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(310) 451-2968 April 10, 2019 VIA E-MAIL Santa Monica Planning Commission 1685 Main Street, Room 212 Santa Monica, CA 90401 Re: Santa Monica Housing Council Our File No. 639.65 Dear Commissioners: This letter is being submitted on behalf of the Santa Monica Housing Council (“SMHC”) in response to questions raised by Commissioner Richard McKinnon at your April 3rd meeting. Our law firm serves as SMHC’s general counsel. SMHC is a California non-profit corporation that was duly formed in 1989. It currently has a 5-member board of directors consisting of the following people: Robert Sullivan (President), Bill Dawson (Vice-President), Joe Fitzsimmons (Chief Financial Officer), David Hibbert and Irma Vargas. SMHC’s purpose is to advocate for City of Santa Monica regulatory policies that facilitate Santa Monica’s need for more housing and oppose regulations that unreasonably inhibit new housing. SMHC’s advocacy has included appearing before various agencies of the City (including the City Council, the Planning Commission and the Rent Control Board). SMHC’s advocacy has also led to litigation against the City. SMHC’s prior litigation includes the following three cases: 1. Santa Monica Housing Council v. City of Santa Monica, Los Angeles Superior Court Case No. SC016169: Filed in 1992, this case successfully challenged a City ordinance that modified the City’s affordable housing requirements for new housing projects as an unlawful amendment to the City’s Housing Element. (State law mandates a specific procedure for Housing Element amendments including review by the California Department of Housing and Community Development, known as “HCD.” The Court issued a writ of mandate after ruling that the City had failed to comply with the statutorily required Housing Element amendment process.) [email protected]

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Page 1: Santa Monica Planning Commission 1685 Main Street, Room ...€¦ · Santa Monica Planning Commission 1685 Main Street, Room 212 Santa Monica, CA 90401 Re: Santa Monica Housing Council

(310) 451-2968

April 10, 2019

VIA E-MAIL

Santa Monica Planning Commission 1685 Main Street, Room 212 Santa Monica, CA 90401

Re: Santa Monica Housing Council

Our File No. 639.65 Dear Commissioners:

This letter is being submitted on behalf of the Santa Monica Housing Council (“SMHC”) in response to questions raised by Commissioner Richard McKinnon at your April 3rd meeting. Our law firm serves as SMHC’s general counsel.

SMHC is a California non-profit corporation that was duly formed in 1989. It currently has a 5-member board of directors consisting of the following people: Robert Sullivan (President), Bill Dawson (Vice-President), Joe Fitzsimmons (Chief Financial Officer), David Hibbert and Irma Vargas.

SMHC’s purpose is to advocate for City of Santa Monica regulatory policies that facilitate Santa Monica’s need for more housing and oppose regulations that unreasonably inhibit new housing. SMHC’s advocacy has included appearing before various agencies of the City (including the City Council, the Planning Commission and the Rent Control Board).

SMHC’s advocacy has also led to litigation against the City. SMHC’s prior litigation includes the following three cases:

1. Santa Monica Housing Council v. City of Santa Monica, Los Angeles Superior Court Case No. SC016169: Filed in 1992, this case successfully challenged a City ordinance that modified the City’s affordable housing requirements for new housing projects as an unlawful amendment to the City’s Housing Element. (State law mandates a specific procedure for Housing Element amendments including review by the California Department of Housing and Community Development, known as “HCD.” The Court issued a writ of mandate after ruling that the City had failed to comply with the statutorily required Housing Element amendment process.)

[email protected]

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Santa Monica Planning Commission April 10, 2019 Page 2

2. Santa Monica Housing Council v. City of Santa Monica, Los Angeles Superior Court Case No. SS5191: Filed in 1995, this case successfully challenged the City’s Housing Element as non-compliant with California Housing Element Law (Gov’t Code §§ 65580, et seq.). As a result of this litigation, the City entered into a settlement agreement with SMHC which required the City to rewrite key portions of its Housing Element.

3. Santa Monica Housing Council v. City of Santa Monica, Los Angeles Superior Court Case No. SC074683: Filed in 2003, this case challenged the City’s prior position that the Housing Accountability Act (“HAA”) (Gov’t Code Section 65589.5j) did not apply to the City because, inter alia, Santa Monica is a charter city. This case was resolved by a settlement agreement in which the City committed to comply with the Housing Accountability Act. (See attached Settlement Agreement.)

SMHC was relatively inactive in the years following settlement of the third case referenced above because the City’s performance in facilitating new housing improved substantially (though we have occasionally submitted correspondence to the City including a letter dated March 10, 2017 to the Planning Commission with respect to the 1613-37 Lincoln Boulevard project and the City’s Affordable Housing Production Program, copy attached). Unfortunately, the City’s progress as to compliance with State Housing Law (and the HAA in particular) appears to be in some jeopardy, as evidenced by the apparent reticence of at least one Planning Commissioner to comply with the HAA for the project at 2002-2018 21st Street as well as the onerous new affordable housing requirements for Downtown housing projects that have had a chilling effect on such projects.

For the foreseeable future, SMHC plans to resume closely monitoring City regulatory policy affecting housing and will advocate for City policies and practices that encourage new housing and comply with State law. Our recent letter to the City Attorney’s office (with copies to the Planning Commission) dated March 19, 2019 concerning the 21st Street project was filed in this context and reiterates SMHC’s longstanding position that the City needs to comply with the HAA and not evade it.

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Santa Monica Planning Commission April 10, 2019 Page 3

Please feel free to call me if you have any questions. I may be reached at (310) 451-2968.

Sincerely, Christopher M. Harding

CMH:akp Attachments cc: David Martin Roxanne Tanemori Heidi von Tongeln SMHC Board of Directors

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Administrative Guidelines

Affordable Housing Production Program

AFFORDABLE HOUSING PRODUCTION PROGRAM

ADMINISTRATIVE GUIDELINES

CITY OF SANTA MONICA

(Pursuant to Chapter 9.64 of the Municipal Code)

Prepared by

The City of Santa Monica Housing Division

Approved by City Council April 12, 2016

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Administrative Guidelines

Affordable Housing Production Program

Attachment 1-B

ATTACHMENT 1-B

AHPP Options Comparison Table

Project Type: Rental Ownership Ownership Ownership Ownership

Project Size: 2+ Apartments 2-3 Units 4-15 Units 16+ Units 2+ Units

Zoning: Any Multifamily Multifamily Multifamily Not Multifamily Developer Chooses One Option Below: 1. Construct Units

Onsite:

Moderate Income Units1 100% 100% 20% 25% 100%

80% Income Household Rental 20% 20% 20% 25% 20%

50% Income Household Rental 10% 10% 10% 15% 10%

30% Income Household Rental 5% 5% 5% 10% 5%

2. Construct Units

Offsite: Same as

Onsite Options Same as

Onsite Options Onsite

Options +25% Onsite

Options +25% Same as Onsite

Options

3. Pay Affordable

Housing Fee: $31.25/Sq.Ft. $36.51/Sq.Ft. Not Applicable Not Applicable $36.51/Sq.Ft.

4. Acquire and Donate

Land See SMMC

9.64.080 See SMMC

9.64.080 Not Applicable Not Applicable See SMMC 9.64.080

Note 1: Moderate-Income residences in this row are the same as the Project Type in terms of owner versus renter.

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