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Home My WebLink About1984-12-04; City Council; 7982; SINGLE FAMILY MORTGAGE REVENUE BONDS-AFFORDABLE HOUSING POLICY STATEMENT AS REQUIRED BY SECTION 103A OF THE INTERNAL REVENUE CODEc CI~OF CARLSBAD - AG,EN&BILL a!? .. % AB# ~YYW DEPT. HD.~ TITLE: SINGLE FAMILY MORTGAGE REVENUE BONDS- AFFORDABLE HOUSING POLICY STATEMENT AS CITY AllYU DEPT. RED CITY MGL REVENUE CODE MTG. 12'4'84 REQUIRED BY SECTION 103A OF THE INTERNAL 1 I I ~ ~~~- AE@6MM€MB€B AMlbN: City Council accept the report on Affordable Housing Policies of th City of Carlsbad and direct staff to file it with the Secretary of the Treasury. ITEM EXPLANATION: Recent amendments to the Tax Reform Act of 1984 require cities to issue a policy report on affordable housing. This report must be presented in a public hearing and published prior to the last day of 1984 if the City wishes to issue bonds in 1985. The City of Carlsbad is presently seeking an allocation for Single Family Mortgage Revenue Bond issue for 1985. The Report required by the Tax Reform Act must contain a statement of policies with respect to housing, development and low-income housing assistance. Staff feels that the policies outlined in the Housing Elpment of the General Plan adequately meet this condition. Additionally, the City is required to provide an assessment of the prior year's Single Family Mortgage Revenue Bond program. Staff feels the program meets all the objectives of the legislation and was successful in providing affordable housing. Staff recommends that City Council review and accept the attached Housing Policy Report and direct staff to publish it and file it ~ with the Secretary of the Treasury. ~ FISCAL IMPACT: No fiscal impact. E >. EXHIBITS: 2 1 - Report on Affordable Housing Policy - City of Carlsbad CL 0- a 2 a 0 6 s z 3 '0 0 e e November 20, 1984 TO : CITY MANAGER FROM : Community Redevelopment Manager VIA: Building and Planning Director AFFORDABLE HOUSING POLICY REPORT MORTGAGE BONDS AND CERTIFICATES The policies of the City of Carlsbad with regard to affordable housing are contained in the Housing Element of the General Plan. More specific policies are presented in the City Council Goals and Objectives. A major goal of the Housing Element is: TO PROVIDE AFFORDABLE HOUSING OPPORTUNITES IN A VARIETY OF TYPES AND LOCATIONS TO MEET THE NEEDS OF CURRENT LOW AND MODERATE INCOME HOUSEHOLDS AND A FAIR SHARE PROPORTION OF FUTURE LOW AND MODERATE INCOME HOUSEHOLDS. In order to meet the goal outlined above, specific policies and action programs are suggested. Those relating to affordable housing follow: POLICY 1'1 I Develop a greater diversity of housing types and programs to meet a significant share of Carlsbad's lower income housing needs: maintain and rehabilitate where necessary to existing stock of lower income housing. Carlsbad's five year target qoal as estimated in the regional fair share program of January, 1980, is 2,845 households. ..~. .... . ,Affordable Housing P cy Report November 20, 1984 e 0 Page 2 ASSISTANCE GOALS 1980-85 ~.~ .. Total households requiring housing assistance (CPO Fair Share, Jan, 1980) 2,845 Elderly households (1 in 5 of city total) 568 Non-elderly family households 2,277 POLICY IV Give consideration to future action on those federal and state policies and programs designed to increase the supply. of moderate income rentals and opportunities for moderate income ownership. .. .. . POLICY v Develop public incentives to assist the private market in providing broader housing opportunities for development of low and moderate income housing. POLICY VI Assure adequate and suitable sites for development of a variety of housing types and especially to assure affordability. . . ... POLI'CY IX All housing in the city should be sold or rented, in accordance with the federal and state government's equal opportunity regulations. POLICY x Periodically review all housing program implementation efforts and update when necessary. , Affordable Housing Po y Program , November 20, 1984 r: e Page 3 City of Carlsbad City Council Goals and Objectives 1984 states clearly the short term objectives. B-2 COMMUNITY DEVELOPMENT. MAKE AVAILABLE AFFORDABLE HOUSING FOR ALL ECONOMIC SEGMENTS OF THE COMMUNITY. B-2-3 Provide moderate/affordable (80%-120% of median income) housing through incentive programs, (mortgage revenue bonds, RVH Ordinance, density bonus, etc.) B-2-5 Follow regional guidelines in establishing number and types of assisted housing. B-2-9 Seek additional mortgage revenue bond money for multiple units. Mortgage Subsidy Bonds issued by the City of Carlsbad have been used to assist lower income families to afford homeownership. The City's previous issue is August 1983 for $20 million has been successful in this attempt. Two major developments in the City utilized this financial tool to sell new homes to first-time homebuyers. The maximum sales price for the housing units could not exceed 110% of the average price for housing in the region. The maximum price for housing units in the program was $137,916 and $109,866 for new and existing housing units, respectively. Purchasers could not exceed 150% of the median income level($26,612) or $41,914. These bonds were issued pursuant to the provisions of Health and Safety Code Section 5200 et seq. (AB 1355) and were targeted for low and moderate persons. It is the City's intention to continue to explore methods of achieving future single family mortgage revenue bonds. The proceeds of these issues will be exclusively used for low-moderate income families that do not exceed 150% of the area median income with an emphasis on families that are at 120% of the area median or less. affordable housing for the community. Among these methods will be LL CHRIS SALOMONE CS : a1 DECEMBER 4, 19 !@ .. ._.. .- . 0 EJffqEJDEO OUP p' IChC.2.Tl*) G TO : CITY MANAGER ..* Ah a .ding and Planning FROM: Director of Kil 4-v 19.83 SINGLE-FAMILY MORTGAGE REVENUE BOND PROGRAM Total Issue: $20,000,000 1983 Program Requirements: A. First-Time Homebuyers B. Maximum Sales Price: $137,916 (110% of Regional Average) C. Income Limitation: $41,914 (150% of Median - .. $26,612) Program Characteristics as of September 17, 1984: Total Mortgages: 55 Fund Disbursement: '$6.7 Million Projected Disbursement. 1984: $7..1 Million Average Sales Price: $96,486 Average Monthly Mortgage Payment: $993 . 00 Average Interest Rate: 9.9% Average Borrower Age: 31 Buyer Profile: Income Range: Less than 50% of Median 1 50% to 100% of Median 5 100% to 120% of Median 19 120% to 150% of Median - 30 TOTAL 55 Employment Type: Professional Managerial.' Technical. Military Officer Government Admin. Skilled Labor Unskilled Labor White Collar 25.7% 14.3% 11.4% 4.38 2.9% 5.7% 2.9% ' 8.6% Executive 2.9% Craftsman 2.9% Self -Employed 5.7% Sales Inside 2.9% Sales Outside 7.1% Retired 1.4% Other 1.4% MARTY MO : hm j .. . .. b e Io Carlsbad Journal Decreed a Legal Newspaper by the Superior Court of Sun Diego County 31 38 ROOSEVELT ST. 0 P.O. BOX 248 0 CARLSBAD, CA 92008 0 729-2345 Proof of Publication STATE OF CALIFORNIA, ss, COUNTY OF SAN DIEGO, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am principal clerk of the printer of the Carlsbad Journal a newspaper of general circulation, published twice weekly in the City of Carlsbad, County of Sun Diego, State of California, and which newspaper is published for the dissemination of local news and intelligence of a general character, and which newspaper at all times herein mentioned had and still has a bona fide subscription list of paying subscribers, and which newspaper has been established and published at regular intervals in the said City of Carlsbad, County of Sun Diego, State of California, for a period exceeding one year next preceding the date of publication of the NOTICE OF PUBLIC , . HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Carls- bad will hold a public hearing at th% City Council Chambers, 1200 ' Elm Avenue; Carlsbad. California. 4; 1984, to discuss policy with re- at 6:OO P.M. on Tuesday, December . spect to housing, development and low-income housing assistance to be followed in issuing qualified mortgage bonds and mortgage cr*- it certificates and to assess the com- pliance of the City in the preceed- .ing I-year period. This hearing is being held pursuant to Section approved by Congress as part ofthe 103A of the Internal Revenue Code Tax Reform Act of 1984. Those persons.wishing to speak on this issue are cordially invited to attend the public hearing. If you have any,questions, please call the RedevelopmenVLand Use Plan- ning Offic'e at 438-5593. CITY COUNCIL Cl S677: November 29,1984 CITY OF CARLSBAD , notice hereinafter referred to; and that the notice of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: ............... Noyefibe?? 24,. .. 19. .E!+ ................................. 19 .... ................................. 19 .... ................................. 19 .... ................................. 19 .... 1.5M-11/84 I certify under penalty of perjury that the foregoing is true and correct. Executed at & I ad, County of San Diego, State of California on Lml day of 1 oven; er. qq34 - ddocL A+ rnd//A-, Clerk of the Printer ? * 0 (1, Carlsbad Journal Decreed a Legal Newspaper by the Superior Court of Son Diego County 3 138 ROOSEVELT ST. 0 P.O. BOX 248 0 CARLSBAD, CA 92008 729-2345 Proof of Publication STATE OF CALIFORNIA, ss. COUNTY OF SAN DIEGO, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am principal clerk of the printer of the Carlsbad Journal a newspaper of general circulation, published twice weekly in the City of Carlsbad, County of $an Diego, State of California, and which newspaper is published for the dissemination of local news and intelligence of a general character, and which newspaper at all times herein mentioned had and still has a bona fide subscription list of paying subscribers, and which newspaper has been established and published at regular intervals in the said ,', ' ' LEGAL NOTICE' next preceding the date of publication of the notice hereinafter referred to; and that the notice City of Carlsbad, County of San Diego, State of California, for a period exceeding one year __ NOTICE IS H~R~Y GX~N that the City Council ofShe City of Carls- - of which the annexed is a printed copy, has been bad did hold a public hearing at the City Council Chambers; 1uK) Elm published in each regular and entire issue of said 600 PM. on Tuesday, December 4. Avenqe, Carlsbad, California at newspaper and not in any supplement thereof on 1984.AtsaidmeetingtheCityCoun- the following dates, to-wit: cil accepted the report on Single Family Mortgage Revenue BoJs- ,Affordable Housing Policy state- ment as .requested by Section 1036 of the Internal Revenue Code and ....... Pe.c.ember: .8. ............. 19 . .8.4 directed staff to file with the Secretary of the Treasure. The Single Family Mortgate R&- enue Bonds-Affordable Housing Policy Stqtem'ent isas follows: AFFORDABLE HOUSING'POLI- CY REPORT MORTGAGE BONDS ................................. .... 19 1.5M-11/84 AND CERTIFICATES. bad with regardto affordable hous- The policies of tlie City of,Farls- ing arecontained in the Housiig Element of the General Plan. More specific policies are phsented in the City Council, Goals and Objec- tives. ' .. A major gial of me Housing Ele- mentis: ,HOUSING OPPORTUNITIES, IN A TO PROVIDE AFFORDABLE VARIETY OF TYPES AND LOCA- TIONS TO MEET THE NEEDS OF CURRENT LOW AND MODERATE ' FUTURE LOW AND MODERATE FAIR SHARE PROPORTION OF INCOME HOUSEHOLDS. In order to meet the goal outlined above, specific policies and action prograds'are suggested. Those re- lating to.affordable housing follow: Develop a greater diversib of housing types and programs to meet a signficant share of Carls- bad's lower income housing needs; maintain and rehabilitate where necessary to existing stock of lower indome housing. I, t ., ,. INCOME HOUSEHOLDS'AND POLICY 111 .... ." . ................................. 19 .... ................................. 19 .... ................................. 19 .... I certify under penalty of perjury that the foregoing is true and correct. Executed at txl;ba~,tEunty of San Diego, State of Ca 'fornia n day of becem%er, 1Y 84 ,' I ,' d- f?f -/, ' /5&' ',3h v v Clerk of the Printer estimated in the regional fair share Carlsbaa'sfiveyeariargergoal as program of January. 1980, is 2.845 households- ASSISTANCE GOALS 1~- " Total household requiring housing , assistance (CPO Fair Share. Jan.. 1980) \' 2,845 total) Elderly households (1 in 5 of City 588 ... * c d, . 1 2 3 4 5 0 0 RESOLUTION NO. 7677 A RESOLUTION OF TEE CITY COUNCIL FO THE CITY OF CARLSBAD( CALIFORNIA AUTHORIZING PARTICIPATION IN THE SINGLE FAMILY MORTGAGE REVENUE BOND PROGRAM AND AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION FOR SAID PROGRAM TO THE MORTGAGE BOND ALLOCATION COMMITTEE. 6 wishes to participate in the Single family mortgage revenue bond 7 WHEREAS, the City Council of the City Of Carlsbad, California, 8 program: 9 NOW, THEREFORE, BE IT RESOLVED, by the City COuncil Of the ci. 10 of Carlsbad, California as follows: 11 12 13 1. That the above recitation is true and correct. 2. Thzt the City of Carlsbad has on hand $75,000 in letters credit from developers representing a O.50%"good=fa2th1' deposit for $15 million of Mortgage Revenue Bonds. 14 the City of Carlsbad in the Single Family Mortgage Revenue Bond l5 3. That the City Council hereby authorizes participation by 21 of credit held by the City of Carlsbad. 2o /times the total of the developer good faith cash deposits or lettc l9 allocation of revenue bonds in an amount equal to the product of 2 18 application to the Mortgage Bond Allocation Committee for an I" Program. The City is hereby authorized and directed to make l6 PASSED, APPROVED AND ADOPTED at a regular meeting of the Cit! 22 Council of the City of Carlsbad, held on the 17th day of July , l! 23 by the following vote to wit.: 24 AYES: Council "hrs Casler, Lewis, Kulchin and Frescott i 25 I NOES: NO= 0. 26 ABSENT: Council Pkrrber Chick +d&&/ 27 28 ae;t?lp,dp MARY H. . ASLER, Mayor ALETHA L. RAUTE OCEANSIDE F SCALE i CITY OF CARLSBAD AGUA HEDIONDA PACIFIC OCEAN I LOCATION MAP l1 'tIM