City Council Meeting:  January 23, 1996   Santa Monica, CA

TO:       Mayor and Councilmembers

FROM:     Councilmember Holbrook 

SUBJECT:  In Lieu Fees for Offsite Affordable Housing Units

Request to discuss directing staff to amend the Proposition R
implementing ordinance to allow in lieu fees for offsite
affordable housing units.

As you are aware, Proposition R was passed by Santa Monica voters
in the Fall of 1990; and, an interim implementing ordinance was
passed by the City Council in 1991.  In 1992, the interim
ordinance was made permanent.

Proposition R requires that at least 30% of new multiple family
housing be affordable.  There are a number of ways that this goal
can be reached.  In nearly every instance, the City Council's
ordinance requires that 30% of the affordable housing be on the
same site as the market rate housing.  If a person wants to build
a two-unit building, then one of the units must be affordable.  
To date, almost no affordable units have been built on properties
covered by this ordinance.  Builders have told me that our
Proposition R ordinance makes it virtually impossible to build
new multi-family housing on most Santa Monica sites.

Clearly, our Proposition R ordinance has not achieved the City's
goal of providing affordable housing.

It is appropriate that we make changes in our Proposition R
implementation ordinance.