HomeMy WebLinkAbout2025-11-18; City Council; Resolution 2025-250Exhibit 1
RESOLUTION NO. 2025-250
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A TWO-YEAR EXTENSION OF THE LOAN
COMMITMENT PERIOD AND A REQUEST FOR AN INCREASE OF $500,000 IN
THE LOAN AMOUNT FOR A TOTAL LOAN AMOUNT OF $2,000,000 FROM THE
HOUSING TRUST FUND FOR THE WEST OAKS AFFORDABLE APARTMENTS
WHEREAS, Integral Communities 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
on May 4, 2021; and
WHEREAS, Chelsea Investment Corporation has partnered with Integral Communities to build
the West Oaks affordable apartments; and
WHEREAS, on Dec. 7, 2021, the City Council approved Reso. No. 2021-267 approving a
$1,500,000 loan commitment 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 Reso. No. 2023-272 approving a two-year
extension of the loan commitment due to project delays because of challenges associated with
construction the project’s sewer connection; and
WHEREAS, Chelsea Investment Corporation requested the City of Carlsbad extend the loan
commitment for an additional two-year period due to challenges outside of the developer’s control
associated with constructing 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, for a total loan amount of $2,000,000, due to
increases in construction and financing costs since the Housing Trust Fund loan was initially approved
in 2021; 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
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WHEREAS, the request for financial assistance was submitted to the City of Carlsbad’s Housing
Commission for review and consideration at their public meeting on Oct. 9, 2025, on which date the
Housing Commission approved Reso. No. 2025-009 recommending that the City Council approve the
additional financial assistance requested in the amount of $500,000 from the Housing Trust Fund.
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.
2. The proposed action to increase financial assistance to this project is not a “project” as
defined by CEQA Section 21065 and CEQA Guidelines 15378(b)(4) and does not require
environmental review under CEQA Guidelines Section 15060(c)(3) because the creation
of funding mechanisms is a government fiscal activity which may not result in a
potentially significant impact on the environment. Additionally, the housing project for
which this funding is intended have already been reviewed in accordance with CEQA and
CEQA Guidelines and the City Council approved and adopted a Mitigated Negative
Declaration, Mitigation Monitoring and Reporting Program and Addendum on May 4,
2021.
3. That the request for a loan commitment extension and additional financial assistance
from the Housing Trust Fund to the West Oaks Affordable Housing project is 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.
4. That the findings adopted in City Council Resolutions 2021-267 and 2023-272, including
securing the loan commitment, are extended for an additional 24-month period from
the current expiration date of Dec. 7, 2025.
5. That the City Council authorizes the Deputy City Manager, Administrative Services, to
assign and appropriate an additional amount of $500,000 from the Housing Trust Fund
to provide a total loan amount of $2,000,000 to Chelsea Investment Corporation, or
another related business entity, for the West Oaks affordable housing project once all
project funding is secured by the developer.
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6.That the City Council authorizes the Deputy City Manager, Administrative Services, to
prepare and execute all documents related to the city loan, subject to review and
approval by the City Attorney.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 18th day of November, 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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