By Jonathan Friedman
Lookout Staff

August 11, 2010 -- The Planning Commission last week supported a measure that puts the owner of a Colorado Avenue apartment complex on Santa Monica’s east end in compliance with current affordable housing regulations and toughens enforcement of a development agreement. The recommendation will be forwarded to the City Council.

These items are part of a legal settlement between the City and BlackRock Realty Investors Inc. regarding alleged violations of a development agreement for the 300-unit Plaza at the Arboretum. The agreement approved in 1987 and amended in 1995 (the most recent City document gives these years, earlier documentation said the agreement was finalized in 1998) requires 97 units to be affordable for low- and middle-income tenants. BlackRock could not show documentation that 31 affordable units were occupied by qualified tenants in recent City audits.

As part of the legal settlement, aside from two technical exceptions, BlackRock agreed for the Aboretum to be subject to the City’s affordable housing ordinance and administrative guidelines that went into effect after the development agreement was established. BlackRock also agreed to pay for an affordable housing audit in April and to submit annual reports to the City after that.

Other features of the settlement agreement are that BlackRock must provide affordable housing training for its staff and hire permanent staff experienced in affordable housing, accept future affordable housing tenants from the City’s waiting list and pay for the relocation of unqualified tenants if the tenancy was due to Big Rock’s negligence.

Commissioner Jay Johnson said he “remained skeptical” BlackRock would comply with the rules because of its prior violations. But he was encouraged by the call for more staff oversight.

“The reason we’re here tonight is there was a lawsuit,” he said. “The city had to sue the owners who were in violation … And if [BlackStone managers] have their act together and they act in good faith, then everybody has a comfort level. The problem is sometimes that doesn’t happen. People get moved around, staffs change … we need a very positive cooperative attitude on the part of the owners.”

A representative from BlackRock assured the commission there would be a “cooperative relationship” between the company and the City.

Commissioner Ted Winterer said this was a “substantial step forward” in development agreement enforcement.

BlackRock also owns the Sea Castle Apartments property on Ocean Front Walk. Deputy City Attorney Gary Rhoades said the City is finalizing an agreement with the company regarding affordable housing deed restriction issues with this complex. That matter does not need to go before the council because it does not involve a development agreement.

It was revealed earlier this year that there has been a lack of municipal oversight on development agreement compliance. In response, City staff has promised to improve in this area, including making sure that compliance reports are submitted on a timely basis.

The City also has a pending lawsuit involving the Dorchester House, a condominium on Fourth Street near California Avenue where violations of a development agreement’s affordable housing requirements are alleged.