ITEM 9-A

City Council Meeting 7-31-90             Santa Monica, California

                          STAFF REPORT

TO:         Mayor and City Council

FROM:       City Attorney

SUBJECT:    Resolutions for Regular Municipal Election to be
            Held on November 6, 1990

      This Staff  Report  transmits  to  the  City  Council  four
resolutions for adoption in connection with the Regular Municipal
Election to be held on November 6, 1990.

      At its meeting on July 25, 1990, the City Council  reviewed
and  approved  most  aspects  of  the  accompanying  resolutions.
Remaining for City Council review and action at this time are the
following issues:

      1.  Review and approval of ballot title and text of measure
to  amend the Rent Control Law.  The ballot title is contained in
Section 6 of the Resolution and the text is contained in  Exhibit
6 of the Resolution.

      2.  Review and approval of the  revised  ballot  title  and
text  of  the measure relating to inclusionary housing.  The City
Council on July 25, 1990, approved  this  measure  but  requested
more  specific language defining low and moderate income housing.
The revised ballot  title  is  contained  in  Section  7  of  the
Resolution  and the revised text is contained in Exhibit 7 of the
Resolution.

      3.  Review and approval of ballot title and text of measure
to  exempt  Sand and Sea Club property from the Rent Control Law.
The City Attorney was directed  to  prepare  this  measure.   The
ballot  title is contained in Section 8 of the Resolution and the
text is contained in Exhibit 8 of the Resolution.

      4.  Insert  the  names  of  Councilmembers  who  desire  to
prepare  written  arguments  for  or  against  the various ballot
measures being placed before the voters.

      Upon taking these actions, the City  Council  should  adopt
each  of  the  accompanying  resolutions.   The  purpose  of each
resolution is discussed below:

      1.   Resolution  Submitting  to  the  Voters  Eight  Ballot
Measures.

      This Resolution submits to the voters the following  ballot
measures:

            a.  An initiative  qualified  pursuant  to  Elections
Code  Section  4000 et seq. establishing a beach overlay district
in the area bounded by the Pacific Ocean on the west, by the City
boundary  on  the  north,  by  the centerline of Ocean Avenue and
Neilson Way on the east, and by the City boundary  on  the  south
and  prohibiting  hotel, motel and certain restaurant development
in that district.

            b.  An initiative  qualified  pursuant  to  Elections
Code  Section  4000  et  seq.  establishing a three year Citywide
moratorium on hotel development,  establishing  a  beach  overlay
district in the area bounded by the Pacific Ocean on the west, by
the City boundary on the north, by the centerline of Ocean Avenue
and  Neilson  Way  on  the  east, and by the City boundary on the
south (with certain exceptions), and restricting fifty percent of
the  transient  occupancy  tax generated from hotels in the beach
overlay district and at 415 Pacific Coast Highway for clean-up of
the Santa Monica Bay and for park improvements.

            c.  An initiative  qualified  pursuant  to  Elections
Code  Section  4080  et seq. and Government Code Section 34450 et
seq. amending the City Charter  to  permit  an  increase  in  the
maximum  allowable  rent  upon  a tenant's voluntary vacancy of a
rent controlled unit.

            d.  An initiative  qualified  pursuant  to  Elections
Code  Section  4080  et seq. and Government Code Section 34450 et
seq. amending the Charter of the City of Santa  Monica  providing
for an elected City Attorney.

            e.  A proposal submitted by the City Council pursuant
to Government Code Section 34459 amending the Charter of the City
of Santa Monica  providing  greater  tenant  protections  in  the
conversion  process  and  adding Section 2018 to the City Charter
prohibiting conversions not  processed  pursuant  to  the  Tenant
Ownership Rights provisions.

            f.  Proposal submitted by the City  Council  pursuant
to  Government  Code  Section 34459 to make revisions in the Rent
Control Law.

            g.  Proposal submitted by the City  Council  pursuant
to  Government  Code Section 34459 to require that 30% of all new
multifamily housing constructed in the City be affordable to  low
and moderate income persons and families.

            h.  Proposal submitted by the City  Council  pursuant
to Government Code Section 34459 amending the Charter of the City
of Santa Monica to exempt from  the  Rent  Control  Law  property
which  is part of the State Park System and owned by the State of
California on July 1, 1990.

      2.  Resolution Authorizing Members of the City  Council  to
Submit Arguments Concerning Various Propositions.

      The purpose of this Resolution is to give  members  of  the
City  Council  an  opportunity to submit arguments in favor of or
against the eight propositions to be submitted to the voters.  By
virtue  of  Elections  Code Section 5016, the City Council or its
members  authorized  by  the  City  Council  have   priority   in
submitting arguments in favor of or against a ballot measure.  If
the  City  Council  desires  to  permit  its  members  to  submit
arguments  in favor or or against any proposition, the members so
authorized should be inserted in Section 1.

      Elections Code Section 5014.5 authorizes the  submittal  of
rebuttal  arguments  if  the legislative body, not later than the
day on which it calls  an  election,  adopts  the  provisions  of
Elections  Code  Section  5014.5.   In  connection  with the 1981
General Municipal Election, the City Council  adopted  Resolution
Number  6180  (CCS)  adopting  the  provisions  of Elections Code
Section 5014.5.  The resolution provided in Section 2:  "That the
provisions of Section 1 shall apply at the next ensuing municipal
election  and  at  each  municipal  election  thereafter,  unless
repealed by the legislative body."  Thus, unless the City Council
repeals Resolution Number 6180 (CCS), the authors of the argument
in  favor  of  any  proposition  will  be  permitted to prepare a
rebuttal to the argument against such proposition and the authors
of  the  argument  against  any  proposition will be permitted to
prepare a rebuttal to the argument in favor of such proposition.

      3.  Resolution Requesting Consolidation of Election.

      This  Resolution  requests  the  Board  of  Supervisors  to
consolidate  the  Regular  Municipal  Election with the statewide
direct primary election.

      4.  Resolution Requesting Election Services from County.

      This  Resolution  authorizes  the  City  Clerk  to  request
various election services from the County to assist in such tasks
as distributing sample ballots.

                         RECOMMENDATION

      It is respectfully recommended that the City  Council  take
the following actions:

      1.  That the City Council adopt the  Resolution  submitting
to the voters various ballot measures.

      2.  That the City Council adopt the Resolution  authorizing
members  of  the  City Council to submit arguments concerning the
various propositions.

      3.  That the City Council adopt the  Resolution  requesting
consolidation of the election.

      4.  That the City Council adopt the  Resolution  requesting
election services from the County.

PREPARED BY:  Robert M. Myers, City Attorney


                     RESOLUTION NUMBER ____

                      (City Council Series)

             A RESOLUTION OF THE CITY COUNCIL OF THE
          CITY OF SANTA MONICA SUBMITTING TO THE VOTERS
         EIGHT BALLOT MEASURES AT THE REGULAR MUNICIPAL
        ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 1990

      WHEREAS,  on  July  10,  1990,  the  City  Council  adopted
Resolution  Number  8056 (CCS) calling for and giving notice of a
Regular Municipal Election on November 6, 1990; and

      WHEREAS, two initiatives  have  qualified  for  the  ballot
pursuant to Elections Code Section 4000 et seq.; and

      WHEREAS, two initiatives to amend  the  City  Charter  have
qualified  for the ballot pursuant to Elections Code Section 4080
et seq. and Government Code Section 34450 et seq.; and

      WHEREAS, the City Council desires to submit to the  voters,
pursuant   to   Government  Code  Section  34459,  four  proposed
amendments to the City Charter,

      NOW, THEREFORE, THE CITY  COUNCIL  OF  THE  CITY  OF  SANTA
MONICA DOES RESOLVE AS FOLLOWS:

      SECTION 1.  At the Regular Municipal  Election  called  for
November 6, 1990, the following proposition shall be submitted to
the qualified electors of the City of Santa Monica:

_________________________________________________________________

      PROPOSITION "  ."  Shall  a  Beach
      Overlay   District   in  the  area
      bounded by the  Pacific  Ocean  on
      the  west, by the City boundary on
      the north, by  the  centerline  of
      Ocean  Avenue  and  Neilson Way on
      the east, and by the City boundary
      on   the   south  and  prohibiting
      hotel,    motel    and     certain
      restaurant   development  in  that
      District be established?

_________________________________________________________________

The City Clerk shall cause the text of the proposition, which  is
contained  in  Exhibit  1  attached  hereto  and  incorporated by
reference, to be mailed to all qualified voters with  the  sample
ballot.   In  addition to other notices and publications required
by law, the City Clerk, not less than 40 days and not  more  than
60  days  before  the Regular Municipal Election, shall cause the
text of the proposition to be  published  once  in  the  official
newspaper   and  in  each  edition  thereof  during  the  day  of
publication.

      SECTION 2.  At the Regular Municipal  Election  called  for
November 6, 1990, the following proposition shall be submitted to
the qualified electors of the City of Santa Monica:

_________________________________________________________________

      PROPOSITION "  ."  Shall  a  three
      year  Citywide moratorium on hotel
      development,   a   Beach   Overlay
      District  in  the  area bounded by
      the Pacific Ocean on the west,  by
      the City boundary on the north, by
      the centerline of Ocean Avenue and
      Neilson  Way  on  the east, and by
      the City  boundary  on  the  south
      (with   certain  exceptions),  and
      restricting fifty percent  of  the
      transient  occupancy tax generated
      from hotels in the  Beach  Overlay
      District   at  415  Pacific  Coast
      Highway for clean-up of the  Santa
      Monica    Bay    and    for   park
      improvements be established?

_________________________________________________________________

The City Clerk shall cause the text of the proposition, which  is
contained  in  Exhibit  2  attached  hereto  and  incorporated by
reference, to be mailed to all qualified voters with  the  sample
ballot.   In  addition to other notices and publications required
by law, the City Clerk, not less than 40 days and not  more  than
60  days  before  the Regular Municipal Election, shall cause the
text of the proposition to be  published  once  in  the  official
newspaper   and  in  each  edition  thereof  during  the  day  of
publication.

      SECTION 3.  At the Regular Municipal  Election  called  for
November 6, 1990, the following proposition shall be submitted to
the qualified electors of the City of Santa Monica:

_________________________________________________________________

      PROPOSITION "  ."  Shall the  City
      Charter  be  amended  to permit an
      increase in the maximum  allowable
      rent  upon  a  tenant's  voluntary
      vacancy of a rent controlled unit?

_________________________________________________________________

The City Clerk shall cause the text of the proposition, which  is
contained  in  Exhibit  3  attached  hereto  and  incorporated by
reference, to be mailed to all qualified voters with  the  sample
ballot.   In  addition to other notices and publications required
by law, the City Clerk, not less than 40 days and not  more  than
60  days  before  the Regular Municipal Election, shall cause the
text of the proposition to be  published  once  in  the  official
newspaper   and  in  each  edition  thereof  during  the  day  of
publication.

      SECTION 4.  At the Regular Municipal  Election  called  for
November 6, 1990, the following proposition shall be submitted to
the qualified electors of the City of Santa Monica:

_________________________________________________________________

      PROPOSITION "  ."  Shall the  City
      Charter  be amended to provide for
      an elected City Attorney?

_________________________________________________________________

The City Clerk shall cause the text of the proposition, which  is
contained  in  Exhibit  4  attached  hereto  and  incorporated by
reference, to be mailed to all qualified voters with  the  sample
ballot.   In  addition to other notices and publications required
by law, the City Clerk, not less than 40 days and not  more  than
60  days  before  the Regular Municipal Election, shall cause the
text of the proposition to be  published  once  in  the  official
newspaper   and  in  each  edition  thereof  during  the  day  of
publication.

      SECTION 5.  At the Regular Municipal  Election  called  for
November 6, 1990, the following proposition shall be submitted to
the qualified electors of the City of Santa Monica:

_________________________________________________________________

      PROPOSITION  "   ."   Shall   City
      Charter Sections 2001, 2002, 2004,
      and 2009 be  amended  and  Section
      2018  be added to the City Charter
      to    provide    greater    tenant
      protections    in    the    Tenant
      Ownership Rights Charter Amendment
      (TORCA)  conversion process and to
      prohibit conversions not processed
      pursuant to the TORCA provisions?

_________________________________________________________________

The City Clerk shall cause the text of the proposition, which  is
contained  in  Exhibit  5  attached  hereto  and  incorporated by
reference, to be mailed to all qualified voters with  the  sample
ballot.   In  addition to other notices and publications required
by law, the City Clerk, not less than 40 days and not  more  than
60  days  before  the Regular Municipal Election, shall cause the
text of the proposition to be  published  once  in  the  official
newspaper   and  in  each  edition  thereof  during  the  day  of
publication.

      SECTION 6.  At the Regular Municipal  Election  called  for
November 6, 1990, the following proposition shall be submitted to
the qualified electors of the City of Santa Monica:

_________________________________________________________________

      PROPOSITION "  ."  Shall the  City
      Charter   be   amended  to  permit
      certain specified  rent  increases
      upon voluntary vacancy of low rent
      units, to permit certain specified
      rent   increases   upon  voluntary
      vacancy   upon    completion    of
      specified    items   of   property
      maintenance and to enable the Rent
      Control  Board  to  adopt  certain
      regulations     applicable      to
      mobilehome parks?

_________________________________________________________________

The City Clerk shall cause the text of the proposition, which  is
contained  in  Exhibit  6  attached  hereto  and  incorporated by
reference, to be mailed to all qualified voters with  the  sample
ballot.   In  addition to other notices and publications required
by law, the City Clerk, not less than 40 days and not  more  than
60  days  before  the Regular Municipal Election, shall cause the
text of the proposition to be  published  once  in  the  official
newspaper   and  in  each  edition  thereof  during  the  day  of
publication.

      SECTION 7.  At the Regular Municipal  Election  called  for
November 6, 1990, the following proposition shall be submitted to
the qualified electors of the City of Santa Monica:

_________________________________________________________________

      PROPOSITION "  ."   Shall  Section
      630  be  added to the City Charter
      to require that not less than  30%
      of   all   multifamily-residential
      housing newly constructed  in  the
      City  on  an annual basis would be
      permanently affordable to low  and
      moderate income households?

_________________________________________________________________

The City Clerk shall cause the text of the proposition, which  is
contained  in  Exhibit  7  attached  hereto  and  incorporated by
reference, to be mailed to all qualified voters with  the  sample
ballot.   In  addition to other notices and publications required
by law, the City Clerk, not less than 40 days and not  more  than
60  days  before  the Regular Municipal Election, shall cause the
text of the proposition to be  published  once  in  the  official
newspaper   and  in  each  edition  thereof  during  the  day  of
publication.

      SECTION 8.  At the Regular Municipal  Election  called  for
November 6, 1990, the following proposition shall be submitted to
the qualified electors of the City of Santa Monica:

_________________________________________________________________

      PROPOSITION "  ."  Shall the  City
      Charter  be amended to exempt from
      the rent control law any  property
      which  is  part  of the State Park
      System or sovereign tidelands  and
      owned  by  the State of California
      on July 1, 1990?

_________________________________________________________________

The City Clerk shall cause the text of the proposition, which  is
contained  in  Exhibit  8  attached  hereto  and  incorporated by
reference, to be mailed to all qualified voters with  the  sample
ballot.   In  addition to other notices and publications required
by law, the City Clerk, not less than 40 days and not  more  than
60  days  before  the Regular Municipal Election, shall cause the
text of the proposition to be  published  once  in  the  official
newspaper   and  in  each  edition  thereof  during  the  day  of
publication.

      SECTION 9.  The provisions of Resolution Number 8056  (CCS)
are  referred  to  for  more  particulars  concerning the Regular
Municipal Election to be held on November 6, 1990.

      SECTION 10.  The City Clerk 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:

____________________
ROBERT M. MYERS
City Attorney

NOTE:  Exhibits 1 through 4 are not available on PEN, but may  be
obtained from the City Clerk's office.


                            EXHIBIT 5

    PROPOSAL BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA
           TO BE SUBMITTED TO THE VOTERS OF A PROPOSED
             AMENDMENT TO THE CHARTER OF THE CITY OF
                    SANTA MONICA, CALIFORNIA

     Section 200l of the City Charter of the City of Santa Monica
is amended to read as follows:

                 SECTION   2001.    Definitions.    For
          purposes of this Article, the following words
          and phrases shall have the following meaning:

               (a)  Applicant.  The owner of a building
          for  which  a Tenant-Participating Conversion
          Application is filed.

               (b)   Cosigning  Tenant.    Any   tenant
          agreeing  to  the  conversion  by  his or her
          signature   on    the    Tenant-Participating
          Conversion  Application  who  has  personally
          occupied his or her unit continuously  for  a
          period  of  at  least six (6) months prior to
          the   date    he    or    she    signs    the
          Tenant-Participating Conversion Application.

               (c)  Disabled Person.  Any person who is
          receiving  benefits from a Federal, State, or
          local government, or from a private entity on
          account   of   a  permanent  disability  that
          prevents the person from engaging in regular,
          fulltime employment.

               (d)  Intending to Purchase Tenant.   Any
          tenant who has personally occupied his or her
          unit  in  the  building  continuously  for  a
          period of at least six (6) months immediately
          preceding the date the tenant signs a  Tenant
          Intent to Purchase.

               (e)  Limited Equity.   Programs  subject
          to  the  restrictions set forth in the Health
          and Safety Code  Section  33007.5  and  other
          programs which limit, to a similar extent and
          a similar length of time, the owner's  return
          at  resale.   For  purposes  of this Article,
          shared appreciation equity loans  or  similar
          loans  shall  not be construed to be forms of
          limited equity.

               (f)  Low and Moderate Income Households.
          Persons  and  families  whose income does not
          exceed eighty percent  (80%)  of  the  median
          gross income for Los Angeles County, adjusted
          for  family  size  as   determined   by   the
          Secretary  of  Housing  and Urban Development
          and  under  Section  8(f)(3)  of  the  United
          States Housing Act of 1937, as amended, or if
          programs under Section 8(f)  are  terminated,
          eighty  percent  (80%)  of  the  median gross
          income determined under the  method  used  by
          the Secretary prior to such termination.

               (g)  Middle Income Households.   Persons
          and  families  whose  income  exceeds  eighty
          percent (80%) but is less  than  one  hundred
          and twenty percent (120%) of the median gross
          income for Los Angeles County,  adjusted  for
          family size as determined by the Secretary of
          Housing and Urban Development  under  Section
          8(f)(3)  of  the United States Housing Act of
          1937,  as  amended,  or  if  programs   under
          Section 8(f) are terminated, more than eighty
          percent  (80%)  but  less  than  one  hundred
          twenty  percent  (120%)  of  the median gross
          income determined under the  method  used  by
          the Secretary prior to such termination.

               (h)  Owner.  The owner of  a  Qualifying
          Building.

               (i)  Participating Tenant.  Any  tenant,
          including  both  cosigning  and non-cosigning
          tenants, residing in the building at the date
          of  the  approval of the Tenant-Participating
          Conversion Application.

               (j)  Price Index.  The index  for  Urban
          Wage  Earners  and  Clerical  Workers, United
          States City  Average,  as  published  by  the
          United  States Bureau of Labor Statistics, or
          in the event such index is  discontinued  any
          comparable index.

               (k)  Tenant Intent to Purchase.  A  form
          prepared by the City to comply with State law
          and  which  shall  be  in  substantially  the
          following form and substance:

                   STATEMENT OF TENANT INTENT
                           TO PURCHASE

               This is a Tenant Intent to Purchase form
          that  is  used  to determine how many tenants
          want to purchase  the  apartment  units  that
          they currently are renting.

               Everything that the owner guarantees  or
          promises  you in exchange for your signature,
          including the sales price, is  set  forth  in
          writing     in    the    Tenant-Participating
          Conversion  Application.    These   promises,
          including  the  promise  to sell you the unit
          for the price stated on  the  form,  will  be
          made   conditions  of  the  approval  of  the
          conversion and the signed  form  will  become
          public record.

               Signing this form does not mean that you
          must  buy  the  unit.  It only means that you
          currently want and intend to buy the unit for
          the  sales price indicated on the form if you
          are able to obtain satisfactory financing and
          if the application is approved.

               IF,  AFTER   FINAL   APPROVAL   OF   THE
          CONVERSION,  THE  OWNER  REFUSES  TO SELL THE
          UNIT AS AGREED OR DEMANDS A HIGHER PRICE, YOU
          SHOULD   IMMEDIATELY  CONTACT  THE  APPROVING
          ATTORNEY AND THE CITY ATTORNEY.

               I/We, the undersigned, as  tenant(s)  of
          unit  _________ at ____________________ Santa
          Monica, California, at the time of filing  of
          the      Tenant-Participating      Conversion
          Application  of  such  property,  do  certify
          my/our  intent  to  purchase  my/our occupied
          Unit No. ____________

               I/We have seen and received  a  copy  of
          the      Tenant-Participating      Conversion
          Application which  lists  the  maximum  sales
          prices  for all tenant occupied units in this
          building  and  other   information   on   the
          Tenant-Participating  Conversion  Application
          to be filed with the City  of  Santa  Monica,
          and  this  list  indicates  that  the maximum
          sales  price  for  my/our  unit  is   to   be
          $_________

               I/We further understand that this Intent
          to  Purchase Form will be filed with the City
          for   the   purpose   of   establishing   the
          percentage of tenants that may be expected to
          purchase units pursuant to this Article.

               I/We declare, under penalty of  perjury,
          that  all of my/our statements above are true
          an correct.
          (Signed  and Separately Dated by Intending to
          Purchase Tenant(s) and Owner.)

               (l)  Qualifying Building.  Any  building
          used  for  residential rental purposes in the
          City  for  which  no  eviction  has  occurred
          pursuant  to  Government Code Section 7060 et
          seq. (the Ellis Act) within a five  (5)  year
          period  prior to the filing of an Application
          for Tenant-Participating Conversion  and  for
          which  no  eviction  has occurred pursuant to
          Section 1806(h) of this Charter (relating  to
          eviction  for  purposes of owner occupancy or
          occupancy by relative of the owner) within  a
          two (2) year period prior to the filing of an
          Application     for      Tenant-Participating
          Conversion.

               (m)    Senior   Citizen.    Any   person
          sixty-five (65) years of age or older.

               (n)   Tenant.   Any  person  who  is  an
          authorized   tenant   of   an   owner   of  a
          residential  rental  building  for  which   a
          Tenant-Participating  Conversion  Application
          is being processed.

               (o)  Tenant Ownership.  Ownership in the
          form   of   either   condominiums,  community
          apartments, stock  cooperatives,  cooperative
          associations,     limited     equity    stock
          cooperatives or any  other  means  authorized
          under State law.

               (p)   Tenant-Participating   Conversion.
          Any    conversion    to    tenant   ownership
          implemented pursuant to this Article.

               (q)  Tenant's Sales Price.  The  maximum
          price  for  each  unit  as  set  forth in the
          Tenant-Participating Conversion Application.

     Section 2002 of the City Charter of the City of Santa Monica
is amended to read as follows:

               SECTION 2002.   Application  for  Tenant
          Participating Conversion.  An application for
          a Tenant-Participating  Conversion  shall  be
          complete    if   it   meets   the   following
          requirements:

               (a) Identifies  the  building,  and  its
          owner,   which   is   the   subject   of  the
          application and contains a  declaration  that
          such building is a qualifying building.
               (b) Sets forth, for each tenant occupied
          unit, the following sales information:

                     (1) The maximum  sales  price  for
          each unit.

                     (2) The minimum down  payment  for
          each unit.

                     (3) If seller  financing  will  be
          offered,  the  minimum amount to be financed,
          the maximum rate of interest and the  minimum
          term of the loan offered by the seller.

               (c)  Sets  forth,  for  each  unit,  the
          following   common   areas,  maintenance  and
          budget information:

                     (1) The plan  for  the  assignment
          and use of parking spaces.

                     (2) The plan for the  use  of  all
          common area facilities.

                     (3) The occupancy  and  management
          plans and policies.

                     (4) A  list  of  all  repairs  and
          alterations,  if any, which will be performed
          before the close of the first escrow.

                     (5) The plan for allocating  costs
          and expenses for the building.

                     (6) A prepared monthly maintenance
          budget based upon actual maintenance expenses
          for at least the preceding two years  plus  a
          reserve   fund   which   states  the  monthly
          maintenance assessment for each unit.

                     (7) The procedures for  allocation
          and use of such reserve funds.

               (d)  Contains  a  declaration  with  the
          following information:

                     (1) That there has been a building
          inspection  report of the accessible portions
          of the entire  building,  including  but  not
          limited to, the roof, walls, floors, heating,
          air   conditioning,   plumbing,    electrical
          systems   or   components  of  a  similar  or
          comparable    nature,    and     recreational
          facilities  of  the  building  prepared  by a
          Building Inspection Service or similar agency
          within the preceding three (3) months.

                     (2) That, for each tenant occupied
          unit,  a  written statement setting forth any
          substantial    defects    or     malfunctions
          identified  in the building inspection report
          regarding the unit and the common  areas  has
          been  delivered  to  the  unit  or  a  tenant
          occupying the unit.

                     (3) That, for each tenant occupied
          unit,   a   copy  of  the  complete  building
          inspection report has been delivered  to  the
          unit or a tenant occupying the unit.

               (e)  Sets  forth  the  form  of   tenant
          ownership   for   which  the  application  is
          submitted.

               (f)  Is  signed  by  cosigning   tenants
          occupying  not  less than two-thirds (2/3) of
          all the residential units  in  the  building.
          If  there  is more than one tenant in a unit,
          the signature of only  one  tenant  shall  be
          required.

               For  purposes  of  this  subsection,  an
          owner  of  the  building  shall  be  deemed a
          cosigning  tenant  if:   (1)  the  owner  has
          continuously  resided  at the building as his
          or her principal place of  residence  for  at
          least  six months prior to the date the owner
          began to  solicit  tenant  approval  for  the
          TORCA conversion and (2) the building has not
          previously   been    withdrawn    from    the
          residential   rental   business  pursuant  to
          Government Code Section 7060 et seq.,  unless
          the  owners  were  tenants in the property at
          the time of the withdrawal.

               (g) Identifies the cosigning tenants and
          the  units occupied by such tenants and lists
          all other tenants known to the owner  in  the
          building and the units they occupy.

               (h)  Contains  a  declaration  that  the
          signature   of   each  cosigning  tenant  was
          obtained only after the delivery, in writing,
          to such tenant of the information required in
          Subsections (a) (b) (c) (d) and (e)  of  this
          Section.

               (i)  Contains  a  declaration  that  all
          lawful   notices   have  been  given  of  the
          application for conversion.

               (j)  Has  attached  to  the  application
          Statements  of  Tenant  Intent  to  Purchase,
          signed  by  Intending  to  Purchase   Tenants
          occupying  not  less that fifty percent (50%)
          of the total number of residential  units  in
          the  building.   If  there  is  more than one
          tenant in a unit, the signature of  only  one
          tenant shall be required.

               For  purposes  of  this  subsection,  an
          owner  of  the  building  shall  be deemed an
          intending to purchase  tenant  if:   (1)  the
          owner   has   continuously   resided  at  the
          building as his or  her  principal  place  of
          residence  for  at  least six months prior to
          the date the owner began  to  solicit  tenant
          approval for the TORCA conversion and (2) the
          building has not  previously  been  withdrawn
          from the residential rental business pursuant
          to Government  Code  Section  7060  et  seq.,
          unless   the   owners  were  tenants  in  the
          property at the time of the withdrawal.

               (k)   Contains  a  declaration  that  in
          obtaining the signatures of cosigning tenants
          and intending to purchase tenants, the  owner
          neither  offered  nor  agreed to pay money or
          other     financial     consideration      to
          participating  tenants  if  the tenants would
          release all rights that they had to  purchase
          a rental unit in the building.

               (l)  Contains  a  declaration  that   in
          obtaining   the   signatures   of  consigning
          tenants and intending  to  purchase  tenants,
          neither  the  owner  nor the owner's agent or
          representative coerced a tenant  to  sign  by
          threatening  that the owner, or any successor
          thereof, would cease operating  the  property
          as  residential  rental  property pursuant to
          Government Code Section 7060  et  seq.  ("the
          Ellis Act") if the proposed conversion of the
          building pursuant to  this  Article  did  not
          occur.

               (m) That, for each tenant occupied unit,
          a   Tenant   Intent   to  Purchase  has  been
          delivered to the unit or a  tenant  occupying
          the unit.

     Section 2004 of the City Charter of the City of Santa Monica
is amended to read as follows:

               SECTION 2004.   Approval  or  Denial  of
          Tenant  Participating Conversion Application.
          A Tenant-Participating Conversion Application
          shall  be  approved or denied within the time
          periods set forth in  Section  2003  of  this
          Article  and in accordance with the following
          standards:

               (a)  A  Tenant-Participating  Conversion
          Application,    along   with   any   required
          tentative subdivision map or tentative parcel
          map     shall     be     denied     if    the
          Tenant-Participating  Conversion  Application
          fails to meet any of the requirements of this
          Article,   was   the   result    of    fraud,
          misrepresentation,   or   threat  or  similar
          coercion, or  fails  to  meet  any  mandatory
          requirements  of  the  Subdivision Map Act of
          the State of California.

              (b)   A  Tenant-Participating  Conversion
          Application,    along   with   any   required
          tentative subdivision map or tentative parcel
          map,  shall  be  approved  if  it  meets  the
          requirements of this  Article  and  shall  be
          subject  to  the  following conditions and no
          others:

                     (1)  The owner must file with  the
          City   written   consent  to  each  condition
          imposed in connection with the approval of  a
          Tenant-Participating  Conversion Application.
          The written consent shall be filed  prior  to
          the    approval   of   any   required   final
          subdivision map or final parcel map, or if no
          such  map  is required, within six (6) months
          from   the   date   of   approval   of    the
          Tenant-Participating  Conversion Application.
          The filing  of  such  written  consent  shall
          constitute  an  agreement,  with  the City of
          Santa Monica and each  participating  tenant,
          binding  upon the owner and any successors in
          interest,  to  comply  with  each  and  every
          condition imposed in connection with approval
          of    a    Tenant-Participating    Conversion
          Application.   The City and any participating
          tenant  shall  have  the  right  to  specific
          enforcement  of this Agreement in addition to
          any other remedies provided by law.

                     (2)  The  owner  shall  offer  and
          continue  to  offer  the  exclusive  right to
          purchase each rental unit in the building  to
          the  participating  tenant  thereof  upon the
          terms set forth in the  application,  without
          change, for a period of not less than two (2)
          years from the date of final approval by  the
          California  Department  of Real Estate or the
          date  the  first  unit  in  the  building  is
          offered  for  sale,  if  no  approval  by the
          California  Department  of  Real  Estate   is
          required.   Unless a participating tenant has
          already  provided  the  owner  with   written
          acceptance  of  the  offer, the Tenant's Sale
          Price may be adjusted at the beginning of the
          second year according to any change reflected
          in  the  Price  Index  occurring  during  the
          preceding  year.  Upon the written acceptance
          of the offer by the participating  tenant  at
          any  time  within the two year period, escrow
          shall open within thirty (30) days  from  the
          written   acceptance   by  the  participating
          tenant.   Unless  otherwise  agreed  by   the
          parties,  the  period of the escrow shall not
          exceed sixty (60) days.

                     (3)  No participating tenant shall
          at   any  time  after  the  approval  of  the
          Tenant-Participating  Conversion  Application
          be  evicted  for  the purpose of occupancy by
          the owner, occupancy by any relative  of  the
          owner, or for demolition of the unit.  In the
          event  the  participating  tenant  does   not
          exercise  his or her right to purchase within
          the time period set forth  in  this  Article,
          the  owner  may transfer the unit without any
          price restriction to the participating tenant
          or  any  other person.  However, in the event
          such transfer is to someone  other  than  the
          participating  tenant,  the transfer shall be
          expressly made subject to the rights  of  the
          participating  tenant  to  continue to occupy
          the unit as provided for in this Article.

                     (4)  Each unit shall at all  times
          remain   subject   to   all   the  terms  and
          conditions of Article XVIII of this  Charter,
          except  Section  1803(t),  before, during and
          after  any  Tenant-Participating  Conversion.
          If  any unit is rented, the maximum allowable
          rent for each unit shall be no  greater  than
          the  maximum  allowable  rent  allowed  under
          Article XVIII of this Charter.

                     (5)  The building may be  required
          to  comply  only  with  the  applicable laws,
          including the building,  safety,  and  zoning
          codes,  which  were  in effect as of the date
          the  building  was  constructed.    No   new,
          additional  requirements  including,  but not
          limited to, parking, room size,  or  interior
          or  exterior improvements of any kind, may be
          imposed as a condition,  either  directly  or
          indirectly,   of   the   Tenant-Participating
          Conversion.  Notwithstanding the  above,  the
          City  may  impose reasonable health or safety
          requirements  consistent  with  this  Article
          upon   such   buildings  provided  that  such
          requirements uniformly apply to  all  similar
          multiresidential  structures  in  the City of
          Santa  Monica,  regardless  of  the  form  of
          ownership of the building.

                     (6)  Prior to the approval of  any
          required  subdivision map or final parcel map
          for the Tenant-Participating  Conversion,  or
          if  no  such  map  is  required, prior to the
          filing of the  written  consent  required  by
          Subdivision  (b)(1)  of  this  Section,  each
          participating tenant  shall  be  informed  in
          writing,  in  a form approved by the City, of
          his or her rights under this Article.

                       (7)    In   addition   to    the
          protections of Subdivisions (b)(3) and (b)(4)
          of this Section:
                             (A)    All  non-purchasing
          Participating Tenants who are senior citizens
          or   disabled  on  the  date  of  filing  the
          Tenant-Participating  Conversion  Application
          and  who personally occupied a rental unit in
          the qualifying building continuously  for  at
          least  six  (6)  months immediately preceding
          the     date     of     the     filing     of
          Tenant-Participating  Conversion  Application
          shall be given  the  nonassignable  right  to
          continue  to  personally reside in their unit
          as long as they choose to do so subject  only
          to  just  cause  evictions  provided that the
          eviction is not for the purpose of  occupancy
          by  the  owner,  occupancy by any relative of
          the owner, or for demolition of the unit.  In
          addition,  should  the maximum allowable rent
          provision of Article XVIII of this Charter no
          longer  apply,  the  rent  for each such unit
          shall  be  adjusted  annually  to  allow   an
          increase  of no more than the increase in the
          Price Index plus a reasonable, pro rata share
          of  capital  improvements  for  the buildings
          common   areas   or   agreed    to    capital
          improvements for the unit.  Within sixty (60)
          days    after    the    approval     of     a
          Tenant-Participating  Conversion Application,
          any senior citizen participating  tenant  who
          is   entitled  to  the  protections  of  this
          Subdivision may designate in writing the name
          of  one  person  who  is entitled to continue
          living in the  rental  unit  under  the  same
          terms  as  the  senior  citizen if the senior
          citizen pre-deceases him or her  and  if  the
          person  designated is residing in the unit at
          the time of the death of the senior  citizen.
          The  person  designated by the senior citizen
          must be a lawful occupant  of  the  unit,  at
          least  fifty-five  (55)  years  of age on the
          date     of     the     filing     of     the
          Tenant-Participating  Conversion Application,
          and must have  resided  in  the  unit  for  a
          continuous  period of six months prior to the
          filing of the Tenant-Participating Conversion
          Application.

                             (B)    All   other    non-
          purchasing    Participating    Tenants    who
          personally  occupied  a  rental  unit  in   a
          qualifying building continuously for at least
          six (6) months immediately preceding the date
          filing  the  Tenant-Participating  Conversion
          Application shall be given the  nonassignable
          right  to  continue  to  personally reside in
          their  unit  subject  only  to   just   cause
          eviction  for a period of five (5) years form
          the date the first unit is offered for  sale.
          No eviction shall be allowed during this time
          period except for  just  cause  provided  the
          eviction  is not for the purpose of occupancy
          by the owner, occupancy by  any  relative  of
          the  owner,  or  demolition  of the unit.  In
          addition, during this time period, should the
          maximum  allowable rent provisions of Article
          XVIII of this Charter no  longer  apply,  the
          rent for each unit shall be adjusted annually
          to allow an increase  of  no  more  than  the
          increase in the Price Index plus a reasonable
          pro rata share of  capital  improvements  for
          the  building's  common  areas  or  agreed to
          capital improvements for the unit.

               All rights under this  Subsection  shall
          expire    upon   the   termination   of   the
          landlord-tenant  relationship   between   the
          owner  and  the participating tenant entitled
          to the protection of this Subsection.

               For purposes of this  Subsection,  "Just
          cause"  means one of the reasons set forth in
          Subdivisions (a) through (g) of Section  1806
          of this Charter.

               This Subsection shall be interpreted  in
          accordance  with  Santa  Monica City Attorney
          Informal   Opinion   Number    84-57.     All
          amendments to this Subsection are declaratory
          of existing law.

                     (8)  Non-purchasing  Participating
          Tenants  shall  not  be  subject  to eviction
          pursuant to Government Code Section  7060  et
          seq. ("the Ellis Act").

                      (9)   The  owner  shall  pay  the
          Tenant-Participating  Conversion  Tax  in the
          manner  required  by  Section  2008  of  this
          Article.

                     (10)  No  owner  shall  close  the
          first  escrow  without completing the repairs
          and alterations agreed to pursuant to Section
          2002(c)(4)  of  this  Article.    The time to
          complete the repairs and alterations  may  be
          extended  for  a  period not to exceed ninety
          (90) days if the tenant purchasing the  first
          unit  agrees  to  the extension and the owner
          provides a bond approved  by  the  California
          Department   of  Real  Estate  in  an  amount
          sufficient to cover the cost of the work  yet
          to be completed.  The Building Officer of the
          City of Santa Monica may authorize a  further
          extension of time to complete the repairs and
          alterations upon finding that the  owner  has
          diligently  sought to make the repairs during
          the  initial  extension   period   and   that
          additional  time  is  reasonably  required to
          complete the work.

               In addition to any other remedy provided
          by  law,  for  each  consecutive calendar day
          that an owner fails to complete  the  repairs
          and alterations agreed to pursuant to Section
          2002(c)(4) in  a  timely  manner,  the  owner
          shall  be liable to the City in the amount of
          two hundred and fifty dollars  ($250.00)  for
          the   first   day  and  one  hundred  dollars
          ($100.00) per day for  each  day  thereafter.
          No  penalty  imposed  under  this  subsection
          shall exceed two (2) times the  cost  of  the
          repairs  or  alterations that were not timely
          completed by the owner, but in no event shall
          the penalty be less than $250.00.

                     (11)   Prior  to  the  filing  and
          approval    of    the    Tenant-Participating
          Conversion  Application   by   the   Planning
          Commission  or  City  Council  on  appeal, no
          participating tenant shall offer or agree  to
          release  all  rights  that  he  or she has to
          purchase a rental unit  in  the  building  in
          return for receiving money or other financial
          consideration from the owner.

                     (12)   The  requirements  of  this
          Section shall be set forth in the Declaration
          of Covenants, Conditions,  and  Restrictions,
          or    equivalent    document,    and    shall
          specifically name the  Participating  Tenants
          in  each  unit  entitled  to the benefits and
          protections of this Article.  The City  shall
          review  and  approve for compliance with this
          Article  the   Covenants,   Conditions,   and
          Restrictions,  or equivalent documents, prior
          to  the  approval  of  any   required   final
          subdivision map or final parcel map, or if no
          such map is required, prior to the filing  of
          the  written  consent required by Subdivision
          (b)(1)  of  this  Section.   To  the   extent
          applicable,  the requirements of this Article
          shall be made a part of the rental  agreement
          with the Participating Tenants.

                       (13)    The    Declaration    of
          Covenants,  Conditions,  and Restrictions, or
          equivalent   document,   shall   contain    a
          non-discrimination  clause  in  substantially
          the following form:   "No  unit  owner  shall
          execute  or  file  for  record any instrument
          which imposes a restriction  upon  the  sale,
          leasing  or  occupancy  of his or her unit on
          the basis  of  sex,  race,  color,  religion,
          ancestry,  national  origin,  age, pregnancy,
          marital status, family composition, handicap,
          Acquired     Immune    Deficiency    Syndrome
          (A.I.D.S.),  sexual   orientation,   or   the
          potential   or   actual  occupancy  of  minor
          children.    The   association   shall    not
          discriminate  on  the  basis  of  sex,  race,
          color, religion, ancestry,  national  origin,
          age,   pregnancy,   marital   status,  family
          composition,   handicap,   Acquired    Immune
          Deficiency    Syndrome   (A.I.D.S.),   sexual
          orientation,  or  the  potential  or   actual
          occupancy of minor children."

                       (14)    The   approval   of    a
          Tenant-Participating  Conversion  Application
          shall   expire   if   any   required    final
          subdivision  map  or  final parcel map is not
          approved within the time periods set forth in
          the  Subdivision  Map  Act  of  the  State of
          California, or if no such map is required, if
          the  written  consent required by Subdivision
          (b)(1) is not filed within the required  time
          period.

    Section 2009 of the City Charter of the City of Santa  Monica
is amended to read as follows:

                SECTION 2009.  Use of Tax.  All  monies
          derived    from    the   Tenant-Participating
          Conversion Tax shall be annually appropriated
          by  the  City  Council for only the following
          purposes:

                (a)  In accordance with Section 2000(d)
          of  this  Article, to assist Low and Moderate
          Income  Households  in   Tenant-Participating
          Conversions  to  purchase  or  improve  their
          units subject to an affordable repayment plan
          including  interest,  keyed  to future income
          increases  and  gains  on  resale.   Priority
          shall  be given to assisting Low and Moderate
          Income   Households   in    Limited    Equity
          Tenant-Participating   Conversions.   For  at
          least  the  first  two  (2)  years  from  the
          receipt   of   the   first   payment  of  the
          Tenant-Participating  Conversion  Tax   under
          this  Article,  a  substantial portion of the
          tax proceeds  shall  be  used  for  assisting
          Limited      Equity      Tenant-Participating
          Conversions.

                (b)  Up to one-sixth  of  the  revenues
          derived  from  Section  2008  may  be used to
          assist   Middle    Income    Households    in
          Tenant-Participating  Conversions to purchase
          or improve their units if the  City  Council,
          by  five  (5)  affirmative  votes, determines
          that the needs of  Low  and  Moderate  Income
          Households have been fully satisfied.

                (c)  To assist the City or a  nonprofit
          housing  development  corporation to purchase
          units,  for  which  a  Tenant   Participating
          Conversion Application has been approved, for
          lease or resale to Low, Moderate,  or  Middle
          Income  Households, provided that any unit so
          acquired shall be subject to  limited  equity
          resale provisions.

                (d)   To   pay   for   reasonable   and
          necessary costs of administration of programs
          required  to  meet  the  purposes   of   this
          Section.

      Section 2018 is added to the City Charter of the City of
Santa Monica to read as follows:

                SECTION 2018.  Prohibition of Non-TORCA
          Conversion.

                (a)    No    multifamily    residential
          conversion,  whether  by  condominium,  stock
          cooperative, community apartment, cooperative
          apartment,  or other means, shall be approved
          unless it is approved in accordance with this
          Article.

                (b)  The General Plan of the City shall
          at  all  times  contain  a provision that the
          Tenant  Ownership  Rights  Charter  Amendment
          shall  be  the  only  procedure  by  which  a
          multifamily  residential  conversion  may  be
          approved.


                            EXHIBIT 6

    PROPOSAL BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA
                  TO BE SUBMITTED TO THE VOTERS
             OF A PROPOSED AMENDMENT TO THE CHARTER
             OF THE CITY OF SANTA MONICA, CALIFORNIA

     Section 1816 of the City Charter of the City of Santa Monica
is amended to read as follows:

                 Section 1816.  Below       Threshold
           Rents.

                 (a)   Definitions.   The   following
           words  or  phrases as used in this Section
           shall have the following meanings.

                       (1)   Below  Threshold  Rents.
           Rents below the threshold levels set forth
           in subsection (a)(2) of this Section.

                       (2)   Threshold Rents.   Rents
           which  are  affordable  to households with
           incomes  at  or  below  70%  of  the   Los
           Angeles/Long  Beach  (Los  Angeles County)
           Statistical Area median  income,  adjusted
           by  family  size, as published by the U.S.
           Department   of    Housing    and    Urban
           Development  in  1990,  increased  by  the
           amount of any general adjustments  adopted
           by  the  Rent  Control  Board  in 1991 and
           subsequent  years.   The  threshold   rent
           levels  on  the  date  of adoption of this
           Section are set forth as follows:

                                       Threshold
           Unit Size                   Rents

           0 bedroom (single)           $477
           1 bedroom                    $511
           2 bedroom                    $613
           3 bedroom                    $723
           4 bedroom                    $766

                       (3)       Threshold       Rent
           Adjustment.   A  rent  adjustment  from  a
           below threshold rent to a threshold rent.

                       (4)   Voluntary Vacancy.   For
           purposes   of   this   Section,  voluntary
           vacancy shall mean a unit which  has  been
           vacated voluntarily by a tenant or vacated
           as a  result  of  a  lawful  eviction  for
           nonpayment  of  rent.  The occurrence of a
           vacancy in any of  the  following  manners
           shall   not   be  considered  a  voluntary
           vacancy:

                             (i)  A  vacancy  created
           when  an  owner  or  relative who obtained
           possession of  a  unit  pursuant  to  City
           Charter  Section  1806(h)  after April 10,
           1990, vacates that unit.

                             (ii)   A  vacancy   that
           occurs within two years of the filing of a
           Notice of Intent to  Withdraw  Residential
           Rental  Units  pursuant to Government Code
           Section 7060 et seq.

                             (iii)   A  vacancy  that
           occurs   following   the   withdrawal   of
           residential  rental  units   pursuant   to
           Government Code Section 7060 et seq.

                             (iv)  A vacancy which is
           the result of harassment by a landlord.

                 (b)  Rent Adjustment for  Controlled
           Units  with  Below  Threshold Rents.  Upon
           certification as  provided  in  subsection
           (c) of this Section, the maximum allowable
           rent on a controlled rental  unit  with  a
           below  threshold  rent shall  be permitted
           to  be  adjusted  to  the  threshold  rent
           level.

                 (c)   Conditions of  Threshold  Rent
           Adjustment.   A  threshold rent adjustment
           shall be authorized by  the  Rent  Control
           Board   only   after  a  landlord  obtains
           certification    that    the     following
           requirements have been met:

                       (1)   The unit  is  vacant  as
           the result of a voluntary vacancy.

                       (2)   The unit  complies  with
           all  applicable State and local health and
           safety laws.

                       (3)   The landlord has entered
           into an agreement with the new tenant on a
           form approved by the  Rent  Control  Board
           offering  the  unit  to  the  tenant for a
           period of at least three  years.   If  the
           tenant   vacates   the   unit   prior   to
           expiration  of  the  agreement,  the  rent
           shall revert to the maximum allowable rent
           which existed prior to the threshold  rent
           adjustment   with  any  allowable  general
           adjustments, unless  the  landlord  enters
           into   an  agreement  with  the  successor
           tenant for the remainder of the three-year
           lease period.

                 (d)   Subsequent  Rent  Adjustments.
           Subsequent  to an allowable threshold rent
           adjustment, a controlled rental unit shall
           be  eligible  for  general adjustments and
           individual adjustments authorized  by  the
           Rent Control Board.

                       (e)   Implementing     Regula-
           tions.  The Rent Control Board shall adopt
           regulations to implement a threshold  rent
           adjustment  procedure  within  ninety (90)
           days of adoption  of  this  Section.   The
           Rent  Control  Board may from time to time
           amend these regulations.

                 (f)   Minimum   Requirements.    The
           threshold   rent   levels   contained   in
           subsection   (a)(1)   of   this    Section
           represent  a  minimum  level  to which the
           Rent  Control  Board  must   allow   below
           threshold  rents to be adjusted.  The Rent
           Control  Board  is  not  constrained  from
           adopting a higher threshold rent level nor
           from imposing a condition  requiring  that
           up  to  thirty percent (30%)  of the units
           in  each  building  participating  in  the
           threshold   rent   program  be  rented  to
           households whose incomes are at  or  below
           eighty    percent   (80%)   of   the   Los
           Angeles/Long Beach  (Los  Angeles  County)
           Statistical  Area  median income, adjusted
           by family size, as published by  the  U.S.
           Department    of    Housing    and   Urban
           Development.

         Section 1817 is added to the City Charter of the City of
    Santa Monica as follows:

                 Section 1817.  Rent Adjustment  Upon
           Vacancy.

                 (a)       Allowable   Vacancy   Rent
           Adjustment.     Upon    certification   as
           provided  in  subsection   (c)   of   this
           Section,  a landlord shall be permitted to
           increase   the   then   existing   maximum
           allowable  rent  for  a  controlled rental
           unit by ten percent  (10%).   However,  no
           more  than  one  vacancy  rent  adjustment
           shall be permitted for a  particular  unit
           within a forty-eight (48) month period.

                 (b)      Voluntary   Vacancy.    For
           purposes   of   this   Section,  voluntary
           vacancy shall mean a unit which  has  been
           vacated voluntarily by a tenant or vacated
           as a  result  of  a  lawful  eviction  for
           nonpayment  of  rent.  The occurrence of a
           vacancy in any of  the  following  manners
           shall   not   be  considered  a  voluntary
           vacancy.

                       (1)  A vacancy created when an
           owner  or relative who obtained possession
           of a unit pursuant to City Charter Section
           1806(h)  after April 10, 1990 vacates that
           unit.

                       (2)   A  vacancy  that  occurs
           within two years of the filing of a Notice
           of Intent to Withdraw  Residential  Rental
           Units  pursuant to Government Code Section
           7060 et seq.

                       (3)   A  vacancy  that  occurs
           following  the  withdrawal  of residential
           rental units pursuant to  Government  Code
           Section 7060 et seq.

                       (4)  A vacancy  which  is  the
           result of harassment by a landlord.

                 (c)     Conditions of  Vacancy  Rent
           Adjustment.   A  vacancy  rent  adjustment
           shall be authorized by  the  Rent  Control
           Board   only   after  a  landlord  obtains
           certification    that    the     following
           requirements have been met:

                       (1)  The unit is vacant as the
           result of a voluntary vacancy.

                       (2)  The landlord has  painted
           the  unit and cleaned or replaced carpets,
           floor coverings and window coverings,  and
           all  appliances  provided  by the landlord
           are  in  working  order,  unless   it   is
           demonstrated  that  such  maintenance  has
           been performed within the previous six (6)
           months  or  it  is  demonstrated that such
           maintenance is unnecessary.  If window  or
           wall  coverings, carpet or floor coverings
           are more than seven (7)  years  old,  they
           shall    be    replaced   unless   it   is
           demonstrated  that  replacement   is   not
           necessary.

                 (d)     Relationship  Between   Rent
           Adjustment  on Vacancy and Below Threshold
           Rent Adjustment.  A vacant unit  which  is
           eligible  for  a threshold rent adjustment
           pursuant to Section  1816  shall  also  be
           eligible  for  a  vacancy  rent adjustment
           pursuant to this Section.

                 (e)      Implementing   Regulations.
           The   Rent   Control   Board  shall  adopt
           regulations to implement  a  vacancy  rent
           adjustment  procedure  within  ninety (90)
           days of adoption  of  this  Section.   The
           Rent  Control  Board may from time to time
           amend these regulations.

                 (f)     Minimum  Requirements.   The
           allowable  vacancy adjustment contained in
           subsection (a) of this Section  represents
           the  minimum  percentage  adjustment which
           the Rent Control Board must allow provided
           a  landlord meets the conditions set forth
           in subsection (c) of  this  Section.   The
           Rent Control Board is not constrained from
           adopting a higher vacancy rent  adjustment
           nor  from  imposing  differing maintenance
           conditions so long  as  the  Board  in  no
           event   requires   a   greater   level  of
           maintenance than is required in subsection
           (c)   as   a  condition  for  the  vacancy
           adjustment allowed by  subsection  (a)  of
           this Section.

     Section 1818 is added to the City Charter of the City of
Santa Monica to read as follows:

                 SECTION 1818.  Mobilehomes.   Within
           120  days  of the date of adoption of this
           Section, the Board shall conduct a hearing
           to determine if this Article as applicable
           to  mobilehomes   and   trailers   is   in
           conformity  with the decision of the Ninth
           Circuit Court of Appeals in Hall  v.  City
           of  Santa Barbara, 833 F.2d 1270 (9th Cir.
           1986), and other applicable decisions.  If
           the  Board in connection with this review,
           or any subsequent review, determines  that
           this Article as applied to mobilehomes and
           trailers is not in  conformity  with  such
           decisions,    the    Board   shall   adopt
           conforming   regulations.    In   adopting
           conforming  regulations,  the  Board shall
           consider  all  available  alternatives  to
           secure  compliance  with  court  decisions
           while best  protecting  the  interests  of
           tenants.    The  Board  is  empowered,  in
           furtherance  of  the  purposes   of   this
           Section,  to  regulate the resale price of
           mobilehomes and trailers as an alternative
           to  increasing  the  controlled  rent upon
           resale of a mobilehome or trailer.

     Section 1819 is added to the City Charter  of  the  City  of
Santa Monica to read as follows:

                 Section     1819.       Inconsistent
           Provisions.   Sections  1816  and 1817 are
           inconsistent with and are intended  as  an
           alternative  to the amendments proposed in
           the  Voluntary   Vacancy   Decontrol   and
           Recontrol   Charter   Amendment   of  1990
           initiative.  If the measure adopting  this
           Section    and   the   Voluntary   Vacancy
           Decontrol and Recontrol Charter  Amendment
           of  1990  initiative  are both passed by a
           majority vote  thereon,  and  the  measure
           adopting  this Section obtains more votes,
           the provisions of  the  Voluntary  Vacancy
           Decontrol  and Recontrol Charter Amendment
           of 1990 initiative shall be  repealed  and
           be of no further force or effect.


                            EXHIBIT 7

    PROPOSAL BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA
                  TO BE SUBMITTED TO THE VOTERS
             OF A PROPOSED AMENDMENT TO THE CHARTER
             OF THE CITY OF SANTA MONICA, CALIFORNIA

      Section 630 is added to the City Charter  of  the  City  of
Santa Monica to read as follows:

                 SECTION 630.  Inclusionary  Housing.
           The City Council by ordinance shall at all
           times require that not  less  than  thirty
           percent  (30%) of all multifamily-residen-
           tial housing newly constructed in the City
           on   an   annual   basis   is  permanently
           affordable to  and  occupied  by  low  and
           moderate  income households.  For purposes
           of this Section,  "low  income  household"
           means  a  household  with  an  income  not
           exceeding sixty percent (60%) of  the  Los
           Angeles  County median income, adjusted by
           family size, as  published  from  time  to
           time  by  the  United States Department of
           Housing   and   Urban   Development,   and
           "moderate   income   household"   means  a
           household with an income not exceeding one
           hundred  percent (100%) of the Los Angeles
           County median income, adjusted  by  family
           size,  as  published  from time to time by
           the United States  Department  of  Housing
           and    Urban    Development.    At   least
           two-thirds of the newly constructed  units
           required  to  be permanently affordable by
           this Section shall be  affordable  to  and
           occupied by low income households.


                            EXHIBIT 8

    PROPOSAL BY THE CITY COUNCIL OF THE CITY OF SANTA MONICA
                  TO BE SUBMITTED TO THE VOTERS
             OF A PROPOSED AMENDMENT TO THE CHARTER
             OF THE CITY OF SANTA MONICA, CALIFORNIA

      Section 1820 is added to the City Charter of  the  City  of
Santa Monica to read as follows:

                 SECTION 1820.  State Owned Property.
           This   Article  shall  not  apply  to  any
           property which is part of the  State  Park
           System or sovereign tidelands and owned by
           the State of California on July 1, 1990.


                     RESOLUTION NUMBER ____

                      (City Council Series)

             A RESOLUTION OF THE CITY COUNCIL OF THE
         CITY OF SANTA MONICA AUTHORIZING CERTAIN OF ITS
      MEMBERS TO FILE WRITTEN ARGUMENTS REGARDING MEASURES
       TO BE PLACED ON THE BALLOT AT THE GENERAL MUNICIPAL
              ELECTION ON TUESDAY, NOVEMBER 6, 1990

      WHEREAS, a General Municipal Election is to be held in  the
City of Santa Monica on Tuesday, November 6, 1990; and

      WHEREAS, at the General Municipal Election  there  will  be
submitted  to  the qualified electors of the City of Santa Monica
one general obligation bond issue; and

      WHEREAS, Elections Code Section 5010 et seq.  provides  for
procedures for arguments concerning city measures; and

      WHEREAS, Elections Code Section 5013  authorizes  the  City
Council,  or any member or members of the City Council authorized
by the City Council to file a written argument for or against any
City measure,

      NOW, THEREFORE, THE CITY  COUNCIL  OF  THE  CITY  OF  SANTA
MONICA DOES RESOLVE AS FOLLOWS:

      SECTION 1.   The  City  Council  authorizes  the  following
Councilmembers to file written arguments as follows:

                    Save Our Beach Initiative

      ARGUMENT IN FAVOR OF:  ______________________________
      ____________________________________________________.

      ARGUMENT AGAINST:  __________________________________
      ____________________________________________________.

      Santa Monicans for a Livable Environment Initiative

      ARGUMENT IN FAVOR OF:  ______________________________
      ____________________________________________________.

      ARGUMENT AGAINST:  __________________________________
      ____________________________________________________.

                  Vacancy Decontrol Initiative

      ARGUMENT IN FAVOR OF:  ______________________________
      ____________________________________________________.

      ARGUMENT AGAINST:  __________________________________
      ____________________________________________________.

                Elected City Attorney Initiative

      ARGUMENT IN FAVOR OF:  ______________________________
      ____________________________________________________.

      ARGUMENT AGAINST:  __________________________________
      ____________________________________________________.

                         TORCA Revisions

      ARGUMENT IN FAVOR OF:  ______________________________
      ____________________________________________________.

      ARGUMENT AGAINST:  __________________________________
      ____________________________________________________.

                     Rent Control Provisions

      ARGUMENT IN FAVOR OF:  ______________________________
      ____________________________________________________.

      ARGUMENT AGAINST:  __________________________________
      ____________________________________________________.

                      Inclusionary Housing

      ARGUMENT IN FAVOR OF:  ______________________________
      ____________________________________________________.

      ARGUMENT AGAINST:  __________________________________
      ____________________________________________________.

                   Sand and Sea Club Exemption

      ARGUMENT IN FAVOR OF:  ______________________________
      ____________________________________________________.

      ARGUMENT AGAINST:  __________________________________
      ____________________________________________________.

      SECTION 2.  Written arguments, not to exceed 300  words  in
length,  are  to  be  filed  with  the City Clerk by 5:00 p.m. on
August 14, 1990.   Arguments  so  submitted  may  be  changed  or
withdrawn  by  the  authors until and including the date fixed by
the City Clerk after  which  no  arguments  for  or  against  the
measure may be submitted to the City Clerk.

      SECTION 3.  The City Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.

APPROVED AS TO FORM:

____________________
ROBERT M. MYERS
City Attorney


                     RESOLUTION NUMBER ____

                      (City Council Series)

             A RESOLUTION OF THE CITY COUNCIL OF THE
    CITY OF SANTA MONICA REQUESTING THE BOARD OF SUPERVISORS
          OF THE COUNTY OF LOS ANGELES TO CONSOLIDATE A
         REGULAR MUNICIPAL ELECTION OF THE CITY OF SANTA
    MONICA TO BE HELD ON NOVEMBER 6, 1990, WITH THE STATEWIDE
            GENERAL ELECTION TO BE HELD ON SAID DATE
            PURSUANT TO ELECTIONS CODE SECTION 23302

      WHEREAS, the City Council of the City of Santa  Monica  has
called  a Regular Municipal Election in the City of Santa Monica,
in the Santa Monica-Malibu Unified School District,  and  in  the
Santa Monica Community College District to be held on November 6,
1990, for the purpose of  electing  three  members  of  the  City
Council,  four members of the Rent Control Board, four members of
the Board of Education of the Santa Monica-Malibu Unified  School
District,  and four members of the Board of Trustees of the Santa
Monica  Community  College  District,  and  for  the  purpose  of
submitting  certain  propositions  and  Charter amendments to the
voters of the City of Santa Monica; and

      WHEREAS,  it  is  desirable  that  the  Regular   Municipal
Election  be  consolidated with the Statewide General Election to
be held on the same date; that within the City of  Santa  Monica,
the  Santa  Monica-Malibu  Unified School District, and the Santa
Monica Community College District, the precincts, polling places,
and  election  officers  of the three elections be the same; that
the Registrar of  Voters  canvass  the  returns  of  the  Regular
Municipal  Election;  and that the Statewide General Election and
Regular Municipal Election be held in all respects  as  if  there
were only one election,

      NOW, THEREFORE, THE CITY  COUNCIL  OF  THE  CITY  OF  SANTA
MONICA DOES RESOLVE AS FOLLOWS:

      SECTION 1.  Pursuant to Elections Code Section  23300,  the
Board  of  Supervisors  of  the  County  of Los Angeles is hereby
requested to consent and agree to the consolidation of a  Regular
Municipal   Election  with  the  Statewide  General  Election  on
Tuesday, November 6, 1990, for the purposes of  the  election  of
three  members  of the City Council for terms ending in November,
1994, three members of the Rent Control Board for terms ending in
November,  1994,  one member of the Rent Control Board for a term
ending November, 1992, four members of the Board of Education  of
the  Santa Monica-Malibu Unified School District for terms ending
November, 1994, and four members of the Board of Trustees of  the
Santa   Monica   Community  College  District  for  terms  ending
November, 1994.

      SECTION 2.  The following  measures  shall  appear  on  the
ballot  and  be  submitted  to  the  voters  of the City of Santa
Monica:

_________________________________________________________________

      PROPOSITION "  ."  Shall  a  Beach
      Overlay   District   in  the  area
      bounded by the  Pacific  Ocean  on
      the  west, by the City boundary on
      the north, by  the  centerline  of
      Ocean  Avenue  and  Neilson Way on
      the east, and by the City boundary
      on   the   south  and  prohibiting
      hotel,    motel    and     certain
      restaurant   development  in  that
      District be established?

_________________________________________________________________

_________________________________________________________________

      PROPOSITION "  ."  Shall  a  three
      year  Citywide moratorium on hotel
      development,   a   Beach   Overlay
      District  in  the  area bounded by
      the Pacific Ocean on the west,  by
      the City boundary on the north, by
      the centerline of Ocean Avenue and
      Neilson  Way  on  the east, and by
      the City  boundary  on  the  south
      (with   certain  exceptions),  and
      restricting fifty percent  of  the
      transient  occupancy tax generated
      from hotels in the  Beach  Overlay
      District  at  at 415 Pacific Coast
      Highway for clean-up of the  Santa
      Monica    Bay    and    for   park
      improvements be established?

_________________________________________________________________

_________________________________________________________________

      PROPOSITION "  ."  Shall the  City
      Charter  be  amended  to permit an
      increase in the maximum  allowable
      rent  upon  a  tenant's  voluntary
      vacancy of a rent controlled unit?

_________________________________________________________________

_________________________________________________________________

      PROPOSITION "  ."  Shall the  City
      Charter  be amended to provide for
      an elected City Attorney?

_________________________________________________________________

_________________________________________________________________

      PROPOSITION  "   ."   Shall   City
      Charter Sections 2001, 2002, 2004,
      and 2009 be  amended  and  Section
      2018  be added to the City Charter
      to    provide    greater    tenant
      protections    in    the    Tenant
      Ownership Rights Charter Amendment
      (TORCA)  conversion process and to
      prohibit conversions not processed
      pursuant to the TORCA provisions?

_________________________________________________________________

_________________________________________________________________

      PROPOSITION "  ."  Shall the  City
      Charter   be   amended  to  permit
      certain specified  rent  increases
      upon voluntary vacancy of low rent
      units, to permit certain specified
      rent   increases   upon  voluntary
      vacancy   upon    completion    of
      specified    items   of   property
      maintenance and to enable the Rent
      Control  Board  to  adopt  certain
      regulations     applicable      to
      mobilehome parks?

_________________________________________________________________

_________________________________________________________________

      PROPOSITION "  ."   Shall  Section
      630  be  added to the City Charter
      to require that not less than  30%
      of   all   multifamily-residential
      housing newly constructed  in  the
      City  on  an annual basis would be
      permanently affordable to low  and
      moderate income households?

_________________________________________________________________

_________________________________________________________________

      PROPOSITION "  ."  Shall the  City
      Charter  be amended to exempt from
      the rent control law any  property
      which  is  part  of the State Park
      System or sovereign tidelands  and
      owned  by  the State of California
      on July 1, 1990?

_________________________________________________________________

      SECTION 3.  The Registrar of Voters is hereby authorized to
canvass the returns of the Regular Municipal Election which it is
hereby  requested  to  consolidate  with  the  Statewide  General
Election  and  said  election shall be held in all respects as if
there were only one election, and only one form of  ballot  shall
be used.

      SECTION 4.  The Board of Supervisors of the County  of  Los
Angeles   is  hereby  requested  to  issue  instructions  to  the
Registrar of Voters to take any and all steps necessary  for  the
holding of the consolidated election.

      SECTION 5.   The  City  of  Santa  Monica  recognizes  that
additional  costs  shall be incurred by the County of Los Angeles
by reason of this  consolidation  and  agrees  to  reimburse  the
County of Los Angeles for any such costs.

      SECTION 6.  The City Clerk is directed to transmit and file
a certified copy of this Resolution with the Board of Supervisors
of the County of Los Angeles and to the Registrar of Voters.

      SECTION 7.  The City Clerk 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:

____________________
ROBERT M. MYERS
City Attorney


                     RESOLUTION NUMBER ____

                      (City Council Series)

             A RESOLUTION OF THE CITY COUNCIL OF THE
    CITY OF SANTA MONICA REQUESTING THE BOARD OF SUPERVISORS
             OF THE COUNTY OF LOS ANGELES TO RENDER
         SPECIFIED SERVICES TO THE CITY OF SANTA MONICA
     RELATING TO THE CONDUCT OF A REGULAR MUNICIPAL ELECTION
             TO BE HELD ON TUESDAY, NOVEMBER 6, 1990

      WHEREAS, a Regular Municipal Election is to be held in  the
City of Santa Monica on Tuesday, November 6, 1990; and

      WHEREAS, in the course of conduct of the Regular  Municipal
Election  and  in  relation  thereto it will be necessary to mail
sample ballots and polling place information  to  the  registered
voters  of  the City of Santa Monica and the registered voters in
the Santa Monica-Malibu Unified School District and Santa  Monica
Community  College  District  lying  outside  the  City  of Santa
Monica; and

      WHEREAS, it will facilitate the mailing of  sample  ballots
if the Registrar of Voters of the County of Los Angeles will make
available to the City of Santa Monica the computer record of  the
names  and  addresses  of all eligible registered voters in order
that labels may be printed for attaching  to  self-mailer  sample
ballot pamphlets; and

      WHEREAS, the City of Santa Monica desires the Registrar  of
Voters  to  furnish  such  other  election  assistance  as may be
authorized by state law; and

      WHEREAS, all necessary expense in performing these services
shall be paid by the City of Santa Monica,

      NOW, THEREFORE, THE CITY  COUNCIL  OF  THE  CITY  OF  SANTA
MONICA DOES RESOLVE AS FOLLOWS:

      SECTION 1.  Pursuant to Elections Code Section  22003,  the
City Council requests that the Board of Supervisors of the County
of Los Angeles permit the Registrar  of  Voters  to  provide  the
following services to the City to the extent determined necessary
by the City Clerk:  (1)  prepare and furnish to the City of Santa
Monica  for  use in conducting its Regular Municipal Election the
computer record of the names and addresses of eligible registered
voters in the City of Santa Monica and in the Santa Monica-Malibu
Unified  School  District  and  Santa  Monica  Community  College
District lying outside the City of Santa Monica in order that the
City  of  Santa  Monica  may  print  labels  to  be  attached  to
self-mailer  sample ballot pamphlets; (2)  furnish to the City of
Santa Monica printed indices of the voters  to  be  used  by  the
precinct  board  at  the polling place; (3) make available to the
City of Santa Monica additional election equipment and assistance
according  to  state  law;  and (4) such other services as may be
provided  and  deemed  necessary  to  reduce  the   expense   and
administrative burden of the election.

      SECTION 2.  The City of Santa Monica  shall  reimburse  the
County  of  Los  Angeles  for services performed when the work is
completed and upon presentation to the City of Santa Monica of  a
properly approved bill.

      SECTION 3.  The City Clerk is directed to  forward  without
delay  to  the  Board of Supervisors of the County of Los Angeles
and  to  the  Registrar  of  Voters  a  certified  copy  of  this
Resolution.

      SECTION 4.  The City Clerk 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:

____________________
ROBERT M. MYERS
City Attorney