HR&A Advisors, Inc. Santa Monica AHPP 2021 Update | 1
R1 DEVELOPMENT STANDARDS ANALYSIS
CITY OF SANTA MONICA
AFFORDABLE HOUSING PRODUCTION PROGRAM
2020-2021 UPDATE
JUNE 2021
HR&A Advisors, Inc. Santa Monica AHPP 2021 Update | 2 DRAFT RESULTS
ANALYTIC APPROACH
HR&A, with support from two design firms, tested
the feasibility of 1) permitting multifamily units
within existing R1 development standards, and 2)
requiring an inclusionary unit with these
multifamily buildings.
Danielian Associates and John Kaliski Architects
developed general specifications for the physical
parameters of 2 through 6-unit prototypes,
aiming to respect existing R1 and/or R2
standards, but noting where flexibility would be
needed.
Prototype details, feasibility findings and key
considerations are included in the following slides.
N. of
Montana Sunset Park
Avg.
Underutilized
R1 Land Sale
Price
$2,900,000
($343/SF)
$1,715,000
($270/SF)
Avg. Condo/
Townhouse
Sale Price
$2,080,000
($1,190/SF)
$1,255,000
($955/SF)
Total
Development
Cost (excl.
Land)
$550/SF $455/SF
Average Unit
Size 1,775 SF 1,350 SF
HR&A Advisors, Inc. Santa Monica AHPP 2021 Update | 3 DRAFT RESULTS FEASIBILITY IMPLICATIONS*
* Based on private developer Profit Margin (12.5%+ = Feasible) MISSING MIDDLE HOUSING | 2 Units within R1 Standards
PROS
• Maintains existing standards
• No costly subterranean parking
CONS
• Not feasible, even for 100%
market rate
• Cannot support an inclusionary
unit
100% Market 1 MI Unit 1 LI Unit 1 VLI Unit 1 ELI Unit
N. of Montana -11% N/A (Market Rate not Feasible)
Sunset Park -26% N/A (Market Rate not Feasible)
HR&A | JKA | Danielian
HR&A Advisors, Inc. Santa Monica AHPP 2021 Update | 4 DRAFT RESULTS FEASIBILITY IMPLICATIONS*
* Based on private developer Profit Margin (12.5%+ = Feasible) MISSING MIDDLE HOUSING | 3 Units within R1 Standards
100% Market 1 MI Unit 1 LI Unit 1 VLI Unit 1 ELI Unit
N. of Montana -12% N/A (Market Rate not Feasible)
Sunset Park -26% N/A (Market Rate not Feasible)
PROS
• Maintains existing R1
zoning standards
• No costly subterranean parking
CONS
• Requires below-market unit
sizes
• Not feasible, even for 100%
market rate
• Cannot support an inclusionary
unit
HR&A | JKA | Danielian
HR&A Advisors, Inc. Santa Monica AHPP 2021 Update | 5 DRAFT RESULTS MISSING MIDDLE HOUSING | 3 Units w/ flexibility to R1 Standards 100% Market 1 MI Unit 1 LI Unit 1 VLI Unit 1 ELI Unit
N. of Montana 11% -24.7% N/A (Mod Income not Feasible)
Sunset Park -3% N/A (Market Rate not Feasible)
PROS
• Larger units may support
feasibility North of Montana
• Maintains height limits R-1
standards, but not lot coverage
CONS
• Costly subterranean parking
• Cannot support an inclusionary
unit
• May not be feasible South of
the 10 Fwy. (e.g., Sunset Park)
HR&A | JKA | Danielian
FEASIBILITY IMPLICATIONS*
* Based on private developer Profit Margin (12.5%+ = Feasible) HR&A Advisors, Inc. Santa Monica AHPP 2021 Update | 6 DRAFT RESULTS MISSING MIDDLE HOUSING | 3 Units w/ flexibility to R1 Standards 100% Market 1 MI Unit 1 LI Unit 1 VLI Unit 1 ELI Unit
N. of Montana 15% -19.5% N/A (Mod Income not Feasible)
Sunset Park 2.1% N/A (Market Rate not Feasible)
PROS
• Larger units may support
feasibility North of Montana
• No costly subterranean parking
CONS
• Requires adjustments to R1
height limits for part of parcel
• Cannot support an inclusionary
unit
• May not be feasible South of
the 10 Fwy. (e.g., Sunset Park)
HR&A | JKA | Danielian
FEASIBILITY IMPLICATIONS*
* Based on private developer Profit Margin (12.5%+ = Feasible) HR&A Advisors, Inc. Santa Monica AHPP 2021 Update | 7 DRAFT RESULTS PROS
• Feasible for market rate units
across the City, as
demonstrated by R2
construction
CONS
• Would require major
modification to existing R1
standards
• Cannot support an inclusionary
unit
100% Market 1 MI Unit 1 LI Unit 1 VLI Unit 1 ELI Unit
N. of Montana 28% 10% 7% 7% 6%
Sunset Park 16% -4.2% N/A (Mod Income not Feasible)
HR&A | JKA | Danielian
FEASIBILITY IMPLICATIONS*
* Based on private developer Profit Margin (12.5%+ = Feasible) INCLUSIONARY HOUSING | 4 Units w/ flexibility to R2 Standards (7,500 SF Lot)
HR&A Advisors, Inc. Santa Monica AHPP 2021 Update | 8 DRAFT RESULTS INCLUSIONARY HOUSING | 4 Units w/ flexibility to R2 Standards (6,750 SF Lot)
100% Market 1 MI Unit 1 LI Unit 1 VLI Unit 1 ELI Unit
N. of Montana 28% 10% 7% 7% 6%
Sunset Park 16% -4.2% N/A (Mod Income not Feasible)
PROS
• Feasible for market rate units
across the City, as
demonstrated by R2
construction
CONS
• Would require major
modification to existing R1
standards
• Cannot support an inclusionary
unit
HR&A | JKA | Danielian
FEASIBILITY IMPLICATIONS*
* Based on private developer Profit Margin (12.5%+ = Feasible) HR&A Advisors, Inc. Santa Monica AHPP 2021 Update | 9 DRAFT RESULTS 100% Market 1 MI Unit 1 LI Unit 1 VLI Unit 1 ELI Unit
N. of Montana 31% 18% 16% 15% 15%
Sunset Park 19% 5% 2% 1% -1%
PROS
• Feasible for market rate units
across the City
• May support inclusionary unit in
stronger N. of Montana market
areas (or potentially Citywide
with smaller MI inclusionary
unit)
CONS
• Would require modification to
existing R2 standards
• Would require additional
height, at least for part of lot
• Cannot support an inclusionary
unit in most cases
HR&A | JKA | Danielian
INCLUSIONARY HOUSING | 5 Units w/ flexibility to R2 Standards (7,500 SF Lot)
FEASIBILITY IMPLICATIONS*
* Based on private developer Profit Margin (12.5%+ = Feasible) HR&A Advisors, Inc. Santa Monica AHPP 2021 Update | 10 DRAFT RESULTS 100% Market 1 MI Unit 1 LI Unit 1 VLI Unit 1 ELI Unit
N. of Montana 36% 28% 26% 26% 25%
Sunset Park 25% 17% 14% 13% 11%
PROS
• Feasible for market rate units
across the City
• Would support an inclusionary
unit across the City
CONS
• Would require substantial
modification to existing R2
standards, including additional
height
HR&A | JKA | Danielian
INCLUSIONARY HOUSING | 6 Units w/ flexibility to R2 Standards (7,500 SF Lot)
FEASIBILITY IMPLICATIONS*
* Based on private developer Profit Margin (12.5%+ = Feasible) HR&A Advisors, Inc. Santa Monica AHPP 2021 Update | 11 DRAFT RESULTS INCLUSIONARY HOUSING | 6 Units w/ flexibility to R2 Standards (6,750 SF Lot)
HR&A | JKA | Danielian
PROS
• Feasible for market rate units
across the City
• Would support an inclusionary
unit across the City
CONS
• Would require substantial
modification to existing R2
standards, including additional
100% Market 1 MI Unit 1 LI Unit 1 VLI Unit 1 ELI Unit height N. of Montana 36% 28% 26% 26% 25%
Sunset Park 25% 17% 14% 13% 11%
FEASIBILITY IMPLICATIONS*
* Based on private developer Profit Margin (12.5%+ = Feasible)