(a) 
The term “City of Santa Monica” shall include the City, its housing authority, redevelopment agency, and other City agencies.
(b) 
The term “housing unit,” shall mean a residential dwelling designed for human occupation, and shall include but not be limited to apartments, condominiums, townhouses, single family homes, duplexes, mobile home spaces, and trailer spaces.
(c) 
The term “low rent housing unit” shall mean a housing unit that is located within a low rent housing project.
(d) 
The terms “develop,” “construct,” “acquire,” and “low rent housing projects” shall be interpreted in accordance with Article XXXIV of the California Constitution, Government Code Section 37000 et seq., and any successor legislation thereto.
(e) 
The provisions of this Article shall be interpreted to maximize affordable housing production and to promote economic diversity in the community.
Commencing with the 1998-1999 fiscal year, and each fiscal year thereafter, the City of Santa Monica is authorized to develop, construct, or acquire low rent housing units equal in number to no more than one-half of one percent (1/2 of 1%) of the total number of housing units existing in the City as of the last day of the previous fiscal year. If the City does not exhaust the authorization conferred by this Section in any fiscal year, the authority remaining for that year may be carried over and added to the number of units otherwise allowed in subsequent fiscal years for a maximum of three (3) additional years. For purposes of determining whether the City has exhausted its authorization for a given fiscal year, units shall be counted against the authorization either when the City grants planning approval or when the City makes a binding funding commitment for a low rent housing unit, whichever occurs first.
Commencing with the 1999-2000 fiscal year, at the beginning of each fiscal year, City staff shall issue a report to the City Council concerning the following matters:
(a) 
The total number of affordable housing units subject to Article XXXIV which received City planning approval or funding commitments in the previous fiscal year.
(b) 
The total number of housing units existing in the City as of the last day of the previous fiscal year. As of June 30, 1998, a total of 48,573 housing units existed in the City. Based on permit data reports generated by the City, this number shall be adjusted each fiscal year by adding the number of newly constructed housing units that have received final City approval for the occupancy of the housing unit and subtracting the number of housing units that have been demolished during that same period.
(c) 
The number of affordable housing units which were authorized pursuant to Section 2110 of this Article in previous fiscal years, but which have not already been counted against the annual authorization and which have not been carried over for more than three (3) subsequent fiscal years.
(d) 
The total number of affordable housing units that are authorized for the current fiscal year, including the housing unit authorization that may be carried over from previous fiscal years.
(a) 
The housing authorized under this article shall be in addition to any other Article XXXIV authorization granted by the registered voters of the City before or after the adoption of this article.
(b) 
Any low rent housing project authorized by this article may be funded in any manner.
(c) 
This article in no way restricts or limits the City’s authority to develop or assist in the development of housing that is not subject to Article XXXIV.
(Adopted at General Municipal Election, November 3, 1998)