City Council
Report
City Council Meeting: April 12, 2022
Agenda Item: 7.A
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To: Mayor and City Council
From: David Martin, Director, Administration
Subject: Introduction and Adoption of an Emergency Interim Zoning Ordinance to Extend Interim Zoning Regulations Amending Santa Monica Municipal Code Chapter 9.39 and Section 9.40.020 to Increase Thresholds for Review of One Hundred Percent Affordable Housing Projects and Certain Tier 2 Housing Projects Subject to the Housing Accountability Act by Administrative Approval Recommended Action
Staff recommends that the City Council introduce and adopt an Emergency Interim Zoning Ordinance to extend interim regulations established by Emergency Interim Zoning Ordinance Number 2633 (CCS) and amended and extended by Emergency Interim Zoning Ordinance Numbers 2645 and 2692 (CCS) to increase thresholds for review of one hundred percent affordable housing projects and certain Tier 2 housing projects subject to the Housing Accountability Act by Administrative Approval.
Summary
On January 25, 2022, Council adopted Interim Zoning Ordinance 2692 (“IZO”) extending interim procedures authorizing an administrative process with no public hearing for 100% affordable housing projects and Tier 2 housing projects compliant with the Housing Accountability Act (“HAA”) on parcels of 43,560 square feet (1 acre) or less that meet all objective general plan, zoning, and subdivision standards and criteria in effect at the time the project application is deemed complete.
Supporting housing production, particularly affordable housing, has long been a core policy focus for the City and is embedded in the City’s adopted land use plans including the 2010 Land Use and Circulation Element (LUCE), 2013 Bergamot Area Plan (“Bergamot Plan”), and 2017 Downtown Community Plan (“Downtown Plan”). These 2 of 5
plans have been implemented through the 2015 Zoning Ordinance Update and subsequent amendments. The most recently adopted 6th Cycle Housing Element was transmitted to California Department of Housing and Community Development (“HCD”) on November 10, 2021. The adopted Housing Element demonstrated that Santa Monica can accommodate the Regional Housing Needs Allocation (RHNA) of 8,895 units (of which 69 percent must be affordable) for the 2021-2029 Housing Element cycle. The City received comments from HCD on February 8, 2022 with a determination that the City’s adopted Housing Element needs further revision and therefore, the City is currently determined to be out of compliance.
As a result, staff proposes to extend the IZO until March 31, 2023 to provide the time necessary to accomplish the entire Housing Element certification and initial phase of zoning changes. With the economic challenges brought by the COVID-19 pandemic, there is even more need to ensure that affordable housing and housing production continues to be supported through a streamlined process. Within the context of California’s housing crisis and the continued urgent need to produce affordable housing, staff recommends extension of the IZO until March 31, 2023 to continue to support housing production while providing the time necessary to accomplish the entire Housing Element certification and initial phase of zoning changes.
Background
Table 1: Past Council Actions
Meeting Date Description
July 6, 2010
(Attachment B)
Adoption of Land Use and Circulation Element
September 11, 2013
(Attachment C)
Adoption of Bergamot Area Plan
June 23, 2015
(Attachment D)
Adoption of Zoning Ordinance Update
July 25, 2017
(Attachment E)
Adoption of Downtown Community Plan
December 10, 2019
(Attachment F)
Council study session on housing policy
March 10, 2020
(Attachment G)
Adoption of Emergency Interim Zoning Ordinance
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Meeting Date Description
August 25, 2020
(Attachment H)
Extension of Emergency Interim Zoning Ordinance
January 25, 2022
(Attachment I)
Extension of Emergency Interim Zoning Ordinance
On December 10, 2019, Council held a study session regarding housing policy in light of State and Regional directives regarding housing production. Council directed staff to proceed with efforts to support housing production, particularly 100% affordable housing.
The IZO was first introduced and adopted on March 10, 2020. The IZO was extended on August 25, 2020. Also on August 25, 2020, the Council introduced for first reading an ordinance to establish residential leasing regulations (SMMC Chapter 6.22), which were adopted on September 8, 2020 and subsequently amended on October 27, 2020, primarily to allow for certain exceptions and to expand the documentation that may be used to demonstrate primary residence. On January 25, 2022, Council extended the IZO with amendments to remove the deed restriction requirement to avoid inconsistency with Chapter 6.22 and to limit the applicability of the Administrative Approval process to housing projects on parcels of 43,560 square feet or less.
Discussion
The Housing Accountability Act (California Government Code Section 65589.5) (“HAA”) was enacted by the State Legislature in 1982 and prohibits cities from denying or placing conditions on housing development projects to reduce the project’s density if the housing development project complies with a city’s “objective” general plan, zoning, subdivision, and design review standards (e.g., height, floor-area-ratio (FAR), density).
The HAA defines “housing development project” as: (a) residential units only; (b) mixeduse developments consisting of residential and nonresidential uses with at least twothirds of the square footage designated for residential use; and (c) transitional housing or supportive housing. The stated intent of the HAA is to ensure that local governments do not reject or make infeasible housing development projects that contribute to meeting their Regional Housing Needs Allocation (RHNA). The RHNA is a state- 4 of 5
mandated process that determines the amount of future housing growth each city and county must plan for in its Housing Element.
Given the very limited discretion afforded to cities for projects qualifying for protection under the HAA, and the need to create better housing affordability in Santa Monica, on March 10, 2020, the City Council adopted an emergency Interim Zoning Ordinance (“IZO”) authorizing 100% affordable housing projects and Tier 21 housing projects compliant with the HAA, to be reviewed and approved without a public hearing through an Administrative Approval process. A public hearing by the Architectural Review Board (ARB) for design review is still required. The IZO was extended on August 25, 2020 and January 25, 2022. On January 25, the City Council amended the interim zoning regulations to: 1) remove the deed restriction requirements to avoid inconsistency with the City’s residential leasing regulations; and 2) limit eligibility to Tier 2 projects located on parcels of 43, 560 square feet (one acre) or less to increase community input opportunities for larger projects, and extended the interim zoning regulations to May 31, 2022.
The May 31, 2022 termination date was intended to coincide with the effective date of planned the zoning changes to implement the Housing Element. However, on February 8, 2022, the City received a letter from the California Department of Housing and Community Development (“HCD”) which determined that the City’s 6th Cycle Housing Element met many statutory requirements, but further revisions would be necessary, an additional extension of the IZO is necessary to provide additional time to respond to HCD’s comments, re-adopt the Housing Element, transmit to HCD for a 60-day review period, and if certified, implement permanent zoning changes that would streamline review of housing projects in addition to other housing programs. 1 The Land Use and Circulation Element created a tiered land use system based on increments of height and floor area ratio (FAR). Tier 1 establishes a base height and FAR while Tier 2 establishes additional height and FAR that can be requested if community benefits are provided. 5 of 5
Environmental Analysis
The proposed extension of the Urgency Interim Zoning Ordinance establishing application process thresholds for 100% affordable housing projects and Tier 2 housing projects on parcels of 43,560 or less that are compliant with the Housing Accountability Act are categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation Guidelines (common sense exemption). Based on the evidence in the record, it can be seen with certainty that there is no possibility that the proposed changes may have a significant effect on the environment. The recommended amendments represent procedural changes in how projects are reviewed and do not substantively affect the policy decisions with respect to development standards or land use regulations made with the City Council’s adoption of the 2015 Zoning Ordinance Update. Therefore, no further environmental review under CEQA is required.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action.
Prepared By: Jing Yeo, Planning Manager
Approved Forwarded to Council
Attachments:
A. Housing Process Thresholds 3d IZO Extension 04.12.2022 B. Written Comments