There’s a new zoning law in Downtown SaMo. And developers already hate it

Retooled housing plan now requires that between 20 and 35% of housing units be affordable

Los Angeles /
Jul.July 28, 2017 12:00 PM

The six-year battle between Santa Monica officials, developers and community activists over the Downtown Community Plan came to an end this week, and developers are absolutely stewing about the new affordable housing requirements.

The Santa Monica City Council voted 4-3 to approve the final plan, which outlines new zoning rules for Downtown, a 40-block area bounded by Wilshire Boulevard, the 10 Freeway, Ocean Avenue and Lincoln Boulevard. The final discussion centered on affordable housing and resulted in stricter requirements for developers, the Santa Monica Daily Press reported.

The new DCP now requires developers to set aside 20 percent of units in buildings up to 50 feet in height, or 25 percent if the developer chooses to build the units off site. A 70-to-84-foot-tall building in Downtown would trigger a 30 percent requirement on-site, and 35 percent off-site. It’s the strictest affordable housing plan in the state, and developers say it’s going to kill development. It applies to all residential housing projects with 10 or more units that require special zoning permits.

“The economics do not work,” Dave Rand, a land-use attorney said, according to the Santa Monica Lookout. The 30 percent mandate, he said, tells developers “do not come here. Do not build here. Thirty percent of nothing is nothing.”

The city’s previous mandate merely required that 30 percent of the units built in the city be affordable. There was no requirement on individual projects.

City officials defended the plan, saying it offers enough incentives to attract new development such as eliminating parking requirements and speeding up the approvals process for residential projects under 75,000 square feet. [SMDP] — Subrina Hudson


Related Articles

arrow_forward_ios
Neil Shekhter (Shekhter by Kevin Scanlon; iStock)

Santa Monica mega-portfolio officially hits market

Santa Monica mega-portfolio officially hits market
NMS Properties' Neil Shekhter and renderings of 1325 6th Street, 1437 6th Street, 1430 Lincoln Blvd. and 1318 Lincoln Blvd. in Santa Monica (Kevin Scanlon, WSC)

City for sale: Shekhter looks to unload mega-portfolio in Santa Monica

City for sale: Shekhter looks to unload mega-portfolio in Santa Monica
Neil Shekhter of NMS Properties, who is involved in the lawsuit. (Kevin Scanlon)

Landlords sue Santa Monica over “arbitrary” ban on short-term rentals

Landlords sue Santa Monica over “arbitrary” ban on short-term rentals
HomeLister CEO and Co-Founder Lindsay McLean (LinkedIn)

HomeLister property-selling platform raises $4.5M in seed funding

HomeLister property-selling platform raises $4.5M in seed funding
Colorado Campus at 2041-2115 Colorado Avenue and Northwestern Mutual CEO John E. Schlifske

Northwestern Mutual picks up Santa Monica office campus for $166M

Northwestern Mutual picks up Santa Monica office campus for $166M
Macerich CEO Thomas O’Hern and Santa Monica Place mall

Here’s what tenants are paying at Macerich’s Santa Monica Place

Here’s what tenants are paying at Macerich’s Santa Monica Place
CEO of Amazon Web Services Andy Jassy

A top Amazon exec buys in Santa Monica

A top Amazon exec buys in Santa Monica
WS Communities CEO Scott Walter and VP of Finance Gregory Proniloff, Madison Realty Capital’s Josh Zegen, 1433 Euclid Street in Santa Monica; and rendering of mixed-use project at 3030 Nebraska Avenue in Santa Monica (Credit: Google Maps and Madison Realty Capital)

WS Communities nabs $150M loan for six renovations and a development site

WS Communities nabs $150M loan for six renovations and a development site
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...