HomeMy WebLinkAbout2011-05-24; City Council; Resolution 2011-1081 CITY COUNCIL RESOLUTION NO. 2011-108
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, TO APPROVE THE DESIGNATION OF THE CASSIA HEIGHTS
3 AFFORDABLE APARTMENTS AS A COMBINED PROJECT UNDER THE CITY OF
CARLSBAD'S EXCLUSIONARY HOUSING ORDINANCE, AND AUTHORIZE THE
4 SALE OF HOUSING CREDITS WITHIN THE PROJECT TO OTHER HOUSING
DEVELOPERS WITH PROJECTS WITHIN THE SOUTHWEST OR SOUTHEAST
5 QUADRANTS OF THE CITY, SUBJECT TO FINAL APPROVAL BY THE CITY
COUNCIL.
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7 WHEREAS, in 1993, the City of Carlsbad adopted an Inclusionary Housing Ordinance,
8 Chapter 21.85 of the Carlsbad Municipal Code, which requires all housing developers to provide
9 at least 15% of the housing units they construct to be affordable to lower income households; and,
10 WHEREAS, pursuant to Chapter 21.85.080 of the Carlsbad Municipal Code, the City
11 has sole discretion to authorize a residential site to be designated as a combined inclusionary
12 housing project; and,
13 WHEREAS, the City Council also has sole discretion as to which housing developments
14 may satisfy their inclusionary housing obligations by financially participating in an off-site
15 combined project; and
16 WHEREAS, the City of Carlsbad has previously partnered with Affirmed Housing
17 Group to construct a total of fifty-six (56) apartment units affordable to low and very low income
18 households on property owned by the Agency and located at 2029 Cassia Way, at the corner of
19 Cassia and El Camino Real and on the border of the Southeast and Southwest Quadrants of the
20 City of Carlsbad; and
21 WHEREAS, said units are excess units in that they were not be provided to meet the
22 inclusionary requirement of a specific master housing development or other subdivision but may
23 be used to do so if approved by the City Council; and
24 WHEREAS, the City Council has previously expressed a desire to sell the excess
25 housing credits produced by said project, Cassia Heights Apartments, at 2029 Cassia Way to
26 housing developers with a small inclusionary housing requirement for developments located
27 within the Southwest and/or Southeast Quadrants of the City; and
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1 WHEREAS, the City Council has an interest in providing a second combined project
2 within the Southeast/Southwest Quadrant to assist small housing developers in their effort to
3 satisfy their inclusionary housing requirements due to the fact that the first combined project,
4 known as Villa Loma, has sold or reserved all of the 184 affordable housing credits it had
5 available for purchase.
6 NOW, THEREFORE , BE IT HEREBY RESOLVED by the City Council of the City
7 of Carlsbad, California, as follows:
8 1. The above recitations are true and correct.
2. The City Council hereby designates the fifty-six (56) unit Cassia Heights
Affordable Rental development which has been previously constructed in
partnership with the City of Carlsbad on property located at 2029 Cassia Way as a
combined housing project pursuant to Carlsbad Municipal Code 21.85.080.
3. The City Council hereby authorizes the sale of fifty-six (56) affordable housing
credits within the project to one or more small housing developers to assist them
in their effort to satisfy their inclusionary housing obligations, subject to final
financial participation approval by the City Council.
14 4. The City Council reserves its sole discretion to decide which private housing
, ^ developments within the Southeast or Southwest Quadrants will be permitted to
satisfy their inclusionary housing obligations by financially participating in an off-
,, site combined housing project.
17 5. The City Council hereby sets the housing credit purchase price for said combined
project at $55,900. This housing credit purchase price has been calculated based
on the subsidy provided per unit by the City of Carlsbad in 2007 ($49,700/unit)
for property acquisition and construction, plus interest accrued over the past four
19 (4) years calculated at three (3) percent per year. This fee shall be increased by the
consumer price index (CPI) per year until such time as all of the credits have
20 been purchased by approved developers or builders, unless the City Council
approves an alternate interest rate through separate action.
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6. The Housing Credit Purchase Price is not a development impact fee. Therefore, it
22 is not subject to the requirements of California Government Code Sections 66001
and/or 66006.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 24th day of May , 2011, by the following vote to wit:
AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard.
NOES: None.
ABSENT: None.
LORRAINE M. WOOD, CityClerk
(SEAL)