City Council Meeting: July
10, 2007
July
24, 2007
Agenda Item:1-E
To: Mayor and City Council
From: Marsha Jones Moutrie, City
Attorney
Subject: Resolution Automatically Adjusting the
Affordable Housing Unit Base Fee For New Market-Rate Multifamily Development
Pursuant to Municipal Code Section 9.56.070(b)
Recommended
Action
Staff recommends that the City Council adopt
the attached Resolution which would automatically adjust the Affordable Housing
Unit Base Fee for new market rate apartments and condominiums. More specifically, the current Affordable
Housing Unit Base Fee for new market rate apartments of $24.10 per square foot
of floor area would be increased by $1.21 and the current Affordable Housing
Unit Base Fee for new market rate condominiums of $28.15 per square foot of
floor area would be increased by $1.41, effective on September 15, 2007. The adjusted Affordable Housing Unit Base
Fee would be $25.31 for new market rate condominiums and $29.56 for new market
rate apartments.
Executive
Summary
Santa Monica
Municipal Code Section 9.56.070(b) provides that the Affordable Housing Unit
Base Fee shall be adjusted annually by resolution based on changes in
construction and land costs. On June
13, 2006, the City Council approved the methodology for ascertaining changes in
those costs and thereby for calculating the adjustment. This resolution has been prepared in
accordance with the approved methodology and is attached as Exhibit
A.
Discussion
Section 9.56.070 of the City’s Affordable Housing Production
Program provides that the Affordable Housing Unit Base Fee shall be adjusted
annually by City Council resolution based on changes in construction costs and
land costs. In order to implement the
Council’s decision, staff formulated a proposed method of computation to
reflect changes in construction costs and land costs. This methodology was detailed in an April 24,
2006 letter prepared by Paul S. Silvern of Hamilton, Rabinovitz &
Alschuler, Inc. (“HR&A”) on behalf of the City. This methodology was approved by the City
Council at its June 13, 2006 meeting. At
its June 27, 2006 meeting, the City Council utilized this methodology when it
adopted Resolution No. 10149 (CCS) which establishes the current Affordable
Housing Unit Base Fee.
HR&A has calculated
the appropriate adjustment to the Affordable Housing Unit Base Fee for FY
2007-08 based on this established methodology.
HR&A’s analysis demonstrates that the current Affordable Housing
Unit Base Fee for new market rate apartments of $24.10 should be increased by
$1.21 per square foot of floor area and the current Affordable Housing Unit
Base Fee of $28.15 for condominiums should be increased by $1.41 per square
foot of floor area. The proposed
resolution would revise the Affordable Housing Unit Base Fee accordingly,
effective on September 15, 2007. The adjusted Affordable Housing Unit Base Fee would be
$25.31 for new market rate condominiums and $29.56 for new market rate
apartments.
On June 28, 2007, the City published notice of this hearing and
the availability of the HR&A analysis. The City republished this notice on July 5,
2007. A copy of this analysis has been
available in the City Clerk’s Office for public review since June 27, 2007 and
is attached hereto as Exhibit B.
Budget/Financial Impact
There
is no financial impact.
Prepared by: Marsha Jones Moutrie, City Attorney
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Approved: |
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Forwarded to Council: |
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Marsha Jones Moutrie City
Attorney |
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P. City Manager |
Attachment: A. Resolution