ITEM 8-B
City Council Meeting 10-20-92 Santa Monica, California
STAFF REPORT
TO: Mayor and City Council
FROM: City Attorney
SUBJECT: Ordinance Amending Municipal Code Sections 9.28.060
and 9.28.080 Regarding On Site Inclusionary Unit
Development Requirements and In Lieu Fees
At its June 9, 1992 meeting, the City Council directed the
City Attorney to draft an amendment to Ordinance 1615 which would
make an adjustment in the number of on site inclusionary housing
units required for five unit projects, so that only one on site
unit would be required. The ordinance is presented to the City
Council for first reading.
SECTION-BY-SECTION ANALYSIS
SECTION 1. Section 1 of the Ordinance amends Santa Monica
Municipal Code Section 9.28.060 which sets forth the number of
inclusionary housing units required when on site units are
provided. A chart is provided which indicates the number of
units required if 20 or fewer units are built. The only change
to the existing requirements occurs at five units. If five units
are built, one low income unit is required. Prior to this
amendment, two inclusionary units were required when five units
were built. For greater than 20 units, the number of
inclusionary units required equals 30 percent of the number of
units built, with 0.3 or more rounded up to the nearest whole
number. This represents no change from the existing
requirements.
SECTION 2. Section 2 of the Ordinance amends Municipal
Code Section 9.28.080 by adding a CPI adjustment to in lieu fees
for the time period between the date of adoption of the
Resolution establishing the inclusionary unit base price and the
date of payment. At its June 9, 1992 meeting, the City Council
adopted a Resolution establishing the inclusionary unit base
price at $51,000.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be introduced for first reading.
PREPARED BY: Joseph Lawrence, Acting City Attorney
Mary H. Strobel, Deputy City Attorney
ORDINANCE NUMBER ____
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING
SANTA MONICA MUNICIPAL CODE SECTIONS 9.28.060 AND
9.28.080 REGARDING ON SITE INCLUSIONARY
UNIT DEVELOPMENT REQUIREMENTS AND IN LIEU FEES
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN
AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 9.28.060 is
amended to read as follows:
SECTION 9.28.060. On Site Inclusionary Unit
Development Requirements.
(a) In determining the number of inclusionary
units required when on site units are provided, the
following chart shall be utilized.
Number of Low Moderate
Units Built Income Income
(excluding Units Units
density bonus) Required Required
2 1 0
3 1 0
4 1 0
5 1 0
6 1 1
7 1 1
8 2 1
9 2 1
10 2 1
11 2 2
12 2 2
13 2 2
14 2 2
15 3 2
16 3 2
17 3 2
18 3 3
19 3 3
20 3 3
For more than 20 units, the number of
inclusionary units required shall equal 30 percent
of the number of units built; any decimal fraction
of 0.3 or more rounded up to the nearest whole
number, and any decimal fraction of less than 0.3
rounded down to the nearest whole number.
(b) Inclusionary units shall, whenever
reasonably possible, be evenly distributed
throughout the project. The applicant may reduce
either the size or interior amenities of the
inclusionary units as long as there are not
significant identifiable differences between
inclusionary and market rate dwelling units visible
from the exterior of the dwelling units and the
size and design of the dwelling units are
reasonably consistent with the market rate units in
the project, provided that all dwelling units
conform to the requirements of the applicable
Building and Housing Codes. Inclusionary units
provided shall have at least the same number of
bedrooms as the average dwelling unit in the
project and if the floor area of the inclusionary
units is not the same as the floor area of the
market rate dwelling units at the project, each of
the inclusionary units shall satisfy the following
minimum total floor area, depending upon the number
of bedrooms provided:
0 Bedroom 500 Square Feet
1 Bedroom 600 Square Feet
2 Bedrooms 850 Square Feet
3 Bedrooms 1080 Square Feet
4 Bedrooms 1200 Square Feet
(c) All inclusionary units in a project or a
phase of a project shall be constructed
concurrently with the construction of market rate
dwelling units in the project or phase of that
project.
(d) On site inclusionary units must be rental
units in rental projects. In ownership projects,
inclusionary units may be either rental units, or
ownership units. Ownership units shall comply with
requirements concerning sales price, monthly
payment, limited equity, and resale restrictions
established by Resolution of the City Council to
ensure that subsequent purchasers are also
income-qualified households.
(e) If only one inclusionary unit is
required, such unit must be affordable to low
income households. The second inclusionary unit
provided may be affordable to moderate income
households, and alternating thereafter.
(f) Whenever inclusionary units are required
by this Chapter, the requirement may be satisfied
at the developer's discretion by providing 100% of
the units in the project affordable to moderate
income households, provided that all such units
meet the requirements of subsections (b) and (d) of
this Section, and Sections 9.28.100, 9.28.110, and
9.28.130.
SECTION 2. Santa Monica Municipal Code Section 9.28.080 is
amended to read as follows:
SECTION 9.28.080. In Lieu Fees for
Inclusionary Housing.
(a) Whenever this Chapter allows the payment
of an in lieu fee, the required inclusionary unit
number shall be determined as follows: Number of
units in the project, (excluding density bonus
units) x 30% = required inclusionary unit number.
The first inclusionary unit required shall be
affordable to low income income households, and the
second to moderate income households. Additional
inclusionary units shall alternate between low and
moderate income units. Any fraction of a unit
required shall not be considered either a low or
moderate income unit.
An in lieu fee may be paid only for low
income units required, and any fraction of a unit
required. All moderate income units required shall
be provided on site. The fee shall be determined
as follows:
(i) For any low income unit, the in
lieu fee payment required shall equal the
inclusionary unit base price, as established in
subdivision (c) of this section.
(ii) For any fraction of a unit
required, the in lieu fee shall equal the
inclusionary unit base price times the fraction of
a unit required.
(b) The following chart illustrates the in
lieu fee payable, the number of on site
inclusionary units required, and whether such units
must be affordable to low or moderate income
levels, using, for illustrative purposes only, an
inclusionary unit base price of $60,000:
No. Units Moderate
Built Exclud- Inclusionary
ing Density Units On
Bonus Site Fee
2 0 $ 36,000
3 0 54,000
4 0 72,000
5 0 90,000
6 0 108,000
7 1 66,000
8 1 84,000
9 1 102,000
10 1 120,000
(c) For purposes of this Section, the
inclusionary unit base price shall be established
and adjusted from time to time by Resolution of the
City Council based upon the cost to the City of
subsidizing the construction of a new residential
unit. Any fee required pursuant to this Section
shall be adjusted for inflation by the percentage
change in the Consumer Price Index ("CPI") between
the date of adoption of the Resolution establishing
the inclusionary unit base price through the month
in which payment is made. For purposes of this
Section CPI shall mean the index for Urban Wage
Earners and Clerical Workers for All Items for the
Los Angeles/Long Beach/Anaheim statistical area, as
published by the United States Department of Labor,
Bureau of Labor Statistics.
(d) Fifty percent (50%) of any fee required
pursuant to this Section shall be paid prior to the
issuance of a Building Permit for the project. The
remaining fifty percent (50%) shall be paid in full
before a Certificate of Occupancy is issued for any
unit in the housing project.
(e) Any fee required by this Section shall be
secured by execution of an irrevocable letter of
credit in favor of the City or other security
acceptable to the City for the total amount of the
obligation. The letter of credit or other
acceptable security shall be delivered to the City
prior to the issuance of a building permit for the
housing development. The letter of credit or other
security shall be released and returned to the
developer immediately upon payment in full of the
in lieu fee.
(f) Any payment made pursuant to this Section
shall be deposited in a Reserve Account separate
from the General Fund to be used only for
development of low income housing.
(g) If an lieu fee is paid pursuant to this
Section, such payment shall not be considered
provision of an inclusionary unit for purposes of
determining whether the housing development
qualifies for a density bonus pursuant to
Government Code Section 65915.
SECTION 3. Any provision of the Santa Monica Municipal
Code or appendices thereto inconsistent with the provisions of
this Ordinance, to the extent of such inconsistencies and no
further, are hereby repealed or modified to that extent necessary
to affect the provisions of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause,
or phrase of this Ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of any competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby
declares that it would have passed this Ordinance, and each and
every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether
any portion of the Ordinance would be subsequently declared
invalid or unconstitutional.
SECTION 5. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance. The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption. This Ordinance shall become
effective after 30 days from its adoption.
APPROVED AS TO FORM:
__________________________________
JOSEPH LAWRENCE
Acting City Attorney