HomeMy WebLinkAbout2025-09-23; City Council; Resolution 2025-220Exhibit 2 RESOLUTION NO. 2025-220
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A FORGIVABLE LOAN IN AN AMOUNT NOT TO
EXCEED $500,000 IN COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO
MAKE IMMEDIATE REPAIRS AT THE CHESTNUT APARTMENTS AFFORDABLE
HOUSING PROJECT
WHEREAS, the primary objective of the federal Community Development Block Grant (CDBG)
Program is to develop viable urban communities through the provision of improved living
environments, expansion of economic opportunity and decent housing. Grant funds received through
the program are intended to principally serve people of low and moderate income; and
WHEREAS, the CDBG program is a fully funded federal program and is separate from the city’s
General Fund; and
WHEREAS, to be eligible for CDBG funds, the applicant jurisdiction must adopt a five-year
Consolidated Plan and an Annual Action Plan, which must be reviewed and approved by the
Department of Housing and Urban Development; and
WHEREAS, on April 29, 2025, the City Council adopted Resolution No. 2025-098, approving the
FY 2025-30 Consolidated Plan and FY 2025-26 Annual Action Plan; and
WHEREAS, the FY 2025-30 Consolidated Plan identifies the goal to increase and preserve
affordable housing as a high priority; and
WHEREAS, the FY 2025-26 Annual Action Plan identified the allocation of program income for
affordable housing activities, including acquisition and rehabilitation of affordable rental housing; and
WHEREAS, the City of Carlsbad at a Carlsbad City Council Meeting on Sept. 23, 2025, has
approved a property management agreement with Kingdom BP LLC, which is managed by Kingdom
Development, Inc. for the property located at 945 Chestnut Avenue; and
WHEREAS, the City of Carlsbad is committed to continuing to provide a suitable living
environment and to expand economic opportunities for the city's low-income residents as is outlined
in the Plan.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
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2.The proposed action of providing a loan for repairs to an existing apartment complex
(roofing, balcony repair, and water heater replacement) is categorically exempt from
environmental review under CEQA Guidelines Section 15301 because it involves the
maintenance, repair or minor alteration of existing facilities with negligible or no
expansion of the existing or former use. No exceptions to the categorical exemption as
set forth in CEQA Guidelines Section 15300.2 or Carlsbad Municipal Code Section
19.04.070(C) apply.
3.That the City Manager, or designee, is authorized to appropriate $500,000 in community
development block grant funds.
4. That the City Manager, or designee, is authorized to execute all documents necessary to
carry out a forgivable loan with Kingdom Development, Inc., Kingdom BP LLC or another
business entity that manages or is managed by either business, in an amount not to
exceed $500,000 in Community Development Block Grant funds to address immediate
repairs at the Chestnut Apartments affordable housing project in accordance with the
above terms, subject to review and approval by the City Attorney’s Office.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 23rd day of September, 2025, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
______________________________________
KEITH BLACKBURN, Mayor
______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
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