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HomeMy WebLinkAbout1984-10-16; City Council; 7646-2; Affordable Housing Agreement Pine Ave Apartments3CIT’*9f CARLSBAD m AGEND/ -)ILL &‘-“’ !:_.a 0 +=-7 AB# ?t ‘f6 -+f? TITLE: AFEDRDABLEEDusINGA(;~- MTG.l0!16/84 PINEAVENUEAPARDIEWS. DEPT pm . DEPT. HD. !tf!k!a CITY ATTY CITY MGR.& RECOMMENDED ACTION: Staff is reccmmend ing that the City Council direct the attorney's office to revise the agreement between the city and Jack Pautsch for the provision of affordable housing and authorize the Mayor to enter into the revised agreement for the city of Carl&ad. The applicant is reguesting a change to an agrement tiich the city appmved earlier this year. In February, the City Council approved a general plan amndmnt and a mne change cn property located cm Pine Avenue just west of the AT&SF railroad right-of-way. The mendmnt and rezone gave the applicant the Residential Very-High (RV-H) designation (3040 du's/ac) and the corresponding RD-H zone. The min justification tir these designations Ws that the developer was providing 25% moderate incama housing. A site develvnt plan for a 50 unitapartmento=mplexwas also approved in conjunctionwith the mne change. A condition of approval required the applicant tr> enter into an agreement with the 1 city to provide low or moderate incane Musing. On September 26, 1984, the Planning Ccmnission approved an anedment tn the site development plan hich reduced the mmber of units fran 50 to 48 and improved the werall design. The applicant mw wishes to change the type of affordable housing he is providing fran 25% moderate incane housing (80 to 120% of madian) to 10% lcw incane housing (80% of median). Section 65915 of the state code attached, provides the developer a choice between the two types of affordable housing. Staff is remmmnding that the Council approve the applicant's request and enter into a revised agreement which muld provide for 10% of the units tohave rentsbelow80% of themedian incam. This project has mdergone previous enviromkental review and a Notice of Prior Environmntal Canpliance was issued on August 15, 1984. FISCALIMPACT There will be no direct fiscal impact fmm the revised agreement. As under the existing agreement, scme staff time (Housing Authority) will be utilized to mnitor rents. I EXHIBITS 1. Ioc&ionMap 2. Existing Agreemant 3. Section 65915 - State code prior Agenda bills filed in 57 and 113 - (GPA/LU 83-2O/ZC 297) Ord. 9711, Res 7532 & 7533. dtd 2/21/84 and 3/6/84. “1 1315 RECORDING REQUESTED BY: WHEN RECORDED MAIL TO: City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 -A I -1: )EyJ ;q - *:r, ),I I :;C-f-,;3r,t. I I oi SAN oiii;c ;~:-p,p~ri./ f.^RS IlAW f 1 ..* I!HI 14 "'t i: 21, ,' 1 , *j-,- / ; l- <._ I C(j..jll!r :,,"s ,.. -- .- NO FEE 1 space above for recorder's use -- AGREEMENT IMPOSING RESTFJCTIONS- ON PEAL PROPERTY This agreement is made and entered into this&-A day of /9ts%PL , 1983 by and between the City of Carlsbad, California, a municipal corporation, hereinafter referred to as "Carlsbad" and John R. Pautsch, hereinafter referred to as "applicant." RECITALS A. Applicant is the owner of certain real property located at 336 and 372 Pine Avenue in the City of Carlsbad, County of San Diego, State of California more particularly described on Exhibit A attached hereto and incorporated by this reference. B. Applicant has filed an application for a General Plan Amendment from RH to RVH (GPA/LU 83-20), a zone change from R-3 to RD-H (X-297) and a site development plan for a 50 unit Eixlllm Page 1 of 7 - e apartment project at a density of 33.5 dwelling units per acre (SDP-83-10) (hereinafter referred to as "project") for the real property referred to above. The applications are collectively referred to hereinafter as the "application". A .density of 33.5 dwelling units per acre is requested in order to assist Carlsbad in achieving the goals established by the Housing Element of the General Plan. To achieve those goals the project must be available for rental for the period stated herein. Without the rental restrictions Carlsbad would not approve the project. c. In order to induce the City to approve the application and in a desire to comply with the provisions of Chapter 21.23 of the Carlsbad Municipal Code and with California Health and Safety Code section 55093 applicant desires to provide that thirteen of tne dwelling units in the project will be available to persons and families of low to moderate income for a period of ten years and that the entire project be available for rental for a period of ten years. D. Carlsbad desires to ensure the continued availability of thirteen of the dwelling units of the project for persons or families of low or moderate income and to ensure that the project will be available for rental for the time period specified in this agreement. /// /// I// Page-2 of YIBflA 3 @q . I - A77 E. In order to ensure the continued availability of this project as a rental project and the continued availability of thirteen of the units for persons and families of low and moderate income the City Council of the City of Carlsbad has required execution of this agreement concurrently with their approval of the application. Without the execution of this agreement the City Council would be unwiliing to grant approval of the application. NOW, THEREFORE, in consideration of the recitals and of Carlsbad's approval of the application and of the benefit conferred thereby upon the subject real property and the applicaton it is 'hereby agreed as follows: 1. Definitions - whenever the following words or phrases appear in this agreement they shall have the meaning established by this section. a. "Qualified Person or Family" or "Person or Family of Low or Moderate Income" shall mean persons and families whose income does not exceed 90% of the area median income adjusted for family size pursuant to the provisions of section 50093 of the State Health and Safety Code. Qualifications shall be verified by the Carlsbad Housing Authority. b. "Established Rent" shall mean the maximum monthly rent established for each restricted unit by the Director of Building and Planning. Established rents may vary based on the income level, family size-of the qualified person or family Page 3 of 7 - mtlrr w v=Q 1378 and upon the size of the restricted unit. Established rents shall be affordable to qualified persons or families. Rent shall be deemed affordable if it does not exceed twenty five percent of the median monthly gross income of the qualified persons or families. In determining established rents the Director of Building and Planning shall base the determination solely upon the latest affordable rent schedule proposed by HUD as defined in this agreement provided, however, that the established rents shall not exceed the prevailing fair market rent for comparable units in the area. Established rents shall be determined annually. C. "Restricted Unit" means a dwelling unit in the project whict: is occupied by or available for rent to a qualified person or f.2~ly. c . "Affordable Rent Schedule" means the affordable rents for medran household income for San Diego County or the equivalent geographic area as annually established by the Federal Department of Houqing and Urban Development (HUD) pursuant to Section 8 of the United States Housing Act of 1937. In the event that such determinations on schedules by the Department of Housing and Urban Development are discontinued the rent shall be set at twenty five percent of the monthly area median household income established and published by the Department of Housing and Community Development of the State of California pursuant to Health and Safety Code section SO093 for the family size occupying the unit. The HUD income ranges and corresponding affordable rents for July 1983 are attached as Exhibit B. c Page 4 of 7 +? . . w . 1379 2. Restrictions on the Project a. That for a period of ten years from the date of issuance of the certificate of occupancy for the project all units in the project shall be available for rental.. If applicant submits an application for such conversion at any time during the ten year period approval or conditional approval of such conversion shall be subject to a condition that for the remainder of the ten year period for rental the applicant shall not convey individual units in the project. b. That for a period of ten years from the date of occupancy of the project any thirteen of the dwelling units constructed shall be made available for rental to qualified persons or families. Each restricted unit shall be rented at an established rent. c. The design and exterior appearance of the reserved units shall be compatible with the nonreserved units within the development in varying locations on the site. The reserved units shall be constructed either prior to or simultaneously with the nonreserved units with the development. If the development is being constructed in phases, the percentage of reserved units to be constructed in each phase shall be equivalent to the percentage of the total number of nonreserved units being constructed in that phase. d. Applicant shall keep rental data for restricted units and qualified persons or families and shall submit annual rental data for the restricted units and qualified persons or 1380 families occupying the units to the Carlsbad Director of Building and planning and the Housing Authority. During the term of this agreement the Director of Building and Planning or the Housing Authority may inspect or audit the applicant's books for the project semi-annually to ensure performance of this agreement by applicant. At any time, upon reasonable advance notice to the applicant, the Director of Building and Planning or the Housing Authority may inspect the project to ensure performance of this agreement. 3. Carlsbad may assign all or any of its rights or obligations under this agreement to the Carlsbad Housing and Redevelopment Commission, but to no other public agency. 4. All notices required under this agreement shall be sent by certified mail, return receipt requested to the following address: To Applicant: John R. Pautsch 2204 Waterfront Drive Corona De1 Mar, California 92625 To Carlsbad: Attn: Director of Building and Planning 1200 Elm Avenue Carlsbad, California 92008 5. The covenants, conditions and obligations contained herein shall run with the land and shall apply to and bind the heirs, successors and assigns of all parties hereto. This agreement shall be recorded. Page 6 of 7 7= - a w.- 1381 6. This agreement constitutes the entire agreement . . between the parties and no modlflcation shall be binding unless reduced to writing, signed by the parties hereto. . I 7. All questions pertaining to the valldlty and interpretation of this agreement shall be determined in accordance with the law of California applicable to contracts -ArCrrrmoA within the State* CORPORATE A6KiJQ&;EDGMEIW i3cL NO. 202 s x E 0” al E t 5 .Y & I ii, C IL E s u 5 z = s $ i State of Cal i fmi A County of san DiegO On this the-&&day of I%% 19&$ before me, Karen R. St-zvens the undersigned Notary Public, personally appeared m He WmR ****t*t**f*********i*+*********** ‘ Xl personally known to me 0 proved to me on the basis of satisfactory evidence to be the person(s) who executed the within instrument as Mayor #on behalf of the corporation therein named, and acknowledged to me that the corporation executed it. WITNESS my hand and official seal. 22 NATIONAL NOTARY ASSOClATtON m 23Ol2 Ventura Blvd l P.0. Box 4625 l Woodland Hilts, CA 91364 J State, personally appeared personally known to me (or proved to me on the basis of satis- factory evidence) to be the perso& whose name-b- scribed to the within instrument and acknowledged to me that @- executed the same. WITNESS my hand and official seal. Notary PRINCIPAL Of ;/ ~A~&J&xt j&j~g-+ort ExPireI Maw 4 I xc . Signature (This area for official notarial seal) -.. - - .’ ,, -7TATE CODE - F iI EXHIBIT "Y" S65915. Required agreements a) b) cl d) When a developer of housing agrees to construct at least 25 percent of the total units of a housing development for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, or 10 percent of the total units of- a housing development for lower income households, as defined in Section 50079.5 of the Health and Safety Code, a city, county, or city and county shall either (1) grant a density bonus or (2) provide other incentives of equivalent financial value. , A developer may submit to a city, county, or city-and county a preliminary proposal for the development of housing pursuant to this section prior to the submittal of any formal requests for general plan amendments, zoning amendments, or subdivision map approvals. The city, cuunty, or city and county shall, within 90 days of receipt of a written proposal, notify the housing developer in writing of the manner in which it will comply with this section. The city, county, or city and county shall establish procedures for carrying out this section, which shall include legislative body approval of the means of compliance with- this section. For ths purposes of this chapter, "density bonus" means a density increase of at least 25 percent over the otherwise maximum allowable residential density under the applicable zoning ordinance and land use element of the general plan. The density bonus shall not be included when determining the number of housing units which is equal to 10 or 25 percent of the total. The density bonus shall apply to housing developments consisting of five or more dwelling units. If a developer agrees to construct both 25 percent of the total units for persons and families of low or moderate income and 10 percent of the total units for lower income households, the developer is entitled to only one density bonus under this section although the city, city and county, or county may, at its discretion, grant more than one density bonus.