The City's affordable housing production program requires developers of market rate multiple-unit developments to contribute to affordable housing production and thereby help the City meet its affordable housing need. As detailed in the findings supporting the ordinance codified in this Chapter, the requirements of this Chapter are based on a number of factors, including, but not limited to, the City's long-standing commitment to economic diversity; the serious need for affordable housing as reflected in local, State, and Federal housing regulations and policies; the demand for affordable housing created by market rate development; the depletion of potential affordable housing sites by market-rate development; and the impact that the lack of affordable housing production has on the health, safety, and welfare of the City's residents, including its impacts on traffic, transit and related air quality impacts, and the demands placed on the regional transportation infrastructure.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
The following words or phrases as used in this Chapter shall have the following meanings:
"30% income household"
means a household whose gross income does not exceed the 30% income limits applicable to the Los Angeles-Long Beach Primary Metropolitan Statistical Area, adjusted for household size, as published and periodically updated by HUD.
"50% income household"
means a household whose gross income does not exceed 50% income limits applicable to the Los Angeles-Long Beach Primary Metropolitan Statistical Area, adjusted for household size, as published and periodically updated by HUD.
"80% income household"
means a household whose gross income does not exceed 80% income limits applicable to the Los Angeles-Long Beach Primary Metropolitan Statistical Area, adjusted for household size, as published and periodically updated by HUD.
"Adjusted for household size"
means 70% adjustment for a household of one person, 80% adjustment for a household of 2 persons, 90% adjustment for a household of 3 persons, 100% adjustment for a household of 4 persons, 108% adjustment for a household of 5 persons, 116% adjustment for a household of 6 persons, 124% adjustment for a household of 7 persons, 132% adjustment for a household size of 8 persons. For households of more than 8 persons, adjustments shall be made in accordance with applicable HUD regulations.
"Adjusted for household size appropriate for the unit"
means for a household of one person in the case of a studio unit, 2 persons in the case of a one-bedroom unit, 3 persons in the case of a two-bedroom unit, 4 persons in the case of a three-bedroom unit, and 5 persons in the case of a four-bedroom unit.
"Affordable housing fee"
means a fee paid to the City by a multiple-unit project applicant pursuant to Section 9.64.070 of this Chapter.
"Affordable housing unit"
means a dwelling unit developed by a multiple-unit project applicant pursuant to Section 9.64.050 or 9.64.060 of this Chapter.
"Affordable housing unit development cost"
means the City's average cost to develop a unit of affordable housing.
"Affordable ownership housing cost"
means "affordable housing cost" as defined in Section 50052.5 of the Health and Safety Code, as amended from time to time in accordance with law.
"Affordable rent"
means:
1. 
For 30% income households, the product of 30% times 30% of the area median income adjusted for household size appropriate for the unit.
2. 
For 50% income households, the product of 30% times 50% of the area median income adjusted for household size appropriate for the unit.
3. 
For 80% income households whose gross incomes exceed the maximum incomes for 50% income households, the product of 30% times 60% of the area median income adjusted for household size appropriate for the unit.
4. 
For moderate income households, the product of 30% times 110% of the area median income adjusted for household size appropriate for the unit.
For purposes herein, affordable rent shall be adjusted as necessary to be consistent with pertinent Federal or State statutes and regulations governing Federal or State assisted housing.
"Area median income or AMI"
means the median family income applicable to the Los Angeles-Long Beach Metropolitan Statistical Area, as published and periodically updated from time to time by HUD.
"Dwelling unit"
means dwelling unit as defined in Santa Monica Municipal Code Section 9.52.020.0730, or any successor thereto, and shall also include a unit in single-room occupancy housing, as defined in Santa Monica Municipal Code Section 9.51.020(A)(1)(d)(ii), or any successor thereto.
"Floor area"
means floor area as defined in Santa Monica Municipal Code Section 9.52.020.0870, or any successor thereto.
"Gross income"
means gross income as defined in Title 25, Section 6914 of the California Code of Regulations, as amended from time to time, in accordance with law.
"HCD"
means the California Department of Housing and Community Development, or its successor.
"Housing cost"
means housing cost as defined in Title 25, Section 6920 of the California Code of Regulations, as amended from time to time in accordance with law.
"HUD"
means the United States Department of Housing and Urban Development or its successor.
"Market rate unit"
means a dwelling unit for which the rent or sales price is not restricted by this Chapter.
"Moderate income household"
means a household whose gross income exceeds the maximum income for an 80% income household and whose gross income does not exceed the lesser of: (1) 120% of the area median income, adjusted for household size, as published and periodically updated by HCD; or (2) twice the income limit for 50% income households, adjusted for household size, as published and periodically updated by HUD.
"Multiple-unit project"
means a multiple-unit residential development, including, but not limited to, apartments, condominiums, townhouses or the multiple-unit residential component of a mixed-use project, for which City permits and approvals are sought.
"Multiple-unit project applicant"
means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities which seeks City development permits or approvals to develop a multiple-unit project.
"Multiple-unit residential district"
means any zoning district designated in the City of Santa Monica Comprehensive Zoning Ordinance as a Multiple-Unit Residential District.
"Parcel"
means parcel as defined in Santa Monica Municipal Code Section 9.52.020.1530, or any successor thereto.
"Rent"
means rent as defined in Title 25, Section 6918 of the California Code of Regulations, as amended from time to time in accordance with law.
"Utility allowance"
means a reasonable allowance for utilities as published annually by the Santa Monica Housing Authority.
"Vacant parcel"
means a parcel in a Multiple-Unit Residential District that has no residential structure located on it as of August 20, 1998, or which had a residential structure located on it on that date which was subsequently demolished pursuant to a demolition order of the City.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
A. 
The obligations established by this Chapter shall apply to each multiple-unit project involving the construction of 2 or more dwelling units, not including accessory dwelling units or junior accessory dwelling units. Multiple-unit projects that have received ministerial or discretionary planning approvals on or prior to July 26, 2013, shall be subject to the provisions of Santa Monica Municipal Code Section 9.64.010 et seq., as they existed on the date of their approvals, except that pricing requirements for affordable housing units shall be published by the City on an annual basis instead of adoption by resolution of the City Council. For purposes of this Chapter, ministerial or discretionary planning approvals include, but are not limited to: plan checks, variances, conditional use permits, administrative approvals, development review permits, and development agreement ordinances.
B. 
Notwithstanding the above, a multiple-unit rental housing project shall be subject to Section 9.64.110 of this Chapter but shall not be subject to the other requirements of this Chapter if:
1. 
The project is secured by a regulatory agreement, memorandum of agreement, or recorded covenant with the City valid for a minimum period of 99 years; and
2. 
The project is a 100% affordable housing project, as defined by Santa Monica Municipal Code Section 9.52.020.0050, that will be developed by a nonprofit housing provider receiving financial assistance through one of the City's housing trust fund programs.
C. 
Notwithstanding the above, a multiple-unit rental housing project shall be subject to Section 9.64.110 of this Chapter but shall not be subject to the other requirements of this Chapter if:
1. 
The project is secured by a regulatory agreement, memorandum of agreement, or recorded covenant with the City valid for a minimum period of 55 years; and
2. 
The project is a 100% affordable housing project, as defined by Santa Monica Municipal Code Section 9.52.020.0050, that: (a) will be developed by a nonprofit housing provider receiving financial assistance through local, State, or Federal funding sources; (b) will comply with the funding source regulations; (c) includes unit sizes that are no less than required by Section 9.64.050(E), unless expressly authorized by the funding source; (d) includes rents that are no higher than the rents allowed under this Chapter unless expressly authorized by the funding source; and (e) if the 100% affordable housing project satisfies any affordable obligations for a market-rate project(s), the 100% affordable project shall provide more affordable housing than would be required on site for the market-rate project, and during the City's review of the project, the nonprofit affordable housing provider shall consult with the City regarding the category, round and type of funding being sought.
D. 
A City-designated Historic Resource that is retained and preserved on site as part of a multiple-unit project shall not be considered or included in assessing any of the requirements under this Chapter. For a Structure of Merit, the applicant shall agree to record a deed restriction prior to issuance of a building permit for the project establishing that the Structure of Merit will be maintained for the life of the project.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; amended by Ord. No. 2605CCS § 1, adopted April 9, 2019; Ord. No. 2742CCS § 2, adopted April 11, 2023)
A. 
Except as provided in Section 9.23.030(A), no building permit shall be issued for any multiple-unit project unless such project has been approved in accordance with the standards and procedures set forth in this Chapter.
B. 
All applicants for multiple-unit projects shall satisfy the affordable housing obligation by choosing one of the following options:
1. 
Provide affordable housing units on site in accordance with Section 9.64.050;
2. 
Provide affordable housing units off site in accordance with Section 9.64.060;
3. 
For projects of 5 units or less, pay an affordable housing fee in accordance with Section 9.64.070(A); or
4. 
Acquire land for affordable housing in accordance with Section 9.64.080.
C. 
An application for a multiple-unit project will not be determined complete until the applicant has submitted a written proposal that demonstrates the manner in which the requirements of this Chapter will be met.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
The following requirements must be met to satisfy the on-site provisions of this Chapter:
A. 
An applicant for a multiple-unit project of 6-19 units shall provide 15% of total units as affordable to no more than 80% income households.
B. 
An applicant for a multiple-unit project of 20 units or more shall construct affordable housing units pursuant to subsection (A), above, which shall be divided equally among 50% income households, 80% income households, and moderate income households. Any remainder units above multiples of 3 shall be distributed to 50% income households first and 80% income households second. For illustrative purposes, Table 9.64.050(B), below, provides examples of how distribution would look for certain projects.
Table 9.64.050(B)
# of Affordable Units in the Project
50% AMI
80% AMI
Moderate Income
3
1
1
1
4
2
1
1
5
2
2
1
6
2
2
2
7
3
2
2
8
3
3
2
9
3
3
3
10
4
3
3
11
4
4
3
12
4
4
4
13
5
4
4
14
5
5
4
15
5
5
5
16
6
5
5
17
6
6
5
18
6
6
6
19
7
6
6
20
7
7
6
21
7
7
7
Additional affordable housing unit
Allocate 1st
Allocate 2nd
Allocate 3rd
C. 
Fractions. Any fractional affordable housing unit that results from the formulas of this Section that is 0.5 or more shall be treated as a whole affordable housing unit (i.e., any resulting fraction shall be rounded up to the next larger integer) and that unit shall also be built pursuant to the provisions of this Section. Any fractional affordable housing unit that is less than 0.5 can be satisfied by the payment of an affordable housing fee for that fractional unit only pursuant to Section 9.64.070(B).
D. 
Income and Rent Limits. The City shall make available a list of income levels for 30% income households, 50% income households, 80% income households, and moderate income households, adjusted for household size, the corresponding maximum affordable rents adjusted by household size appropriate for the unit, and the minimum number of units required for 30% income households, 50% income households, or 80% income households required for typical sizes of multiple-unit projects, which list shall be updated periodically.
E. 
Affordable Housing Unit Requirements.
1. 
The multiple-unit project applicant may reduce the interior amenities of the affordable housing units as long as there are not significant identifiable differences between affordable housing units and market rate units visible from the exterior of the dwelling units; provided, that all dwelling units conform to the requirements of the applicable Building and Housing Codes.
2. 
The unit mix percentage for affordable two- and three-bedroom housing units shall be equal to or greater than the unit mix percentage for the corresponding market rate units.
3. 
The unit mix percentage for affordable studio housing units shall not exceed 15% of the total number of affordable units required.
4. 
The design of the affordable housing units shall be reasonably consistent with the market rate units in the project. An affordable housing unit shall have a minimum total floor area, depending upon the number of bedrooms provided, of no less than the following:
0 bedrooms
500 square feet
1 bedroom
600 square feet
2 bedrooms
850 square feet
3 bedrooms
1,020 square feet
4 bedrooms
1,200 square feet
5. 
An affordable housing unit shall comply with minimum occupancy requirements as follows:
0 bedrooms
1 occupant
1 bedroom
1 occupant
2 bedrooms
2 occupants
3 bedrooms
3 occupants
4 bedrooms
5 occupants
6. 
Affordable housing units must be evenly disbursed throughout the multiple-unit project to prevent undue concentrations of affordable housing units.
F. 
All affordable housing units in a multiple-unit project or a phase of a multiple-unit project shall be constructed concurrently with the construction of market rate units in the multiple-unit project or phase of that project.
G. 
On-site affordable housing units must be rental units.
H. 
Each multiple-unit project applicant, or their successor, shall submit an annual report to the City identifying which units are affordable units, the monthly rent (or total housing cost if an ownership unit), vacancy information for each affordable unit for the prior year, verification of income of the household occupying each affordable unit throughout the prior year, and such other information as may be required by City staff.
I. 
A multiple-unit project applicant who meets the requirements of this Section shall be entitled to the density bonuses, incentives or concessions, and waivers or reductions of development standards provided by Chapter 9.22, or any successor thereto.
J. 
All residential developments providing affordable housing on site pursuant to the provisions of this Section shall receive priority building department plan check processing by which housing developments shall have plan check review in advance of other pending developments to the extent authorized by law.
K. 
The City Council may by resolution establish compliance monitoring fees which reflect the reasonable regulatory cost to the City of ensuring compliance with this Section when affordable housing units are being initially rented or sold, when the required annual reports are submitted to the City, and when the units are being re-sold or re-leased.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; amended by Ord. No. 2520CCS § 63, adopted June 14, 2016; Ord. No. 2605CCS § 2, adopted April 9, 2019; Ord. No. 2622CCS § 1, adopted October 22, 2019; Ord. No. 2654CCS § 1, adopted October 27, 2020; Ord. No. 2742CCS § 2, adopted April 11, 2023)
The following requirements must be met to satisfy the off-site option of this Chapter:
A. 
An applicant for a multiple-unit dwelling project consisting of 20 or more units shall agree to construct 5% more affordable housing units than the number of affordable housing units required by Section 9.64.050(B).
B. 
Fractions. Any fractional affordable housing unit that results from the formulas of this Section that is 0.5 or more shall be treated as a whole affordable housing unit (i.e., any resulting fraction shall be rounded up to the next larger integer) and that unit shall also be built pursuant to the provisions of this Section. Any fractional affordable housing unit that is less than 0.5 can be satisfied by the payment of an affordable housing fee for that fractional unit only pursuant to Section 9.64.070(B).
C. 
The off-site affordable housing units shall be affordable to 80% income households or lower.
D. 
The multiple-unit project applicant shall identify an alternate site suitable for residential housing which the project applicant either owns or has site control over (e.g., purchase agreement, option to purchase, lease) subject to City review to ensure that the proposed development is consistent with the City's housing objectives and projects.
E. 
The off-site units may be located anywhere in the City except for within the area defined in Figure 9.64.060.A, Off-Site Affordable Housing Prohibition Area, below.
Figure 9.64.060.A: Off-Site Affordable Housing Prohibition Area
-Image-46.tif
F. 
The off-site units shall satisfy the requirements of subsections (D) through (J) of Section 9.64.050.
G. 
Pooling Units/No Double Counting. If 2 or more market rate projects elect to use the off-site option in a single project, the off-site affordable housing units in the project shall not be counted twice towards the satisfaction of any affordable housing obligation pursuant to this Chapter, but shall count towards eligibility for a density bonus in accordance with Chapter 9.22.
H. 
The off-site affordable units shall be owned in whole or part and operated by a nonprofit affordable housing provider for the life of the project, and the Final Construction Permit Sign Off or Certificate of Occupancy for the off-site affordable units shall be issued prior to or concurrently with the market-rate housing project.
I. 
The City Council may by resolution establish compliance monitoring fees which reflect the reasonable regulatory cost to the City of ensuring compliance with this Section when affordable housing units are initially being rented or sold, when the required annual reports are submitted to the City, and when the units are being re-sold or re-leased.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
A multiple-unit project may satisfy the affordable housing obligations established by this Chapter by paying an affordable housing fee in accordance with the following requirements:
A. 
Multiple-unit projects of 5 units or less based on the following formula:
(Affordable housing unit base fee) x (floor area of multiple-unit project)
B. 
Multiple-unit projects of 6 units or more with fractional affordable housing units of less than 0.5 based on the formula established in Sections 9.64.050 and 9.64.060:
(City's affordable housing unit development cost) x (fractional percentage)
C. 
For purposes of this Section, the affordable housing unit base fee shall be established by resolution of the City Council. Commencing on July 1, 2006 and on July 1st of each fiscal year thereafter, the affordable housing unit base fee shall be adjusted based on changes in construction costs and land costs. The amount of the affordable housing fee that the multiple-unit project applicant must pay shall be based on the affordable housing unit base fee resolution in effect at the time that the affordable housing fee is paid to the City.
D. 
For purposes of this Section, the City's affordable housing unit development cost shall be established by resolution of the City Council. Commencing on July 1, 2007 and on July 1st of each fiscal year thereafter, the City's affordable housing unit development cost shall be adjusted based on changes in construction costs and land costs. The affordable housing fee that the multiple-unit project applicant must pay shall be based on the affordable housing unit development cost resolution in effect at the time of payment to the City.
E. 
The amount of the affordable housing unit base fee may vary by product type (apartment or condominium) and shall reflect, among other factors, the relationship between new market rate multiple-unit development and the need for affordable housing.
F. 
The affordable housing fee shall be paid in full to the City prior to the City granting any approval for the occupancy of the project, but no earlier than the time of building permit issuance.
G. 
The City shall deposit any payment made pursuant to this Section in a reserve account separate from the General Fund to be used only for development of affordable housing, administrative costs related to the production of this housing, and monitoring and evaluation of this affordable housing production program. Any moneys collected and interest accrued pursuant to this Chapter shall be committed within 5 years after the payment of such fees or the approval of the multiple-unit project, whichever occurs later. Funds that have not been appropriated within this 5-year period shall be refunded on a pro rata share to those multiple-unit project applicants who have paid fees during the period. Expenditures and commitments of funds shall be reported to the City Council annually as part of the City budget process.
H. 
An affordable housing fee payment pursuant to this Section shall not be considered provision of affordable housing units for purposes of determining whether the multiple-unit project qualifies for a density bonus pursuant to Government Code Section 65915.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
A. 
A multiple-unit project applicant may meet the affordable housing obligations established by this Chapter by making an irrevocable offer:
1. 
Dedicating land to the City or a nonprofit housing provider;
2. 
Selling of land to the City or a nonprofit housing provider at below market value; or
3. 
Optioning of land on behalf of the City or a nonprofit housing provider.
Each of these options must be for a value at least equivalent to the affordable housing obligation otherwise required pursuant to this Section.
B. 
The multiple-unit project applicant must identify the land at the time that the development application is filed with the City. Any land offered pursuant to this Section must be located within one-quarter mile radius of the market rate units unless the multiple-unit project applicant demonstrates that locating the land outside of this radius better accomplishes the goals of this Chapter, including maximizing affordable housing production and dispersing affordable housing throughout the City. The City may approve, conditionally approve or reject such offers subject to administrative guidelines to be prepared by the City Manager or designee. If the City rejects such offer, the multiple-unit project applicant shall be required to meet the affordable housing obligation by other means set forth in this Chapter.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
The Condominium and Cooperative Tax described in Section 6.76.010 of the Santa Monica Municipal Code or any successor thereto and the Park and Recreation Facilities Tax established in Chapter 6.80 of Article 6 of the Santa Monica Municipal Code or any successor thereto, the Transportation Impact Fee required by Chapter 9.66, or any successor thereto, the Open Space Fee required by Chapter 9.67, or any successor thereto, and the Childcare Linkage Fee required by Chapter 9.65, or any successor thereto, shall be waived for required affordable housing units and for 30%, 50%, 80% and moderate-income dwelling units developed by the City or its designee using affordable housing fee. However, any multiple-unit project applicant who elects to pay an affordable housing fee shall not be eligible for any fee waiver under this Section.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
The City shall publish, on an annual basis, the 30%, 50%, 80%, and moderate-income household levels, and affordable rents for affordable housing units, adjusted for household size appropriate for the unit.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
A. 
Only 30%, 50%, 80% and moderate-income households shall be eligible to occupy affordable housing units. The City shall develop a list of income-qualified households. Multiple-unit project applicants shall select households from the City-developed list of income-qualified households.
B. 
The following individuals, by virtue of their position or relationship, are ineligible to occupy an affordable housing unit:
1. 
All employees and officials of the City of Santa Monica or its agencies, authorities, or commissions who have, by the authority of their position, policy-making authority or influence over the implementation of this Chapter and the immediate relatives and employees of such City employees and officials;
2. 
The immediate relatives of the applicant or owner, including spouse, children, parents, grandparents, brother, sister, father-in-law, mother-in-law, son-in-law, daughter-in-law, aunt, uncle, niece, nephew, sister-in-law, and brother-in-law.
C. 
For purposes of this Chapter, income eligibility is based upon the gross income of the household, including the income of all adult wage earners including elderly or disabled family members, and all other sources of household income from adults.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
30%, 50%, 80% and moderate-income dwelling units developed as part of a market rate project, pursuant to replacement requirements of the Santa Monica Rent Control Board, shall count towards the satisfaction of this Chapter if they otherwise meet applicable requirements for this Chapter including, but not limited to, the income eligibility requirements, deed restriction requirements, and pricing requirements. New inclusionary units required by the Rent Control Board which meet the standards of this Chapter shall count towards the satisfaction of this Chapter.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
Prior to issuance of a building permit for a project meeting the requirements of this Chapter by providing affordable units on site or off site, the multiple-unit project applicant shall record deed restrictions or other legal instruments setting forth the obligation of the applicant under this Chapter for City review and approval. Such restrictions shall be effective for at least 55 years. In addition to the administrative guidelines specifically required by other provisions of this Chapter, the City Manager or designee shall be the designated authority to enter into recorded agreements with multiple-unit project applicants.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
No building permit or occupancy permit shall be issued, nor any development approval granted, for a project which is not exempt and does not meet the requirements of this Chapter. All affordable housing units shall be rented or owned in accordance with this Chapter.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
The City Manager or designee shall submit a report to the City Council on an annual basis which shall contain information concerning the implementation of this Chapter. This report shall also detail the projects that have received Planning approval during the previous year and the manner in which the provisions of this Chapter were satisfied. This report shall further assess whether the provisions of Proposition R have been met and whether changes to this Chapter or its implementation procedures are warranted. In the event the provisions of Proposition R have not been met, the City Council shall take such action as is necessary to ensure that the provisions will be met in the future. This action may include, but not be limited to, amending the provisions of this Chapter or its implementation.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
The City Manager or designee shall develop guidelines to implement this Chapter, subject to approval of the City Council. The guidelines shall include, but not be limited to, the methodology for the establishment and periodic adjustment of the base fee and the affordable housing unit development cost; for-sale affordable unit requirements, tenant and purchaser eligibility procedures; and additional requirements for exercise of the off-site option and land acquisition option.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)
A. 
A multiple-unit project applicant may request that the requirements of this Chapter be adjusted or waived based on a showing that applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property.
B. 
To receive an adjustment or waiver, the applicant must submit an application to the City Manager or designee at the time the applicant files a multiple-unit project application. The applicant shall bear the burden of presenting substantial evidence to support the request and set forth in detail the factual and legal basis for the claim, including all supporting technical documentation.
C. 
In making a determination on an application to adjust or waive the requirements of this Chapter, the City Manager or designee, or City Council on appeal, may assume each of the following when applicable:
1. 
The applicant is subject to the affordable housing obligation of this Chapter;
2. 
The applicant will benefit from the inclusionary incentives set forth in this Chapter and the City's Municipal Code;
3. 
The applicant will be obligated to provide the most economical affordable housing units feasible in terms of construction, design, location and tenure.
D. 
The City Manager or designee shall render a written decision within 90 days after a complete application is filed. The City Manager's or designee's decision may be appealed to the City Council if such appeal is filed within 14 consecutive calendar days from the date that the decision is made in the manner provided in Santa Monica Municipal Code Chapter 9.37, Common Procedures, or any successor thereto.
E. 
If the City Manager or designee, or City Council on appeal, upon legal advice provided by or at the behest of the City Attorney, determines that applying the requirements of this Chapter would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property, the affordable housing requirements shall be adjusted or waived to reduce the obligations under this Chapter to the extent necessary to avoid an unconstitutional result. If an adjustment or waiver is granted, any change in the use within the project shall invalidate the adjustment or waiver. If the City Manager or designee, or City Council on appeal, determines that no violation of the United States or California Constitutions would occur through application of this Chapter, the requirements of this Chapter remain fully applicable.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; Amended by Ord. No. 2742CCS § 2, adopted April 11, 2023)