HomeMy WebLinkAbout2025-10-09; Housing Commission; Resolution 2025-009RESOLUTION NO. 2025-009
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD,
CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL APPROVE AN
ADDITIONAL LOAN REQUEST OF $500,000 FROM THE HOUSING TRUST
FUND TO CHELSEA INVESTMENT CORPORATION FOR THE WEST OAKS
AFFORDABLE APARTMENTS
Exhibit 1
WHEREAS, Integral Communities (Integral) sought the city's approval to build 192 apartments
located south of Palomar Airport Road and west of Palomar Oaks Way. The project will include 42
affordable apartments, consisting of 1, 2 and 3 bedrooms; and
WHEREAS, the City Council approved said development, including the affordable apartments
onJan.20,2021;and
WHEREAS, Chelsea Investment Corporation has partnered with Integral to build the West Oaks
affordable apartments; and
WHEREAS, on Dec. 7, 2021, the City Council approved Resolution No. 2021-267 approving a
$1,500,000 loan from the city's Housing Trust Fund to Chelsea Investment Corporation in order to
create additional public benefit by serving lower income levels and improve project competitiveness
for tax exempt bond and tax credit equity financing; and
WHEREAS, on Nov. 7, 2023, the City Council approved Resolution No. 2023-272 approving a
two-year loan extension due to project delays because of challenges associated with the project's
sewer connection; and
WHEREAS, Chelsea Investment Corporation requested the City of Carlsbad increase the city's
Housing Trust Fund $1,500,000 loan by $500,000 due to increases in construction and financing costs;
and
WHEREAS, the city's Affordable Housing Policy Team evaluated the request for additional
financial assistance on Aug. 5, 2025 and recommended that it be forwarded to the Housing Commission
for their consideration and recommendation to the City Council; and
WHEREAS, the Housing Commission considered the financial assistance request, staff
evaluation and recommendation, and the testimony of all persons desiring to be heard on the matter
at a special meeting on Oct. 9, 2025.
NOW, THEREFORE, BE IT RESOLVED by the Housing Commission of the City of Carlsbad,
California, as follows:
1. That the above recitations are true and correct.
2. That the request for additional financial assistance from Chelsea Investment
Corporation remains consistent with the goals, objectives and programs of the City of
Carlsbad's Housing Element, City Council Policy No. 90 guidelines and the city's Housing
Trust Fund underwriting practices.
3. That the request for financial assistance will assist the affordable housing developer in
constructing a total of 42 apartment units affordable to extremely low, very low, and
low-income households, plus one unrestricted manager's apartment. Specifically, the
assistance will result in deeper affordability levels by providing five (5) extremely low-
income (30% AMI), five (5) very low-income (50% AMI), twenty-eight (28) low-income
(60% AMI) and three (3) low-income (70% AMI) apartments.
4. That based on information provided in the Housing Commission staff report and
considering testimony of all persons desiring to be heard at the Oct. 9, 2025 public
meeting, the Housing Commission hereby recommends that the City Council approve
$500,000 in additional financial assistance from the Housing Trust Fund to Chelsea
Investment Corporation, subject to the following conditions:
a. The financial assistance shall be in the form of a residual receipts loan for a term of
55 years at 3% simple interest per annum. Said loan shall be secured by a promissory
note and deed of trust.
b. The financial assistance is conditional and contingent upon Chelsea Investment
Corporation receiving all other necessary funding commitments identified in the
financial assistance application including private loans, tax credit financing, master
developer contribution and deferred developer fees.
c. The city's commitment of funds will be maintained for a period of 24 months upon
City Council's approval. The funding commitment will expire at the end of this term
unless developer has secured all other necessary funding, has executed a loan
agreement with the city, and the project is ready to construct; or unless a time
extension is granted by the City Council.
PASSED, APPROVED AND ADOPTED at a Meeting of the Housing Commission of the City of
Carlsbad on the 9th day of October, 2025, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Chang, Horton, Berger, Ydigoras.
None.
Collins.
None.
CHIH-WU CHANG, Chair
1.)., -,_
(_, '--~
MANDY MILLS, Director