in the Draft Housing Element to: demonstrate adequate capacity for
the RHNA allocation; address, and where legally possible, remove, constraints to the
maintenance, improvement and development of housing; promote and affirmatively
further fair housing; and preserve assisted housing development for low -income
households; and
WHEREAS, on September 8, 2021, the Planning Commission held a discussion
to consider HCD’s review and recommendations and to discuss concepts that would
address those recommendations; and
WHEREAS, on September 20, 2021, the Planning Commission conducted a
discussion to review proposed revisions to the Draft Housing Element to address HCD’s
recommendations; and
WHEREAS, on September 24, 2021, Planning Commission conducted a duly
noticed public hearing, and after considering oral and written test imony, adopted a
Resolution of Recommendation, Resolution Number 21-011 (PCS), recommending to the
City Council that the City Council adopt the 6th Cycle Housing Element; and
WHEREAS, on October 12, 2021, the City Council conducted a duly noticed public
hearing to consider HCD’s comments and the recommendation of the Planning
Commission, and, after considering oral and written testimony, adopted Resolution
Number 11371 (CCS) adopting the 6th Cycle (2021-2029) Housing Element, which the
City transmitted to HCD for review and certification; and
WHEREAS, on February 8, 2022, the City received a letter from HCD determining
that although the Adopted 6th Cycle Housing Element addressed “many statutory
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requirements,” “revisions would be necessary to comply with State Housing Element
Law”; and
WHEREAS, the City immediately began efforts to address HCD’s letter, including
scheduling a teleconference with HCD staff on February 14, 2022 to determine the City’s
required next steps in order to achieve an HCD-compliant Housing Element and
conducting a Study Session with the Planning Commission on March 2, 2022; and
WHEREAS, after the February 14, 2022 teleconference, the City continued to meet
with HCD on a consistent basis in an effort to work toward addres sing HCD’s concerns
to allow for the submission of a compliant Housing Element; and
WHEREAS, the City also initiated other efforts to bring the 6th Cycle Housing
Element into compliance, including an April 26, 2022 study session with Council, and
Study Sessions with the Planning Commission on May 11 and June 1, 2022; and
WHEREAS, in consideration of the comments received in the February 8, 2022
letter, consultations with HCD, and input received during study sessions with the City
Council and Planning Commission, City staff prepared draft redline revisions to the
Housing Element to primarily: 1) make technical revisions; 2) address affirmatively
furthering fair housing obligations; and 3) strengthen the City’s commitment to
development of affordable housing on City-owned sites; and
WHEREAS on June 15, 2022, the Planning Commission considered the draft
redline amendments to the 6th Cycle Housing Element in response to HCD’s comments,
that, among other things, made technical revisions, and proposed amendments to the
element’s affirmatively furthering fair housing requirements and program related to City-
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owned sites, made recommended revisions, and recommended that the City Council
direct staff to transmit the redline revisions to HCD for review; and
WHEREAS, on June 21, 2022, the City Council reviewed the draft revisions to the
6th Cycle Housing Element, made recommended revisions, and directed staff to transmit
to HCD for review and comment; and
WHEREAS, on July 8, 2022, the City submitted the draft revised Housing Element
to HCD for review and comment; and
WHEREAS, on September 6, 2022, HCD issued a letter determining that the Draft
Revised Housing Element will comply with State Housing Element Law once adopted,
submitted to, and reviewed by, HCD; and
WHEREAS, on September 22, 2022, Planning Commission conducted a duly
noticed public hearing to consider recommending to the City Council that the City Council
adopt the amended 6th Cycle Housing Element, and after considering oral and written
testimony, adopted Resolution Number 22-018 (PCS) recommending that the City
Council adopt the amended the 6th Cycle Housing Element; and
WHEREAS, on September 26, 2022, in accordance with Government Code
Section 65585(b), the City posted the final draft of th e amended 6th Cycle Housing
Element incorporating the Planning Commission’s recommendations for updated
implementation dates on the City’s website for public review, and emailed a link to all
individuals and organizations that previously requested notices relating to the City’s 6th
Cycle Housing Element; and
WHEREAS, on October 11, 2022, the City Council conducted a duly-noticed public
hearing to consider adopting the amended 6th Cycle Housing Element, and after
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considering oral and written testimony, adopted Resolution Number 11469 (CCS),
adopting an amended 6th Cycle Housing Element, which was certified by the State on
October 14, 2022; and
WHEREAS, between September 30, and October 13, 2022, the City received 15
preliminary applications for housing development projects pursuant to Government Code
Section 65941.1; and
WHEREAS, the applicants for the 15 housing development projects assert that the
projects are eligible for processing under the “builder’s remedy” provision of the Housing
Accountability Act (“HAA”), California Government Code section 65589.5(d), (the
“builder’s remedy applications”); and
WHEREAS, the builder’s remedy provision prohibits a local agency from
disapproving a housing development project, that provides at least 20 percent of total
units for very low, low-, or moderate-income households, or condition approval in a
manner that renders the housing development project infeasible for development for the
use of very low, low-, or moderate-income households unless the local agency is able to
make certain specific findings, including, but not limited to, the housing development
project is inconsistent with both the jurisdiction's zoning ordinance and general plan land
use designation as specified in any element of the general plan as it existed on the date
the application was deemed complete, and the jurisdiction has adopted a housing
element that is in substantial compliance with State Housing Element law; and
WHEREAS, 14 of the 15 builder’s remedy applications propose hou sing
development projects are inconsistent with the City’s LUCE and Zoning Ordinance, in
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part, because the housing development projects would far exceed height and floor area
ratio (“FAR”) maximums; and
WHEREAS, the Housing Element includes a variety of programs intended to
achieve goals and policies related to new housing production for all income categories
and the preservation of existing housing, ensuring there is equitable housing access to
all neighborhoods, housing for the homeless including housing assistance and supportive
services to low-income households, and eliminating housing discrimination; and
WHEREAS, the Housing Element sets forth a range of goals, policies and
programs, including, but not limited to, procedural changes related to streamlining the
review of housing projects, updating development standards and the Affordable Housing
Production Program (“AHPP”) to ensure housing projects are feasible, providing
opportunities for housing in areas of the City that do not currently permit housing,
incentivizing housing in areas of the City that have not historically supported housing
production, amending the City’s density bonus ordinance to ensure consistency with State
law and integration into the City’s land use system, and committing to the production of
affordable housing on City-owned/publicly owned land; and
WHEREAS, the Housing Element requires the City to implement certain programs
through amendments to the Land Use and Circulation Element of the General Plan, the
Bergamot Area Plan, the Downtown Community Plan, and the Zoning Ordinance in
phases, subject to specified deadlines; and
WHEREAS, on August 4, 2021, the Planning Commission adopted a Resolution
of Intention, 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
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Ordinance for, among other things, consistency with the goals, policies and programs of
the 6th Cycle Housing Element; and
WHEREAS, on February 1, 2023, 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 Zoning Ordinance, adopted Resolution Number
23-003 (PCS), recommending that the City Council amend the text of the Zoning
Ordinance; and
WHEREAS, on April 11, 2023, the City Council adopted Ordinance Number 2742
(CCS), amending the text of the Zoning Ordinance for consistency with the goals, policies,
and programs of the 6th Cycle Housing Element, including, but not limited to, housing
development incentives such as increased height and FAR maximums in the City’s
nonresidential districts and streamlined ministerial approval processes for housing
projects that are consistent with the City’s objective standards; and
WHEREAS, the City desires to provide an alternative means of providing housing
on the sites subject to the builder’s remedy applications by allowing applicants to be
eligible for the housing development incentives resulting from Housing Element
implementation, including increased height and FAR maximums in the City’s
nonresidential districts and streamlined ministerial approval process, subject to certain
additional incentives related to offsite affordable housing requirements under the AHPP,
eligibility for density bonuses for projects that provide affordable housing offsite in
accordance with the AHPP, including incentives and concessions, and waiver or
reduction of building standards, and parking maximums in the Downtown Co mmunity
Plan area; and
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WHEREAS, in addition to permitting application of the Housing Element
implementation, these additional incentives will provide an alternative pathway for
applicants to propose housing development projects on the sites s ubject to the builder’s
remedy applications that would be consistent with the City’s LUCE and Zoning Ordinance,
or any applicable Specific Plan, including increased height and FAR maximums for
housing development projects in the City’s nonresidential districts as set forth the Housing
Element; and
WHEREAS, on May 17, 2023, the Planning Commission adopted a Resolution of
Intention, Resolution Number 23-010 (PCS), declaring its intention to consider
recommending to the City Council that the City Council amend the text of the Zoning
Ordinance to provide the incentives for housing projects located on sites subject to a
preliminary application in accordance with Government Code section 65941.1 that was
filed between September 30, and October 13, 2022; and
WHEREAS, on June 21, 2023, the Planning Commission conducted a duly-noticed
public hearing to consider its recommendation to the City Council.
NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
Proposed amendments to the text of the Zoning Ordinance. Pursuant to
Santa Monica Municipal Code Section 9.46.060(B), the Planning Commission, after
considering oral and written testimony, does hereby recommend that City Council that the
City Council amend the text of the Zoning Ord inance to provide incentives for housing
projects located on certain sites subject to a preliminary application in accordance with
Government Code section 65941.1 that was filed between September 30, and October
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13, 2022, as set forth in Exhibit A, attached to this Resolution. In making this
recommendation, the Planning Commission hereby finds and declares that, for the
reasons articulated above, in the staff report dated June 21, 2023, and below:
1. The proposed amendments to the text of the Zoning
Ordinance are consistent with the General Plan and any applicable Specific
Plans in that the proposed amendments incentivize the production of
housing projects that are consistent with the General Plan and any
applicable Specific Plan on parcels that are subject to pending applications
for housing development projects that have asserted eligibility for
processing under the “Builder’s Remedy” provision of the Housing
Accountability Act (California Government Code section 65589.5(d)), that
were filed prior to certification of the City’s 6th Cycle (2021-2029) Housing
Element. These Builder’s Remedy applications do not comply with General
Plan or applicable Specific Plan standards for Floor Area Ratio or building
height. The new projects that may be submitted in accordance with the text
amendments would comply with General Plan and applicable Specific Plan
development standards for Floor Area Ratio and building height and provide
new deed-restricted affordable and market-rate housing units in Santa
Monica.
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 the
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amendments will incentivize the production of General Plan, Specific Plan,
and Zoning Ordinance compliant housing on parcels that are subject to
pending applications for housing development projects that have asserted
eligibility for processing under the “Builder’s Remedy” provision of the
Housing Accountability Act (California Government Code section
65589.5(d)), that were filed prior to certification of the City’s 6th Cycle (2021-
2029) Housing Element. These Builder’s Remedy applications d o not
comply with General Plan or Zoning Ordinance standards for Floor Area
Ratio or building height. The new projects that may be submitted in
accordance with the text amendments would comply with General Plan,
Specific Plan, and Zoning Ordinance development standards for Floor Area
Ratio and building height and therefore promote the orderly growth of the
City in a manner that protects public health, safety and general welfare in
comparison to projects that exceed General Plan, Specific Plan, and Zoning
Ordinance development parameters.
SECTION 2. The Director of Planning and Community Development 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:
DOUGLAS SLOAN
City Attorney
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Adopted this 21st day of June, 2023.
Chair, Planning Commission
I hereby certify that the foregoing Resolution of Intention was duly and regularly
introduced and approved at a meeting of the Planning Commission on the 21st day of
June, 2023 by the following vote:
Ayes: Commissioners Fonda-Bonardi, Landres, Tolkin, Vice Chair Raskin,
Chair Ries
Noes:
Abstain:
Absent: Commissioners Fresco, Lambert
Attest:
Director of Planning and Community Development
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EXHIBIT A
Proposed Amendments to the Text of the Zoning Ordinance
Santa Monica Municipal Code Section 9.31.198 shall be added to read as follows:
9.31.198 Multiple-Unit Dwelling Projects Located on Certain Sites Subject to
Applications Filed Prior to Implementation of 6th Cycle (2021-2029)
Housing Element
The purpose of this section is to incentivize the production of housing on parcels subject
to applications for housing development projects that have asserted eligibility for
processing under the “builder’s remedy” provision of the Housing Accountability Act
(“HAA”), California Government Code section 65589.5(d), that were filed prior to
implementation of the 6th Cycle (2021-2029) Housing Element. The provisions of this
section shall be interpreted to implement the express language of the Settlement
Agreement.
A. Applicability. Subject to the provisions of subsection G, below, this section shall
apply to new multiple-unit dwelling projects with applications filed between June 1, 2023
and two years after the effective date of this Section, on parcels that meet the following
requirements (“eligible projects”):
1. A preliminary application was filed for a housing development project
pursuant to Government Code Section 65941.1 between September 30, and October 13,
2022; and
2. The preliminary application asserted eligibility for processing under the “builder’s
remedy” provision of the Housing Accountability Act, Government Code Section
65859.5(d).
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B. Development Standards. All eligible projects shall be subject to the development
standards established for the underlying zone.
C. Affordable Housing Production Program Requirements. All eligible projects
shall be subject to the provisions of Chapter 9.64, Affordable Housing Production
Program, except that the applicant for any eligible project may elect to satisfy the off-site
provisions of Chapter 9.64, as follows:
1. Applicant may offsite any or all of the affordable housing units associated
with an eligible project at any commercially or residential zoned parcel in the City (outside
of the Pico Neighborhood Area) consistent with the underlying General Plan and zoning
regulations (with available State Density Bonus Law benefits available under AB 1763
[Chapter 666, Stats. 2019]) for 100 percent affordable projects) provided there are no
existing residential units on the target offsite property (the “Offsite Affordable Option.”)
For purposes herein, the Pico Neighborhood shall be defined in the Figure 9.40.020.A:
“Pico Neighborhood Area”.
2. If the applicant elects the Offsite Affordable Option for an eligible project in
accordance with this subsection C, the following terms and conditions apply to the eligible
project:
a. Affordable Housing Units. The market rate eligible project shall
provide fifteen (15) percent of the total number of market rate base density (i.e.,
pre density bonus) units as offsite affordable housing units (i.e., five [5] percent
Very Low, five (5) percent Low and five (5) percent Moderate). The affordable
housing units for the Offsite Option shall not count as the basis to award a market
rate density bonus for the off-site project. However, the offsite units may be used
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to qualify for density bonus benefits (e.g., density bonuses,
incentives/concessions, waivers of development standards and reduced parking)
for a one hundred percent affordable housing project at the offsite location(s).
Should the applicant elect to satisfy the affordable housing requirement onsite for
any of the eligible projects, it shall be fifteen (15) percent of the base density (i.e.,
pre-density bonus) project units.
b. State Density Bonus Benefits. If exercised, the Offsite Affordable
Option would enable the applicant to receive State Density Bonus Law benefits for
the eligible project (i.e., up to a fifty (50) percent market rate density bonus, three
(3) permitted incentives/concessions and additional waivers of development
standards) as if the affordable units were to be provided onsite.
c. Timing for Completion. The Offsite Affordable project must receive
a certificate of occupancy prior to issuance of a certificate of occupancy for the
related market rate development. However, nothing shall prevent the market rate
building from obtaining a building permit and commencing construction concurrent
with or prior to the corresponding offsite affordable project.
D. Parking. Notwithstanding the provisions of Section 9.28.060(A), eligible projects
located in the Downtown Community Plan Area shall be subject to the following maximum
parking requirements:
1. Guest = 1 space per 15 units
2. Studio, no bedrooms = 1 space per unit
3. 1 bedroom = 1 space per unit
4. 2 or more bedrooms = 1 space per unit
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E. Additional Requirements. Except as expressly provided in this Section, eligible
projects shall comply with the requirements set forth in Section 9.31.195, Multiple-Unit
Dwelling Projects.
F. Termination. This Section (with the exception of subsection D “Parking”) shall
terminate and be of no further force and effect upon issuance of administrative approvals
for 965 “additional units”. For purposes of this Section, “additional units” means the total
amount of units provided by one or more eligible projects, including market rate,
affordable, on-site and off-site units, that exceed the collective unit capacity allocated to
the properties associated with the eligible projects under the Suitable Sites Inventory for
the City’s 6th Cycle (2021-2029) Housing Element. This provision shall not impose any
limit on the number of units of the eligible projects (either individually or collectively) that
do not utilize the offsite affordable housing benefits contained in this Section 9.31.198. In
addition, subsection D “Parking” shall survive termination of this Section and continue to
apply to any eligible projects identified in the settlement agreement located within the
Downtown Community Plan area.
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City Council Meeting: July 18, 2023 Santa Monica, California
ORDINANCE NUMBER _________ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TO
AMEND THE TEXT OF THE CITY’S ZONING ORDINANCE TO PROVIDE
INCENTIVES FOR CERTAIN HOUSING PROJECTS THAT FILED AN APPLICATION
PRIOR TO IMPLEMENTATION OF THE CITY’S 6TH CYCLE (2021-2029) HOUSING
ELEMENT
WHEREAS, the Housing Element Law, California Government Code Sections
65580 et seq., requires the City to review and update the Housing Element of its General
Plan every eight years; and
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, 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
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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 7 years; and
WHEREAS, the City received a Regional Housing Needs Assessment (“RHNA”)
allocation for the 6th Cycle (2021-2029) Housing Element of approximately 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, in September 2020, the City commenced a public outreach process
for the 6th Cycle Housing Element, which consisted of creation of a dedicated website,
presenting informational webinars, seeking input through questionnaires and surveys,
forming two technical working groups, and conducting a series of study sessions with the
Planning Commission, Housing Commission, Rent Control Board, and the City Council;
and
WHEREAS, on or about May 24, 2021, City staff published a Draft 6th Cycle
Housing Element (“Draft Housing Element”); and
WHEREAS, on June 2 and 3, 2021, the Planning Commission conducted a public
hearing on the Draft Housing Element and made recommendations to the City Council;
and
WHEREAS, on June 15, 2021, the City Council conducted a public hearing to
discuss the Draft Housing Element and directed staff to transmit the Draft Housing
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Element to the California Department of Housing and Community Development (“HCD”)
with revisions; and
WHEREAS, on July 1, 2021, City staff transmitted the Draft Housing Element, as
revised by the City Council, to HCD for a 60-day review period; and
WHEREAS on August 4, 2021, in accordance with Santa Monica Municipal Code
Section 9.46.030(B), the Planning Commission adopted a Resolution of Intention,
Resolution Number 21-007 (PCS), declaring its intention to consider recommending to
the City Council that the City Council adopt amendments to the text of the Zoning
Ordinance for consistency with the Goals, Policies and Programs of the 6th Cycle
Housing Element, and minor changes, corrections and clarifications to the text of the
Zoning Ordinance related to parcel coverage limitations for existing structures in the City’s
R1 (Single-Unit Residential) Districts and standards for accessory structures for
consistency with Council direction to return with amendments to the City’s home-share
rules; and
WHEREAS, on August 30, 2021, in accordance with Government Code Section
65585, HCD issued a letter to report on its review of the Draft Housing Element; and
WHEREAS, HCD’s review concluded that the draft Housing Element addressed
many statutory requirements, but that revisions would be necessary to substantially
comply with State Housing Element Law; and
WHEREAS, in its review letter, HCD set forth recommended revisions to the Draft
Housing Element to, among other things, provide additional information and analysis of
the City’s: housing needs, resources, and constraints related to fair housing; population
and employment trends; household characteristics; Suitable Sites Inventory (“SSI”);
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zoning regulations for a variety of housing types; governmental and nongovernmental
constraints on housing; special housing needs; and “at risk” housing units; and
WHEREAS, HCD further recommended that the City make revisions to housing
programs set forth in the Draft Housing Element to: demonstrate adequate capacity for
the RHNA allocation; address, and where legally possible, remove, constraints to the
maintenance, improvement and development of housing; promote and affirmatively
further fair housing; and preserve assisted housing development for low-income
households; and
WHEREAS, on September 8, 2021, the Planning Commission held a discussion
to consider HCD’s review and recommendations and to discuss concepts that would
address those recommendations; and
WHEREAS, on September 20, 2021, the Planning Commission conducted a
discussion to review proposed revisions to the Draft Housing Element to address HCD’s
recommendations; and
WHEREAS, on September 24, 2021, Planning Commission conducted a duly
noticed public hearing, and after considering oral and written testimony, adopted a
Resolution of Recommendation, Resolution Number 21-011 (PCS), recommending to the
City Council that the City Council adopt the 6th Cycle Housing Element; and
WHEREAS, on October 12, 2021, the City Council conducted a duly noticed public
hearing to consider HCD’s comments and the recommendation of the Planning
Commission, and, after considering oral and written testimony, adopted Resolution
Number 11371 (CCS) adopting the 6th Cycle (2021-2029) Housing Element, which the
City transmitted to HCD for review and certification; and
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WHEREAS, on February 8, 2022, the City received a letter from HCD determining
that although the Adopted 6th Cycle Housing Element addressed “many statutory
requirements,” “revisions would be necessary to comply with State Housing Element
Law”; and
WHEREAS, the City immediately began efforts to address HCD’s letter, including
scheduling a teleconference with HCD staff on February 14, 2022 to determine the City’s
required next steps in order to achieve an HCD-compliant Housing Element and
conducting a Study Session with the Planning Commission on March 2, 2022; and
WHEREAS, after the February 14, 2022 teleconference, the City continued to meet
with HCD on a consistent basis in an effort to work toward addressing HCD’s concerns
to allow for the submission of a compliant Housing Element; and
WHEREAS, the City also initiated other efforts to bring the 6th Cycle Housing
Element into compliance, including an April 26, 2022 study session with Council, and
Study Sessions with the Planning Commission on May 11 and June 1, 2022; and
WHEREAS, in consideration of the comments received in the February 8, 2022
letter, consultations with HCD, and input received during study sessions with the City
Council and Planning Commission, City staff prepared draft redline revisions to the
Housing Element to primarily: 1) make technical revisions; 2) address affirmatively
furthering fair housing obligations; and 3) strengthen the City’s commitment to
development of affordable housing on City-owned sites; and
WHEREAS on June 15, 2022, the Planning Commission considered the draft
redline amendments to the 6th Cycle Housing Element in response to HCD’s comments,
that, among other things, made technical revisions, and proposed amendments to the
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element’s affirmatively furthering fair housing requirements and program related to City-
owned sites, made recommended revisions, and recommended that the City Council
direct staff to transmit the redline revisions to HCD for review; and
WHEREAS, on June 21, 2022, the City Council reviewed the draft revisions to the
6th Cycle Housing Element, made recommended revisions, and directed staff to transmit
to HCD for review and comment; and
WHEREAS, on July 8, 2022, the City submitted the draft revised Housing Element
to HCD for review and comment; and
WHEREAS, on September 6, 2022, HCD issued a letter determining that the Draft
Revised Housing Element will comply with State Housing Element Law once adopted,
submitted to, and reviewed by, HCD; and
WHEREAS, on September 22, 2022, Planning Commission conducted a duly
noticed public hearing to consider recommending to the City Council that the City Council
adopt the amended 6th Cycle Housing Element, and after considering oral and written
testimony, adopted Resolution Number 22-018 (PCS) recommending that the City
Council adopt the amended the 6th Cycle Housing Element; and
WHEREAS, on September 26, 2022, in accordance with Government Code
Section 65585(b), the City posted the final draft of the amended 6th Cycle Housing
Element incorporating the Planning Commission’s recommendations for updated
implementation dates on the City’s website for public review, and emailed a link to all
individuals and organizations that previously requested notices relating to the City’s 6th
Cycle Housing Element; and
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WHEREAS, on October 11, 2022, the City Council conducted a duly-noticed public
hearing to consider adopting the amended 6th Cycle Housing Element, and after
considering oral and written testimony, adopted Resolution Number 11469 (CCS),
adopting an amended 6th Cycle Housing Element, which was certified by the State on
October 14, 2022; and
WHEREAS, between September 30, and October 13, 2022, the City received 15
preliminary applications for housing development projects pursuant to Government Code
Section 65941.1; and
WHEREAS, the applicants for the 15 housing development projects assert that the
projects are eligible for processing under the “builder’s remedy” provision of the Housing
Accountability Act (“HAA”), California Government Code section 65589.5(d), (the
“builder’s remedy applications”); and
WHEREAS, the builder’s remedy provision prohibits a local agency from
disapproving a housing development project, that provides at least 20 percent of total
units for very low, low-, or moderate-income households, or condition approval in a
manner that renders the housing development project infeasible for development for the
use of very low, low-, or moderate-income households unless the local agency is able to
make certain specific findings, including, but not limited to, the housing development
project is inconsistent with both the jurisdiction's zoning ordinance and general plan land
use designation as specified in any element of the general plan as it existed on the date
the application was deemed complete, and the jurisdiction has adopted a housing
element that is in substantial compliance with State Housing Element law; and
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WHEREAS, 14 of the 15 builder’s remedy applications propose housing
development projects are inconsistent with the City’s LUCE and Zoning Ordinance, in
part, because the housing development projects would far exceed height and floor area
ratio (“FAR”) maximums; and
WHEREAS, the Housing Element includes a variety of programs intended to
achieve goals and policies related to new housing production for all income categories
and the preservation of existing housing, ensuring there is equitable housing access to
all neighborhoods, housing for the homeless including housing assistance and supportive
services to low-income households, and eliminating housing discrimination; and
WHEREAS, the Housing Element sets forth a range of goals, policies and
programs, including, but not limited to, procedural changes related to streamlining the
review of housing projects, updating development standards and the Affordable Housing
Production Program (“AHPP”) to ensure housing projects are feasible, providing
opportunities for housing in areas of the City that do not currently permit housing,
incentivizing housing in areas of the City that have not historically supported housing
production, amending the City’s density bonus ordinance to ensure consistency with State
law and integration into the City’s land use system, and committing to the production of
affordable housing on City-owned/publicly owned land; and
WHEREAS, the Housing Element requires the City to implement certain programs
through amendments to the Land Use and Circulation Element of the General Plan, the
Bergamot Area Plan, the Downtown Community Plan, and the Zoning Ordinance in
phases, subject to specified deadlines; and
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WHEREAS, on August 4, 2021, the Planning Commission adopted a Resolution
of Intention, 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, among other things, consistency with the goals, policies and programs of
the 6th Cycle Housing Element; and
WHEREAS, on February 1, 2023, 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 Zoning Ordinance, adopted Resolution Number
23-003 (PCS), recommending that the City Council amend the text of the Zoning
Ordinance; and
WHEREAS, on April 11, 2023, the City Council adopted Ordinance Number 2742
(CCS), amending the text of the Zoning Ordinance for consistency with the goals, policies,
and programs of the 6th Cycle Housing Element, including, but not limited to, housing
development incentives such as increased height and FAR maximums in the City’s
nonresidential districts and streamlined ministerial approval processes for housing
projects that are consistent with the City’s objective standards; and
WHEREAS, the City desires to provide an alternative means of providing housing
on the sites subject to the builder’s remedy applications by allowing applicants to be
eligible for the housing development incentives resulting from Housing Element
implementation, including increased height and FAR maximums in the City’s
nonresidential districts and streamlined ministerial approval process, subject to certain
additional incentives related to offsite affordable housing requirements under the AHPP,
eligibility for density bonuses for projects that provide affordable housing offsite in
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accordance with the AHPP, including incentives and concessions, and waiver or
reduction of building standards, and parking maximums in the Downtown Community
Plan area; and
WHEREAS, in addition to permitting application of the Housing Element
implementation, these additional incentives will provide an alternative pathway for
applicants to propose housing development projects on the sites subject to the builder’s
remedy applications that would be consistent with the City’s LUCE and Zoning Ordinance,
or any applicable Specific Plan, including increased height and FAR maximums for
housing development projects in the City’s nonresidential districts as set forth the Housing
Element; and
WHEREAS, on May 17, 2023, the Planning Commission adopted a Resolution of
Intention, Resolution Number 23-010 (PCS), declaring its intention to consider
recommending to the City Council that the City Council amend the text of the Zoning
Ordinance to provide the incentives for housing projects located on sites subject to a
preliminary application in accordance with Government Code section 65941.1 that was
filed between September 30, and October 13, 2022; and
WHEREAS, on June 21, 2023, the Planning Commission conducted a duly-noticed
public hearing to consider its recommendation to the City Council; and
WHEREAS, on June 21, 2023, 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 Zoning Ordinance, adopted Resolution Number 23-011
(PCS), recommending that the City Council amend the text of the Zoning Ordinance to
provide incentives for housing projects located on sites subject to a preliminary
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application in accordance with Government Code section 65941.1 that was filed between
September 30, and October 13, 2022 based on the following findings:
1. The proposed amendments to the text of the Zoning
Ordinance are consistent with the General Plan and any applicable Specific
Plans in that the proposed amendments incentivize the production of
housing projects that are consistent with the General Plan and any
applicable Specific Plan on parcels that are subject to pending applications
for housing development projects that have asserted eligibility for
processing under the “Builder’s Remedy” provision of the Housing
Accountability Act (California Government Code section 65589.5(d)), that
were filed prior to certification of the City’s 6th Cycle (2021-2029) Housing
Element. These Builder’s Remedy applications do not comply with General
Plan or applicable Specific Plan standards for Floor Area Ratio or building
height. The new projects that may be submitted in accordance with the text
amendments would comply with General Plan and applicable Specific Plan
development standards for Floor Area Ratio and building height and provide
new deed-restricted affordable and market-rate housing units in Santa
Monica.
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 the
amendments will incentivize the production of General Plan, Specific Plan,
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and Zoning Ordinance compliant housing on parcels that are subject to
pending applications for housing development projects that have asserted
eligibility for processing under the “Builder’s Remedy” provision of the
Housing Accountability Act (California Government Code section
65589.5(d)), that were filed prior to certification of the City’s 6th Cycle (2021-
2029) Housing Element. These Builder’s Remedy applications do not
comply with General Plan or Zoning Ordinance standards for Floor Area
Ratio or building height. The new projects that may be submitted in
accordance with the text amendments would comply with General Plan,
Specific Plan, and Zoning Ordinance development standards for Floor Area
Ratio and building height and therefore promote the orderly growth of the
City in a manner that protects public health, safety and general welfare in
comparison to projects that exceed General Plan, Specific Plan, and Zoning
Ordinance development parameters; and
WHEREAS, on October 12, 2021, the City Council certified the 6th Cycle Housing
Element Final Environmental Impact Report (SCH No. 20212269242021), and
subsequent to certification of the Housing Element EIR, the City revised the Housing
Element and prepared an addendum to the Housing Element EIR (“Housing Element
Addendum”); and
WHEREAS, although the certified Housing Element calls for, and the certified
Housing Element Suitable Sites Inventory (“SSI”) accommodates, 13,600 units, the
Housing Element Addendum “conservatively considers maximum theoretical buildout
with an additional 10-percent increase, for a total of 14,565 dwelling units”; and
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WHEREAS, therefore, the Housing Element Addendum provides a 965-unit buffer
to cover and analyze potential environmental effects for units proposed beyond those
accounted for in the certified Housing Element SSI; and
WHEREAS, the proposed amendments to the Zoning Ordinance will restrict the
density of the eligible projects (“Ordinance Projects”) (including the related offsite
affordable receiver sites) to no more than the unit capacity assumed in the SSI at the site
(the “SSI Credit”) plus any additional units beyond the SSI Credit so long as the additional
units collectively proposed for Ordinance Projects do not exceed the buffer of 965 units;
and
WHEREAS, as explained more fully in the staff report dated July 18, 2023
accompanying this Ordinance, since the proposed incentives for Ordinance Projects, with
the exception of the parking incentives for projects located within the Downtown, would
terminate upon issuance of Administrative Approval applications for a total of 965
additional units, the potential environmental impacts resulting from amendments to the
Zoning Ordinance have been adequately analyzed in the Housing Element EIR and
Addendum and do not trigger any of the conditions described in CEQA Guidelines Section
15162 that would require the preparation of a supplemental EIR or negative declaration
pursuant to CEQA Guidelines Section 15168(c); and
WHEREAS, on July 18, 2023, 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 as set forth below.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
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SECTION 1. Based upon the oral and written testimony presented to the City
Council at the public hearing on July 18, 2023, regarding the proposed changes to the
text of the Zoning Ordinance, the City Council hereby makes the following findings:
1. The amendments to the text of the Zoning Ordinance are
consistent with the General Plan and any applicable Specific Plans in that
the amendments incentivize the production of housing projects that are
consistent with the General Plan and any applicable Specific Plan on
parcels that are subject to pending applications for housing development
projects that have asserted eligibility for processing under the “Builder’s
Remedy” provision of the Housing Accountability Act (California
Government Code section 65589.5(d)), that were filed prior to certification
of the City’s 6th Cycle (2021-2029) Housing Element. These Builder’s
Remedy applications do not comply with General Plan or applicable Specific
Plan standards for Floor Area Ratio or building height. The new projects that
may be submitted in accordance with the text amendments would comply
with General Plan and applicable Specific Plan development standards for
Floor Area Ratio and building height and provide new deed-restricted
affordable and market-rate housing units in Santa Monica.
2. The 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 the amendments will incentivize
the production of General Plan, Specific Plan, and Zoning Ordinance
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compliant housing on parcels that are subject to pending applications for
housing development projects that have asserted eligibility for processing
under the “Builder’s Remedy” provision of the Housing Accountability Act
(California Government Code section 65589.5(d)), that were filed prior to
certification of the City’s 6th Cycle (2021-2029) Housing Element. These
Builder’s Remedy applications do not comply with General Plan or Zoning
Ordinance standards for Floor Area Ratio or building height. The new
projects that may be submitted in accordance with the text amendments
would comply with General Plan, Specific Plan, and Zoning Ordinance
development standards for Floor Area Ratio and building height and
therefore promote the orderly growth of the City in a manner that protects
public health, safety and general welfare in comparison to projects that
exceed General Plan, Specific Plan, and Zoning Ordinance development
parameters.
Section 2. Santa Monica Municipal Code Section 9.31.198 is hereby added to
read as follows:
9.31.198 Multiple-Unit Dwelling Projects Located on Certain Sites Subject to
Applications Filed Prior to Implementation of 6th Cycle (2021-2029)
Housing Element
The purpose of this section is to incentivize the production of housing on parcels subject
to applications for housing development projects that have asserted eligibility for
processing under the “builder’s remedy” provision of the Housing Accountability Act
(“HAA”), California Government Code section 65589.5(d), that were filed between
September 30, and October 13, 2022, prior to implementation of the 6th Cycle (2021-
2029) Housing Element.
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A. Applicability. Subject to the provisions of subsection G, below, this section shall
apply to new multiple-unit dwelling projects with applications filed between June 1, 2023
and two years after the effective date of this Section, on parcels that meet the following
requirements (“eligible projects”):
1. A preliminary application was filed for a housing development project
pursuant to Government Code Section 65941.1 between September 30, and October 13,
2022; and
2. The preliminary application asserted eligibility for processing under the
“builder’s remedy” provision of the Housing Accountability Act, Government Code Section
65859.5(d).
B. Development Standards. All eligible projects shall be subject to the development
standards established for the underlying zone.
C. Affordable Housing Production Program Requirements. All eligible projects
shall be subject to the provisions of Chapter 9.64, Affordable Housing Production
Program, except that the applicant for any eligible project may elect to satisfy the off-site
provisions of Chapter 9.64, as follows:
1. Applicant may offsite any or all of the affordable housing units associated
with an eligible project at any commercially or residential zoned parcel in the City (outside
of the Pico Neighborhood Area) consistent with the underlying General Plan and zoning
regulations (with available State Density Bonus Law benefits available under AB 1763
[Chapter 666, Stats. 2019]) for 100 percent affordable projects) provided there are no
existing residential units on the target offsite property (the “Offsite Affordable Option”).
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For purposes herein, the Pico Neighborhood shall be defined in the Figure 9.40.020.A:
“Pico Neighborhood Area”.
2. If the applicant elects the Offsite Affordable Option for an eligible project in
accordance with this subsection C, the following terms and conditions apply to the eligible
project:
a. Affordable Housing Units. The market rate eligible project shall
provide fifteen (15) percent of the total number of market rate base density (i.e.,
pre density bonus) units as offsite affordable housing units (i.e., five [5] percent
Very Low, five (5) percent Low and five (5) percent Moderate). The affordable
housing units for the Offsite Option shall not count as the basis to award a market
rate density bonus for the off-site project. However, the offsite units may be used
to qualify for density bonus benefits (e.g., density bonuses,
incentives/concessions, waivers of development standards and reduced parking)
for a one hundred percent affordable housing project at the offsite location(s).
Should the applicant elect to satisfy the affordable housing requirement onsite for
any of the eligible projects, it shall be fifteen (15) percent of the base density (i.e.,
pre-density bonus) project units.
b. State Density Bonus Benefits. If exercised, the Offsite Affordable
Option would enable the applicant to receive State Density Bonus Law benefits for
the eligible project (i.e., up to a fifty (50) percent market rate density bonus, three
(3) permitted incentives/concessions and additional waivers of development
standards) as if the affordable units were to be provided onsite.
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c. Timing for Completion. The Offsite Affordable project must receive
a certificate of occupancy prior to issuance of a certificate of occupancy for the
related market rate development. However, nothing shall prevent the market rate
building from obtaining a building permit and commencing construction concurrent
with or prior to the corresponding offsite affordable project.
D. Parking. Notwithstanding the provisions of Section 9.28.060(A), eligible projects
located in the Downtown Community Plan Area shall be subject to the following maximum
parking requirements:
1. Guest = 1 space per 15 units
2. Studio, no bedrooms = 1 space per unit
3. 1 bedroom = 1 space per unit
4. 2 or more bedrooms = 1 space per unit
E. Additional Requirements. Except as expressly provided in this Section, eligible
projects shall comply with the requirements set forth in Section 9.31.195, Multiple-Unit
Dwelling Projects.
F. Termination. This Section (with the exception of subsection D “Parking”) shall
terminate and be of no further force and effect upon issuance of administrative approvals
for 965 “additional units”. For purposes of this Section, “additional units” means the total
amount of units provided by one or more eligible projects, including market rate,
affordable, on-site and off-site units, that exceed the collective unit capacity allocated to
the properties associated with the eligible projects under the Suitable Sites Inventory for
the City’s 6th Cycle (2021-2029) Housing Element. This provision shall not impose any
limit on the number of units of the eligible projects (either individually or collectively) that
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do not utilize the offsite affordable housing benefits contained in this Section 9.31.198. In
addition, subsection D “Parking” shall survive termination of this Section and continue to
apply to any eligible projects identified in the settlement agreement located within the
Downtown Community Plan area.
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:
_______________________
DOUGLAS SLOAN
City Attorney
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