R-9295
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CIty Counell Meetmg 7-21-98
Santa Monica, California
RESOLUTION NUMBER 9295 (CCS)
(City CounCil Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
ESTABLISHING AFFORDABLE HOUSING UNIT BASE FEES
FOR NEW MARKET RATE APARTMENT AND
CONDOMINIUM DEVELOPMENT
WHEREAS, the City Counell of Santa Monica adopted Ordmance Number 1918 (CCS)
on July 21, 1998 -- the City's Affordable Housing Production Program, and
WHEREAS, the Affordable Housing Production Program requires developers of market-
rate multlfannly housmg to aSSIst m the producuon of affordable housing through the payment of
an affordable hOUSIng development fee, development of on-site affordable units or through other
specIfied options, and
WHEREAS, Santa Monica Mumclpal Code Section 956 070(b) of the Affordable
Housmg Production Program proVIdes for the establishment of an affordable housmg unit base fee
by Resolution of the City Councll, and
WHEREAS, Santa Monica Municipal Code Section 956 070(c) provides that the
affordable housing unit base fee shall reflect, among other factors, the relationship between new
market rate multi-family development and the need for affordable housing and the impact that the
fee will have on the finanCIal return of multIfamily project applicants, and
WHEREAS, Hanulton, RabmovItz & Alschuler, Ine ("HR&A") on behalf of the City has
prepared an analysIs of the relatIonship between new market rate apartment and condomiruum
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development in the CIty and the need for affordable housing created by tlus new development
("Nexus Study") The Nexus Study focuses on the relationship between the demand for goods
and services created by households who occupy new market rate multi-family development in the
City, the number of low-wage workers m pubhc agencIes and busmesses needed to satisfy this
demand, and the costs ofproducmg the affordable housing needed by these workers The Nexus
Study demonstrates the fee range per square foot whIch could be imposed on new market rate
multi-fanuly development to help finance the development of affordable housing needed to meet
the demand created by market rate development The Nexus Study concludes that the average fee
which can reasonably be charged to developers of new market rate apartments is $6 14 per square
foot of floor area and the average fee which can reasonably be charged to developers of new
market rate condOlruruums is $7 13 per square foot of floor area, and
WHEREAS, Santa Moruca Mumclpal Code Section 9 04 02 030315 establishes the
defirution of floor area, and
WHEREAS, HR&A also prepared an analYSIS of the Impact that the fee Wlll have on the
finanCial return of multlfanuly project apphcants for purposes of assessmg at what amount the fee
would become a <<governmental constramt" wlthm the mearung of State Housmg Element Law
("Constraint Analysis"), and
WHEREAS, HR&A concluded that a fee of $6 14 per square foot of floor area Imposed
on new market rate apartments and a fee of$7 13 per square foot offloor area imposed on new
market rate condomiruums would not constitute a governmental constraint, and,
WHEREAS, the City Councd has reVlewed the Nexus Study and the Constramt AnalYSIS,
and conducted a duly noticed pubhc hearing, pnor to adoptmg this Resolution,
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS
SECTION 1 The affordable housmg unit base fee for new market rate apartments
establIshed pursuant to Section 9 56 070 IS $6 14 per square foot offIoor area
SECTION 2 The affordable housmg unit base fee for new market rate condolTllruums
establIshed pursuant to SectIon 956070 is $7 13 per square foot offIoor area
SECTION 3 The Cny Clerk shall certify to the adoption ofthts ResolutIon, and the same
shall be In full force and effect sixty (60) days from the date of adoption of this Resolution
APPROVED AS TO FORM
1J Ad, A 4.. . k ! -
~~;;;SMOUT~
City Attorney
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Adopted and approved thIs 21st of July, 1998
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Robert Holbrook, Mayor
I, Mana M Stewart, City Clerk of the City of Santa Monrca, do hereby certIfy that
the foregoing Resolution 9295 (CCS) was duly adopted at a meetmg of the Santa
MOOlca City CouncIl held on the 21st of July, 1998 by the followmg vote.
Ayes
Councllmembers
Ebner, Greenberg, Holbrook, Rosenstem
Noes
Councllmembers
Femsteln, Genser, O'Connor
Abstain Councllmembers
Absent Councllmembers
ATTEST
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Mana M Stewart, City Clerk