1 City Council Meeting: July 29, 2025 Santa Monica, California ORDINANCE NUMBER _________ (CCS)
(City Council Series)
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
WHEREAS, California has a statewide housing crisis, represented by a shortage of nearly 3,500,000 homes; and
WHEREAS, California’s housing crisis stifles economic growth, contributes to the homelessness epidemic, consumes an ever-growing share of the paychecks of working families, and holds millions of households back from realizing the California dream of home ownership; and
WHEREAS, the State has declared that restrictive zoning, land use, and burdensome permitting policies at the local and state level are a major cause of the shortfall between California’s housing needs and the available supply of housing; and WHEREAS, home ownership is still the primary way in which most Americans build wealth and assets; and
WHEREAS, California has the third highest median home price in the country and the high cost of housing has pushed what was once a modest goal further and further out of reach for most people of color; and
2 WHEREAS, home ownership rates in California are among the lowest nationwide, and in recent years those numbers have continued downward, including a 3.19 percent decline from 2020 and 2022; and
WHEREAS, while the home ownership gap is an issue throughout the country, the rate of African American and Latinx home ownership is significantly worse in California – at a national level, African Americans and Latinx have a home ownership rate of 42 percent and 47 percent, respectively, while here in California, that rate drops down to 35 percent and 42 percent, respectively; and
WHEREAS, the Legislative Analyst’s Office has identified a lack of housing supply as one of the culprits for the severe home ownership gap; and WHEREAS, the office’s 2016 housing affordability report found that “the state’s housing shortage also makes many Californians, not only low-income residents, more likely to commute longer distances, live in overcrowded housing, and delay or forgo home ownership”; and
WHEREAS, according to the Urban Institute, multifamily construction built for sale accounted for only 5.4 percent of all multifamily starts and only 2.7 percent of all singlefamily and multifamily home construction for the first three quarters of 2021; and WHEREAS, houses cost more in California due to increased costs, heavy regulatory hurdles, and mandatory features and fees that add tens of thousands of dollars to the cost of each unit; and
WHEREAS, as production has slowed and changed, for-sale inventory has tightened, particularly for entry-level homes; and
3 WHEREAS, higher home prices have translated to less diversity in who is able to purchase a home; and
WHEREAS, home ownership is a powerful tool to close the racial and ethnic wealth gap across the State of California and nationwide; and
WHEREAS, the production of new market-rate housing frees up existing, more affordable housing elsewhere in the region for sale or rent to lower and middle-income households; and
WHEREAS, based on these realities, on September 19, 2024, Governor Newsom signed and approved Senate Bill 1123 (SB 1123) which becomes operative on July 1, 2025; and
WHEREAS, SB 1123 expands upon prior State law (SB 684) to allow a “vacant” parcel zoned for single-unit residential to be ministerially subdivided to up to 10 ownership units; and
WHEREAS, while most aspects of SB 1123 are compulsory, there are some areas that are at the discretion of each local jurisdiction, including the ability to include Accessory Dwelling Units (ADUs) in SB 1123 projects; and WHEREAS, SB 1123 states that “a local agency is not required to permit an accessory dwelling unit or a junior accessory dwelling unit on parcels created through the exercise of the authority contained within this section”; and WHEREAS, however, if a local jurisdiction does decide to permit ADUs, “the units shall not count as residential units” when determining how many units can be established within developments that have subdivided a parcel pursuant to SB 1123; and 4 WHEREAS, in order to provide more diverse housing options for residents in Santa Monica, on May 13, 2025, City Council gave direction to staff to return on June 10, 2025 with an ordinance to allow ADUs in conjunction with projects utilizing SB 1123; and WHEREAS, there are numerous applicants in the City that would like to avail themselves of these provisions, including the ability to include ADUs in their projects, as soon as SB 1123 becomes operative on July 1, 2025; and
WHEREAS, with approval of these interim zoning regulations, all applicable provisions under State ADU law and the City’s local implementation will be available to parcels created by utilizing SB 1123, including, but not limited to, the number of ADUs that can be permitted on a single parcel; and
WHEREAS, on June 10, 2025, City Council adopted Emergency Interim Zoning Ordinance (IZO) Number 2816 (CCS) (IZO 2816) implementing the allowance of ADUs in SB 1123 projects; and
WHEREAS, the City Council provided additional direction at the June 10, 2025 hearing for staff to return with amendments to the interim zoning regulations established by IZO 2816 (interim zoning regulations) that modify specific requirements and development standards to ensure the feasibility of SB 1123 projects, including, but not limited to: (1) Eliminating the Affordable Housing Production Program (AHPP) fee for projects with five or fewer units; and (2) Modifying the following development standards:
(a) permitting a maximum Floor Area Ratio of 1.5; (b) permitting a maximum building height of 3 stories/33 feet; (c) reducing the front setback by 30%, but no less than 10 feet; (d) eliminating upper-story stepbacks; and (e) eliminating interior setbacks and stepbacks between ADUs on newly created parcels, except as required by the California Building 5 Code (CBC); and
WHEREAS, Council further directed staff to return with amendments to the interim zoning regulations 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; and
WHEREAS, the proposed amendments to the interim zoning regulations will further the City’s efforts to address the housing crisis, which has been reemphasized by the State legislature as recently as June 30, 2025, by the passage of Assembly Bill (AB) 130, which declared the need to solve the housing crisis through a multifaceted, statewide approach, including an increase in the overall supply of housing, encouraging the development of housing that is affordable to households at all income levels, removing barriers to housing production, and expanding home ownership opportunities; and WHEREAS, Council desires to extend the interim zoning regulations established by 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 Government Code Sections 65852.28 and 66499.41; and WHEREAS, the City is still evaluating all aspects of SB 1123 and will return at a future date with a more comprehensive ordinance upon receipt of guidance from the State on SB 1123’s implementation, including, but not limited to anticipated guidance from the California Department of Housing and Economic Development (HCD); and WHEREAS, there exists a current and immediate threat to public health, safety, and welfare requiring extension of this Emergency Interim Zoning Ordinance due to: (1) statewide and local housing crisis; (2) the need to expand housing choices in the City’s 6 areas of highest opportunity; (3) the several applicants seeking to utilize these provisions as soon as the operative date for SB 1123; and (4) staff’s limited ability to bring forward permanent changes to the City’s Municipal Code by the effective date.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Notwithstanding anything to the contrary in the Santa Monica Municipal Code, housing development projects and subdivisions located on parcels zoned for singleunit residential that are eligible for ministerial approval under SB 1123, codified at Government Code Sections 65852.28 and 66499.41 shall be subject to the following:
A. Accessory Dwelling Units may be established in accordance with Santa Monica Municipal Code Section 9.31.025, Accessory Dwelling Units and Junior Accessory Units;
B. For housing projects consisting of five units or less, the affordable housing fee required by Section 9.64.070 of Chapter 9.64, the Affordable Housing Production Program shall not be required; and
C. Development standards shall be modified to:
a. Permit a maximum Floor Area Ratio of 1.5;
b. Permit a maximum building height of 3 stories/33 feet; c. Reduce the front setback by 30%, but no less than 10 feet; d. Eliminate upper-story stepbacks; and
e. Eliminate interior setbacks and stepbacks between ADUs on newly created parcels, except as required by the California Building Code (CBC).
7 SECTION 2. Notwithstanding anything to the contrary in the Santa Monica Municipal Code, housing development projects and subdivisions located on parcels zoned for multiple-unit residential that are eligible for ministerial approval under SB 684, codified at Government Code Sections 65852.28 and 66499.41, may establish Accessory Dwelling Units in accordance with Santa Monica Municipal Code Section 9.31.025, Accessory Dwelling Units and Junior Accessory Units.
SECTION 3. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective immediately upon adoption. Pursuant to Sections 615 and 619 of the City Charter, and Section 9.46.090 of the Municipal Code, for the reasons stated in the recitals above, the staff report accompanying this ordinance, oral and written testimony received by the City 8 Council, and City Council discussion, the City Council declares this ordinance to be necessary as an emergency measure for preserving the public peace, health, and safety, with the result that this ordinance shall be introduced and adopted at the same meeting and shall become effective immediately upon its adoption.
SECTION 6. This Ordinance shall be of no further force and effect as of December 31, 2026, unless it is otherwise extended pursuant to Santa Monica Municipal Code Section
9.46.090(C).
APPROVED AS TO FORM:
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Douglas Sloan, City Attorney