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HomeMy WebLinkAbout1996-04-16; City Council; 13611; REVISION OF THE INCLUSIONARY HOUSING IN-LIEU FEEAB # &- TITLE: REVISION OF THE INCLUSIONARY HOUSING DEPT. c MTG. 4- 16 -4’ (c; IN-LIEU FEE CM DEF CIT CIT 4. rln 4m E -2 cdrl U 1-Ia 05 1CI F-c awl rn Uu ad aJ0 ual (67 5g Ma w Gal -4 m mu cu 2m U aa .c ’r) uo 1-I ha rcI *rl a, ab0 01-I E4 0 Uh P m 4J5 G .d Ea 2m 5al OaJ aLd w a, uta, cds g’ bo au oa, Url P 1CIa wF-c CdCd ua WE 0 5U Ua, a, .rl 5 u al UP bo rn rlu -4 U UaJ OM ua 2 ‘2 \L3 \ a g F 2 =! 0 5 0 0 \L) 4 1 e /’ WY OF CARLSBAD - AGWA BILL RECOMMENDED ACTION: Direct staff to prepare the necessary documents to modify the Housing In-Lieu Fee Pr ITEM EXPLANATION: In September of 1994the City Council adopted the Carlsbad General Plan, including a I Housing Element. This Housing Element provided the City Council with a broad range c and objectives aimed at serving the housing needs of the community. Some of tht areas emphasized by the housing element include the following: - Condominiums Moderate Income Development Standards - Monitoring Establish a housing Trust Fund - Neighborhood Input Farm Worker Housing Open/Fair Housing - Home Ownership - Regional Housing Needs - Housing/Jobs Balance - Rehabilitation - Land Banking - Rental Stock Low Income Housing - Reporting - Mobile Homes Senior Housing Because the City’s ability to accomplish these goals will depend in large part on thc ability to secure funding for housing programs, the Housing Element identifies a wid of funding sources which may be used to finance the resulting housing programs. funding sources include: CDBG - Housing Set Aside General Fund - State - Developer/Private - Housing Trust Fund - Federal - Red eve1 o pm en t One of the first actions the Council took to implement the Housing Element’s goals adopt the lnclusionary Housing Ordinance (Section 21.85 of the Municipal Code ordinance brings the development community onto the playing field by requiring that provide for affordable housing in the design of all future projects, or through the pay a fee in-lieu of providing housing. Any fees collected under the ordinance are depositc Housing Trust Fund to be used by the City Council for housing related programs. The lnclusionary Housing Ordinance provided methods for dealing with both large ar large and small projects is based on the point at which a developer is required to crf whole unit of affordable housing. Projects 0f six units or less are only respon: fractional units. Large Projects are required to construct new housing on-site as part of the market rate or off-site either as a separate project or as part of a combined project meeting the r several developers. Small projects are required to pay an In-Lieu fee rather thar fractional units of affordable housing. projects. Large projects are those with seven or more market rate units. The division I: Large Projects Up to $70,000 per Affordable Unit (depending on ability to attract other subsidies) $20,000 to $30,000 per Affordable Unit (in Combined projects) On Site a Off Site Villa Lorna $28,000 per affordable unit, plus interest (available to developers in the Southern half of Carlsbad) Small Projects $70,000 per Affordable Unit pi an in-lieu fee No Off-Site option Available ("I $28,000 per affordable unit, pl interest. (Available to develop1 the Southern half of Carlsbad). method for sale of fractional ur small projects is not addressed Council Policy #58. 0 * Lr * Page Three of Agenda Bill No. i' 3 hi / 1 J $70,000 per unit (unless some source of subsidy can be attracted to the project). If th site option is allowed, the subsidy from the developer is in the neighborhood of $20,0 $30,000. This represents a significant cost avoidance for the large developer. The Council has also adopted Council Policy 58, which sets the sale price of the Villa credits. This policy could be applied to both large and small projects in South Carlsbad ' have an obligation to create one or more units of affordable housing. This policy sets th price of a Villa Loma credit at $28,000 plus interest, or about $30,000 per affordable L of today. In general, small projects are at a disadvantage in their ability to attract subsidies, or ( combined off-site projects. This forces the small project to subsidize the affordable hc system at a level that is typically higher than the cost to the large project. The In-Lit system assumed that a fair and equitable fee could be based on the gap analysis without consideration for other factors. The Council has several options at this time. Which option the Council selects will d largely on what the Council's housing goals are. REQUIREMENTS FOR ESTABLISHING FEES The citizens, lawmakers and courts of the State of California have invested a consid amount of effort to defining the process and establishing the rules that govern the crea development related fees. Article Xlll b of the constitution was one of the first effc define fees and taxes, and to establish the basic guidelines for the creation of user fee 1600 was later adopted in an effort to more clearly define the need for a connection, or I between the fee a developer pays and the service or product the developer receives. the adoption of these laws, the court has taken advantage of several opportunities to cc and test the intent of the law, and to add its guidance to the record. Under the most recent decision on this subject, the California Supreme Court has issi under the guidelines of AB 1600 is constitutional provided it means that the developmei pass the "essential nexus" test and are "roughly proportional" to the impact of the prl project and they are not a disguised means for taking property simply because particular moment the land owner is asking the city for some permit. The City's Housing In-Lieu fee has been established as part of a comprehensive housii that assures that all developers participate in the creation of affordable housing, either t the direct construction of new units, or through the payment of a fee that reflects the create new units. In 1991 the City prepared a study of the cost of creating new affl housing (Economics of Developing Affordable Housing) which became the basis existing Housing In-Lieu fee. This study shows that the cost to create a single affordable housing ranged from $63,516 to $92,943. The City's existing Housing In-1 is based on an average of the cost to develop both rental and for-sale units of bedroom sizes. The present fee raises about $76,000 per affordable unit. The fee recommended in this agenda bill would set the Housing In-Lieu fee at substantially below the fee allowed under the affordability housing study referenced The recent Ehrlich decision (and the prior Nolan and Dolan decisions) do not preclude 1 opinion in EHRLICH V. CITY OF CULVER CITY that says that a fee that has been estat Page Four of Agene Bill No. 13,611 0 F from establishing a fee that is less than the amount necessary to meet its needs. These t applied, excessive, unproportional, or unrelated to the project paying the fee. 0 PTI 0 NS I 1. do preclude the City from establishing any fee that would be disGriminatory, UnreaSO If the Council believes the present system provides an adequate method for alloc the burden for the creation of affordable housing: The Council would take no a leaving the existing policies and standards in place. If the Council’s goal is to place the maximum demand on the market to pi solutions to the housing goals, minimize the City’s economic participation in affoi projects, and to adjust the housing fees to provide a comparable burden to bott and small projects: The Council may wish to consider reducing the fee paid by smaller projects (si2 or less) to be equal to the Villa Loma fee paid b y large projects. Although this wii less money for the housing trust fund, and reduce the City’s ability to parti economically in affordable projects, it will provide some equity between the trea of large and smallprojects. This will also place the largest demand on the free n to find ways to subsidize affordable projects with a lower level of fiscal suppor 2. the City 3. If the Council’s goal is to maximize the amount of money received by the City in to provide a funding source for City sponsored housing initiatives, and to encc the staff to participate in the creation of Affordable Housing Projects: The Council may wish to consider leaving the present fee system in tact. Th assure the maximum in-lieu fee payments from small projects. The Council ms wish to consider increasing the definition of a small project, subject to payment fee from six units or less to something higher. This will create a larger revenue s which could be used to support housing programs. , Staff is recommending that the Council consider option two. EXHIBITS: 1 . 2. 3. 4. Resolution 93-268 establishing an lnclusionary Housing Fee. Section 21.85.050 if the Carlsbad Municipal Code In-Lieu contributions. Council Policy #57 Affordable Housing - Off-site and Combined lnclusionary H Projects. Council Policy #58 Affordable Housing - Sale of Affordable Housing credits. i 1, 2 3 4 5 6 7 8 9 10 11 12 13 E RESOLUTION NO. 93-268 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA ESTABLISHING AN INCLUSIONARY HOUSING IN-LIEU FEE AND FORMULA FOR CALCULATING THE IN-LIEU FEE WHEREAS, the City of Carlsbad has adopt€ Inclusionary Housing Ordinance in order to enable the achie of it's Regional Share housing objectives for lower-incoi moderate-income units; and WHEREAS, the Inclusionary Housing Ordinance ma that a minimum of fifteen percent (15%) of all residential in any master plan, specific plan or residential subdivis reserved and affordable to lower-income households; and WHEREAS, the Inclusionary Housing Ordinance spc that all residential market rate dwelling units resulting f lconstruction of rental or for-sale units shall be subj 16 17 WHEREAS, based upon a comprehensive strategy fon to address the City's ,affordable housing needs over the ! 25 ,permits shall be eligible to satisfy Inclusionary 'requirements for lower income households through the pa) I I b 1 2 3 4 5 6 7 8 9 lo 11 12 13 14 I.5 l6 17 l8 a 0 condominiums, parcel map, planned unit development, development plan, conditional use permit, residential mobilc park permit or redevelopment permit) of six (6) dwelling un less, for which the application was deemed complete on or the effective date of the Inclusionary Ordinance, and is apl after the effective date of the Inclusionary Ordinance: (2) Any residential tentative map or parce revision, including a tentative map revision for the convers apartments to air-space condominiums, of six (6) dwelling un less, for which the application was deemed complete on or the effective date of the Inclusionary Ordinance, and is ap after the effective date of the Inclusionary Ordinance; (3) Any residential tentative map or parcel map (6) dwelling units or less, approved on or after the eff date of the Inclusionary Ordinance, and is subsequently ap for extension after the effective date of the Inclus Ordinance : (4) Any residential planned unit development /development plan, conditional use permit, residential mobil "'park permit or redevelopment permit for six (6) dwelling UT 21 22 23 24 25 26 27 28 'Ordinance, effective date of the Inclusionary Ordinance; and subsequently approved for amendment aft (5) Development of six (6) or fewer new mobil pads in a mobile home park, approved on or after the ef: date of the Inclusionary Ordinance. WHEREAS, the in-lieu fee to be paid for each mark dwelling unit would be equal to fifteen percent (15%) 2 I - + l, 2 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 * e subsidy required to make affordable to a lower-income housl for a thirty (30) year tenure, one newly constructed, t attached housing unit: and WHEREAS, the required subsidy is based upon the fi of a 1991 economic study, ltEconomics of Developing Affo Housing", prepared by an ad hoc committee composed of City and private for-prof it and non-prof it developers: and WHEREAS, the findings of this 1991 economic stuc been updated for 1993; and WHEREAS, the formula for calculating the dollar vi the in-lieu fee is included on Exhibit ''2"; and WHEREAS, based upon this formula, and current est of the variables contained therein, the dollar value of t Lieu Fee would be $11,485.00 (see Exhibit 1t3tt): and WHEREAS, consistent with the formula included on I Ir2lt, the dollar value of the in-lieu fee would be adjustc time to time by resolution of the City Council; and WHEREAS, the in-lieu fee would be assessed agaii market rate residential units subject to this fee: and WHEREAS, the in-lieu fee would be required to be l the City at the time of building permit issuance or prior recordation of a final map and/or issuance of certific compliance for the conversion of existing apartments to ai condominiums: and WHEREAS, the In-lieu Fee(s) paid to the City WI deposited in a Housing Trust Fund and used for the pur] providing funding assistance for the provision of aff housing and reasonable costs of administration. 3 L /* i 1 2l 31 4 5 6 7 NOW, THEREFORE, BE IT RESOLVED by the City Councj City of Carlsbad as follows: "1. That the method for calculating the dollar the Inclusionary Housing In-Lieu Fee, established by Municl Title 21, Section 21.85.050 In-Lieu Contributions, shall 1: formula shown on Exhibit tr21t, a copy of which is affixed a part hereto: and 2. That the input values for the variables con1 14 15 3.6 17' 18 formula and the In-Lieu Fee would be reviewed annually an by resolution of the City Council." PASSED, APPROVED AND ADOPTED at a regular meeti City Council of the City of Carlsbad, California, on the - of SEPTEMBER , 1993, by the following vote, to wit: 25 26 ATTEST : - (1) The fractional inclusionary unit shall be treated as a whole incl (Le.: any resulting fraction shail be rounded up to the next larger integer) sionary unit shall be built pursuant to the provisions of these sections, or (2) The fractional inclusionary unit shall not be included in the n the provisions of these section! ndar days of the hearing date e requested discretionary pennits, an amount of money equal to thl ge subsidy needed to make affordable to a lower-income hou newlyconstructed typical attached housing unit, as set forth i , In-lieu Contn’butions, (a) For the following classes of residential projects or permits, for 7 eemed complete on or &ex the effective date of this Or& usionary housing requirement for lower-income households may be rn (1) Any residential project (i.e.; tentative map, tentative mi arrments to air-space condominiums, parcel map, pla opment plan, conditional use pexmit, residentid mobile t or redevelopment permit) of six (6) dwelling units or less, for omplete on or after the effective date of this Odxm the conversion of apartments to air-space condomin , for which the application is deemed complete on (3) ~ny ddendd tentative map or patcel mp Of s~X (6) dW complete on or after the el ently approved for extension after the &e (4) Any residential planned unit development, site devel01 n is deemed complete at to the City of an in-lieu fee or other in-lieu contributions. or parcel map revision, i tive date of this Ordinance. e efftxtive date of this Ordinance. (b) The in-lieu fee to be paid for each market-rate dwelling uni ent of the subsidy needed to de af€ordable to a lower-income h -housing unit. This subsidy shall be b w two-bah0IWone-bat.h and three-bedroom/two-bath for-sale I ne-bath and three-bedroom/two-bath rental units, each wid subsidy that would be repuired to m 9 ii assistance for the provision of affordable housing and reason on consistent with the policies and programs contained in th~ (e) At the discretion of the City Council, an irrevocable dedication I d in-lieu fee may be accepted in-lieu of providing the required &ordab or in-lieu fees. The valuation of any land offered in-lieu shall be determ n by the City and the Qevelc nonmonetary contribution of a value not less than ihe sum of the t developments, residential mobile home pa onal use permits listed in subsection 21.85.0! to pay the in-lieu fee in an amount esta uant to Section 21.85.110 of thh Chapter or new construction o ionary units, pursuant to Section 21.85.040 of this Chapter. W. tncludanaw t-rau&n Impact Fee, ids may be met by the payment to the f my size, establishing individual lots ( ts (i.e.: parcel maps, tentative maps, tentative maps for the conversion of i e effective date of this Ordinance. (2) SingIe family residential projects, (Le.: parcel maps and tent; he, for which all discretio~~y approvals, except site development I ua or More! the effective date of this Ordinance and site devdopmex e prior approval and are approve which the application was deemed complete prior to the effective t e and is approved on, More or after the effective date of this 0rdi.1 (4) Any residential tentative map or parcel map for which the complete Wore the effective date of this Ordinance, which ws after the effective date of this Ordinance, and is subsequendy a ate of this Ordinance. a e c IN-LIEU FEE FORMULA X - - JA + B + C + Dl E 4 X = Dollar Value of In-Lieu Fee. A = The capital subsidy required to develop within the City of Carisbac assisted 2 BWl BA, 850 sq. ft. condominium unit, and deed restrict the as affordable to a low income family of 3 for a 30 year tenure. The capital subsidy required to deveIop within the City of Carisbad B = assisted 3 BW2 BA, 1,100 sq. ft. condominium unit, and deed restnc units affordabIe to a low income family of 4 for a 30 year tenure. The capital subsidy required to develop within the City of Carlsbad assisted 2 BW1 BA, 850 sq. ft. apartment unit, and deed restrict the un affordable to a low income farniIy of 3 for a 30 year tenure. The capital subsidy required to develop within the City of CarIsbad assisted 3 BW2 BA, 1,100 sq. ft. apartment unit, and deed restrict the as affordable to a low income family of 4 for a 30 year tenure. C = D = E - - 15% Inclusionary Requirement = .15 *'I Economics of the Development of AffordabIe Housing", City of Carlsbad, Decemb 1991. Unit Income Size Level 2BR/SIZE/1 BA Low 850 SQ.FT. 3BW2BA Low 1,100 SQ.FT. Capital Subsidy Required For-Sale Units Rental U $63,516 $86,84 $62,977 $92,94 0 0 EXHIl *\ v Policy No. 57 CITY OF CARLSBAD Date Issued Effective Date Supersedes No. COWCE POLICY STATEMENT Camellation Date 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. &ACKGROUND The City's Inclusionary Housing Ordinance (CMC Chapter 21.85) establishes certain requireme which residential developers must provide housing that is affordable to lower-income househc condition of project approval and permit issuance. The Ordinance provides that inclusiooary units "should be built on-site and, wherever reasonably be distributed throughout the project site." The Ordinance also provides that "circumstances mal in which the public interest would be served by allowing some or all of the inclusionary units associi one project site to be produced and operated at an alternative site or sites." This alternative is c as a "Combined Inclusionary Housing Project" or "Combined Project". The Ordinance, in ac Combined Projects, states that "it is the exclusive prerogative of the final decision making authori City to determine whether or not it is in the public interest to authorize the residential sites t( Combined Inclusionary Housing Project. I' PUWOSB It is the purpose of this policy to establish the criteria which will be utilized in order to make the x1 fmding that off-site satisfaction of an inclusionary housing requixement, when proposed through a Cc Project, is in the public interest. _POLICY The following criteria will be applied in order to make the necessary public interest findiq, Ead option: is defmd in terms of specific questions which, when affirmatively answered, would support is Page 1 of 4 C Policy No. 57 Effective Date Cancellation Date Supersedes No. CITY OF CARLSBAD Date Issued COUNCIL POLICY STATEMENT General Subject: AFFORDABLE HOUSING Specific Subject: Off-site and Combined Inclusionary Housing Projects ! Copies to: City Council, City Manager, City Attorney, Depaxtment and Division Heads, EmpIoyee Bulletin Boards, Press, File. 0 0 % . Policy No. 57 Effective Date CITY OF CARLSBAD Date Issued COUNCIL, POLICY STATEMENT Cancellation Date Supersedes No. 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. 3, Advanciqz Housing Goals + Does the off-site proposal advance and/or support City housing goals and expressed in the Rousing Element, CHAS and Inclusionary Housing Ordinance? It is likely that off-site proposals will involve "mixed" resdts with the application of the above cr "public interest" finding shall be made when a Combined Project Review Committee made up Manager, City Attorney, Community Development Director, Financial Management Director Director, Housing & Redevelopment Director, and the Mayor (ex-officio) , xeacbes consensus thal substantially and affirmatively satisfies the above criteria and that this conclusion can be ap documented through the use of a CombinedOff-site Project Evaluation Assessment Worksheet. (1 1). PROCEDURE 1. Projects with an inclusionary housing obligation will be processed according to the requ the hchsionary Housing Ordinance. Project approvals must be conditioned with the option to propose an off-site method (i.e., Project) of satisfying the inclusionary obligation. A project proposing an off-site option r not also propose an on-site option. Prior to final map or issuance of building permits, applicants must submit an Affordab Agreement as described in the Inclusionary Housing Ordinance which specifically descrit site proposal. Off-site proposals in the form of a draft Affordable Housing Agreement will be revie Combined Project Review Committee and it will be determined if the necessary findings c by staff, 2. 3. 4. Page 3 of x b Policy No. 57 CITY OF CAUBAD Date Issued Effective Date Supersedes No. COUNCIL POLICY STATEMENT Cancellation Date General Subject: AFFORDABLE HOUSING Specific Subject: Off-site and Combined Inciusionary Housing Projects Copies to: City Council, City Manager, City Attorney, Department and Division Heads, hployee Bulletin Boa&, Press, File. - 5, Staff's fbdings and recommendation, including the Combined/Off-site Project Assessm Worksheet, will accompany the Affordable Housjng Agreement to the Housing Comxni! action. Prior to final map or issuance of building permits, the proposed Affordable Housing Ai will be considered by City Council. along with the recommendation of staff and Housin; Commission. City Council will be the final decision making authority in determining whether an off- proposal is in the public interest and permitting this option, 6. 7. Page 4 of 1 I WORKSHEET ASSESSMENT CONCLUSION (Check appmptiate box) 1 DOES POT SWPFQM SUPPORTS 01 hSsESSMEM CRmRlA oF~mPRop6s;4L IIvcONcLUSIK PKOPO~ 1. Feast bilh of the On-site Proposal. a. Are there significant feasibility issues-due to factors such as project size, site constraints, amount and availability of required subsidy, and competition from multiple projects that make an on-site option in~practicai? Brief Narrative: - b. Will an affordable housing product be difficult to integrate into the proposed market development because of significant price and product type disparity? Brief Narrative: c. Does the on-site development enttty have the capacity to deliver the proposed affordable housing on-site7 Brief Narretive: 2. Relative Advantanes/Disadvantaases of the Off- site Pro~osal. a. Does the off-site option offer greater feasibility and cost. effectiveness than the on-site alternative, particufariy regarding potential local pubtic assistance? - I~~Hz\- g-jt) PI! .La ;3 11'1 @.lib h :tu. !Ab NU, @/luzuj'! I _- . i that would be difficult 3 -. 'I Date Considered by Review Committee: Review Committee Action: Action: I ar i EXHI Policy No. 58 Date Issued Septemb Effective Date SeDt % Cancellation Date - Supersedes No. ClTY OF CARLSBAD COUNCIL POLICY STATEMENT General Subject: AFFORDABLE HOUSING Specific Subject: Sale of Affordable Housing Credits Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Ernployee Bulletin Boards, Press, File. PURPOSE To establish a p&cy to be followed by City Council and City staff in selling Affordable Hc controlled by the City, to developers who will use the Credits to satisfy obligations to pro\ housing pursuant to the City's Inclusionary Housing Ordinance (CMC Chapter 21.85). BACKGROUND In the development of the 344-unit affordable housing project known as Villa Loma in Quadxant of the City, the developers and the City created a project which may be treated a Project as defined in the City's Inclusionary Housing Ordinance. With City Council appro\ Projects allow "some or all of the inclusionary units associated with one residential proji produced and operated at an alternative site". The "alternative site" becomes a Combined I Loma was conceived and developed with City participation based on the creation of 184 exc housing units which would be available to satisfy other developers' inclusionary housing ot making it a potential Combined Project. City frnancial participation in the project was also concept of recovering costs through the sale of the excess units. Furthermore, Villa Loma wa! give the City control of these units (Affordable Housing Credits or "Credits") and their sal Combined Project participants. Therefore, it is necessary to establish a policy to guide th effective implementation of these Affordable Housing Credit sales transactions. POLICY Two basic factors will be considered in a Credit sale transaction - the financial aspect, which pricing - this determines cost to a purchaser and revenue to the City; and the affordable hc which is the use of this mechanism to satisfy a developer's obligation under the Inclusior Ordinance* Based on these considerations, the following will guide Credit sales: i Policy No. 58 CITY OF CARLSBAD Date issued Sept Effective Date Sept Cancellation Date - Supersedes No. COUNCIL POLICY STATEMENT General Subject; AFFORDABLE HOUSING Specific Subject: Sale of Affordable Housing Credits Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. . Price. The Credit price will be determined according to the following formula which d financial contribution provided to the Villa Lorna project by the total number of Crc The local financial contribution consists of all City financial assistance provided to the as loans or expknditures for land including accrued interest on such amounts for the they are outstanding); and the local developer contribution to the project provided in ( an affordable housing obligation): Affordable Housing Credit Pricing Formula = Unit Priceof Af Housing Credit: Local Financial Contribution Housing Credits Available to nearest $I.( City Contribution $4.2 Million* Developer Contribution 184 $28,000* (Aviara Land Associates) .9 + Number of Affordable TOTAL $5.1 Million * To be adjusted with the additbn of interest. Terms of Purchase and Sale. The commitment to purchase and sell Credits will be Agreement will contain the fern of the Credit sale and will acknowledge the sati! affordable housing obligation through participation in a Combined Project (Villa Lorn b through an Affordable Housing Agreernenr as required by the Inclusionary Housing Or1 t . Policy No. 58 Effective Date Seut . Cancellation Date - Supersedes No. CITY OF CARLSBAD Date Issued Sevt . 1 COUNCIL POLICY STATEMENT General Subject: AFFORDABLE HOUSING Specific Subject: Sale of Affordable Housing Credits Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. b SeIection of Purchasers. The following procedure will apply to the selection of pi allocation of Credits: 1. Proiect Review. Staff, through the Combined Project Review Committee (see C determine which projects will be recommended to satisfy their obligations No. 57) will review all applications and approved projeqs with inclusionary requ purchase of Credits. If the number of acceptable projects have afford: requirements which exceed the available number of Credits, projects will b allocated Credits accordingly. Projects will be reviewed and ranked using tl criteria: a) The immediacy of the need to satm an affordable housing obligation wi the market rate project that is generating the obligation. The readiness and capacity of the developer to enter into an Affordat Agreement and perform under its terms. The acceptability of the Combined Project as an off-site option in satisfaction of the affordable housing obligation on-site with respect to the is generating the obligation (see Council Policy No. 57). b) c) 2. Electing to Purchase Credits. Deveiopers will be notifred of staffs recommendatic the purchase of Credits and given the opportunity to accept or reject thus option. Reservation of Credits. Developers wishing to use the option of purchasing Credit their projects approved with conditions allowing this option. In addition t Commission approval, the recommendation of the Housing Commission will be I the Credit purchase option of satisfying the Inclusionary Housing Obligation. Wht is approved (e.g., tentative map) with the Credit purchase condition, a reserva Credits is made for the project. 3. < r e 0 Page L e. 7 Policy No. 58 CITY OF CARLSBAD Date Issued Sept. Effective Date SeDt L Cancellation Date - Supersedes No. COUNCIL POLICY STATEMENT AFFORDABLE HOUSING Sale of Affordable Housing Credits Copies to: City Council, City Manager, City Attorney, Department and Division Heads, 4. Affordable Housing Agreement. Within sixty (60) days of the approval of the CI Affordable Housing Agreement in the form prescribed by the City with a ni deposit in an amount equal to 10% of the total Credit sale price. The Afford Agreement will be scheduled for City Council consideration and, if and when ai be executed by the City. The Affordable Housing Agreement will require pa balance of the purchase price upon execution and prior to fd map or issuance condition, the developer must deliver to the Housing and Redevelopment Dite perform as required, or is denied the option of purchasing Credits, the Credits available to another project(s), subject to this process. This policy is subject to all other requirements of the Inclusionary Housing Orc . 6.