Item 8-C

Council Mtg: 2/25/97                         Santa Monica, CA

TO:       Mayor and City Council
FROM:     City Staff
SUBJECT:  Recommendation to Introduce for First Reading an
          Ordinance Amending Ordinance 1823 (CCS) to Modify the
          Provisions of the Earthquake Recovery Act.

INTRODUCTION
This report recommends that the City Council modify Ordinance
1823 (CCS) (the  "Earthquake Recovery Act") to allow projects
that have been deemed substantially complete by April 19, 1997 to
continue to utilize the provisions of this ordinance.   As
proposed, the rights granted by these Earthquake Recovery Permits
would expire if a building permit is not issued by April 19,
1998.  Currently, the ordinance requires projects to have
obtained a building permit by April 19, 1997.  Additional
ordinance modifications include eliminating the California
Environmental Quality Act (CEQA) emergency exemption and 
eliminating the sections on construction hours and fee waivers. 
The proposed ordinance is contained in Attachment A.

BACKGROUND
Ordinance 1823 (CCS) was adopted on October 17, 1995 as part of
the City's continuing efforts to facilitate earthquake recovery. 
This ordinance, which reenacted prior earthquake-related
ordinances, established procedures and standards for the repair
and reconstruction of earthquake-damaged structures.  Earthquake
recovery pursuant to this ordinance has been successful: from a
high of 147 red tagged buildings in January, 1994, a total of 14
remain, 12 of which have yet to obtain earthquake repair permits. 
Yellow tagged buildings reached a high of 413 buildings in
January, 1994; a total of 42 yellow tagged buildings remain, 23
of which do not have earthquake recovery permits.

Consistent with the decline in red and yellow tagged buildings is
the decline in issuance of earthquake recovery permits.  As shown
in Attachment B, issuance of earthquake recovery permits
decreased significantly over the past year.  Between November,
1995 and May, 1996, an average of 72 earthquake recovery permits
per month were issued.  This  dropped to an average issuance of
13 earthquake recovery permits per month between June, 1996 and
January, 1997.   

While a substantial number of earthquake recovery projects have
been completed, are under construction, or have obtained building
permits, there are approximately 25 earthquake projects that the
City Planning Division has approved that have not yet received
building permits.  Modifying the time frame for obtaining a
building permit under the Earthquake Recovery Act will provide
certainty for property owners who have begun, but not completed,
the permitting process.

Ordinance Amendments  
As recommended, Section 9 of the Earthquake Recovery Act would be
modified to allow projects that are deemed substantially complete
by April 19, 1997 to utilize the provisions of the ordinance. 
Such projects would be required to obtain building permits by
April 19, 1998 in order to exercise these rights.  In addition,
after a project receives a building permit pursuant to the
ordinance, the rights associated with the permit shall lapse if
the building permit expires.  Given the significant decline in
issuance of Earthquake Recovery Permits over the past year, the
limited number of potential earthquake related projects remaining
that may file applications, and the number of projects that have
received planning approvals but not building permit issuance,
Planning staff believes this modification will facilitate
recovery for these remaining projects without unduly prolonging
rebuilding efforts.

Amendment to Section 17 of the ordinance regarding CEQA
compliance is also recommended.  Currently, pursuant to Section
15269 of the State CEQA Guidelines and the State of Emergency
declared by the Governor of California, all Earthquake Recovery
Permitted projects are categorically exempt from CEQA.  The
ordinance amendment would require CEQA compliance for Earthquake
Recovery projects to be evaluated on an individual basis to
determine the level of environmental review required.   Given the
City's successful recovery efforts and that the earthquake
occurred over three years ago, staff believes elimination of this
emergency exemption is appropriate.     

Finally,  removal of the ordinance section on construction hours
and the exemption from the North of Wilshire Construction Rate
Program is proposed since, pursuant to Ordinance 1823,  this
provision expired on April 19, 1996.  There are now no special
regulations regarding construction hours in the City.  Similarly,
the section on fee waivers has been removed since Earthquake
Recovery Permits are now subject to permit processing fees. 

PUBLIC NOTIFICATION
Notice of this public hearing was published in The Outlook
Newspaper and mailed to property owners of all red and yellow
tagged buildings in the City at least 10 days prior to the
hearing.  A copy of the notice is contained in Attachment C.

BUDGET/FINANCIAL IMPACT
The recommendation presented in this report does not have
significant budget or fiscal impact. 

RECOMMENDATION
It is respectfully recommended that the Council introduce the
attached ordinance for first reading.

Attachments:   A.  Proposed Ordinance
               B.  Earthquake Recovery Permits Issued by Month,
               1994-1997
               C.  Public Notice

                    ORDINANCE NUMBER ____(CCS)

                      (City Council Series)

            AN ORDINANCE OF THE CITY COUNCIL OF THE
          CITY OF SANTA MONICA AMENDING AND REENACTING
                  THE EARTHQUAKE RECOVERY ACT

     WHEREAS, on April 19, 1994, the City Council adopted
Ordinance Number 1736 (CCS), the Earthquake Recovery Act,
establishing procedures and standards for repair and
reconstruction of earthquake damaged structures; and 
     WHEREAS,  on July 26, 1994, August 9, 1994, April 11, 1995,
and October 17, 1995, the City Council adopted Ordinance Nos.
1755(CCS), 1764(CCS), 1796(CCS), and 1823(CCS) adding and
amending particular sections of the Earthquake Recovery Act; and
     WHEREAS, the Earthquake Recovery Act provides that the
rights granted by an Earthquake Recovery Permit expire if a
building permit for the project is not obtained by April 19,
1997; and
     WHEREAS, a number of projects will have received, or will
have filed a complete application for an Earthquake Recovery
Permit prior to April 19, 1997 ("Pending Projects"), but will
have had insufficient time to obtain a building permit by that
date; and
     WHEREAS, the City Council wishes to extend the rights
granted by an Earthquake Recovery Permit for Pending Projects
only; and 
     WHEREAS, extending the rights granted by an Earthquake
Recovery Permit for Pending Projects will facilitate recovery
from the devastating effects of the earthquake but not unduly
prolong the amount of time in which recovery efforts must be
undertaken in order to take advantage of the substantial rights
granted by the Earthquake Recovery Act, including the right to
reconstruct nonconforming buildings; and 
     WHEREAS, for clarity, ease of administration, and public
convenience, it is desirable to reenact the Earthquake Recovery
Act in its entirety to reflect previous and current amendments,
     NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES ORDAIN AS FOLLOWS:

     SECTION 1.  Findings and Purpose.  The City Council finds
and declares:
     (a)  Numerous residential and commercial buildings in the
City of Santa Monica experienced substantial damage due to the
January 17, 1994 Northridge earthquake and its aftershocks. 
Citywide, more than 2000 dwelling units and 135 non-residential
structures were significantly damaged.  As a result, residents
have been displaced from their homes and businesses, and owners
face the task of rebuilding damaged structures.  Without a
streamlined permit process, families may be left homeless,
neighborhoods will continue to experience the negative effects of
unrepaired buildings, and economic hardships will result from the
delay in reconstruction.
     (b)  Many of the buildings which were damaged are currently
nonconforming with respect to density, setbacks, height, floor
area ratio, or other code requirements.  Under existing zoning
ordinance provisions, if damage to a structure equals or exceeds
one-half of replacement costs immediately prior to such damage,
the structure must conform to current zoning upon rebuilding. 
Adherence to these zoning provisions would significantly delay
rebuilding and recovery.
     (c)  In addition, numerous damaged buildings contain more
housing units than allowed by current zoning.  If current
rebuilding provisions were followed, there is the potential for a
loss of housing units on these sites.
     (d)  In order to preserve the City's housing stock, to
encourage rapid rebuilding of residential and commercial
structures, to maintain the City's existing residential and
commercial character, and to otherwise promote the public
welfare, it is necessary to adopt an expedited permit process for
rebuilding, and reconstruction standards which encourage
rebuilding.  
     (e)  This Ordinance creates a new permit, an Earthquake
Recovery Permit, a substantially complete application for which
must be filed by April 19, 1997.   An Earthquake Recovery Permit
will authorize repair and reconstruction of earthquake damaged
structures to their pre-earthquake condition.  The Ordinance also
establishes an expedited review process, in which the level of
review depends upon the extent of damage to the structure and the
overall size of the project.  This Ordinance sets property
development standards, allowing in-kind repair or reconstruction
of legal nonconforming structures without complying with current
zoning requirements.  The Ordinance also delineates the building
standards applicable to repair and reconstruction, which depend
upon the magnitude of damage to the structure.  The Ordinance
establishes reoccupancy rights for displaced residential tenants
of buildings requiring repair or reconstruction. 
     (f)  In order to preserve some level of affordability of
residential rental units, and at the same time provide an
incentive to rebuild, this Ordinance allows residential rental
structures which are demolished and reconstructed to increase in
size by fifteen percent (15%).  An affordable housing obligation
is also created for structures requiring a removal permit from
the Rent Control Board.  The obligation may be satisfied by
complying with any Rent Control Board imposed affordable housing
obligation, or by deed restricting twenty-five percent (25%) of
the units to be affordable to low and moderate income households,
with the remainder of the units uncontrolled at market rents.  


     SECTION 2.  Definitions.  Words used in this Ordinance shall
be defined as provided in this Section.  Words not specifically
defined in this Ordinance shall be defined as set forth in the
Zoning Ordinance.
     (a)  Affordable Housing Unit.  A rental unit meeting the
requirements of Section 5 of this Ordinance which is affordable
to a household with low or moderate income.
     (b)  Change of Use.  For residential structures, a change to
non-residential use,  a change from apartments to condominiums,
or withdrawal from the rental housing market pursuant to the
Ellis Act after the January 17, 1994 Northridge earthquake; for
non-residential structures,  any use with a different parking
requirement. 
     (c)  Cost of Repair.  The estimated cost to repair or
reconstruct to be determined by the City based upon information
provided pursuant to Section 6(a) of this Ordinance.  Cost of
repair shall include the cost of including any additional square
footage allowed as a size incentive pursuant to this Ordinance.
     (d)  Current Technical Codes.  The provisions of Santa
Monica Municipal Code Chapter 8.04, and any other construction
related technical codes adopted by the City, in effect at the
time of issuance of the building permit.
     (e)  Earthquake Damaged Structures.  Structures damaged by
the Northridge earthquake or its aftershocks for which the cost
of repair exceeds $1.00 per square foot of building area.
     (f)  Earthquake Recovery Permit.   A permit to repair, or
remove and reconstruct, earthquake damaged structures or portions
of earthquake damaged structures, issued pursuant to this
Ordinance. 
     (g)  In-kind.  In-kind means that, excluding any Size
Incentive allowed by this Ordinance, and except as necessary to
comply with required Current Technical Code provisions:
          (1)  The square footage of the proposed structure does
not exceed the amount which existed in the building pre-earthquake;
          (2)  The number of dwelling units is the same as the
number existing pre-earthquake (although the number of bedrooms
or configurations of units may vary);
          (3)  The height of the structure is no greater than
that which existed pre-earthquake;
          (4)  The setbacks are no less than those which existed
pre-earthquake;
          (5)  The number of parking spaces provided is no less
than the parking provided pre-earthquake (unless the structure is
located in the Downtown Parking Assessment District);
          (6)  Lot coverage is no greater than that which existed
pre-earthquake;
          (7)  Landscaping, trash and recycling enclosures are
substantially similar to those existing pre-earthquake; and
          (8)  There is no change in use except as specifically
allowed by this Ordinance. 
     (h)  Landmark eligible.  A structure meeting one or more of
the following criteria:
          (1)  Listed on the National Register of Historic
Places;
          (2)  Listed on the California Register of Historical
Resources;
          (3)  Designated as a City Landmark;
          (4)  Identified in the City of Santa Monica Historic
Resources Inventory Volumes I, II, and III, and evaluated as: (a)
eligible for the National Register of Historic Places as an
individual structure or as part of a district or (b) eligible for
designation as a City Landmark.
     (i) New Construction.  For non-residential structures, any
construction which is not in-kind; for residential structures,
any construction which, excluding any Size Incentive allowed by
this Ordinance, is not in-kind. 
     (j)  Pre-earthquake.  The conditions existing immediately
prior to the January 17, 1994 Northridge earthquake.
     (k)  Reconstruction.  The in-kind restoration or rebuilding
of an earthquake damaged structure in which more than 50% of the
exterior walls are removed to the foundation.
     (l)  Repair.  The in-kind restoration of an earthquake
damaged structure in which no more than fifty percent (50%) of
the exterior walls are removed to the foundation.
     (m)  Replacement Value.  The estimated cost of replacing the
earthquake damaged structure, to be determined by the City using
the most current Building Valuation Table published by the
International Conference of Building Officials. 
     (n)  Residential Rental Project.  A parcel containing two or
more rental dwelling units not held in condominium or cooperative
ownership.  Any project for which a TORCA application has
received final City approval shall not be considered a
Residential Rental Project.
     (o)  Significant Design Change.  The architectural style of
a building, building footprint, or the majority of the exterior
building materials are substantially different from that which
existed pre-earthquake.
     (p)  Size Incentive.  An incentive allowing a total square
footage increase of up to fifteen percent (15%) over pre-earthquake square footage on the parcel, and a total height
increase of five feet per structure on the parcel; but not
allowing any increase in the number of dwelling units.
     (q)  Tenant.  Any tenant, subtenant, lessee, sublessee, or
any other person occupying a rental housing unit pursuant to a
rental housing agreement. 
     
     SECTION 3. Applicability.  This Ordinance authorizes the
issuance of an Earthquake Recovery Permit only for In-kind repair
or reconstruction of earthquake damaged structures.  Any
application for repair, demolition, or  replacement of earthquake
damaged structures involving other than in-kind repair or
reconstruction shall be considered an application for New
Construction.
     An application for an Earthquake Recovery Permit shall be
processed and evaluated pursuant to the provisions of this
Ordinance.  The provisions of this Ordinance shall not apply to
applications for New Construction except as provided in Section
4(f).  An application for New Construction shall be processed and
evaluated under applicable Municipal Code provisions, including
Subchapter 9.04.18 of the Zoning Ordinance concerning the repair
and alteration of nonconforming building and uses. 

     SECTION 4.  Earthquake Recovery Permit Development Standards
and Use Restrictions.  An Earthquake Recovery Permit authorizes
In-kind repair or reconstruction, subject to the following
provisions:
     (a)  Nonconforming Buildings and Structures.  Any legal
nonconforming building or structure otherwise qualifying for an
Earthquake Recovery Permit may be reconstructed to its previous
nonconforming status.  Any residential unit created without a 
building permit, and registered with the Santa Monica Rent
Control Board (a "bootleg unit"), may be repaired provided the
unit meets minimum habitability standards.  Residential Rental
Projects which are reconstructed pursuant to this Ordinance and
which contain one or more bootleg units may count those units in
the total number of units which may be reconstructed provided all
reconstructed units meet the requirements of the Current
Technical Codes. 
     (b) Change in Use.  No change in use shall be allowed for a
residential structure.  For a non-residential structure,  a
nonconforming use may be resumed after repair or reconstruction,
or may be replaced with a conforming use, and a conforming use
may be changed to another conforming use; however, in no
circumstance may the parking requirement for the new use exceed
the parking requirement for the pre-earthquake use. 
Notwithstanding the above, nonconforming office use shall not be
replaced with nonconforming retail use, and nonconforming retail
use shall not be replaced with nonconforming office use.
     Notwithstanding the provisions of Section 2(g)(2), a
nonconforming nonresidential use in a residential district may be
changed to a residential use, provided all other provisions of
this Ordinance are met, and provided the following criteria are
met:
          (1)  The number of dwelling units provided in the
project does not exceed the number of dwelling units authorized
for new construction in the zoning district in which the project
is located;
          (2)  The Planning Commission, or City Council on appeal
approves such change of use based upon the findings contained in
Section 8(c) of this Ordinance;
          (3)  The project complies with either the affordable
housing obligations of Section 5 of this Ordinance or, at the
applicant's option, the provisions of Municipal Code Chapter
9.28, the City's Inclusionary Housing Program.
          (4)  If a condominium project, a tentative parcel map
or tract map is processed and approved concurrently with the
Earthquake Recovery Permit.   
     (c)  Size Incentive.  A Residential Rental Project
qualifying for an Earthquake Recovery Permit is entitled to a
Size Incentive.  A Size Incentive allows a total square footage
increase of up to fifteen percent (15%) over pre-earthquake
square footage on the parcel,  and a total height increase of
five (5) feet per structure on the parcel, but does not allow any
increase in the number of dwelling units.  A reconstructed
building qualifying for a Size Incentive may have lot coverage or
setbacks which vary from those of the pre-earthquake structure,
but no new nonconformity in lot coverage or setbacks may be
created, or any existing nonconformity in lot coverage or
setbacks be increased.  Notwithstanding the above, a
reconstructed building qualifying for a Size Incentive may create
or increase a nonconformity in lot coverage or FAR, if the total
increase in square footage at the ground level does not exceed
five hundred (500) square feet, and the addition does not create
or increase any other nonconformity.  A size incentive may not be
used to construct an additional structure or structures on the
parcel which did not exist pre-earthquake.  In mixed-use
projects, the size incentive may be used only for the residential
portion.
     (d)  Parking Incentive.  A Residential Rental Project
qualifying for an Earthquake Recovery Permit which is
nonconforming with respect to parking, may add additional covered
parking spaces provided the additional spaces otherwise comply
with current Zoning Ordinance provisions.  The square footage of
the additional parking shall not count toward the fifteen percent
(15%) square footage increase allowed under a Size Incentive.
     (e)  Height Modifications.  Notwithstanding Section 2(g)(3)
of this Ordinance, the height of a reconstructed commercial
structure may be increased above the pre-earthquake height
subject to the following conditions:
          (1)  The structure is located in a commercial district;
          (2)  The structure is not adjacent to, or separated by
an alley from any residential use;
          (3)  The pre-earthquake structure was varied in height;
          (4)  The height of the reconstructed structure does not
exceed the maximum height of the highest portion of the pre-earthquake structure, or the maximum height permitted in the
zoning district, whichever is less.
     (f) Single family home reconstruction and new construction. 
          (1)  Notwithstanding the provisions of Section 2(g)(4)
and 2(g)(6) of this Ordinance, a reconstructed single family home
may have greater lot coverage or decreased setbacks from those
existing pre-earthquake, provided no pre-earthquake nonconformity
is increased or new nonconformity created, and the structure
otherwise complies with all other provisions of this Ordinance.
          (2)  Notwithstanding Municipal Code Section
9.04.20.10.030(d), a project involving new construction of an
earthquake damaged single family home may apply for a variance to
be processed pursuant to Part 9.04.20.10 of the Municipal Code in
order to retain pre-earthquake nonconforming setbacks, if the
portion of the structure which creates the nonconformity is
retained rather than demolished as part of the new construction.
          
     SECTION 5.  Affordable Housing Obligation.  The provisions
of the City's Inclusionary Housing Program, Chapter 9.28 of the
Municipal Code, shall not apply to any project obtaining an
Earthquake Recovery Permit, except as specifically incorporated
in this Section.  An affordable housing obligation shall apply to
any Residential Rental Project obtaining an Earthquake Recovery
Permit which also obtains a removal permit from the Santa Monica
Rent Control Board.  The following affordable housing obligations
shall apply:
     (a)  If the project has an affordable housing obligation
imposed by the Rent Control Board, such obligation shall be
deemed to satisfy the requirements of this Section.
     (b)  If no affordable housing obligation is imposed by the
Rent Control Board, in exchange for the modification of
development standards and waiver of fees authorized by this
Ordinance, not less than twenty-five percent (25%) of the total
number of dwelling units in the Residential Rental Project shall
be affordable to low and moderate income households.  Low and
moderate income levels shall be defined as set forth in Santa
Monica Municipal Code Section 9.28.020.
     (c)  In determining the number of  affordable units
required, the following chart shall be utilized:

No. of Units
Reconstructed  Low Income     Moderate Income
     2              0              1
     3              0              1         
     4              0              1
     5              0              1
     6              1              1
     7              1              1
     8              1              1
     9              1              1
     10             1              2
     11             1              2
     12             1              2
     13             1              2
     14             2              2
     15             2              2
     16             2              2
     17             2              2
     18             2              3
     19             2              3
     20             2              3

     For more than twenty (20) units, the number of affordable
units required shall equal twenty-five percent (25%) of the
number of units built; any decimal fraction of 0.5 or more
rounded up to the nearest whole number, and any decimal fraction
of less than 0.5 rounded down to the nearest whole number.  The
first affordable unit required may be affordable to low or
moderate income households, and alternating thereafter.    
     (d)  Affordable units may have reduced size or amenities as
long as there are no significant identifiable differences between
the affordable units and market rate units visible from the
exterior of the dwelling units, and the size of each of the
affordable units is equal to average market unit size, or
satisfies the following minimum total floor area, whichever is
smaller:
               0 bedroom                500 square feet
               1 bedroom                600 square feet
               2 bedrooms               850 square feet
               3 bedrooms               1080 square feet
               4 bedrooms               1200 square feet.

     (e)  The mix of bedroom sizes of affordable units shall be
substantially similar to the mix of bedroom sizes of the market
rate units in the project.
     (f)  Affordable units shall also comply with the
requirements for inclusionary units set forth in Santa Monica
Municipal Code Sections 9.28.060(c), 9.28.100, 9.28.110,
9.28.130, and 9.28.140.
     (g)  Applicability of this Section to Properties Withdrawn
Pursuant to the Ellis Act.  Any project involving a parcel
containing two or more dwelling units which, at the time of the
January 17, 1994 Northridge earthquake, had been withdrawn from
the rental market pursuant to the Ellis Act and which otherwise
qualifies for and obtains an Earthquake Recovery Permit shall
comply with the 25% affordable housing obligation of this Section
5 should any of the units be rented after repair or
reconstruction.     
     SECTION 6.  Earthquake Recovery Permit Application.  To
request an Earthquake Recovery Permit, the applicant must submit
a complete application on a form provided by the Planning and
Zoning Division in addition to any other material, reports,
dimensioned plans, or other information required to take action
on the application.  Each application shall also include:   
     (a)  Two estimates of the cost of repair or reconstruction
from properly licensed contractors. The estimates must contain
sufficient detail to ascertain the scope of the proposed work and
include the contractor's profit, overhead and insurance cost.
     (b)  For structures that have been posted with either a no
entry notice (Red-tagged) or limited entry notice (Yellow-tagged), a written structural analysis of the structure prepared
by a licensed engineer in accordance with the standards provided
by the Building and Safety Division.
     (c)  Two sources of documentation of the pre-earthquake
condition of the property or structure sufficient to enable the
City to determine whether the project involves in-kind repair or
reconstruction.  Documentation may include:  approved building
permits; approved construction drawings; surveys from licensed
surveyors; county assessor information; certified property
appraisals; Sanborn maps; reports or drawings prepared by an
insurance company to support damage claims; photographs; City
planning records; or any other verifiable information.

     SECTION 7.  Review process.  Each application for an
Earthquake Recovery Permit shall require plan check approval as
the final review prior to issuance of the Earthquake Recovery
Permit.  In addition, the following procedures shall apply:
     (a)  Where the cost of repair is less than fifty percent
(50%) of the replacement value of the structure, or where less
than fifty percent (50%) of the exterior walls are removed to the
foundation (regardless of cost of repair), the following review
or reviews will be required:
          (1)  If there is not a significant design change from
the original design, plan check only.
          (2)  If the project includes a Size Incentive,
Administrative Approval ("AA") is required.
          (3)  If there is a significant design change, 
Architectural Review Board ("ARB") review is required.  Single
family homes are not subject to ARB review pursuant to this
subsection unless the structure is also landmark eligible.
          If an application requires both AA and ARB review, AA
review shall precede ARB review.  
     (b)  Where the cost of repair equals or exceeds fifty
percent (50%) of the replacement value of the structure, and 
fifty percent (50%) or more of the exterior walls are removed to
the foundation, but the development on the parcel is below the
development review threshold for the district in which it is
located, ARB review shall be required.  If the project includes a
Size Incentive, AA Review shall also be required prior to ARB
review.
     (c)  Where the cost of repair equals or exceeds fifty
percent (50%) of the replacement value and fifty percent (50%) or
more of the exterior walls are removed to the foundation, and the
development on the parcel is above the development review
threshold for the district in which it is located, Planning
Commission review is required prior to plan check.  ARB review
shall not be required for any project requiring Planning
Commission review.
     (d)  Hearings and Notice.  Review by the ARB or Planning
Commission shall require a public hearing, to be noticed and
conducted substantially in compliance with the provisions of
Section 9.32.180 of the Municipal Code for ARB hearings, and Part
9.04.20.22 of the Zoning Ordinance for Planning Commission
hearings.  For Planning Commission hearings, notice shall be
given to all owners and residential and commercial tenants of
property within a radius of 300 feet from the exterior boundaries
of the property involved in the application. 
     (e)  Issuance of Building Permit.  A building permit shall
be issued only after the application has received all approvals
required under this Section, and after approval is granted from
the California Coastal Commission if required.  A project may
apply for an Earthquake Recovery Permit before obtaining a
removal permit or determination that a removal permit is not
required from the Rent Control Board.  A building permit shall
not issue, however, until such removal permit or determination is
granted.
     (f)  Demolition Permit.   Projects receiving a Earthquake
Recovery Permit pursuant to this Ordinance shall not require a
separate demolition permit. Demolition may occur at any time
after the building permit is granted, and while the building
permit is still valid.  Demolition other than pursuant to an
Earthquake Recovery Permit shall require a demolition permit
pursuant to applicable Municipal Code provisions unless the
demolition was ordered by the City's Nuisance Abatement Board.
     (g)  Appeals.  Action of the ARB and Planning Commission
shall be appealable pursuant to the provisions of Section
9.32.160 of the Municipal Code and Part 9.04.24 of the Zoning
Ordinance, except that the appeal of any ruling of the ARB or
Planning Commission must be made within five (5) days of the date
that such ruling is made.

     SECTION 8.  Standards for Review.  The following standards
shall govern the review of an application for an Earthquake
Recovery Permit:  
     (a)  AA Review.  AA approval shall be granted if the project
plans reflect in-kind repair or reconstruction, and any
additional square footage, height or FAR complies with the Size
Incentive requirements of this Ordinance.
     (b)  ARB Review.   The ARB, or Planning Commission on
appeal, shall grant approval if both of the following findings
can be made:
          (1)  The structure's architectural design is
substantially similar to the pre-earthquake design; or, if a
significant design change is involved, the structure's
architectural design is compatible with the general area in which
it is located. 
          (2)  If the structure is landmark eligible, the repair
will not compromise the architectural or historical integrity of
the structure or potential district; or, if reconstruction is
involved, based upon an estimate from a professional experienced
in rehabilitation of historic structures, it is not economically
feasible to repair the structure. 
     (c)  Planning Commission Review.  The Planning Commission,
or City Council on appeal, shall grant approval if all of the
following findings can be made:
          (1)  The structure's architectural design is
substantially similar to the pre-earthquake design; or, if a
significant design change is involved, the structure's
architectural design is compatible with the general area in which
it is located. 
          (2)  The plan for the proposed building or structure is
expressive of good taste, good design, and in general contributes
to the image of Santa Monica as a place of beauty, creativity and
individuality.
          (3)  The proposed building or structure is not of
inferior quality such as to cause the nature of the local
neighborhood or environment to materially depreciate in
appearance and value.
          (4)  If the structure is landmark eligible, the repair
will not compromise the architectural or historical integrity of
the structure or potential district; or, if reconstruction is
involved, based upon an estimate from a professional experienced
in rehabilitation of historic structures, it is not economically
feasible to repair the structure.   
     (d)  Plan Check.  Plan check review will be limited to the
issue of whether the project complies with the requirements of
this Ordinance.
     (e)  Conditions of Approval.  In granting approval of an
Earthquake Recovery Permit, the ARB, Planning Commission, or City
Council on appeal, may impose only such conditions as may be
deemed necessary to bring the project into compliance with this
Ordinance, or as necessary to enable the required findings for
approval to be made. 
  
     SECTION 9.  Duration of Permit.  A substantially complete
application must be filed by April 19, 1997 in order to obtain an
Earthquake Recovery Permit. No Earthquake Recovery Permit shall
be granted for any project which does not meet this requirement. 
The rights granted by an Earthquake Recovery Permit shall expire
if a building permit is not issued by April 19, 1998, or if the
building permit expires.
     No extensions of an Earthquake Recovery Permit shall be
granted.  After expiration of an Earthquake Recovery Permit, any
subsequent application shall be considered an application for New
Construction.
     
     SECTION 10.  Composition of ARB.  For purposes of ARB review
of an application for an Earthquake Recovery Permit involving a
landmark eligible structure, structure of merit, structure within
a historic district, or structure identified on the City Historic
Resources Inventory, Volumes 1, 2, and 3 as of January 17, 1994,
two (2) members of the Landmarks Commission, appointed by that
body, shall serve as additional voting members of the
Architectural Review Board.  Five (5) affirmative votes shall be
required for approval.

     SECTION 11.  Planning Commission Review.  For purposes of
Planning Commission review of an application for an Earthquake
Recovery Permit, one (1) member of the Architectural Review
Board, appointed by that body, shall sit with the Planning
Commission and may vote on that permit.  Five (5) affirmative
votes shall be required for approval.

     SECTION 12.  Building Standard Compliance.  The following
building standards govern any work performed pursuant to an
Earthquake Recovery Permit:
     (a)  When the cost of repair does not exceed ten percent
(10%) of the replacement value of the structure, only the damaged
portion of the structure may be restored to the pre-earthquake
condition without complying with Current Technical Codes. 
Notwithstanding the above, when the repair includes repair to
suspended ceiling systems, the repair must comply with Current
Technical Codes.
     (b)  When the cost of repair is greater than ten percent
(10%) but less than fifty percent (50%) of the replacement value
of the structure, the damaged elements, as well as the essential
ties and support elements associated with the damaged elements,
shall be brought into conformance with the structural
requirements of the Current Technical Codes. 
     (c)  When the cost of repair equals or exceeds fifty percent
(50%) of the replacement value of the structure, the entire
structure shall be brought into conformance with the Current
Technical Codes.
     (d)  Landmark eligible buildings shall comply with
subsections (a) through (c) above; however, an owner may request
a modification of the above standards which shall be granted so
long as the requested modification is consistent with Part 8,
Title 24, California Code of Regulations, the State of California
Historical Building Code.
     (e)  Notwithstanding (a) - (c) above, the provisions of
Ordinance Number 1729(CCS) concerning repair and reconstruction
criteria for unreinforced chimneys and walls over 42 inches in
height shall apply to any project obtaining an Earthquake
Recovery Permit.  
     (f)  The standards of this Section shall constitute minimum
standards.  Nothing in this Section 12 shall be construed to
prohibit an owner from repairing or reconstructing a structure to
a higher standard than set forth in this Section.
     (g)  When compliance with this Section 12 requires
modification to pre-earthquake square footage, height, setbacks,
or other pre-earthquake conditions, such modification shall be
deemed to be "in-kind" only if it is the sole means by which
compliance with this Section can be achieved.

     SECTION 13.  Compliance With Other Laws.  Except as
otherwise specifically provided in this Ordinance, projects
obtaining an Earthquake Recovery Permit shall not be required to
comply with the following provisions of the Santa Monica
Municipal Code:
     (a)  Chapter 7.10 concerning Urban Runoff Pollution;
     (b)  Chapter 9.04 concerning Zoning Regulations;
     (c)  Chapter 9.28 concerning Inclusionary Housing;
     (d)  Chapter 9.32 concerning Architectural Review;
     (e)  Chapter 9.36 concerning Landmarks and Historic
Districts; and
     (f) Chapter 9.40 concerning the Third Street Neighborhood
Historic District Standards.
     Except as specifically exempted in this Section, projects
obtaining an Earthquake Recovery Permit shall comply with the
Municipal Code and all other applicable laws and regulations. 
For purposes of Chapter 9.52, the Santa Monica Sign Ordinance,
nonconforming signs removed during work performed pursuant to an
Earthquake Recovery Permit shall not be replaced, or shall be
modified to conform to the requirements of the Sign Ordinance.  

     SECTION 14.  Right of Displaced Tenant to Reoccupy
Residential Housing Unit.  A tenant displaced from a  residential
housing unit in an earthquake damaged structure shall be entitled
to reoccupy the unit in accordance with the following provisions: 
     (a)  Any owner who reconstructs a residential housing unit 
pursuant to an Earthquake Recovery Permit shall first offer the
reconstructed unit for rent or lease to any tenant who has been
displaced from the unit due to the need to undertake the
reconstruction.  This offer shall be made in the manner
established by subdivisions (b) and (c) of this Section and shall
only be required if the tenant  has previously provided the owner
with written notice indicating  his or her desire to renew or
reestablish the tenancy and  providing an address  to which the
owner should mail the offer.  That tenant  should advise the
owner at any time during the displacement period of a change of
address  to which the offer should be sent.
     (b)  Within fifteen (15) days after final City sign-off on
the building permit authorizing the reconstruction, the owner
shall submit a good faith offer to renew a rental agreement or
lease on terms permitted by law to any displaced tenant who has
complied with the requirements of subdivision (a) of this
Section.  The owner shall also inform the tenant of the expected
date that the unit will be available.
     (c)  This offer shall be deposited in the United States
mail, by registered or certified first class mail with postage
prepaid, addressed to the displaced tenant at the address
furnished to the owner as provided in this Section and shall
describe the terms of the offer.  The displaced tenant shall have
thirty (30) days from the deposit of the offer in the mail to
accept the offer by personal delivery of that acceptance or by
deposit of the acceptance in the United States mail by registered
or certified first class mail with postage prepaid.
     (d)  Within five (5) days after final City sign-off on the
building permit authorizing the repair of an earthquake damaged
structure, any owner who  recovered possession of a residential
housing unit due to the need to undertake the repairs shall
notify the displaced tenant that the unit is ready for
reoccupancy.  Any tenant who has been displaced from such a unit
for a period exceeding fourteen (14) days shall have fourteen
(14) days from the receipt of the owner's notice to reoccupy the
unit and recommence rent payments.   This notification shall be
made in the manner established by subdivision (e) of this Section
and shall only be required if the displaced tenant has previously
provided the owner with written notice indicating his or her
desire to reoccupy the unit and providing an address to which the
owner should notify the tenant that the unit is available for
reoccupancy.  That tenant should advise the owner at any time
during the displacement period of a change of address to which
the notification should be sent.
     (e)  The notification to a displaced tenant that his/her
unit is ready for reoccupancy as required by subdivision (d) of
this Section shall be deposited in the United States mail, by
registered or certified first class mail with postage prepaid,
addressed to the displaced tenant at the address furnished to the
owner and shall state the current maximum allowable rent for the
unit. 
     (f)  The City shall make available official forms to tenants
entitled "Notice of Desire to Renew Tenancy or Reoccupy Unit" and
"Notice of Change of Address" which may be utilized by tenants to
meet the notice requirements of subdivisions (a) and (d) of this
Section.
     (g)  A copy of any notice required to be provided to an
owner or a displaced tenant under this Section shall be provided
to the Santa Monica Rent Control Board within five (5) business
days after it is provided to the owner or displaced tenant.
     (h)  No owner or agent of the owner shall rent a residential
housing unit in an earthquake damaged structure to a new tenant 
unless the owner has complied with the terms of this Section or
is otherwise excused from complying with this Section.
     (i)  Any displaced tenant may prosecute a civil action to
enforce this Section.  The relief available to the tenant in such
an action shall include money damages, equitable relief, and
reasonable attorneys' fees.
     (j)  The right of a displaced tenant to renew a tenancy or
reoccupy a residential housing unit as established in this
Section is in addition to any right to reoccupancy or renewal
that may otherwise be authorized by law or contract.
     (k)  Notwithstanding any provision of Section 5 of this
Ordinance to the contrary, a displaced tenant may have priority
for the rental of affordable housing units.  This priority will
be established by administrative regulation to be adopted by the
City's Housing and Redevelopment Division.   

     SECTION 15.  Certificate of Economic Hardship.  An
application for a Certificate of Economic Hardship for any
Landmark, or building or structure within a Historic District,
which is filed in connection with an application for a demolition
permit for a structure which has been posted with a no-entry
(red-tagged) or limited entry (yellow-tagged) notice as a result
of damage caused by the January 17, 1994 Northridge Earthquake or
its aftershocks ("Earthquake") shall be subject to the provisions
of Chapter 9.36 of the Municipal Code, except as amended below:
     (a)  Timeliness.
          (1)  Any application filed pursuant to Section 9.36.170
shall be deemed complete or incomplete within seven (7) working
days after the Planning Division receives a substantially
complete application together with all information, plans,
specifications, statements of work, and any other materials and
documents required by the application form supplied by the City.
          (2) The public hearing required by Section 9.36.170(c)
shall be held within forty-five (45) days of the date on which an
application for a Certificate of Economic Hardship was deemed
complete.
          (3)  The notice of public hearing required by Section
9.36.170(c) shall be given not less than seven (7) days before
the date scheduled for the hearing.
          (4)  The time in which the Commission must render a
decision on the application pursuant to Section 9.36.170(d) shall
be not later than sixty (60) days after the application was
deemed complete.
          (5)  Any notice of appeal filed pursuant to Section
9.36.180(b) concerning Commission determination on an application
for a Certificate of Economic Hardship must be filed within five
(5) working days of the date that such determination was made or
deemed approved or disapproved.
          (6)  The hearing required by Section 9.36.180(c) shall
be held within thirty (30) days after the notice of appeal is
properly filed with the Director of Planning and the City Clerk.
          (7)  The notice of public hearing required by Section
9.36.180(d) shall be given not less than seven (7) days before
the date scheduled for the hearing.
          (8)  The investigation, recommendation, and other
actions required by Section 9.36.160(d) shall not cause a delay
in the application, but shall be completed within the time
specified in Subsection (a)(4)  above.
          (9)  The time periods specified in subsections (a)(1)
through (a)(8) above may be extended upon mutual agreement of the
Commission and applicant.
     (b)  Evidence on Appeal.  Except for additional evidence  or
testimony specifically requested by the City Council, the City
Council on appeal shall rely on the evidence presented to the
Landmarks Commission.  Additional evidence may be submitted to
the City Council only if such evidence could not feasibly have
been presented to the Landmarks Commission.   Nothing in this
Section is intended to affect the ability of the public to
testify at the public hearing on the appeal, or to prevent the
submittal of rebuttal testimony the necessity of which would not
have been evident prior to the Landmarks Commission hearing.   
  
     SECTION 16. California Environmental Quality Act ("CEQA")
Compliance.  The City shall comply with the California
Environmental Quality Act in processing applications for
Earthquake Recovery Permits, and each application shall be
considered on an individual basis to determine whether the
project is exempt, or whether, and what level of environmental
review is required.

     SECTION 17. Ordinance Number 1823(CCS) is hereby repealed.

     SECTION 18.  Any provision or provisions of the Santa Monica
Municipal Code or appendices thereto, inconsistent with the
provisions of this Ordinance, to the extent of such
inconsistencies and no further, are hereby repealed or modified
to that extent necessary to effect the provisions of this
Ordinance.

     SECTION 19.  If any section, subsection, sentence, clause,
or phrase of this Ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of any competent
jurisdiction, such decision shall not affect the validity of all
remaining portions of this Ordinance.  The City Council hereby
declares that it would not have passed this Ordinance if any
portion, section, subsection, sentence, clause, or phrase would
subsequently be declared invalid or unconstitutional.

     SECTION 20.  The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance.  The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption.  This Ordinance shall be
effective 30 days from its adoption.

APPROVED AS TO FORM:

______________________________
MARSHA JONES MOUTRIE
City Attorney