ITEM 8-D
City Council Meeting 11-17-92 Santa Monica, California
STAFF REPORT
TO: Mayor and City Council
FROM: City Attorney
SUBJECT: Ordinance Amending Santa Monica Municipal Code Sections
9.28.060 and 9.28.080 Regarding On Site Inclusionary
Unit Development Requirements and In Lieu Fees
At its meeting of November 11, 1992, the City Council
introduced for first reading an ordinance amending Santa Monica
Municipal Code Sections 9.28.060 and 9.28.080 relating to on site
inclusionary unit development requirements and in lieu fees.
The proposed ordinance is now presented to the City Council
for second reading and adoption.
RECOMMENDATION
The City Attorney recommends that the accompanying ordinance
amending Santa Monica Municipal Code Sections 9.28.060 and
9.28.080 be adopted.
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