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R-9295 . . f \atty\mum\law\barry\aflhse res 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 1 . . 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, 2 - . 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 3 - . Adopted and approved thIs 21st of July, 1998 4r~ 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 ~~ :'~~ \.. Mana M Stewart, City Clerk