HomeMy WebLinkAbout2013-07-09; City Council; Resolution 2013-177Exhibit 1
1 RESOLUTION NO. 2013-177
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA APPROVING REVISIONS TO CITY
3 COUNCIL POLICY STATEMENT NO. 43 REGARDING THE
NUMBER AND ALLOCATION OF EXCESS DWELLING UNITS
4 CASE NAME: REVISION OF COUNCIL POLICY STATEMENT
NO. 43
5 CASE NO.: SS 12-04
6 The City Council of the City of Carlsbad, California, does hereby resolve as
follows:
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2j WHEREAS, as noted in the housing issues report presented at the March 20,
22 2012, City Council workshop, Carlsbad demographic and land use trends point to an increase in
22 multi-family construction, including apartments, along with a strong rental market and developer
24 interest in converting non-residential lands to high density apartment sites; and
25 WHEREAS, furthermore, the opportunity for the city to apply its inclusionary
25 requirements and realize affordable housing gains is shrinking as the majority of its residential
27 land has been developed or planned; and
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WHEREAS, the City Council has established Council Policy Statement No. 43
("Policy No. 43") on the number and allocation of excess dwelling units that become available as
a result of residential projects being approved and constructed with fewer dwelling units than
would have been allowed by the growth management control points of the Growth Management
Plan approved by voters on November 4, 1986, as Proposition E and as set forth in Carlsbad
Municipal Code Section 21.90.045; and
WHEREAS, the city is mandated by state law to provide housing for persons of
all incomes, with an emphasis on persons with lower incomes, and the city's application of its
inclusionary housing requirements is a primary and an effective means of achieving "affordable
housing," or housing with rents and sales prices affordable to such persons; and
WHEREAS, a 2009 Court of Appeal determination {Palmer/Sixth Street
Properties, L.P. v. City of Los Angeles) restricts the city's ability to apply inclusionary housing
requirements to rental projects; and
1 WHEREAS, in light of the above noted constraints and trends, revisions to Policy
2 No. 43 are appropriate to ensure the city continues to capitalize on affordable housing
3 opportunities; and
4 WHEREAS, revisions to Policy No. 43 limit excess dwelling unit allocations,
5 except in limited circumstances, to only projects that provide for affordable housing according to
6 Carlsbad Municipal Code (CMC) Chapter 21.85, the inclusionary housing requirements; and
7 WHEREAS, revisions also establish that an allocation of excess dwelling units is
8 an "incentive," as defined in CMC Section 21.86.020 A.12 and Government Code Section
9 65915(k), in that it is a regulatory concession that results in identifiable, financially sufficient, and
10 actual cost reductions by permitting more dwelling units than otherwise would be allowed by the
11 growth management control point and thereby reducing land costs per dwelling unit; and
12 WHEREAS, per CMC Section 21.85.030 A., developers of rental projects
13 receiving an incentive and agreeing by contract to limit rents for below market-rate rental units
14 are subject to inclusionary housing requirements; and
WHEREAS, the revisions to Policy No. 43 clearly establish any applicant seeking
an allocation of excess dwelling units shall agree to provide the number of inclusionary housing
units and to execute an affordable housing agreement as required by CMC Chapter 21.85.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council ofthe City
of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That Policy No. 43 is amended as shown on "Exhibit A" to this resolution.
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1 "NOTICE TO APPLICANT"
^ The time within which judicial review of this decision must be sought is governed
2 by Code of Civil Procedure, Section 1094.6, which has been made applicable in
the City of Carisbad by Carisbad Municipal Code Chapter 1.16. Any petition or
4 other paper seeking review must be filed in the appropriate court not later than
the ninetieth day following the date on which this decision becomes final;
however, if within ten days after the decision becomes final a request for the
5 record is filed with a deposit in an amount sufficient to cover the estimated cost
or preparation of such record, the time within which such petition may be filed in
7 court is extended to not later than the thirtieth day following the date on which the
record is either personally delivered or mailed to the party, or his attorney of
record, if he has one. A written request for the preparation of the record of the
9 proceedings shall be filed with the City Clerk, City of Carlsbad, 1200 Carlsbad
Village Drive, Carisbad, CA. 92008.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the
City of Carisbad on the 9th day of July 2013, by the following vote to wit:
AYES: Council Members Hall, Wood, Blackburn, Douglas.
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15 NOES: None
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17 ABSENT: Council Member Packard
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22 ATTEST
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MATT HALL, Mayor
^^>P^^^NGLESON,<^ity Clerk
CARLSBAD
CITY OF
Council Policy Statement
Policy No.
Date Issued:
Effective Date:
Resolution No.
Cancellation Date:
Supersedes No.
Exhibit A
43
July 9, 2013
July 9,2013
2013-177
N/A
43, issued 4/26/05
Category: "EXCESS DWELUNG UNIT BANK"
Specific Subject: Policy for number and allocation of Proposition E "excess" dwelling units
PURPOSE:
To establish the City Council's policy regarding the number and the criteria for allocation of "excess"
Dwelling Units (as defined in Carisbad Municipal Code Section 21.04.120). Excess Dwelling Units
become available as a result of residential projects being approved and constructed with fewer Dwelling
Units than would have been allowed by the growth management control points of the Growth
Management Plan approved by voters on November 4, 1986, as Proposition E and as set forth in
Carlsbad Municipal Code (CMC) Section 21.90.045.
BACKGROUND:
Dwelling Units that become "excess" shall be added to the then-existing citywide balance contained in
the "Excess Dwelling Unit Bank." Excess Dwelling Units may be allocated to projects located in any
quadrant so long as the number of Dwelling Units built in each quadrant is consistent with the Dwelling
Unit limitations for each quadrant established by Proposition E.
A project does not need an allocation of excess Dwelling Units if its proposed density does not exceed
the growth management control point as set forth in CMC 21.90.045.
An allocation of excess Dwelling Units to a project is an "incentive," as defined in CMC Section 21.86.020
A.12 and Government Code Section 65915(k), in that it is a regulatory concession that modifies the
requirements of CMC Chapter 21.90 of the Carlsbad Municipal Code by permitting developments with
more Dwelling Units than otherwise permitted by the growth management control point established in
CMC Section 21.90.045. The allocation of excess Dwelling Units to a project will result in identifiable,
financially sufficient, and actual cost reductions to the project by permitting more Dwelling Units on a
site than would otherwise be allowed by the underlying General Plan land use designation and so
reducing land cost per Dwelling Unit.
POUCY:
Provision Of Inclusionary Units
An applicant for excess Dwelling Units shall agree to provide the number of inclusionary housing units
required by CMC Section 21.85.050 and to execute an affordable housing agreement according to CMC
Section 21.85.140. The calculation ofthe required number of inclusionary units shall be based on all the
Dwelling Units in the project and not just those for which the excess Dwelling Unit allocation is sought.
The applicant shall otherwise agree to comply with the requirements of CMC Chapter 21.85 applicable
to the inclusionary units.
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Policy No. 43
If the applicant desires to rent any Dwelling Units in the project, the application for excess Dwelling
Units shall be accompanied by an affidavit stating that any rental inclusionary units proposed by the
applicant to comply with CMC Chapter 21.85 will not be subject to Civil Code Section 1954.52(a) nor any
other provision of the Costa Hawkins Rental Housing Act (Civil Code Sections 1954.51 et seq.)
inconsistent with controls on rents, because, pursuant to Civil Code Sections 1954.52(b) and
1954.53(a)(2), prior to approval of the project, the developer will enter into a contract (affordable
housing agreement) with the city agreeing to the limitations on rents required by CMC Chapter 21.85 in
consideration for the allocation of excess Dwelling Units, which is a form of assistance specified in
Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 ofthe Government Code.
These requirements shall be considered minimum requirements for the allocation of excess Dwelling
Units. As determined by the decision-maker designated by the Carlsbad Municipal Code, these
minimum requirements may be increased depending on various factors, such as project scope and size
and the amount ofthe allocation request.
Exceptions
The City Council also authorizes the decision-maker designated by the Carisbad Municipal Code to
allocate excess Dwelling Units to projects that do not meet the minimum requirements specified above
under the limited circumstances identified below.
1. Any residential project with a General Plan designation of Residential Low Density (RL) or
Residential Low-Medium Density (RLM) and a base zoning that permits a slightly higher yield of units
than would be allowed by the RL or RLM General Plan designation; provided, the proposed density does
not exceed the maximum density ofthe RL or RLM density range by more than an additional 25 percent,
the project is compatible with the objectives, policies, general land uses and programs expressed in the
General Plan, and all ofthe necessary infrastructure is in place to support the project.
2. Any residential project with a General Plan designation of Residential Medium-High Density
(RMH) or Residential High Density (RH) which requires an allocation of excess Dwelling Units to meet the
minimum density used to determine compliance with housing element law as identified in the latest
adopted Housing Element since this minimum density exceeds the growth management control point.
This exception does not apply to projects on RH-designated properties in the Beach Area Overlay Zone.
3. Any residential project in which the density used for calculation results in a Dwelling Unit yield
that includes a fractional unit of .5 or greater and is the minimum density, growth management control
point density, or the density used to determine compliance with housing element law (as identified in
the latest adopted Housing Element). In this circumstance, a fraction ofa unit may be granted in order
to achieve, but not to exceed, the next whole unit; provided, the maximum density of the applicable
General Plan land use designation or applicable Carisbad Village Master Plan and Design Manual land
use district is not exceeded. The procedure for determining Dwelling Unit yield and allocating fractional
units is contained in CMC 21.53.230(e).
Allocating Excess Dwelling Units
The number of excess Dwelling Units allocated shall be at the sole discretion of the decision-maker
designated by the Carlsbad Municipal Code. The City Council, Planning Commission or the City Planner
retains the discretion to deny approval of the project or approve the proposed project without any
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Policy No. 43
excess Dwelling Units. In approving a request for an allocation of excess Dwelling Units, the City Council,
Planning Commission, or City Planner shall make the following findings:
1. That the project location and density are compatible with existing adjacent residential
neighborhoods and/or nearby existing or planned uses.
2. That the project location and density are in accordance with the applicable provisions of the
General Plan and any other applicable planning document.
3. That the project complies with the findings stated in the General Plan Land Use Element for
projects that exceed the growth management control point for the applicable density range. (This
finding applies only to properties outside the Village Review Zone.)
4. That the project complies with the findings stated in the Carisbad Village Master Plan and Design
Manual, Chapter 3, Development Standards, for projects that exceed the maximum densities set forth
therein. (This finding applies only to properties inside the Village Review Zone.)
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