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HomeMy WebLinkAbout1996-10-01; City Council; 13825; COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY ANNUAL PERFORMANCE REPORT FOR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FISCAL YEAR 1995-96\ - lo& CITY OF CARLSBAD - AG ? NDA BILL P b REHENSIVE HOUSING AFFORDABILITY - COMMUNITY DEVELOPMENT BLOCK GRANT DEPT. H/RED RECOMMENDED ACTION: Adopt Resolution No. 96 - 3 I& approving the City of Carlsbad’s Comprehensive Housing Affordability Strategy (CHAS) Annual Performance Repoi Community Development Block Grant Entitlement Program. ITEM EXPLANATION: As required by the federal regulations for the Community Development Block Grani Entitlement Program, staff has prepared the attached CHAS Annual Petformance Rep for submission to the U.S. Department of Housing and Urban Development (HUD). T covered by the attached APR is July 1, 1995 to June 30, 1996. As a recipient of federal CDBG Entitlement funds, the City of Carlsbad is required to pi APR on an annual basis. The purpose of the CHAS Annual Performance Report is to; . on progress in carrying out the Consolidated Plan Annual Strategy; and 2) Assess annual performance in relationship to meeting the City’s overall five year priorities and si The City is required to make the APR available to the public for review and comment. was published in a local newspaper announcing the public review and comment F addition, all CDBG fund recipients and other interested parties were mailed a notice an the public review and comment period. The “public review and comment” period for the APR was initiated on August 3C Comments are being accepted until 12 noon on September 30, 1996. A summary of c( if any, received during the public review period will be attached as an appendix to the I to its submittal to the U.S. Department of HUD. FISCAL IMPACT: No fiscal impact. 1. Resolution No. ?b -3/b approving the City of Carlsbad’s Comprehensive Housing Affordability Strategy Annual Performance Report Community Development Block Grant Entitlement Program. I w 1 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 \r 27 28 e CITY COUNCIL RESOLUTION NO. 9 6 - 3 16 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA TO APPROVE THE SUBMITTAL OF THE 1995-96 COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY ANNUAL PERFORMANCE REPORT FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the City of Carlsbad, is a recipient of federal Community Develo Block Grant (CDBG) funds administered by the U.S. Department of Housing and Development (HUD); WHEREAS, a Comprehensive Housing Affordability Strategy Annual Perfor Report is required by the U.S. Department of Housing and Urban Development, for rev the City's performance in carrying its Annual Strategy and in relationship to meeting the overall five year priorities and strategies for housing and community development; WHEREAS, the City Council of the City of Carlsbad has considered the City's 96 Comprehensive Housing Affordability Strategy Annual Performance Report f Community Development Block Grant Program; and WHEREAS, the City Council has taken all testimony into account. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the i Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. That the City of Carlsbad's 1995-96 Comprehensive Housing Affor Strategy Annual Performance Report for the Community Developmenl Gr3nt Program is hereby approved for submission to the U.S. Departn Housing and Urban Development. 3. That the City of Carlsbad published a notice in a local general cir( newspaper announcing a thirty (30) day pubtic review and comment perioc 1 995-96 Comprehensive Housing Affordability Strategy Annual Perfa Report. 1 *. 1 2 3 4 5 6 7 L 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 e PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council City of Carlsbad, California, held on the 1st day of October by the following vote, to wit: AYES: Council Members Lewis, Nygaard, Kulchin, Hall and Finnila NOES: None ABSENT: None ABSTAIN: None ATTEST: ALETHA L, RAUTENKRANZ, City Clerk\ - .$% 2 PLANNED AVAILABLE ACTIVITY/RECIPIENT DESCRIPTION FUNDING FUNDING Brother Benno Foundation Brother Benno Center for Human $5,000 $5,000 Development provides food, shelter, and other life necessities to the homeless. 3260 Production Ave. Oceanside shelter for homeless men. 901 First St. Oceanside Existing balance ($5,575) Guadalupe, a shelter for homeless men. Existing Balance ($4,875) Rehabilitation of La Posada de $12,000 $30,000 Guadalupe . Existing Balance ($18,000) Carlsbad 3138 Roosevelt St., Carlsbad pregnant and parenting women and their children. 1105 Fifth St., Oceanside homeless women and children. 2091 E Valley Parkway, #1E, Escondido women and children who are victims of domestic violence. 1963 Apple St. Oceanside Catholic Charities Good Samaritan House provides $2,500 $8,075 Catholic Charities Operation of La Posada de $10,000 $14,875 2472-2476 Impala Dr., Community Resource Center Homeless Prevention Program $5,000 $5,000 Family Recovery Project Residential treatment facility for $5,000 $5,000 St. Clare’s Home Shelter and supportive services for $1,500 $1,500 Women’s Resource Center Shelter and supportive services for $5,000 $5,000 Residential Rehabilitation TOTAL Camino Vida Robles & Alga Road Existing Balance ($34,060.79) Rehabilitation of single family owner $50,621.58 $173,940.34 occupied homes. City wide Existing Balance ($123,3 18.76) 6421 Tobria Terrace Carlsbad $266,298.79 $452,128.34 CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY 0 0 percent of the tax increment. revenues are required to be set aside by California Redevelopment Law for housing purposes for low and moderate-income households. As shown in Table 1.3, a total of $294,719 was collected in tax increment set-aside, set-aside interest, and other deposits in Fiscal Year 1995-96. Since Fiscal Year 1981-82, the Redevelopment Agency has collected a total of $3,691,174 in Low and Moderate Income Housing funds for the creation of housing affordable to low-income households in Carlsbad. Table 1.3 : Redevelopment-Low and Moderate Income Housing Fund Deposits Summary SET- TOTAL ASIDE OTHER TOTAL FUNDS FISCAL 20% SET- INTEREST DEPOSITS DEPOSITS AVAILABLE YEAR (a) ASIDE (b) (c) (4 (e) (0 1981 -82 1982-83 14,005 14,005 14,005 1983-84 19,795 2,151 21,946 35,951 1984-85 30,544 5,132 35,676 71,627 1985-86 75,487 9,075 84,562 156,189 1986-87 166,026 18,708 184,734 340,923 1987-88 242,921 33,969 276,890 617,813 1988-89 213,239 42,350 255,589 873,402 1989-90 332,297 74,448 406,745 1,280,147 1990-91 322,234 106,083 20,351 448,668 1,728,815 1991-92 31 7,673 107,275 424,948 2,153,763 1992-93 330,515 125,715 65,983 522,213 2,675,976 1993-94 322,067 58,760 162 380,989 3,056,965 1994-95 289,739 49,577 174 339,490 3,396,455 1995-96 292,538 2,181 294,719 3,691,174 TOTAL 2,969,080 633,243 88,851 3,691,174 3,691,174 Column Notes: (a) (b) (c) (d) (e) (0 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. 4. San Diego County Regional 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 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 participating jurisdictions. As a participant in the Regional MCC Program, the City of Carlsbad received $161,031 in MCC credit in August 1995 and an additional 1995-96 Annual Performance Report Page 3 ACTIVITY/RECIPIENT Brother Benno Foundation Catholic Charities Catholic Charities Community Resource Center Family Recovery Project RESOURCES FUNDS DESCRIPTION AVAILABLE EXPENDED Brother Benno Center for Human Development $5,000 $5,000 provides food, shelter, and other life necessities to the homeless. 3260 Production Ave. Oceanside Good Samaritan House provides shelter for $8,075 $7,450 homeless men. 901 First St. Oceanside Existing balance ($5,575) Operation of La Posada de Guadalupe, a shelter $14,875 $12,375 for homeless men. Rehabilitation of La Posada de Guadalupe. $30,000 $3,882.43 Existing Balance ($18,000) 2472-2476 Impala Dr., Carlsbad Homeless Prevention Program $5,000 $5,000 3 138 Roosevelt St., Carlsbad Residential treatment facility for pregnant and $5,000 $5,000 parenting women and their children. 1105 Fifth St., Oceanside Existing Balance ($4,875) RESOURCES FUNDS ACTIVITY/RECIPIENT DESCRIPTION AVAILABLE EXPENDED St. Clare's Home Shelter and supportive services for homeless $1,500 $1,500 women and children. 2091 E Valley Parkway, #E, Escondido Women's Resource Center Shelter and supportive services for women and $5,000 $5,000 children who are victims of domestic violence. 1963 Apple St. Oceanside abandoned children. 4070 Mission Ave. San Luis Rey Casa de Amparo Emergency shelter for abused, neglected or $5,000 $5,000 Lifeline Community Services Comprehensive housing services to include $6,000 $6,000 shared housing, tenant-land relations, discrimination, information and referal and other services. 200 Jefferson Street, Vista development of the Villa Loma affordable West side of El Camino Real between Camino Vida Robles & Alga Road 6421 Tobria Terrace Carlsbad Section 108 Loan Funds to repay Section 108 loan to assist the $192,738 $192,659.50 Repayment/ Affordable Housing Reserve Fund housing project. Existing Balance ($34,060,79) Residential Rehabilitation Rehabilitation of single family owner occupied $173,940.34 $90,481.3 1 homes. City wide Existing Balance ($123,3 18.76) TOTAL $452,128.34 $339,348.24 0 0 CITY OF CARLSBAD FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY For the first year, Carlsbad allocated CDBG funds to St. Clare’s Home, which operates shelters anc $1,500. The Women’s Resource Center provides emergency and transitional shelter, as well as supportivc services, for victims of domestic violence. Carlsbad’s CDBG funds were used specifically to provide case management services for the Alternatives to Abuse emergency shelter for women and theii children. Casa de Amparo provides emergency shelter and services to abused, neglected, or abandoned children in San Luis Rey . The City allocated $5,000 to assist with the costs of the shelter. The City allocated $5,000 to the Carlsbad office of the Community Resource Center. The Community Resource Center operates a Homeless Prevention Program, which includes case management, counseling, emergency assistance, and information and referrals. Lifeline Community Services in Vista was awarded $6,000 to provide a comprehensive housing services program for Carlsbad residents. Services include shared housing, tenant-land relations, discrimination, information and referal and other services. The Single Family Residential Rehabilitation Program is administered by the County of San Diego on behalf of the City of Carlsbad. The Rehabilitation Program offers low income homeowners an Interest Subsidy Loan, a Deferred No Interest Loan for up to $20,000, a $1,000 Weatherization Grant andlor a $1,000 grant for elderly/handicapped persons. Funds expended in 1995-96 include $16,643.90 for those costs related to administration of the program and $73,837.41 for loandgrants. The Affordable Housing Reserve Fund was established for the acquisition of property to be developed as affordable housing. This reserve fund was used in a previously reported Fiscal Year to purchase a 21 acre site that is being leased to the Bridge Housing Corporation for a 344 unit apartment project, Villa Loma (formerly La Terraza) Apartments. The City also received approximately $1.2 million in a Section 108 Loan to further assist in the land acquisition expenses for this 21 acre site. Those funds expended in 1995-96 were for the repayment of the City’s Section 108 loan. The remaining balance will be used for repayment of the Section 108 loan. All CDBG program funds were allocated to projects or organizations that are located within Carlsbad or provide services to North County residents including residents of Carlsbad. Of those funds specifically allocated to projects and programs operating within Carlsbad, the City has allocated funds not only where there is a need but has also allocated funds to be used throughout the entire city; thereby reducing the concentration of invested funds in any one area of the City. The Residential Rehabilitation Program is available to single family home owners throughout the City. The property acquired using the Affordable Housing Reserve Fund is located within the Southwest Quadrant. The La Posada de Guadalupe homeless shelter sponsored by Catholic Charities is located in the Northeast Quadrant. The Community Resource Center is located in the Northwest Quadrant and in the census tract with the highest concentration of lower-income persons in the City. provides supportive services to women and their children. In 1995-96, St. Clare’s Home receivec 2. Section 8 Rental Assistance Program The Carlsbad Housing Authority provides rental assistance for very low-income households. This federally funded program provided enough assistance to subsidize up to 503 households. For FY 1995- 96, the Carlsbad Housing Authority received and expended a total of $2,639,193 for housing assistance Page 6 1995-96 Annual Performance Report CITY OF CARLSBAC COMPREHENSIVE HOUSING AFFORDABILITY STRATEGk 0 0 payments, and $358,917 for program administration costs. As of August 19, 1996, 488 households are participating in the City's Section 8 Rental Assistancc Program. A majority of those households (53 percent), assisted through the Section 8 Renta Assistance Program, reside within Census Tract 179.00 of the City of Carlsbad, which has a higl concentration of low income and ethnicIracia1 minority households. A total of 74 households resid1 outside of the city limits. The federal regulations allow for the households to qualify for renta assistance and live in any eligible housing unit within the State of California (port-out). In addition, 2 households receiving rental assistance from other Housing Authorities have chosen to reside il Carlsbad (port-in) . The Carlsbad Housing Authority is addressing the effects of impaction by targeting other areas withir the City of Carlsbad for future rental assistance. Table 2.2: Section 8 Rental Assistance Funds Expended Section 8 Rental Resources Funds Used Assistance Program Description Available Housing Assistance Amount of actual rental subsidies paid to $2,639,193 $2,639,193 Payments participating landlords on behalf of very low-income households. Maintains housing affordability at 30% of 50% of area median income. staff salaries, benefits, maintenance/operating costs to operate the Section 8 Program, including $6,500 for audit expenses. Operating Costs Program administrative costs for Housing Authority $358,917 $358,917 $2,998,110 $2,998,110 TOTAL 3. Redevelopment Housing Set-Aside Funds As shown in Table 2.3, a total of $294,719 was deposited into the Redevelopment Low and Moderate Income Housing Fund in Fiscal Year 1995-96. The total of Low and Moderate Income Housing funds actually available for FY 1995-96 was $947,158 (Remaining balance as of 7/30/95 and deposits for FY 1995-96). In Fiscal Year 1995-96, $98,764 was expended from the Redevelopment Low and Moderate Income Housing Fund. Expenditures for the fiscal year were for planning and administrative expenses whicl- 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. 1995-96 Annual Performance Report Page 7 SET- ASIDE OTHER TOTAL TOTAL UNEXPENDED/ FISCAL 20% SET- INTEREST DEPOSITS DEPOSITS EXPENSES UNENCUMBERED YEAR (a) ASIDE (b) (c) (4 (e) (f) (9) 1981-82 1982-83 14,005 14,005 14,005 1983-84 19,795 2,151 21,946 21,946 1984-85 30,544 5.132 35,676 35,676 1985-86 75,487 9,075 84,562 84,562 1986-87 166,026 18,708 184,734 184,734 1987-88 242,92 1 33,969 276,890 276,890 1988-89 21 3,239 42,350 255,589 147,726 107,863 1989-90 332,297 74,448 406,745 6,212 400,533 1990-91 322,234 106,083 20,351 448,668 3,819 444,849 1991 -92 31 7,673 107,275 424,948 104,309 320,639 1992-93 330,515 125,715 65,983 522,213 100,727 421,486 1993-94 322,067 58,760 162 380,989 1,301,085 (920,096) 1994-95 289,739 49,577 174 339,490 1,080,138 (740,648) 1995-96 292,538 2,181 294,719 98,764 195,955 TOTAL $2,969,080 $ 633,243 $ 88,851 $3,691,174 $ 2,842,780 $ 848,394 CITY OF CARLSBAD COMPREHENSIVJ3 HOUSING AFFORDABILITY STRATEGY 0 0 Table 2.4: Proposed lnclusionary Dwelling Units 344 Construction completed. Projects are in "project development" stage. Please see Appendix C to this report for a detailed list of projects (approved and pending). The City has already made significant progress in committing the Redevelopment Set-Aside funds tc two of these projects. Specifically, the City is working with a non-profit organization, MAAC Project to develop the 138 unit low-income Laurel Tree apartment project. The City has committed a maximun of $500,000 from the Redevelopment Housing Set Aside budget and $200,000 from the City's Housinj Trust fund (Inclusionary Housing In-Lieu and Impact Fees) for a construction loan and pennanen financing for Laurel Tree. Additionally, in 1994-95, the City expended Redevelopment Low and Moderate Income Housing Fund for the acquisition of property for the 344 unit Villa Loma apartment project, as part of a tota commitment of $2,200,000 in Redevelopment Set-Aside funds to assist with the costs of producinj these affordable units. 4. San Diego County Regional MCC Program In FY 1995-96, the City received a total of $227,301 in MCC credit. Additionally, all MCC credj available in FY 1994-95 was not expended. Therefore, a balance of $355,450.80 was carried over ti FY 1993-96. Fourteen homebuyers were provided MCCs to assist them in purchasing a home in Carlsbad. Assistance to these fourteen homebuyers resulted in the expenditure of $328,288.80 of the City's tota MCC credit available. The City has also expended $1,932 from Redevelopment Tax Increment fund for the City's proportionate share of the administrative costs of the Regional MCC Program. 1995-96 Annual Performance Report Page 0 CITY OF CARLSBAD FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY Table 2.5: Regional MCC Program - Program Expenditure Summary REGIONAL MCC CREDIT CREDIT Issuance of MCCs Amount of actual MCC credit to be given to $227,301.00 $328,288.8C PROGRAM DESCRIPTION AVAILABLE USED low and moderate income households to assist in the purchasing of a home. Existing balance from FY 1994-95 Program are expended from the Redevelopment Tax Increment funds. $355,450.80 Administrative Costs Program administrative costs for the MCC $2,727.00 $1,932.0C TOTAL $585,478.80 $l7932.OC 5. Leveraging of Available Resources. The City's policy is to leverage, to the maximum extent feasible, the use of funds available in tht development of affordable housing and the maintenance and preservation of existing housinj throughout the entire city. The City supports the use of CDBG, HOME, and Redevelopment Set-Asidt funds for predevelopment activities and "gap financing" by private and non-profit entities in thei efforts to develop affordable housing. All CDBG program and Redevelopment Housing Set-Aside funds are leveraged with other sources o income, such as other federal, state, local and private funds. For organizations allocated CDBC program funds, these funds do not cover all of their costs and are merely leveraged with other source: of income to operate the funded program. Specifically, the development and construction of a 344 unit apartment project, Villa Loma (formerlj La Terraza), represents a publidprivate partnership, with a non profit and private residential develope assuming the role as the primary provider of housing. City assistance was provided in the form of 1 purchasing of the land with federal CDBG funds and leasing it to the developer; 2) a loan, using loca Redevelopment Set-Aside funds, to assist with construction costs of the project; and, 3) using a "fas track" processing system for approval of the discretionary permit applications. Other sources of funds for the financing of Villa Loma Apartments include: Wells Fargo Bank, Work Savings, California State Public Employee Retirement System, Great Western Bank, Federal Homc Loan Bank, Mission Housing Investment, California Tax Credit Committee, and Aviara Lam Associates. Much like the Villa Loma Apartments, the 138 unit affordable Laurel Tree housing project to bc developed by MAAC Project will use a variety of financing sources including contributions by privati developers and the Tax Credit Program. The City has made a commitment to provide $500,000 fron the Redevelopment Housing Set Aside budget and $200,000 from the City's Housing Trust fun( (Inclusionary Housing In-Lieu and Impact Fees) for a construction loan and permanent financing. A below market rate interest loan, offered through a private financial institution, is made available ti low-income households interested in rehabilitating their single family home and who are also able tc qualify for such a loan. In such circumstances, CDBG funds will be leveraged with the resources of private financial institution to provide this type of home improvement loan. Page 10 1995-96 Annual Performance Repoi NO. OF PERSONS ASSISTED 615 (H) ACTIVITY/RECIPIENT DESCRIPTION HOUSEHOLDS/ Brother Benno Foundation Brother Benno Center for Human Development provides food, shelter, and other life necessities to the homeless. 3260 Production Ave. Oceanside Good Samaritan House provides shelter for homeless men. 901 First St. Oceanside homeless men. 2472-2476 Impala Dr. Carlsbad 3138 Roosevelt St., Carlsbad women and their children. 1105 Fifth St., Oceanside children. 2091 E Valley Parkway, #1E, Escondido Shelter and supportive services for women and children Catholic Charities Catholic Charities 193 (P) 457 (P) Operation of La Posada de Guadalupe, a shelter for Community Resource Center Homeless Prevention Program 417 (H) Family Recovery Project Residential treatment facility for pregnant and parenting 0 (HI St. Clare’s Home Shelter and supportive services for homeless women and 2 (HI Women’s Resource Center e 0 CITY OF CARLSBAD FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY families by funding three homeless shelters located in various cities through out the San Diego Nortl: County area. La Posada de Guadalupe, the only Carlsbad homeless shelter, provided shelter, food rest room facilities, and educational programs for 457 homeless men. The Good Samaritan House ir Oceanside provided shelter, food, and case management services for 193 single homeless men. The Family Recovery Center provided transitional housing and supportive services for 36 women an( their children, of which none were from Carlsbad. These women are homeless and are dealing witl substance abuse problems. EYE Counseling and Crisis Services will increase their outreach efforts iI 1996-97 . St. Clare’s Home, was able to provide shelter and provides supportive services to 2 Carlsbac households. The Women’s Resource Center provided emergency shelter, as well as supportivt services, to 82 Carlsbad families who are victims of domestic violence. Casa de Amparo providec shelter to 13 Carlsbad children. For 1995-96, the funding of these various North County shelters assisted these non-profit organization! to provide shelter for 753 homeless persons/families, of which 457 persons were directly assistec through Carlsbad’s only homeless shelter (see note above). The Brother Benno Center for Human Development provided meals, showers, clothing and laundr! facilities to 271 homeless persons from Carlsbad and 615 Carlsbad residents. The Communit! Resource Center offered case management services and emergency assistance to 32 homeless person: and 417 Carlsbad residents. Lifeline Community Services was able to assist 62 Carlsbad household: with various housing services. Four lower-income home owners were provided assistance to rehabilitate their homes. rehabilitated were single family homes. Villa Lorna Apartments offer affordable housing to approximately 24 1 very low-income renter households and 103 low-income renter households. Construction of this project was completed in the Spring of 1996. Of the 344 units available, 336 were occupied by June 30, 1995. However, as oj August 1996, all 344 units have been leased. All homes 2. Section 8 Rental Assistance Program A total of 503 Certificates/Vouchers have been allocated to the Carlsbad Housing Authority for Sectior 8 Rental Assistance. As of August 19, 1996, approximately488 households are receiving Section t rental assistance. The following table represents the number of families (by category) assisted wit1 housing during the reporting period: Table 3.2: Section 8 Rental Assistance - Households Assisted Household Category Description Households Assisted as of 08/19/96 247 Elderly or Disabled/ Handicapped 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 disabilitylhandicap, regardless of age. Page 12 1995-96 Annual Performance Repor CITY OF CARLSBAI) COMPREHENSIVE HOUSING AFFORDABILITY STRATEGk a 0 Household Category Description Households Assisted as of 08/19/96 Disabled/Handicapped Those elderly & non-elderly households with a documented disability /handicap. Non-Elderly Families Families in this category include those households where the head of household is less than 62 years of age. Homeless Households Those elderly & non-elderly households where the head of household has provided documentation of homeless status. 121 222 17 Records are not maintained to determine those households with incomes below 30 percent of thc median family income and those with incomes between 31 percent and 50 percent of the median familj income. Of those 488 very low-income households with Section 8 certificates/vouchers, 51 percent arc elderly or disabled/handicapped, 42 percent (205 households) are small related households, excluding those elderly households, and 19 percent (95 households) are large related households, excluding thc elderly. There are currently 17 households receiving Section 8 rental assistance that were given 2 federal preference for a homeless household. 3. Redevelopment Housing Set-Aside As shown in Table 2.3, a total of $294,719 was deposited into the Redevelopment Low and Moderate Income Housing Fund in Fiscal Year 1995-96. The total of Low and Moderate Income Housing funds actually available for FY 1995-96 was $947,158 (Remaining balance as of 7/30/95 and deposits for FY 1995-96). A total of $98,764 of the available funds was expended from the Redevelopment Low and Moderate Income Housing Fund for planning and administrative expenses. 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. Therefore, for fiscal year 1995-96, no lower or moderate-income households were provided housing assistance through the use of Redevelopment Housing Set-Aside funds. However, Redevelopment Low and Moderate Income Housing Funds were expended in 1994-95 for a construction loan to the affordable Villa Loma Apartment project. This project completed construction in the Spring of 1996 and as of June 30, 1996 336 units had been leased to lower income renter households. 4. San Diego County MCC Program The total amount of MCC credit available to the City of Carlsbad as a participant in the Regional MCC in Carlsbad. It is expected that in 1996-97, the remaining MCC credit will be used to assist 12 additional households to purchase a home in Carlsbad. Program was $582,751.80. Funds were used to assist fourteen first time home buyers purchase a home Table 3.4: Regional MCC Program - Households Assisted Number of Household Income Category Households Low-Income (80% of MFI) 1995-96 Annual Performance v Report Page 13 ESTIMATED NO. ACTIVITY/RECIPIENT DESCRZPTION OF ASSISTED Brother Benno Foundation Brother Benno Center for Human 238 Development provides food, shelter, and other life necessities to the homeless. 3260 Production Ave. Oceanside shelter for homeless men. 901 First St. Oceanside Catholic Charities Good Samaritan House provides 90 ACTUAL NO. OF ASSISTED 615 193 COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY ESTIMATED NO. ACTUAL NO. OF DESCRIPTION OF ASSISTED ASSISTED ACTIVITY/RECIPIENT Catholic Charities Operation of La Posada de 288 457 Guadalupe, a shelter for homeless men. 2472-2476 Impala Dr. Carlsbad 3138 Roosevelt St., Carlsbad pregnant and parenting women and their children. 1105 Fifth St., Oceanside homeless women and children. 2091 E Valley Parkway, #1E, Escondido women and children who are victims of domestic violence. 1963 Apple St. Oceanside neglected or abandoned children. 4070 Mission Ave. San Luis Rey include shared housing, tenant-land relations, discrimination, information and referal and other services. 200 Jefferson Street, Vista - Section 108 Loan Funds to repay Section 108 loan to 344 336 Repayment/Affordable assist the development of the Villa Housing Reserve Fund Loma affordable housing project. West side of El Camino Real between Camino Vida Robles & Alga Road 6421 Tobria Terrace Carlsbad occupied homes. City wide Community Resource Center Homeless Prevention Program 1,140 417 Family Recovery Project Residential treatment facility for 100 0 St. Clare’s Home Shelter and supportive services for 15 2 Women’s Resource Center Shelter and supportive services for 112 82 Casa de Amparo Emergency shelter for abused, 35 13 Life Community Services Comprehensive housing services to 92 62 Residential Rehabilitation Rehabilitation of single family owner 4 4 TOTAL 2,458 2,181 0 0 CITY OF CARLSBAD FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY persons/households benefiting from each of the funded programs can be attributed to a general increase in the number of persons considered homeless, the estimation of clients served by CDBG subrecipients, and possible duplicated counts of clients served. As would be expected, the City did see an increase in the number of homeless persons or persons threatened with becoming homeless because of the current 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 benefiting from their services. E. Documentation of Assistance Provided The Carlsbad Housing Authority has maintained documentation of assistance provided 10 each household receiving assistance during the period between July 1, 1995 and June 30, 1996. 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. F. Other Actions Undertaken 1. Public Policy In an effort to remove or ease the negative effects of public policies affecting the availability of affordable housing in the City of Carlsbad, the City began work on the following activities: a. City Fee Schedules & Project Processing Prior to the current reporting period, the City reviewed and revised, where appropriate: 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 Inclusionary 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. 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 Page 16 1995-96 Annual Performance Report CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY Fees, where the City determines that such an exemption is necessary for the financial feasibility of such a project. In 1993-94, City Council approved Villa Loma (formerly La Terraza), which the City found to be exempt from the requirement to pay the PFF, per City Council Policy 17.5.e. The 138 unit Laurel Tree apartment project was also found to be exempt from the payment of the City's Public Facilities Fee. 0 a b. Flexible Development Standards Prior to this reporting period, the City adopted Ordinance NS-207, which modified the city's existing 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 Inclusionary Housing Ordinance. It has been used in numerous projects reviewed during this reporting period. Site Development Plan permit process to authorize the City to exercise flexibility in reviewing Special C. Second Dwelling 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 Inclusionary Housing obligation. To date, six second dwelling units have received approval and 140 second dwelling units are being proposed to meet various developers' obligation to provide affordable housing under the City's Inclusionary Housing Ordinance. d. Managed Living 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 of August 1996, the City Council has not had the opportunity to consider the adoption of this ordinance. e. product that combines the characteristics of Single Room Occupancy Hotels and studio apartments. As Density Bonus & Density Increase The City's Density Bonus Ordinance, which implements Government Code Section 65913.4 and 65915, has been in effect since April 1994. 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 1,239 low-income affordable units being proposed to satisfy affordable housing requirements of new developments as called for by the City's Inclusionary Housing Ordinance, one project has requested a density bonus through the City's Density Bonus Ordinance. The 344 unit Villa Lorna apartment project received a density bonus pursuant to State density bonus law. 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 1995-96 Annual Performance Report Page 17 e CITY OF CARLSBAD JjOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY 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. Inclusionarv Housing The City's Inclusionary Housing ordinance has been in effect since May 1993. The Inclusionary 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, Villa Loma Apartments consisting of 344 units, has been constructed. g. Inclusionarv In-Lieu Fee As allowed by the Inclusionary Housing ordinance, residential projects with 6 or fewer units may make an "In-lieu'' contribution, consisting of funds, land or some other asset for use in providing housing for lower-income households. The In-Lieu Fee as revised by City Council is $4,515 per housing unit. An account has been established as a repository of the collected In-Lieu Fees. As of August 19, 1996, $44,210 in Inclusionary In-Lieu fees has been collected by the City. All fees collected will be used exclusively to facilitate the construction, preservation, and maintenance of affordable housing. h. Inclusionary Housing Impact Fee As allowed by the Inclusionary 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 Inclusionary Housing ordinance, an Inclusionary 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 19, 1996, the Housing Impact Fee account contained $1,414,139 (does not include earned interest for FY ! 1995-96 and portfolio management fees). All fees collected will be used exclusively to facilitate the construction, preservation, and maintenance of affordable housing. The City has committed to provide $200,000 to the MAAC Project for Laurel Tree Apartments. The $500,000 from Redevelopment Low and Moderate Income Housing Funds and the $200,000 from the Inclusionary Housing Impact fee will be used to provide a construction loan and permanent financing for Laurel Tree Apartments. i. Non-Residential Impact Fee City staff has prepared a study entitled: Economic Nexus Analysis/Housing Linkage Fee - Non- Residential Development. This study examined the relationship between the construction of new, non- residential buildings and the 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 Page 18 1995-96 Annual Performance Report CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY with recommendations regarding the establishment of a non-residential impact fee, has not beer presented or considered by City Council. 0 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 Agency Interchange meetings for North San Diego County. The City also participates in a County wide CDBG Grantees' Coordinator meeting. 3. Intergovernmental Cooperation 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 ninth year of "entitlement status" in the administration of federally funded programs from HUD's 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 continues to demonstrate adequate performance. In June 1995, City Council approved an amendment to the City's existing 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. 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 Housing Resident Initiatives The City of Carlsbad does not have any public housing. 1995-96 Annual Performance Report Page 19 0 0 CITY OF CARLSBAD FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY 6. Lead-Based Paint Hazard Reduction The City of Carlsbad continues to provide all households receiving Section 8 rental assistance 01 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. 7. Affirmatively 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, tenant/landlord mediation, education seminars, and mitigation and/or prevention of housing discrimination practices. HHRA responded to 64 inquiries from tenants and landlords and to 5 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 for the leasing of units in Villa Loma Apartments were mailed in August 1995 to 576 households working or living in Carlsbad and currently on the City's Section 8 Rental Assistance waiting list. c. City Council approved the distribution of a fair housing survey and information to 2,000 randomly selected Carlsbad residents. In November and December 1994, the fair housing survey and fair housing information were mailed to the selected Carlsbad renters and homeowners. The purpose of the survey was to provide residents with information regarding fair housing laws and to determine the level of perceived housing discrimination within the community. The results showed that very few Carlsbad residents perceived there to be impediments to fair housing choice. A more detailed assessment of impediments to fair housing choice within the community has been drafted and will be available for public review and comment in September 1996. G. Community Development Activities 1. Communitv Development 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 $647,000 in new CDBG funds and had $50,621.58 available from previously funded activities that were canceled or completed with a surplus of funds. The table below includes a list of the projects funded, description of the activities, planned available funding (approved for the current FY), total funds actually available (includes balance from previous years), and funds expended for the project. For the FY 1995-96, $372,492 (53 percent) was awarded for non-housing community development activities and $1 16,900 (20 percent) was awarded for program administration. A total of $205,036.83 or 31 percent of the total funds available for non-housing community development activities was expended. Approximately 77 percent of the total funds available for program administration were expended in FY 1995-96. All remaining funds will be expended by September 30, 1996. Page 20 1995-96 Annual Performance Report CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY 0 0 Table 5.1: CDBG Funded Community Development Projects 1995-96 Annual Performance Report Page 21 0 0 CITY OF CARLSBAD FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY the La Posada de Guadalupe homeless All CDBG program funds were allocated to projects or organizations that are located within Carlsbad or provide services to North County residents including residents of Carlsbad. Of those funds specifically allocated to projects and programs operating within Carlsbad, the City has allocated funds not only where there is a need but has also allocated funds to be used throughout the entire city; thereby reducing the concentration of invested funds in any one area of the City. The activities approved for funding under the CDBG program during FY 1995-96, serve low and moderate-income individuals and households from Carlsbad. Table 5.2: CDBG Funded Community Development Activities - Households/Persons Assisted Page 22 1995-96 Annual Performance Report CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY 0 0 Western Institute Foundation for Mental Health is negotiating the purchase of a facility in Oceanside for the Alzheimer’s Day Care Center. WIF for Mental Health requires a larger facility for the Alzheimer’s Day Care Center and their administrative records than its current location. It is expected that.WIF for Mental Health will open escrow on the property in October 1996. The Boys and Girls Club of Carlsbad is in the process of remodeling their Village Branch facility. not begin until early 1997. Join Hands Save a Life has purchased property on the west side of Roosevelt St. in Carlsbad between Pine and Walnut Avenue. Join Hands has also submitted an application for a Redevelopment Permit. Construction will not begin until early 1997. The Girls Club has nearly completed the development of an outdoor recreation area. Construction will be completed in August 1996. The recreational area includes a playground area for the Day Care Center, a multi-purpose court, and a handball wall. 1995-96 Annual Performance Report They have submitted an application for a Redevelopment Permit. It is expected that construction will Page 23 0 0 CITY OF CARLSBAD F;OMPREHENSIVE HOUSING AFFORDABILITY STRATEGY Catholic Charities has purchased a trailer for the administrative offices of the La Posada de Guadalupe homeless shelter. Additionally, Catholic Charities has completed other repairs and renovations to the facility. CDBG funded activities will be reimbursed in September 1996. The City of Carlsbad has proposed to renovate Pine Field. Renovations include repair or replacemen! expected that work will 6ommence in late 1996. of the backstop, bleachers and fencing. This project has experienced delays in construction. It is 2. Public Facilities and Services The City continues to implements its Growth Management Program. Since 1986 Carlsbad has been a “growth management’’ city in which the major public facilities are being carefully planned, financed, and their capacities sized to serve a targeted ultimate population and number of residential units. No new development is approved unless performance standards of eleven public facilities are met. These eleven public facilities include city administration, library, wastewater treatment, parks, drainage, circulation, fire, open space, schools, sewer collection, and water distribution. The Capital Improvements Program (CIP) for FY 1995-96 was developed to implement the City’s General Plan goal of providing comprehensives public services, public facilities, and public building programs for the citizens of Carlsbad concurrent with the need in connection with the development of the City. The development of the CIP is dependent upon the availability of funding weighed against the demand of the facility. 3. Redevelopment Activities In early 1996, the City adopted the Village Redevelopment Master Plan and Implementation Strategy. The Village Master Plan establishes a vision for the Redevelopment Area and specifies strategies to work towards this vision. This Master Plan is currently effective for those properties outside of the Coastal Zone. The City has not yet received approval of the Village Master Plan from the California Coastal Commission and therefore, this Master Plan is not yet in effect in the Coastal Zone of the Redevelopment area. It is anticipated that the California Coastal Commission will consider the Village Master Plan in September/October 1996. Improving the physical appearance of the Village area is one of the goals of the Village Master Plan. The City has completed a feasibility study and concept plan for the Roosevelt Street Beautification Project, from Carlsbad Village Drive to Walnut Avenue. Stimulating property improvements and new development in the Village area is also of high priority. The City continues to work with property owners and developers to facilitate the development of commercial projects which add to the economic vitality of the Redevelopment Project Area. In the Spring of 1996, a national video rental chain, Blockbuster Video, received approval to construct a store in the Village area. Construction began in August 1996. To encourage property/business owners to improve their properties, specifically building facades and the replacement of non-conforming and/or outdated building signage, the City is implementing a Facade Improvement and Alternative Signage Design Assistance program. To date, one business has applied for this program and has received approval for up to $6,600 in reimbursement for facade improvements and new business signage. The City is also in the process of evaluating administrative procedures and policies which may hinder the development of new businesses in the Village area. The City has revised its procedures and Page 24 1995-96 Annual Performance Report CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY guidelines to streamline the administrative processing of Redevelopment Permits. The adopted Master Plan specifies those activities which do not require any Redevelopment Permit. It also allows for the approval of some activities by an Administrative Permit and for new construction and major rehabilitation activities a Minor or Major Redevelopment Permit would be required. Since the adoption of the Master Plan, one new business has received an Administrative Permit for a change in land use. Limited space available to accommodate parking standards can also be a barrier to encouraging ne1 development in the Village Redevelopment Area. The City has initiated a Parking Evaluation and Fee Assessment study to develop a new parking policy for the Redevelopment Project Area. The City is encouraging the development and maintenance of affordable housing projects within the Redevelopment Area. The City has met with property owners of one residential project to explore the possibility of substantially rehabilitating the project and guaranteeing some of the units affordable to lower income households. The City continues to meet with and encourage other property owners of residential rental projects to rehabilitate their projects and guarantee units as affordable for lower income households. 4. Barrio Community Design and Land Use Plan As a result of the City’s community outreach program for the Barrio area, staff and residents determined that major land use issues may have a strong impact on the future development of the Barrio and should be addressed in a community design and land use plan. This Barrio Plan was developed in FY 1995-96. City Council considered this Plan in August 1996 but has not yet taken action. Conflicting opinions of residents and business owners on several issues outlined within the Barrio Plan have been raised. Staff will be reviewing the Plan based upon comments received from residents and business owners and revising the Barrio Plan where appropriate. 5. Economic Development In the same vein of these individual efforts to revitalize and economically enhance the Village Redevelopment Area and the Barrio Community, the City has also embarked on a city wide plan. In December of 1994, the City Council of Carlsbad authorized the development of an Economic Development Strategic Plan. An Economic Development strategic Plan for 1996-2000 was adopted in 1995-96. This Plan identifies roles, strategies and action plans for stabilizing and strengthening the overall economic environment in Carlsbad. Consistent with the Economic Development Strategic Plan, the City has conducted an annual roundtable discussion with Chief Executive Officers, Presidents, and General Managers of businesses located within the City’s industrial corridor. The Economic Development Manager continues to participate with the Carlsbad Chamber of Commerce and CEEC in order to coordinate economic development activities. In order to assist new and expanding businesses in Carlsbad, the City is evaluating administrative procedures and policies that may serve as a barrier to development. The City has completed a feasibility study regarding the implementation of a new category of administrative permits for minor economic development activities. e 0 1995-96 Annual Performance Report Page 25 0 0 CITY OF CARLSBAD FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY PART 11. Assessment of Performance - Housing Activities ASSESSMENT OF ANNUAL PERFORMANCE A. 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. Develop New Construction The City has made considerable progress over the last year, as well as in 1994-95, 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 acquisitiodrehabilitation projects. Several projects amounting to over 1,239 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 1,239 units, 472 units have already been approved by City Council and the 344 unit Villa Loma Apartment project completed in the Spring of 1996. b. The City continues to require compliance with the City's Inclusionary 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 Inclusionary Housing Impact Fee in specified circumstances. In future years, those residential developments subject to the City's Inclusionary 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. c, 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 previously 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. d. 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 Inclusionary Housing Ordinance. It has been used in numerous projects reviewed during this reporting period. e. The City has adopted an Inclusionary Housing In-Lieu Fee and an Inclusionary Housing Impact Fee, as required by the City's Inclusionary Housing ordinance. The In-Lieu Fee and the Housing Impact Fee as amended by City Council is $4,515 per housing unit and $2,925 per housing unit, respectively. Accounts have been established as repositories of the collected fees. As of August 19, 1996, $44,210 in Inclusionary In-Lieu fees have been collected by the City. The and portfolio management fees). All fees collected will be used exclusively to facilitate the construction, preservation, and maintenance of affordable housing. The City has committed to provide $200,000 to the MAAC Project for Laurel Tree Apartments. The $500,000 from Redevelopment Low and Moderate Income Housing Funds and the $200,000 from the Page 26 1995-96 Annual Performance Report Housing Impact Fee account contained $1,414,139 (does not include earned interest for FY 1995-96 CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY Inclusionary Housing Impact fee will be used to provide a construction loan and permanent financing for Laurel Tree Apartments. 0 0 f. City staff has prepared a draft report, Economic Nexus Analysis/Housing Linkage Fee - Non-Residential Development. 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 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. assessed an impact fee linking lower-income jobs created with housing demand. If established, the g. The 344 unit Villa Loma Apartment project was constructed and began leasing units in the Spring of 1996. This housing project included priority processing, modifications of development standards, and subsidization of fees, and City participation, in the form of acquiring the property and leasing it to the development for a nominal fee, and a loan to assist with construction related costs. 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. Of the rental units available, 336 were leased by June 30, 1996. However to date, all units have been leased. 2. Acauisition of Facilities/Housing Units a. The City continues to encourage participation by private organizations in these activities. The City offers financial assistance, when deemed appropriate, as an incentive to maintain and preserve existing affordable housing. 3. a. Provide Moderate and/or Substantial Rehabilitation 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 1995-96, the City has assisted four single family home owners with the rehabilitation of their homes. b. In June 1995, City Council approved an amendment to the City's existing 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. a. Provide Rental and/or Homebuyer Assistance The Carlsbad Housing Authority continued administration of the HUD Section 8 rental The program provides rental subsidies to approximately 503 very low-income assistance program. households. As of August 21, 1995, 488 households were receiving assistance. 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 costs of rental housing 1995-96 Annual Performance Report Page 27 0 0 CITY OF CARLSBAD FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY units and home buyer assistance programs which are available in this region. This Resource Booklet provides basic information about assistance opportunities for home ownership, such as mobilehome park ownership and mortgage programs available from a number of sources. C. The City has developed a housing information packet, which includes information OT rental housing, home ownership opportunities, shared living arrangements, fair housing, and residential rehabilitation program. This information packet is 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 was previously established to provide lower and moderate-income households assistance in purchasing a home. MCCs were provided to fourteen households in 1995-96. The remaining MCC credit will be used to assist ten households, of which two will be of low income, in the upcoming year. Provide Support Facilities and Services The City of Carlsbad Housing and Redevelopment Department continued to administer the federally funded Community Development Block Grant program. A total of 2,181 persons were assisted with housing related services. Based on the Community Development Plan, the City Council awarded the entitlement allocation to projects which benefited affordable housing efforts as well as housing support activities. B. Future Actions The following is a discussion of future actions the City proposes to take, or changes to the City's five- year strategy proposed to make as a result of assessing the City's annual Consolidated Plan performance. 5. a. 1. The City's general policy strategies for affordable housing have not changed since the Consolidated Plan five-year plan was originally developed. The priorities for assistance include: a. Develop new construction; b. Acquisition of facilities/housing; C. Provide moderate/substantial rehabilitation; d. Provide rentaUhomebuyer 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 Consolidated Plan five-year plan (1995-99). The Provide support facilities and services. priorities for assistance of target groups include: a. b. C. 3. The City's general policy strategies for providing affordable housing or supportive housing services and its priorities for target groups by income classification, family category, and tenure will be revised in conformance with the new regulations and requirements for the Consolidated Plan. The Consolidated Plan replaces all current Community Planning and Development (CPD) planning and Very low-income or low-income households; Elderly, non-elderly small related, non-elderly large related households, or all others; and Renter, existing home owner, or first time homebuyer. Page 28 1995-96 Annual Performance Report CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY 0 0 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). 1995-96 Annual Performance Report Page 29 0 e CITY OF CARLSBAD FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY This page is intentionally blank. Page 30 1995-96 Annual Performance Report @ CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY e APPENDIX A Description of Process for Public Review and Comment Consistent with citizen participation and involvement requirements of the Consolidated Plan process, the City made the draft Consolidated Plan Annual Performance Report for Fiscal Year 1995 available for public review and comment for the required 30 day period from August 30 to September 29, 1996. 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 Consolidated Plan Annual Performance Report day public review and comment period and that a public hearing was scheduled for September 12, 1996 before the City's Housing Commission. In addition, the draft Consolidated Plan 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 during the public review and comment period are attached as a summary in Appendix B - Summary of Public Comments of this report. for Fiscal Year 1995-96 was available at five various City facilities throughout the cornunity €or a 30 1995-96 Annual Performance Report Page 31 CITY OF CARLSBAD 0 0 FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY This page is intentionally blank. Page 32 1995-96 Annual Performance Report CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY 0 APPENDIX B Summary of Public Comments No comments received as of September 3, 1996. 1995-96 Annual Performance Report Page 33 0 e CITY OF CARLSBAD j2OMPREHENSIVE HOUSING AFFORDABILITY STRATEGY I This page is intentionally blank I I’age 34 1995-96 Annual Performance Report CITY OF CARLSBAD COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY 0 APPENDIX C City of Carlsbad Affordable Housing Projects 1995-96 Annual Performance Report Page 35 0 0 * r a t 6 VI b u m 905 40; 3gi -4 us a SO4 OX% b(wB Ed4 2 p S 4 (I c c a e t c IdwldaQ) k .- .r : Oak d [I r i e 0 tr k k -d *rl 0 8 ; Urn a,u naouok ad UlkU k a ka au Ea Ern U L a, c .F E P !! b E .,- s a I 0 0 mmu o’p UaG ? 0 0 -pzg III ;r aka, u u ka,k (d (d u Q-rl u U 03 m m a, u Ud tY oaa, k k a, ?k 0 0 rl @a, W W PI mna a, u u u uuw a, a, d kUUl -n 3 a, -rl 0 0 0 k k -rl PI -n 0 06 PI PI LJ U akm a, a, a, a, k k 3 b E k U m kEum Qodu ua ;I u ua ala, -n u1 o(d 3 ah ha, OG60 plrl U-rl EW KI -rl rl 2 *-rl u U a, P14d Ld *a5s 5 -n F; E; 22 d 0“‘ Q,J 4.A 40 do a, -4 kcl 3ld t44d 44 am @E u -rl (u ;I& Jk G3a, 0 0 CI 86 : $ aU-4 KI -ri :2 a, rl d 2 a I Id0 k I oa du du Wa, u -rl u u -4 u Wk -rl \ al -rl \ a, -rl 0 Urn rl -- d 3 -n G 3 -n 3a d (d -4 Ewmm 3 x U -rl uw --rl d a mEa,a, lJ kE m EaE Edf? r: haw d E Uo\o 3 dado mw-rlw 3uEai ;IuL oa, g g !&a, In r: Qa, E 3-2 3 E 243 k k da, utn uaa, uaa, -rl d a, k drl a, k dd d -I4 a, -rl -rl (3 a, -4 -rl a, WG E k uI4 E QUI4 -rl . \ oaoa ?; g O 3m mo oaoa I 6 -4 u *u o\a, U k -n -ri 0 mc k cr w u -ti a, ri x mG (d d3pI -4 0 mw 3uo GO U 0 -4 a, -rf -rl ou (d pled a, k d xu k 00 (do (d NpI -rl k (d E a,o 111 E $ g u $L; Kq koa k (do kr: azo a ZU a~ at -4 d a, 0 m a,W 0- mom I urn m @Id -rl I (d PI *a ~;IH ria OF: a)w a I a,Wd k uzo k-dw Id n 00 .- C 6 OclOA CU IO (dc orn(dr-4 F: rnk F: omzd k CucUa, k -dd3U b=I 000 =I a)WdO 3 Id 01 IdUZr: 01 moo -01 a, u Id k b- Id 4 Id do Id v L; Q; c - 4J - do am - dd tl c v c, rlc)~;m c, wauZ u .da,OZ c, 5 :Oa,c 01 .- v1rd Id cdala,(d (d C4a 0 ua a uu nak Idu u Id -rl d oua -d u u -4 ooa,Id rn ooIdar( KI Cd(d0rd urlnu - &zda,a - EwZU c k aaa, k a m ca a -w Id kWId (d 0 3 kmkE 3 ; wl a rld % rid rim mUdE Z -d.tnm$ 3 ?w - cn v v ldk a0 k 0 a, 30 cd u cdc ma, 5 k Q) k a,ld -rl @UdE d ualdb.2 wa,. 3 dUAO .os$ Q) a, -d -n d sa, kU :goal -AW k cud m xw k-d-ri k a,r: a, >da,OLIld -A d I -rl ld zld z ld-rlu pi n as Q,WA -rl a, a -4 T3uidE am w-4 b-la,,mdrdld U dooc -d -d ld [II [II AC Q) ou a -d 0 ouoa,)rc @A kOd 3 0 u [II-n,+ CCC !x * ado -k3lJld3 a P 0 0 v v t a i (A U 8 E '-7 & .r( F 2 z I Y 0 e - - a a bY ax PI0 a -4 am 2 a,u OF: -ri a -rl rd a0 3u a, rnu - o(d r--l @a0 -4 rl hum 3k uoc m 3 -rl d cu.SEa,a, eo E -4 -n G -d c a,k Ok x 3rd u U a, $k rl -rl a, a,c ord bl '0" E - 0 Id u1 u-drf aa kc mi2 0 0 7;s erl 23 ri rl a, b6ku pI 9 :a5 P -5 d a pla m k r-l a, -rl m am3 Zd u JJdG U rlu wb, d.o i! $0 ii 2 2 J! m9; ;mi 0 -4mtn a k 2 a, a a, kkk kU A u3 ea, : -d 2 plu c 2 3 2 2 00;'; 0 -n u card Uk mu u a, JJ JJ ek dkO ria, : *3 u. 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