HomeMy WebLinkAbout1995-08-08; City Council; 13268; AFFORDABLE HOUSING POLICY RECOMMENDATIONS+
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P 0 %TY OF CARLSBAD - AGEbA BILL
AN /<~?df TITLE: DEPT.
AFFORDABLE HOUSING POLICY
MTG. ekr RECOMMENDATIONS CITY I
DEPT. H/RED C1-w I
RECOMMENDED ACTION:
For City Council to receive information from staff on the status of affordable hous,
and related policy issues; and to adopt policies guiding future affordable hou:
implementation. (Council Policy No. 57)
ITEM EXPLANATION:
The Housing Element of the General Plan represents "a commitment by the City i
existing and future housing needs for all economic ranges". This document establ
goals and objectives and an extensive set of policies and programs to aid in the
Since the adoption of the Housing Element in 1991, numerous programs
implemented, including the City's lnclusionary Housing Ordinance in 1993. With
Element Annual Progress Report for 1994, the City Council received a status repor
50 programs contained in the document.
While implementation of the City's housing programs and policies has been succ
also raised questions as to the most appropriate and effective way to achieve the
This is particularly true with respect to implementation of the lnclusionary Housin
where this City has moved into new territory where there are few established guideli
goal of this item to review the status of the City's affordable housing effort and s1
from the City Council in several key areas.
The Affordable Housing Agenda attached as Exhibit I covers 1) a brief review
housing goals and programs, and 2) identification of several key affordable how
implementation issues. Draft policies or options will be included in connection with
These may be used to guide the City Council in its discussion and in taking action
The staff has developed the Affordable Housing Agenda with the expectation t
Council will consider the items over the course of two or more meetings.
FISCAL IMPACT:
Several of the policy issues and draft policy recommendations may have fi:
depending on the direction taken by the City Council. These potential impacts will t
in future reports related to the specific policies or programs being recommended.
EXHIBITS:
1. Affordable Housing Agenda
2. Summary of Housing Goals, Priorities and Programs
3. Status of City of Carlsbad Affordable Housing Projects and Programs
4. Draft Policy Entitled "Off-site and Combined lnclusionary Housing Projects" (PC
5. Draft Policy Entitled "Sale of Affordable Housing Credits" (future meeting)
6. Draft Policy Entitled "Financial Assistance Guidelines For Affordable Housing" (fut
7. lnclusionary Housing In-lieu Fee Options (future meeting)
1 E> 0 0
CITY COUNCIL AFFORDABLE HOUSING AGENDA
1. Review Housing Goals, Priorities & Programs (Michael Holzmiller & Evan Beckt
Presentation: Briefly review housing goals and priorities as they are CI
established in the Housing Element and HUD Consolidated Plan (forme
Comprehensive Housing Affordability Strategy or CHAS). Report on the status
affordable and market residential development; and specific affordable t-
programs. (See Exhibits 2 and 3).
Off-site vs. On-site satisfaction of inclusionary requirements. (Evan Beckt
(See Exhibit 4)
Presentation:
b
b
2. A.
Review of the "Combined Project" provision of the lnclusionary Ordr
Presentation of a proposed policy and procedure which will guide st,
City Council in determining the appropriateness of off-site pro1
including clarification of Planning Commission and Housing Comn
roles in processing.
Recommended Action: Adopt Policy Statement
Sale of La Terraza Affordable Housing Credits. (Jim Elliott & Evan Beckc
(See Exhibit 5)
B.
Presentation: Presentation of proposed policy and procedure which will
staff and City Council in selecting purchase proposals and establishing te
sale.
Recommended Action: Adopt Policy Statement.
C. Inclusionaw In-Lieu Fees. (Jim Elliott & Evan Becker)
(See Exhibit 6)
Presentation: Presentation of existing In-lieu Fee provisions and optic
amending.
Recommended Action: Direct staff to amend lnclusionary Housing Ordinz
3. Financial Assistance for Affordable Projects (Jim Elliott & Evan Becker)
(See Exhibit 7)
Presentation: Presentation of proposed guidelines for assisting affordable hc
projects
Recommended Action: Adopt Policy Statement
r I EXt 0 0
HOUSING GOALS, PRIORITIES AND PROGRAMS
0 The City's existing Housing Element was adopted in 1991. It was reconfirmec
part of the Comprehensive General Plan Update in 1994. The next st
mandated update of the Housing Element will occur in 1998.
0 The Housing Element contains numerous goals and objectives for promo
housing opportunities for all economic segments of the community. There arc
action programs identified in the Element which were designed to implement
goals and objectives.
0 In November of 1994, the City Council considered its first progress report
implementing the Housing Element.
completed 12 of the 51 action programs contained in the Element, 18 werl
progress of being completed and 20 were ongoing programs with no spe
beginning and ending date. The report also indicated that while no I
affordable, low income units had actually been produced, several affords
projects had been approved.
The report indicated that the City
0 The goals, objectives and implementing programs contained in the exis
Housing Element are substantially different from previous Housing Elements.
previous elements, the focus was on:
(1) Providing administrative and financial assistance to qualified person!
finding affordable housing units; and
On adopting "enabling" ordinances which would serve to encourage priv
developers to consider providing affordable units. As a result, very 1
newly-constructed affordable units were produced.
(2)
0 In the existing Housing Element, one of the focuses or priorities of the goals i
action programs is on producing affordable units primarily newly-construct
lower income units. The primary program for accomplishing this is
I ncl us ion ary Housing 0 rd in ance .
The Housing Element sets out a broad mix of programs that inch
homeownership and rental housing, and "targeting" to very low to moder
income households. Programs are also established for "special needs" such
seniors and the homeless. While the market responds well to moderate to w
income needs, the lower income housing need has not been adequately sen
by the market. This need is identified in the Housing Element and is emphasii
in terms of housing element programs and policies.
1
, I 0 0
a The lnclusionary Ordinance mandates that all new residential projects appro
by the City must produce lower income housing equivalent to 15% of the i
number of units being approved. This means that for every 100 new reside
units approved by the City, 15 lower income units must be produced. Under
lnclusionary Ordinance, no new future residential units can be approved in
City unless lower income housing is also produced.
. The lnclusionary Ordinance was adopted by the City Council in 1993. At
same time, the Council adopted several other ordinances to assist pri\
residential developers in meeting the 15% lnclusionary housing requirem
These include the Density Bonus Ordinance and the Standards Modifica
Ordinance. Also, the lnclusionary Ordinance includes provisions allowing sc
flexibility with respect to the basic mandate such as in-lieu fees for small projc
and the option of allowing the Council to approve providing lower income u
offsite from the approved project in what is called a "combined offsite projec
A num
of residential projects have been approved in compliance with the ordinance. (
offsite combined project (La Terraza) is under construction and others have bl
proposed. One of the primary purposes of today's City Council presentation i.
discuss how the lnclusionary Ordinance is working and where additional direcl
is needed to guide further implementation.
0 The lnclusionary Ordinance has been in effect for a couple of years.
2
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(I) e
Policy No. 57
CITY OF CARLSBAD Date Issued August
Effective Date Au~us t
Cancellation Date -
Supersedes No.
COUNCIL POLICY STATEMENT
General Subject: AFFORDABLE HOUSING
Specific Subject: Off-site and Combined
Inclus ionary Housing Projects
Copies to: City Council, City Manager, City Attorney, Department and Division Heads,
Employee Bulletin Boards, Press, File.
BACKGROUND
The City's Inclusionary Housing Ordinance (CMC Chapter 21.85) establishes certain requir
which residential developers must provide housing that is affordable to lower-income hoi
condition of project approval and permit issuance.
The Ordinance provides that inclusionary units "should be built on-site and, wherever reasona
be distributed throughout the project site. I' The Ordinance also Provides that "circumstances
in which the public interest would be served by allowing some or all of the inclusionary units as
one project site to be produced and operated at an alternative site or sites. VI This alternative
as a "Combined Inclusionary Housing Project" or "Combined Project". The Ordinance, 1
Combined Projects, states that "it is the exclusive prerogative of the final decision making au
City to determine whether or not it is in the public interest to authorize the residential sit(
Combined Inclusionary Housing Project. 'I
PURPOSE
It is the purpose of this policy to estabIish the criteria which will be utilized in order to make 1
finding that off-site satisfaction of an inclusionary housing requirement, when proposed through
Project, is in the public interest.
POLICY
The following criteria will be applied in order to make the necessary public interest finding.
is defined in terms of specific questions which, when affirmatively answered, would suppol
option:
Policy No. 57 CITY OF CAWBAD Date Issued Aupust
Effective Date AUWS t
Cancellation Date __
Supersedes No.
COUNCIL POLICY STATEMENT
General Subject: AFFORDABLE HOUSING
Specific Subject: Off-site and Combined
Inclusionary Housing Projects
Copies to: City Council, City Manager, City Attorney, Department and Division Heads,
Employee Bulletin Boards, Press, File.
1. Feasibility of the On-site Proposal.
b Are there significant feasibility issues due to factors such as project size, site COI
competition from multiple projects that make an on-site option impractical?
b Will an affordable housing product be difficult to integrate into the pro€
development because of significant price and product type disparity?
Does the on-site development entity lack the capacity to deliver the propose
housing on-site?
b
2. Relative AdvantagesiDisadvantaees of the Off-site Proposal
b Does the off-site option offer greater feasibility and cost effectiveness thar
alternative, particularly regarding potential local public assistance and when
City’s Affordable Housing Financial Assistance Policy.
Does the off-site proposal have location advantages over the on-site alternat
proximity to jobs, schools, transportation, services; less impact on otl
b
- developments, etc.?
b Does the off-site option offer a development entity with the camcity to deliver I
project ?
Does the off-site option satisfy multiple developer obligations that would be diffic
with multiple projects?
b
Page 2 of
Policy No. 57
CITY m CAWBAD Date Issued Augusi
Effective Date August
Cancellation Date __
Supersedes No. COUNCIL POLICY STATEMENT
General Subject: AFFORDABLE HOUSING
Specific Subject: Off-site and Combined
Inclusionary Housing Projects
Copies to: City Council, City Manager, City Attorney, Departmgnt and Division Heads,
Employee Bulletin Boards, Press, File.
3. Advancing Housing; Goals
b Does the off-site proposal advance and/or support City housing goals ant
expressed in the Housing Element, CHAS and Inclusionary Housing Ordinanc
It is likely that off-site proposals will involve "mixed" results with the application of the above
"public interest" finding shall be made when a Combined Project Review Committee made L
Manager, City Attorney, Community Development Director, Financial Management Direc
Director, Housing & Redevelopment Director, and the Mayor (ex-officio), reaches consensus t
substantially and affirmatively satisfies the above criteria and that this conclusion can be
documented through the use of a Combined/Off-site Project Evaluation Assessment Worksheet.
1)-
PROCEDURE
1. Projects with an inclusionary housing obligation will be processed according to the re(
the Inclusionary Housing Ordinance.
Project approvals must be conditioned with the option to propose an off-site method (i.c
Project) of satisfying the inclusionary obligation. A project proposing an off-site optioi
not also propose an on-site option.
Prior to final map or issuance of building permits, applicants must submit an Afford
Agreement as described in the Inclusionary Housing Ordinance which specifically desc
site proposal.
Off-site proposals in the form of a draft Affordable Housing Agreement will be rev
Combined Project Review Committee and it will be determined if the necessary finding:
by staff.
2.
3.
4.
Page 3 o
- -
Policy No. 57
CITY OF CARLSBAD Date Issued AUEUS
Effective Date AUKUS
Cancellation Date -
Supersedes No. COUNCIL POLICY STATEMENT
General Subject: AFFORDABLE HOUSING
Specific Subject: Off-site and Combined
Inclusionary Housing Projects
Copies to: City Council, City Manager, City Attorney, Department and Division Heads,
Employee Bulletin Boards, Press, File.
5. Staff's findings and recommendation, including the Combined/Off-site Project Asses:
Worksheet, will accompany the Affordable Housing Agreement to the Housing Comi
action.
Prior to final map or issuance of building permits, the proposed Affordable Housing
will be considered by City Council along with the recommendation of staff and Hous
Commission.
City Council will be the final decision making authority in determining whether an ol
proposal is in the public interest and permitting this option.
6.
7.
Page 4 of
ad OFF-SIT a D COMBINED INCLUSIONARY HO
ASSESSMENT WQRKSHEET
G PROJECT
1. A,pplicant Name and Address:
-oposed On-site Project Description (if any):
-0posed off-site Project Description:
zscription of On-site Project Constraints:
Attachment "1" to Council Policy Statement Nc
e there significant feasibility issues due to
tors such as project size, site constraints,
7ount and availability of required subsidy,
d competition from multiple projects that
3es the off-site option offer greater feasibility
id cost effectiveness than the on-site
regarding potential
2
act on other existing
with the capacity to deliver the proposed
dvancinq Housing Goals and Strategy
oes the off-sde proposal advance and/or
ipport City housing goals and policies
(pressed in the Housing Element, CHAS
rld lnclusionary Housing Ordinance?
DOES NOT SUPPORT SUPPOR
SUMMARY OFFSITE PROPOSAL INCONCLUSIVE PRC
3
Date Considered by Review Committee:
Review Committee Action:
Action:
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