Item 11-C
City Council
July 25, 2023
ITEM 10.C.
JULY 25, 2023
ITEM 10.C.
JULY 25, 2023
Incentives for Certain Housing Projects Filed Before 6th Cycle Housing Element Certification Staff Recommendation
• Adopt a finding that no subsequent environmental review is required pursuant to CEQA Guidelines Section 15162
• Introduce for first reading an ordinance amending SMMC Chapter 9.31 to incentivize housing production on certain parcels:
• Subject to pending housing project applications filed between September 30, 2022 and October 13, 2022
• Prior to HCD’s Certification of 6th Cycle (2021-2029) Housing Element on October 14, 2022 • Applicant-asserted eligibility under “Builder’s Remedy” provision of Housing Accountability Act (HAA)
ITEM 10.C.
JULY 25, 2023
ITEM 10.C.
JULY 25, 2023
Ordinance Amendment Purpose
• Provide additional local incentives: for new housing projects in compliance with Certified 6th Cycle Housing Element, LUCE, and April 11, 2023 Zoning Ordinance Amendments • Instead of Builder’s Remedy projects that significantly exceed codified development standards for FAR and Building Height
Incentives for Certain Housing Projects Filed Before 6th Cycle Housing Element Certification ITEM 10.C.
JULY 25, 2023
ITEM 10.C.
JULY 25, 2023
Background
• October 14, 2023 – HCD certified City’s 6th Cycle (2021-2029) Housing Element • April 11, 2023 – Council approved Implementation Program • Zoning Ordinance amendments – increase non-residential district FAR/height & streamline ministerial review process
• Council-certified Housing Element Environmental Impact Report (EIR) [SCH No. 2020100575] with Addendum to EIR approved on October 11, 2022
Incentives for Certain Housing Projects Filed Before 6th Cycle Housing Element Certification ITEM 10.C.
JULY 25, 2023
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City of Santa Monica/WS Settlement Agreement
May 9, 2023 – City Council approved Settlement Agreement applicable to 13 housing projects filed under HAA’s Builder’s Remedy provision
• Settles disagreement on applicability of Builder’s Remedy statute • Provides option, but does not require, Council to adopt ordinance for local incentives • June 21, 2023 – Planning Commission resolution of recommendation to approve ordinance Incentives for Certain Housing Projects Filed Before 6th Cycle Housing Element Certification ITEM 10.C.
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Proposed Ordinance Amendments
• Key Benefits for New Projects (“Ordinance Projects”)
• Submitted per Settlement Agreement & these Zoning Ordinance Amendments • Affordable Housing – 15% requirement for on- or off-site units • Density Bonus – with the off-site Affordable Housing Option • Timing of Completion – building permit issuance for market rate and affordable units • Parking in DCP
Termination Criteria consistent with Housing Element FEIR Incentives for Certain Housing Projects Filed Before 6th Cycle Housing Element Certification ITEM 10.C.
JULY 25, 2023
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Affordable Housing Benefit
• Off-Site Affordable Option – Ordinance Project is eligible for the following:
15% of the total number of base density (i.e., pre density bonus) units – provided as off-site affordable housing units (instead of 20% off-site affordable requirement) Affordable units can be provided off-site on commercial or residential parcels, not currently improved with residential units
Must be located outside of Pico Neighborhood (area defined by Zoning Ordinance) Incentives for Certain Housing Projects Filed Before 6th Cycle Housing Element Certification ITEM 10.C.
JULY 25, 2023
ITEM 10.C.
JULY 25, 2023
Density Bonus Benefit
• Off-Site Affordable Option – Ordinance Project is eligible for the following:
Allow State Density Bonus Law benefits to apply to projects that provide affordable units off-site (instead of limiting only to on-site)
State Density Bonus Law benefits:
o Up to a 50% market rate density bonus
o Three permitted incentives
o Additional waivers of development standards
Incentives for Certain Housing Projects Filed Before 6th Cycle Housing Element Certification ITEM 10.C.
JULY 25, 2023
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JULY 25, 2023
Timing of Completion Benefit
• Off-Site Affordable Option – Ordinance Project is eligible for the following:
Allow issuance of building permit to commence construction of the market rate unit development concurrent with /prior to corresponding off-site affordable units Maintain requirement for Certificate of Occupancy issuance for off-site affordable units before Certificate of Occupancy issuance for market rate units Parking Benefit
• Ordinance Project is eligible for the following:
In Downtown Community Plan
Allow maximum of one (1) parking space per unit
(instead of maximum one-half (.5) space per unit)
Incentives for Certain Housing Projects Filed Before 6th Cycle Housing Element Certification ITEM 10.C.
JULY 25, 2023
ITEM 10.C.
JULY 25, 2023
Criteria for Termination of Certain Benefits
• Affordable Housing, State Density Bonus, and Timing of Completion benefits will terminate upon the following:
• If issuance of Administrative Approval applications exceeds the # of units allocated to these 13 sites in the Suitable Sites Inventory + 965 “Additional Units”*** • Parking Benefit in DCP would continue to be in effect if/when criteria for Termination are met *** 965 units represents the contingency units analyzed in the Housing Element FEIR (the difference between 14,565 units studied in the Housing Element EIR Addendum minus the number of housing units allocated in the Suitable Sites Inventory (SSI) for the City’s 6th Cycle (2021-2029) Housing Element (13,600))
*** “Additional Units” means all housing units – whether market rate, affordable, on-site and offsite units Incentives for Certain Housing Projects Filed Before 6th Cycle Housing Element Certification ITEM 10.C.
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Criteria for Termination of Certain Benefits
Example of how termination criteria is evaluated:
Off-Site Option Ordinance Project A = X [100 units]
SSI allocation for Project A’s Site = Y [75 units]
X – Y = Z [25 units]
965 – Z = Number of Contingency Units Remaining
965 – 25 = 940 Contingency Units Remaining
Incentives for Certain Housing Projects Filed Before 6th Cycle Housing Element Certification ITEM 10.C.
JULY 25, 2023
ITEM 10.C.
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Recommendation
• Adopt a finding that no subsequent environmental review is required pursuant to CEQA Guidelines Section 15162:
• Incentives were analyzed as part of the 2021-2029 6th Cycle Housing Element Environmental Impact Report (EIR) certified by the Council on October 12, 2021 with an Addendum to the EIR approved by the Council on October 11, 2022. • Introduce Ordinance for first reading: amending text of the Zoning Ordinance to provide incentives for certain housing projects that filed an application prior to implementation of the City’s 6th Cycle (2021-2029) Housing Element.
Incentives for Certain Housing Projects Filed Before 6th Cycle Housing Element Certification ITEM 10.C.
JULY 25, 2023
ITEM 10.C.
JULY 25, 2023