Santa Monica Reaches Settlement With Developer Of Most Of Its Builder's Remedy Projects

The city of Santa Monica struck a deal with a developer that proposed more than a dozen projects containing about 4,000 units while the city’s zoning rules fell out of compliance with state regulations.

The deal means that the developer, WS Communities, will ultimately build fewer units than it wanted and will resubmit most of the projects it proposed while the city’s rules lapsed — a period in which a provision known as the builder’s remedy came into play, Santa Monica Next reported. 

The city's deal with WSC was aimed squarely at muting the effect of the builder's remedy on the city. 

“Really, we’re doing this to help get rid of the builder’s remedy projects,” Santa Monica Council Member Caroline Torosis said, according to The Real Deal. “We heard loud and clear from the community that they were very concerned that there were over 4,000 units that were going to come to our city without any form of local control.” 

Under the builder’s remedy, the city’s rules about building height and size weren't in effect, and WS Communities proposed projects that were much larger than what city rules would usually allow. 

WSC owned 14 of the 16 projects submitted and rubber-stamped as a result of the provision. Together, WSC's 14 projects would have resulted in about 4,000 housing units, including a 15-story project with about 2,000 apartments that would have been the tallest building in the city outside of its downtown.

“I was as shocked as many of you were to see these tall buildings and the impact it would have on our programs and our schools,” Santa Monica Council Member Oscar De La Torre said during a city council meeting last week when the vote was held. “I’m glad that we’re here now, and I’m ready to vote to make this go away.” 

Under the deal, WS Communities will resubmit 10 of the 13 projects to the city, and the resubmitted projects will be subject to current rules, according to SMN. One WSC project at 1433 Euclid St. isn't subject to the settlement; WSC agreed not to resubmit three of the projects. 

While it isn't clear how many units the resubmitted projects will have, because they will have to conform to the city's rules, it will mean a reduction in the total number of units produced. 

In exchange, the city has agreed to expedite approvals for the 10 projects WSC will refile and will work closely with WSC to make sure it maximizes its density and affordable housing bonuses, as well as provide other incentives, SMN reported. 

The deal also settles outstanding legal challenges the developer and the city had filed against each other, The Real Deal reported. 

Cities’ housing elements — their plans to meet state-mandated housing goals — are supposed to be updated every eight years. The builder’s remedy came into play when Santa Monica submitted a housing plan in 2021 for the 2021-2029 cycle that the state didn't approve. A provision within the state law says that when that occurs, developers can propose projects that don’t need to comply with that city’s rules, as long as the proposed projects include some affordable housing. Santa Monica’s housing element for that cycle was approved in late 2022, allowing it to enforce its zoning laws again. 

The city of Huntington Beach is having similar issues surrounding builder’s remedy projects, the Los Angeles Times has reported.