HomeMy WebLinkAbout2026-05-14; Housing Commission; Resolution 2026-004RESOLUTION NO. 2026-004
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD,
CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL APPROVE A LOAN
TO CHESTNUT APARTMENTS, LP, FROM THE HOUSING TRUST FUND IN AN
AMOUNT NOT TO EXCEED $850,000 TOWARD DEVELOPMENT COSTS OF
CHESTNUT APARTMENTS
Exhibit 1
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, 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
seek proposals to resell the Property for the continued operation of affordable housing; and
WHEREAS, Kingdom Development, Inc. has created a limited partnership, Chestnut Apartments,
LP, that will be the legal entity to borrow the funding and acquire and operate the property; and
WHEREAS, City Council Policy No. 90 establishes the requirements and process in the use of the
city's Housing Trust Fund. In accordance with the Policy, the financing request is being presented to the
Housing Commission for potential recommendation to the City Council; and
WHEREAS, the potential use of the Housing Trust Fund for the rehabilitation of the Chestnut
Apartments is allowable and appropriate.
NOW, THEREFORE, BE IT RESOLVED by the Housing Commission of the City of Carlsbad, California,
as follows:
1. The above recitations are true and correct.
2. That based on the information provided within the Housing Commission Staff Report, the
Housing Commission adopts this resolution, recommending that the Carlsbad City Council
approve a loan from the Housing Trust Fund in an amount not to exceed $850,000 toward
the acquisition and rehabilitation of Chestnut Apartments.
PASSED, APPROVED AND ADOPTED at a meeting of the Housing Commission of the City of
Carlsbad on the 14th day of May 2026, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
ABSTAIN:
Horton, Berger, Neff-Sinclair, Ydigoras.
None.
Chang.
None.
ER S. HORTON, Chair u~
MANDY MILLS, Director