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HomeMy WebLinkAboutDI 92-05; Aviara Affordable Housing Agreement; Discussion Item (DI)- STAFF REPORT 0 t@- DATE: JANUARY 20,1993 TO: PLANNING COMMISSION FROM: PLANNING DEPARTMENT SUBJECT: DI 92-05 - AVIARA AFFORDABLE HOUSING DEVELOPMENT AGREEMENT - Consideration of an Affordable Housing Development Agreement for the Aviara Master Plan. I. RECOMMENDATION That the Planning Commission ADOFT Planning Commission Resolution No. 3488 recommending APPROVAL of the Negative Declaration issued by the Planning Director, and ADOPT Planning Commission Resolution No. 3489 recommending to the City Council APPROVAL of DI 92-05 based on the findings contained therein. II. BACKGROUND On September 1,1992, the City Council approved an agreement with the developer of the Aviara Master Plan to provide the Master Plan’s share of affordable, low-income housing in compliance with the recently-updated Housing Element. The requirements to enter into an affordable housing agreement was a condition of approval of the subdivision map for Phase 11 of the Master Plan. By entering into the agreement, the developer accepted a 15% inclusionary housing requirement although the ordinance to specifically mandate the requirement was not yet in place. The result is that a minimum of 160 units of lower income housing will be provided by the Master Plan developer. The exact location and timing of construction of the affordable units is subject to a number of variables and alternatives contained in the agreement approved by the City Council. One of the alternatives which was supported by staff and the City Council provides for the accelerated development of the minimum required 160 lower income units. Under normal inclusionary housing requirements, the affordable units could be built in increments in proportion to the number of market-rate units’being built. For example, if a developer is building 100 units, 15 units of lower income housing would be required. Under the proposed alternative, all of the minimum required 160 units for the buildout of the Master Plan would be provided upfront at one time rather than incrementally over an extended period of time. In return for utilizing this alternative, the agreement approved by the City Council indicated that the developer could request that the City approve an affordable housing development agreement which would protect the developer from future changes in affordable housing requirements. h % DI 92-05 - AvlARA AFFLLdABLE HOUSING DEVELOPMENT 4 AGREEMENT JANUARY 20,1993 PAGE 2 The developer has now indicated that he intends to go forward with the alternative of providing the upfront, accelerated development of 160 lower income units. The units could be constructed within three years under this alternative. If they were built incrementally in conjunction with market-rate units as allowed by the City's inclusionary requirements, it could take ten to fifteen years to secure that many lower income units. In return for the accelerated development and as provided for in the previous agreement approved by the City Council the developer is now requesting the City approve an affordable housing development agreement. The proposed development agreement is attached as Exhibit A. Approval of the agreement is authorized by Chapter 21.70 of the Municipal Code. One additional item of background information needs to be mentioned although it is not part of the Planning Commission's deliberations on the consideration of the affordable housing development agreement. As part of the accelerated low-income housing development proposal and as contained in the agreement previously approved by the City Council, the developer has agreed to pay $1,584,000 to satisfy the inclusionary requirement for already approved subdivision maps in Phase I of the Master Plan. The developer does have the option to provide the financial equivalent of the $1,584,000 by further restricting the 160 lower-income units (i.e, longer tenure, units with more bedrooms, larger reduction in rents). m. MOR PLANNING CONSIDmTIONS In reviewing this request for a development agreement and making a recommendation to the City Council, there are three major planning considerations which need to be addressed by the Planning Commission which are as follows: 1. Is there a significant benefit to the City in terms of meeting its affordable housing requirements and complying with its Housing Element in having the accelerated development of 160 units of low-income housing rather than having the units provided incrementally over a substantially longer period of time? 2. Is the request for a development agreement which would protect the developer from future changes in affordable housing requirements appropriate and reasonable in return for providing the Master Plan's share of affordable housing upfront, all at one time? 3. Does approval of the development agreement comply with the provisions of Chapter 21.70 of the Municipal Code? Staff believes that there is a significant benefit to the city in having 160 units of affordable, low-income housing built up front, all at one time by the Aviara Master Plan developer. The units could be constructed within three years under this arrangement. If the units - -, DI 92-05 - AVIARA AFFCIdABLE HOUSING DEVELOPMENT ,;WEMENT JANUARY 20, 1993 PAGE 3 were built incrementally in conjunction with market-rate units as will be allowed by the city's inclusionary housing ordinance, it could take ten to fifteen years to obtain that many units from this developer. The city is required by itsadopted Housing Element to make every effort to remove obstacles so that 1,400 lower income housing units can be built within the present five year cycle of the Housing Element (by 1996). Although this will probably not occur because of the absence of any substantial housing development in the city, the developer's proposal for the accelerated development of 160 low income units is a start. The proposal by this one developer represents approximately 10% of the city's five year goal. The development agreement recognizes that by providing 160 lower income units upfront, all at one time, rather than incrementally over time the City receives a significant benefit towards meeting its affordable housing obligations. In return, paragraph 4 of the agreement protects the developer from application of future changes regarding the requirements for low income housing which would affect the construction of the rest of the Master Plan. Staff believes that this is a reasonable request. It would be difficult for the developer to provide their total obligation for lower income units at this time and then have to take the risk of having new or additional requirements imposed at a later time. This development agreement is unique from other types of development agreements in that it only requests that the developer be protected from future changes having to do with providing inclusionary, low income units. Most development agreements request protection from all future changes made to City standards, policies and ordinances. This development agreement is also different from most other agreements in that it does not involve approval of a specific development project at a specific location at this time. No specific site for the 160 units has been identified yet although the previous agreement approved by the City Council identified Planning Area 19 of the Aviara Master Plan as a potential location. Approval of a subsequent site development plan will be required when a specific location is identified. For all these reasons, staff believes that the type and level of protection being requested by the developer through the development agreement is a reasonable and supportable request. Approval of this development agreement is authorized by Chapter 21.70 of Zoning Ordinance Section 21.70.080 lists the findings that must be addressed in considering a development agreement. Some of these findings do not apply since a specific location for the affordable units has not been determined and a specific development project is not being requested at this time. However, the request satisfies the applicable required findings as discussed below: 1. Approval of the development agreement is consistent with the objectives, policies, general land uses and programs specified in the General Plan. One of the major Housing Element programs of the General Plan requires that all Master Plan communities provide 15% inclusionary, low-income housing. Approval of this agreement will allow the Aviara Master Plan to comply with this program on an accelerated schedule even though the actual implementing ordinance to require inclusionary housing is not yet in place. DI 92-05 - AVIARA AFFGbdABLE HOUSING DEVELOPMENT 1”iREEMENT JANUARY 20, 1993 2. 3. 4. 5. 6. 7. 8. An actual site for the affordable, lower income units has not been identified at this time. However, when a site is identified, approval of the plan for the units will require a site development plan which will ensure that the project will be compatible with the uses authorized in and the regulations prescribed for the land use district in which the units will be located. Approval of the development agreement is in conformance with public convenience, general welfare and good land use practices as it will result in the early development of much needed affordable housing units in the city. Approval of the agreement will not adversely affect or be detrimental to the general health, safety and welfare as it will help to provide much needed affordable housing units. Specific impacts to the health, safety and welfare of surrounding property owners will be determined when a site-specific location for the affordable units is identified and a site development plan is processed. Because a specific development project for the affordable units is not being requested or processed at this time, the findings regarding the orderly development of property and preservation of property values is not applicable. Staff has reviewed the state law regarding development agreements and the proposed agreement is consistent with the provisions of State Government Code Sections 65864-65869.5. Approval of the development agreement in no way affects the location, timing or provision for public facilities as required by the Aviara Master Plan, Local Facilities Management Plan (Zone 19) and the city‘s Growth Management Plan and is therefore consistent with the Land Use and Public Facilities Elements of the General Plan. Since a site development plan is not being requested or processed at this time, the findings of consistency with other provisions of Title 20 of the Municipal Code is not applicable. In addition to the findings required by Chapter 21.70 of the Zoning Ordinance, Section 21.70.050 required the development agreement to be reviewed by the Housing and Redevelopment Advisory Committee and by the City Attorney. The Housing and Redevelopment Advisory Committee reviewed and considered the agreement at its meeting of October 26, 1992 and unanimously recommended that it be approved by the Planning Commission and City Council. The City Attorney’s Office has reviewed the agreement and has submitted its required report which is attached as attachment #4. The report states that the agreement has been approved as to form and is in compliance with state law and city ordinances. DI 92-05 - AVIARA AFFhJ3ABLE HOUSING DEVELOPMENT LGREEMENT JANUARY 20,1993 PAGE 5 V. SUMMARY In summary, staff believes that the alternative of the developer to provide 160 units of inclusionary housing at one time on an accelerated schedule is a benefit to the city in terms of providing affordable housing. The request for an affordable housing development agreement is appropriate and reasonable in return for the benefit the city derives. And finally, the agreement complies with all provisions of Chapter 21.70 of the Municipal Code. Staff, therefore, recommends that the Planning Commission support the agreement and recommend to the City Council that it be approved. The Planning Director has determined that approval of this development agreement will not have a significant impact on the environment and therefore issued a Negative Declaration on November 25,1992. The environmental analysis concluded that since: (1) this development agreement is not associated with any specific development project, (2) will not directly result in any significant physical, biological, or human environmental impacts, and that, (3) any future development projects processed under the provisions of the agreement shall be required to undergo detailed environmental review, no project-specific impacts are anticipated. There were no letters of comment received during the public review period of the Negative Declaration. ATTACHMENTS 1. Planning Commission Resolution No. 34.88 2. Planning Commission Resolution No. 3489 3. Report to Planning Commission from City Attorney dated October 26,1992. 4. Minutes from Housing and Redevelopment Advisory Committee meeting, October 26,1992 December 30,1992 MJH:arb:km -. I October 26, 1992 b TO : Planning Commission FROM: city Attorney FAX NO, 6194348367 - P, 03 REPORT AND RECOMMENDATION ON THE AFFORDABLE HOUSING DEVELOPMENT AGREEMENT BETNEEN AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP AND THE CITY OF CARLSBAD Carlsbad Municipal Code Section 21.70.070 requires the Planning Commission to prepare a report and recommendation to the City - Council on all applications for development agreements for persons of low and moderate income which implement the Housing Element of the Carlsbad General Plan. Carlsbad Municipal Code Section - 21.70.050 (c) directs the City Attorney to prepare a report on proposed development agreements for the Planning Commission. The development agreement 'under consideration is authorized by Government Code Section 65864 et seq. The intent of the legislature when it authorized the signing of development agreements was to reduce the economic costs of development. A development agreement allows the parties to agree that certain rules, regulations and official policies in' force at the time of the execution of the agreement will not be changed for the project for the duration of the agreement. The development agreement proposed with Aviara has been restricted in its subject matter to apply only to initiatives, ordinances or ' other actions taken by' the City after September 1, 1992 (the date the Aviara Inclusionary Housing Agreement was approved) relating to low-income or very-low-income housing which would effect the rate, timing or sequence of the development of the Aviara project, The agreement does not effect the applicability of future initiatives, ordinances or policies which are not related to low-income or very- low-income housing and the rate, timing or sequence of development. This agreement will be binding on all successors in interest to the project. The agreement expires after ten years, but extensions are permissible. The agreement is approved as to form. Whether or not to accept the agreement is a discretionary decision. If you have any questions about the legal implications involved, please let me know. f"\ RONALD R. BALL City Attorney rmh MINUTES DRAFT MEETING OF: HOUSING AND REDEVELOPMENT ADVISORY COMMITTEE MEETING DATE: OCTOBER 26, 1992 MEETING TIME: 4:OO P.M. MEETING PLACE: CITY COUNCIL CHAMBERS 1200 CARLSBAD VILLAGE DRIVE CALL TO ORDER: Meeting called to order at 4:05 p.m. ROLL CALL : MEMBERS PRESENT: Chairperson Belynn Gonzalez, Members, Tom Betz, Walt Ritche, Sarah Marquez, Keith Meloy MEMBERS ABSENT: Witt Rowlett, Jim McNeil, Cheri Sato and Jeannine Resha STAFF PRESENT: Evan Becker, Housing and Redevelopment Director; Michael Holzmiller, Planning Director; Clint Phillips, Senior Management Analyst; Karen Sauer, Management Analyst i I PUBLIC COMMENT: Chairperson Belynn Gonzalez asked if anyone from the audience wished to speak. Since no one wished to address the committee public comment section closed. NEW BUSINESS: 1. AVIARA AFFORDABLE HOUSING DEVELOPMENT AGREEMENT Housing and Redevelopment Director Evan Becker and Planning Director Michael Holzmiller presented a staff report to the Committee summarizing the Aviara Affordable Housing Development Agreement previously approved by the City Council. Mr. Becker pointed out to the Committee that this Agreement provides for the construction of the required 15% inclusionary affordable units (minimum of 160 units) upfront. The Committee inquired as to whether the developer must build the affordable units within the Aviara Master Plan project area. Mr. Becker stated that while the affordable units may be built outside the Aviara Master Plan area, the developer will not be allowed to build them outside of the quadrant in which this development falls. Upon proper motion and second, the Committee unanimously approved the staff recommendation to support the Aviara Affordable Housing Development Agreement and recommended to the Planning Commission that it be approved. After proper motion, meeting was adjourned at 4:40 p.m. Respectfully Submitted, r Director BIB1 LEAK Secretary 11 Minutes Clerk : a1