Introduction to Affordable Housing Plan
The Santa Monica City Council has made way for a new approach to affordable housing construction in the seaside enclave. Officials voted 6-1 in the council’s most recent meeting to approve a pilot program allowing developers to build affordable housing off-site instead of requiring it as part of a development, the Santa Monica Daily Press reported.
Concerns Over Economic Segregation
The approval comes amid concerns the policy could lead to economic segregation in the city. Mayor Lana Negrete was the sole dissenter, noting it could create “modern-day redlining, just in a much subtler form.” “This pilot risks accelerating that imbalance,” Negrete said, per the Daily Press. “Off-site inclusionary housing… still tends to push affordable units to where the land is the cheapest. That’s not integration. That’s not diversity.”
Economic Realities and Flexible Solutions
Councilmember Jesse Zwick, who supported the measure, believes that economic realities require flexible solutions. “We need to adapt our rules to this economy because it’s not changing anytime soon,” Zwick said, stating “The status quo is not working.” So far this year, only two building permits for multifamily properties have been issued in Santa Monica. One of those is for affordable housing and the other is for a three-unit project, according to the Daily Press. It comes as the residential construction industry in L.A. deals with higher interest rates, labor shortages, and construction material costs as a result of tariffs.
Pilot Program Details
Under the pilot program, developers will have three options to choose from to meet affordable housing requirements. They can build units off-site with $150,000 per unit in gap financing; rehabilitate existing units deemed uninhabitable; or pay in-lieu fees of $43.91 per square foot for apartments and $51.30 per square foot for condominiums. The program would help advance 40 housing projects that received approval but are stalled, with up to 3,598 approved market-rate units and 642 affordable units across 37 projects potentially being eligible.
Application Timeline and Eligibility
Developers have a short timeline to apply for the program. It’s limited to 1,000 units and is set to expire Sept. 30. The program aims to address the current housing shortage in Santa Monica, where only a few building permits have been issued this year.
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Conclusion
The approval of the off-site affordable housing plan by the Santa Monica City Council marks a significant shift in the city’s approach to addressing the affordable housing crisis. While concerns over economic segregation and the potential for "modern-day redlining" have been raised, proponents of the plan argue that it is necessary to adapt to the current economic realities and address the severe shortage of affordable housing in the city.
FAQs
Q: What is the off-site affordable housing plan approved by the Santa Monica City Council?
A: The plan allows developers to build affordable housing off-site instead of requiring it as part of a development.
Q: What are the options for developers to meet affordable housing requirements under the pilot program?
A: Developers can build units off-site with $150,000 per unit in gap financing; rehabilitate existing units deemed uninhabitable; or pay in-lieu fees of $43.91 per square foot for apartments and $51.30 per square foot for condominiums.
Q: How many units are eligible for the program, and what is the application deadline?
A: The program is limited to 1,000 units, and the application deadline is Sept. 30.
Q: What are the concerns raised by opponents of the plan?
A: Opponents, including Mayor Lana Negrete, have raised concerns that the plan could lead to economic segregation and "modern-day redlining" in the city.
