Santa Monica Settlements Extend Affordable Housing Protections On 5 Apartments

SANTA MONICA, CA — Affordable housing protections on five Santa Monica apartments will remain in place longer under settlements reached after a city audit raised concerns about vacancies, tenant eligibility and reporting requirements.

The Santa Monica City Attorney's Office announced Wednesday that it had resolved two enforcement matters involving apartment buildings at 1047 Fourth St. and 1537 15th St. The cases stemmed from a Housing Division audit of compliance with affordable housing agreements at the properties.

Under the settlements, affordability requirements for five rental units will be extended for a combined six years. Quest Properties, LP, which owns the Fourth Street property, will also pay $20,000 to the city to support affordable housing.

The city alleged that the property owners failed to demonstrate that affordable units were occupied by income-qualified households of the required size, allowed unjustified long-term vacancies in affordable units, failed to adequately verify tenants' income eligibility and submitted incomplete or inaccurate annual reports.

Neither property owner admitted liability in reaching the settlements.

Five-Year Extension At Fourth Street Property

Quest Properties agreed to extend the affordable housing requirements at 1047 Fourth St. for five years, including restrictions on rents.

The company must also provide tenants with notices about affordable housing requirements and will be subject to a management probationary period. During that period, the city can require Quest Properties to hire a city-approved third-party property manager if the owner violates affordable housing requirements.

Quest Properties will also make the $20,000 payment to the city to support affordable housing.

At 1537 15th St., owner LA Urban Townhomes II, LLC agreed to a one-year extension of the property's affordable housing requirements, including rent limits.

Together, the agreements extend affordability protections on the five affected apartments for a combined six years.

City Audits Affordable Housing Compliance

Santa Monica's Housing Division and City Attorney's Office audit and enforce requirements under the city's Below Market Housing Program, which the city describes as one of its primary sources of affordable housing, particularly in newer apartment buildings that state law exempts from rent control.

The city's Affordable Housing Production Program requires owners of covered properties with affordable units to submit annual reports identifying the units, their rents, vacancy information and verification of the income of households occupying them. The municipal code also allows the city to conduct compliance monitoring when affordable units are rented and when annual reports are submitted.

"The City appreciates property owners' contribution to our efforts to fight homelessness and provide housing for all," City Attorney Heidi von Tongeln said in announcing the settlements. "But where bargained-for affordable housing benefits are not provided, our office will take enforcement action."