AHPP Ordinance Final 010626 — Santa Monica City Council, January 13, 2026

1 City Council Meeting: January 13, 2026 Santa Monica, California ORDINANCE NUMBER ____ (CCS)
(City Council Series)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF SANTA MONICA ADDING SECTIONS 9.64.065 AND 9.64.075 TO THE SANTA

MONICA MUNICIPAL CODE TO ESTABLISH AN OFF-SITE

AFFORDABLE HOUSING PILOT PROGRAM
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
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, the City’s Affordable Housing Production Program (AHPP), codified as Chapter 9.64 of the Santa Monica Municipal Code, was enacted in 1998 and requires developers of market-rate housing projects to contribute to affordable housing production by either:
1) Constructing inclusionary affordable residences onsite in a development; 2) Constructing affordable residences offsite in another development; or 3) Paying an affordable housing fee that is deposited into the Citywide Housing Trust Fund and used by the City to subsidize affordable housing developments; and WHEREAS, Since the enactment of the AHPP, the City has produced more than 1,200 affordable lower income units; and
2 WHEREAS, the City’s AHPP has been amended numerous times to increase affordable housing production and meet the City’s housing goals; and WHEREAS, on April 9, 2019, the City Council adopted Ordinance Number 2609 (CCS), which authorized modification to the AHPP to remove the extremely-low income housing option from the Tier 2 community benefits for housing projects with an application that was determined complete before March 26, 2019, and after November 27, 2019; and WHEREAS, on October 22, 2019, the City Council adopted Ordinance Number 2622 (CCS), to extend the removal of the extremely-low income housing option from the Tier 2 community benefits to housing projects with an application that was determined complete before March 26, 2019, and after November 27, 2020; and WHEREAS, on October 27, 2020, the City Council adopted Ordinance Number 2654 (CCS), to extend the removal of the extremely-low income housing option from the Tier 2 community benefits to housing projects with an application that was determined complete before March 26, 2019, and after February 28, 2022; and WHEREAS, on April 11, 2023, as part of the 6th Cycle Housing Element implementing actions, the City Council adopted Ordinance Number 2742 (CCS), which included amendments to the Zoning Ordinance that included streamlining the approval of housing projects and modifying the AHPP to establish a 15% on-site inclusionary requirement; and
WHEREAS, pursuant to State Density Bonus Law, Government Code Section 65915 et seq., projects that provide a certain percentage of affordable units in a housing development project are eligible for density bonuses, incentives or concessions, and waivers or reductions of development standards; and
3 WHEREAS, in accordance with Chapter 9.22, Density Bonus, housing projects of 20 units or more that provide onsite affordable units in accordance with the 15% inclusionary requirement set forth in the AHPP are eligible for the greatest density bonus and incentives or concessions permitted under State Density Bonus Law; and WHEREAS, the residential construction industry is facing significant financial challenges due to macroeconomic and global political factors; and WHEREAS, while the City has streamlined the approval of more than 3,400 market rate projects and 900 affordable units through a ministerial process, most of these projects have yet to begin construction; and
WHEREAS, the number of building permits that have been issued in the City has dropped significantly in the last two years and, in 2025, two building permits have been issued by the City to date; and
WHEREAS, in light of these factors, on June 20, 2025, the City Council gave direction to staff to “establish a pilot program allowing market-rate housing projects more flexibility in how they provide affordable housing units off-site, while also allowing these housing projects to be eligible for density bonus, incentives/concessions, and modifications”; and
WHEREAS, on August 12, 2025, the City Council adopted an urgency ordinance, Ordinance Number 2824 (CCS), adding Section 9.64.065 to the Santa Monica Municipal Code to establish an off-site affordable housing pilot program (the “Pilot Ordinance”); and WHEREAS, the Pilot Ordinance, by its own terms, effectively terminated upon the earlier to occur of (i) the submittal of applications utilizing the provisions of Section 4 9.64.065 for a cumulative total of 1000 dwelling units for all the multiple-unit project applications submitted or (ii) September 30, 2025; and
WHEREAS, the Pilot Ordinance effectively terminated prior to September 30, 2025, because applications for the pilot program for a cumulative total of 1000 dwelling units were submitted prior to September 30, 2025; and
WHEREAS, at its public meeting on September 30, 2025, Council directed staff to extend the off-site pilot program to allow additional applications for market rate multifamily residential projects to be filed, subject to modified provisions and conditions, including that applications filed before the expiration of the Pilot Ordinance be subject to the terms and conditions set forth in Section 9.64.065 of this ordinance and applications filed after the expiration of the Pilot Ordinance be subject to the terms and conditions set forth in Section 9.64.075 of this ordinance; and
WHEREAS, housing development projects that do not provide affordable housing units on site are not eligible for bonuses, waivers and modifications or incentives and concessions under State Density Bonus Law; and
WHEREAS, there exists a current and immediate threat to public health, safety, and welfare due to factors that deter construction of previously entitled housing projects that have not pulled building permits to date; and
WHEREAS, this ordinance responds to Council’s direction to address the housing crisis in the City by creating an incentive program targeted at increasing the feasibility for previously entitled housing projects that have not pulled building permits to date; and WHEREAS, this ordinance will create flexibility in the AHPP off-site affordable housing option by removing the requirement that the Certificate of Occupancy for the 5 affordable housing be issued before the Certificate of Occupancy for the market-rate housing, subject to alternative means of securing performance for production of the affordable units; and
WHEREAS, to incentivize the production of housing units, this ordinance will further ensure that housing projects that provide units offsite in accordance with the pilot program are eligible for local density bonuses, incentives and concessions and waivers and modifications equivalent to those provided for in Chapter 9.22, Density Bonus.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. New Section 9.64.065 is hereby added to the Santa Monica Municipal Code and shall read in its entirety as follows:

Section 9.64.065 Off-Site Affordable Housing
A. Definitions. As used in this Section:

1. “100% affordable housing project” means a 100% affordable housing project as defined in Section 9.52.020.0050.

2. “Affordability covenants” means 75-year affordability covenants that are included in a recorded deed restriction, in form approved by the City Attorney.

3. “Affordable housing provider” means an affordable housing provider reasonably approved by the City.

4. “Applicant” means the applicant, or its successors in interest, for a discretionary and ministerial City permit applicable to a multiple-unit project.

5. “Building permit” means a final building permit issued by the City’s Building Official (excluding grading or early start construction permits). 6 6. “Gap financing amount” means the amount of financing necessary to complete a 100% affordable housing project assuming that (a) the off-site affordable project will obtain a 4% federal Low-Income Housing Tax Credit and/or tax-exempt bond allocation; and (b) that there will be no land acquisition costs. The gap financing amount shall be $150,000, per offsite affordable unit to be constructed within the 100% affordable housing project. The gap financing amount shall be increased annually, commencing on the first anniversary from the effective date of this ordinance, by the last published annual average in the ENR Building Cost Index (BCI) for the Los Angeles region, but shall not exceed an annual increase of five (5) percent. The gap financing amount should be calculated from the effective date of the ordinance until deposited into escrow in accordance with Section 9.64.065(D).

7. “Multiple-unit project” means an eligible multiple-unit project pursuant to Section 9.64.065(B).

8. “Multiple-unit project property” means the property on which a multiple-unit project will be built.

9. “Off-site property” means a clean, uncontaminated property in the location specified in Section 9.64.060(E).

10. “Option” means a purchase option for the off-site property that may be exercised by the City or an affordable housing provider, at the election of the City, for the purchase amount of one hundred dollars ($100.00).

11. “Option agreement” means a purchase option agreement, including escrow instructions upon exercise of the Option, approved as to form by the City Attorney, and executed by the City or an affordable housing provider, at the election of the City, and the 7 owner of the off-site property. The option agreement shall be recorded in the official records of Los Angeles County.

12. “Protected unit(s)” means any of the following:
a. Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years. b. Residential dwelling units that are or were subject to any form of rent or price control through a public entity’s valid exercise of its police power within the past five years.
c. Residential dwelling units that are or were occupied by lower or very low-income households within the past five years.
d. Residential dwelling units that were withdrawn from rent or lease in accordance with California Government Code Sections 7060 et seq. within the past 10 years.

13. “Rehabilitation property” means a property proposed for substantial rehabilitation of units pursuant to Section 9.64.065(E).

14. “Uncontaminated property” means a property free from hazardous substances, as defined under state and federal law.

B. Eligible Multiple-Unit Projects. In order for Applicants to use the provisions of this Section 9.64.065, each multiple-unit project shall contain 6 or more residential units; shall have obtained final approval of all required discretionary and ministerial City permits that have not expired, except for Architectural Review Board approval and post entitlement phase permits, as 8 defined in Government Code Section 65913.3(j)(3), on or before August 12, 2025; and shall have submitted a complete application to use the provisions of this Section 9.64.065 within the 1000 unit cap and/or prior to September 30, 2025; provided, however, that except as otherwise expressly provided in Section (D)(5)(b), herein, multiple-unit projects that have obtained a building permit, are under construction, or have been completed are not eligible. The applicant of an entitled multiple-unit project that meets the requirements of Section 9.64.065.B may also use the provisions of Section 9.64.065 to satisfy the requirements of Section 9.64.060 for a project if the applicant obtains a new entitlement for the same multiple-unit property prior to December 31, 2026.

C. Exclusions. Nothing in this Section 9.64.065 shall conflict with or supersede state or local requirements for on-site replacement of protected units, including, but not limited to, those set forth in the Housing Crisis Act of 2019, as amended from time to time, Government Code Sections 66300 et seq., and Santa Monica Municipal Code Chapter 9.34, Residential Unit Replacement Requirements.

D. Alternative Off-Site Option. Notwithstanding Section 9.64.040(B), an applicant for a multiple-unit project may satisfy the affordable housing obligation in Chapter 9.64 by providing affordable housing units in a 100% affordable housing project on an off-site property in accordance with this section if the applicant complies with the following requirements:

1. The requirements of subsections (B) through (E), and (I) of Section 9.64.060 shall apply and be met by the applicant.
9 2. The off-site property shall also meet the following requirements:
a. The off-site property shall not have any lien or encumbrance on title that would prevent the recordation of an option agreement and affordability covenants in first priority position on title in favor of the City. b. The off-site property shall be owned in whole or in part and operated by an affordable housing provider reasonably approved by the City for the life of the 100% affordable housing project.

3. Requirements for Affordable Units. The affordable units in the 100% affordable housing project shall be rental units and shall comply with the provisions of subsections (E)(2)-(5) of Section 9.64.050, unless modified pursuant to Section

9.64.065(G). The number of off-site affordable units in the 100% affordable housing project shall be calculated as set forth in Section 9.64.065(H).

4. Annual Report. The affordable housing provider operating the 100% affordable housing project shall submit an annual report pursuant to the Affordability Covenants recorded on the off-site affordable housing property as discussed in Section

9.64.065(D).

5. Additional Requirements for Off-Site Units.
a. The applicant shall satisfy all the following requirements prior to and as a condition of issuance of a building permit for any multiple-unit project:
i. Identify the location of the off-site property and identify each multiple-unit project that will locate its required affordable housing units in the 100% affordable housing project to be constructed on the off-site property, and the number, bedroom mix, size, and affordability level of units 10 in the 100% affordable housing project that will be attributed to each multiple-unit project. Designated units in the 100% affordable housing project shall not be counted more than once to satisfy the required affordable housing units required for each multiple-unit project. ii. Identify and enter into an agreement with an affordable housing provider that will own, in whole or in part, and operate the 100% affordable housing project.
iii. The applicant shall procure a Phase 1 Environmental Site Assessment (ESA) of the off-site property, and a Phase II ESA of the offsite property, if necessary, conducted by a City approved experienced environmental professional, to determine the potential presence on or under the off-site property of hazardous waste, as defined under state and federal laws. If contaminants are detected in soil at or above regulatory levels, then the results of the soil sampling shall be shared with the City reviewed and acted upon by the appropriate regional, state, or local regulatory agencies as needed. If remediation is necessary, a No Further Action letter or similar documentation indicating case closure shall be obtained under the appropriate oversight agency prior to project occupancy. City has the right in its reasonable discretion to reject any off-site property that indicates the potential presence of hazardous waste and/or require the applicant to execute an environmental indemnity agreement in form approved by the City Attorney. In the event that the City rejects the off-site property due to the potential presence of hazardous waste, applicant shall have the 11 opportunity to propose an alternate off-site location, subject to the same requirements under Section 9.64.065(D) or proceed with alternative options under Section 9.64.065(E) and (F).
b. The applicant of a multiple-unit project located in the Coastal Zone with an approved Coastal Development Permit requiring an on-site affordability covenant that has already been recorded against the multiple-unit project property may be eligible to relocate the affordable units to an off-site property pursuant to this Section 9.64.065 any time (1) after the California Coastal Commission has approved the relocation of the affordable units to an off-site property without any other material changes to the terms and/or conditions of the Coastal Development Permit; and (2) prior to issuance of a certificate of occupancy for the multiple-unit project; provided, however, that all other requirements under Section 9.64.065(D) are satisfied.
c. Prior to, and as a condition of, issuance of the first building permit issued for any multiple-unit project, or issuance of the first certificate of occupancy for a multiple-unit project located in the Coastal Zone, the applicant shall place the Gap Financing Amount for that multiple-unit project in an interest-bearing escrow account and enter into a joint escrow agreement executed by the City or an affordable housing provider, at the election of the City, and the applicant, with instructions that provide as follows:
i. The Gap Financing Amount shall be distributed to the City or an affordable housing provider at no cost to either the City or affordable housing provider, at the election of the City, if construction of the off-site 12 affordable housing project does not commence within (a) forty-eight (48) months following the issuance of the first building permit for any multiple unit project not located in the Coastal Zone, or (b) eighteen (18) months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment that allows a multiple-unit project in the Coastal Zone to locate its affordable units on an off-site property; provided, that the City may grant a twelve (12) month extension by making a written finding of good cause prior to the expiration of the initial forty-eight (48) month term.
ii. If construction of the 100% affordable housing project does commence within the applicable forty-eight (48) months following the issuance of the first building permit for a multiple-unit project, or eighteen (18) months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment that allows a multiple-unit project in the Coastal Zone to locate its affordable units on an off-site property; or within the twelve (12) month extension period if an extension is granted by the City, then the Gap Financing Amount shall be returned to the applicant upon applicant’s deposit into the joint escrow account of a ready-to-issue building permit letter from the City to construct the 100% affordable housing project on the off-site property.

Following receipt by the escrow officer of the ready-to issue building permit letter, the Gap Financing Amount shall be disbursed to the applicant. 13 iii. For purposes of this subsection (c)(i) and (c)(ii), “commence” means that the project has received a building permit and construction activities begin on the site.

7. Unit Mix. Notwithstanding anything to the contrary herein, affordable units proposed for the off-site property shall not include studio units.

E. Substantial Rehabilitation of Units at an Off-Site Property in lieu of New Construction. Notwithstanding Section 9.64.040(B), and excluding any required affordable or rent controlled replacement units that may be required pursuant to Government Code Sections 66300.5 and 66300.6, an applicant for a multiple-unit project 16 may satisfy the affordable housing obligation in Chapter 9.64 by substantial rehabilitation of affordable housing units at an off-site property, subject to the following conditions:

1. Substantially Rehabilitated. Units to be substantially rehabilitated at an off-site property must comply with the following provisions:
a. Prior to issuance of a building permit for a multiple-unit project, the City Council must determine at a public hearing that the units proposed for substantial rehabilitation at an off-site property must be at imminent risk of loss to the housing stock and the units proposed for substantial rehabilitation are unfit for human habitation due to the existence of at least four violations of the conditions listed in subdivisions (a) to (g), inclusive, of Section 17995.3 of the Health and Safety Code.
b. The applicant must commit to providing the displaced tenants with relocation assistance in accordance with Section 4.36.100 of the Santa Monica Municipal Code, provided that (i) if the owner elects to satisfy the temporary relocation obligations by payment of the daily per diem, the total amount paid to the tenant shall be no less than four times the tenant’s rent; and (ii) if the owner elects to satisfy their temporary relocation obligations by providing a comparable replacement unit, the owner shall additionally pay the tenant four times the tenant’s monthly rent and shall reduce the tenant’s monthly rent during relocation, if necessary, so that the rent does not exceed 30% of the tenant’s income. c. Any displaced tenant, regardless of income status for displaced tenants of rent-controlled units, must have the right to reoccupy the rehabilitated units.
17 d. Rehabilitated units must have long-term affordability requirements for lower income households, for a term of not less than 75 years. e. As a condition to issuance of a certificate of occupancy for any multiunit property that will satisfy the affordable housing obligation in Chapter 9.64 by substantial rehabilitation of off-site units, and prior to initial occupancy after rehabilitation, the City’s Building Official shall issue a certificate of occupancy indicating compliance with all applicable state and local building code and health and safety code requirements for the substantially rehabilitated units.

2. Additional Requirements for Substantially Rehabilitated Units. a. Prior to obtaining a building permit for a multiple-unit project, the applicant shall provide a rehabilitation plan which has been approved by the City’s Housing Division Manager that includes the following information:
i. Documentation evidencing applicant’s ownership or control of the rehabilitation property during the period of rehabilitation; ii. A property assessment report performed by a licensed appraiser for the rehabilitation property, including all units proposed for substantial rehabilitation;
iii. Identification and location of the units that will be substantially rehabilitated;
iv. Scope and budget for substantial rehabilitation;
v. Demonstrated sources and uses of financing required for substantial rehabilitation; and
18 b. Applicant shall indicate the exact location of units that will be provided to very and lower--income households.
c. Applicant shall comply with Chapter 8.100, Tenant Protection During Construction, as amended from time to time.
d. The applicant or owner shall provide a current title report evidencing that no monetary liens are recorded on title of the off-site property hosting the substantially rehabilitated units.
e. Execute and record on the property hosting the substantially rehabilitated units a 75-year deed restriction to ensure that the rehabilitated units are restricted for rental to qualifying lower income households at an affordable rent, in form approved by the City Attorney.
f. Notwithstanding anything to the contrary herein, substantially rehabilitated units shall not include studio units.

F. In Lieu Fee Option for Off-Site Housing (without land provided).

1. Notwithstanding Section 9.64.070, an applicant for a multiple-unit project may satisfy the affordable housing obligation in Chapter 9.64 by paying an in-lieu fee based on the following formula:
(Base Unit Fee per Square Foot) x (total square feet of the residential floor area in the multiple-unit project)

2. For purposes of this Section, the City's base unit fee per square foot shall be established pursuant to Section 9.64.070 by resolution of the City Council.

Commencing on July 1, 2026, and on July 1st of each fiscal year thereafter, the City's 19 base unit fee per square foot shall be adjusted based on changes in construction costs and land costs.

3. The affordable housing fee shall be paid prior to issuance of a building permit for any multiple-unit project utilizing Section 9.64.065(F).

4. The City shall deposit any payment made pursuant to this Section

9.64.065(F) in a reserve account separate from the General Fund to be used only for development of affordable housing, administrative costs related to the production of this housing, substantial rehabilitation of existing affordable housing, a City sponsored program of rental subsidies for lower income Santa Monica residents, and monitoring and evaluation of this affordable housing production program.

G. Local Incentive Density Bonus. Multiple-unit projects satisfying their affordable housing obligation in lieu of Chapter 9.64 in accordance with Section 9.64.065 shall be eligible for a local incentive of density bonuses, incentives and concessions, waivers and reductions of development standards, and reduced parking ratios equivalent to those set forth in Chapter 9.22, Density Bonus, as if the affordable units were provided on the site of the multiple-unit project. Further, as an additional local density bonus, any on-site affordable units that were formerly part of an approved multiple-unit project can convert to market-rate units in the revised multiple-unit project. Any off-site affordable housing project shall be eligible for density bonuses, incentives and concessions, waivers and reductions of development standards, and reduced parking ratios under State Density Bonus Law.

H. Calculation of Off-Site Affordable Units. The number of affordable units to be provided in the 100% affordable housing project shall be calculated as follows:
20 1. Eligible Housing Projects Entitled Without Additional Very Low or Moderate-Income Units to Obtain Additional Density Bonuses Pursuant to Government Code Section 65915(v): For housing projects previously entitled that do not propose additional moderate-income units to obtain additional density bonuses pursuant to Government Code section 65915(v), any applicant utilizing the off-site options under this Section 9.64.065 shall provide no less than fifteen percent (15%) of the base density number of units, prior to the award of any market rate density bonus units under State Density Bonus Law (California Government Code Section 65915 et. seq.) and Chapter 9.22, Density Bonus within each multiple-unit project as:
a. Affordable deed-restricted units in an offsite 100% affordable housing project in accordance with subsection (D),
b. Substantially rehabilitated deed-restricted units in accordance with subsection (E), or
c. Equivalent in-lieu fee in accordance with subsection (F).

By way of illustration, if the base density number of units (prior to the award of a market rate density bonus) is 100 units, then the applicant must provide 15 deed restricted units at the designated off-site property.

2. Eligible Housing Projects Entitled With Additional Proposed Density Bonuses Pursuant to Government Code Section 65915(v): For housing projects previously entitled with additional very low income or moderate-income units and proposed additional density bonuses pursuant to Government Code Section 65915(v), any applicant utilizing the off-site options under this Section 9.64.065 shall provide no 21 less than the percentage of very low or moderate income units as required in the chart contained in Government Code Section 65915(2) as calculated against the base density.:
a. Affordable deed-restricted units in a 100% affordable housing project in accordance with subsection (D);
b. substantially rehabilitated deed-restricted units in accordance with subsection (E); or
c. Equivalent in-lieu fee in accordance with subsection (F).

By way of illustration, if the base density number of units (prior to the award of a market rate density bonus) is 100 units, and the applicant of a multiple-unit project has obtained approval of an additional 50 percent density bonus (for a total 100 percent density bonus) by providing additional Moderate Income units pursuant to Government Code Section 65915(v)(2), then the applicant must provide 30 deed restricted units at the designated off-site property.

SECTION 2. New Section 9.64.075 is hereby added to the Santa Monica Municipal Code and shall read in its entirety as follows:

Section 9.64.075 Off-Site Affordable Housing
A. Definitions. As used in this Section:

1. “100% affordable housing project” means a 100% affordable housing project as defined in Section 9.52.020.0050.

2. “Affordability covenants” means 75-year affordability covenants that are included in a recorded deed restriction, in form approved by the City Attorney.

3. “Affordable housing provider” means an affordable housing provider reasonably approved by the City.
22 4. “Applicant” means the applicant, or its successors in interest, for a discretionary and ministerial City permit applicable to a multiple-unit project.

5. “At-risk covenants” means covenants that are contained in a recorded deed restriction to restrict rental units for occupancy by lower income households at affordable rent for lower income households, where the covenants are set to expire in accordance with the terms of the deed restriction within five (5) years from the date an owner or applicant files an application to use this Section 9.64.075.

6. “Building permit” means a final building permit issued by the City’s Building Official (excluding grading or early start construction permits).

7. “Chapter 6.96” means Chapter 6.96 of the Santa Monica Municipal Code, in effect as of September 30, 2025.

8. “City Manager” means the City Manager or his or her designee.

9. “Community Benefit Payment” means the payment to the City by the owner or applicant in an amount equal to the amount of real estate transfer taxes owed to the City pursuant to Chapter 6.96 of the Santa Monica Municipal Code, in effect as of September 30, 2025.

10. “Gap financing amount” means the amount of financing necessary to complete a 100% affordable housing project assuming that (a) the off-site affordable project will obtain a 4% federal Low-Income Housing Tax Credit and/or tax-exempt bond allocation; and (b) that there will be no land acquisition costs. The gap financing amount shall be $160,000, per offsite affordable unit to be constructed within the 100% affordable housing project. Commencing on July 1, 2026, and on July 1st of each fiscal year thereafter, the gap financing amount shall be adjusted by Council resolution based on 23 changes in costs for building construction, as evidenced by the ENR Building Cost Index (BCI) for the Los Angeles region. The gap financing amount should be calculated from the effective date of the ordinance until deposited into escrow in accordance with Section

9.64.075(D).

11. “Measure GS Transfer” means a transfer of the multiple-unit project and/or multiple-unit project property, or portion thereof, which is subject to taxation under the City’s Third Tier Tax Rate, as defined in Chapter 6.96.

12. “Multiple-unit project” means an eligible multiple-unit project pursuant to Section 9.64.075(B).

13. “Multiple-unit project property” means the property on which a multiple-unit project will be built.

14. “Off-site property” means a clean, uncontaminated property in the location specified in Section 9.64.060(E).

15. “Option” means a purchase option for the off-site property that may be exercised by the City or an affordable housing provider, at the election of the City, for the purchase amount of one hundred dollars ($100.00).

16. “Option agreement” means a purchase option agreement, including escrow instructions upon exercise of the Option, approved as to form by the City Attorney, and executed by the City or an affordable housing provider, at the election of the City, and the owner of the off-site property. The option agreement shall be recorded in the official records of Los Angeles County.

17. “Owner” or “applicant” means the owner or applicant of the multiple-unit project.
24 18. “Performance Deed of Trust” means a performance deed of trust recorded against the multiple-unit property to secure the Community Benefit Payment.

19. “Protected unit(s)” means any of the following:
a. Residential dwelling units that are or were subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income within the past five years. b. Residential dwelling units that are or were subject to any form of rent or price control through a public entity’s valid exercise of its police power within the past five years.
c. Residential dwelling units that are or were occupied by lower or very low-income households within the past five years.
d. Residential dwelling units that were withdrawn from rent or lease in accordance with California Government Code Sections 7060 et seq. within the past 10 years.

20. “Rehabilitation property” means a property proposed for substantial rehabilitation of units pursuant to Section 9.64.075(E).

21. “Right of First Refusal Agreement” means an agreement that ensures the City has the priority to purchase the off-site property before a third-party prospective buyer can. Upon receiving an offer from third party, the owner must present this offer to the City, who can choose to pay the owner no more than fair market value or let it pass to the third party.

22. “Transfer” means any transfer of beneficial ownership of a multiple-unit project and/or multiple-unit project property, or portions thereof, that would be subject to 25 taxation under California Revenue and Taxation Code Section 11911(a) and is not exempt from taxation under Sections 11921 (instrument securing debt), 11923 (conveyances under reorganization or adjustment plans), or 11924 (conveyances under order of securities and exchange commission). The term “transfer” includes, without limitation, any deed, instrument or writing to which the United States or any agency or instrumentality thereof, any state or territory, or political subdivision thereof, is acquiring title to a multipleunit project and/or multiple-unit property.

23. “Uncontaminated property” means a property free from hazardous substances, as defined under state and federal law.

E. Eligible Multiple-Unit Projects. In order for Applicants to use the provisions of this Section 9.64.075, each multiple-unit project shall contain 6 or more residential units; shall have obtained final approval of all required discretionary and ministerial City permits that have not expired, except for Architectural Review Board approval and post entitlement phase permits, as defined in Government Code Section 65913.3(j)(3) on or before August 12, 2025; and shall have submitted a complete application to use the provisions of this Section 9.64.075 after September 30, 2025; provided, however, that except as otherwise expressly provided in Section (D)(5)(b), herein, multiple-unit projects that have obtained a building permit, are under construction, or have been completed are not eligible. The applicant of an entitled multiple-unit property that meets the requirements of Section 9.64.075.B may also use the provisions of Section 9.64.075 to satisfy the requirements of Section 9.64.060 for a project if 26 the applicant obtains a new entitlement for the same multiple-unit project prior to December 31, 2026.

C. Exclusions. Nothing in this Section 9.64.075 shall conflict with or supersede state or local requirements for on-site replacement of protected units, including, but not limited to, those set forth in the Housing Crisis Act of 2019, as amended from time to time, Government Code Sections 66300 et seq., and Santa Monica Municipal Code Chapter

9.34, Residential Unit Replacement Requirements.

1. The requirements of subsections (B) through (E), and (I) of Section 9.64.060 shall apply and be met by the applicant.

2. The off-site property shall also meet the following requirements:
a. The off-site property shall not have any lien or encumbrance on title that would prevent the recordation of an option agreement and affordability covenants in first priority position on title in favor of the City. b. The off-site property shall be owned in whole or in part and operated by an affordable housing provider reasonably approved by the City for the life of the 100% affordable housing project.
27 3. Requirements for Affordable Units. The affordable units in the 100% affordable housing project shall be rental units, unless modified pursuant to Section

9.64.075(H). The number of off-site affordable units in the 100% affordable housing project shall be calculated as set forth in Section 9.64.075(I).

9.64.075(D).

5. Additional Requirements for Off-Site Units.
a. The applicant shall satisfy all the following requirements prior to and as a condition of issuance of a building permit for any multiple-unit project:
i. Identify the location of the off-site property and identify each multiple-unit project that will locate its required affordable housing units in the 100% affordable housing project to be constructed on the off-site property, and the number, bedroom mix, size, and affordability level of units in the 100% affordable housing project that will be attributed to each multiple-unit project. Designated units in the 100% affordable housing project shall not be counted more than once to satisfy the required affordable housing units required for each multiple-unit project. ii. Identify and enter into an agreement with an affordable housing provider that will own, in whole or in part, and operate the 100% affordable housing project.
28 iii. The applicant shall procure a Phase 1 Environmental Site Assessment (ESA) of the off-site property, and a Phase II ESA of the offsite property, if necessary, conducted by a City approved experienced environmental professional, to determine the potential presence on or under the off-site property of hazardous waste, as defined under state and federal laws. If contaminants are detected in soil at or above regulatory levels, then the results of the soil sampling shall be shared with the City reviewed and acted upon by the appropriate regional, state, or local regulatory agencies as needed. If remediation is necessary, a No Further Action letter or similar documentation indicating case closure shall be obtained under the appropriate oversight agency prior to project occupancy. City has the right in its reasonable discretion to reject any off-site property that indicates the potential presence of hazardous waste and/or require the applicant to execute an environmental indemnity agreement in form approved by the City Attorney. In the event that the City rejects the off-site property due to the potential presence of hazardous waste, applicant shall have the opportunity to propose an alternate off-site location, subject to the same requirements under Section 9.64.075(D) or proceed with alternative options under Section 9.64.075(E), (F) and (G).
b. The applicant of a multiple-unit project located in the Coastal Zone with an approved Coastal Development Permit requiring an on-site affordability covenant that has already been recorded against the multiple-unit project property may be eligible to relocate the affordable units to an off-site property pursuant to 29 this Section 9.64.075 any time (1) after the California Coastal Commission has approved the relocation of the affordable units to an off-site property without any other material changes to the terms and/or conditions of the Coastal Development Permit; and (2) prior to issuance of a certificate of occupancy for the multiple-unit project; provided, however, that all other requirements under Section 9.64.075(D) are satisfied.
c. Prior to, and as a condition of, issuance of the first building permit issued for any multiple-unit project, or issuance of the first certificate of occupancy for a multiple-unit project located in the Coastal Zone, the applicant shall place the Gap Financing Amount for that multiple-unit project in an interest-bearing escrow account and enter into a joint escrow agreement executed by the City or an affordable housing provider, at the election of the City, and the applicant, with instructions that provide as follows:
i. The Gap Financing Amount shall be distributed to the City or an affordable housing provider at no cost to either the City or affordable housing provider, at the election of the City, if construction of the off-site affordable housing project does not commence within (a) forty-eight (48) months following the issuance of the first building permit for any multipleunit project not located in the Coastal Zone, or (b) eighteen (18) months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment that allows a multiple-unit project in the Coastal Zone to locate its affordable units on an off-site property; provided, that the City may grant a twelve (12) 30 month extension by making a written finding of good cause prior to the expiration of the initial forty-eight (48) month term.
ii. If construction of the 100% affordable housing project does commence within the applicable forty-eight (48) months following the issuance of the first building permit for a multiple-unit project, or eighteen (18) months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment that allows a multiple-unit project in the Coastal Zone to locate its affordable units on an off-site property; or within the twelve (12) month extension period if an extension is granted by the City, then the Gap Financing Amount shall be returned to the applicant upon applicant’s deposit into the joint escrow account of a ready-to-issue building permit letter from the City to construct the 100% affordable housing project on the off-site property.

Following receipt by the escrow officer of the ready-to issue building permit letter, the Gap Financing Amount shall be disbursed to the applicant. iii. For purposes of this subsection (c)(i) and (c)(ii), “commence” means that the project has received a building permit and construction activities begin on the site.

6. Prior to and as a condition of issuance of any building permit(s) for the first multiple-unit project(s), or prior to and as a condition of issuance of any certificate of occupancy for a multiple-unit project in the Coastal Zone, the applicant shall complete the following steps:
31 a. Execute and record on the off-site property an Option Agreement that authorizes the City or an affordable housing provider, at the election of the City, to exercise the Option in the event that construction of the 100% affordable housing project does not commence (a) within forty-eight (48) months following the issuance of the first building permit for any multiple-unit project not located in the Coastal Zone that is locating its affordable housing units in the off-site affordable housing project, or (b) eighteen (18) months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment to allow a multiple-unit project in the Coastal Zone to locate its affordable units in the off-site affordable housing project, or within the twelve (12) month extension period if an extension is granted by the City. Upon exercise of the Option and as such process is provided in the Option Agreement, the fee simple interest in the property shall transfer to the City only if construction of the off-site 100% affordable housing project does not commence (a) within forty-eight (48) months following the issuance of the first building permit for any multiple-unit project not located in the Coastal Zone that is locating its affordable housing units in the off-site affordable housing project, or (b) eighteen (18) months following the date the Coastal Commission approves a Coastal Development Permit or Coastal Development Permit amendment to allow a multiple-unit project in the Coastal Zone to locate its affordable units in the off-site affordable housing project, unless the City grants a twelve (12) month extension for good cause in writing prior to the expiration of the forty-eight (48) month term. If construction of the off-site 100% affordable housing project does commence within the applicable forty-eight (48) 32 month term, or within the twelve (12) month extension period if an extension is granted by the City, then the Option Agreement shall automatically become null and void and shall be removed from title upon issuance of a certificate of occupancy for the 100% affordable housing project. For purposes of this subsection (6)(a), “commence” has the meaning given in subsection (5)(c)(iii). c. Concurrently with the recordation of the Option Agreement on the offsite property, the applicant or owner shall execute and record on each multipleunit property a Notice of Off-Site Affordability Covenants that discloses the location of the off-site property and the description of the Affordability Covenants to be recorded on the off-site property. The Notice of Off-Site Affordability Covenants shall not impose any duty on the applicant or owner of the multiple-unit property to comply with any affordability requirements on-site and shall merely serve as notice that the affordability requirements of Chapter 9.64 are to be satisfied off-site. The Notice of Off-Site Affordability Covenants shall be in a form approved by the City Attorney. Concurrently with the recordation of the Option Agreement on the offsite property, the applicant or owner shall execute and record on the off-site housing property Affordability Covenants in compliance with Section 9.64.130, which shall be recorded ahead of any monetary liens. If the applicant or owner has recorded affordability covenants on the multiple unit property, and if the owner desires to utilize the provisions of Section 9.64.075. D, then the applicant or owner must request release of the on-site affordability covenants on the multiple unit property prior to issuance of a building permit on the multiple unit property and such covenants shall be released by the City concurrently with the recording of the 33 Affordability Covenants on the off-site housing property, provided that the applicant or owner has complied with all other conditions set forth in Section 9.64.075.B and D. Concurrently with the recordation of the Affordability Covenants on the off-site property, the applicant or owner shall execute and record on the off-site housing property a Right of First Refusal Agreement in form approved by the City Attorney, which have a concurrent term with the Affordability Covenants and shall be recorded ahead of any monetary liens; provided, however, that If, at any time during the term of the Right of First Refusal Agreement, the owner proposes to refinance any of the existing indebtedness on the off-site property or intends to borrow additional funds after commencement of the term of the Right of First Refusal Agreement, the City Manager may approve subordination of the Right of First Refusal to the new secured (re)financing. The City shall not unreasonably withhold its approval if: (i) the terms and conditions of the additional loan or refinanced loan provide the City with such security and remedies as the City deems adequate in the City’s sole discretion; (ii) the additional loan or refinanced loan is consistent with the City’s objectives to preserve the City's affordable housing stock; (iii) the owner is not taking cash out of the equity of the off-site property for any purposes other than effecting necessary structural and equipment replacements and improvements of a capital nature for the property; and (iv) the additional indebtedness will not impair the security of the Affordability Covenants and/or Right of First Refusal.
d. The applicant or owner shall provide a current title report evidencing that no monetary liens are recorded on title of the off-site property at the time the 34 Option Agreement, Affordability Covenants, and Right of First Refusal Agreement are recorded. The Option Agreement, Affordability Covenants, and Right of First Refusal Agreement shall each provide that no monetary liens may be recorded on the off-site property until the building permit is issued for construction of the 100% affordable housing project.
e. If an applicant for a multiple-unit project located in the Coastal Zone timely satisfies the requirements above, the City shall execute a termination of the preexisting multiple-unit project’s onsite affordable covenant agreement within ten (10) business days of issuance of the building permit for the 100% affordable housing project.
f. Prior and as a condition to obtaining a building permit for any multiple-unit project, owner or applicant shall submit a complete entitlement application for the 100% affordable housing project.
g. Prior to and as a condition to obtaining a certificate of occupancy for any multiple-unit project, owner or applicant shall have submitted a complete set of construction plans for the 100% affordable housing project, as reasonably determined by the City’s Building Official.
h. Notwithstanding any other provisions in this ordinance to the contrary, City may exercise the Option to purchase the off-site property in accordance with the Option Agreement before issuance of the certificate of occupancy for any multiple-unit project if the owner or applicant does not submit a complete set of construction plans for the off-site property within sixty (60) days of 35 applicant’s or owner’s request for issuance of a certificate of occupancy for any multiple-unit project.

7. Unit Mix. Notwithstanding anything to the contrary herein, affordable units proposed for the off-site property shall not include studio units.

E. Substantial Rehabilitation of Units at an Off-Site Property in lieu of New Construction. Notwithstanding Section 9.64.040(B), and excluding any required affordable or rent controlled replacement units that may be required pursuant to Government Code Sections 66300.5 and 66300.6, an applicant for a multiple-unit project may satisfy the affordable housing obligation in Chapter 9.64 by substantial rehabilitation of affordable housing units at an off-site property, subject to the following conditions:

1. Substantially Rehabilitated. Units to be substantially rehabilitated at an off-site property must comply with the following provisions:
a. Prior to issuance of a building permit for a multiple-unit project, the City Council must determine at a public hearing that the units proposed for substantial rehabilitation at an off-site property must be at imminent risk of loss to the housing stock and the units proposed for substantial rehabilitation are unfit for human habitation due to the existence of at least four violations of the conditions listed in subdivisions (a) to (g), inclusive, of Section 17995.3 of the Health and Safety Code.
b. The applicant must commit to providing the displaced tenants with relocation assistance in accordance with Section 4.36.100 of the Santa Monica Municipal Code, provided that (i) if the owner elects to satisfy the temporary relocation obligations by payment of the daily per diem, the total amount paid to 36 the tenant shall be no less than four times the tenant’s rent; and (ii) if the owner elects to satisfy their temporary relocation obligations by providing a comparable replacement unit, the owner shall additionally pay the tenant four times the tenant’s monthly rent and shall reduce the tenant’s monthly rent during relocation, if necessary, so that the rent does not exceed 30% of the tenant’s income. c. Any displaced tenant, regardless of income status for displaced tenants of rent-controlled units, must have the right to reoccupy the rehabilitated units.
d. Rehabilitated units must have long-term affordability requirements for lower income households, for a term of not less than 75 years. e. As a condition to issuance of a certificate of occupancy for any multiunit property that will satisfy the affordable housing obligation in Chapter 9.64 by substantial rehabilitation of off-site units, and prior to initial occupancy after rehabilitation, the City’s Building Official shall issue a certificate of occupancy indicating compliance with all applicable state and local building code and health and safety code requirements for the substantially rehabilitated units.

2. Additional Requirements for Substantially Rehabilitated Units. a. Prior to obtaining a building permit for a multiple-unit project, the applicant shall provide a rehabilitation plan which has been approved by the City’s Housing Division Manager that includes the following information:
i. Documentation evidencing applicant’s ownership or control of the rehabilitation property during the period of rehabilitation; 37 ii. A property assessment report performed by a licensed appraiser for the rehabilitation property, including all units proposed for substantial rehabilitation;
iii. Identification and location of the units that will be substantially rehabilitated;
iv. Scope and budget for substantial rehabilitation;
v. Demonstrated sources and uses of financing required for substantial rehabilitation; and
b. Applicant shall indicate the exact location of units that will be provided to very and lower--income households.
c. Applicant shall comply with Chapter 8.100, Tenant Protection During Construction, as amended from time to time.
d. The applicant or owner shall provide a current title report evidencing that no monetary liens are recorded on title of the off-site property hosting the substantially rehabilitated units.
e. Execute and record on the property hosting the substantially rehabilitated units a 75-year deed restriction to ensure that the rehabilitated units are restricted for rental to qualifying lower income households at an affordable rent, in form approved by the City Attorney.
f. Notwithstanding anything to the contrary herein, substantially rehabilitated units shall not include studio units.

F. In Lieu Fee Option for Off-Site Housing (without land provided). 38 1. Notwithstanding Section 9.64.070, an applicant for a multiple-unit project may satisfy the affordable housing obligation in Chapter 9.64 by paying an in-lieu fee based on the following formula:
(Base Unit Fee per Square Foot) x (total square feet of the residential floor area in the multiple-unit project)

2. For purposes of this Section, the City's base unit fee per square foot shall be established pursuant to Section 9.64.070 by resolution of the City Council.

Commencing on July 1, 2026, and on July 1st of each fiscal year thereafter, the City's base unit fee per square foot shall be adjusted based on changes in construction costs and land costs.

3. The affordable housing fee shall be paid prior to issuance of a building permit for any multiple-unit project utilizing Section 9.64.075(F).

4. The City shall deposit any payment made pursuant to this Section

9.64.075(F) in a reserve account separate from the General Fund to be used only for development of affordable housing, administrative costs related to the production of this housing, substantial rehabilitation of existing affordable housing, a City sponsored program of rental subsidies for lower income Santa Monica residents, and monitoring and evaluation of this affordable housing production program.

G. Purchase of At-Risk Covenants. Notwithstanding Section 9.64.040(B), and excluding any required affordable or rent controlled replacement units that may be required pursuant to Government Code Sections 66300.5 and 66300.6, an owner or applicant for a multiple-unit project may satisfy the affordable housing obligation in 39 Chapter 9.64 by purchasing at-risk covenants on an off-site property, subject to the following conditions:
a. The term of the at-risk covenants shall be extended by recording of new Affordability Covenants in compliance with Section 9.64.130 with a term of seventy-five (75) years from the issuance of the building permit issued for any multiple-unit project to be issued a building permit.
b. The affordable units shall be rental units \. The number of affordable units shall be calculated as set forth in Section 9.64.075(I). c. The owner of the property shall submit an annual report pursuant to the new Affordability Covenants recorded on the off-site property as discussed in Section

9.64.075(D).

H. Local Incentive Density Bonus. Multiple-unit projects satisfying their affordable housing obligation in lieu of Chapter 9.64 in accordance with Section 9.64.075 shall be eligible for a local incentive of density bonuses, incentives and concessions, waivers and reductions of development standards, and reduced parking ratios equivalent to those set forth in Chapter 9.22, Density Bonus, as if the affordable units were provided on the site of the multiple-unit project. Further, as an additional local density bonus, any on-site affordable units that were formerly part of an approved multiple-unit project can convert to market-rate units in the revised multiple-unit project. Any off-site affordable housing project shall be eligible for density bonuses, incentives and concessions, waivers and reductions of development standards, and reduced parking ratios under State Density Bonus Law.
40 I. Calculation of Off-Site Affordable Units. The number of affordable units to be provided in the 100% affordable housing project shall be calculated as follows:

1. Eligible Housing Projects Entitled Without Additional Very Low or Moderate-Income Units to Obtain Additional Density Bonuses Pursuant to Government Code Section 65915(v): For housing projects previously entitled that do not propose additional moderate-income units to obtain additional density bonuses pursuant to Government Code section 65915(v), any applicant utilizing the off-site options under this Section 9.64.075 shall provide no less than fifteen percent (15%) of the base density number of units, prior to the award of any market rate density bonus units under State Density Bonus Law (California Government Code Section 65915 et. seq.) and Chapter 9.22, Density Bonus within each multiple-unit project as:
a. Affordable deed-restricted units in an offsite 100% affordable housing project in accordance with subsection (D);
b. Substantially rehabilitated deed-restricted units in accordance with subsection (E);
c. Equivalent in-lieu fee in accordance with subsection (F); or d. Purchase of at-risk covenants in accordance with subsection (G).

2. Eligible Housing Projects Entitled With Additional Proposed Density Bonuses Pursuant to Government Code Section 65915(v): For housing projects previously entitled with additional very low income or moderate-income units and 41 proposed additional density bonuses pursuant to Government Code Section 65915(v), any applicant utilizing the off-site options under this Section 9.64.075 shall provide no less than the percentage of very low or moderate income units as required in the chart contained in Government Code Section 65915(2) as calculated against the base density:
a. Affordable deed-restricted units in a 100% affordable housing project in accordance with subsection (D);
b. substantially rehabilitated deed-restricted units in accordance with subsection (E);
c. Equivalent in-lieu fee in accordance with subsection (F); or d. Purchase of at-risk covenants in accordance with subsection (G).

J. Administrative Fee. An administrative fee shall be assessed and paid to the City by the owner or applicant at the time of issuance of the building permit for any multipleunit project. The administrative fee shall be imposed to cover cost of administering and implementing the requirements of this Section and shall be set by City Council resolution.

K. Community Benefit Payment. In consideration for the local density bonus granted herein, solely in connection with the first transfer of a multiple-unit project and/or multiple-unit project property, or portion thereof, if such first transfer does not constitute a 42 Measure GS Transfer for any reason, the owner or applicant shall pay the Community Benefit Payment to City in the amount of 4.6% of the amount of consideration or value paid for the first transfer of the multiple-unit project and/or multiple-unit project property, or portion thereof.

1. No Change to Applicability of Chapter 6.96. Notwithstanding anything to the contrary herein, nothing in this Section 9.64.075 shall be interpreted to alter, modify, negate, reduce or void the applicability of Chapter 6.96 to any first or subsequent transfers of the multiple-unit project and/or multiple-unit project property, or portion thereof.

2. Security for the Community Benefit Payment. As a condition to obtaining a building permit for any multiple-unit project, the applicant or owner shall execute and record a Performance Deed of Trust on the multiple-unit project to secure the payment of the Community Benefit Payment to the City. Alternatively, in lieu of a Performance Deed of Trust, the City Manager may accept equivalent security in the form of an irrevocable standby letter of credit issued by an FDIC insured financial institution in form approved by the City Attorney.

3. Timing for Community Benefit Payment. The Community Benefit Payment shall be due upon first transfer of a multiple-unit project and/or a multiple-unit project property from the owner or applicant to a third-party, as set forth, below:
a. If Chapter 6.96 is in effect at the time of the transfer, the Community Benefit Payment shall be deemed as paid and the Performance Deed of Trust shall be reconveyed or, if accepted as an alternative to the Performance Deed of Trust, the irrevocable standby letter of credit shall be released, concurrently with the 43 transfer through escrow provided that the owner or applicant provides no less than thirty (30) days written notice of the transfer to the City. b. If Chapter 6.96 is not in effect at the time of the transfer for any reason, the owner or applicant shall be required to pay the Community Benefit Payment directly to the City no later than the date of the transfer and the Performance Deed of Trust shall be reconveyed or, if accepted as an alternative to the Performance Deed of Trust, the irrevocable standby letter of credit shall be released, concurrently with the transfer through escrow provided that the owner or applicant provides no less than thirty (30) days written notice of the transfer to the City.
c. If Chapter 6.96 is not in effect at the time of the transfer for any reason and Community Benefit Payment has not been paid prior to the transfer, the City may exercise its remedies under the Performance Deed of Trust, or, alternatively, draw down on the irrevocable standby letter of credit, to recover the Community Benefit Payment, plus all City costs to recover the Community Benefit Payment, including reasonable attorneys’ fees, in addition to any other remedies allowed by law.

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, are 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 44 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 30 days from its adoption.

APPROVED AS TO FORM:
_________________________
Heidi von Tongeln, Interim City Attorney

Santa Monica City CouncilJanuary 13, 2026

Santa Monica City Council
January 13, 2026