ACTION Apartment Association

New Report Finds Santa Monica City Government Might Require “Painful” Fiscal Changes

05/22/2018 2:56 PM | Margaret Fulton (Administrator)

May 22, 2018 -- Santa Monica’s City government will require “tangible and likely painful” changes in the coming years as it shudders under $461 million in red ink for unfunded employee pensions and other costs continue to outpace revenue, a new fiscal update warns.

The report by City staff updates the 2017-2019 $1.57 biennial budget and begins looking ahead to its two-year successor, which is likely to face a deficit of about $7.1 million in the 2020-21 fiscal year and, as it now stands, a shortfall of $15.2 million the following fiscal year.

“Health insurance and workers’ compensation costs continue to be cost drivers, although the largest challenge is the significant rise in the cost of pensions,” said the report by the Finance Director Gigi Decavalles-Hughes, the Human Resources Director Donna Peters and Public Works Director Susan Cline.

Organizers to Submit More than 19,000 Signatures for Santa Monica Term Limits Measure

05/21/2018 10:32 AM | Margaret Fulton (Administrator)

May 21, 2018 -- Organizers of a proposed measure mandating terms limits for Santa Monica City Council members have a date this morning with the City Clerk to submit petitions with more than 19,000 signatures.

The number of signatures submitted was almost twice as many as needed to win a place on the November 6 ballot, said Mary Marlow, the activist who with Council member Sue Himmelrich proposed the ballot measure.

“We’re excited,” Marlow said. “We’re gonna get this baby on the ballot.”

Marlow, who heads the Santa Monica Transparency Project, said about 10,500 valid signatures – or 15 percent of the City’s registered voters -- are needed to receive a spot on ballot in the election next fall.

AND

http://smdp.com/more-than-19000-signatures-gathered-to-support-term-limits/166326

Kaiser Permanente to commit $200 million to help communities reduce homelessness

05/21/2018 10:02 AM | Margaret Fulton (Administrator)

The commitment — which Kaiser is announcing Friday morning alongside a coalition of mayors and business leaders — marks one of the largest private-sector initiatives to tackle homelessness.

The new investments will target places where Kaiser operates, including Northern and Southern California, Washington state, Oregon, Hawaii, Colorado, Georgia, Maryland, Virginia and the District of Columbia.

Rent Control Board caps surcharges

05/18/2018 6:28 PM | Margaret Fulton (Administrator)

About thirty percent of rent control tenants will see a reduction in surcharges this September when the next general adjustment goes into effect. After months of debate, the Rent Control Board has limited the amount of taxes landlords can pass along to tenants to $35 or four percent of their rent, whichever is lower.

The new limit will provide the most relief for tenants in buildings that have been sold and reassessed during Santa Monica’s recent real estate boom. Many of those tenants saw their fees skyrocket as property values soared. Ninety percent of tenants whose properties have been sold since 2012 will see relief.

Surcharges for about 70 percent of rent-controlled tenants are already less than $35, according to a city report. The median surcharge amount is $24.41. The highest monthly surcharge paid by a tenant is $137.03.

New development measure hinges on Mayor’s vote

05/18/2018 6:27 PM | Margaret Fulton (Administrator)

Santa Monica’s elected leaders are split over whether the City should place a development-related measure on the November ballot. The proposed measure would require a supermajority vote from the City Council to amend established rules for new construction in Santa Monica. The city’s elected representatives disagree whether a measure would lead to “development peace” or another war.

Mayor Ted Winterer has become the swing vote on whether a measure will move forward and has asked staff to do more research on the matter. At this point, Councilmembers Kevin McKeown, Sue Himmelrich and Tony Vazquez support a measure to limit the Council’s flexibility.

Santa Monica Council Edges Closer to November Ballot Measure Requiring Super-Majority for Oversized Developments

05/17/2018 1:57 PM | Margaret Fulton (Administrator)

May 17, 2018 -- Santa Monica’s City Council is edging closer to approving a November ballot measure that would require developers to win a super-majority council vote for projects that are bigger or taller than zoning allows.

City staff is now exploring an option to require at least five (of seven) council votes to amend land-use or “specific” area plans for proposed developments which increase the maximum height limit or size currently allowed.

It Costs $500PSF to Build Apartments Here

05/17/2018 1:46 PM | Margaret Fulton (Administrator)

From high land values to rising construction costs, the price to develop in Los Angeles is fueling the affordability crisis.

Finding a solution to the affordability crisis plaguing California is a top concern for both residents and the development community. At RealShare Southern California last week, experts sat down to talk about the affordability problem, what is driving it and why the current proposed solutions—namely the potential repeal of Costa Hawkins—are not going to bring down the prices. The panel, Overcoming the Affordability Crisis, included speakers Jim Andersen, SVP at Trammell Crow Company; Mike Rovner, president and founder at Mike Rovner Construction; Kitty Wallace, EVP at Colliers International; Janet Neman, senior managing director at Charles Dunn Co.; Eric Sackler, director of Los Angeles at Coldwell Banker Commercial, with moderator Jeffrey Hudson, managing director of capital markets at Walker & Dunlop.

The cost of construction and land prices are the biggest cause of the affordability crisis. Andersen estimates that his hard cost expenses are $300 per square foot to develop an apartment building in Los Angeles, and all in, the cost is closer to $500 per square foot. To recoup those costs, Andersen said, “You either build tiny units or swanky places.”

Ellis Act Legislation Passes Out of Second Policy Committee

05/17/2018 9:27 AM | Margaret Fulton (Administrator)

Assemblymember Richard Bloom’s (D-Santa Monica) bill to protect California tenants from eviction passed out of its second Assembly Committee today on a 7-3 vote. The measure, AB 2364, closes loopholes in the Ellis Act that have allowed some landlords to displace tenants and raise the price of rent control units. Though misuse of the Ellis Act has existed for decades, the current housing crisis has exacerbated the problem.

AB 2364 clarifies the Ellis Act by setting one withdrawal date for a property, by requiring the entire property to be deemed back on the market if one unit is returned, and by increasing the length of time for which a property owner can be penalized for re-entering the rental market. The measure also eliminates the cap on punitive damages and clarifies that these changes are only prospective.

New state bill could boost funding for affordable housing near transit

05/17/2018 9:01 AM | Margaret Fulton (Administrator)

A new bill working its way through the state legislature could provide California cities with more funding for affordable housing and public transit projects.

Senate Bill 961, drafted by state Sen. Ben Allen (D-Santa Monica), has already cleared two legislative committees without a single no-vote. It would allow a portion of tax revenue from businesses and properties around rail stops and major bus lines to pay for affordable housing, parks, new stations, and streetscape improvements.

The measure wouldn’t raise taxes, but would allow cities and counties to use a portion of future tax revenue collected in designated transit zones for specific types of projects.

The bill ensures, for instance, that 40 percent of the money be spent on low-income housing. Of that, half would be set aside for developments geared toward homeless residents.

RCB - Surcharges

05/16/2018 6:14 PM | Margaret Fulton (Administrator)

Public Notice Santa Monica Rent Control Board
At its regular meeting on May 10, 2018, the Santa Monica Rent Control Board amended Regulation 3120. The newly adopted subdivision (e) will limit monthly surcharges for any tenancy to 4% of the unit’s maximum allowable rent (MAR) or $35, whichever is less. This change will be effective upon implementation of the 2018 general adjustment (rent increase) in September 2018.
This amendment does not apply in circumstances in which no surcharges may be collected as provided in subdivisions (c) and (d) of Regulation 3120:
1) The unit’s rent is established for a new tenancy starting on or after March 1, 2018; or

2) The unit is in a building that is reassessed as the result of an ownership transfer on or after March 1, 2018; or

3) The unit is on a property that is reassessed on or after March 1, 2018 as the result of significant improvements.
Read Notice on page 4: http://backissues.smdp.com/051718.pdf