HomeMy WebLinkAbout1985-03-05; City Council; 7982-1; SINGLE FAMILY MORTGAGE REVENUE BONDS-AFFORDABLE HOUSING STATEMENT POLICY REPORT UNDER SECTION 103A.'" -9 ,./, . !
J CIT~F CARLSBAD - AGEND~ILL
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CITY ATPI!,& POLICY REPORT UNDER SECTION 103A MTG.-.--
TITLE: SINGLE FAMILY MORTGAGE REVENUE
CITY MGR.~ DEPT. RED
RECOMMENDED ACTION:
3/5/85 BONDS-AFFORDABLE HOUSING STATEMENT
City Council accept the report on Affordable Housing Policies
Secretary of the Treasury.
8€ ith~ Ciky of Carlsbad and direct staff to file it with the
ITEM EXPLANATION
Recent amendments to the Tax Reform Act of 1984 require cities to issue a policy report on affordable housing. A report was - presented on December 4, 1984 to City Council in a public hearing.
The regulations later published required more detail 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 Element 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
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No fiscal impact.
EXHIBITS
1 - Report on Affordable Housing Policy - City of Carlsbad
2 - llemo from Euilding Director to City Manager', dated February 27,
e @ EXHIBIT 1
February 13, 1985
TO : CITY MANAGER
FROM : Community Redevelopment Manager VIA: Building and Planning Director
AFFORDABLE HOUSING/HOUSING BONDS AND CERTIFICATES -
POLICY REPORT UNDER SECTION 103A
TAX I.D. # 95-6004793
The City of Carlsbad has used Mortgage Revenue Bonds to provide affordable housing. The policies regarding affordable housing are derived from the Housing Element of the General Plan and
later in this report. Specific policies utilized in Single Family
Mortgage Revenue Bonds are as follows:
the City Council Goals and Objectives. The policies are outlined
- The City issued $20 million in Mortgage Revenue Bonds
in the fall of 1983. The proceeds have been utilized
to provide affordable housing over the last 12 months.
- All proceeds are used to provide financing for the
acquisition of residences.
- The need for affordable housing has been determined by the City Council at public hearings and is contained in the policies outlined later in this report.
- The Mortgage Revenue Bonds are solicited from developers throughout the entire City and are not targeted to any
specific sector of the City.
- The proceeds of the issue are used to provide low-interest
mortgages to first-time homebuyers.
- The program is targeted to low and moderate income (80%
median) homebuyers.
- The maximum sales price of the housing units in the program
is $137,916 for new and $109,866 for 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 $5200 et seq. (AB 1355) and were targeted for low and moderate income persons.
- . ' Affordable housing^
City Manager e
February 13, 1985
Page 2
- The mortgages offered under this program are available
to - all persons qualifying under the provisions of the
BpagpaM.
The policies of the City of Carlsbad with regard to affordable
housing are contained in the Housing Element of the General Plan. More specific policies are presented in the City Council Goals
and Objectives.
A major goal of the Housing Element is:
TO PROVIDE AFFORDABLE HOUSING OPPORTUNITIES
IN A VARIETY OF TYPES AND LOCATIONS TO MEET
THE NEEDS OF CURRENT LOW AND MODERATE INCOME
HOUSEHOLDS AND A FAIR SHARE PROPORTION OF
FUTURE LOW AND MODERATE INCOME HOUSEHOLDS.
In order to meet the goal outlined above, specific policies and action programs are suggested. Those relating to
affordable housing follow:
POLICY I11
Develop a greater diversity of housing types and programs to
meet a significant share of Carlsbad's lower income housing needs; maintain and rehabilitate where necessary the exk$ting
stock of lower income housing.
Carlsbad's five year target goal as estimated in the regional fair share program of January, 1980, is 2,845 households.
ASSISTANCE GOALS 1980-85
Total household requiring housing 2,845
assistance (CPO Fair Share, Jan. 1980)
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.
.. a Affordable Housing
City Manager
February 13, 1985
Page 3
3)
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.
POLICY 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 and housing program implementation efforts and update when necessary.
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 bonuses, etc.)
B-2-5 Follow regional guidelines in establishing number
and types of assisted.
B-2-9 Seek additional mortgage revenue bond :money for multiple units.
It is the City's intention to continue to explore methods of
achieving affordable housing for the community. Among these
.. . Affordable Housing City Manager e 4
February 13, 1985
Page 4
methods will be future single family mortgage revenue bonds.
Other methods will possibly include multi-family Mortgage Revenue
as determined by the City to be appropriate.
Bonds, Mortgage Certificates and/or special ordinances or measures
L-
CHRIS SALOMONE
CS: a1
FEBRUARY 27; le e
TO: . CITY MANAGER
FROM: Directcr of Building and Planning
1983 SIGNLE-FAMILY MORTGAGE REVENUE BOND PROG'RAM
Total Issue: $20,000,000
1983 Program Requirements:
A. First-Time Hom,ebuyers
B. Maxtmurn sales Price: $137,916 (110% of Regional Average)
C. Income L,imitation: $ 41,914 (150% of Median -
$26,612)
Program Characteristi.cs as of September 17, 7984:
,Total Mortgages: 55 Fund Disbursement:.. $6.7 Million
Average Sales Price: $96,486
Average Monthly Mortgage
Payment: $993.00 Average Interest Rate: 9.9% Average Borrower Age: 31
Projected Disbursement 1984: $7J Million
Buyer Prof i 1 e:
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 25.7% Executive 2.9%
Managerial 14.. 3 % Craftsman 2.9% Technical 11 -4% Self-Employed 5.7% Military Officer 4.3% Sales Inside 2.9% Government Admin. 2.9% Sales Outside 7.1% Skilled Labor 5.7% Retired 1.4%
Unski 11 ed Labor 2.9% Other. 1.4% White Collar 8.6%
MARTIN N% ORE.
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e 4
1-1
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN THAT THE CITY COUNCIL OF THE CITY OF
CARLSBAD hold a public hearing at the City Council Chambers,
1200 Elm Avenue, Carlsbad, California, at 6:OO P.M. on Tuesday,
March 5, 1985, to discuss policy with respect to housing fleyelopmgflt and Igw-income housinq assistance to be followed
in issuing qualified mortgage bonds and mortyaqe credit certificates
and to assess the compliance of the City in the preceeding 1
year period. This hearing is being held pursuant to S103A of
the Internal Revenue Code approved by Congress as part of the
Tax Reform Act of '1984.
Those persons wishing to speak on this issue are cordially invited
to attend the public hearing. If you have questions, please
call the Redevelopment/Land Use Planning Office at 438-5593.
CITY COUNCIL
CITY OF CARLSBAD
PUBLISH DATE: February 23, 1985
.. -. ..
'. .
..; c 1, e
‘ Carlsbad Journal
Decreed a Legal Newspaper by the Superior Court of Sun Diego County
3 138 ROOSEVELT’ST. 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 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 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
NOTICE OF PUBLIC newspaper and not in any supplement thereof on HEARING the following dates, to-wit:
theCityCounciloftheCityofCarls- NOTICE IS HEREBY GIVEN that
bad will hold a public hearing at
Elm Avenue. Carlsbad, California.
the City Council Chambers, 1200
at 6:OO p.m. on Tuesday, March 5,
to housing development and low- 1985, to discuss policy with respect
income housing assistance to. be followed in issuing qualified mort- gage bonds and mortgage credit certificates and to assess the com- pnance of the City in the preceed- ing 1 year period. This hearing is being held pursuant to 9103A of the Interna1,Revenue Code approved by Congress as part of.th’e Tax Re- form A‘ct of 1984.
on this issueare cordiallyinvited tg Those persons wishing to speag
attend the public hearing. If you.- have questions, please call the Re- devlopmenfiand Use Planning Of- fice at 438-5593.
February 23 8E
,,,,,,,,,,.,,,*,I.,*.,.. ,**I.**.. 19..,.
................................. .... 19
................................. .... 19
................................. .... 19
CITY COUNCIL CITY OF CARLSBAD CJ 4108: February 23,1985
................................. .... 19
1.5M-11/84
I certify under penalty of perjury that the foregoing is true and correct. Executed at Carlsbad, County of San Diego, State of California on the 23rd
0 6
’ Carlsbad Journal
Decreed a Legal Newspaper by the Superior Court of Son Diego County
3 138 ROOSEVELT ST. 0 P.O. BOX 248 CARLSBAD, CA 92008 729-2345
Proof of Pvblication
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 San Diego, State of California, for a period exceeding one year
next preceding the date of publication of the
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:
March 9 85 ................................. 19 ....
................................. 19 ....
................................. 19 ....
................................. 19 ....
................................. 19 ....
I certify under penalty of perjury that the foregoing is true
and correct. Executed at Carlsbad, County of San Diego,
day of MTrrh. 1995 State of California on thegth
... LzZmA 1
1.5M-11/84 v Clerk of the Printer
. __ ""." . ".." .~ . "" - _.""" -
LEGAL NOTICE I
.NOTICE IS HEREBY GIVEN that the City Council of the City of Carlsbad did hold a public hearing at the City Council Chambers, 1200 Elm Avenue. '
Carlsbad. California at 6:OO PM on Tuesday, March 5,1985. At said meeting the City Council accepted the report on Single Family Mortgage Revenue Bon~s"AffordableHousingPolicyStatementasrequestedby9103Aofthe 1 Treasure. City of Carlsbad Tax I.D. #95"793. . Internal Revenue Code and directed staff to file with the Secretary of the
: - The Single Family Mortgage Revenue Bonds - Affordable Housing ; Policy Statement is as folIows: I AFFORDABLE HOUSING POLICY REPORT MORTGAGE BONDS AND CERTIFICATES TheCityofCarlsbadhasusedMortgageRevenueBondstoprovideafford- I able housing. The policies regarding affordable housing are derived Rom the Housing Element of the General Plan and the City Council Goals and Objectives. The policies are outlined later in this report. Specificpblicies utilized in Single Family Mortgage Revenue Bonds are as follows: a 1 -The City issued $20 million in Mortgage Revenue Bonds in the fall of ! 1883. The proceeds have been utilized to provide affordable housing over I the last 12 months. . -All proceeds are used to provide financing for the acquisition of resi- dences.
Council at public hearingsand is containedin the policies outlined later in - The need for affordable housing has been determined by the City
this report. -The Mortgage Revenue Bonds are solicited Rom'developers through- out the entire City and are not targeted to any npecific sector of the City.
first-time homebuyers. '
-The proceeds ofthe issue are used to provide low-interest mortgages to
. -The program is targeted to low and moderate income (8090 median) homebuyers.
, - The maximum sales price of the housing units in the program .is $137,916 for new and $109.886 for existing housing units, respectively. -Putchasers could not exceed 1Woofthe median income level($26.612) or $41.914. - These bonds were issued pursuant to the provisions of Health and Safety Code SSWM et. seq. (AB 1355) and were targeted for law and moderate income persons. -The mortgages offered under this program are available to all persons qualifying under the provisions of the program.
contamed in the Housing.Element of the General Plan. More specific poli- The policies of the City of Carlsbad with regard to affordable housing are
cies are presented in the City Council Goals and Objectives. i
I,
i ..
1 A major goal of the Housing Element is: ..
TO PROVIDE AFFORDABLE HOUSING OPPORTUNITIES IN A VARIE- '
I TY,OF TYPES AND LOCATIONS TO MEET THE NEEDS OF CURRENT 1 LOW AND MODERATE INCOME HOUSEHOLDS AND A FAIR SHARE 1 PROPORTION OF FUTURE LOW AND MODERATE INCOME HOUSE- 1
I HOLDS. : In order to meet the goal outlined above, specific policies and action programs are suggested. Those relating to affordable housing follow: POLICY 111 Develop a greater diversity of housing types and programs to meet a j
~ significatit share ofcarlsbad's lower income housing needs; maintain and : rehabilitate where necessary the existing stock of lower income housing. 1 Carlsbad's five year target goal as estimated in the regional fair share , program of January, 1980, is 2,845 households.
Total household requiring housing assistance (CPO Fair Share, Jan. 1980) Elderly households (1 in 5 of City total) Non-elderly family households POLICY IV
ASSISTANCE GOALS 1980-85
I
2.845 ;'
' I 568; 2.277
' and programs designed to increase the supply of moderate income rentals Give consideration to future action on those federal and state policies
and opportunities-for moderate ihcbme ownership. POLICY v
broader housing opportunities for development of low and moderate in- Develop public incentives to assist the private market in providing
come housing. POLICY VI Assure.adequate and suitable sites for development of a variety of how; i 1 ine tvoes and esoeciallv to assure affordabilitv. I POLicY rx . ~~ .. ~-
All housing in the City should be sold or rented, in accordance with the j federal and state government's equal opportunity regulations. POLICY x / ' Periodicallv review housinn Dromam imDlementationefforts and UDdate -. - I when necessary.
1 HOUSING FOR ALL ECONOMIC SEGMENTS OF THE COMMUNITY. ~' ~ -~~ I short term objectives: City of Carlsbad City Council Goals and Objectives 1984 states clearly the
8-2 COMMUNITY DEVELOPMENT. MAKI;: AVAILABLE AFFORDABLE
,. ,
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1
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through incentive,programs. (mortgage revenue bonds, RVH Ordinance,. B-2-3Providemoderate/affordable(8090-120%ofmedian incomejhousing
density bonuses, etc.) B-2-5 Follow regional guidelines in establishing numbej and types of assisted. B-29 Seek additional mortgage revenue bond money for multiple units. I It is the City's intention to continue to explore methods of achieving I affordable housing for the Community. Among these methods will 6e future ,single family mortgage revenue bonds. Other methods will possibly include 1 multi-family Mortgage Revenue.Bonds, Mortgage Certificates and/or spe- I cia1 ordinances or measures as determined by the City to be appropriate. i
Total Issue: 1983 Program Requiremenis: A: First-Time Homebuyers ' B. Maximum Sales Price:
C. Income Limitations:
Program Characteri'stics as of September 17, 1984: Total Mortgages: Fund Disbursement: , Projected Disbursement 1984: Average Sales Price: Average Monthly Mortgage Payment:' Average Interest Rate: Average Borrower Age: Buyer Profile:
..
1983 SINGLE-FAMILY MORTGAGE REVENUE BOND PR&RAM '
S?O.OOO.OOO
(110% of Regional Average)
. (150% of Median 7 $26,612)
. 137,916
41,914
55 : $6.7 million $7.1 million 1
, w*486\
9.9% I $993.00 i
31 years 1
Income Range: .' i
5G% to 100% of Median Less than 50% of Median
' 100% to 120% of Median 120% of 1Wo of Median
:I 19 . 30 ;
Employment Type: Professional , Managerial ' 1 Technical
1 Military Offleer
Skilled Labor Unskilled Labor White Collar. i . Gdvernment Admin.
TOTAL
23.7% Executive 14.3% Craftsman 11.4% Self-Employed ' 4.3% Sales Inside 2.9% Sales Outside 5.7% Retired 2.9% Other . 8.6%
, APPLICANT: CITY OF CARLSBAD CT 4143: March 9.1985 "---""- -- "
x/
2.8%
2.990 7.1%
1.4%
1.4%
2.0% :
5.7% I
i I -
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