Page 12 - amm3

ACTION
Continued from page 8
required by state law, the revised Housing Element must have been certified by the Santa Monica City Council no later than October 15, 2021, or the City of Santa Monica could have lost eligibility for significant sources of funding currently provided by the State and under new recently adopted state laws, be subject to judicial discipline.
RHNA stands for “Regional Housing Needs Assessment.” This provides the number of housing units that should be accommodated in the Southern California region. The Southern California Regional Association of Governments (SCAG) takes that larger number and devises a methodology to allocate the units among local jurisdictions as well as unincorporated areas. As a part of the Housing Element, Santa Monica must demonstrate to the State that there is available capacity for the units allocated to the City. This year, the regional allocation, and therefore Santa Monica’s allocation, was significantly larger than it has been in past years. This large allocation was a result of the State responding to the housing crisis by considering both “projected need” (i.e., units needed to accommodate new residents) and “existing need” (i.e., units needed to alleviate challenges like overcrowding and homelessness). The allocation also takes affordability into account by identifying the percentage of units that are needed at each income level (very low, low, and moderate).
In the next 2021-2029 Housing Element Cycle, the City of Santa Monica’s RHNA allocation is 8,874 new housing units, 69% of which must be at various affordable income levels. The previous allocation in the 2013-2021 period had a
target of 1,674 units. The state also now requires cities to analyze housing inequality to reduce segregation and address the lack of jobs, economic development and amenities in Black, Latino and lower-income communities.
On October 12 the Santa Monica City Council adopted the 2021-2029 Housing Element Update.
The final plan will be submitted to the California Department of Housing and Community Development (HCD) for a 90-day review period to ensure the plan is compliant with State law. Staff will then work with HCD towards Housing Element certification.
12 NOVEMBER 2021 - APARTMENT MANAGEMENT MAGAZINE AMM3
WELLMAN REPORTS
But wait, The Santa Monica Daily Press reports, “(On September 28), Council members voted 5 to 2 to ask the Westside Cities Council of Governments to discuss whether the WSCCOG should join a lawsuit alleging that the California Department of Housing and Community Development (HCD) should recalculate the Regional Housing Needs Assessment (RHNA). The lawsuit was brought by the Orange County Council of Governments and claims that the RHNA calculation that the State needs 1.34 million new homes by 2029 is a miscalculation and that the actual number should be about 651,100.”
Nevertheless, before progressive policy makers break out the champaign, they should consider the law of unintended consequences. The market has its own way of wreaking havoc with well- intended government policies. Developers, including small-time flippers, are now likely to out-bid actual homeowners for homes for sale, triggering a new round of bidding wars for the already highest in the nation house prices. And, Wall Street investment funds with their almost unlimited access to capital will seize the opportunity for acquisition and quick and simple redevelopment of small parcels.
Field of Dreams for some, but a potential Financial Nightmare for others.
(Sources-calmatters.org,, Breitbart.com, santamonica.gov., Los Angeles Times, Santa Monica Daily Press)