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 five units or less, pay an affordable housing fee in accordance with Section 9.64.070(A) or provide affordable housing unit(s) on-site in accordance with Section 9.64.050; 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; Ord. No. 2792CCS, 10/8/2024)
Except as provided in Chapter 9.34, Residential Unit Replacement Requirements, the following requirements must be met to satisfy the on-site provisions of this Chapter:
A. 
Except as may be otherwise required by State law, an applicant for the following multiple-unit projects shall provide 15% of total units as affordable to no more than 80% income households:
1. 
Projects of 5 units or less that has not elected to pay an affordable housing fee;
2. 
Projects of 6-19 units.
B. 
Except as may be otherwise required by State law, 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(C), below, provides examples of how distribution would look for certain projects.
Table 9.64.050(C)
# 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. 
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 shall not be isolated to a specific floor or to an area on a specific floor in accordance with Health and Safety Code Section 17929(a)(2). Units must be dispersed throughout the multiple-unit project.
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; Ord. No. 2792CCS, 10/8/2024; Ord. No. 2814CCS, 5/27/2025)
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
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. 
Definitions. As used in this Section:
"100% affordable housing project"
means a 100% affordable housing project as defined in Section 9.52.020.0050.
"Affordability covenants"
means 75-year affordability covenants that are included in a recorded deed restriction, in form approved by the City Attorney.
"Affordable housing provider"
means an affordable housing provider reasonably approved by the City.
"Applicant"
means the applicant, or its successors in interest, for a discretionary and ministerial City permit applicable to a multiple-unit project.
"Building permit"
means a final building permit issued by the City's Building Official (excluding grading or early start construction permits).
"Gap financing amount"
means the amount of financing necessary to complete a 100% affordable housing project assuming that: (a) the off-site affordable project will obtain a 4% Federal Low-Income Housing Tax Credit and/or tax-exempt bond allocation; and (b) that there will be no land acquisition costs. The gap financing amount shall be $150,000, per off-site affordable unit to be constructed within the 100% affordable housing project. The gap financing amount shall be increased annually, commencing on the first anniversary from the effective date of this ordinance, by the last published annual average in the ENR Building Cost Index (BCI) for the Los Angeles region, but shall not exceed an annual increase of 5%. The gap financing amount should be calculated from the effective date of the Ordinance codified in this Section until deposited into escrow in accordance with Section 9.64.065.D.
"Multiple-unit project"
means an eligible multiple-unit project pursuant to Section 9.64.065.B.
"Multiple-unit project property"
means the property on which a multiple-unit project will be built.
"Off-site property"
means a clean, uncontaminated property in the location specified in Section 9.64.060.E.
"Option"
means a purchase option for the off-site property that may be exercised by the City or an affordable housing provider, at the election of the City, for the purchase amount of $100.
"Option agreement"
means a purchase option agreement, including escrow instructions upon exercise of the option, approved as to form by the City Attorney, and executed by the City or an affordable housing provider, at the election of the City, and the owner of the off-site property. The option agreement shall be recorded in the official records of Los Angeles County.
"Protected unit(s)"
means any of the following:
1. 
Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.
2. 
Residential dwelling units that are or were subject to any form of rent or price control through a public entity's valid exercise of its police power within the past five years.
3. 
Residential dwelling units that are or were occupied by lower or very low-income households within the past five years.
4. 
Residential dwelling units that were withdrawn from rent or lease in accordance with California Government Code Section 7060 et seq., within the past 10 years.
"Rehabilitation property"
means a property proposed for substantial rehabilitation of units pursuant to Section 9.64.065.E.
"Uncontaminated property"
means a property free from hazardous substances, as defined under State and Federal law.
B. 
Eligible Multiple-Unit Projects. In order for applicants to use the provisions of this Section 9.64.065, each multiple-unit project shall contain six or more residential units; shall have obtained final approval of all required discretionary and ministerial City permits that have not expired, except for Architectural Review Board approval and post entitlement phase permits, as defined in Government Code Section 65913.3(j)(3), on or before August 12, 2025; and shall have submitted a complete application to use the provisions of this Section 9.64.065 within the 1,000 unit cap and/or prior to September 30, 2025; provided, however, that except as otherwise expressly provided in subsection D.5.b, herein, multiple-unit projects that have obtained a building permit, are under construction, or have been completed are not eligible. The applicant of an entitled multiple-unit project that meets the requirements of Section 9.64.065.B may also use the provisions of Section 9.64.065 to satisfy the requirements of Section 9.64.060 for a project if the applicant obtains a new entitlement for the same multiple-unit property prior to December 31, 2026.
C. 
Exclusions. Nothing in this Section 9.64.065 shall conflict with or supersede State or local requirements for on-site replacement of protected units, including, but not limited to, those set forth in the Housing Crisis Act of 2019, as amended from time to time, Government Code Section 66300 et seq., and Santa Monica Municipal Code Chapter 9.34, Residential Unit Replacement Requirements.
D. 
Alternative Off-Site Option. Notwithstanding Section 9.64.040.B, an applicant for a multiple-unit project may satisfy the affordable housing obligation in Chapter 9.64 by providing affordable housing units in a 100% affordable housing project on an off-site property in accordance with this Section if the applicant complies with the following requirements:
1. 
The requirements of subsections B through E, and I of Section 9.64.060 shall apply and be met by the applicant.
2. 
The off-site property shall also meet the following requirements:
a. 
The off-site property shall not have any lien or encumbrance on title that would prevent the recordation of an option agreement and affordability covenants in first priority position on title in favor of the City.
b. 
The off-site property shall be owned in whole or in part and operated by an affordable housing provider reasonably approved by the City for the life of the 100% affordable housing project.
3. 
Requirements for Affordable Units. The affordable units in the 100% affordable housing project shall be rental units and shall comply with the provisions of subsections E.2 through E.5 of Section 9.64.050, unless modified pursuant to Section 9.64.065.G. The number of off-site affordable units in the 100% affordable housing project shall be calculated as set forth in Section 9.64.065.H.
4. 
Annual Report. The affordable housing provider operating the 100% affordable housing project shall submit an annual report pursuant to the Affordability Covenants recorded on the off-site affordable housing property as discussed in Section 9.64.065.D.
5. 
Additional Requirements for Off-Site Units.
a. 
The applicant shall satisfy all the following requirements prior to and as a condition of issuance of a building permit for any multiple-unit project:
i. 
Identify the location of the off-site property and identify each multiple-unit project that will locate its required affordable housing units in the 100% affordable housing project to be constructed on the off-site property, and the number, bedroom mix, size, and affordability level of units in the 100% affordable housing project that will be attributed to each multiple-unit project. Designated units in the 100% affordable housing project shall not be counted more than once to satisfy the required affordable housing units required for each multiple-unit project.
ii. 
Identify and enter into an agreement with an affordable housing provider that will own, in whole or in part, and operate the 100% affordable housing project.
iii. 
The applicant shall procure a Phase 1 Environmental Site Assessment (ESA) of the off-site property, and a Phase II ESA of the off-site property, if necessary, conducted by a City-approved experienced environmental professional, to determine the potential presence on or under the off-site property of hazardous waste, as defined under State and Federal laws. If contaminants are detected in soil at or above regulatory levels, then the results of the soil sampling shall be shared with the City reviewed and acted upon by the appropriate regional, State, or local regulatory agencies as needed. If remediation is necessary, a No Further Action letter or similar documentation indicating case closure shall be obtained under the appropriate oversight agency prior to project occupancy. City has the right in its reasonable discretion to reject any off-site property that indicates the potential presence of hazardous waste and/or require the applicant to execute an environmental indemnity agreement in form approved by the City Attorney. In the event that the City rejects the off-site property due to the potential presence of hazardous waste, applicant shall have the opportunity to propose an alternate off-site location, subject to the same requirements under Section 9.64.065.D or proceed with alternative options under Section 9.64.065.E and F.
b. 
The applicant of a multiple-unit project located in the Coastal Zone with an approved Coastal Development Permit requiring an on-site affordability covenant that has already been recorded against the multiple-unit project property may be eligible to relocate the affordable units to an off-site property pursuant to this Section 9.64.065 any time: (1) after the California Coastal Commission has approved the relocation of the affordable units to an off-site property without any other material changes to the terms and/or conditions of the Coastal Development Permit; and (2) prior to issuance of a certificate of occupancy for the multiple-unit project; provided, however, that all other requirements under Section 9.64.065.D are satisfied.
c. 
Prior to, and as a condition of, issuance of the first building permit issued for any multiple-unit project, or issuance of the first certificate of occupancy for a multiple-unit project located in the Coastal Zone, the applicant shall place the gap financing amount for that multiple-unit project in an interest-bearing escrow account and enter into a joint escrow agreement executed by the City or an affordable housing provider, at the election of the City, and the applicant, with instructions that provide as follows:
i. 
The gap financing amount shall be distributed to the City or an affordable housing provider at no cost to either the City or affordable housing provider, at the election of the City, if construction of the off-site affordable housing project does not commence within: (a) 48 months following the issuance of the first building permit for any multiple unit project not located in the Coastal Zone; or (b) 18 months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment that allows a multiple-unit project in the Coastal Zone to locate its affordable units on an off-site property; provided, that the City may grant a 12-month extension by making a written finding of good cause prior to the expiration of the initial 48-month term.
ii. 
If construction of the 100% affordable housing project does commence within the applicable 48 months following the issuance of the first building permit for a multiple-unit project, or 18 months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment that allows a multiple-unit project in the Coastal Zone to locate its affordable units on an off-site property; or within the 12-month extension period if an extension is granted by the City, then the gap financing amount shall be returned to the applicant upon applicant's deposit into the joint escrow account of a ready-to-issue building permit letter from the City to construct the 100% affordable housing project on the off-site property. Following receipt by the escrow officer of the ready-to issue building permit letter, the gap financing amount shall be disbursed to the applicant.
iii. 
For purposes of this subsection D.5.c.i and c.ii, "commence" means that the project has received a building permit and construction activities begin on the site.
6. 
Prior to and as a condition of issuance of any building permit(s) for the first multiple-unit project(s), or prior to and as a condition of issuance of any certificate of occupancy for a multiple-unit project in the Coastal Zone, the applicant shall complete the following steps:
a. 
Execute and record on the off-site property an Option Agreement that authorizes the City or an affordable housing provider, at the election of the City, to exercise the option in the event that construction of the 100% affordable housing project does not commence: (a) within 48 months following the issuance of the first building permit for any multiple-unit project not located in the Coastal Zone that is locating its affordable housing units in the off-site affordable housing project; or (b) 18 months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment to allow a multiple-unit project in the Coastal Zone to locate its affordable units in the off-site affordable housing project, or within the 12-month extension period if an extension is granted by the City. Upon exercise of the Option and as such process is provided in the Option Agreement, the fee simple interest in the property shall transfer to the City only if construction of the off-site 100% affordable housing project does not commence: (a) within 48 months following the issuance of the first building permit for any multiple-unit project not located in the Coastal Zone that is locating its affordable housing units in the off-site affordable housing project; or (b) 18 months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment to allow a multiple-unit project in the Coastal Zone to locate its affordable units in the off-site affordable housing project, unless the City grants a 12-month extension for good cause in writing prior to the expiration of the 48-month term. If construction of the off-site 100% affordable housing project does commence within the applicable 48-month term, or within the 12-month extension period if an extension is granted by the City, then the Option Agreement shall automatically become null and void and shall be removed from title upon issuance of a certificate of occupancy for the 100% affordable housing project. For purposes of this subsection D.6.a, "commence" has the meaning given in subsection D.5.c.iii.
b. 
Concurrently with the recordation of the Option Agreement on the offsite property, the applicant or owner shall execute and record on each multiple-unit property a Notice of Off-Site Affordability Covenants that discloses the location of the off-site property and the description of the Affordability Covenants to be recorded on the off-site property. The Notice of Off-Site Affordability Covenants shall not impose any duty on the applicant or owner of the multiple-unit property to comply with any affordability requirements on-site and shall merely serve as notice that the affordability requirements of Chapter 9.64 are to be satisfied off site. The Notice of Off-Site Affordability Covenants shall be in a form approved by the City Attorney.
c. 
Concurrently with the recordation of the Option Agreement on the offsite property, the applicant or owner shall execute and record on the off-site housing property Affordability Covenants in compliance with Section 9.64.130, which shall be recorded ahead of any monetary liens.
d. 
The applicant or owner shall provide a current title report evidencing that no monetary liens are recorded on title of the off-site property at the time the Option Agreement and Affordability Covenants are recorded. The Option Agreement and Affordability Covenants shall each provide that no monetary liens may be recorded on the off-site property until the building permit is issued for construction of the 100% affordable housing project.
e. 
If an applicant of a multiple-unit project located in the Coastal Zone timely satisfies the requirements above, the City shall execute a termination of the preexisting multiple-unit project's onsite affordable covenant agreement within 10 business days of issuance of the building permit for the 100% affordable housing project.
7. 
Unit Mix. Notwithstanding anything to the contrary herein, affordable units proposed for the off-site property shall not include studio units.
E. 
Substantial Rehabilitation of Units at an Off-Site Property in lieu of New Construction. Notwithstanding Section 9.64.040.B, and excluding any required affordable or rent controlled replacement units that may be required pursuant to Government Code Sections 66300.5 and 66300.6, an applicant for a multiple-unit project may satisfy the affordable housing obligation in Chapter 9.64 by substantial rehabilitation of affordable housing units at an off-site property, subject to the following conditions:
1. 
Substantially Rehabilitated. Units to be substantially rehabilitated at an off-site property must comply with the following provisions:
a. 
Prior to issuance of a building permit for a multiple-unit project, the City Council must determine at a public hearing that the units proposed for substantial rehabilitation at an off-site property must be at imminent risk of loss to the housing stock and the units proposed for substantial rehabilitation are unfit for human habitation due to the existence of at least four violations of the conditions listed in subdivisions (a) to (g), inclusive, of Section 17995.3 of the Health and Safety Code.
b. 
The applicant must commit to providing the displaced tenants with relocation assistance in accordance with Section 4.36.100 of the Santa Monica Municipal Code, provided that: (i) if the owner elects to satisfy the temporary relocation obligations by payment of the daily per diem, the total amount paid to the tenant shall be no less than four times the tenant's rent; and (ii) if the owner elects to satisfy their temporary relocation obligations by providing a comparable replacement unit, the owner shall additionally pay the tenant four times the tenant's monthly rent and shall reduce the tenant's monthly rent during relocation, if necessary, so that the rent does not exceed 30% of the tenant's income.
c. 
Any displaced tenant, regardless of income status for displaced tenants of rent-controlled units, must have the right to reoccupy the rehabilitated units.
d. 
Rehabilitated units must have long-term affordability requirements for lower income households, for a term of not less than 75 years.
e. 
As a condition to issuance of a certificate of occupancy for any multiunit property that will satisfy the affordable housing obligation in Chapter 9.64 by substantial rehabilitation of off-site units, and prior to initial occupancy after rehabilitation, the City's Building Official shall issue a certificate of occupancy indicating compliance with all applicable State and local Building Code and Health and Safety Code requirements for the substantially rehabilitated units.
2. 
Additional Requirements for Substantially Rehabilitated Units.
a. 
Prior to obtaining a building permit for a multiple-unit project, the applicant shall provide a rehabilitation plan which has been approved by the City's Housing Division Manager that includes the following information:
i. 
Documentation evidencing applicant's ownership or control of the rehabilitation property during the period of rehabilitation;
ii. 
A property assessment report performed by a licensed appraiser for the rehabilitation property, including all units proposed for substantial rehabilitation;
iii. 
Identification and location of the units that will be substantially rehabilitated;
iv. 
Scope and budget for substantial rehabilitation; and
v. 
Demonstrated sources and uses of financing required for substantial rehabilitation.
b. 
Applicant shall indicate the exact location of units that will be provided to very and lower income households.
c. 
Applicant shall comply with Chapter 8.100, Tenant Protection During Construction, as amended from time to time.
d. 
The applicant or owner shall provide a current title report evidencing that no monetary liens are recorded on title of the off-site property hosting the substantially rehabilitated units.
e. 
Execute and record on the property hosting the substantially rehabilitated units a 75-year deed restriction to ensure that the rehabilitated units are restricted for rental to qualifying lower income households at an affordable rent, in form approved by the City Attorney.
f. 
Notwithstanding anything to the contrary herein, substantially rehabilitated units shall not include studio units.
F. 
In Lieu Fee Option for Off-Site Housing (without land provided).
1. 
Notwithstanding Section 9.64.070, an applicant for a multiple-unit project may satisfy the affordable housing obligation in Chapter 9.64 by paying an in-lieu fee based on the following formula:
(Base Unit Fee per Square Foot) x (total square feet of the residential floor area in the multiple-unit project)
2. 
For purposes of this Section, the City's base unit fee per square foot shall be established pursuant to Section 9.64.070 by resolution of the City Council. Commencing on July 1, 2026, and on July 1st of each fiscal year thereafter, the City's base unit fee per square foot shall be adjusted based on changes in construction costs and land costs.
3. 
The affordable housing fee shall be paid prior to issuance of a building permit for any multiple-unit project utilizing Section 9.64.065.F.
4. 
The City shall deposit any payment made pursuant to this Section 9.64.065.F 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, substantial rehabilitation of existing affordable housing, a City-sponsored program of rental subsidies for lower income Santa Monica residents, and monitoring and evaluation of this affordable housing production program.
G. 
Local Incentive Density Bonus. Multiple-unit projects satisfying their affordable housing obligation in lieu of Chapter 9.64 in accordance with Section 9.64.065 shall be eligible for a local incentive of density bonuses, incentives and concessions, waivers and reductions of development standards, and reduced parking ratios equivalent to those set forth in Chapter 9.22, Density Bonus, as if the affordable units were provided on the site of the multiple-unit project. Further, as an additional local density bonus, any on-site affordable units that were formerly part of an approved multiple-unit project can convert to market-rate units in the revised multiple-unit project. Any off-site affordable housing project shall be eligible for density bonuses, incentives and concessions, waivers and reductions of development standards, and reduced parking ratios under State Density Bonus Law.
H. 
Calculation of Off-Site Affordable Units. The number of affordable units to be provided in the 100% affordable housing project shall be calculated as follows:
1. 
Eligible Housing Projects Entitled Without Additional Very Low or Moderate-Income Units to Obtain Additional Density Bonuses Pursuant to Government Code Section 65915(v). For housing projects previously entitled that do not propose additional moderate-income units to obtain additional density bonuses pursuant to Government Code Section 65915(v), any applicant utilizing the off-site options under this Section 9.64.065 shall provide no less than 15% of the base density number of units, prior to the award of any market rate density bonus units under State Density Bonus Law (California Government Code Section 65915 et seq.) and Chapter 9.22, Density Bonus within each multiple-unit project as:
a. 
Affordable deed-restricted units in an off-site 100% affordable housing project in accordance with subsection D;
b. 
Substantially rehabilitated deed-restricted units in accordance with subsection E; or
c. 
Equivalent in-lieu fee in accordance with subsection F.
By way of illustration, if the base density number of units (prior to the award of a market rate density bonus) is 100 units, then the applicant must provide 15 deed restricted units at the designated off-site property.
2. 
Eligible Housing Projects Entitled With Additional Proposed Density Bonuses Pursuant to Government Code Section 65915(v). For housing projects previously entitled with additional very low income or moderate-income units and proposed additional density bonuses pursuant to Government Code Section 65915(v), any applicant utilizing the off-site options under this Section 9.64.065 shall provide no less than the percentage of very low or moderate income units as required in the chart contained in Government Code Section 65915(2) as calculated against the base density.:
a. 
Affordable deed-restricted units in a 100% affordable housing project in accordance with subsection D;
b. 
Substantially rehabilitated deed-restricted units in accordance with subsection E; or
c. 
Equivalent in-lieu fee in accordance with subsection F.
By way of illustration, if the base density number of units (prior to the award of a market rate density bonus) is 100 units, and the applicant of a multiple-unit project has obtained approval of an additional 50% density bonus (for a total 100% density bonus) by providing additional Moderate Income units pursuant to Government Code Section 65915(v)(2), then the applicant must provide 30 deed restricted units at the designated off-site property.
(Added by Ord. No. 2846CCS, January 27, 2026)
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 five 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 six 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, except that the affordable housing fee for projects that have vested rights under State or local law shall be determined in accordance with those vested rights.
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, except that the affordable housing fee for projects that have vested rights under State or local law shall be determined in accordance with those vested rights.
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 upon issuance of certificate of occupancy or final inspection, whichever occurs last.
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 monies collected and interest accrued pursuant to this Chapter shall be committed within five 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 five-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; Ord. No. 2792CCS, 10/8/2024)
A. 
Definitions. As used in this Section:
"100% affordable housing project"
means a 100% affordable housing project as defined in Section 9.52.020.0050.
"Affordability covenants"
means 75-year affordability covenants that are included in a recorded deed restriction, in form approved by the City Attorney.
"Affordable housing provider"
means an affordable housing provider reasonably approved by the City.
"Applicant"
means the applicant, or its successors in interest, for a discretionary and ministerial City permit applicable to a multiple-unit project.
"At-risk covenants"
means covenants that are contained in a recorded deed restriction to restrict rental units for occupancy by lower income households at affordable rent for lower income households, where the covenants are set to expire in accordance with the terms of the deed restriction within five years from the date an owner or applicant files an application to use this Section 9.64.075.
"Building permit"
means a final building permit issued by the City's Building Official (excluding grading or early start construction permits).
"Chapter 6.96"
means Chapter 6.96 of the Santa Monica Municipal Code, in effect as of September 30, 2025.
"City Manager"
means the City Manager or his or her designee.
"Community Benefit Payment"
means the payment to the City by the owner or applicant in an amount equal to the amount of real estate transfer taxes owed to the City pursuant to Chapter 6.96 of the Santa Monica Municipal Code, in effect as of September 30, 2025.
"Gap financing amount"
means the amount of financing necessary to complete a 100% affordable housing project assuming that: (a) the off-site affordable project will obtain a 4% Federal Low-Income Housing Tax Credit and/or tax-exempt bond allocation; and (b) that there will be no land acquisition costs. The gap financing amount shall be $160,000, per off-site affordable unit to be constructed within the 100% affordable housing project. Commencing on July 1, 2026, and on July 1st of each fiscal year thereafter, the gap financing amount shall be adjusted by Council resolution based on changes in costs for building construction, as evidenced by the ENR Building Cost Index (BCI) for the Los Angeles region. The gap financing amount should be calculated from the effective date of the ordinance until deposited into escrow in accordance with Section 9.64.075.D.
"Measure GS Transfer"
means a transfer of the multiple-unit project and/or multiple-unit project property, or portion thereof, which is subject to taxation under the City's Third Tier Tax Rate, as defined in Chapter 6.96.
"Multiple-unit project"
means an eligible multiple-unit project pursuant to Section 9.64.075.D.
"Multiple-unit project property"
means the property on which a multiple-unit project will be built.
"Off-site property"
means a clean, uncontaminated property in the location specified in Section 9.64.060.E.
"Option"
means a purchase option for the off-site property that may be exercised by the City or an affordable housing provider, at the election of the City, for the purchase amount of $100.
"Option Agreement"
means a purchase option agreement, including escrow instructions upon exercise of the option, approved as to form by the City Attorney, and executed by the City or an affordable housing provider, at the election of the City, and the owner of the off-site property. The option agreement shall be recorded in the official records of Los Angeles County.
"Owner" or "applicant"
means the owner or applicant of the multiple-unit project.
"Performance Deed of Trust"
means a performance deed of trust recorded against the multiple-unit property to secure the Community Benefit Payment.
"Protected unit(s)"
means any of the following:
1. 
Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years.
2. 
Residential dwelling units that are or were subject to any form of rent or price control through a public entity's valid exercise of its police power within the past five years.
3. 
Residential dwelling units that are or were occupied by lower or very low-income households within the past five years.
4. 
Residential dwelling units that were withdrawn from rent or lease in accordance with California Government Code Section 7060 et seq., within the past 10 years.
"Rehabilitation property"
means a property proposed for substantial rehabilitation of units pursuant to Section 9.64.075.E.
"Right of First Refusal Agreement"
means an agreement that ensures the City has the priority to purchase the off-site property before a third-party prospective buyer can. Upon receiving an offer from third party, the owner must present this offer to the City, who can choose to pay the owner no more than fair market value or let it pass to the third party.
"Transfer"
means any transfer of beneficial ownership of a multiple-unit project and/or multiple-unit project property, or portions thereof, that would be subject to taxation under California Revenue and Taxation Code Section 11911(a) and is not exempt from taxation under Sections 11921 (instrument securing debt), 11923 (conveyances under reorganization or adjustment plans), or 11924 (conveyances under order of securities and exchange commission). The term "transfer" includes, without limitation, any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any State or territory, or political subdivision thereof, is acquiring title to a multiple-unit project and/or multiple-unit property.
"Uncontaminated property"
means a property free from hazardous substances, as defined under State and Federal law.
B. 
Eligible Multiple-Unit Projects. In order for applicants to use the provisions of this Section 9.64.075, each multiple-unit project shall contain six or more residential units; shall have obtained final approval of all required discretionary and ministerial City permits that have not expired, except for Architectural Review Board approval and post entitlement phase permits, as defined in Government Code Section 65913.3(j)(3) on or before August 12, 2025; and shall have submitted a complete application to use the provisions of this Section 9.64.075 after September 30, 2025; provided, however, that except as otherwise expressly provided in subsection D.5.b, herein, multiple-unit projects that have obtained a building permit, are under construction, or have been completed are not eligible. The applicant of an entitled multiple-unit property that meets the requirements of Section 9.64.075.B may also use the provisions of subsections D through G to satisfy the requirements of Section 9.64.060 for a project if the applicant obtains a new entitlement for the same multiple-unit property prior to December 31, 2026.
C. 
Exclusions. Nothing in this Section 9.64.075 shall conflict with or supersede State or local requirements for on-site replacement of protected units, including, but not limited to, those set forth in the Housing Crisis Act of 2019, as amended from time to time, Government Code Section 66300 et seq., and Santa Monica Municipal Code Chapter 9.34, Residential Unit Replacement Requirements.
D. 
Alternative Off-Site Option. Notwithstanding Section 9.64.040.B, an applicant for a multiple-unit project may satisfy the affordable housing obligation in Chapter 9.64 by providing affordable housing units in a 100% affordable housing project on an off-site property in accordance with this section if the applicant complies with the following requirements:
1. 
The requirements of subsections B through E, and I of Section 9.64.060 shall apply and be met by the applicant.
2. 
The off-site property shall also meet the following requirements:
a. 
The off-site property shall not have any lien or encumbrance on title that would prevent the recordation of an option agreement and affordability covenants in first priority position on title in favor of the City.
b. 
The off-site property shall be owned in whole or in part and operated by an affordable housing provider reasonably approved by the City for the life of the 100% affordable housing project.
3. 
Requirements for Affordable Units. The affordable units in the 100% affordable housing project shall be rental units, unless modified pursuant to Section 9.64.075.H. The number of off-site affordable units in the 100% affordable housing project shall be calculated as set forth in Section 9.64.075.I.
4. 
Annual Report. The affordable housing provider operating the 100% affordable housing project shall submit an annual report pursuant to the Affordability Covenants recorded on the off-site affordable housing property as discussed in Section 9.64.075.D.
5. 
Additional Requirements for Off-Site Units.
a. 
The applicant shall satisfy all the following requirements prior to and as a condition of issuance of a building permit for any multiple-unit project:
i. 
Identify the location of the off-site property and identify each multiple-unit project that will locate its required affordable housing units in the 100% affordable housing project to be constructed on the off-site property, and the number, bedroom mix, size, and affordability level of units in the 100% affordable housing project that will be attributed to each multiple-unit project. Designated units in the 100% affordable housing project shall not be counted more than once to satisfy the required affordable housing units required for each multiple-unit project.
ii. 
Identify and enter into an agreement with an affordable housing provider that will own, in whole or in part, and operate the 100% affordable housing project.
iii. 
The applicant shall procure a Phase 1 Environmental Site Assessment (ESA) of the off-site property, and a Phase II ESA of the offsite property, if necessary, conducted by a City-approved experienced environmental professional, to determine the potential presence on or under the off-site property of hazardous waste, as defined under State and Federal laws. If contaminants are detected in soil at or above regulatory levels, then the results of the soil sampling shall be shared with the City reviewed and acted upon by the appropriate regional, state, or local regulatory agencies as needed. If remediation is necessary, a No Further Action letter or similar documentation indicating case closure shall be obtained under the appropriate oversight agency prior to project occupancy. City has the right in its reasonable discretion to reject any off-site property that indicates the potential presence of hazardous waste and/or require the applicant to execute an environmental indemnity agreement in form approved by the City Attorney. In the event that the City rejects the off-site property due to the potential presence of hazardous waste, applicant shall have the opportunity to propose an alternate off-site location, subject to the same requirements under Section 9.64.075.D or proceed with alternative options under Section 9.64.075.E, F and G.
b. 
The applicant of a multiple-unit project located in the Coastal Zone with an approved Coastal Development Permit requiring an on-site affordability covenant that has already been recorded against the multiple-unit project property may be eligible to relocate the affordable units to an off-site property pursuant to this Section 9.64.075 any time: (1) after the California Coastal Commission has approved the relocation of the affordable units to an off-site property without any other material changes to the terms and/or conditions of the Coastal Development Permit; and (2) prior to issuance of a certificate of occupancy for the multiple-unit project; provided, however, that all other requirements under Section 9.64.075.D are satisfied.
c. 
Prior to, and as a condition of, issuance of the first building permit issued for any multiple-unit project, or issuance of the first certificate of occupancy for a multiple-unit project located in the Coastal Zone, the applicant shall place the gap financing amount for that multiple-unit project in an interest-bearing escrow account and enter into a joint escrow agreement executed by the City or an affordable housing provider, at the election of the City, and the applicant, with instructions that provide as follows:
i. 
The gap financing amount shall be distributed to the City or an affordable housing provider at no cost to either the City or affordable housing provider, at the election of the City, if construction of the off-site affordable housing project does not commence within: (a) 48 months following the issuance of the first building permit for any multiple-unit project not located in the Coastal Zone; or (b) 18 months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment that allows a multiple-unit project in the Coastal Zone to locate its affordable units on an off-site property; provided, that the City may grant a 12-month extension by making a written finding of good cause prior to the expiration of the initial 48-month term.
ii. 
If construction of the 100% affordable housing project does commence within the applicable 48 months following the issuance of the first building permit for a multiple-unit project, or 18 months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment that allows a multiple-unit project in the Coastal Zone to locate its affordable units on an off-site property; or within the 12-month extension period if an extension is granted by the City, then the gap financing amount shall be returned to the applicant upon applicant's deposit into the joint escrow account of a ready-to-issue building permit letter from the City to construct the 100% affordable housing project on the off-site property. Following receipt by the escrow officer of the ready-to issue building permit letter, the gap financing amount shall be disbursed to the applicant.
iii. 
For purposes of this subsection D.5.c.i and c.ii, "commence" means that the project has received a building permit and construction activities begin on the site.
6. 
Prior to and as a condition of issuance of any building permit(s) for the first multiple-unit project(s), or prior to and as a condition of issuance of any certificate of occupancy for a multiple-unit project in the Coastal Zone, the applicant shall complete the following steps:
a. 
Execute and record on the off-site property an Option Agreement that authorizes the City or an affordable housing provider, at the election of the City, to exercise the Option in the event that construction of the 100% affordable housing project does not commence: (a) within 48 months following the issuance of the first building permit for any multiple-unit project not located in the Coastal Zone that is locating its affordable housing units in the off-site affordable housing project; or (b) 18 months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment to allow a multiple-unit project in the Coastal Zone to locate its affordable units in the off-site affordable housing project, or within the 12-month extension period if an extension is granted by the City. Upon exercise of the Option and as such process is provided in the Option Agreement, the fee simple interest in the property shall transfer to the City only if construction of the off-site 100% affordable housing project does not commence; (a) within 48 months following the issuance of the first building permit for any multiple-unit project not located in the Coastal Zone that is locating its affordable housing units in the off-site affordable housing project; or (b) 18 months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment to allow a multiple-unit project in the Coastal Zone to locate its affordable units in the off-site affordable housing project, unless the City grants a 12-month extension for good cause in writing prior to the expiration of the 48-month term. If construction of the off-site 100% affordable housing project does commence within the applicable 48-month term, or within the 12-month extension period if an extension is granted by the City, then the Option Agreement shall automatically become null and void and shall be removed from title upon issuance of a certificate of occupancy for the 100% affordable housing project. For purposes of this subsection D.6.a, "commence" has the meaning given in subsection D.5.c.iii.
b. 
Concurrently with the recordation of the Option Agreement on the offsite property, the applicant or owner shall execute and record on each multiple-unit property a Notice of Off-Site Affordability Covenants that discloses the location of the off-site property and the description of the Affordability Covenants to be recorded on the off-site property. The Notice of Off-Site Affordability Covenants shall not impose any duty on the applicant or owner of the multiple-unit property to comply with any affordability requirements on-site and shall merely serve as notice that the affordability requirements of Chapter 9.64 are to be satisfied off site. The Notice of Off-Site Affordability Covenants shall be in a form approved by the City Attorney. Concurrently with the recordation of the Option Agreement on the off-site property, the applicant or owner shall execute and record on the off-site housing property Affordability Covenants in compliance with Section 9.64.130, which shall be recorded ahead of any monetary liens. If the applicant or owner has recorded affordability covenants on the multiple unit property, and if the owner desires to utilize the provisions of Section 9.64.075.D, then the applicant or owner must request release of the on-site affordability covenants on the multiple unit property prior to issuance of a building permit on the multiple unit property and such covenants shall be released by the City concurrently with the recording of the Affordability Covenants on the off-site housing property, provided that the applicant or owner has complied with all other conditions set forth in Section 9.64.075.B and D. Concurrently with the recordation of the Affordability Covenants on the off-site property, the applicant or owner shall execute and record on the off-site housing property a Right of First Refusal Agreement in form approved by the City Attorney, which have a concurrent term with the Affordability Covenants and shall be recorded ahead of any monetary liens; provided, however, that If, at any time during the term of the Right of First Refusal Agreement, the owner proposes to refinance any of the existing indebtedness on the off-site property or intends to borrow additional funds after commencement of the term of the Right of First Refusal Agreement, the City Manager may approve subordination of the Right of First Refusal to the new secured (re)financing. The City shall not unreasonably withhold its approval if: (i) the terms and conditions of the additional loan or refinanced loan provide the City with such security and remedies as the City deems adequate in the City's sole discretion; (ii) the additional loan or refinanced loan is consistent with the City's objectives to preserve the City's affordable housing stock; (iii) the owner is not taking cash out of the equity of the off-site property for any purposes other than effecting necessary structural and equipment replacements and improvements of a capital nature for the property; and (iv) the additional indebtedness will not impair the security of the Affordability Covenants and/or Right of First Refusal.
c. 
The applicant or owner shall provide a current title report evidencing that no monetary liens are recorded on title of the off-site property at the time the Option Agreement, Affordability Covenants, and Right of First Refusal Agreement are recorded. The Option Agreement, Affordability Covenants, and Right of First Refusal Agreement shall each provide that no monetary liens may be recorded on the off-site property until the building permit is issued for construction of the 100% affordable housing project.
d. 
If an applicant for a multiple-unit project located in the Coastal Zone timely satisfies the requirements above, the City shall execute a termination of the preexisting multiple-unit project's on-site affordable covenant agreement within 10 business days of issuance of the building permit for the 100% affordable housing project.
e. 
Prior and as a condition to obtaining a building permit for any multiple-unit project, owner or applicant shall submit a complete entitlement application for the 100% affordable housing project.
f. 
Prior to and as a condition to obtaining a certificate of occupancy for any multiple-unit project, owner or applicant shall have submitted a complete set of construction plans for the 100% affordable housing project, as reasonably determined by the City's Building Official.
g. 
Notwithstanding any other provisions in this Section to the contrary, City may exercise the Option to purchase the off-site property in accordance with the Option Agreement before issuance of the certificate of occupancy for any multiple-unit project if the owner or applicant does not submit a complete set of construction plans for the off-site property within 60 days of applicant's or owner's request for issuance of a certificate of occupancy for any multiple-unit project.
7. 
Unit Mix. Notwithstanding anything to the contrary herein, affordable units proposed for the off-site property shall not include studio units.
E. 
Substantial Rehabilitation of Units at an Off-Site Property In Lieu of New Construction. Notwithstanding Section 9.64.040(B), and excluding any required affordable or rent controlled replacement units that may be required pursuant to Government Code Sections 66300.5 and 66300.6, an applicant for a multiple-unit project may satisfy the affordable housing obligation in Chapter 9.64 by substantial rehabilitation of affordable housing units at an off-site property, subject to the following conditions:
1. 
Substantially Rehabilitated. Units to be substantially rehabilitated at an off-site property must comply with the following provisions:
a. 
Prior to issuance of a building permit for a multiple-unit project, the City Council must determine at a public hearing that the units proposed for substantial rehabilitation at an off-site property must be at imminent risk of loss to the housing stock and the units proposed for substantial rehabilitation are unfit for human habitation due to the existence of at least four violations of the conditions listed in subdivisions (a) to (g), inclusive, of Section 17995.3 of the Health and Safety Code.
b. 
The applicant must commit to providing the displaced tenants with relocation assistance in accordance with Section 4.36.100 of the Santa Monica Municipal Code, provided that: (i) if the owner elects to satisfy the temporary relocation obligations by payment of the daily per diem, the total amount paid to the tenant shall be no less than four times the tenant's rent; and (ii) if the owner elects to satisfy their temporary relocation obligations by providing a comparable replacement unit, the owner shall additionally pay the tenant four times the tenant's monthly rent and shall reduce the tenant's monthly rent during relocation, if necessary, so that the rent does not exceed 30% of the tenant's income.
c. 
Any displaced tenant, regardless of income status for displaced tenants of rent-controlled units, must have the right to reoccupy the rehabilitated units.
d. 
Rehabilitated units must have long-term affordability requirements for lower income households, for a term of not less than 75 years.
e. 
As a condition to issuance of a certificate of occupancy for any multiunit property that will satisfy the affordable housing obligation in Chapter 9.64 by substantial rehabilitation of off-site units, and prior to initial occupancy after rehabilitation, the City's Building Official shall issue a certificate of occupancy indicating compliance with all applicable State and local Building Code and Health and Safety Code requirements for the substantially rehabilitated units.
2. 
Additional Requirements for Substantially Rehabilitated Units.
a. 
Prior to obtaining a building permit for a multiple-unit project, the applicant shall provide a rehabilitation plan which has been approved by the City's Housing Division Manager that includes the following information:
i. 
Documentation evidencing applicant's ownership or control of the rehabilitation property during the period of rehabilitation;
ii. 
A property assessment report performed by a licensed appraiser for the rehabilitation property, including all units proposed for substantial rehabilitation;
iii. 
Identification and location of the units that will be substantially rehabilitated;
iv. 
Scope and budget for substantial rehabilitation; and
v. 
Demonstrated sources and uses of financing required for substantial rehabilitation.
b. 
Applicant shall indicate the exact location of units that will be provided to very and lower income households.
c. 
Applicant shall comply with Chapter 8.100, Tenant Protection During Construction, as amended from time to time.
d. 
The applicant or owner shall provide a current title report evidencing that no monetary liens are recorded on title of the off-site property hosting the substantially rehabilitated units.
e. 
Execute and record on the property hosting the substantially rehabilitated units a 75-year deed restriction to ensure that the rehabilitated units are restricted for rental to qualifying lower income households at an affordable rent, in form approved by the City Attorney.
f. 
Notwithstanding anything to the contrary herein, substantially rehabilitated units shall not include studio units.
F. 
In Lieu Fee Option for Off-Site Housing (without land provided).
1. 
Notwithstanding Section 9.64.070, an applicant for a multiple-unit project may satisfy the affordable housing obligation in Chapter 9.64 by paying an in-lieu fee based on the following formula:
(Base Unit Fee per Square Foot) x (total square feet of the residential floor area in the multiple-unit project)
2. 
For purposes of this Section, the City's base unit fee per square foot shall be established pursuant to Section 9.64.070 by resolution of the City Council. Commencing on July 1, 2026, and on July 1st of each fiscal year thereafter, the City's base unit fee per square foot shall be adjusted based on changes in construction costs and land costs.
3. 
The affordable housing fee shall be paid prior to issuance of a building permit for any multiple-unit project utilizing Section 9.64.075.F.
4. 
The City shall deposit any payment made pursuant to this Section 9.64.075.F 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, substantial rehabilitation of existing affordable housing, a City-sponsored program of rental subsidies for lower income Santa Monica residents, and monitoring and evaluation of this affordable housing production program.
G. 
Purchase of At-Risk Covenants. Notwithstanding Section 9.64.040.B, and excluding any required affordable or rent controlled replacement units that may be required pursuant to Government Code Sections 66300.5 and 66300.6, an owner or applicant for a multiple-unit project may satisfy the affordable housing obligation in Chapter 9.64 by purchasing at-risk covenants on an off-site property, subject to the following conditions:
1. 
The term of the at-risk covenants shall be extended by recording of new Affordability Covenants in compliance with Section 9.64.130 with a term of 75 years from the issuance of the building permit issued for any multiple-unit project to be issued a building permit.
2. 
The affordable units shall be rental units. The number of affordable units shall be calculated as set forth in Section 9.64.075.I.
3. 
The applicant's or owner's use of this Section 9.64.075.G shall be subject to City Manager's prior written approval, based upon the City's assessment that the structural condition of the property City supports the purchase of at-risk covenants and the extension of the affordability period for 75 years. In the event that the City determines the structural condition of the proposed off-site property is not feasible to support the useful life of the property for the extended covenant period of 75 years, the owner or applicant may not use this Section 9.64.075.G.
a. 
The owner of the property shall submit an annual report pursuant to the new Affordability Covenants recorded on the off-site property as discussed in Section 9.64.075.D.
H. 
Local Incentive Density Bonus. Multiple-unit projects satisfying their affordable housing obligation in lieu of Chapter 9.64 in accordance with Section 9.64.075 shall be eligible for a local incentive of density bonuses, incentives and concessions, waivers and reductions of development standards, and reduced parking ratios equivalent to those set forth in Chapter 9.22, Density Bonus, as if the affordable units were provided on the site of the multiple-unit project. Further, as an additional local density bonus, any on-site affordable units that were formerly part of an approved multiple-unit project can convert to market-rate units in the revised multiple-unit project. Any off-site affordable housing project shall be eligible for density bonuses, incentives and concessions, waivers and reductions of development standards, and reduced parking ratios under State Density Bonus Law.
I. 
Calculation of Off-Site Affordable Units. The number of affordable units to be provided in the 100% affordable housing project shall be calculated as follows:
1. 
Eligible Housing Projects Entitled Without Additional Very Low or Moderate-Income Units to Obtain Additional Density Bonuses Pursuant to Government Code Section 65915(v). For housing projects previously entitled that do not propose additional moderate-income units to obtain additional density bonuses pursuant to Government Code Section 65915(v), any applicant utilizing the off-site options under this Section 9.64.075 shall provide no less than 15% of the base density number of units, prior to the award of any market rate density bonus units under State Density Bonus Law (California Government Code Section 65915 et seq.) and Chapter 9.22, Density Bonus, within each multiple-unit project as:
a. 
Affordable deed-restricted units in an offsite 100% affordable housing project in accordance with subsection D;
b. 
Substantially rehabilitated deed-restricted units in accordance with subsection E;
c. 
Equivalent in-lieu fee in accordance with subsection F; or
d. 
Purchase of at-risk covenants in accordance with subsection G.
By way of illustration, if the base density number of units (prior to the award of a market rate density bonus) is 100 units, then the applicant must provide 15 deed-restricted units at the designated off-site property.
2. 
Eligible Housing Projects Entitled With Additional Proposed Density Bonuses Pursuant to Government Code Section 65915(v). For housing projects previously entitled with additional very low income or moderate-income units and proposed additional density bonuses pursuant to Government Code Section 65915(v), any applicant utilizing the off-site options under this Section 9.64.075 shall provide no less than the percentage of very low or moderate-income units as required in the chart contained in Government Code Section 65915(2) as calculated against the base density:
a. 
Affordable deed-restricted units in a 100% affordable housing project in accordance with subsection D;
b. 
Substantially rehabilitated deed-restricted units in accordance with subsection E;
c. 
Equivalent in-lieu fee in accordance with subsection F; or
d. 
Purchase of at-risk covenants in accordance with subsection G.
By way of illustration, if the base density number of units (prior to the award of a market rate density bonus) is 100 units, and the applicant of a multiple-unit project has obtained approval of an additional 50% density bonus (for a total 100% density bonus) by providing additional Moderate Income units pursuant to Government Code Section 65915(v)(2), then the applicant must provide 30 deed-restricted units at the designated off-site property.
J. 
Administrative Fee. An administrative fee shall be assessed and paid to the City by the owner or applicant at the time of issuance of the building permit for any multiple-unit project. The administrative fee shall be imposed to cover cost of administering and implementing the requirements of this Section and shall be set by City Council resolution.
K. 
Community Benefit Payment. In consideration for the local density bonus granted herein, solely in connection with the first transfer of a multiple-unit project and/or multiple-unit project property, or portion thereof, if such first transfer does not constitute a Measure GS Transfer for any reason, the owner or applicant shall pay the Community Benefit Payment to City in the amount of: 5.0% of the amount of consideration or value paid for the first transfer of the multiple-unit project and/or multiple-unit project property, or portion thereof; or, if the City's Third Tier Tax Rate, as defined in Chapter 6.96, is reduced for any reason (e.g., by ordinance modification or repeal, ballot initiative, or State law), subsequent to the effective date of the ordinance adopting Section 9.64.075, in addition to paying the reduced amount, the owner or applicant shall pay the Community Benefit Payment to City in the amount of the difference between 5.0% of the amount of consideration or value paid for the first transfer of the multiple-unit project and/or multiple-unit project property, or portion thereof and the reduced amount paid. For illustrative purposes only, if the City's Third Tier Tax Rate is reduced to 2.5%, the owner or applicant shall pay 5.0% equal to the 2.5% reduced amount plus 2.5% as the difference between 5.0% and 2.5%.
1. 
No Change to Applicability of Chapter 6.96. Notwithstanding anything to the contrary herein, nothing in this Section 9.64.075 shall be interpreted to alter, modify, negate, reduce or void the applicability of Chapter 6.96 to any first or subsequent transfers of the multiple-unit project and/or multiple-unit project property, or portion thereof.
2. 
Security for the Community Benefit Payment. As a condition to obtaining a building permit for any multiple-unit project, the applicant or owner shall execute and record a Performance Deed of Trust on the multiple-unit project to secure the payment of the Community Benefit Payment to the City. Alternatively, in lieu of a Performance Deed of Trust, the City Manager may accept equivalent security in the form of an irrevocable standby letter of credit issued by an FDIC insured financial institution in form approved by the City Attorney.
3. 
Timing for Community Benefit Payment. The Community Benefit Payment shall be due upon first transfer of a multiple-unit project and/or a multiple-unit project property from the owner or applicant to a third-party, as set forth, below:
a. 
If Chapter 6.96 is in effect at the time of the transfer, the Community Benefit Payment shall be deemed as paid and the Performance Deed of Trust shall be reconveyed or, if accepted as an alternative to the Performance Deed of Trust, the irrevocable standby letter of credit shall be released, concurrently with the transfer through escrow provided that the owner or applicant provides no less than 30 days written notice of the transfer to the City.
b. 
If Chapter 6.96 is not in effect at the time of the transfer for any reason (including partial reduction), the owner or applicant shall be required to pay the Community Benefit Payment directly to the City no later than the date of the transfer and the Performance Deed of Trust shall be reconveyed or, if accepted as an alternative to the Performance Deed of Trust, the irrevocable standby letter of credit shall be released, concurrently with the transfer through escrow provided that the owner or applicant provides no less than 30 days' written notice of the transfer to the City.
c. 
If Chapter 6.96 is not in effect at the time of the transfer for any reason (including partial reduction) and Community Benefit Payment has not been paid prior to the transfer, the City may exercise its remedies under the Performance Deed of Trust, or, alternatively, draw down on the irrevocable standby letter of credit, to recover the Community Benefit Payment, plus all City costs to recover the Community Benefit Payment, including reasonable attorneys' fees, in addition to any other remedies allowed by law.
(Added by Ord. No. 2846CCS, January 27, 2026)
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)