ACTION Apartment Association

SANTA MONICA-MALIBU UNIFIED SCHOOL DISTRICT- INTENTION TO A FORM SCHOOL FACILITIES IMPROVEMENT DISTRICT

05/24/2018 8:30 AM | Margaret Fulton (Administrator)

Section 2.
Intent to Form a School Facilities Improvement District - Santa Monica Schools. The Board hereby declares it is necessary and in the best interests of the District to form a school facilities improvement district in the area serving Santa Monica schools.

Section 4.
Estimated Cost of the Improvement Projects. The Board estimates at this time that the Improvement Projects will cost approximately $650 million

Section 5.
Levy of Taxes Only Within Improvement District. If the issuance of general obligation bonds is approved in accordance with California law by the voters of the Improvement District, all taxes levied for the purpose of paying principal of and interest on any such general obligation bonds shall be levied exclusively upon the lands in the Improvement District...

Read More on page 11: http://backissues.smdp.com/052418.pdf

Rent Control budget up for discussion this week

05/23/2018 9:50 AM | Margaret Fulton (Administrator)

The Rent Control Board (RCB) is an agency uniquely focused on the financial with analysis of expenses and revenues baked into their DNA. However, it will be their own cash flow up for discussion this week when the RCB meets to discuss their annual budget.

After hearing an update on the current budget, the Board will consider is operating budget for the 18/19 fiscal year at their Thursday meeting.

Staff estimates the department will spend $5,241,630 and take in $5,286,312. The Boards revenue is derived from an annual registration fee of $198 per unit and that fee is not expected to increase this year.

The largest expense for the department is staff.

Rent control is killing the coasts

05/23/2018 9:35 AM | Margaret Fulton (Administrator)

Rent control policies on the east and west coasts is causing a housing crisis. And California seems prepared to make things worse.

A 2018 California initiative likely to make the November ballot called the “Affordable Housing Act” would expand state and local government power to control rent prices.

“In many cases rent control appears to be the most effective technique presently known to destroy a city — except for bombing,” Swedish economist Assar Lindbeck said. While the comparison is extreme, Lindbeck makes a good point.

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.”