HomeMy WebLinkAbout1993-09-21; City Council; 12403; ADOPTION OF INCLUSIONARY HOUSING IMPACT FEE, AND FORMULA FOR CALCULATING IMPACT FEEAB#- TITLE:
MTG. 9/21/93
DEPT. PLN
ADOPTION OF INCLUSIONARY HOUSING IMPACT
FEE, AND FORMULA FOR CALCULATING IMPACT FEE
DEI
CIT
CIT
.t
$P g
a %
g~
2
I- 0 4
Q -
5 2 3 0 0
f-I C~T~F CAWLSBAD - AGEN~) BILL
RECOMMENDED ACTION:
Hold a public hearing and ADOPT Resolution No, 93- ZGP? 9 s' the Inclusionary Housing Impact Fee, and formula for calculati
Impact Fee.
ITEM EXPLANATION
The Inclusionary Ordinance (ZCA 91-06) mandates that a minimum of all future residential units developed within the City sh resewed and affordable to lower-income households. Thi
inclusionary requirement shall apply to all new projects pro market-rate residential dwelling units.
Section 21.85.060 ofthe Inclusionary Ordinance specifies thatc classes of residential projects may satisfy lower-income inclus
requirements through the payment to the City of an Inclus Housing Impact Fee. Basically, the class of projects allowed the impact fee rather than constructing lower-income units or in-lieu fees are projects for which all approvals were received to the effective date of the Inclusionary Ordinance (tentati
final maps). All residential developers subject to Impact F
however have the option of constructing lower-income units to s their inclusionary requirements.
The recommendation to assess an inclusionary housing impact previously approved, yet unconstructed residential projects is upon the principle of requiring all future market rate resid development to bear responsibility for the provision of affc housing within the City. There currently exists approximatelq approved, yet unconstructed dwelling units within the City.
6,000 units represent approximately 1/5 of the remaining bL
capacity of the City. Without the participation of these pre\ approved residential projects, the City would not be able to 2 its affordable housing regional share objectives through builc
The formulas for calculating the dollar value of the Inclus
Housing Impact Fee are included on Exhibit 1121t. The dollar vi
average monthly rental costs for housing within the City Department of Housing and Urban Development Fair Market Rent S< for San Diego), and the maximum amount of money that a low in household can afford to pay for rent (U.S. Department of Hous. Urban Development Income Limits for the San Diego MSA). The weighted relative to demand for housing by bedroom size (take The dolla of the impact fee would be $2,925/unit (see Exhibit Ir3It) e d dollar value, each fee would provide 15 percent of the rental s
the fee would be determined by calculating the difference betwt
City's existing Section 8 Certificate waiting list).
ai 1 0 0
PAGE 2 OF AGENDA BILL NO. 12, q 0'3
needed for a lower-income household to afford the market-rate re a typical existing apartment within the City for a period of 30 y If all 6,000 previously approved, yet unconstructed units withi
city were assessed this fee, a total of 17.5 million dollars wou generated,
The value of this impact fee would be recalculated yearly based
revised: (1) HUD Fair Market Rent Schedules; (2) HUD Income Limit the San Diego Region; and (3) demand for different sized units
the City's Section 8 waiting list.
Consistent with the formulas included on Exhibit r121r, the dollar
of the Inclusionary Housing Impact Fee would be adjusted yearly 3 city Council.
The Inclusionary Housing Impact Fees would be paid to the City z time of building permit issuance. All Impact Fees would be depc in a Housing Trust Fund and used by the City to provide ft assistance for the provision of affordable housing.
FISCAL IMPACT
There will be costs to the City associated with the administrat:
the Inclusionary Housing Impact Fees through the Housing Trust Accordingly, staff is recommending that a portion of the Impact collected be allocated for City Impact Fee administrative serv
EXHIBITS
1. City Council Resolution No. 93- 269
2. Exhibit r12r1, Inclusionary Housing Impact Fee Formulas
3. Exhibit rr3*r, Inputs to Impact Fee Formula Variables
1, ri ,
L-
1
2
3
4
5
6
7
8
g
10
11
12
13
14
15
16
1'7
18
19
20
21
22
23
24
25
26
27
28
cnn 0 e
RESOLUTION NO. 93-269
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA ESTABLISHING
AN INCLUSIONARY HOUSING IMPACT FEE AND FORMULA FOR CALCULATING THE IMPACT FEE
WHEREAS, the City of Carlsbad has adopted
Inclusionary Housing Ordinance in order to enable the achieve
of it's Regional Share housing objectives for lower-income
moderate-income units; and
WHEREAS, the Inclusionary Housing Ordinance man(
that a minimum of fifteen percent (15%) of all residential 1
in any master plan, specific plan or residential subdivisic
reserved and affordable to lower-income households; and
WHEREAS, the Inclusionary Housing Ordinance spec
that all residential market rate dwelling units resulting fro
construction of rental or for-sale units shall be subjec
inclusionary requirements; and
WHEREAS, based upon a comprehensive strategy formu
to address the City's affordable housing needs over the sh
mid-, and long-term buildout of *he City, specific Inclusi
requirements (i.e.: construction of affordable units, payme
in-lieu fees or payment of inclusionary housing impact fees)
been identified for various classes of residential projects
WHEREAS, in order to be consistent with the Hc
Element of the General Plan and the Inclusionary Hc
Ordinance, the following classes of residential projects shz
eligible to satisfy Inclusionary housing requirements for
income households through the payment to the City (
Inclusionary Housing Impact Fee:
(1) Residential projects, of any size, establ.
individual lots or dwelling units (i.e.; tentative maps, ten
I
1, <
k-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
l8
19
20
21
22
23
24
25
26
27
28
0 0
maps for the conversion of apartments to air-space condomini
parcel maps, planned unit developments, site development pl
conditional use permits, residential mobile home park permits
redevelopment permits), for which the application was accepted
deemed complete prior to the effective date of the Inclusic
Ordinance;
(2) Single family residential projects, (j
tentative maps and parcel maps) of any size, for which
discretionary approvals, except site development plans,
granted on or before the effective date of the Inclusic
Ordinance and site development plans are subsequently requirc
a condition of the prior approval, and are approved after
effective date of the Inclusionary Ordinance;
(3) A residential tentative map or parcel map revii
of any size, including a tentative map revision for the conve
of apartments to air-space condominiums, for which the applic
is deemed complete prior to the effective date of the Inclusi
Ordinance, and is approved on, before or after the effective
of the Inclusionary Ordinance;
(4) Any residential tentative map or parcel ma
which the application is deemed complete prior to the effc
date of the Inclusionary Ordinance, which is approved on, k
or after the effective date of the Inclusionary Ordinance, i
subsequently approved for extension on, before or afte
effective date of the Inclusionary Ordinance;
(5) Any residential planned unit development,
development plan, conditional use permit, residential mobil
park permit, or redevelopment permit, for which the applicat
2
I t
I-
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
3.6
I"7
18
19
2o
21
22
23
24
25
26
27
28
a 0
deemed complete prior to the effective date of the Inclusil
Ordinance, which is approved on, before or after the effe
date of the Inclusionary Ordinance, and is subsequently app
for amendment on, before or after the effective date oj
Inclusionary Ordinance: and
WHEREAS, the impact fee to be paid for each market
dwelling unit would be equal to fifteen percent (15%) o
subsidy required to make affordable to a lower-income hous
the market-rate rent at a typical existing apartment for a 1
of thirty (30) years: and
WHEREAS, this subsidy would be based upon the (
determination of the average subsidy that would be requir
make affordable, rents for typical one-, two-, three-, and
bedroom apartments: and
WHEREAS, the average subsidy shall be weighted fc
actual demand for housing, by number of bedrooms, as determi
the applications for lower-income affordable housing qualifi
approved by the City; and
WHEREAS, the formula for calculating the dollar va
the Inclusionary Housing Impact Fee is included on Exhibi
and
WHEREAS, based upon this formula, and the c
estimates of the variables contained therein, the dollar vz
the Inclusionary Housing Impact Fee would be $2,925.00 for
year 1993-1994 (see Exhibit tt3t1); and
WHEREAS, the Inclusionary Housing Impact Fee wc
assessed against all approved, but unbuilt market rate resic
units subject to this fee: and
3
t-
,, )j
1
2
I
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
0 0
WHEREAS, the Inclusionary Housing Impact Fee wou
required to be paid to the City, as an individual fee, on
market-rate dwelling unit basis at the time of building 1
issuance, or prior to the recordation of final map and/or iss
of certificate of compliance for conversions of ex:
apartments to airspace condominiums; and
WHEREAS, consistent with the formula included on E>
"2*', the dollar value of the Inclusionary Housing Impact Fee
be adjusted yearly by resolution of the City Council; and
WHEREAS, the Inclusionary Housing Impact Fee(s) p
the City would be deposited in a Housing Trust Fund and USI
the purpose of providing funding assistance for the provis:
affordable housing and reasonable costs of administration.
NOW, THEREFORE, BE IT RESOLVED by the City Counc
the City of Carlsbad as follows:
111- That the methad far calculating the dollar va
the Inclusionary Housing Impact Fee, established by Municipa
Title 21, Section 21.85.060 Inclusionary Housing Impact Fee,
be by the formula shown on Exhibit 1t2'1, a copy of which is a
and made a part hereto; and
2. That the input values for the variables contai
the formula given in Exhibit tt2t1 shall be, and the res
Inclusionary Housing Impact Fee shall be, as shown in Exhibj
a copy of which is affixed and made a part hereto: and
3. The formula, input values, and fee shall
effective 60 days after the adoption of this resolution; E ...
4
3
7, b *
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
l7
18
19
20
21
22
23
24
25
26
27
28
e 0
4. That the input values for the variables of the for
and the Impact Fee would be updated annually by resolution oJ
City Council e )I
PASSED, APPROVED AND ADOPTED at a regular me6
of the City Council of the City of Carlsbad, California, on
21st day of SEPTEMBER , 1993, by the following votc
wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard
NOES : Council Member Finnila
ABSENT: None
ABSTAIN :
ATTEST:
ALk m<TE*brk
(SEAL)
5
1 4 E 0 0
INCLUSIONARY HOUSING IMPACT FEE FORMULAS
1. F = T (S, + S3 + S4 + S,) E
F = Dollar Value of Inclusionary Housing Impact Fee.
T
s2 = Annual Rental Subsidy Required for a 2 Person Low Incc
= Unit Tenure of Affordability = 360 months (30 years).
Household.
s3 = Annual Rental Subsidy Required for a 3 Person Low Incc
Household.
Annual Rental Subsidy Required for a 4 Person Low Incc
Household. s4 =
s5 = Annual Rental Subsidy Required for a 5 Person Low tnci
Household.
E = 15% Inclusionary Requirement = .15
2. s, = H, (R, -1,)
s3 = H, (&-I31
s4 = H3(R3-74)
SS = H4 (R4 - 1,)
H* = Percent of Total Households on Carlsbad’s Section 8 Waiting
Eligible for a 1 Bedroom unit.
Percent of Total Households on Carlsbad’s Section 8 Waitin1
Eligible for a 2 Bedroom Unit.
Percent of Total Households on Carlsbad’s Section 8 Waitin2
H, =
H, = Eligible €or a 3 Bedroom Unit,
H4 = Percent of Total Households on Carlsbad’s Section 8 Waitinj
Eligible for a 4 Bedroom Unit.
Average Monthly Rental Rate in Carlsbad for a 1 Bedroom Apar
(HUD) Fair Market Rents for the San Diego MSA).
= 4
I .4 a 0
& = Average Monthly Rental Rate in Carlsbad for a 2 Bedroom Apartm
(HUD) Fah Market Rents for the San Diego MSA).
Average Monthly Rental Rate in Carlsbad for a 3 Bedroom Apartm
(HUD Fair Market Rents for the San Diego MSA).
Average Monthly Rental Rate in Carlsbad for a 4 Bedroom Apartn
(HUD Fair Market Rents for the San Diego MSA).
R3 =
R4 =
12 = Monthly Rental Income Available for a 2 Person Low Incc
Household (HUD Income Limits for the San Diego MSA).
Monthly Rental Income Available for 3 Person Low Income House1
(HUD Income Limits for the San Diego MSA).
Monthly Rental Income Available for a 4 Person Low Inc
Household (HUD Income Limits for the San Diego MSA).
Monthly Rental Income Available for a 5 Person Low Inc
Household (HUD Income Limits for the San Diego MSA).
13 =
= I4
15 =
-2-
.-
* k EXHIE
L 0 0
:r INPUTS TO IMPACT FEE FORMULA VARIABLES
FORMULA - P
S = H (R-I)
S = Rental Subsidy Required by Household Size.
H = 940 of Total Households on Carlsbad's Section 8 Waiting List Eligible fo
Bedroom (33%), 2 Bedroom (32%), 3 Bedroom (28%) or 4 Bedroom (7
units.
Average Monthly Rent in Carlsbad for a 1 Bedroom ($556), 2 Bedro
($695), 3 Bedroom ($966) and 4 Bedroom ($1139) Apartment (HUD E
Market Rents for the San Diego Region - 1993).
Monthly Rental Income Available for a Low Income Household of 2 Pen
($673), 3 Persons ($746), 4 Persons ($834) and 5 Persons ($893) (I-
Income Limits for the San Diego MSA - 1993).
R =
I =
- - .33 ($556 - $673) - - - $38.61*
- - -32 ($695 - $746) - - - $16.32"
- - .28 ($966 - $834) -
- - .07 ($1139 - $893) -
s2
s3
s4
SS
$36.96
$1 7.22
-
-
FORMULA - 2
F
F = Dollar Value of Inclusionary Housing Impact Fee.
T = Unit Tenure of Availability = 360Months
E = 15% Inclusionary Requirement = S5
= T (S, + S, + S, + S,) E
360 ($.O + $.O + $36.96 + $17.22) .15
F = $2925.72.
= $2925.72
* Any rental subsidy which is lessthan or equal to $0 shall be equal to $0.
1 .(&/ST c-
L 'Jv ,a -, 0 qI "$/ Seprernber 20,1993
F-E D E R AT I
TO:
FR
RE:
Honorable Mayor hwis and Councilmembers
John Seymour, Construction Industry Federation
Inclusionary Housing Fees - September 21,1993 - Public hearing
On September 2 1, your City Council will consider a proposal to enact another 1, fees to an already over burdensome, costly development process. Generally, th(
proposed fees come in two flavors: $2,925 per home for applicants with approv
and $12,000 per home for applicants with six or less units. Applicants with sev
more units must directly construct the "inclusionary" units per the City's rnm
We are gravely concerned about the proposed fees in three specific areas:
A. City's legal authority to impose new conditions on approved maps;
B City's lack of legal NEXUS. There is no legal basis upon which to rnandatf
middle-income home buyers must subsidize lower-income units;
C. Adding new siaficant fees on the business community and industry given
adverse economic climate; and
D. Adding a new costly, over burdensome process to the City's bureaucracy di impacting the business community and industry when the STATE DOES pl
MANDATE SUCH A PROGRAM.
RECOMMENDATIONS:
1. Do not adopt the proposed $12,000 and $2,925 fees:
2. Tentative and final maps already approved should not be conditioned with
hclusionary Housing requimnents and/or fees;
3. Direct city staff to return to the Council with a revised Inclusionary Housi~
to reflect two key policy decisions:
a. Guarantee that all "gap" costs must be offset by city incentives, as
from non-profit groups and other city/state/federal funding. If thc
cannot be made, the project should be exempt from Inclusioar
Housing requirements. The middle-income family I market rate
buyers shuuld mt have to pay a subsidy to cover the gap of the 10
unit. To place this burden on the new middle income is an unfair
, “,4” 7 1Cn 0 a
Page 2
September 20.1993
TAX”. This HIDDEN TAX is reflected in higher monthly mortgage
payments!
b. The City must be flextbk, reasonable and realistic. The City shoi
become a partner in producing affordable housing. The City shoutc
mandate inclusionary housing. Rather, the city &odd review -
case - projects which an realisticdty achieve inchdonary unit
may only be able to achieve 7%. Some only 10%. For example, hvl
builders (Hillman and Fieldstone) are receiving city assistance. Yet
example is Presley Development in San Marcos. San Marcos has pi
Presley with Eexcd - a non-profit agency - which was able to ge
credits and other bonding to secure affordable units. Tkse are projc
where inclusionary Units could be produced, but take an exuaordk
amount of city/state/federal and non-profit assistance.
4. Direct Staff to revise the Inclusionary Program to exempt pro&c!is of 7 unj
iess from all inclusionary requirements. This will heip the small Mom 8
businesses and stop the notion of adding $12,OOO per unit.
5. “Help Make Housing More Affordable by Increasing Incomes and Lowerin
NOT IMPSU’DATZNG MORE RULES, FEES AND REGULATTONS! See
SANDAG document for the Regional Growth Management Strategy.
DISCUSSION
1. Carlsbad’s Inclusionary Housing Program will meet about 4% of the total
need of lower-income housing. This will h.& some families. Bur ut the : hrrrt hundreds of more families by mandating that they pay for the shis
every $1,000 added to the cost of a home, this results in disqualifying ovt
families from being able to Hord that home.
California’s unemployment rate is now % - why , why, why, are we
thinking about adding new fees and regulations to indurtry and busines
been decimated! San Diego’s unemployment rate is at a- a 10-yea
If fnclusionary is adopted, the Carlsbad will be at a business retention / i
disadvmage with other adjacent cities. Vista, Escondido, Poway, En&
$an Matcos do not have Inclusionary Ordinances. Oceanside’s ordinanc
working and there are grurnblings about repeal of the ordinance.
The business community and other job producing sectors && need add
taxes placed on them!
Lt.
111.
W. regulatory burdens placed on fiern; and they @&t need additional &=lie
September 20,1993
a 0 - 4 ’ ,&I ., ‘, y Y
-- &---
.. .-
..
... -.., ............ ,. ’,::,&.’-.% ..”.. :. :’ ..... ... %’.*_. .. .... ......
I. .
(1 -, . - -
n a
*
8. - , w w
n
c6 W *
TI-
SANrn6' o , rc ,.de & 't,
3. Eefp Make Housing More Affordable by Increasing Incomes and Lowering Costs
Discussion
Affordable housing is a fimdmental detehnant of a family's quality of life. And this region has a
shortage of eordable housing Even with the recent declines in housing values, most people still
cmot afford to buy a house in the region. For example, in April 1993, a median-priced detached
home in Sm Diego costs $178,000. With a $17,800 down payment, this price would require an
income of $66,000 per year, fifty percent more than €RID'S 1993 estimated regional median
income of approximately $44,000. Furthermore, tfie 'maximum "affordable" home price a
household with an income of $44,000 can afford is about $119,000. Not surprisingly, the
proportion of the regon's households living in owner occupied units fell between 1980 and 1990.
Homeowners now make up about 54% of the total. The San Diego region currently ranks fourth
lowest in this measure of economic health among SO U. S. metropolitan areas. Home ownership
could continue to decline and fall below 50% of the total occupied residences during the next 1s
years.
The high cost of housing also has economic consequences. It affects business location decisions
and wage rates. SNAG reviewed several surveys of business location decision makers as part
-of the research conducted for ?his Economic Prosperity Strategy. The surveys revealed tha
"quality of life" factors are important considerations in selecting sites for new or expandel
businesses. In two of the national surveys, for example, housing affordability was ranked as tk
second most important quality of life criterion. In other words business people understand th
the well-being of their enterprises is directly related to other aspects of the local economy.
The region must do more than merely coexist with or complain about high housing costs, 2
Iocal governments should not confine the issue to state-required general plan housing elernex
The business surveys suggest that housing affordability is an integral part of the region's emno
This is an important point: We should define housing affordability as an economic proble
rather than as simply a "housing" problem or a "land use" problem.
24
- 4 fli(* y 'r L 1) 0
This strategy for economic prosperity focuses on increasing family income, thus giving the
region's residents more home purchasing power. But we should lower housing costs as we1
Housing costs are determined by many &tors. Some of these factors, such as materials and
financing costs, cannot be controlled entirely through local action. Other factors can be
controlled or influenced tocaily. These include land prices, the types of housing biiilt, and fees
and regulations.
Land Prices
Twenty years ago, the focal nik'of thumb was that land costs represented 20-25% of the price of
a new house. That figure is higher now. Since 1970, the cost of deveioped and developable land
has probably risen as much as, or more than, any other item, product or service in this regior
(with the possibfe exception of health care). For many people, real estate investment and
speculation are a way of life. Despite its boom and bust nature (currently, bust), they see rea
estate profits as the best way to augment stagnant working incomes. Houses are investment
rather than sheher.
Large vacant parcels suitable for development often are sold more than once as they progre3
through planning, design, and construction. The prices, sf course, are higher each step dong th
way.
Real estate speculation will continue in the region. Nevertheless, local governments can redu
its effects on home prices by improving some aspects of land use regulation.
Building Mousing to Suh the Market
The region's residential builders and local govemments should focus on housing needs oft
communities and neighborhoods within cities to produce rnwe affordable market rate housir
The City of San Diego successllly used this kind of focused approach to create more single ro
occupancy (SRO) hotels for generally low-income residents in downtown San Diego. it sho
be adaptable to other communkies as well.
25
0 0 -ih,J* b 5,
The first step in this kind of program is to acknowledge housing supply problems where they ei
1 in local areas: in communities and neighborhoods. Mousing elements of local general pla-
document housing needs city or countywide. However, housing demands in neighborhoods 81
communities often vary significantly from the citywide market.
Next, the local area-market should be analyzed to identify family status, ages of Iiouseholde
incomes and other demographic and economic factors useful in determining housing affordabil
. criteria and prefererices. Such surveys will likely require substantial original research rather'tl
reliance only on secondary data sources. The purpose of the surveys is to document for reside]
builders and lenders the reat housing needs of the' comunity(s).
Third, local govenunent, residential builders, and other interested parties should sponsor bou!
design exhibitions to illustrate the types of units that best meet the local market needs. This I
gives local residents and prospective builders a better idea of how new housing wilI fit into
existing community.
Finally, local govenunent should identify the building, zoning and other development costs
should be changed to accommodate the types of housing needed in the community. This st
important because the market analysis and the design exhibition could identie the inapplica
of some citywide development regulations to specific community or neighborhood conditions
Fees aid Rermlation
Today, there is a fee for nearly every service associated with land development. These kir
fees are intended to pay the costs of nitigating the impacts of new construction. Schoo
special districts, as well as cities and the County, charge them. In some communities total f;
a new house can cost as much as $25,000.
Development fees are imposed in California communities primarily because Propositi
reduced local government's access to the property tax as a. means of paying for
26
e
- sk p k '. 0
improvements- Development fees are, in fact, companjons 10 Prop 13: ~0th charge the hol
buyer a premium io enter or "move up" imhe state's housing market
Fees are not likely to be reduced, but fee collection can be consoIidated by action of the agenci
charging them. Consolidation of fee coIlection would be consistent with the current efforts t
local agencies to "streamline" their regulatory procedures.
Developers and other: businesses want "certainty" in the regulatory process. Land developer
have faced a series of environmental regulations over the past ten years. Each regulation ha
reduced the amount of developable land available to them. .
Now, habitat conservation planning (mentioned in the section on federal and state regulation) is
likely to further restrict the supply of available land.
The current emphasis of the Regional Growth Management Strategy is to find a balance among:
* the iikeIy addition, according to the Series 8 Growth Forecast, of more than a
million people to the region's population by 20 15;
* an Economic Prosperity Strategy that adds more high value-added jobs to the
region's economy;
* federal and state guidelines to preserve habitats for "endangered" or "threatened"
plants and animals; and
* local general plans that designate finite amounts of Iand for new or redevelopment.
Analysis thus far has shown that the region has enough - more than enough - land reserved for
new employment sites through at least 2015. However, land for single and multiple family
housing at urban densities will be in short supply after 2000.
The local jurisdictions should ensure, through the conservation plans and the Series 8 Regional
Growth Forecasts, that their general plans designate enough developable land to accommodate
27 *
- a<'.%' * *. e e -.
the forecasted population and employment. This issue will be a key element of the Regio
Orowth Management Strategy.
28
-"N I ((-1, 0 0
.P*gh FIELDSTONE -62% cy LA COSTA
September 21, 1993
Mayor Claude E. Lewis Mayor Pro Tem Margaret Stanton
Councilmember Ann Kulchin
Councilmember Julieanne Nygaard
Councilmember Ramona Finnila
City of Carlsbad
1200 Carlsbad Village Drive Carlsbad, California 92008
Re ; September 21, 1993 Meeting
Items on Housing In-Lieu Fee & Impact Fee
Dear Mayor and Councilmembers:
This evening you will consider the imposition of two new irnpac fees on new residential development in the City of Carlsbad. Tk proposed in-lieu fee is $12,000 per unit; the impact fee is $29; per unit.
We have commented upon the City's inclusionary housing requiremen. and implementing provisions thereof since at least summer, 199
both by way of public testimony and written correspondence. Whi acknowledging the need for varieties of housing to accommodate a
citizens of the City, we have consistently questioned the City
single-minded action in assessing 100% of the responsibility new, residential development, and renew that objection with rega to any action to implement these fees.
In past correspondence and public testimony, we have attempted
show that the City's actions lack the appropriate and legal
required showing of the "nexus," or cause-effect relations1 between the need for affordable housing and the demand for
created through new, residential development. We have expressed opinion that approximately 90% of the City's affordable hous need is the result of past inactivity. It is not our intent again debate this issue as we recognize there is a difference legal interpretation on this issue.
However, our previous discussions of this issue did lead to s understandings with staff concerning the equity of assessing appropriate share by way of a fee on new, non-resident development, and the requirement as stated in Program 4.1 of Housing Element to conduct a nexus study for the City of Carl: as opposed to continued reliance in total on the SANDAG documer We have previously submitted information that a documented linI fee for the City of San Diego would range from $27.59 per squi
P 0 BOX 'IOOO-?hh + C~I I\hd. CA 920 I h + 6 19-93 1-87-17 + FAX b 19-93 I - 1946
, e 0 4 .,",
?aye 2
Mayor Lewis and Councilmembers September 21, 1993
foot for retail use to $2.65 per square foot for warehouse use
(See -r letter to Michael Holzmiller dated October 30, 1992.
Therefore, it appears that the impact of non-residentia: development is significant.
In addition, we believe staff also recognized that Cit participation was going to be an essential component of an successful program and that a Housing Trust Fund with define programs would be established so that the person paying the fe
would at least know where the money was going.
It was our understanding that all three of these items were to 2: moved forward by June of 1993.
However, it is now September, 1993, and what is before the Counc:
is the adoption of additional impact fees on new residentii
development, without the accompanying programs which add SOI
equity to the situation.
Since the inclusionary housing program was first specifical discussed as part of the revised Housing Element in 1991, t
economic condition of development in Carlsbad as well as all of S
Diego County has seriously declined. have observed other jurisdictions recognizing this factor wk considering housing programs. act; others have adopted fees far below the exact 100% ''ga figure; and still others continue to study the problem. Given tk.
the proposed fees before you, if adopted, together with t contemplated Rancho Santa Fe Road 'lpre-pay" add $2S,OOO to the j burden on each house in Zone 11, we question the wisdom of impos:
these fees at this time. We believe it makes an already diffici
task of obtaining financing impossible in today's market.
We strongly urge the Council to continue any action on these it until staff has fulfilled its representations to the resident development community to bring in non-residential development to adopt specific programs to which these future fees dedicated.
Sincerely,
This is not news to you.
Some jurisdictions have declined
&
/--
Mb,, --r-. l, /&!2&g
f \p
Q
/ --
DOUG AVIS
L' DA: rab 0, )p+yc
&\ f 4, c 0 e
Page 3 Mayor Lewis and Councilmembers
September 21, 1993
cc: Mike Stewart, The Fieldstone Company
Ray Patchett, City Manager Ron Ball, City Attorney
Marty Orenyak, Community Development Director
Michael Holzmiller, Planning Director Chris DeCerbo, Planner Evan Becker, Housing & Redevelopment Director
-I $# .*
carlsbad CUN
Decreed A Legal Newspaper by the Superior Court of San Diego County
Mail all correspondence regarding public notice advertising to
W.C.C.N. Inc. 2841 Loker Ave. East, Carlsbad, CA 92008 (619) 431-4854
Proof of Publication
STATE OF CALIFORNIA, ss.
COUNTY OF !?AN 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 I
I am principal clerk of the printer of the Carlsbad Sun, a newspaper of general circulatior
published weekly in the City of Carlsbad, County of San Diego, State of California, and which
is published for the dissemination of local news and intelligence of a general character, and whi
per at all times herein mentioned had and still has a bona fide subscription list of paying subs
which newspaper has been established, printed and published at regular intervals in the s
Carlsbad, County of San Diego, State of California, for a period exceeding one
preceding the date of publics
NOTICE IS HEREBY GIVEN that the City Council of the City of
Carlsbad will hold a public hearing at the City Council Chambers, 1200 Carlslbad Village Drive, Carlsbad, California, at 6:OO P.M. on
Tuesday, September 21,1993, to consider the adoption af an Inelu-
If you have any questions regarding this matter, please call Chris
DeCerbo, in the Planning Department, at 438-1161, extension 4445.
Applicant: City of Carlsbad
CARLSBAD CITY COUNCIL
L 0 0 - I. ',f 7
NOTICE OF PUBLIC HEARING
INCLUSIONARY HOUSING IMPACT FEE
NOTICE IS HEREBY GIVEN that the City Council of the City of Carlsbad will hc a public hearing at the City Council Chambers, 1200 Carlsbad Village Drip
Carlsbad, California, at 6:OO P.M., on Tuesday, September 21, 1993, to consir the adoption of an Inclusionary Housing Impact Fee, and Formula for calculati the Impact Fee.
If you have any questions regarding this matter, please call Chris DeCerbo, the Planning Department, at 438-1161, extension 4445.
If you challenge the adoption and/or calculation of the Inclusionary Hous- Impact Fee in court, you may be limited to raising only those issues raised you or someone else at the public hearing described in this notice or in writ" correspondence delivered to the City of Carlsbad City Clerk's Office at, or pr to, the public hearing.
APPLICANT: City of Carlsbad PUBLISH : September 9, 1993 CARLSBAD CITY COUNCIL
t a 0 .i (3 ?
1
(Form A)
TO: CITY CLERK'S OFFICE
FROM: PLANNING DEPARTMENT
RE! PUBLIC HEARINC REQUEST
Attached are the materials necessary for you to notice
ADOPTION OF INCLUSIONARY HOUSING IMPACT FEE, AND FORMULE
"1'
1 --.
for a public hearing before the City Council.
Please notice the item for the council meeting of /.'
f
Thank you.
MARTY ORENYAK 2 I19 19:
Assistant City Manager Oat
* !? -,* @I K
*I’ 0 NOTICE OF PUBLIC HEARIN
NOTICE IS HEREBY GIVEN that the City Council of the City of Carlsbad will hold a pu
hearing at the Council Chambers, 1200 Carlsbad Village Drive, Carlsbad, California, at 6
PM., on Tuesday, , 1993, to consider the adoption of an Inclusior
Housing Impact Fee, and Formula for calculating the Impact Fee.
Those persons wishing to speak on this proposal are cordially invited to attend the pu
hearing. Copies of the agenda bill will be available on and after
If you have any questions, please call Chris DeCerbo in the Planning Department at L
1161, ext. 4445.
If you challenge the adoption of these Impact Fees in COW, you may be limited to rai:
only those issues you or someone else raised at the public hearing described in this nc
or in written correspondence delivered to the City of Carlsbad at or prior to the pr
hearing.
CASENAME: INCLUSIONARY HOUSING IMPACT FEE, AND FORMULA 1
CALCULATING IMPACT FEE
PUBLISH:
CARLSBAD SUN:
BLADE CITIZEN:
CITY OF CARLSBAD
CITY COUNCIL
- ";bjl T.>f *e rw e a
. i).
_,I
.__- - - -1 -
GARLSBAD CITY GQUGdGiL APPLICANT Ciiy 54 Carisbad PUBLISH: September 9,1993
/@
/bj2J?&/
+!& r ;73j.j
13 "A4 /y-A&-#r-
k/ y