Loading...
ORDINANCE 1683ORDINANCE NO. 1683 AN URGENCY INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, ENACTED PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65858, IMPOSING A 45-DAY MORATORIUM ON THE APPROVAL OF ANY LAND USE ENTITLEMENTS, PERMITS, OR OTHER APPROVALS FOR MULTIFAMILY RESIDENTIAL HOUSING PROJECTS WITH MORE THAN TEN UNITS UNLESS THE HOUSING PROJECT INCLUDES A SPECIFIED AFFORDABLE HOUSING COMPONENT, AND FINDING THAT ADOPTION OF THE INTERIM ORDINANCE IS EXEMPT FROM THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT The Council of the City of El Segundo does ordain as follows: SECTION 1: This ordinance is adopted pursuant to Government Code Sections 36937 and 65858, and other applicable laws. SECTION 2: Findings: The El Segundo City Council finds, determines and declares as follows: A. The City may adopt and enforce all laws and regulations not in conflict with the general laws and the City holds all rights and powers established by state law. B. The City has a compelling interest in the careful and orderly planning and regulation of land uses within the City. C. The City Council further finds that this moratorium is a matter of local and City-wide importance and is not directed towards any particular applicant or potential applicant for a multifamily housing development. D. Government Code sections 36937 and 65858 authorize the adoption of an urgency ordinance to protect the public health, safety and welfare and to prohibit certain land uses that may conflict with the land use regulations that the City Council is considering or intends to study within a reasonable time. E. The state of California requires local governments to plan to meet the housing needs of all income groups. Local governments have a responsibility to use their powers to facilitate the improvement and development of housing to meet the housing needs of all economic segments of the community. (Gov't Code § 65580, subd. (d).) Each city's housing element must include a program to assist in the development of adequate housing to meet the needs of extremely low, very low, low- and moderate -income households. (Gov't Code § 65583, ORDINANCE NO. 1683 PAGE 1 of 10 subd. (c)(2).) Program 4 of the city's certified Housing Element for the 2021- 2029 cycle commits the city to exploring the creation of an inclusionary housing program, including an inclusionary housing ordinance. F. As documented in the city's General Plan, there is a housing shortage for extremely low, very low, low-, and moderate income households in the city. The city also has a significant jobs -housing imbalance. As of 2020, there were estimated to be approximately 4.2 jobs for every resident. That ratio is expected to grow into the foreseeable future. Increasingly, lower income persons who work within the city are unable to locate suitable housing at prices they can afford and are increasingly excluded from living in the city. Federal and state housing subsidy programs are not sufficient by themselves to satisfy the needs of extremely low, very low, and low-income households. G. Newly constructed market -rate housing does not provide housing affordable to extremely low, very low, or lower income households. New development that does not include or otherwise provide for affordable housing will further exacerbate the current housing shortage for these lower income groups by reducing the supply of land available for development and causing the price of remaining land to increase, thereby making affordable housing increasingly difficult to develop. H. The inclusionary housing requirements of this interim ordinance will substantially advance the city's legitimate interest in providing additional housing affordable to all income levels because the inclusionary units required by this chapter must be affordable to either extremely low, very low, or lower income households. I. This interim ordinance is adopted pursuant to the city's police power authority to protect the public health, safety, and welfare. Requiring affordable units within each multifamily residential development of more than ten units is consistent with the community's housing element goals of protecting the public welfare by fostering an adequate supply of housing for persons at all economic levels and maintaining both economic diversity and geographically dispersed affordable housing. J. Requiring developers of new market rate housing to provide some housing affordable to extremely low, very low, and lower income households is reasonably related to the impacts of those projects because, among other things: 1. Rising land prices have been a key factor in preventing development of new affordable housing. New market -rate housing uses available land and drives up the price of remaining land. New development without affordable units reduces the amount of land development opportunities available for the construction of affordable housing. ORDINANCE NO. 1683 PAGE 2 of 10 2. New residents of market -rate housing place demands on services provided by both public and private sectors, creating a demand for new employees. Some of these public and private sector employees needed to meet the needs of the new residents earn incomes only adequate to pay for affordable housing. Because affordable housing is in short supply in the city, such employees may be forced to live in less than adequate housing within the city, pay a disproportionate share of their incomes to live in adequate housing in the city, or commute ever increasing distances to their jobs from housing located outside the city. These circumstances harm the city's ability to attain employment and housing goals articulated in the city's General Plan and place strains on the city's ability to accept and service new market -rate housing development. K. Based on the facts and circumstances hereinabove described, the City Council finds that there is a current and immediate threat to the public health, safety, or welfare and that the approval of additional use permits, building permits, or any other applicable entitlement for use which is required by the El Segundo Municipal Code in order to develop a multifamily housing project would result in that threat to public health, safety, or welfare. The City of El Segundo is almost entirely built out, with relatively little undeveloped land remaining. Consequently, any new multifamily residential development will likely be infill development, redevelopment of existing sites, or adaptive reuse. Every time a new market -rate housing project is developed there are fewer sites available for future residential development and, consequently, the price of those remaining sites increases and the amount of land development opportunities available for the construction of affordable housing decreases. At the same time, the state Legislature is increasingly taking action to address the housing shortfall across the state by removing regulatory barriers to the construction of new multifamily housing. Accordingly, to ensure that the development of new multifamily housing does not further exacerbate the current affordable housing shortage and impair the city's ability to provide affordable housing opportunities for lower income families in the future, the city must act now to ensure that all new multifamily housing projects include an affordable housing component. L. Adoption of this urgency interim ordinance will allow the city to effectively study within a reasonable time the possible enactment of an inclusionary housing ordinance in furtherance of myriad state laws and regulations intended to promote, encourage, and foster the development of affordable housing, together with the city's own Housing Element goals, policies, and objectives regarding the provision of affordable housing opportunities. M. This interim urgency ordinance is specifically intended to facilitate the production of housing for lower income households, as defined in Section 50079.5 of the California Health and Safety Code. ORDINANCE NO. 1683 PAGE 3 of 10 SECTION 3: Interim Regulations: The following provisions are adopted as interim requirements for issuing permits pursuant to the El Segundo Municipal Code for multifamily housing projects and any activity in the city in conflict with these provisions is expressly prohibited: A. Restricted Activities. For a period of 45 days after adoption of this ordinance, the city will not issue a permit or land use entitlement to any person for any multifamily housing project in any zone unless the multifamily housing project incorporates an inclusionary housing component that meets the minimum requirements set forth in these interim regulations. These prohibitions will remain effective for 45 days following adoption of this ordinance. B. Definitions. In addition to the definitions contained in the El Segundo Municipal Code, the following words and phrases will, for the purposes of this ordinance, be defined as follows, unless it is clearly apparent from the context that another meaning is intended. Should any of the definitions be in conflict with the current provisions of the El Segundo Municipal Code, the following definitions will prevail: "Affordable housing cost" means the housing cost for dwelling units as defined by California Health & Safety Code section 50052.5 for owner - occupied housing and the affordable rent for rental units as defined by California Health & Safety Code section 50053. "Extremely low income household" has the definition given in California Health & Safety Code section 50106. "Inclusionary unit" means a dwelling unit included in a residential development in order to meet the inclusionary requirement set forth in this ordinance. "Lower income household" has the definition given in California Health & Safety Code section 50079.5. "Multifamily housing project" means a new residential or mixed -use development project with more than ten dwelling units. "Very low income household" has the definition given in California Health & Safety Code section 50105. C. Inclusionary Housing Requirement. All new multifamily housing projects creating more than ten residential units must include the number of inclusionary units required under this section. Calculation of the number of inclusionary units required by this section shall be based on the number of dwelling units in the residential development, excluding any density bonus units. ORDINANCE NO. 1683 PAGE 4 of 10 1. Unless otherwise exempt, or unless a waiver, adjustment, or reduction is approved by the City Council, a multifamily housing project is subject to the following inclusionary housing requirements: (a) Nine (9) percent of the total dwelling units must be available for purchase or rent at an affordable housing cost to extremely low income households; or (b) Thirteen (13) percent of the total dwelling units must be available for purchase or rent at an affordable housing cost to very low income households; or (c) Seventeen (17) percent of the total dwelling units must be available for purchase or rent at an affordable housing cost to lower income households. 2. When the application of the percentages specified above results in a number that includes a fraction, the fraction shall be rounded up to the next whole number if the fraction is one-half (0.5) or higher. If the fraction is less than one-half (0.5), the fraction shall be rounded down to the next whole number. D. Alternative Means of Compliance for Rental Units. 1. In -Lieu Fees. The payment of in -lieu fees may be used to satisfy the inclusionary housing requirement for inclusionary units in a rental housing project. The amount of the in -lieu fees shall be set by resolution of the City Council. In -lieu fees must be paid prior to the issuance of the first building permit for the housing development. 2. Off -Site Construction. (a) Inclusionary units may be constructed off site only upon a determination by the Community Development Director that on -site construction is infeasible. If this option is chosen, the off -site inclusionary units must be constructed prior to or concurrently with the construction of the residential development project. (b) The inclusionary unit size and count must meet the same requirements as if the inclusionary units were constructed on site. Building design, quality, and maintenance standards must be of good quality and consistent with the standards that would be required if the inclusionary units were constructed on the same site as the market rate units. ORDINANCE NO. 1683 PAGE 5 of 10 (c) Regardless of whether the market rate units are ownership units or rental units, the inclusionary units constructed off site may be rental units. (d) No certificate of occupancy will be issued for any corresponding market rate unit prior to inclusionary unit construction completion. 3. If state law requires a particular development to include a specified affordable housing component, these alternative means of compliance are not available to the developer for those required units. To the extent the inclusionary housing requirements of this ordinance exceed the minimum requirements of applicable state law, these alternative means of compliance may be used to satisfy the requirements that exceed those required by state law. E. Assurance of Continued Affordability. The developer of inclusionary units required by this ordinance shall be required to incorporate deed restrictions, covenants, declarations, and/or other agreements as deemed reasonably necessary by the Community Development Director to ensure that the income restrictions remain applicable to the inclusionary units for a minimum period of 45 years. F. Standards for Inclusionary Units. Timing of Construction. Inclusionary units in a multifamily housing project must be constructed concurrently with market -rate units. Where phasing of construction is proposed, each phase must provide the required ration of inclusionary units to market -rate units to ensure that the inclusionary units are made available for sale or rent at the same time as the market -rate units. Z Location. The location of the inclusionary units within a multifamily housing project must be designated before issuance of building permits for the development. Inclusionary units must be integrated into the overall design and distributed throughout the development (not clustered in a particular area). Inclusionary units within developments that share a common entrance may not have separate entrances for market -rate and inclusionary units. 1 Design. Inclusionary units must be comparable in design to market -rate units, with comparable infrastructure (including sewer, water, and other utilities), construction quality, and exterior design. The mix of unit sizes by bedroom counts in the inclusionary units must be proportional to the mix of unit sizes by bedroom country provided in the market rate units (i.e., if 50% of the market rate ORDINANCE NO. 1683 PAGE 6 of 10 to. units are two bedroom units, then 50% of the inclusionary units should be two bedroom units). Inclusionary units may have different interior finishes and features than market -rate units, so long as the interior features are durable, of good quality, and consistent with contemporary standards for new housing, such as those applied by the low-income housing tax credit program. G. Exceptions. The requirements of this interim ordinance do not apply Multifamily housing projects of ten dwelling units or less. 2. Accessory dwelling units, including the addition of accessory dwelling units within any multifamily structure. 3. The reconstruction of any structures that have been destroyed by fire, flood, earthquake or other act of nature, provided that the reconstruction of the site does not increase the number of dwelling units by more than ten. 4. Residential building additions, repairs or remodels, provided that such work does not increase the number of existing dwelling units by more than ten. 5. Any multifamily housing project for which a complete application has been submitted to the city prior to the effective date of this interim ordinance. H. Petition for Wavier, Adjustment, or Reduction. The City Council finds that the El Segundo Municipal Code and State law allow developers to avail themselves of a number of tools to ensure that application of an inclusionary housing obligation does not result in an unconstitutional taking of property. These tools include, without limitation, density bonuses, variances, and regulatory incentives and concessions. However, any applicant who believes that application of these interim regulations would result in a taking of property in violation of the United States or California Constitutions may petition the City Council for a waiver, adjustment, or reduction of the otherwise applicable inclusionary housing requirement. Any request for a waiver, adjustment, or reduction under this interim ordinance must be submitted to the Community Development Director and include a detailed factual and legal basis therefor. 2. The Director will review the application for a waiver, adjustment or reduction and issue a written recommendation to the City Council ORDINANCE NO. 1683 PAGE 7 of 10 for its consideration at the next regularly held public meeting following the Director's transmittal of his recommendation. 3. In making a decision regarding the requested adjustment or waiver, the City Council may assume each of the following when applicable: (a) That the applicant will provide the most economical inclusionary units feasible, taking advantage of any density bonuses, concessions and/or incentives available under applicable law. (b) That the applicant is likely to obtain external funding or other financial incentives including, without limitation, governmental grants, loans, or subsidies of any nature where such funds/incentives are reasonably available. 4. Any adjustments, reductions, or waivers may only modify the inclusionary housing requirement to the extent necessary to avoid an unconstitutional result. SECTION 4: Environmental Review. Exercising its independent judgment on the basis of the whole record, the City Council finds that this ordinance is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines. Sections 15060(c)(2) and 15060(c)(3) pertain to activities that will not result in a direct or reasonably foreseeable indirect change to the environment and that are not defined as a project under Section 15378. This ordinance has no potential for resulting in physical change to the environment directly or indirectly. In addition, pursuant to Section 15061(b)(3) of the CEQA Guidelines, this interim ordinance is not subject to CEQA because it can be seen with certainty that there is no possibility that its adoption may have a significant effect on the environment. SECTION 5: Severability. If any part of this ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this ordinance are severable.. SECTION 6: Certification. The City Clerk is directed to certify the passage and adoption of this ordinance; cause it to be entered into the City of El Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this ordinance, cause it to be published or posted in accordance with California law. ORDINANCE NO. 1683 PAGE 8 of 10 SECTION 7: Effective Date. This interim ordinance is declared to be an urgency measure pursuant to Government Code section 65858 and shall become effective immediately upon adoption pursuant to Government Code sections 36937(b) and 65858 for the immediate preservation of the public peace, health, safety, and welfare. The reasons for the urgency are declared and set forth in Section 2 of this interim ordinance. This interim ordinance shall be of no further force and effect 45 days from the date of its adoption, unless the City Council has extended this interim ordinance in the manner provided in Government Code section 65858. SECTION 8: Vote Required. In accordance with Government Code section 65858, this ordinance is adopted by a four -fifths vote. PASSED AND ADOPTED this 16th day of June, 2026. ATTEST: Susfri Truax City Cl APPROVED AS TO FORM: Mark D. Hen ley, City Attorney /'Y" Cris Pimentel, Mayor ORDINANCE NO. 1683 PAGE 9 of 10 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Susan Truax, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 1683 was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the 16th day of June, 2026, and the same was so passed and adopted by the following vote: AYES: Mayor Pimentel, Council Member Boyles, Council Member Giroux, and Council Member Keldorf NOES: None ABSENT: Mayor Pro Tern Baldino ABSTAIN: None WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 16th day of June, 2026. -' S6sa " u; City Clerk Of the city of El Segundo, California ORDINANCE NO. 1683 PAGE 10 of 10