Malibu Municipal Code § 7.4 Constraints

(a) Land Use Plans and Regulations

General Plan

Each city and county in California must prepare a comprehensive, long-term General Plan to guide its future development. The Land Use Element of a City's General Plan establishes the basic land uses and density of development within the various areas of the city. Under state law, the General Plan elements must be internally consistent and the city's zoning ordinance, and Local Coastal Program, as applicable, must be consistent with the General Plan. Thus, the land use plan must provide suitable locations and densities in order to implement the policies of the Housing Element.

The City of Malibu's ("City") General Plan Land Use Element provides for five residential land use designations, as shown in Table 7-23.

Table 7-23 Residential Land Use Categories Malibu General Plan

Source: City of Malibu General Plan

While the City has a considerable amount of vacant land, only a small portion is suitable for development because of steep hillsides, unstable soils and subsurface conditions, extreme fire hazards, and environmentally sensitive habitat areas (ESHA). Since its incorporation in 1991, the City has focused its efforts on preserving its rural character, protecting environmental resources, and improving fire safety.

With highly constrained land, limited infrastructure, and high land costs, the City's approach to accommodating affordable housing is to identify unconstrained sites at appropriate densities and to successfully leverage state and federal subsidies for affordable housing. The encouragement of second units is also important, as most of Malibu's development consists of single-family homes and associated accessory structures.

Zoning Designations and Development Standards

The City regulates the type, location, density, and scale of residential development through Title 17 of the M.M.C. (Zoning Ordinance/Zoning Map). Additionally, because the City of Malibu lies entirely within the Coastal Zone, all of the zoning designations and development standards have been incorporated into the LCP. The LIP includes additional development standards and coastal resource protection policies that are intended to augment the M.M.C. Zoning regulations serve to implement the General Plan and are designed to protect and promote the health, safety, and general welfare of residents. The M.M.C. and LCP also help to preserve the character and integrity of existing neighborhoods. The M.M.C. and LCP set forth residential development standards for each zoning district.

Zoning districts that allow residential units as a permitted use are as follows:

A summary of the LCP/M.M.C. development standards for the zoning districts permitting residential development is provided in Table 7-24. These development standards are reasonably necessary to protect the public health, safety and welfare and maintain the quality of life, and are not considered to be constraints to the development of housing.

In the previous planning period, the LCP and M.M.C. were amended to establish an Affordable Housing Overlay (AHO) district that allows multi-family development by-right at a density of 20 units per acre when units exceeding the base density are reserved for low-and moderate-income households.

Table 7-24 Residential Development Standards

Source: City of Malibu Zoning Ordinance Notes:

In most residential areas of the City, densities range from about one unit per 20 acres (RR-20 zone) to six units per acre (MF zone). Higher densities (up to 23.1 units per acre, not to exceed four units per lot) occur along four small stretches of beachfront property, as well as on AHO parcels, which allow 20 units per acre.

A summary of the residential development permitted by the LCP/M.M.C. is provided in Table 7-25. (Note: The PD district is not included in the table because allowable uses and development standards are established through the PD permit process.)

Table 7-25 Permitted Residential Development by Zoning District

Source: Malibu LCP P = Permitted CDP = Coastal Development Permit CUP = Conditional Use Permit Notes.

Zoning for Lower-Income Housing

As shown in Table 7-25, the LCP and M.M.C. provide for a variety of housing types including single-family homes, multi-family (both rental and condominiums), manufactured housing and second units. Low-income housing can be accommodated in all residential districts. Second units, which are a tool in facilitating affordable housing, are permitted by right in all districts that permit detached single-family housing, specifically the RR, SF, MF, and MFBF Districts.

Density, Units per Parcel, Floor Area and Lot Coverage Limitations. Pursuant to Assembly Bill 2348[1], the "default density" for small Los Angeles County jurisdictions, including the City, is 20 dwelling units per acre[2]. The default density refers to the density at which low-income housing development is presumed to be feasible, although state law allows jurisdictions to propose alternative densities that are sufficient to facilitate affordable housing based on local experience and circumstances. The MFBF zone allows development of more than 20 units per acre. While the MFBF zone limits development to four units per parcel, this is not a constraint to development since there are no vacant parcels large enough to accommodate more than four units at the maximum allowable density. In the previous planning period the City amended the General Plan, LCP and M.M.C. to establish an Affordable Housing Overlay (AHO) zone allowing multi-family development at a minimum density of 20 units/acre by-right when affordable housing is provided. This amendment also included revisions to development standards to facilitate such development, such as maximum building square footage and lot coverage.

LCP Local Implementation Plan

The entire City is located in the Coastal Zone and is subject to the City's LCP Local Implementation Plan (LIP). The LIP includes development standards to protect environmentally sensitive habitat areas (ESHA) (LIP Chapter 4), native trees (LIP Chapter 5), scenic, visual, and hillside resources (LIP Chapter 6), shoreline and bluff areas (LIP Chapter 10), archaeological/cultural resources (LIP Chapter 11), public access (LIP Chapter 12), and water quality (LIP Chapter 17). Projects that contain or are located near identified coastal resources may require modifications or reductions in density to protect the identified resource. While the LIP is a City document, it must be consistent with the California Coastal Act, and any modification is subject to certification by the Coastal Commission. For a discussion of potential constraints raised by the LIP, see Chapter IV: Residential Permit Processing/Coastal Development Permit and Non-Governmental Constraints/Environmental Constraints.

Special Needs Housing

Persons with special needs may include those in residential care facilities, persons with disabilities, the elderly, farm workers, or persons needing emergency shelter, transitional living arrangements, or single room occupancy units. Many of these groups also fall under the category of extremely-low-income households. The City's provisions for these housing types are discussed below.

Extremely Low-Income Households

Many of the persons and households discussed in this section under the topic of special needs fall within the extremely-low-income category, which is defined as 30% or less of area median income, or up to $25,600 per year for a four-person household in Los Angeles County (2013).

A variety of City policies and programs described in the Housing Plan address the needs of extremely-low-income households, including those in need of residential care facilities, and persons with disabilities. However, it must be recognized that the development of new housing for the lowest income groups typically requires large public subsidies, and the level of need is greater than can be met due to funding limitations, especially during these times of declining public revenues.

Residential Care Facilities and Housing for Persons with Disabilities

Residential facilities refer to any family home, group care facility, or similar facility that provides non-medical care to persons in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual[3]. Health and Safety Code §§ 1267.8 and 1566.3 require local governments to treat licensed group homes and residential facilities with six or fewer residents no differently than other by-right single-family housing uses. "Six or fewer persons" does not include the licensee, the licensee's family, or persons employed as facility staff. The City shall not require a conditional use permit, zoning variance, or other zoning clearance of a residential facility which serves six or fewer persons which is not required of a family dwelling of the same type in the same zone[4].

Residential care facilities serving six or fewer persons are permitted by right in all residential districts in conformance with state law. The M.M.C. and the LCP allow large family day care facilities in the CG zone subject to a conditional use permit. The City has no requirements for minimum distance between residential care facilities.

The City's building codes require that new residential construction comply with the federal Americans with Disabilities Act (ADA). ADA provisions include requirements for a minimum percentage of units in new developments to be fully accessible to the physically disabled. Provisions of fully accessible units may also increase the overall project development costs. However, unlike the Uniform Building Codes (UBC), enforcement of ADA requirements is not at the discretion of the City, but is mandated under federal law.

Compliance with building codes and the ADA may increase the cost of housing production and can also impact the viability of rehabilitation of older properties required to be brought up to current code standards. However, these regulations provide minimum standards that must be complied with in order to ensure the development of safe and accessible housing. In order to facilitate the processing of requests to reduce architectural obstacles for persons with disabilities, a Reasonable Accommodation Ordinance and associated amendments to the LCP and M.M.C. were adopted in the previous planning period.

Farmworker Housing

As discussed in Chapter 7.2, Housing Needs Assessment, the City of Malibu does not have major agricultural areas nor has it identified a need for permanent on-site farm worker housing. However, the Employee Housing Act[5] requires that farmworker housing for up to 12 units or 36 beds be permitted by-right in zones that allow agricultural uses. Amendments to the M.M.C. and LCP were adopted in the previous planning period in conformance with the Employee Housing Act.

Emergency Shelters and Transitional/Supportive Housing

Emergency shelters are facilities that provide a safe alternative to the streets, either through a shelter facility or through the use of motel vouchers. Emergency shelter is short-term, usually for 30 days or less. Transitional/supportive housing is longer-term housing, typically up to two years or more. Transitional housing typically requires that residents participate in a structured program to work toward the established goals so that they can move on to permanent housing. Residents are often provided with an array of supportive services to assist them in meeting goals.

Senate Bill (SB) 2 of 2007[6] strengthened the planning requirements for emergency shelters and transitional/supportive housing. Unless adequate capacity is available to serve the existing emergency shelter need, SB 2 requires that shelters be allowed "by-right" (i.e., without a conditional use permit or other discretionary approval) in at least one zoning district. In accordance with SB 2, in the LCP and M.M.C. were amended in the previous planning period to allow permanent emergency shelters by-right in the Commercial General (CG) and Institutional (I) zoning districts subject to appropriate development standards. The CG zoning district encompasses approximately 26 acres and the Institutional district encompasses approximately 208 acres (see Figure IV-1). Parcels in these districts range in size from 0.1 acre to 14 acres. The majority of CG parcels are located within the Civic Center area, in the middle of the city. Several of the parcels along Malibu Creek are vacant and tucked away from surrounding commercial and residential development. The Institutionally-zoned parcels are scattered throughout the city and although the majority of them contain existing development (fire stations, schools and churches), the parcel in the Civic Center that contains the court house is currently underdeveloped and could accommodate a shelter.

SB 2 also requires that transitional and supportive housing be treated as a residential use subject to only those requirements that apply to other residential uses of the same type in the same zone. The LCP and M.M.C. allow transitional and supportive housing subject to the same standards and procedures as apply to other residential uses of the same type in the same zone in conformance with SB 2.

Single Room Occupancy

Single room occupancy (SRO) facilities are small studio-type units designed for extremely-low- and very-low-income persons. SRO facilities are permitted by-right in the CG zone subject to the following requirements:

Off-Street Parking Requirements

The City's parking requirements for residential uses vary by residence type. Single-family dwellings require two enclosed and two unenclosed spaces per unit. Multi-family dwellings require two parking spaces per efficiency (studio) unit and three spaces per one-and two-bedroom units. One additional parking space is required for each additional bedroom above two. The parking requirements are summarized in Table 7-26.

Through the provisions of state density bonus law[7], senior housing and other affordable housing projects are eligible to request reduced parking standards. It is widely accepted that senior and lower-income households have fewer cars on average than higher-income households. In order to reduce potential constraints to affordable housing development, reduced parking standards are allowed for multi-family projects that provide affordable housing consistent with state density bonus law.

Table 7-26 Residential Parking Requirements

Second Dwelling Units

In response to state-mandated requirements and local needs, the City allows the development of second dwelling units as a permitted accessory use (i.e., no discretionary approval required) in the RR, SF, MF, and MFBF zones. Second units must meet the following requirements:

Second units serve to augment resources for senior housing or other low-and moderate-income segments of the population. The development standards are reasonable to ensure neighborhood compatibility, and do not present an unreasonable constraint to development. During 2000 - 2010, 34 second units and 50 guest houses were permitted in the City. Guest houses do not have kitchen facilities and are not intended for full-time occupancy.

In order to expand opportunities for second units, Housing Plan Program 2.2A describes actions the City will take to encourage and facilitate the increased development of this type of housing.

Density Bonus

As part of the LCP, the City has adopted a residential Density Bonus Ordinance (LIP Section 3.7). Under the City's ordinance, a density increase of up to 35% over the otherwise maximum allowable residential density is available to developers who agree to construct housing developments with units affordable to low-or moderate-income households. The density bonus is applicable only to projects where the land use designations in the LCP allow development of at least five residential units on the property where the project is located. Additionally, the Density Bonus Ordinance requires that the project be consistent, to the maximum extent feasible and in a manner most protective of coastal resources.

Mobile Homes/Manufactured Housing

There is often an economy of scale in manufacturing homes in a plant, rather than on site, thereby reducing cost. State law precludes local governments from prohibiting the installation of mobile homes on permanent foundations on single-family lots. It also declares a mobile home park to be a permitted land use on any land planned and zoned for residential use, and prohibits requiring the average density in a new mobile home park to be less than that permitted by the LCP and M.M.C.

In the City, manufactured housing is allowed in all residential zones as a permitted use, provided the installation complies with the site development standards for the applicable zoning district. Mobile home parks, in existence as of City incorporation on March 28, 1991, are allowed as permitted use within the MH District. Modification to the number, layout, or density of mobile home spaces, or internal roads or parking areas requires a conditional use permit. The City currently has two mobile home parks, both located south of Pacific Coast Highway. The first is Paradise Cove Mobile Home Park (257 units), located just east of Point Dume and the second is the Point Dume Club Mobile Home Park (297 units), located just west of Point Dume.

The City's mobile home parks are its most significant source of affordable housing. Many mobile home park residents have limited or fixed incomes. The City has adopted mobile home park rent control regulations (M.M.C. Chapter 5.16) to ensure that mobile homes continue to provide affordable housing opportunities.

Building Codes

State law prohibits the imposition of building standards that are not necessitated by local geographic, climatic, or topographic conditions and requires that local governments making changes or modifications in building standards must report such changes to the California Department of Housing and Community Development (HCD) and file an expressed finding that the change is needed.

The City has adopted the latest 2011 Los Angeles County Building Codes, with all amendments which are based on the 2010 California Code. The City currently enforces the following codes: California Building, Residential, Plumbing, Mechanical, Electrical, Fire, Energy, and Green Building Standards.

As noted in Chapter III, the City has recently adopted the Local Energy Efficiency Standards Ordinance and the Landscape Water Conservation Ordinance. The energy ordinance preserves and enhances the environment, by setting forth minimum energy efficiency standards within the City for all new single-family dwellings, multi-family residential construction, nonresidential construction and substantial remodels. The City's ordinance includes measures which are more restrictive than the California Building Energy Efficiency Standards (Title 24). The water conservation ordinance applies to: 1) projects for a commercial, institutional, or multifamily use or a subdivision, any of which propose a new or altered landscape area, including public agency projects; and 2) projects for a single-family residential use proposing a new or altered landscape area of 2,500 square feet or more; in the case of a project associated with an existing single-family residence, the new or altered landscape area is subject to this Chapter when the landscape area is 5,000 square feet or more. The water conservation standards are intended to promote water conservation while allowing the maximum possible flexibility in designing healthy, attractive, and cost-effective water efficient landscapes. Implementation of the two ordinances has begun. These standards may result in an incremental increase in development cost, but are offset by water and energy savings throughout the life of the home.

Transfer of Development Credit Program

For each new single-family residential parcel which is proposed to be created, an applicant must acquire one transfer of development credit (TDC). That is, the applicant must demonstrate that the development potential on the equivalent of one developable parcel has been extinguished. This is normally done by recording an offer to dedicate an open space easement over the subject property. The open space easement prohibits construction of a residence and most other types of development.

As implemented by the California Coastal Commission (CCC), the TDC Program in Malibu (LIP Chapter 7) is mandatory for applicants who propose to intensify land use through subdivisions or construction of condominiums or rental housing projects (except for qualifying affordable housing developments, which are exempt from TDC requirements). Any property owner may choose not to participate in the program by simply applying for a coastal development permit for no more than one residential unit on each existing residential parcel.

The CCC has recognized several ways to "generate" a TDC (that is, to assemble the equivalent of one developable parcel which can then be restricted to open space). For instance, in a small-lot subdivision, a credit will be considered "generated" according to a formula which measures the "buildability" of the site. To qualify property as a TDC generator, site-specific soil studies, percolation tests, and the like are not typically performed, due to the often considerable expense which such tests involve. Instead, the formula is based on the criteria of slope, road access, and water service, which can be measured without undue expense to the property owner.

The number of small lots required to equal one TDC depends on the application of the formula to the lots in question: the more gentle the slope, the greater the credit value of the lots, since a more generous dwelling could be constructed. For example, one or more lots capable of supporting a small-to-medium sized dwelling (one with 1,500 square feet of floor space) are determined to generate one TDC.

Where small lots are less suited to development, TDCs may be generated based on their size rather than slope. Thus, the second way of generating a TDC would be based on 500 square feet of "credit" for each lot which has at least 4,000 square feet of area; three such lots, generating 1,500 square feet of credit, are considered to generate one TDC.

A third way to generate TDCs, for lots smaller than 4,000 square feet, is to assign a value of one TDC for any combination of lots adding up to a total of one acre. The assumption here is that an acre of land, even if steep, can probably accommodate at least a small dwelling. Of course, if the property were determined to be completely unbuildable, no TDCs would be generated, since the whole point of the program is to avoid development which could otherwise occur.

However TDCs are generated, the mechanism by which development potential is extinguished is recordation of an offer to dedicate an open space easement. In general, the open space easement allows no development as defined by the Coastal Act, except for removal of vegetation that constitutes a fire hazard, installation of underground utility lines or septic systems, passive public recreational use, directional or no-trespassing signs, and fences which are necessary to protect natural resources and/or private property. Residential use, as a primary use, is not allowed, although some easements allow uses associated with a residence, such as corrals or decks. Such ancillary uses are appropriate where the underlying fee interest in the land is under the ownership of an adjacent home owner who can assume the necessary responsibility for property taxes and weed abatement. In other instances, where other public land holdings are adjacent or nearby, fee ownership of the land is turned over to a public agency, such as the California Department of Parks and Recreation.

Existing regulations generally limit development in the MF and MFBF zones to one unit per existing parcel unless development credits are obtained. The developer of the recipient site must purchase development credits on a unit-for-unit basis to attain the maximum density allowed in the MF and MFBF zones. LCP regulations specifically exempt low-income units from the requirement to purchase TDCs; therefore, this policy does not represent a constraint to the development of affordable housing.

[1]

AB 2348 (Mullin) [Stats. 2004, ch. 724]

[2]

Memo of June 9, 2005 from California Department of Housing and Community Development on AB 2348 of 2004. Also available at http://www.hcd.ca.gov/hpd/hrc/plan/he/ab2348stat04ch724.pdf.

[3]

California Health & Safety Code § 1502

[4]

California Health & Safety Code § 1566.3(c).

[5]

California Health & Safety Code §§ 17021.5 and 17021.6

[6]

Senate Bill 2 (Cedillo) [Stats. 2007, ch. 633 Sections 1—3]

[7]

California Government Code §§ 65915—65918

(b) Development Processing Procedures

Residential Permit Processing/Coastal Development Permits

State planning and zoning laws provide permit processing requirements for residential development. Within the framework of state requirements, the City has structured its development review process in order to minimize the time required to obtain permits, and ensure that projects receive careful review.

All residential development is reviewed by City staff for LCP/M.M.C. and Building Code compliance prior to the issuance of building permits. These reviews are conducted concurrently with the planning review process, which therefore shortens the overall processing time for projects:

City Biologist/Environmental Review Board: Biological review is required if a project is near an environmentally sensitive habitat area (ESHA) or includes landscaping. The City Biologist reviews all new residential projects to determine whether or not they should be reviewed by the Environmental Review Board (ERB). The City Biologist's review process typically takes three weeks. If the City Biologist determines that ERB review is required, then the process typically extends another two months. Additionally, the review process may be extended if the application includes the installation of 2,500 square feet of landscaping, as the project must be reviewed for conformance with the M.M.C. Landscape Water Conservation Ordinance.

City Coastal Engineer: The City Coastal Engineer reviews projects that are located along the coast and can be potentially affected by tidal forces. Although the requirement that the application include a wave uprush report can extend the permit process, and thereby raise the cost of residential development, these reports are necessary to ensure public safety in Malibu. On average, the City Coastal Engineer will respond within one month of receiving submitted materials. The entire review process varies greatly depending upon the complexity of the project and the promptness of the applicant's consultant.

City Environmental Health Administrator: The City Environmental Health Administrator reviews the adequacy of onsite wastewater treatment systems (OWTS) for all those properties in the City that are not served by a package wastewater treatment plant. Review by the City Environmental Health Administrator is necessary because the City has no public sewer system and approximately 84% of the dwelling units in the City have no access to a local/neighborhood sewer system. The entire review process varies greatly depending upon the complexity of the project and the promptness of the applicant's consultant.

City Geologist and City Geotechnical Engineer: Due to complex geologic and geotechnical conditions in the City, development is subject to review by the City Geologist and/or City Geotechnical Engineer. Although the requirement that the applicant submit geological and geotechnical reports can extend the permit process, and thereby raise the cost of residential development, these reports are necessary to ensure public safety in Malibu. On average, the City Geologist and/or City Geotechnical Engineer will respond within one month of receiving submitted materials. The entire review process varies greatly depending upon the complexity of the project and the promptness of the applicant's geotechnical consultant.

City Public Works Department: The City's Public Works Department is responsible for reviewing projects that include grading, drainage, demolition and right-of-way improvements. On average, comments will be provided by the Public Works Department within one month of submittal. The entire review process varies greatly depending upon the complexity of the project and the promptness of the applicant's geotechnical consultant.

Additional reviews: Although additional reviews may not be required for all applications, reviews by the City Engineer, Los Angeles County Fire Department, Los Angeles County Waterworks District No. 29 ("District 29"), California Department of Fish and Game, California State Lands Commission, and California Department of Transportation may be required so that appropriate conditions can be placed on projects. The amount of time required for review varies depending on the complexity of the project.

All residential projects require either an Over-the-Counter (OC) permit, Administrative Plan Review (APR) or a Coastal Development Permit (CDP). OC permits are issued for such projects as free-standing garden walls, on-grade patio slabs, interior remodels and other smaller residential improvements. APR permits include projects that are exempt from requiring a CDP. A list of exemptions from a CDP are provided in LIP Section 13.4 and include improvements to single-family residences, such as the addition of garages, swimming pools, fences, storage sheds, certain types of landscaping, and a minimal amount of grading. Typically, projects located on beachfront properties do not qualify for an APR permit. A CDP is required for projects that are not exempt and ensures that development within the Coastal Zone (the entire City of Malibu) is consistent with the LCP, the California Coastal Act, and California Code of Regulations Title 14 Division 5.5. Other discretionary requests, such as a site plan review, minor modification, conditional use permit, string-line modification, or variance, are processed concurrently with an APR or a CDP.

Permit Processing Times

Processing times vary and depend on the size, complexity, and location of the project. APR projects are reviewed and approved by the Planning Director. CDPs are separated into two types - Administrative CDP (ACDP) and full CDP. Administrative CDPs are reviewed and approved by the Planning Director and reported to Planning Commission. A regular CDP requires a public hearing and is approved by the Planning Commission. Some discretionary requests, such as conditional use permits and variances, require a public hearing before the Planning Commission. Projects that involve ESHA must also be reviewed by the City's ERB prior to a decision by the Planning Director or Planning Commission. This process typically adds from one to two months to the permit process. The City does not require architectural review; however, a visual impact analysis requiring the installation of story poles on-site is required for all projects that are visible from a scenic area or include a discretionary request unless waived by the Planning Manager.

Tentative parcel maps and tentative tract maps require approximately six to eight months to process and both are processed concurrently with a CDP. However, review time depends greatly on the promptness of the applicant. Projects reviewed by the Planning Commission and the City Council, such as amendments to the General Plan, LCP and M.M.C., typically add, at a minimum, six months to the process.

Certain steps of the development process are required by state laws rather than local laws. The state has defined processing deadlines to limit the amount of time needed for review of required reports and projects. In an effort to provide an efficient permit processing system, the City has implemented the following time and cost saving developmental processes:

While the City has adopted procedures to minimize the review time for development applications, such as concurrent processing of all related applications, the additional complexity of state Coastal Commission involvement and sensitive environmental conditions on nearly every site results in more lengthy processing times than is often the case in non-coastal areas. While lengthy review procedures can present a constraint to housing development and affordability, the City has few options for expediting permits that have not already been implemented. Table 7-27 summarizes the review process and associated timelines for the permitting of single-family and multi-family projects.

Table 7-27 Permit Processing Steps

Environmental Review

Environmental review is required for all development projects under the California Environmental Quality Act8. An Environmental Impact Report (EIR) is required for all developments that have the potential of creating significant impacts that cannot be mitigated. Typically, residential projects in the City are either Categorically Exempt or require an Initial Study and Negative Declaration or Mitigated Negative Declaration under CEQA. The Negative Declaration process typically takes six to eight weeks to prepare, plus the mandated public review period. Categorically Exempt developments, such as second residential units, require a minimal amount of time. As a result, state-mandated environmental review does not pose a significant constraint to housing development.

[8]

California Public Resources Code Section 21000, et seq.

(c) Development Fees and Improvement Requirements

State law limits the amount of fees charged for development permit processing to the reasonable cost of providing the service for which the fee is charged. Various fees and assessments are charged by the City and other public agencies in order to cover the costs of processing permit applications and providing services and facilities such as schools, parks and infrastructure. Almost all of these fees are assessed through a pro rata share system, based on the magnitude of the project's impact or on the extent of the benefit that will be derived.

Table 7-28 provides a list of fees the City charges for new, standard residential development. Table 7-29 and Table 7-30 provide a summary of fees charged for a typical single-family and multi-family project. The rates charged by the City are inclusive and based on standardized unit sizes. Because of environmental and infrastructure constraints, residential development consists primarily of infill projects that do not involve LCP, M.M.C. or General Plan amendments. Development fees will vary from project to project but are currently estimated to be approximately $29,000 per unit for single-family units and $14,000 per unit for multi-family units.

Table 7-28 Planning and Development Fees

Table 7-29 Planning and Development Fee Example Single-Family Development

Source: City of Malibu Planning Dept., 2013.

Table 7-30 Planning and Development Fee Example Multi-Family Development

Source: City of Malibu Planning Dept., 2013.

The City annually evaluates the actual cost of processing the development permits when revising its fee schedule.

After the passage of Proposition 13 and its limitation on local governments' property tax revenues, cities and counties have faced increasing difficulty in providing public services and facilities to serve their residents. One of the main consequences of Proposition 13 has been the shift in funding of new infrastructure from general tax revenues to development impact fees and improvement requirements on land developers. The City requires developers to provide onsite and off-site improvements necessary to serve their projects. Such improvements may include water and other utility extensions, street construction and traffic control device installation that are reasonably related to the project. Dedication of land or in-lieu fees may also be required of a project for improvements to the right-of-way, transit facilities, recreational facilities and school sites, consistent with the Subdivision Map Act[9].

The City requires the payment of three impact fees prior to the issuance of building permits: the Los Angeles County Fire Department Developer Fee, the Santa Monica - Malibu Unified School District (SMMUSD) Developer Fee, and the Quimby Act/Parkland Development Fee. The Fire Department Developer Fee was initiated by the Los Angeles County Fire Department and is the same fee charged by most of the cities and in the unincorporated areas of the County surrounding the City of Malibu. The fee is necessary to assure adequate fire equipment and services are available as Malibu is designated as a Very High Fire Hazard Severity Zone. The fee is $0.9276 per square foot of new construction. The School District Developer Fee was initiated by the SMMUSD and is used to fund school improvements in the district. The fee is $2.63 per habitable square foot of new residential (both single-family and multi-family) construction. The Quimby Act/Parkland Development Fees are designed to ensure that new development meets local park space obligations. The Quimby Act fee is applied to new subdivisions while the Parkland Development Fee applies to new construction other than subdivisions. The Parkland Development Fees are $3,425 per single-family unit, $2,714 per unit in a multi-family project containing less than five dwelling units per building, and $2,178 per unit in a multi-family project containing five or more units per building. These fees are typical of other cities in environmentally constrained areas and are not considered to be a constraint to development.

Development and growth in the City are limited by geologic and environmental constraints, steep slopes, and dependence on private OWTS for wastewater management. Public works facilities that exist in the City include roads and highways, public water and telephone utilities, and all publicly financed recreational facilities. Major capital improvement projects completed by the Department of Public Works in Malibu consist of road repairs, maintenance, and improvements.

The majority of new housing development that has occurred in the City during the previous housing cycle has been single-family homes on infill sites, including large rural estate parcels. These projects typically do not require off-site improvements but are dependent on public roads that must be maintained by the City. The City's roads are vulnerable to damage by winter storms, and considerable expense is required to keep the roads open. Local streets are defined in the General Plan Circulation Element as two-lane, undivided roadways with frequent driveway access and 48-to 58-foot rights-of-way, although many of the City's canyon access roads have narrower rights-of-way. To maintain the rural character of its residential areas, the General Plan discourages the use of curbs and sidewalks. Malibu's standards for local streets are modest when compared to more urbanized cities in Los Angeles County and do not act as a constraint to development.

The City's Capital Improvement Program (CIP) contains a schedule of public improvements including streets, stormwater and wastewater treatment facilities, parks, and other public works projects to facilitate the continued build-out forecast in the City's General Plan. The CIP helps to ensure that construction of public improvements is coordinated with private development.

Although development fees and improvement requirements increase the cost of housing, cities have little choice in establishing such requirements due to the limitations on property taxes and other revenue sources needed to fund public services and improvements.

[9]

California Government Code §§ 66410 – 66499

(Resolution Nos. 14-04, 1/13/14; 13-34, 8/26/13)

(a) Environmental Constraints

Malibu is located on a narrow coastal strand on the southern slope of the Santa Monica Mountains, which are characterized by steep and rugged hillsides and canyons draining into the Pacific Ocean. More than 80% of Malibu is hillside area; the remaining relatively flat land is subject to ocean and/or canyon (creek) flooding, or other significant environmental constraints. Geologic and seismic hazards include landslides, soil erosion, mudflows, and liquefaction potential. Additionally, the City is located in the Very High Fire Hazard Severity Zone, and the majority of the City has experienced major brush fires in recent decades. The City's environmental constraints are well documented in the General Plan. Since its incorporation in 1991, the City of Malibu has had six federally declared disasters and one federally declared emergency.

Although the City is characterized by a large amount of vacant land, only a small portion of that land is suitable for development due to these natural constraints. Development in steeply sloping properties would require substantial modification to the natural terrain, which would significantly add to the cost of development. Development on the steep hillsides would also add to erosion and landslide potential. Additionally, all new single-family residences and multi-family residential development in the City require a Coastal Development Permit pursuant to the development requirements of the LCP, which limit grading on steep slopes and encroachment into environmentally sensitive habitat areas (ESHA). Development is also constrained by federal and state laws (e.g., Federal Emergency Management Agency floodplain regulations, Clean Water Act, Endangered Species Act; and California Fish and Game Code and Alquist-Priolo Earthquake Fault Zoning Act).

While environmental conditions constrain development throughout the city, these factors have been considered in the analysis of potential development sites described in Appendix B, and are not expected to preclude projects from achieving the estimated level of development.

(b) Infrastructure Constraints

Infrastructure in the City is designed to serve resident needs in a manner that respects environmental constraints and retains the City's rural residential character. As discussed previously under Development Fees and Improvement Requirements, the City requires developers to provide on-site and off-site improvements necessary to serve their projects. Dedication of land or in-lieu fees may also be required of a project for rights-of-way, transit facilities, recreational facilities, and school sites, consistent with the Subdivision Map Act.

Additionally, the City's Capital Improvement Program (CIP) contains a schedule of public improvements including streets, public structures, stormwater conveyance and wastewater treatment facilities, parks and other public works projects to facilitate the continued build-out of the City's General Plan. The CIP helps to ensure that construction of public improvements is coordinated with private development. As a result of these policies, any infrastructure constraints that currently exist must be fully mitigated and financed as growth occurs. While infrastructure requirements can add to the cost of housing, these improvements are necessary to ensure public health and safety, and would not preclude the level of development that is necessary to accommodate the city's housing needs.

Wastewater

There is no municipal sewer service in the City. All properties in the City are currently served by individual onsite wastewater treatment systems (OWTS); with the exception of those properties served by five small, community-serving package wastewater treatment plants: Point Dume (serving the Point Dume Mobile Home Park), Trancas Canyon (serving Malibu West and a number of homes on Broad Beach Road and Victoria Point), Malibu Mesa (at Pepperdine University, serving the Malibu Country Estates), Tivoli Cove Condominiums, and Maison de Ville (serving three condominium complexes). The lack of a municipal sewer system constrains the amount of development that the City can accommodate; however, the underlying constraint is the steep terrain that is better suited to onsite systems than a community sewer system. Additional high-density residential development to accommodate the City's assigned regional housing need would require either the construction of a municipal wastewater treatment system or small package treatment plants to serve individual developments.

Water

Domestic water for City residents is supplied by District 29 from the Metropolitan Water District of Southern California (MWD). The MWD obtains its water from the State Water Project and the Colorado River. Wholesalers of water in the Malibu/Santa Monica Mountains areas are the Las Virgenes Municipal Water District and the West Basin Municipal Water District. These wholesalers distribute to three retailers, which include District 29, Silvas Park Mutual Water Company, and Las Virgenes Metro Water District. Many of the City's water mains and tanks have been identified by the City and by District 29 as severely undersized. However, for projects located in areas with limited to no service by District 29, property owners may install water tanks to serve the property's needs.

The Los Angeles County Fire Department (LACFD) has recently adopted new water supply requirements for the issuance of final approval. New construction projects will not receive final approval unless they can show adequate fire flow capacity. Furthermore, the Fire Department will no longer accept onsite water tanks to be used as a primary source of water for fire-fighting purposes. The problem with these new requirements is that the majority of remaining vacant properties in the City are located within the mountain canyons. These properties do not have ready access to water lines; therefore, they cannot prove adequate fire flow.

The problem has been compounded by the aging water infrastructure regulated District 29. In many of the more remote areas of the City, there is no infrastructure currently. In the past, properties in these areas have relied upon wells and/or large water storage tanks to provide water in times of fire.

Currently, the LACFD will not issue final approval without District 29 sign-off and LACFD approval. The City is in negotiations with both departments, but has not rectified the problems to date.

Storm Water Drainage

The City has numerous streams and creeks that drain the hillsides and canyons. The majority of stormwater runoff follows natural drainage courses to the ocean. The City has recently completed construction of two stormwater treatment projects to remove pollutants: Paradise Cove Storm Water Treatment Facility and the Civic Center Storm Water Treatment Facility, which is tied into Legacy Park. The LIP provides provisions to ensure development projects will not result in the increase of stormwater runoff. The City Public Works Department reviews hydrology reports for all new development to ensure compliance with stormwater runoff provisions; therefore, with these existing facilities and review procedures in place, the City's flood control system is not expected to limit development during the planning period.

(c) Land and Construction Costs

Land represents one of the most significant components of the cost of new housing. Land values fluctuate with market conditions, and steadily increased from 2000 until the current real estate recession began in 2007. Changes in land prices reflect the cyclical nature of the residential real estate market. It appears as if the market has begun to recover and real estate prices are increasing.

The natural resources, commitment to a rural character, and location of the City has made Malibu a very desirable place to live. Additionally, much of the buildable land in the City has already been developed. The high demand for housing in the City combined with a limited supply has made land prices considerably higher than in most other areas of Los Angeles County, and this trend is expected to continue in the foreseeable future.

The cost of construction is affected by the price of materials and labor, development standards, and general market conditions. The City has no influence over the cost of materials and labor, and the building codes and development standards are not substantially different than most other cities in the County. Construction costs for materials and labor in the City have increased at a slightly higher pace than the general rate of inflation, according to the Construction Industry Research Board.

(d) Cost and Availability of Financing

The recent crisis in the mortgage industry has affected the availability of real estate loans, although for those with excellent credit, mortgage interest rates are at historic lows. However, the changes in mortgage underwriting standards have had greater impacts on low-income families than other segments of the community. Programs such as 2.7 and 3.2 in the Housing Plan help to reduce financing costs for low-and moderate-income homebuyers.

Under state law, it is illegal for real estate lending institutions to discriminate against entire neighborhoods in lending practices because of the physical or economic conditions in the area ("redlining"). In monitoring new construction sales, resales of existing homes, and permits for remodeling, it would not appear that redlining is practiced in any area of the City.

(Resolution Nos. 14-04, 1/13/14; 13-34, 8/26/13)

State law prohibits discrimination in the development process or in real property transactions, and it is the City's policy to uphold the law in this regard. Program 3.1 in the Housing Plan includes a commitment to identify and contract with an appropriate organization to provide fair housing services to Malibu residents.

(Resolution Nos. 14-04, 1/13/14; 13-34, 8/26/13)