City Council
Report
City Council Meeting: July 29, 2025
Agenda Item: 12.B
1 of 5
To: Mayor and City Council
From: Arminé Chaparyan, Director, Administration
Subject: Public Hearing and Adoption of Emergency Interim Zoning Ordinance of the City Council of the City of Santa Monica Extending and Amending Regulations Established by Emergency Interim Zoning Ordinance 2816 (CCS) to Permit the Establishment of Accessory Dwelling Units (ADUs) as Part of Projects Utilizing Senate Bill (SB) 1123 on Vacant Parcels Zoned for Single-Unit Residential, Ensure Project Feasibility of SB 1123 Projects by Providing for Certain Relaxed Development Standards, and Expand the Establishment of ADUs to All Projects Utilizing Government Code Sections 65852.28 and 66499.41 Which Includes Parcels Within Multiple-Unit Zoning District as Permitted Pursuant to SB 684
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of Statutory Exemption from the California Environmental Quality Act (CEQA) pursuant to Government Code Section 65913.4.5(b) and a finding of categorical exemption pursuant to CEQA Guidelines Section 15061(b)(3).
2. Introduce and Adopt Emergency Interim Zoning Ordinance Extending and Amending the Regulations Established by Emergency Interim Zoning Ordinance 2816 (CCS) to Permit the Establishment of Accessory Dwelling Units (ADUs) as Part of Projects Utilizing Senate Bill (SB) 1123 on Vacant Parcels Zoned for Single-Unit Residential, Ensure Project Feasibility of SB 1123 Projects by Providing for Certain Relaxed Development Standards, and Expand the Establishment of ADUs to All Projects Utilizing Government Code Sections 65852.28 and 66499.41 Which Includes Parcels Within Multiple-Unit Zoning District as Permitted Pursuant to SB 684.
Summary
On September 19, 2024, Governor Newsom approved Senate Bill 1123 (SB 1123) (codified as Government Code Sections 65852.28 and 66499.41), which became effective on July 1, 2025. Primarily, SB 1123 expands upon prior State law (SB 684) to 2 of 5
allow a parcel zoned for single-unit residential use to be ministerially subdivided into up to 10 parcels. While most aspects of SB 1123 are mandatory, certain provisions – such as the inclusion of Accessory Dwelling Units (ADUs) – are left to the discretion of each local jurisdiction.
On May 13, 2025, City Council directed staff to return with an ordinance allowing ADUs in conjunction with projects utilizing SB 1123. On June 10, 2025, Council adopted Emergency Interim Zoning Ordinance (IZO) Number 2816 (CCS) implementing the allowance of ADUs in SB 1123 projects, and provided additional direction to staff to return with amendments that modify specific requirements and development standards to ensure the feasibility of SB 1123 projects. Additionally, direction was provided to return with amendments to expand the allowance for ADUs in all projects utilizing Government Code Sections 65852.28 and 66499.41, which includes parcels within multiple-unit zoning districts as permitted pursuant to SB 684.
This staff report and attached ordinance summarizes the extension of and amendments to Emergency IZO Number 2816 (CCS) consistent with Council direction from June 10.
The Emergency IZO adopted on June 10, 2025 will expire on August 9, 2025 unless extended by Council in accordance with Santa Monica Municipal Code (SMMC) Section
9.46.090(C).
Discussion
Extension of the Emergency IZO
On June 10, 2025, Council adopted Emergency IZO Number 2816 (CCS), permitting the establishment of ADUs as part of projects utilizing SB 1123 on vacant parcels zoned for single-unit residential use. The interim zoning regulations established by Emergency IZO 2816 will expire unless extended by Council pursuant to SMMC Section
9.46.090(C). The attached ordinance extends the interim zoning regulations established by Emergency IZO 2816 until December 31, 2026, which will allow the City to study the effectiveness of the interim zoning regulations in ensuring feasibility of housing projects submitted pursuant to SB 1123. Staff anticipates codifying the provisions of SB 1123 into the Municipal Code prior to the expiration of the interim zoning regulations. Staff 3 of 5
further anticipates that this codification will incorporate anticipated guidance from the California Department of Housing and Community Development (HCD) – which holds enforcement authority over SB 1123 implementation – and any applicable judicial guidance that may be issued.
Amendments to the Interim Zoning Regulations
In addition to adopting Emergency IZO Number 2816 (CCS), on June 10, 2025, Council provided direction to return with amendments that modify specific requirements and development standards to ensure the feasibility of SB 1123 projects. Specifically, the amendments included the following:
• Eliminate the Affordable Housing Production Program (AHPP) fee for projects with five or fewer units; and
• Modify the following development standards:
o Permit a maximum Floor Area Ratio of 1.5;
o Permit a maximum building height of 3 stories/33 feet; o Reduce the front setback by 30%, but no less than 10 feet; o Eliminate upper-story stepbacks; and
o Eliminate interior setbacks and stepbacks between ADUs on newly created parcels, except as required by the California Building Code (CBC).
The attached Emergency IZO extending the original ordinance includes these amendments.
Additionally, in response to a policy question posed by staff at the June 10, 2025 meeting, Council directed staff to expand the allowance for establishing ADUs in all projects utilizing Government Code Sections 65852.28 and 66499.41, which includes parcels within multiple-unit zoning districts as permitted pursuant to SB 684. The attached Emergency IZO extending the original ordinance includes this amendment.
Environmental Review
4 of 5
The amendment to the Zoning Ordinance is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Government Code Section 65913.4.5(b), which states that an ordinance to implement Government Code Sections 65852.28 and 66499.41 (SB 1123/SB 684) shall not be considered a project subject to CEQA (Section 21000 et seq. of the Public Resources Code).
Additionally, the modifications to the development standards for qualifying projects under SB 1123/SB 684 are exempt from the provisions of the CEQA pursuant to Section 15061(b)(3) of the CEQA 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 (such as increased Floor Area Ratio, increased building height, reduced front setbacks, and elimination of upper-story stepbacks) to the ordinance will have a significant effect on the environment. These changes are administrative in nature and would not increase the potential for additional development beyond what was already analyzed in the certified 6th Cycle Housing Element Environmental Impact Report.
Financial Impacts and Budget Actions
No immediate financial impacts or budget actions are necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future.
Based on City Council direction to exempt SB 1123 projects of five or fewer units from the affordable housing fee (SMMC Section 9.64.070(A)), there will be a financial impact due to the loss of funds used to support and develop affordable housing. Currently, the affordable housing fee is calculated as $43.91 for apartment projects or $51.30 for condominium projects per square foot of floor area of a multiple-unit project. For example, a condominium project that is 10,000 square feet would pay an affordable housing fee of $513,000 instead of providing an affordable unit. As SB 1123 is a new State law that has not yet been utilized in Santa Monica, the long-term impacts of this policy change are difficult to determine.
5 of 5
Prepared By: Ross Fehrman, Principal Planner
Approved Forwarded to Council
Attachments:
A. SB 1123 EIZO Extension Ordinance
B. Written Comments