ITEM 11-A

Council Mtg:  September 25, 1990       Santa Monica, California

TO:       Mayor and City Council

FROM:     City Staff

SUBJECT:  Recommendation to Direct City Attorney  to  Prepare  an
          Ordinance Approving Text Amendment 89-001 to Facilitate
          Housing Development in  the  Commercial  Areas  of  the
          City.    Applicant:   Community  Corporation  of  Santa
          Monica (CCSM)

SUMMARY

This report recommends modification  of  Municipal  Code  Section
9018.6  regarding  FAR  standards in the C3 District, and Section
9050.11, regarding Performance Standards for residential units in
commercial  zones.   The  proposed amendment to Section 9018.6(b)
would apply to the C3  zone  FAR  standard.   The  amendments  to
Section  9050.11  would  apply to commercial zones throughout the
City where a Performance Standards Permit (PSP) is  required  for
residential  units  to  be developed, including: C2 (Neighborhood
Commercial District); C3  (Downtown  Commercial  District);  C3-C
(Downtown  Overlay  District);  C4 (Highway Commercial District);
C6  (Boulevard   Commercial   District);   and   CP   (Commercial
Professional District. The proposed amendments have been reviewed
by the Planning Commission and recommended for approval.

PROPOSED PROJECT

Two of the  three  text  amendments  were  proposed  by  CCSM  in
response  to  design  issues  encountered  in  development of two
Single Room Occupancy (SRO) affordable housing projects on Second
Street  in the City's downtown.  One of the projects is currently
under environmental review; application for the second project is
pending.  Another text amendment is being proposed by staff as an
add-on to CCSM's amendment of the PSP section of the code and  is
supported  by  CCSM,  although it would have no effect on the two
Second Street projects.

The first of the  proposed  text  amendments  would  involve  the
modification  of  Section  9018.6(b)  (SMMC)  of  the C3 Property
Development Standards section.  The purpose of the proposed  Text
Amendment is to permit an FAR of 3.0 if at least 50% of the floor
area of the project is restricted to residential  uses,  and  not
less  than  49%  of  the  units  are  deed restricted for low and
moderate-income households.  The FAR otherwise permitted  in  the
C3  district is 2.0.  An FAR of 3.0 is allowed in the C3 district
by Section 9040.40 "upon approval by the City Council of specific
review criteria."  The amendment would provide such criteria.

The  second  text  amendment  to  Section   9050.11(a)   of   the
Performance  Standards  section  of  the  code is one proposed by
staff.  The amendment would delete  language  prohibiting  ground
floor  locations  for  residential units in commercial zones, and
substitute a requirement that any such units be located at  least
50 feet from the ground floor street front.

The third text amendment, which is proposed by CCSM, would delete
Section  9050.11(i)  of  the Performance Standards section of the
code.   The  amendment  would  delete   requirements   that   any
residential  units be located an average of 10 feet and a minimum
of 5 feet from any property line.  As originally  requested,  the
amendment   would   have   simply  deleted  the  5  foot  minimum
requirement and retain the 10 foot average requirement,  but  the
Planning  Commission  recommended  that  the  entire  section  be
deleted, since  the  Uniform  Building  Code  contains  standards
governing  provision  of light and air to residential units which
the  Commission  felt  were   adequate.    Staff   supports   the
Commission's action.

CEQA STATUS

The proposed Text Amendments are categorically  exempt  from  the
provisions  of  the California Environmental Quality Act pursuant
to Class 5(10) of the Santa Monica Guidelines for  Implementation
of CEQA.

ANALYSIS

The Zoning  Ordinance  contains  several  "bonus"  provisions  to
encourage  and  facilitate  housing development.  For example, in
the C3C zone, an FAR of 2.5 is permitted, but floor area  devoted
to  residential  uses  can be discounted at 50%.  In the C3 zone,
which one of the amendments  would  affect,  an  FAR  of  2.5  is
permitted  in  the  area  bounded  by 6th and 7th streets between
Santa Monica Boulevard and Broadway,  if  at  least  50%  of  the
project is restricted to residential uses.

The proposed amendment to the C3 FAR standard would allow an  FAR
of  3.0  if  at  least half the project is residential, and if at
least 49% of the units are deed restricted for low  and  moderate
income  households.  This increase in FAR appears to be a logical
progression from the 2.5 FAR allowance in part of the C3 zone for
simply  providing  a  project which is 50% residential.  The text
amendment is consistent  with  the  City's  goal  of  encouraging
housing   development,   and   particularly   affordable  housing
development in the commercial districts.

Two amendments are proposed to the Performance Standards  section
of  the  Code  concerning  development  of  residential  units in
commercial zones.  The first of  these  would  allow  residential
units  to  be located on the ground floor in these zones, as long
as the units were not closer than 50 feet  to  the  ground  floor
street  front  of  the  parcel.   The present prohibition against
ground floor units makes development of mixed use projects  which
are   predominantly   residential  problematic--particularly  for
larger sites.  For example,  several  prospective  developers  of
primarily  residential projects on a large site on Pico Boulevard
would have been forced to develop the ground floor entirely  with
commercial  uses,  when  their  preference would have been street
front commercial, with interior ground floor areas in residential
use.   The  proposed  amendment  would  preserve  the  commercial
integrity of the  streets-fronts  in  affected  districts,  while
facilitating residential development away from the street front.

The final proposed text amendment  regards  setback  requirements
for  residential  units  permitted  via  PSP.  Presently, Section
9050.11(i) requires that residential units be setback an  average
of 10 feet, but no less than 5 feet from all property lines.  The
amendment would delete these  requirements,  and  setbacks  would
simply have to conform to provisions of the Uniform Building Code
regarding provision of light and air to residential  units.   The
present  requirement  assumes  that  side  setbacks  are the most
appropriate  method  of  assuring  adequate  light  and  air  for
residential   units   in  commercial  zones.   However,  in  some
situations, this requirement is not ideal given the location  and
size  of  adjacent  structures.   For  example,  one  of the CCSM
projects would be located immediately adjacent to a City  parking
structure,  which  will  tower over the CCSM housing project.  In
such a situation, central court areas or light wells may be  more
appropriate  than  rigid  5-  and  10-foot  setbacks  around  the
perimeter of the project.  Thus,  the  proposed  amendment  would
allow  greater  flexibility  in  design solutions for residential
projects in commercial zones.  The Uniform Building Code requires
that  at  least  ten  percent  of the space in habitable rooms be
provided light and air via windows, light wells, and other means.

Planning Commission Action

On August 1, 1990 the  Planning  Commission  conducted  a  public
hearing  on  the  proposed  text  amendments.   All of the public
speakers  favored  the  amendments.   The   Planning   Commission
approved  the  proposed  amendments, making the one change to the
setback  requirements  discussed  above.    The   Commission   is
recommending that the Council approve the amendments.

Text Amendment Procedures

The  procedures  for  the  processing  of  Text  Amendments   are
specified   under  SMMC  Section  9120.4.   If,  from  the  facts
presented, the Council finds  that  "the  proposed  amendment  is
consistent  in  principle  with  the goals, objectives, policies,
land uses, and programs specified in the General Plan"  and  that
"the  public  health,  safety,  and  general  welfare require the
adoption of the proposed amendment,"  the Council may approve the
amendments.   The  City  Council  may,  by  Ordinance, effect the
amendment or any portion thereof.

CONCLUSION

The proposed Text Amendments are intended to  facilitate  housing
development  in  the  commercial  areas  of  the City, as well as
affordable housing, which is consistent with  the  goals  of  the
Housing Element.

BUDGET/FINANCIAL IMPACT

The recommendations of this staff report would have no budget  or
financial impacts.

RECOMMENDATION

It is recommended that the City Council  approve  the  amendments
with  the  following  findings,  and  direct the City Attorney to
prepare an ordinance amending the relevant sections of the Zoning
Ordinance:

       (a) The proposed amendments are  consistent  in  principle
       with  the  goals,  objectives,  policies  land  uses,  and
       programs specified in the adopted General Plan in that the
       City's  adopted  1987  version  of the Housing Element has
       numerous  policies  and   objectives   promoting   housing
       development,  with  a  particular  emphasis  on affordable
       housing.  For example, a  key  goal  is  to  "Promote  the
       construction  of  new  housing";  and one of the Element's
       policies is to "Encourage and create  incentives  for  the
       development    of    housing   in   commercial   zones..."
       Development of affordable housing is also of prime import,
       as  expressed by the committment to "Maintain and increase
       the   supply   of   housing   affordable   to   low-   and
       moderate-income persons."

       (b) The public health, safety, and general welfare require
       the  adoption  of  the  proposed  amendments,  in that the
       amendments will facilitate the development  of  affordable
       housing projects in the C3 zone as well as mixed-use proj-
       ects in the commercial zones of the City, which is antici-
       pated to result in more efficient use of resources through
       reduced reliance on  the  automobile  for  transportation,
       since  the  units will be located in commercial areas with
       ample public transportation, and within  walking  distance
       to shopping and employment opportunities.

Prepared by:  D. Kenyon Webster, Senior Planner
              David Martin, Associate Planner

Attachments:  Proposed amendements

NOTE:  The attachments are not available on PEN, but may  be
obtained from the City Clerk's office.