City Council Meeting: September
8, 2009
Agenda Item: 1-J
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 $26.45 per square foot
of floor area would be increased by $0.69 and the current Affordable Housing
Unit Base Fee for new market rate condominiums of $30.89 per square foot of
floor area would be increased by $0.80, effective on November 9, 2009. The adjusted Affordable Housing Unit Base Fee
would be $31.69 for new market rate condominiums and $27.14 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 HR&A Advisors, 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, its July 24,
2007 meeting, and July 23, 2008 meeting, the City Council utilized this
methodology when it adopted Resolution No. 10149 (CCS), Resolution No. 10229
(CCS), and Resolution 10329 (CCS) respectively which establish the current
Affordable Housing Unit Base Fee.
HR&A
has calculated the appropriate adjustment to the Affordable Housing Unit Base
Fee for FY 2009-10 based on this established methodology. HR&A’s analysis demonstrates that the
current Affordable Housing Unit Base Fee for new market rate apartments of
$26.45 should be increased by $0.69 per square foot of floor area and the
current Affordable Housing Unit Base Fee of $30.89 for condominiums should be
increased by $0.80 per square foot of floor area. The proposed resolution would revise the
Affordable Housing Unit Base Fee accordingly, effective on November 9,
2009. The
adjusted Affordable Housing Unit Base Fee would be $31.69 for new market rate
condominiums and $27.14 for new market rate apartments.
On August 26, 2009, the City published notice of this hearing and
the availability of the HR&A analysis.
The City republished this notice on September 2, 2009. A copy of this analysis has been available in
the City Clerk’s Office for public review since August 27, 2009 and is attached
hereto as Exhibit B.
Financial Impacts &
Budget Actions
There
is no financial impact.
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Approved: |
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Forwarded to Council: |
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Marsha Jones Moutrie P. Lamont Ewell
City Attorney City Manager