1 City Council Meeting: January 13, 2026 Santa Monica, California RESOLUTION NUMBER _____________ (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DIRECTING THE PLANNING COMMISSION TO INITIATE AN AMENDMENT TO THE TEXT OF THE CITY’S ZONING ORDINANCE RELATED TO PROJECTS UTILIZING STATE LAW PERMITTING SMALL LOT SUBDIVISIONS UNDER 10 UNITS AND
PROJECTS CONSISTING OF DUPLEXES AND LOT SPLITS FOR PARCELS ZONED
SINGLE-UNIT RESIDENTIAL
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
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
2 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
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
3 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 became 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 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 with an ordinance to allow ADUs in conjunction with projects utilizing SB 1123; and WHEREAS, on June 10, 2025, City Council adopted Emergency Interim Zoning Ordinance (IZO) Number 2816 (CCS) (IZO 2816) implementing the allowance of ADUs 4 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 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, on July 29, 2025, the City Council adopted emergency Interim Zoning Ordinance Number 2821 (IZO 2821), extending IZO 2816 until December 31, 2026 and amending the interim zoning regulations to include Council direction from June 10, and further provided direction to start the process for amending the text of the Zoning Ordinance to add the interim zoning regulations set forth in IZO 2821; and WHEREAS, pursuant to Programs 4.E and 4.F of the City’s 6th Cycle (2021-2029) Housing Element, City Council adopted implementation of Senate Bill (SB) 9 on April 11, 5 2023, as Santa Monica Municipal Code Section 9.31.125, Duplexes and Lot Splits on Parcels Zoned for Single-Unit Residential, with the local amendments to allow for more than four units on parcels 10,000 square feet or greater; and WHEREAS, since local implementation, SB 9 was revised by SB 450, taking effect January 1, 2025, which amended the law to:
• Remove the option to prohibit projects that would result in the demolition of more than 25% of existing exterior walls
• Make clear that a local agency cannot impose objective standards to lot split/duplex projects unless: 1) the standards apply uniformly within the zone; or 2) the standards are more permissive than standards in the underlying zone • Remove authorization for a local agency to deny a proposed housing development if the building official makes a written finding that the proposed housing development project would have a specific, adverse impact upon the physical environment (i.e., the authorization to deny based on a written finding that the proposed project would have a specific, adverse impact on public health or safety remains in place).
• Require an agency to approve or deny applications within 60 days of a complete application otherwise will be deemed approved.
• Make additional legislative findings to clarify that SB 9 applies to all cities, including charter cities; and
WHEREAS, in addition to the state law required amendments, on January 28, 2025, in order to facilitate diverse housing choices in the City’s highest opportunity areas, 6 in conjunction with necessary updates arising out of SB 450, the City Council gave direction to return amendments to the City’s regulations governing ministerial approval for certain lot splits and duplexes on parcels zoned for single-unit residential by: (1) removing the owner-occupancy requirement for lot splits and duplexes and clarifying that vacant or demolished parcels, as well as lots with approved demolition permits, are eligible for lot splits and duplexes, (2) allowing one roof deck per unit, and (3) ensuring that no standard within this ordinance or the underlying zoning district shall preclude the construction of 2 units, not including ADUs, of at least 1200 square feet each; and WHEREAS, on May 13, 2025, the City Council conducted a duly noticed hearing, and, after considering all oral and written testimony, on May 27, 2025, adopted Ordinance Number 2814, which, in part, amended Section 9.31.125 to (1) remove the owneroccupancy requirement for lot splits and duplexes and clarifying that vacant or demolished parcels, as well as lots with approved demolition permits, are eligible for lot splits and duplexes, (2) allow one roof deck per unit, and (3) ensure that no standard within this ordinance or the underlying zoning district shall preclude the construction of 2 units, not including ADUs, of at least 1500 square feet each; and WHEREAS, subsequent to the City Council’s adoption and amendment of Section
9.31.125, the City received informal advice from the California Department of Housing and Community Development (HCD) indicating that a separation of the statutory requirements under SB 9/450 and the provisions of the City’s regulations related to duplexes and lot splits on parcels zoned for single-unit residential would be favorable for HCD’s review; and
7 WHEREAS, the City Council now desires to separate the statutory requirements of SB 450 and the City’s expanded regulations related to duplexes and lot splits on parcels zoned for single-unit residential to clarify those amendments made pursuant to state law requirements under SB 9/450 and those created pursuant to the City’s local authority; and
WHEREAS, additional amendments to SMMC Chapter 9.31, Standards for Specific Uses and Activities, and SMMC Section 9.31.125, Duplexes and Lot Splits on Parcels Zoned for Single-Unit Residential, will be desirable to comply more closely with State law and to allow for lot splits and duplexes in single-unit residential zoning districts pursuant to prior Council direction; and
WHEREAS, the City Council now wishes to direct the Planning Commission to initiate an amendment to the text of the City’s Zoning Ordinance related to projects utilizing state law permitting small lot subdivisions under 10 units and projects consisting of duplexes and lot splits for parcels zoned for single unit residential.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Pursuant to Santa Monica Municipal Code Section 9.46.030(A), the City Council does hereby direct the Planning Commission to initiate an amendment to the text of the City’s Zoning Ordinance related to projects utilizing state law permitting small lot subdivisions under 10 units and projects consisting of duplexes and lot splits for parcels zoned for single unit residential.
8 SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter, the same shall be in full force and effect and shall supersede any prior adopted Resolutions regarding the same subject matter.
APPROVED AS TO FORM:
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Heidi von Tongeln
Interim City Attorney