A. The purpose of this Chapter is to facilitate
the development and availability of housing affordable to a broad
range of households with varying income levels within the City. 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 commercial 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.
Imposing a fee that is reasonably related to the burdens created by
new commercial development on the City's need for affordable housing
will enable the City to fund development of affordable housing units
that will contribute to addressing these impacts and fulfilling these
goals.
B. The City has prepared a Commercial Nexus
Study and Linkage Fee Analysis. It shows, and the City Council finds
that there is a reasonable relationship between the purpose for which
the fees established by this Ordinance are to be used and the type
of development projects on which the fees are imposed, and between
the amount of the fees and the cost of the affordable housing units
or portion of the units attributable to the development on which the
fees are imposed.
C. It is the intent of the City Council that
the fee required by this Chapter shall be supplementary to any conditions
imposed upon a development project pursuant to other provisions of
the Municipal Code, the City Charter, the Subdivision Map Act, the
California Environmental Quality Act, other state and local laws,
which may authorize the imposition of project specific conditions
on development.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
A. The regulations, requirements and provisions
of this Chapter and Council resolutions adopted pursuant hereto shall
apply to any commercial portion of any new Project for which a development
application was determined complete or an application for change(s)
in existing use(s) was made on or after the effective date of this
Ordinance. Any project subject to the provisions of this Chapter shall
not be required to comply with the Santa Monica Municipal Code Project
Mitigation Measures.
B. Notwithstanding the above, the following
projects or portions of projects as specified thereof shall not be
subject to the requirements of this Chapter:
5. Commercial portions of multi-family rental
housing projects developed by a nonprofit housing provider if the
developer is receiving financial assistance through a public agency,
so long as the multi-family rental housing project is an affordable
housing project meeting the requirements of the Santa Monica Municipal
Code and the project's affordable housing obligations will be secured
by a regulatory agreement, memorandum of agreement, or recorded covenant
with a public agency for a minimum period of 55 years;
6. Re-occupancy of square footage in an existing
building or structure if there is no change of use;
7. Square footage used for outdoor dining
in the public right-of-way.
If a development is exempt from the
fee at initial construction, but later converts to a commercial development
subject to this Ordinance, the converted square footage will be deemed
net new commercial square footage and the housing impact fee shall
be paid prior to final approval of a building permit.
|
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
For the purpose of this Chapter,
the following terms shall be defined as follows:
"Affordable housing commercial linkage fee"
shall mean a fee paid to the City by an applicant pursuant to Section
9.68.040 of this Chapter in connection with approval of a project, to contribute to the creation of affordable housing production or preservation to offset additional need for affordable housing generated by new commercial development.
"City projects"
shall mean City public works projects and City community
facilities (e.g., libraries, public parking structures, recycling
centers, and community centers), not including public/private partnerships.
"Nexus Study"
shall mean the Commercial Nexus Study and Linkage Fee Analysis
prepared by Rosenow Spevacek Group, Inc., dated July 2013.
"Project"
shall mean any development having a commercial use component and gross new or additional floor area of one thousand square feet or more or that changes an existing use to a different use that increases the demand for affordable housing. Gross floor area for the purposes of this definition shall be the same as Section
9.52.020, or any successor legislation, but shall exclude parking area.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
Except as provided in Section
9.68.050, the developer of a Project shall pay an affordable housing commercial linkage fee in accordance with the following:
A. Affordable Housing Commercial Linkage
Fee. Fees shall be computed as follows:
1. All nonresidential portions of a Project
shall pay the following based on the gross square footage of each
use included in the proposed Project:
a.
Retail: $9.75 square foot.
b.
Office: $11.21 per square foot.
c.
Hotel/Lodging: $3.07 per square foot.
d.
Hospital: $6.15 per square foot.
e.
Industrial: $7.53 per square foot.
f.
Institutional: $10.23 per square
foot.
g.
Creative Office: $9.59 per square
foot.
h.
Medical Office: $6.89 per square
foot.
2. The land use categories identified in paragraphs
(a)—(h) above shall have the following meanings:
a.
Retail shall include: animal kennels
and veterinary hospitals, auto repair, car wash, retail and wholesale
construction-related materials, nurseries and garden centers, entertainment
and recreational facilities, gas stations, art galleries, nightclubs
and bars, Personal services, Post-secondary educational facility,
private studio, restaurants—fast food and cafes, restaurants—sit
down, retail durable goods, retail food and markets, retail mixed,
and retail nonfood.
b.
Office shall include: financial institutions
and office, and general office.
c.
Hotel/Lodging shall include: hotels,
motels and other overnight accommodations.
d.
Hospital shall include: full service
hospitals.
e.
Industrial shall include: surface
or structured auto inventory storage, City maintenance facilities
and bus yards, heavy industrial and manufacturing, light industrial,
utilities, warehouse and self-storage, and wholesale distribution
and shipping.
f.
Institutional shall include: educational
and cultural facilities.
g.
Creative Office shall include: offices,
production spaces and work spaces of establishments that are in the
business of the development of creative property, including but not
limited to, advertising, architectural services, broadcasting, communications,
computer software design, entertainment, engineering, graphic design,
interior design, internet content, landscape design, and similar uses.
h.
Medical Office shall include: Medical
office, including medical clinics, and offices for medical professionals.
3. The amount of legally permitted nonresidential
square footage to be demolished in an existing building or structure,
or to be removed from an outdoor area used as part of a service station
or for auto dealer sales, display and inventory storage, as a part
of a Project shall be a credit in the calculation of the Affordable
Housing Commercial Linkage Fee. Outdoor area used as part of a gas
station shall not include setbacks, landscaping, parking and other
paved areas used solely for access and circulation. Credit shall be
applied on a per square foot basis according to per square foot fee
assigned to the type of commercial use that existed on the site prior
to the new Project application submittal.
B. Timing of Fee Payment.
1. The Project applicant shall pay fees according
to the schedule of fees in place on the date the fees are paid, except
that the applicant for a vesting tentative map for a development project
shall pay the fees in effect on the date the application for the vesting
tentative map is deemed complete, as automatically adjusted.
2. No building permit for any Project shall
be issued unless the fees have been paid.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
A. A developer of any Project subject to the fee described in Section
9.68.040(A) 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 her/his
designee, at the time the applicant files a discretionary project
application, or if no such application is required, a building permit
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. The City Manager or her/his designee, shall render a written decision within ninety 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 fourteen consecutive calendar days from the date that the decision is made in the manner provided in Chapter
9.37 Common Procedures of this Code or any successor thereto.
D. If the City Manager or her/his 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 fee requirements shall be adjusted or waived
to reduce the obligations under this Chapter to the extent necessary
to avoid an unconstitutional result. If the City Manager or her/his
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.
E. If an adjustment or waiver is granted,
any change in use from the approved project shall invalidate the adjustment
or waiver.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
Pursuant to
Government Code Section
66006, the Affordable Housing Commercial Linkage Fee Reserve Account
is hereby established. The fees paid to the City pursuant to the provisions
of this Chapter shall be deposited into the Affordable Housing Commercial
Linkage Fee Reserve Account and used solely for the purpose described
in this Chapter. All monies deposited into the Reserve Account shall
be held separate and apart from other City funds. All interest or
other earnings on the unexpended balance in the Reserve Account shall
be credited to the Reserve Account.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
All monies and interest earnings
in the Affordable Housing Commercial Linkage Fee Reserve Account shall
be expended solely on the production or preservation of affordable
housing to help fulfill the need identified in the Nexus Study to
increase the supply of housing affordable to worker households of
extremely low, very low, low, or moderate income, or such other report
as may be prepared from time to time to document the reasonable fair
share of the costs to mitigate the increased need for affordable housing
that is created by new commercial development. Such expenditures may
include, but are not necessarily limited to the following:
A. Reimbursement for all direct and indirect
costs incurred by the City to fund the production of affordable housing
pursuant to this Chapter, including but not limited to, the cost of
land and right-of-way acquisition, planning, legal advice, engineering,
design, construction, construction management, materials and equipment,
or issuing loans to nonprofit affordable housing developers to acquire
land and/or to rehabilitate existing buildings or build new developments
to increase the supply of affordable housing units.
B. Costs of issuance or debt service associated
with bonds, notes or other security instruments issued to fund affordable
housing needs identified.
C. Reimbursement for administrative costs
incurred by the City in establishing or maintaining the Affordable
Housing Commercial Linkage Fee Reserve Account required by this Chapter,
including but not limited to the cost of studies to establish the
requisite nexus between the fee amount and the use of fee proceeds
and yearly accounting and reports.
No portion of the Affordable Housing
Commercial Linkage Fee Reserve Account may be diverted to other purposes
by way of loan or otherwise.
|
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
To account for inflation in affordable
housing development costs, the fee imposed by this ordinance shall
be adjusted automatically on July 1 of each fiscal year, beginning
on July 1, 2015, by a percentage equal to the appropriate Construction
Cost Index as published by Engineering News Record, or its successor
publication, for the preceding 12 months.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
A. If an affordable housing commercial linkage
fee is collected on a Project and the permit for that Project later
expires, is vacated or voided before commencement of construction,
the developer shall, upon request, be entitled to a refund of the
unexpended housing commercial linkage fee paid, less a portion of
the fee sufficient to cover costs of collection, accounting for and
administration of the fee paid. Any request for a refund shall be
submitted in writing to the Director of Planning and Community Development
within one year of the date that the permit expires or is vacated
or voided. Failure to timely submit a request for refund shall constitute
a waiver of any right to a refund.
B. Fees collected pursuant to this Chapter
which remain unexpended or uncommitted for 5 or more fiscal years
after deposit into the Affordable Housing Commercial Linkage Fee Reserve
Account shall be accounted for or may be refunded as provided by state
law.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
The amount of the affordable housing
commercial linkage fee and the formula for the automatic annual adjustment
established by this Chapter may be reviewed and revised periodically
by resolution of the City Council. This Chapter shall be considered
enabling and directive in this regard.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
The City Manager, or her/his designee,
is authorized to adopt written administrative regulations or guidelines
that are consistent with and that further the terms and requirements
set forth within this Chapter.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)