HomeMy WebLinkAbout2026-05-12; City Council; Resolution 2026-088Exhibit 1 RESOLUTION NO. 2026-088 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AMENDMENT TO THE AFFORDABLE HOUSING REGULATORY AGREEMENT
FOR THE CHESTNUT APARTMENTS, LOCATED AT 945 CHESTNUT AVENUE
WHEREAS, on Dec. 24, 2014, the City of Carlsbad executed a loan of $2,646,000 from the city’s
Housing Trust Fund to Solutions Chestnut, LLC, a subsidiary of Solutions for Change, Inc. (collectively
Solutions for Change), to acquire Chestnut Apartments, a 16-unit apartment complex at 945 Chestnut
Ave. (Property), to provide affordable housing for homeless families; and
WHEREAS, on Dec. 24, 2024, a Regulatory Agreement and Declaration of Restrictive Covenants
was executed, and recorded in the Office of the Recorder of the County of San Diego, State of California
on December 26, 2014, as Instrument No. 2014-0570837 to restrict the use of the Property; and
WHEREAS, Solutions for Change could not fulfill the obligations identified in the 2014 loan
documents recorded against the Property and decided to turn the Property over to the City of Carlsbad
in lieu of loan repayment; and
WHEREAS, on May 21, 2024, the City Council adopted Resolution No. 2024-111, authorizing the
City Manager to execute all documents necessary to complete the City’s acquisition of the Property;
and
WHEREAS, the City provided Kingdom Development, the property operator for Solutions for
Change, Community Development Block Grant (CDBG) funds as a forgivable loan to make critically
needed repairs to the property; and
WHEREAS, the CDBG program is a federally funded program, and carries with it a five year
performance period, and
WHEREAS, an Amendment to the Regulatory Agreement and Declaration of Restrictive
Covenants is needed to align with the Property’s prevailing regulatory funding restrictions.
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 is not a “project” as defined by California Environmental Quality
Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(a) and does not require
environmental review under CEQA Guidelines Section 15060(c)(2) because the action is
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limited to amending an existing Affordable Housing Regulatory Agreement. The action
has no potential to cause either a direct physical change in the environment or a
reasonably foreseeable indirect physical change in the environment.
3.That the City Manager or designee is authorized to execute an Amendment to the
Regulatory Agreement and Declaration of Restrictive Covenants to the satisfaction of
the City Attorney.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 12th day of May, 2026, 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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