City Council
Housing Element Progress Update
April 26, 2022
Purpose
1. Approve contract modification for EIR
2. Receive progress update on Housing Element
3. Direct City Manager to prepare letter advocating for information hearing and request for extra time to
complete Housing Element rezoning process
Background
• RHNA for Santa Monica is 8,895 units – demonstrate that we have the zoning capacity to accommodate this
• Housing Element studied 11,070 units
• 1,884 units were designated as lower income units on city-owned sites
• Adopted Housing Element Timeline
• October 12, 2021 - Adopted by City Council
• November 10, 2021- Transmitted to HCD for 90-day review period • February 8, 2022 – HCD Comments Received and City informed that Housing Element is out of compliance
Key Housing Element Deadlines
• October 15, 2021 – Adopt a compliant
Housing Element
• February 12, 2022 – extra 120 days to
adopt a compliantHousing Element in
order to avoid updating Housing
Element every 4 years
• AB1398 took effect on January 1, 2022
replacing this provision with a requirement
to rezone for the RHNA by October 15, 2022
HCD’s position is that
HCD had to certify the
Housing Element before
Council adoption
Out of Compliance - Consequences
Immediate short-term consequences
• Approvals
• Must approve any project with 20% on-site units affordable to lower-income households or 100% moderate units even if the project exceeds zoning or LUCE maximums
• Conditions cannot render the project infeasible
• Loss of funding for affordable housing
• Rezoning for RHNA complete by 10/15/22
• If rezoning not completed
• Must approve any projects on SSI that meets the densities in the table (seeking further clarification from HCD on applicability) • State can start enforcement proceedings against City
Out of Compliance - Consequences
Long-term consequences
• SB35 determination based on building permits issued
relative to pro-rated RHNA
• If Above Moderate RHNA not met – streamlined process for projects with at 10% affordability • If Lower Income RHNA not met – streamlined process for projects with at least 50% affordability • Requires ministerial approval process for housing projects that include
These are only selected highlights but does not include being out of compliance means the State can seek judicial relief and impose penalties and fines
Progress on Response to HCD Comments
• Staff continues consultation with HCD staff seeking
clarification regarding comments
• Discussions have covered
• City-owned sites
• Affirmatively Furthering Fair Housing with a particular focus in R1 zones
• Approaches to remedy the “shortfall” of sites to accommodate lower income units and address constraints to housing production Progress on Response to HCD Comments
• City-owned sites
• Further Clarification on HCD Comments
• Must show greater commitment to demonstrate that City-owned sites can accommodate the 1,884 affordable housing units
Sites Unit Capacity Constraints
Parking Structure 3 (pending project) 104 None
Wilshire Parking Lots (3) 130 None
4th/AZ 338 Bank leases don’t terminate until 2026
Bergamot Arts Center 707 Property management agreement until April 2027.
Annual leases with 30 businesses that renew each
calendar year until redevelopment
Main Street Parking Lots 605 None but replacement parking will be definitely be necessary (Coastal Zone)
Total 1,884
Progress on Response to HCD Comments
• City-owned sites
• Potential revised program
• Commit to minimum number of units on city-owned sites • Commit to issue RFPs on city-owned sites on regular schedule • Explain process that City will pursue to develop city-owned sites • Identify any potential partners for 100% affordable housing • List tools that City has used in the past to facilitate affordable housing on public land
Progress on Response to HCD Comments
• Affirmatively Furthering Fair Housing
• Further Clarification on HCD Comment
• Incentivizing one additional ADU in R1 zones and implementing SB9 is not sufficient to demonstrate City’s commitment to fully address AFFH requirement
• Where there city has less resource disparity, HCD places greater emphasis on local factors and demonstration of how the City of overcoming historic patterns
• Revised program must include
• Specific metrics to incentivize housing choice and affordability especially in R1 zone neighborhoods
• Mid-cycle review to assess whether additional actions are needed to achieve established metrics
• Staff will need further consultation with HCD on how to fully address this comment
Progress on Response to HCD Comments
• Shortfall of Sites to Accommodate Low Income Units
• Further Clarification on HCD Comment
• Not sufficient to mention potential zoning changes and flexibility to adjust range of FARs may not be acceptable
• FARs might need to increase because of challenge to realistic capacity based on existing uses as impediment to zoning
• Revised program must include
• Commitment to acreage, number of units and allowable densities • Staff will need further consultation with HCD on how to fully address this comment
Amendment to EIR Contract
• Modification to agreement of $231,041 for additional analysis • Necessary to revise EIR to account for study of more
housing units in response to HCD comments
Why Revisions to EIR are Necessary
• Addressing HCD Comments means the need to study
an increase in overall number of potential housing units based on two main factors
1) Re-categorizing sites on the SSI from future projects to pending projects due to applications received for housing projects since September 2021
2) Overall reduction in zoned capacity by 15% to account for possibility that sites develop into 100% commercial instead of housing
If city-owned sites cannot be used, capacity would
need to increase to well over 13,000 units
Why Revisions to EIR are Necessary
Conceptual Diagram of Why Overall Capacity Goes Up
Parcels
Identified as
Highest
Probability to
accommodate
housing
(332 sites)
Overall Number
of Units
(RHNA + Buffer
= 11,070 units)
9,168 affordable units allocated
through 100% affordable projects or
inclusionary projects (15%)
Remove sites with
pending projects
Reduced
number
of parcels
UNITS LAND
Why Revisions to EIR are Necessary
Conceptual Diagram of Why Overall Capacity Goes Up
Overall Number of
Units
(RHNA + Buffer
~13,000 units)
Reduced
number
of parcels
Need more overall units to
make up for loss of
affordable unit capacity
through pending projects
and 15% across the board
cut in capacity
Recommendation
1. Approve Contract Modification to Housing Element EIR
2. Receive update regarding progress update on Housing
Element
3. Direct City Manager to prepare advocacy letter for
legislative changes to provide for additional time beyond October 15, 2022 to complete rezoning