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HomeMy WebLinkAbout1995-09-26; City Council; 13321; AUTHORIZE THE SUBMITTAL OF THE CITY OF CARLSBAD'S COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) ANNUAL PERFORMANCE REPORT TO HOUSING AND URBAN DEVELOPMENT (HUD)c /v 0 x k CITY OF CARLSBAD - AGENDA BILL 0 c RECOMMENDED ACTION: r; / AUTHORIZING the Housing and Redev "1 p 4 33 Adopt Resolution No. 12- Director to submit the City of Carlsbad's Draft Comprehensive Housing Affordability (CHAS) Annual Performance Report for Fiscal Year 1994-95 for the Community Dev Block Grant Program to the U.S. Department of Housing and Urban Development { review and approval. ITEM EXPLANATION: The City of Carlsbad's Draft Comprehensive Housing Affordability Strategy (CHA' Performance Report for Fiscal Year 1994-95 has been prepared to meet the requirl the Federal Community Development Block Grant (CDBG) Program. The City of Carlsbad has an approved CHAS for the five-year period beginning C I993 to September 30, 1998 and a CHAS Annual Plan for Fiscal Year 1994-95. of the five-year period of the CHAS, a one-year CHAS plan and an annual performai for the ending fiscal year must be submitted to the U.S. Department of Housing E Development (HUD) for review and approval. The purpose of the CHAS Annual Pel Report is to: 1) report on progress in carrying out the CHAS Annual Plan; and 2) c City's annual performance in relationship to meeting the City's overall five-year pric The City's CHAS Annual Performance Report for Fiscal Year 1994-95 has been prt submission to HUD. In order to remain eligible for CDBG funding in fiscal year 192 City of Carlsbad must submit the CHAS Annual Performance Report by September Regulations for this CHAS Annual Performance Report require a thirty (30) day put and comment period. The "public review and comment" period for the CHI Performance Report was initiated on August 26, 1995. Comments were accepted pm on September 27, 1995. Upon receipt of verbal and/or written comments from during such period, the CHAS Annual Performance Report will be revised to include i of comments received as a result of the public participation process prior to sub HUD for review and approval. The Draft CHAS Annual Performance Report for Fiscal Year 1994-95 was preser e c Page 2 of Agenda BRo. '3; ? 2- I - beginning October 1, 1993 to September 30, 1998. On May 16, 1995, City Counci the City's Consolidated Plan covering the period beginning July I, 1995 to June The five year Consolidated Plan replaces the previously approved CHAS. FISCAL IMPACT: With an approved CHAS Annual Performance Report, the City is eligible to receive CI during fiscal year 1995-96. EXHl BITS: 1. Resolution No. 1 J--[2?3 authorizing the Housing and Redevelopment C submit the City of Carlsbad's CHAS Annual Performance Report for Fiscal Yea for the Community Development Block Grant Program to the U.S. Department ( and Urban Development. 2. City of Carlsbad CHAS Annual Performance Report for Fiscal Year 1994-95 (or City Clerk's Office). 0 C' c -t c 0 0 RESOLUTION NO. 95-273 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE SUBMITTAL OF THE COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY ANNUAL PERFORMANCE REPORT FOR FISCAL YEAR 1994-95 TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the City of Carlsbad is a recipient of federal Community Develc Block Grant (CDBG) funds; WHEREAS, the City of Carlsbad, California has prepared the Comprehensive H Affordability Strategy (CHAS) Annual Performance Report for Fiscal Year 1 994-95 City's Community Development Block Grant (CDBG) program; WHEREAS, the Housing Commission of the City of Carlsbad, California, at a hearing held on September 21, 1995, recommended the submittal of the Compreh Housing Affordability Strategy (CHAS) Annual Performance Report for Fiscal Year 1: to the U.S. Department of Housing and Urban Development; and WHEREAS, the City of Carlsbad is committed to continuing to provide low4 housing in the City as is outlined in the Housing Element of the General Plan and Comprehensive Housing Affordability Strategy (CHAS), a five year plan to increase a housing, which is required by HUD; NOW, THEREFORE BE IT HEREBY RESOLVED by the City Council of the Carlsbad, California, as follows: 1. 2. The above recitations are true and correct. The City Council hereby approves the submittal of the Comprehensive H Affordability Strategy Annual Performance Report for Fiscal Year 199d the U.S. Department of Housing and Urban Development. The City Council hereby authorizes the Housing and Redevelopment C to execute documents required for the submittal of said Document. 3. c .. 1 * 3 4 5 6 7 8 9 10 0 W PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad Council, held on the 26th day of September, 1995, by the following vote tc AYES: Council Members Lewis, Nygaard, Kulchin, Finnila, Hall NOES: None ABSENT: None ABSTAIN: None l1 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTEST: - ALETHA L. RAUTENKRANZ, City Clerk \ (SEAL) -2- - EXHI 0 0 - COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY ANNUAL PERFORMANCE REPORT OCTOBER 1994 to SEPTEMBER 1995 d< CITY OF CARLSBAD HOUSING AND REDEVELOPMENT DEPARTMENT - 0 e - THE CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) ANNUAL PERFORMANCE REPORT OCTOBER 1994 to SEPTEMBER 1995 PREPARED BY THE HOUSING AND REDEVELOPMENT DEPARTMENT CITY OF CARLSBAD 1200 CARLSBAD VILLAGE DRIVE CARLSBAD CALIFORNIA 92008 (61 9) 434-281 1 -. . . Y. Vc-..-VY..I - COWEHENSIVE HOUSING AFFORDaITY STRATEGY (CHAS] - PART 1. ANNUAL PERFORMANCE c A. The following sources of funds were available during Fiscal Year (FY) 1994-95 for the purpose of providing affordable and supportive housing activities to lower anc moderate-income households: Resources Made Available Within the Jurisdiction 1. Communitv DeveloDment Block Grant Program Community Development Block Grant (CDBG) funds are received from the U.S. Department of Housing and Urban Development on an annual basis. The City of Carlsbad was entitled to receive $558,000 in new CDBG funds. For FY 1994-95, $86,740 (1 6 percent) was awarded for affordable or supportive housing activities. The table below includes a list of the projects funded, description of the activities, planned available funding (approved for the current FYI, and total funds actually available (includes balance from previous years). Table 1.1 : CDBG Funded Projects - Planned vs. Available Funding Catholic Charitie 901 First St., Oceanside, CA Existing balance ($106) La Posada de Guadalupe shelter for homeless men. 2472-2476 Impala Dr., Carlsbad, CA Existing Balance $ 4,750 3138 Roosevelt St., Carlsbad, CA Residential Treatment facility for pregnant and parenting women and their children. 1105 Fifth St., Oceanside, CA Funds to repay Section 108 loan to assist the development of La Terraza affordable housing project. W side of El Camino Real between Camino Vida Robles & Alga Road, Carlsbad Existing Balance $64,581.44 Rehabilitation of single family owner occupied homes. Catholic Charities Community Resource Homeless Prevention Program Family Recovery Project Section 108 Loan Repayment/Aff ordable Housing Reserve Fund Residential Rehabilitation 1994-95 Annual Performance Report Page 1 r ~ FISCAL 20 % SET-ASIDE OTHER TOTAL TOTAL FUNDS YEAR SET-ASIDE INTEREST DEPOSITS DEPOSITS AVAILABLE (a I (b) (Cl (dl (e) if) 1981 -82 $0 $0 $0 $0 $0 1982-83 $ 14,005 $0 $0 $14,005 $14,005 I 983-84 s 19,795 $2,151 $0 $21,946 $35,951 UII I VI VniiLuunL - C~REHENSIVE - HOUSING AFFOR~LITY STRATEGY (CHAS FISCAL 20 % SET-ASIDE OTHER TOTAL TOTAL FUNDS YEAR SET-ASIDE INTER EST DEPOSITS DE POSITS AVAILABLE (a1 Ibl (C) (dl (e) (f I 1984-85 $30,544 $5,132 $0 $35,676 $71,627 1985-86 $75,487 $9,075 $0 $84,562 $1 56,189 1986-87 $166,026 $18,708 $0 $184,734 $340,9 23 1987-88 $242,921 $33,969 $0 $276,890 $61 7,8 13 1908-09 $213,239 $42,350 $0 $255,589 $873,402 1989-90 $332,297 $74,448 $0 $406,745 $1,280,147 $1,728,815 1 990-9 1 $322,234 $106,083 $20,351 $448,668 1991 -92 $3 17,673 $107,275 $0 $424,948 $2,153,763 1992-93 $330,515 $1 25,715 $65,983 $522,213 $2,675,976 1993-94 $322,067 $58,760 $162 $380,989 $3,056,965 1994-95 $289,739 $49,577 $174 $33 9,490 $3,396,455 TOTAL $2,676,542 $633,243 $86,670 $3,3 9 6'45 5 $3,396,455 Column Notes: (a) Fiscal y (b) (c) (d) (e) (f) Total set-aside funds added to account by fiscal year. Total interest earned on set-aside funds by fiscal year. Loan repayments and/or other misc. deposits. Total deposits to account by fiscal year. Total funds available includes current deposits and previous deposits. 4. San Diego Countv Reaional MCC Program The Mortgage Credit Certificate (MCC) Program, authorized by Congress in the Deficit Reduction Act of 1984, is an alternative to mortgage revenue bond-backed financing as a means of providing financial assistance for the purchase of single family housing. In 1985, the State of California adopted legislation authorizing local bond issuing agencies to make MCCs available in California. This program is designed to primarily benefit first time homebuyers of new and existing housing units. In May 1994, the City of Carlsbad, along with seven other participating jurisdictions formed the San Diego County Regional Mortgage Credit Certificate (MCC) Program. This program is administered by the County of San Diego on behalf of the seven participating jurisdictions. The total amount of funds received in 1994-95 for the City of Carlsbad as a participant in the Regional MCC Program was $1,968,000, which would provide homebuyer assistance to approximately 22 households. 1994-95 Annual Performance Report Page 3 -. . . -. -- ...---- -- - COMPREHENSIVE HWING - AFFORDABILITY STRATE~CHAS) Table 1.4: Regional MCC Program - Available Funding - REGIONAL MCC AVAILABLE a PROGRAM DESCRIPTION FUNDING Issuance of MCCs Amount of actual MCC credit to be given to in the purchasing of a home. Program are expended from Redevelopment Tax Increment funds. $1,968,000 low and moderate income households to assist Administrative Costs Program administrative costs for the MCC $5,904 TOTAL $2,89 1,314 B. Investment of Available Resources The following sources of funds were available during Federal Fiscal Year 1994 an( were expended to provide affordable and supportive housing activities to lower an( moderate-income households: 1. Communitv Develooment Block Grant Prosram The activities approved for funding under the CDBG program during FY 1994-95, serve low and moderate-income individuals and households from Carlsbad. A total oi $1 29,788.89 ory housing relate funded by CD ACTIVITY/RECIPIENT DES CR IPTION RESOURCES FUNDS Brother Benno Foundation Brother Benno Center for Human $5,000 $5,000 AVAILABLE EXPENDED Development provides food, shelter, and other life necessities to the homeless 3260 Production Ave., Oceanside, CA for homeless men 901 First St., Oceanside, CA Catholic Charities La Posada de Guadalupe shelter for $14,750 Catholic Charities Good Samaritan House provides shelter $7,394 $5,575 1 $9,875 ~ I I homeless men. 2472-2476 Impala Dr., Carlsbad, CA 3138 Roosevelt St., Carlsbad, CA pregnant and parenting women and their children. 1105 Fifth St., Oceanside, CA assist the development of La Terraza affordable housing project. W side of El Camino Real between Camino Vida Robles & Alga Road, Carlsbad , Community Resource Homeless Prevention Program ~10,000 $1,000 Center Family Recovery Project Residential Treatment facility for $25,000 $25,000 Section 108 Loan Funds to repay Section 108 loan to $71,581 $37,522 Repayment/Afforda ble Housing Reserve Fund Page 4 1994-95 Annual Performance Reporl ACTIVITY/RECIPIENT DESCRIPTION RESOURCES FUNDS AVAILABLE EXPENDED Residential Rehabilitation Rehabilitation of single family owner $1 69,136 $45,817 occupied homes. City wide TOTAL $302,861.59 $1 29,788.89 * - a - - - - -. - - .. ._ - Y-v COMPREHENSIVE HOSING AFFORDABILITY STRATE (CHAS) $37,522 will used for the repayment of the Section 108 ioan. All CDBG program funds were allocated to projects or organizations that are locatec within Carlsbad or provide services to North County residents including residents o Carlsbad. Of those funds specifically allocated to projects and programs operatin! within Carlsbad, the City has allocated funds not only where there is a need but ha also allocated funds to be used throughout the entire city; thereby reducing thl concentration of invested funds in any one area of the City. The Residential Rehabilitation Program is available to single family home owner: throughout the City. The property acquired using the Affordable Housing Resew homeless shelter sponsored by Catholic Char,ities is located in the Northeast Quadrant The Community Resource Center is located in the Northwest Quadrant and in th( census tract with the highest concentration of lower-income persons in the City. Fund is located within the Southwest Quadrant, The La Posada de Guadalupc 2. Section 8 Rental Assistance ProGram The Carlsbad Housing Authority provides rental assistance to very low-incomt households. This federally funded program provides enough assistance to subsidizt up to 503 households. For FY 1994-95, the Carlsbad Housing Authority received ana program adminis City's Section 8 Rental Assista e households (54 of 81 very low-income Section 8 participants reside outside of the city limits, The federal regulations allow for the households to qualify for rental assistance and live ir any eligible housing unit within the State of California (port-out). In addition, somc households receiving rental assistance from other Housing Authorities have chosen tc reside in Carlsbad (port-in). The Carlsbad Housing Authority is addressing the effects of impaction by targeting other areas within the City of Carlsbad for future rental assistance. Table 2.2: Section 8 Rental Assistance Funds Expended SECTION 8 RENTAL RESOURCES FUNDS ASSISTANCE DES CRI PTlO N AVAILABLE USED Housing Assistance Amount of actual rental subsidies paid to $2,899,535 $2,899,535 ~ Payments PROGRAM participating landlords on behalf of very low-income of 50% of area median income. staff salaries, benefits, maintenanceloperating costs to operate the Section 8 Program, including $6,000 for audit expenses. households. Maintains housing affordability at 30% Operating Costs Program administrative costs for Housing Authority $346,485 $346,485 TOTAL $3,246,020 $3,246,020 Page 6 1994-95 Annual Performance Report uaa 1 UT lrHnL3DHU - C~REHENSIVE - HOUSING AFFORD~LITY STRATEGY (CHAS) 3. RedeveloDment Housina Set-Aside Funds As shown in Table 2.3, a total of $339,490 was deposited into the Redevelopment and Moderate Income Housing funds actually available for FY 1994-95 was $1,732,579. In Fiscal yeat 1994-95, $1,080,139 was expended from the Redevelopment Low and Moderate income Housing Fund. Expenditures for the fiscal year included $1,012,408 for a construction loan for the 344 unit La Terraza apartment project and $67,703 for planning and administrative expenses which are necessary for the production, improvement, or preservation of housing affordable to lower-income households. In order to develop affordable housing in Carlsbad, it is necessary for staff to meet regularly with local developers, non-profit organizations, and other interested parties who are willing and able to assist the City in meeting its housing needs. Low and Moderate Income Housing Fund in Fiscal Year 1994-95. The total of Lon Table 2.3: Redevelopment-Low and Moderate Income Housing Fund Expenditures Summary $ 166,026 $1 8,708 $0 $184,734 $242,921 $33,969 $0 $276,890 $21 3,239 $42,350 $0 $255,589 $147,726 $332,297 $74,448 $0 $406,745 $322,234 $106,083 $20,351 $317,673 $107,275 $0 $424,948 $104,309 1992-93 $330,515 $125,715 $65,983 $522,213 $100,727 $322,067 $58,762 $162 $380,991 $1,301,085 TOTAL $2,676,542 $633,245 $86,670 $3,396,457 $2,744,016 1994-95 Annual Performance Report Page 7 COMPREHENSIVE H~ING AFFORDABILITY STRATE~CHAS) - Column Notes: (a) (b) (cl (dl (el (f) [g) The Housing & Redevelopment Department has worked with numerous for-profit and non-profit developers on potential new construction and acquisitionhehabilitation projects. Thirteen projects amounting to approximately 1,189 units are currently being proposed to satisfy affordable housing requirements of new developments as called for by Section 21.85 of the City's Municipal Code. Please see Appendix C to this report for a list of projects (approved and pending). Of the 1,189 units, 921 units have already been approved by City Council, with the 344 unit La Terraza apartment project already under construction and to be completed by the Fall of 1995. The City has already made significant progress in committing the Redevelopment Set- Aside funds to two of these projects, Specifically, the City is working with a non- profit organization, MAAC Project, to develop a 138 unit low income apartment HOME funds. T Fiscal year is July 1 to June 30. Total set-aside funds added to account by fiscal year. Total interest earned on set-aside funds by fiscal year, loan repayments and/or other misc. deposits. Total deposits to account by fiscal year. Total funds available includes current deposits and previous deposits. Account Balance [deposits-expenses) by fiscal year. Housing Funds for a construction loan to the 344 unit La Terraza apartment project, as part of a total commitment of $2,200,000 in Redevelopment Set-Aside funds to assist with the costs of producing these affordable units. 4. San Dieqo Countv Regional MCC Program The total amount of funds received for the City of Carlsbad as a participant in the Regional MCC Program for 1994-95 was $1,968,000. Seven homebuyers were provided MCCs to assist them in purchasing a home in Carlsbad. Assistance to these seven homebuyers resulted in the expenditure of $1 54,009 of the City's total MCC allocation. The City has also expended $5,904 from the Redevelopment Tax Increment Fund for the City's proportionate share of the administrative costs of the Regional MCC Program. Table 2.4: Regional MCC Program - Program Expenditure Summary REGIONAL MCC RESOURCES RESOURCES PROGRAM D ESCRl PTlON AVAILABLE EXPENDED Issuance of MCCs Amount of actual MCC credit to be given to $1,968,000 $1 54,009 low and moderate income households to assist in the purchasing of a home. Page 8 1994-95 Annual Performance Report I REGIONAL MCC RESOURCES RESOURCES PROGRAM 0 ES CR I PTl ON AVAILABLE EXPENDED Administrative Costs Program administrative costs for the MCC $5,904 $5,904 Program are expended from Redevelopment Tax Increment funds. TOTAL $1,973,904 $1 59,913 - COMPREHENSIVE Hm ING AFFORDABILITY STRATE - C. Households or Persons Assisted The following sources of funds were expended during Fiscal Year 1994-95 and provided affordable and supportive housing activities for lower and moderate-income households: 1. Communitv DeveloDment Block Grant Proqram In 1994-95, a total of 3,223 low and/or moderate-income households and/or persons were assisted through various North County shelters and programs funded in part with Carlsbad's Community Development Block Grant funds. The following table represents the number of persons/families assisted with housing and/or supportive services during the reporting period: Table 3.1 : CDBG Funded Projects - Households/Persons Assisted ACTIVITY/RECIPIENT DESCRIPTION NUMBER OF HOUSEHOLDS/PERS ONS ASSISTED Brother Benno Foundation Brother Benno Center for Human Development 1,089 provides food, shelter, and other life necessities to the homeless 3260 Production Ave., Oceanside, CA Catholic Charities * 965" Catholic Charities 433 Community Resource Center Homeless Prevention Program 643 3138 Roosevelt St., Carlsbad, CA parenting women and their children. 1105 Fifth St., Oceanside, CA development of La Terraza affordable housing W side of El Camino Real between Camino Vida Robles & Alga Road, Carlsbad homes. City wide Family Recovery Project Residential Treatment facility for pregnant and 90 Section 108 Loan Repayment/Affordable Housing Reserve Fund project. Funds to repay Section 108 loan to assist the 0 Residential Rehabilitation Rehabilitation of single family owner occupied 3 TOTAL HOUSEHOLDS/PERSONS ASSISTED 3,223 - Note: The number of persons assisted may represent a duplicated count of those receiving benefit from the programlproject. As shown above, during 1994-95, the City of Carlsbad addressed the needs of homeless individuals and families by funding three homeless shelters located in various cities through out the San Diego North County area. La Posada de Guadalupe, the only Carlsbad homeless shelter, provided shelter, food, rest room facilities, and educational programs for 433 homeless men. The Good Samaritan House in Page IO 1994-95 Annual Performance Report -. - . -- -- ...---- -- corn EHENSIVE HOUSING AFFORD ITY STRATEGY (CHAS) Oceanside provided shelter, food, and case management services for 965 single homeless men (see note above). The Family Recovery Cenler provided transitional housing and Supportive Services for 90 women and their children. These women are homeless and are dealing with substance abuse problems. - For 1994-95, the funding of these various North County shelters assisted these non- profit organizations to provide shelter for 1,488 homeless persons/families, of which 433 persons were directly assisted through Carlsbad's only homeless shelter (see note above). The Brother Benno Center for Human Development provided meals, showers, clothing and laundry facilities to 518 homeless persons from Carlsbad and 571 Carlsbad residents. The Community Resource Center offered case management services and emergency assistance to 89 homeless persons and 554 Carlsbad residents. Three lower-income homeowners were provided assistance to rehabilitate their homes. One w low-income mobilehome owner was assisted through the City's Residential Rehabilitation Program and two single family homeowners were assisted, CDBG funds w construction o affordable hous low-income re 2. Section 8 Rental Assistance Proqram A total of 503 CertificatesNouchers have been allocated to the Carlsbad Housing Authority for Section 8 Rental Assistance. As of August 21, 1995 approximately 485 households are receiving Section 8 rental assistance. The following table represents the number of families (by category) assisted with housing during the reporting period: Table 3.2: Section 8 Rental Assistance - Households Assisted HOUSEHOLD D ESCR IPTlON HOUSEHOLDS CATEGORY ASSISTED AS OF 08/21195 Elderly or Disabledl Handicap ped Families in this category include those households where the head of household is 62 years of age or older or where the head of household has a documented disability/handicap, regardless of age. DisabledlHandicapped Those elderly & non-elderly households with a 107 documented disability/handicap. Non-Elderly Families Families in this category include those households where 197 the head of household is less than 62 years of age. Homeless Households Those elderly & non-elderly households where the head 14 of household has provided documentation of homeless status. 288 1994-95 Annual Performance Report Page 11 COMPREHENSIVE HelNG AFFORDABILITY STRATEaCHAS) Records are not maintained to determine those households with incomes below 30 percent of the median family income and those with incomes between 31 percent and 50 percent of the median family income. Of those 485 very low-income households with Section 8 certificates/vouchers, 59 percent (288 households1 are elderly or disabled/handicapped, 79 percent (382 households) are small related households, including elderly and non-elderly, and 21 percent (1 03 households) are large related households, includes elderly and non-elderly. There are currently 14 households receiving Section 8 rental assistance that were given a federal preference for a homeless household. 3. Redevelopment Housina Set-Aside As shown in Table 2.3, $339,490 was deposited into the Redevelopment Low and Moderate Income Housing Fund in Fiscal Year 1994-95. The total of Low and Moderate Income Housing funds actually available was $ 1,732,579. A total of $1,080,138 of the available funds was expended from the Redevelopment Low and Moderate Income Housing Fund for the affordable La Terraza Apartment project and planning and administrative expenses. Of these available funds, $67,730 housing in Carlsbad, it is necessary for staff to meet regularly with local developers, non-profit organi ble to assist the City in meeti Redevelopme o expended for a construction lo is project is under construction, . structed, the La Terraza Apartment project will provide affordable housing to approximately 241 very low-income renter households and 103 low-income renter households. Therefore, for fiscal year 1994-95, no lower or moderate-income households were provided housing assistance through the use of Redevelopment Housing Set-Aside funds. was expended for planning and administrative expenses, In order to develop affordable 4. San Diego County Reaional MCC Proqram The total amount of funds received for the City of Carlsbad as a participant in the Regional MCC Program for 1994-95 was $1 ,968,000. Funds were used to assist 7 first time home buyers purchase a home in Carlsbad. Table 3.4: Regional MCC Program - Available Funding Household Income Category Number of Households Low-Income (80% of MFI) $154,009 Moderate-Income (80 to 1 15% of MFI) $5,904 TOTAL $1 59,913 Page 12 1994-95 Annual Performance Report CO~EHENSIVE HOUSING AFFORD-ITY STRATEGY (CHAS) - 5. u Table 1 1994-95 Annual Performance Report Page 13 COMPREHENSIVE H~ING AFFORDABILITY STRATE~CHAS) D. The City’s CHAS Annual Plan for Fiscal Year 1994-95 established goals for providing housing assistance to lower-income households, as shown in CHAS Table 3B of such Plan. The established goals made assumptions that reflected an increase in the funding sources available and/or program availability. As of August 21 , 1995, only 485 very low-income renter households were receiving assistance through the City’s Section 8 Rental Assistance Program. The established goals for assisted very low-income households anticipated the City’s successful application to the U.S. Department of Housing and Urban Development (HUD) for 50 additional Section 8 Certificates under the Family Unification Program and 50 additional Section 8 Certificates/Vouchers. However, due to the limited funding available and the great need in other San Diego County jurisdictions, the City of Carlsbad was not successful in its application for additional Section 8 Certificates or Vouchers. The City anticipated that funds available for 1994-95 would be focused at providing assistance to very low-income renters and first time home buyers rather than low- income renters. As anticipated by the City, the funds available for 1994-95 were not used to assist any low-income renters. Goals Established and Actual Assistance Provided Limit Allocation Committee (C $1,968,000 to assist approximately 22 households purchase a home. However, marketing of the MCC program was minimal in 1994-95 due to resources being spent MCC Program administrator will be taking a more aggressive marketing approach for the 7995-96 year. As established in the CHAS Annual Plan, residential rehabilitation is the City’s primary strategy for assisting very low and low-income homeowners. Implementation of the City’s Single Family Residential Rehabilitation Program has been slow. The agreement with the County of San Diego for administration and implementation of this program on behalf of the City was not executed until March 1994. It was anticipated that four households would receive assistance to rehabilitate their single family homes (see Table 4.1 1. All but one of the households to be assisted with the rehabilitation of their home was not assisted. This household was not assisted in 1994-95 because of the slow moving progress of the environmental review. Due to the age of the home, the rehabilitation of this home and its environmental review documentation must be reviewed by the State regarding historical significance, on future MCC allocation applications to CDLAC, The City in conjunction with the Page 14 1994-95 Annual Performance Report -.. i vr bnnLaDnt. C~REHENSIVE HOUSING AFFORD~LITY STRATEGY (CHAS: Table 4.1 : CDBG Funded Projects - Goals vs. Actual Assisted Catholic Charities" Good Samaritan House provides 1,125 965 shelter for homeless men. Oceanside Catholic Charities La Posada de Guadalupe shelter for homeless men. Carlsbad Community Resource Center Homeless Prevention Program 3138 Roosevelt St., Carlsbad, CA Family Recovery Project Residential Treatment facility for pregnant and parenting women and their children. Oceanside Section 108 Loan Funds to repay Section 108 loan .to RepaymentlAffordable assist the development of La Terraza Housing Reserve Fund affordable housing project. Carlsbad Residential Rehabilitation Rehabilitation of single family owner The goals for assisting homeless persons and other low-income residents with housing and/or supportive services (3,001 persons) in 1994-95 was based on the number of homeless and lower income residents assisted by those non-profit organizations who received funding from the CDBG program in 1993-94. The method most often used to estimate the number of homeless persons to be assisted in the future is to examine past performance. In 1994-95, 3,223 homeless and lower income persons/households were provided with shelter or other supportive housing services by various San Diego North County organizations funded by the City of Carlsbad's CDBG program. Approximately 433 of the 3,223 homeless persons/households were provided with assistance through the only homeless shelter located in Carlsbad. The actual number of homeless persons and other low income households assisted exceeded the goal established in the CHAS Annual Plan. The increase in the number of homeless and lower-income persons/households benefitting from the funded programs can be attributed to a general increase in the number of persons considered homeless and an estimation of persons to be assisted by two CDBG subrecipients. 1994-95 Annual Performance Report Page 15 - LUMPREHENSIVE HWING AFFORDABILITY STRATE~CHAS) As would be expected for the City to see an increase in the number of homeless sagging California economy and its slow recovery. Therefore, many shelters and services available for the homeless may also show an increase in the number of homeless persons/households benefitting from their services. Both the Brother Renno Foundation and the EVE'S Family Recovery Center were funded for the first time in FY 1994-95. 1994-95 was also the first year of operation of the Family Recovery Center. Brother Benno's estimated goal of persons to be assisted was merely a rough estimation based upon past assistance. The EYE could merely project the estimated number of women to be estimated based upon studies. E. Documentation of Assistance Provided The Carlsbad Housing Authority has maintained documentation of assistance provided to each household receiving assistance during the period between October 1, 1994 and September 30, 1995. The provisions of the Section 8 program require files to be maintained for each household assisted with federal Section 8 Rental Assistance Funds. In addition, provisions of the program require annual recertification of all program participants for compliance with current eligibility criteria. The criteria includes evaluation of changes in income, family composition, and compliance with housing quality standards for unit inspection. persons or persons threatened with becoming hameless because of the current availability of affordable housing in the City of Carlsbad, the City began work on the following activities: a. Citv Fee Schedules & Project Processing Prior to the current reporting period, the City reviewed and revised, where appropriate: 1 1 various project application requirements, 2) project review procedures, 3) environmental review procedures, 4) fee payment schedules (or policies for subsidies), and or 5) other City policies and procedures which have been identified by the development community as having a negative impact on their efforts to develop affordable housing in Carlsbad. Because the City's lnclusionary Housing Program affects all new residential subdivisions, and because of the variety of land use and financing tools which the City has made available to assist with meeting this requirement, the City has established new procedures for the processing of residential projects. Preliminary consultation with key senior City staff of several departments enables issues and problems to be defined and resolved early in the process. Importantly, this consultation enables staff and the developer to negotiate any requested project incentives (density bonuses, financial incentives, deviations in the development standards, project design concepts, etc). Once a project is submitted to the City for review and approval, it is assigned to an interdepartmental team to be expedited through the approval and hearing process. Page 16 1994-95 Annual Performance Report "I. I V. "-..L"YT\Y COWREHENSIVE HOUSING AFFORDmLlTY STRATEGY (CHAS) The City used a "fast track" processing system and "team" approach to quickly gain approval of the discretionary permit applications required for a lower-income affordable housing project, known as La Terraza. A complete application was submitted on August 23, 1994 and the project was approved by the City Council on October 26, 1993. This "fast track" processing assisted BRIDGE Housing Corporation, the non- profit organization, in their efforts to submit an application for Low Income Housing Tax Credits by April 15, 1994. In 1994-95, the Community Development Department (the collective Engineering, Planning, Building, and Housing and Redevelopment Department) began a systematic, long term, and comprehensive evaluation of the entire organization, including its mission, goals, programs, and procedures. From this effort, many changes are expected that will increase the effectiveness and efficiency by which the City processes all development proposals. One particular area undergoing evaluation is the fast track process for affordable housing. As allowed by City Council Policy Number 17, housing projects, which provide dwelling units affordable to lower-income households may be exempt from the payment of the City's Public Facilities Fees, where the City determines that such an exemption is necessary for the financial feasibility of such a project. In 1993-94, City Council approve Prior to this reporting period, the City adopted Ordinance NS-207, which modified the City's existing Site Development Plan permit process to authorize the City to exercise flexibility in reviewing special project designs for affordable housing on a case-by-case basis. Often deviations from the normally required development standards are necessary to increase density and assist in the financial feasibility of developing low- income affordable housing. This ordinance has proven to be an important tool in implementation of the City's lnclusionary Housing Ordinance. It has been used in numerous projects reviewed during this reporting period. C. Second Dwellina Unit Ordinance The City revised the existing Second Dwelling Unit Section of its Municipal Code in June 1994. The ordinance provides much greater flexibility for developers and existing home owners interested in pursuing the construction of these units. Some developers have expressed their interest in incorporating second dwelling units into newly constructed single family residences to satisfy their lnclusionary Housing obligation. As of June 30, 1995, only two second dwelling units have been constructed. 1994-95 Annual Performance Report Page 17 COMPREHENSIVE U@CING AFFORDARILITV STRATE&HAS] d. Manaqed Livina Unit Ordinance In June 1994, the City Housing Commission recommended approval of an ordinance to enable the development of "Managed Living Units". Managed Living Units provide an alternative housing product that combines the characteristics of Single Room Occupancy Hotels and studio apartments. As of September 30, 1995, the City Council has not had the opportunity to consider the adoption of this ordinance. e. Densitv Bonus & Densitv Increase The City's Density Bonus Ordinance, which implements Government Code Section 65913.4 and 65915, has been in effect since April 1993. The Density Bonus Ordinance permits a "minimum increase of at least 25 percent over the number of apartments within the existing structure or structures proposed for conversion" or "25 percent over either the Growth Management Control Point of the applicable General Plan designation or the otherwise maximum allowable residential density as specified by the applicable master plan or specific plan, at the time of application." In return, the developer would be guaranteeing that a minimum of 50 percent of the units for seniors; 20 percent of the units for low-income households or 10 percent for very low- income households. In accordance with provisions of the Ordinance, these units must remain affordable for a minimum of 30 years. Of the 1,189 low requirements Ordinance, one Bonus Ordinan pursuant to S To compliment the City's ordinance implementing State density bonus law, the City Council adopted amendments to the Land Use Element of the General Plan. These amendments allow the City to grant an increase in density above maximum permitted by the General Plan through a Site Development Plan, during the approval of which the City conducts a review of certain defined location and compatibility criteria. These amendments were re-affirmed by the City Council in August 1994 by the adoption of comprehensive revisions to the General Plan. f. lnclusionarv Housinq The City's lnclusionary Housing ordinance has been in effect since May 1993. The lnclusionary Housing Ordinance requires that a minimum of 15 percent of all residential units approved in a Master Plan area, Specific Plan area, and all other residential developments of 7 or more dwelling units must be occupied and affordable to lower- income households. During the reporting period, the City has approved several subdivisions which are subject to the new requirements. Please see Appendix C to this report for a list of projects (approved and pending). Although several developments have been approved, only one project, the La Terraza Apartment project consisting of 344 units is under construction. Page 18 1994-95 Annual Performance Report -11 I ur bfint-aDfiu CO~EHENSIVE HOUSING AFFORD~ITY STRATEGY (CHASI 9. lnclusionarv In-Lieu Fee As allowed by the lnclusionary Housing ordinance, residential projects with 6 or fewer units may make ZIR "ln-lieu" contribution, consisting of funds, land or some other asset for use in providing housing for lower-income households. The In-Lieu Fee as adopted by City Council in October 1993 is $1 1,485 per housing unit. An account has been established as a repository of the collected In-Lieu Fees. As of September 30, 1995, no lnclusionary In-Lieu fees had been collected by the City. All fees collected will be used exclusively to facilitate the construction, preservation, and maintenance of affordable housing. h, lnclusionarv Housina lmeact Fee As allowed by the lnclusionary Housing Ordinance, those residential projects where the application for a discretionary permit is deemed complete or approval is granted prior to May 21, 1993, the effective date of the lnclusionary Housing ordinance, an lnclusionary Housing "Impact" Fee will be paid to the City for use in providing housing for lower-income households. The Housing Impact Fee as adopted by City Council in October 1993 is $2,925 per housing unit. An account has been established as a repository of the collected Housing Impact Fees. As of August 1995, the Housing Impact Fee account contained $81 4,207 (including earned interest and less portfolio management fees). All fees collected will be used exclusively to facilitate the construction, pr relationship be demand for additional housing affordable to lower-income households. The study found that each of the six types of analyzed non-residential buildings created new demands for low-income affordable housing and quantified this demand. The report further calculated a theoretical maximum "justified pure nexus housing impact fee" that might be charged for new construction on each of the six types of buildings. Although the draft study was completed, as of September 30, 1994, the results of the study, together with recommendations regarding the establishment of a non-residential impact fee, has not been presented or considered by City Council. 2. Institutional Structure a. The nine-member Housing Commission continues to meet once a month to assist in facilitating the development of affordable and supportive housing activities, The Housing Commission reviews and makes recommendations to the City Council on affordable housing projects and housing policies, programs, and regulations. b. The City has been engaged in a number of network building activities with governmental and private for-profit and non-profit sector. The City's Housing and Redevelopment Director continues to represent the City and the region on the Advisory Council to the San Francisco District Federal Home Loan Bank Affordable Housing Program. The City is also represented on the North County Coastal Coalition for the Homeless, the Community Housing Resource Board, and the Community 1994-95 Annual Performance Report Page 19 COMPREHENSIVE H~ING AFFORDABILITY STRATE~CHAS) Agency Interchange meetings for North San Diego County. The City also participates in a County wide CDBG Grantees' Coordinator meeting. 3. lnterqovernmental CooDeration a. During this reporting period, the City of Carlsbad continued its administration of affordable housing activities. Projects funded through the U.S. Department of Housing and Urban Development included the City's Section 8 Rental Assistance Program which subsidizes the rental costs of low-income families through the issuance of program "Vouchers" and "Certificates". b. The City is in its seventh year of "entitlement status" in the administration of the federally funded CDBG program. Prior to Entitlement status, the City was involved with the County of San Diego's Urban County Program for administration of CDBG funds. c. The City of Carlsbad continues to contract with the County of San Diego to administer and implement a single family residential rehabilitation program on behalf of the City. The City will continue to contract with the County of San Diego to administer and implement this program as funds become available and the County Residential Reh policies and procedures for the-implementation of the rental rehabilitation assistance program. d. The City continues to participate with the County of San Diego and other San Diego County jurisdictions in a regional Mortgage Credit Certificate Program. All participating jurisdictions meet on a quarterly basis to discuss issues and share resources related to the MCC program or other first time home buyer programs. 4. Public Housing Improvements The City of Carlsbad does not have any public housing. 5. Public Housina Resident Initiatives The City of Carlsbad does not have any public housing. 6. Lead-Based Paint Hazard Reduction The City of Carlsbad continues to provide all households receiving Section 8 rental assistance or participating in the City's Residential Rehabilitation Program information regarding the hazards of lead based paint, treatment for lead poisoning, precautionary measures to avoid lead poisoning, and the advisability and availability of blood screening for lead poisoning. Page 20 1994-95 Annual Performance Report -IS I VI unsibuunu CO-EHENSIVE HOUSING AFFORD ITY STRATEGY (CHAS) - 7. Affirmativelv Furthering Fair Housing a. The City, through the use of funds allocated under the Community Development Block Grant Entitlement Program for administrative expenses, has renewed its agreement with Heartland Human Relations & Fair Housing Association (HHRA). HHRA provides fair housing services, which includes counseling, tenanthandlord mediation, education seminars, and mitigation and/or prevention of housing discrimination practices. HHRA responded to 91 inquiries from tenants and landlords and to 7 possible discrimination complaints. HHRA also provided fair housing information throughout the City and conducts education seminars to help local residents understand their housing rights and to help landlords and owners understand their responsibilities. b. Fair housing information and information and a qualification worksheet 1995 to 576 households working or living in Cartsbad and currently on the Section 8 Rental Assistance waiting list. for the leasing of units in the La Terraza Apartment project were mailed in August c. City Council approved the distribution of a fair housing survey and information to 2,000 randomly selected Carlsbad residents. In November and December 19 the selected provide resident level of perceive choice. A mor. community will be undertaken in 1995-96. s to fair housing 1994-95 Annual Performance Report Page 21 e COMPREHENSIVE H~ING AFFORDABILITY STRATE~CHAS) PART II. ASSESSMENT OF ANNUAL PERFORMANCE A. Assessment of Performance The following is an assessment of the City's effectiveness of performance during this reporting period in achievement of the City's overall five year strategy objectives and priorities for affordable housing assistance to low and very low-income households 1. Develor, New Construction The City has made considerable progress over the last year, as well as in 1993-94, in implementing various programs and adopting ordinances/policies which set the regulatory and incentive stage for construction of affordable housing. a, The City worked with numerous for-profit and non-profit developers on potential new construction and acquisitionlrehabilitation projects. Several projects amounting to over 1 ,I 89 new housing units are being proposed to satisfy affordable housing requirements of new developments as called for in Section 21.85 of the City's Municipal Code. Please see Appendix C to this report for a list of projects (approved and pending). Of the 1,441 units, 921 units have already been approved by City Council, with the 344 unit La Terraza apartment project already under construction and to be completed in the Fall of 1995. s regarding affordable ho using, Inc., RANCHO and ity's lnclusionary Housing Ordinance, which requires the reservation and affordability of housing units for lower-income households in residential projects and the payment of an In-lieu or lnclusionary Housing Impact Fee in specified circumstances. In future years, those residential developments subject to the City's lnclusionary Housing Ordinance will be the principle means by which the City will achieve progress on its objectives for construction of housing affordable to lower-income households. d. The City offers a minimum 25 percent increase in residential density if the residential project will reserve and make affordable housing units for moderate and lower-income households under a Citywide Residential Density Bonus Program. In addition, the City adopted amendments to the Land Use Element of Carlsbad's General Plan to permit additional density increases in many areas of the City for the development of housing affordable to lower-income households. e. The City previously adopted an amendment to the Carlsbad Municipal Code to allow modifications in development and design standards through application for approval of a site development plan for affordable housing projects. This ordinance has proven to be an important tool in implementation of the City's lnclusionary Housing Ordinance. It has been used in numerous projects reviewed during this reporting period. Page 22 1994-95 Annual Performance Report -~. ~ _. -~ ..~~__~ ~~ CO~EHENSIVE HOUSING AFFORD~ITY STRATEGY (CHAS) - f. The City has adopted an lnclusionary Housing In-Lieu Fee and an lnclusionary Housing Impact Fee, as required by the City’s lnclusionary Housing ordinance. The In-Lieu Fee and the Housing Impact Fee as adopted by City Council in October 1993 is $1 1,485 per housing unit and $2,925 per housing unit, respectively. Accounts have been established as repositories of the collected fees. No lnclusionary In-Lieu fees have been collected by the City. As of August 1994, the Housing Impact Fee account contained $81 4,207 (including earned interest and less portfolio management fees). All fees collected will be used exclusively to facilitate the construction, preservation, and maintenance of affordable housing. g. City staff has prepared a draft report, Economic Nexus Analvsis/Housing Linkaae Fee - Non-Residential DeveloDment. Although the draft report has been completed, the results of the study, together with any recommendations regarding the establishment of a non-residential impact fee, has not been presented or considered by City Council. Depending upon a review of the findings of the draft report and City Council direction, non-residential uses, such as commercial and industrial uses, may be assessed an impact fee linking lower-income jobs created with housing demand. If established, the funds from the non-residential impact fee will be deposited into a City account exclusively devoted to facilitate the construction, preservation, and maintenance of affordable housing. for a nominal f result in the new construction of 344 rental units, of which all will be affordable to lower-income households. Of the 344 units, 103 units are affordable at 60 percent of the area median, and 241 units are affordable at 50 percent of the area median. 2. Acquisition of Facilities/Housina Units a. The City continues to encourage participation by private organizations in these activities and offer the City’s financial assistance when deemed appropriate as an incentive to maintain and preserve existing affordable housing. 3. Provide Moderate and/or Substantial Rehabilitation a. The City of Carlsbad continues to contract with the County of San Diego to administer and implement a single family residential rehabilitation program on behalf of the City. The City will continue to contract with the County of San Diego to administer and implement this program as funds become available and the County continues to demonstrate adequate performance. From funds allocated in 1993-94, the City has assisted two mobile homeowners and two single family home owners with the rehabilitation of their homes. An additional single family homeowner is expected to be funded with the remaining 1993-94 funds. 1994-95 Annual Performance Report Page 23 COMPREHENSIVE Hf& ING AFFORDABILITY STRATE Currently, the City has allocated an additional $86,136 in CDBG funds in 1994-95 for the rehabilfation Df Owner occupied Sin010 family housing units. It IS expected thai three to four low income families will be expected to benefit from the residentia, rehabilitation program in the upcoming 1995-96 Program Year. - bl In June 1995, City Council approved an amendment to the C;t+ existhg Residential Rehabilitation Program agreement with the County of San Diego's Housing Authority to also include administration of a rental rehabilitation program on behalf of the City of Carlsbad. The City is currently developing the necessary administrative policies and procedures for the implementation of the rental rehabilitation assistance program. 4. Provide Rental and/or Homebuver Assistance a. The Carlsbad Housing Authority continued administration of the HUD Section 8 Rental Assistance Program. The Program provides rental subsidies to approximately 485 very low-income households as of August 21, 1995. b. The City has completed and is currently distributing a Resource Booklet which includes information pertaining to financial sources available to assist in the development cos nits and home are available in t assistance opp mortgage prog c. Ths information on rental housing, home ownership opportunities, shared living arrangements, fair housing, and residential rehabilitation program. This information packet has been distributed to nearby college campuses and other interested non- profit organizations providing referral or case management services to lower-income households. d. A regional Mortgage Credit Certificate (MCC) program, with participation from seven jurisdictions within San Diego County, was established to provide lower and moderate-income households assistance in purchasing a home. MCCs were provided to seven households in 1994-95. The remaining 15 MCCs from the 1994-95 successful in obtaining $644,122 to assist approximately 7 households purchase a home for 1995-96 allocation will be used in the upcoming program year. Additionally, Carlsbad was 5. Provide Sumort Facilities and Services a. The City of Carlsbad Housing and Redevelopment Department continued to administer the federally funded Community Development Block Grant program. A total of 3,223 lower income persons were assisted with housing related services. Based on the Community Development Plan, City Council awarded the entitlement allocation to projects which benefitted affordable housing efforts as well as housing support activities. Page 24 1994-95 Annual Performance Report ~II I VI vniia-uunu CO~PEHENSIVE HOUSING AFFORD~ITY STRATEGY (CHAS) - B. Future Actions to the City's five-year strategy proposed to make as a result of assessing the City's annual CHAS performance. The f~ll~wing is a dis~ussion of future acrions thei City ~ro~oses Io take, of thannet 1. The City's general policy strategies for affordable housing have not changed since the CHAS five-year plan was originally developed. The priorities for assistance include: a. Develop new construction; b. Acquisition of facilities/housing; C. d. Provide rentaVhomebuyer assistance; and e. 2. The City's general priorities for target groups by income classification, family category, and tenure have not changed since the adoption of the revised CHAS five- Provide mod erat e/s u bstantia I re ha bilitation; Provide support facilities and services. year plan (1 993-98). The priorities for assistance of target groups include: a. Very low-income or low-income households; dable housing or classification, family category, and tenure will be revised in conformance with the new regulations and requirements for the Consolidated Plan. This document replaces all current Community Planning and Development (CPD) planning and application requirements with a single submission. The four CPD formula programs subject to these requirements include Community Development Block Grants (CDBG), HOME Investment Partnerships (HOME), Emergency Shelter Grants (ESG), and Housing Opportunities for Persons with AIDS (HOPWA). 1994-95 Annual Performance Report Page 25 COMPREHENSIVE HC&ING AFFORDABILITY STRATEQ..CHAS) APPENDIX A Description of Process for Public Review and Comment Consistent with citizen participation and involvement requirements of the CHAS process, the City made the draft CHAS Annual Performance Report for Fiscal Year 1994 available for public review and comment for the required 30 day period from August 28 to September 26, 1994. A notice was also published in a local general circulation newspaper and notices mailed to interested parties to inform the public that the City of Carlsbad's CHAS Annual Performance Report for Fiscal Year 1994-95 was available at five various City facilities throughout the community for a 30 day public review and comment period and that a public hearing was scheduled for September 14, 1995 before the City's Housing Commission. In addition, the draft CHAS Annual Performance Report was distributed for review to persons and/or organizations requesting a copy of this document. The City of Carlsbad held a public hearing to accept any further comments from the public and to recommend the submittal of the final draft to the Department of Housing and Urban Development. All citizen comments which were received during the public hearing or durin a summary in Appendix B - Page 26 1994-95 Annual Performance Report J.. , V. Vr...-VI-vI cow EHENSIVE HOUSING AFFORD ITY STRATEGY (CHAS) This page blank. 1994-95 Annual Performance Report Page 27 COMPREHENSIVE H~ING AFFORDABILITY STRATE<.CHAS) APPENDIX B Summary of Public Comments No comments received as of August 28, 1995. I Page 28 1994-95 Annual Performance Report . CO-EHENSIVE HOUSING AFFORD~JTY STRATEGY (CHAS) - APPENDIX C City of Carlsbad Affordable Housing Projects 1994-95 Annual Performance Report Page 29 * VI c Y ng SL rS 25 6: cti a$ 9 2 7 00 U d i - - * ~0