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HomeMy WebLinkAbout1992-10-28; Planning Commission; ; ZCA 91-06 - CITY OF CARLSBAD INCLUSIONARY ORDINANCEOCTOBER 28,1992 TO: PLANNING COMMISSION FROM: PLANNING DEPARTMENT SUBJECI? ZCA 9146 CITY OF CARISBAD - IIWLUSIONARY ORDIIWIUCB On August 19, 1992, ZCA 91-06 was heard before the Planning Commission. After the staff presentation and public testimony was completed, the Planning Commission voted (S- 2 Hall, Schramm) to continue the item to September 16, 1992. This item was subsequently continued to October 28, 1992. In response to requests (written and verbal) from representatives of the development community, the Planning Commission directed staff to set up meetings with the development community, over the course of this continuation period, for purposes of discussing and hopefully resolving any issues of concern associated with the draft Inclusionary Ordinance. Consistent with this direction, staff has met individually with those representatives of the development community who either provided public testimony or submitted a letter regarding the draft Inclusionary Ordinance. As a consequence of these meetings, staff is recommending several major revisions to the draft Inclusionary Ordinance. Because many of the proposed revisions are substantive, specific sections of the original staff report are obsolete. The proposed major revisions include the following: 1. Amending the methodology for calculating the number of required inclusionary units. The Ordinance has been revised to specify that, if in the course of project review, the City determines that the maximum (base) residential yield is not achievable because of environmental constraints, or regulatory considerations (development standards, or design guidelines), then the number of required inclusionary units shall be adjusted to the number of dwelling units actually approved. 2. Allowing any residential project, which establishes individual residential lots or dwelling units, and is either approved or deemed a complete application before the effective date of the Inclusionary Ordinance, to satisfy inclusionary requirements through the payment of Inclusionary Housing Impact Fees (See Attachment “C”). 3. Amending Section 21.85.040 Construction of Required Inclusionary Units, to allow developers with a requirement to ,produce a fraction of an ZCA 91-06 - CITY OF CARLSBAD/INCLUSIONARY ORDINANCE OCTOBER 28,1992 inclusionary unit to either: build the complete inclusionary unit or pay to the City an amount of money equal to the fraction of the unit times the average subsidy needed to make affordable to a low-income household one newly constructed typical attached unit. This proposed revision was recommended by the Planning Commission. 4. Amending Section 21.85.160 Incentives to of&et the cost of tiordable housing, to state, that the City may make available to the development community incentives or financial assistance to enable the development of affordable housing, provided that resources are available and are approved for such use by the City Council. 5. Revising the term and defmition of an “assisted unit” to more clearly explain what constitutes assistance. The previous definition of an “assisted unit” would require that the rental rate or sales price for any low-income inclusionary dwelling unit receiving assistance from the City or other public body, be set at 60% and 70% of the area median income respectively. The rental rate or sales price for an unassisted, low-income inclusionary unit would be set at 80°h of the area median income. The term, “assisted tit” has been eliminated and replaced by the term, “assisted unit (State or Federal)“. The new definition includes any dwelling unit which receives any State or Federal assistance, as specified within Section 50055 of the California Health and Safety Code (See Attachment “A”). In addition to this proposed definition revision, Section 21.85.060 Incentives to Off& the Cost of Affordable Housing Development, has been revised to specify that if the City provides incentives or financial assistance in the form of density increases, subsidized fees, direct financial aid, or development standards modifications, to a developer to enable the production of required affordable housing, then the City reserves the right to negotiate the rental rates or sales prices for such units, at rates which would be affordable to households with incomes which are below the upper end of each income class (i.e.; below SOO/b, 80% and 120% of the area median income for very low, low, and moderate income classes respectively). This revision is recommended in view of the fact that, while a low-income unit is technically affordable at 80% of the area median income, it would not be affordable to other families in that income class whose income is below 80% of the area median income. 6. Allowing inclusionary for-sale units to be rented to a qualified household if a qualified household cannot be found to purchase the unit, or the City does ZCA 91-06 - CITY OF CARLSBAD/INCLUSIONARY ORDINANCE OCTOBER 28,1992 not exercise its option to purchase the unit within 90 days of the notification of availability of the unit. During the continuation period, comments were also received regarding: 1) the City’s justification for recommending that the mandatory inclusionary requirement be set at 15%; and 2) whether this inclusionary requirement bears a reasonable relationship to the need created by new residential development. The justification for recommending a 15% mandatory inclusionary requirement is discussed in Attachment “D”. There also exists a reasonable relationship between the need for affordable housing and the imposition of a 15% lower-income and 5% moderate-income inclusionary requirement on market rate residential development. Specifically, new market rate residential development creates a need for affordable lower and moderate-income housing by: 1) reducing the supply of available residential land upon which affordable housing could have been developed, and 2) increasing population, which creates a demand for typical community services (stores, dry cleaners, gas stations) which are staffed by lower-wage employees, who create a demand for affordable housing. It is also important to understand that SANDAG’s Regional Housing Needs Statement identifies that the minimum number of lower and moderate-income dwelling tits to be constructed in Carlsbad between 1991 and 1996, is 2,509 and 1,317 units, respectively. As discussed above, new market rate residential development will create a significant portion of this need for affordable housing. However the recommended 15% lower-income and 5% moderate-income inclusionary requirement which would create 1,050 lower-income and 200 moderate-income units, represents considerably less than the above-mentioned state mandated affordable housing needs for the City over the next five (5) years. In summary, there does exist a reasonable relationship between the need for affordable housing and the imposition of a 15% lower-income and 5% moderate-income inclusionary requirement market rate residential development. Other revisions, recommended by the City’s new Director of Housing and Redevelopment, have also been incorporated into the revised text. In order to clearly identify the proposed Ordinance changes for the Planning Commission, the revised draft Ordinance is in a strike-out/highlight format. Text to be deleted is in strike-out type; new text is in highlighted type. Those proposed Ordinance revisions which were included in two separate memos (dated August 19, 1992) to the Planning Commission, from the Planning Director and Planning Department have also been included ZCA91-06 - CITYOF CARLSBAD/INCLUSIONARYORDINANCE OCTOBER28,1992 within this revised draft. Prior to taking the draft Ordinance to the City Council it will be cleaned up to remove the strike-out/highlight format. Responses to letters concerning the draft Inclusionary Ordinance are included as Attachment "B". ATTACHMENTS 1. 2. 3. 4. ii: 7. Planning Commission Resolution No. 3424 Planning Commission Resolution No. 3425 Attachment “A”, Assisted Housing Definition Attachment “B”, Response to Letters of Comment Attachment “C”, Revised Inclusionary Housing Requirements Staff Report, dated, August 19, 1992 Attachment “D”, Memo to City Manager explaining the Background to the Inclusionary Housing Program, dated December 20, 1990. CD:Vd California Health l-’ afety Code ATTACHMENT “A” ZCA 91-6 3 50055. “Assisted housing” “Assisted housing” means housing financed by a below-market inter- est rate mortgage insured or purchased, or a loan made, by the Secretary of the United States Department of Housing and Urban Development or by the Farmers Home Administration of the United States Department of Agriculture; or a market-interest-rate mortgage insured or purchased, or a loan made in combination with, or as augmented by, a program of rent supplements or subsidies, interest subsidies, leasing, contributions or grants, or other programs as are now or hereafter authorized by federal law to serve persons and families of low or moderate income; or a mortgage dr loan made pursuant to this division; or a mortgage or loan from any private or public source with an interest, rate and terms satisfactory to the agency and which will meet the requirements and purposes of this division, Added Stats 1977 ch- 610 9 2. Prior Law: Former 5 41025, as added by Stats 1st Ex %SS 1975 ch 1 5 7. Cross References: Below-market interest: 9 50056. Financial interest: 9 50068. Market interest: 6 50080. Mortgage: $ 50082. 39 p 5 Y $ 6 c/) t- Z W > W cc 5 0 W u (3 Z v, 3 0 I t- u a Z 0 55 3 -I 0 Z -0 s 0 ii 3 .- 7 c 2 - . 2 ,‘o ‘3 a m ‘a 2 z E II L.D wij .5 2 ?ii” 00 .- n 2 DECEMBER'20, 1990 TO: CITY MANAGER FROM: Housing Task Force INCLUSIONARY BOWING PROGRAM Backaround The current housing element has a policy which requires master and specific planned communities to set aside a portion of their dwelling units to be affordable to households with rc10~6t and "very low" (defined terms) incomes. The goal of providing 567 units of lower-income housing in the 1985-1990 period, as targeted in the current housing element, fell short by almost 40%. A previous numerical objective of 150 units through an inClUSiOnary program with master and specific planned communities has not been reached due to a lack of an implementable program. The new housing element will have a lower-income fair share goal twice as large as the previous element. Housing programs such as Section 8, the use of redevelopment set-aside money and other City-initiated housing programs will, if fully implemented, achieve much less than half of the new fair share goal. The remaining units will need to come from private sector housing projects, and, in particular, from the master and specific planned communities. Allocation Process The inclusionary program will require both annual and buildout objectives as most communities will be builtout over 5 to 20 years. All master planned and specific planned communities will require a minimum 15 percent of total units developed to be affordable to lower income households. The figure of 15 percent was based on current housing projections and Carlsbad's fair share lower-income requirement as indicated by the SANDAG llRegional Housing Needs Statement 1991-199s'. The 15 percent will be assessed against all remaining units in existing planned communities and on the approved zone plans or master planned buildout numbers for those communities yet to be built. authoritv for Inclusionarv ProarUp Under State general plan law, subdivisions or discretionary entitlements may be approved only if they are found to be consistent with the general plan. Implementing tools such as zoning, specific and master plans as well as any development plans, shall be consistent with each element of the General Plan including the policies, objectives, and programs set Out in the Housing Element. CITY MANAGER December 20, 1990 Page 2 To date, most master and Specific planned communities have included only general language or provisions addressing obligations for affordable lower-income housing, but have not included specifics. It is now time to set out specific objectives and implementing mechanisms to assure the obligations are met. A permanent program will be proposed as part of the revised Housing Element, now being prepared. In the interim, staff recommends adopting a set of temporary objectives for inclusion of lower-income housing in master and specific plans. Staff has made an evaluation of the City's current housing programs and estimated, consistent with local, state and federal resources, the amount of lower-income housing that could be developed in each of the different programs over a 5 year period. These programs are included in Table 1 titled I'Housing Program Production 1990-1995." The upper portion of the table sets out five programs. The number of units that staff feels realistically could be produced under these programs would be 625 units. The lower portion of Table 1 shows a five-year goal for each master/specific planned community, based on its expected phasing over a S-year period. For master plans without entitlements this target is based on staff's best estimates or data from the Local Facilities Management Plans. The total number of lower-income units that staff recommends be required of each master plan over the total phasing and buildout is shown in Table 2. Staff's recommendation is to require 154 of all approved units (both overall and in each development phase) be affordable to low and very-low income households. An exception would be those partially completed communities, such as Calivera Hills and La Costa, which would have a requirement only on units yet to be built in those respective master plans. Should all programs meet their minimum goals, these programs for low8r-income units would produce 1,480 units. This would be enough to meet the "fair share" minimum of 1,125, but fewer than the City's estimated housing need of 2,509 lower-income units for the 1991-199s period. CITY MANAGER December 20, 1990 Page 3 An inclusionary program, requiring master planned areas to include low income housing several potential negative would also mitigate effects that may be of concern to the community. As master planned communities are being built in the predominately undeveloped quadrants of the City, an inclusionary program would evenly distribute lower-income units throughout the City. This would avoid an undue concentration of lower-income units in any one quadrant of the City. Failure to equally distribute units throughout the City would force future housing programs either to use infill areas in the northwest quadrant, or, to retrofit units into previously developed master planned areas. Developing the lower-income units at.the same time as market-rate units would assure that the lower income units are integrated both physically and architecturally within the master planned community. Lower income units that are satisfactorily integrated into a community are less likely to create problems and reduce the negative NIMBY (Not-In-My-Backyard) attitudes that otherwise might occur against these developments. Since the adoption of the current Housing Element in 1986, no implementing actions were taken to achieve a General Plan and Housing Element policy of including lower-income units in master or specific planned communities. Currently all master and specific plans need numerical objectives to be consistent with this General Plan policy. No one program is sufficient to meet the City's need. Because it is anticipated that master and specific plans will account for the vast proportion of future housing production, significant numbers of lower-income units are proposed to be assigned to master planned communitie8. To reach this numerical objective it is necessary to require that at least 15 percent of all units to be built in these conunities, be for lower-income households. It is neco88ary for these units be provided in every community to avoid the negative effects of over concentration in any one quadrant and avoid the need to try later to integrate lower- income units into these master planned communities. CITY MANAGER December 20, 1990 Page 4 If directed, staff will prepare and implement an inclusionary process that will assure that the program is effective. A resolution to implement an interim inclusionary program will assure development processing and planning will progress while including lower-income housing in master plans until such time a permanent program is given in the revised Housing Element. Attachments 1. Table 1 2. Table 2 arb c.mclwager& .- TABLE 1 PROGRAM INCLUSIONARY (OTHER) SECTION 8 SENIOR HOUSING DENSITY BONUS HOUSING DEVELOPL’ENT SUBTOTAL INCLUSIONARY ,MASTER & SPECIFIC PLANS TOTAL FAIRSHARE HOUSIN~GOAL HOUSING PROGRAM PRODUCTION 1990-l 995 Fairshan /lower income. 8096 ot Co. median LFMP ZONES UNITS c : All ALL !SUB~IVISIONS ‘ADDITIONAL / ALL 100 /VOUCHERS ! /HOUSING DEV. ALL I under SENIOR ’ Ordinances : i 75 ~~uBDIvISIONS ALL ( 50 /USING ‘DENSITY BONUS Cll? DEVELOPMENT ALL 200’ EFFORT CDBGaREDEV FUNDS 625 j MASTER PUN Afroyo La Cost8 Cot. D’Aau Carilb Ranch Cdwua t4u8 Avlua zone20 12 49 8 54 18 78 7 80 19 201 20 107 9 29 15 21 I 15 13 tiCO8t8 1 8,11,10 1 246 TOTAL I 855 1 TABLE 2 MASTER PUNNB) CO)AMUNITIES LOW INCOME ALLOCATION 1 S%moaet This Mom USBS tne Local Faclliliob Management Plan for buddout and Phasmg Prolemons (4 (8) 0 ~MASTER PLAN (0) LFh4P !TOTAL MASTER TOTAL LOW ( 5 year ;5 YEAR ! 2ofuE 1 PLANNED UNITS INCOME UNITS ATI M.P. ILow tncomet I j Artoyo la Catr 'CatoOhJr ) camllo /cahvua \ Aviora !zg$ 1 /svcamoro Sunny Cromk crook 'Lac#ta 1 I leulLoOur(l5%) 1 Phasing iGOAL(lS% 12 6 18 ifi $jY+T :: ::;' : 300 500 7s 7 1232 186 uo 66 19 -2740 411 1344 202 20 9 2192 u9 329 67 672 192 101 29 15 138 1s 88 21 13 138 68 21 13 6,11,10 2648 397 lgr3 246 ITOTAL / 13.776 1 2067 5701 ) 655 (COI. MS%) ' LFMP (COI or1541