HomeMy WebLinkAbout1997-10-07; City Council; 14366; COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY ANNUAL PERFORMANCE REPORT FOR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FISCAL YEAR 1996-97-
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STRATEGY ANNUAL PERFORMANCE REPORT FOR -
RECOMMENDED ACTION:
Adopt Resolution No. 7 9 d 6 /? approving the City of Carlsbad's
Comprehensive Housing Affordability Strategy (CHAS) Annual Performance Repc
Community Development Block Grant Entitlement Program.
ITEM EXPLANATION:
As required by the federal regulations for the Community Development Block Grar
Entitlement Program, staff has prepared the attached CHAS Annual Performance Rei
for submission to the U.S. Department of Housing and Urban Development (HUD). 1
covered by the attached APR is July 1, 1996 to June 30, 1997.
As a recipient of federal CDBG Entitlement funds, the City of Carlsbad is required to F
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 I
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
addition, all CDBG fund recipients and other interested parties were mailed a notice a
the public review and comment period
The public review and comment period for the APR was initiated on September
Comments will be accepted until 5:30 p.m. on September 22, 1997. A summary of co
any, received during the public review period will be attached as an appendix to the AI
its submittal to the U.S. Department of HUD.
Resolution No. approving the City of Carlsbad's
Comprehensive Housing Affordability Strategy Annual Performance Rep0
Community Development Block Grant Entitlement Program
1996-97.
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e 0 CITY COUNCIL RESOLUTION NO. 97-617
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA TO APPROVE THE SUBMITTAL OF THE 1996-97
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 Development Bloc
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY ANNUAL
(CDBG) funds administered by the US, Department of Housing and Urban Development (HUD);
WHEREAS, a Comprehensive Housing Affordability Strategy Annual Performance R
required by the U.S. Department of Housing and Urban Development, for review of thc
performance in carrying its Annual Strategy and in relationship to meeting the City’s overall fi
priorities and strategies for housing and community development;
WHEREAS, the City Council of the City of Carlsbad has considered the City’s
Comprehensive Housing Affordability Strategy Annual Performance Report for the Cor
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
Carlsbad, California, as follows:
1 . The above recitations are true and correct.
2. That the City of Carlsbad’s 1996-97 Comprehensive Housing Affordability Strategy
Performance Report for the Community Development Block Grant Program i(
approved for submission to the US. Department of Housing and Urban Developmen
3. That the City of Carlsbad published a notice in a local general circulation n
announcing a fifteen (15) day public review and comment period on the
Comprehensive Housing Affordability Strategy Annual Performance Report.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council o
of Carlsbad, California, held on the 7th day of October 1997, by the
vote, to wit:
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e Q AYES: Council Members Lewis, Finnila, Nygaard, Kulchin, and Hall
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
ALETHA L. RAUTENKEUNZ, City Clerk
2
I e 0
CHAS
ANNUAL PERFORMANCE REPORT
JULY 1, 1996 TO JUNE 30, 1997
City of Carlsbad
Housing and Redevelopment Department
I I e e
CITY OF CARLSBAD
CDBG PROGRAM
COMPREHENSIVE HOUSING
AFFORDABILITY STRATEGY (CHAS)
ANNUAL PERFORMANCE PLAN
JULY 1, 1996 TO JUNE 30, 1997
PREPARED BY
THE HOUSING AND REDEVELOPMENT DEPARTMENT
CITY OF CARLSBAD
1200 CARLSBAD VILLAGE DRIVE
CARLSBAD CALIFORNIA 92008
(760) 434-28 11
i 0 0 l, CITY OF CARLSBAD
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
PART I. ANNUAL PERFORMANCE
A. Resources Made Available Within the Jurisdiction for Housing Activities
The following sources of funds were available during Fiscal Year (FY) 1996-97 for the purpose of
providing affordable and supportive housing activities to lower and moderate-income households:
1. Communitv Develonment Block Grant ProPram
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
$618,000 in new CDBG funds and had $13,254.46 available from previously funded activities that
were canceled or completed with a surplus of funds. For the FY 1996-97, $295,790.46 (47 percent)
was awarded for affordable or supportive housing activities. The table below includes a list of the
projects funded, description of the activities, planned available funding (approved for the current FY),
and total funds actually available (includes balance from previous years).
Table 1.1: CDBG Funded Housing Projects - Planned vs. Available Funding
provides food, shelter, and other Ii to the homeless.
House of Martha & Mary d services to homeless
homeless men.
901 First St. Oceanside
Existing balance ($625)
Catholic Charities Operation of La Posada de Guadalupe, a shelter
for homeless men. ‘. Existing Balance ($2,500)
Rehabilitation of La Posada de Guadalupe. ’
Existing Balance ($26,117.57)
2472-2476 Impala Dr., Carlsbad
Community Resource Center Homeless Prevention Program
3138 Roosevelt St., Carlsbad
Family Recovery Project Rehabilitation of a residential treatment facility
for pregnant and parenting women and their
children.
1105 Fifth St., Oceanside
YMCA Oz North Coast A 12 bed residential facility for runaway and homeless youths aged 12-17.
215 Barnes Street, Oceanside
$9,790 $12,290
$0 $26,117.57
$4,850 $4,850
$27,078.46 $27,078.46
$7,810 $7,810
1996-97 Annual Performance Report Page 1
6 . . .
Residential Rehabilitation
TOTAL
West side of El Camino Real between Camino
Vida Robles & Alga Road
6421 Tobria Terrace Carlsbad
Rehabilitation of single family owner occupied $33,853 $117,312.(
homes.
City wide
Existing Balance ($83,459.03)
$295,790.46 $408,492. (
t CITY OF CARLSBA 0
COMPREHENSIVE HOUSING AFFORDABILITY STRATEG
Approximately 90 percent ($2,859,507) of the funds available were budgeted for housing assistanc
payments and 10 percent ($333,293) for program administration. The City of Carlsbad did not recei.c
any additional Section 8 Certificates/Vouchers for FY 1996-97.
Table 1.3: Section 8 Rental Assistance - Available Funding
4. Redevelopment Housing Set-Aside
Redevelopment Housing Set-Aside funds are based on twenty percent of the total annual redevelopme
tax increment received by the Carlsbad Redevelopment Agency. Tax increment revenues are based (
one percent of the property taxes assessed within the Village Redevelopment Area. At least twen
percent of the tax increment revenues are required to be set aside by California Redevelopment Law f
housing purposes for low and moderate-income households.
As shown in Table 1.4, a total oE $409,947 was collected in tax increment set-aside, set-aside interei
and other deposits in Fiscal Year 1996-97. Since Fiscal Year 1981-82, the Redevelopment Agency h
collected a total of $7,136,525 in Low and Moderate Income Housing funds for the creation of housii
affordable to low-income households in Carlsbad.
Table 1.4: Redevelopment-Low and Moderate Income Housing Fund Deposits Summary
2,189,766 2,529,082
1996-97 Annual Performance Report Pagt
' CITY OF CARLSBAD e 0
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
Column Notes:
(a)
(b)
(c)
(d)
(e)
(f)
5.
The Mortgage Credit Certificate (MCC) Program, authorized by Congress in the Deficit Reduction A
of 1984, is an alternative to mortgage revenue bond-backed financing as a means of providing financi
assistance for the purchase of single family housing. In 1985, the State of California adopt<
legislation authorizing local bond issuing agencies to make MCCs available in California. Th
program is designed to primarily benefit first time home buyers of new and existing housing units.
In May 1994, the City of Carlsbad, along with other participating jurisdictions formed the San Diel
County Regional Mortgage Credit Certificate (MCC) Program. This program is administered by tl
County of San Diego on behalf of the participating jurisdictions. As a participant in the Regional MC
Program, the City of Carlsbad was awarded $70,662.50 in MCC credit in December 1996 and I
additional $132,113.75 in January 1997, for a total of $202,776.25. This would provide home buy
assistance to approximately seven (7) households.
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.
San Dieao County Regional MCC Program
Table 1.5: Regional MCC Program - Available Funding
moderate income households to assist in the purchasing of a
6. Housing Trust Fund
With the implementation of the City's Inclusionary Housing Ordinance, the City established a Housir
Trust Fund to collect those fees generated from the Inclusionary Housing In-Lieu fee, the Inclusionai
Housing Impact Fee, and the sale of affordable housing credits to satisfy a developer's inclusiona
housing obligation. All fees collected will be used exclusively to facilitate the constructior
preservation, and maintenance of affordable housing as it particularly relates to the City's Inclusionar
Housing Ordinance.
As allowed by the Inclusionary Housing ordinance, residential projects with 6 or fewer units may mak
an "In-lieu" contribution, consisting of funds, land or some other asset for use in providing housing fc
lower-income households. The In-Lieu Fee as revised by City Council is $4,515 per housing unit. A
account has been established as a repository of the collected In-Lieu Fees. As of June 30, 199
$48,725 in Inclusionary In-Lieu fees has been collected by the City.
Those residential projects where the application for a discretionary permit is deemed complete (
Page 4 1996-97 Annual Performance Rep0
I CITY OF CARLSBA
COMPREHENSIVE HOUSING AFFORDABILITY STRATEG
0
approval is granted prior to May 21, 1993, the effective date of the Inclusionary Housing ordinance, ~
Inclusionary Housing "Impact" Fee will be paid to the City for use in providing housing for lowe
income households. The Housing Impact Fee as adopted by City Council in October 1993 is $2,9:
per housing unit. An account has been established as a repository of the collected Housing Imp:
Fees. As of June 30, 1997, the Housing Impact Fee account contained $2,325,335.
As in the case of the Villa Loma Affordable Apartment project, with financial assistance from the Cii
affordable housing projects may be constructed that exceed a developer's inclusionary housi
obligation. In such circumstances, the City may allow other developers to purchase affordable housi
credits for those affordable units in excess of the original developer's inclusionary housing obligation
satisfy their inclusionary housing obligation. Those revenues generated from the sale of the
affordable housing credits are collected as part of the Housing Trust Fund. As of June 30, 1997,
total of $639,158 has been collected from the sale of affordable housing credits.
Table 1.6: Housing Trust - Revenue Summary
B. Investment of Available Resources for Housing Activities
The following sources of funds were available during Federal Fiscal Year 1994 and were expended
provide affordable and supportive housing activities to lower and moderate-income households:
1.
The activities approved for funding under the CDBG program during FY 1996-97, serve low a1
moderate-income individuals and households from Carlsbad. A total of $292,783.29 or 42 percent
the total funds available for affordable or supportive housing related activities was expended. TI
following table summarizes the affordable or supportive housing projects funded by the CDB
program:
Community Development Block Grant Program
Table 2.1 : CDBG Funds Expended for Housing Activities
provides food, shelter, and other life necessities
to the homeless.
Good Samaritan House provides shelter for
homeless men.
901 First St. Oceanside
1996-97 Annual Performance Report Page
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t CITY OF CARLSBAI 0
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGJ
with substance abuse issues, and their children.
During 1996-97, the City allocated $2,910 in CDBG funds to the Brother Benno Foundation. Thi
showers, laundry facilities, food, clothing, case management, and counseling services. Another shelte
operated by Brother Benno Foundation, the House of Martha and Mary, received $2,425.
The Women’s Resource Center provides emergency and transitional shelter, as well as supportiv,
case management services for the Alternatives to Abuse emergency shelter for women and thei
children.
YMCA received $7,910 to provide emergency shelter and supportive services for runaway, nea
homeless, and homeless youths.
The City allocated $4,850 to the Carlsbad office of the Community Resource Center. The Communi?
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 $4,850 to provide a comprehensive housing
services program for Carlsbad residents. Services include shared housing, tenant-land relations
discrimination, information and referral and other services. Funds are occasionally used to assist
homeless persons and families obtain shelter for the night.
Foundation operates five homeless shelters in the North County and a day shelter, which provide
services, for victims of domestic violence. Carlsbad’s CDBG funds were used specifically to providc
The Single Family Residential Rehabilitation Program is administered by the County of San Diego or
behalf of the City of Carlsbad. The Rehabilitation Program offers low income homeowners an Interes
Subsidy Loan, a Deferred No Interest Loan for up to $20,000, a $1,000 Weatherization Grant and/or :
$1,000 grant for elderly/handicapped persons. Funds expended in 1996-97 include $2,406.06 for thost
costs related to administration of the program and $30,233.19 for loans/grants.
The Affordable Housing Reserve Fund was established for the acquisition of property to be develope(
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 Lorna (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 1996-97 were for the repayment of the City’s 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.
1996-97 Annual Performance Report Page 7
i CITY OF CARLSBAD 0 0
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
2. HOME Investment Partnership Program
HOME funds can be used for new construction, rehabilitation or acquisition of rental housinj
rehabilitation of owner occupied housing, home buyer assistance, and tenant based rental assistance
in FY 1996-97 to increase affordable housing opportunities in the community.
AS a participant in the County of San Diego HOME Consortia, the City of Carlsbad recelved $194,OF
Table 2.2: Section 8 Rental Assistance - Available Funding
e owners of single family homes
FY 1996-97 represents the first year of the City’s participation in the County of San Diego HOM
Consortium Program. Due to administrative issues, the implementation the City’s HOME funde
management and implementation of HOME funded programs, and subsequently amended th
Cooperative Agreement with the County for administration and implementation of the City’s Sing1
Family Residential Rehabilitation Program.
The Community Resource Center was to administer the Security Deposit Assistance Program on beha
of the City of Carlsbad. However, due to the limited resources available to the Community Resourc
Center, they will be unable to implement the Program. City staff will be evaluating the possibility c
the Housing and Redevelopment Department administering this Program in conjunction with the City‘
Section 8 Tenant Based Rental Assistance Program.
3. Section 8 Rental Assistance Program
The Carlsbad Housing Authority provides rental assistance for very low-income households. Thi
federally funded program provided enough assistance to subsidize up to 503 households. For FY 1996
97, the Carlsbad Housing Authority received and expended a total of $2,857,507 for housing assistanc
payments, and $326,793 for program administration costs.
As of June 30, 1997, 479 households were participants in the City’s Section 8 Tenant-Based Renta
Assistance Program. A majority of those households (50 percent) reside within Census Tract 179.00 o
the City of Carlsbad, which has the highest concentration of low income and ethnichacia1 minorit
households within the City. A total of 86 households reside outside of the City’s jurisdiction (port-out)
The federal regulations allow for the households to qualify for rental assistance and live in any eligibl
housing unit within the United States (portability). In addition, 15 households receiving rent2
assistance from other Housing Authorities have chosen to reside in Carlsbad (port-in).
The Carlsbad Housing Authority is addressing the effects of impaction by targeting other areas withi1
the City of Carlsbad for future rental assistance.
program has been slow. In June 1997, Council approved the Cooperative Agreement for th
Page 8 1996-97 Annual Performance Repor
I CITY OF CARLSBA 0
COMPREHENSIVE HOUSING AFFORDABILITY STRATEG
Table 2.3: Section 8 Rental Assistance Funds Expended
households.
staff salaries, benefits, maintenance/operating costs to
operate the Section 8 Program. Resources available
represent income earned.
General fund monies used to supplement earned
income.
Operating Costs Program administrative costs for Housing Authority $326,285 $366,7Z
$40,449
4. Redevelopment Housing Set-Aside Funds
As shown in Table 2.4, a total of $409,947 was deposited into the Redevelopment Low and Modera
Income Housing Fund in Fiscal Year 1996-97. The remaining balance of Low and Moderate Incon
Housing funds is $1,716,033 as of 6/30/97.
In Fiscal Year 1996-97, $77,917 was expended from the Redevelopment Low and Moderate Incon
Housing Fund. Expenditures for the fiscal year were for planning and administrative expenses whic
are necessary for the production, improvement, or preservation of housing affordable to lower-incon
households. In order to develop affordable housing in Carlsbad, it is necessary for staff to mei
regularly with local developers, non-profit organizations, and other interested parties who are willin
and able to assist the City in meeting its housing needs.
Table 2.4: Redevelopment Low and Moderate Income Housing Fund Expenditures Summary
21,946
35,676
84,562
284,734
322,234 106,083
31 7,673 107,275
330,515 125,715
800,162 1,180,989 2,101,086 500,000
49,577 2,189,766 2,529,082 2,279,729
1996-97 Annual Performance Report Page
1 CITY OF CARLSBAD a 0
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
Column Notes:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
The Housing & Redevelopment Department has worked with numerous for-profit and non-prof
developers on potential new construction and acquisition/rehabilitation projects. Eighteen projec
amounting to approximately 1,262 units are currently being proposed to satisfy affordable housir
requirements of new developments as called for by Section 21.85 of the City's Municipal Code. Of tf
1,262 units, 592 units have been approved to date by City Council and the 344 unit Villa Loma proje
constructed and occupied in the Spring of 1996.
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.
Total encumbrances of account by fiscal year.
Account Balance (deposits-expenses-encumbrances) by fiscal year.
Table 2.5: Proposed lnclusionary Dwelling Units
+ Estimates for units under consideration are based on staff's current understanding of the developer'
intentions. 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 Housin
Trust fund (Inclusionary Housing In-Lieu and Impact Fees) for a construction loan and permanen
financing for Laurel Tree. MAAC Project has applied for Federal Tax Credit financing. They ar
expected to close escrow on the property by September 1997.
Additionally, in 1994-95, the City expended Redevelopment Low and Moderate Income Housing Fund
commitment of $2,200,000 in Redevelopment Set-Aside funds to assist with the costs of producini
these affordable units.
5.
In FY 1996-97, the City received a total of $202,776.25 in MCC credit. Additionally, all MCC credi
available in FY 1995-96 was not expended. Therefore, a balance of $211,338.84 was carried over tc
for a construction/development loan for the 344 unit Villa Loma apartment project, as part of a tota
San Diego County Regional MCC Program
FY 1996-97.
Page 10 1996-97 Annual Performance Repor
t @ CITY OF CARLSBAl e
COMPREHENSIVE HOUSING AFFORDABILITY STRATEG
Twelve home buyers were provided MCCs to assist them in purchasing a home in Carlsbad.
MCC credit available. The City has also expended $678.36 from Housing Trust funds for the City
proportionate share of the administrative costs of the Regional MCC Program. An addition,
Assistance to these twelve home buyers resulted in the expenditure of $262,759.25 of the City's tot:
$1,585.37 was encumbered for additional administrative expenses.
Table 2.6: Regional MCC Program - Program Expenditure Summary
low and moderate income households to assist
in the purchasing of a home.
0
neral Fund designated
6. Housing Trust Fund
In FY 1996-97, the City had available a total of $4,635,354.16 in the Housing Trust Fund. Variou
sources of revenue contribute to the City's Housing Trust Fund, including the Inclusionary Housin
Impact and Housing In-lieu fees, other Inclusionary Housing contributions in the form of the sale c
affordable housing credits and the Carlsbad Home Buyer Assistance Program, General Fund transfer
for the administrative costs of operating the City's MCC Program, and interest less portfolio fees.
Table 2.7: Housing Trust - Program Expenditure & Encumbrance Summary
In Fiscal Year 1996-97, $52,920.55 was appropriated from the Housing Trust Fund for planning an(
administrative expenses which are necessary for the production, improvement, or preservation o
housing affordable to lower-income households. In order to develop affordable housing in Carlsbad, i
is necessary for staff to meet regularly with local developers, non-profit organizations, and othe
interested parties who are willing and able to assist the City in meeting its housing needs.
Housing Trust funds were reserved for various programs and projects. All revenues received for thc
1996-97 Annual Performance Report Page 1
t CITY OF CARLSBAD 0 e
j2OMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
Carlsbad Home Buyer Assistance Program and MCC Program Administration are to be expende
specifically for these programs. Housing Trust funds are reserved for several affordable housin
projects including the Laurel Tree Apartment project and Sambi Seaside Heights Affordable Housin
project. Additionally, the City has encumbered funds for the City's contribution to the Vis1
Regional Winter Shelter.
7. Leveraging of Available Resources.
The City's policy is to leverage, to the maximum extent feasible, the use of funds available in tk
development of affordable housing and the maintenance and preservation of existing housin
throughout the entire city. The City supports the use of CDBG, HOME, and Redevelopment Set-Asic
funds for predevelopment activities and "gap financing" by private and non-profit entities in the]
efforts to develop affordable housing.
All CDBG program and Redevelopment Housing Set-Aside funds are leveraged with other sources c
income, such as other federal, state, local and private funds. For organizations allocated CDB(
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 138 unit affordable Laurel Tree housing project to be developed by MAAC Projec
will use a variety of financing sources including contributions by private developers and the Tax Cred
Program. The City has made a commitment to provide $500,000 from the Redevelopment Housing St
Aside budget and $200,000 from the City's Housing Trust fund (Inclusionary Housing In-Lieu an
Impact Fees) for a construction loan and permanent financing.
A below market rate interest loan, offered through a private financial institution, is made available t
low-income households interested in rehabilitating their single family home and who are also able ti
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.
Bank of America is in the process of developing a Carlsbad Home Buyer Assistance Program (CHAP
in response to their mandatory inclusionary housing obligation. Bank of America will be providin,
"silent" second mortgage loans to low income home buyers. Additionally, all administrative an1
marketing expenditures are the responsibility of Bank of America.
C. Households or Persons Assisted by Housing Activities
The following sources of funds were expended during Fiscal Year 1995 and provided affordable an'
supportive housing activities for lower and moderate-income households:
1.
In 1996-97, a total of 1,983 low and/or moderate-income households and/or persons were assiste
through various North County shelters and programs funded in part with Carlsbad's Communit!
Development Block Grant funds. The following table represents the number of persons/familiei
assisted with housing and/or supportive services during the reporting period:
Community Development Block Grant Program
Page 12 1996-97 Annual Performance Repor
NO. OF
PERSONS
ASSISTED
675 (P)
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
women and their children.
3255 Carolyn Circle Oceanside
901 First St. Oceanside
House of Martha & Mary The House provides shelter and services to homeless
Good Samaritan House provides shelter for homeless men.
Operation of La Posada de Guadalupe, a shelter for
16 (P)
Good Samaritan House 46 (P>
411 (P) Catholic Charities
homeless men.
2472-2476 Impala Dr. Carlsbad
3138 Roosevelt St., Carlsbad
women and their children.
1105 Fifth St., Oceanside
Community Resource Center Homeless Prevention Program 292 (P)
10 (H) Family Recovery Project Residential treatment facility for pregnant and parenting
YMCA Oz North Coast 12 bed residential facility for runaway and homeless
* CITY OF CARLSBAD 0 0
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
The Women’s Resource Center provided emergency shelter, as well as supportive services, to 7
Carlsbad families who are victims of domestic violence.
For 1996-97, the funding of these various North County shelters assisted these non-profit organization
to provide shelter for 910 homeless persons/families, of which 411 persons were directly assiste
through Carlsbad’s only homeless shelter (see note above).
The Brother Benno Center for Human Development provided meals, showers, clothing and laundr!
facilities to 317 homeless persons from Carlsbad and 675 Carlsbad residents. The Cornmunit;
Resource Center offered case management services and emergency assistance to 88 homeless person,
and 204 Carlsbad residents. Lifeline Community Services was able to assist 81 Carlsbad household
with various housing services.
Four lower-income home owners were provided assistance to rehabilitate their homes.
rehabilitated were single family homes.
Villa Loma Apartments offer affordable housing to approximately 241 very low-income rente
households and 103 low-income renter households. Construction of this project was completed in th
Spring of 1996. All 344 units have been leased as of June 30, 1997.
2. HOME Investment Partnership Program
FY 1996-97 represents the first year of the City’s participation in the County of San Diego HOME
Consortium Program. Due to administrative issues the implementation the City’s HOME fundec
program has been slow. In June 1997, Council approved the Cooperative Agreement for thc
management and implementation of HOME funded programs, and subsequently amended thc
Cooperative Agreement with the County for administration and implementation of the City’s Sin@
Family Residential Rehabilitation Program.
The Community Resource Center was to administer the Security Deposit Assistance Program on behal
of the City of Carlsbad. However, due to the limited resources available to the Community Resourcc
Center, they will be unable to implement the Program. City staff will be evaluating the possibility o
the Housing and Redevelopment Department administering this Program in conjunction with the City’s
Section 8 Program.
3.
A total of 503 CertificatesiVouchers have been allocated to the Carlsbad Housing Authority for Sectior
8 Rental Assistance. As of August 27, 1997, approximately 473 households are receiving Section E
rental assistance. The following table represents the number of families (by category) assisted witk
housing during the reporting period:
All home
Section 8 Rental Assistance Program
Table 3.2: Section 8 Rental Assistance - Households Assisted
head of household is 62 years of age or older or where the
Page 14 1996-97 Annual Performance Repori
v 0 ' CITY OF CARLSBAI
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGI
--
Records are not maintained to determine those households with incomes below 30 percent of tht
median family income and those with incomes between 31 percent and 50 percent of the median familj
income. Of those 473 very low-income households with Section 8 certificates/vouchers, 39 percent art
elderly or disabled/handicapped, 34 percent (197 households) are small related households, excludini
those elderly households, and 42 percent (90 households) are large related households, excluding tht
elderly. There are currently 10 households receiving Section 8 rental assistance that were given L
federal preference for a homeless household.
4. Redevelopment Housing Set-Aside
As shown in Table 2.3, a total of $409,947 was deposited into the Redevelopment Low and Moderatt
Income Housing Fund in Fiscal Year 1996-97. The remaining balance of Low and Moderate Incorn(
Housing funds is $1,716,033 as of 6130197.
A total of $77,917 of the available funds was expended from the Redevelopment Low and Moderatc
Income Housing Fund for planning and administrative expenses. In order to develop affordablc
housing in Carlsbad, it is necessary for staff to meet regularly with local developers, non-profii
organizations and other interested parties who are willing and able to assist the City in meeting its
housing needs. Therefore, for fiscal year 1996-97, no lower or moderate-income households were
provided housing assistance through the use of Redevelopment Housing Set-Aside funds.
5.
The total amount of MCC credit available to the City of Carlsbad as a participant in the Regional MCC
Program was $202,776.31. Funds were used to assist twelve first time home buyers purchase a home
in Carlsbad. It is expected that in 1997-98, the remaining MCC credit will be used to assist 4
additional households to purchase a home in Carlsbad.
San Dieno County MCC Program
Table 3.3: Regional MCC Program - Households Assisted
6. Housing Trust Fund
As shown in Table 2.7, a total of $4,635,354.16 was available from the City's Housing Trust Fund in
Fiscal Year 1996-97. The total of undesignated Housing Trust funds actually available for FY 1996-97
was $2,477,784.16.
1996-97 Annual Performance Report Page 15
ACTIVITY/RECIPIENT
Brother Benno Foundation
Catholic Charities
ESTIMATED NO. ACTUAL NO. OF
Brother Benno Center for Human 220 675
Development provides food, shelter,
and other life necessities to the
homeless.
3260 Production Ave. Oceanside
Good Samaritan House provides 90 46
shelter for homeless men.
901 First St. Oceanside
DESCRIPTION OF ASSISTED ASSISTED
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGI
ESTIMATED NO. ACTUAL NO. OF
Catholic Charities Operation of La Posada de 360 41 1
ACTIVITY /RECIPIENT DESCRIPTION OF ASSISTED ASSISTED
Guadalupe, a shelter for homeless
men.
2472-2476 Impala Dr. Carlsbad
Foundation, the House provides
shelter and services to homeless
women and their children.
3255 Carolyn Circle Oceanside
3138 Roosevelt St., Carlsbad
House of Martha & Mary Operated by Brother Benno 13 16
Community Resource Center Homeless Prevention Program 482 292
Family Recovery Project Residential treatment facility for 61 10
pregnant and parenting women and
their children.
1105 Fifth St., Oceanside
runaway and homeless youths aged
215 Barnes Street, Oceanside
women and children who are victims
of domestic violence.
1963 Apple St. Oceanside
include shared housing, tenant-land
relations, discrimination, information
200 Jefferson Street, Vista
assist the development of the Villa
Loma affordable housing project.
West side of El Camino Real between
Camino Vida Robles & Alga Road
6421 Tobria Terrace Carlsbad
occupied homes.
City wide
YMCA Oz North Coast A 12 bed residential facility for 23 33
12-17.
Women's Resource Center Shelter and supportive services for 110 71
Life Community Services Comprehensive housing services to 90 81
and referral and other services.
Section 108 Loan Funds to repay Section 108 loan to 344 344
Repayment/ Af fordable
Housing Reserve Fund
Residential Rehabilitation Rehabilitation of single family owner 10 4
TOTAL 1,803 1,983
” CITY OF CARLSBAD e 0
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
The actual number of homeless persons/households assisted did not meet the goal established in thc
Consolidated Plan Annual Plan. The decrease or increase in the number of homeles:
persons/households benefiting from each of the funded programs can be attributed to a general increasc
in the number of persons considered homeless, the estimation of clients served by CDBG subrecipients
and possible duplicated counts of clients served.
E. Documentation of Assistance Provided
The Carlsbad Housing Authority has maintained documentation of assistance provided to eacl
household receiving assistance during the period between July 1, 1996 and June 30, 1997. Thl
provisions of the Section 8 program require files to be maintained for each household assisted wit1
federal Section 8 Rental Assistance Funds. In addition, provisions of the program require annua
recertification of all program participants for compliance with current eligibility criteria. The criteri
includes evaluation of changes in income, family composition, and compliance with housing qualit
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 o
affordable housing in the City of Carlsbad, the City began work on the following activities:
a. City Fee Schedules & Proiect Processing
Prior to the current reporting period, the City reviewed and revised, where appropriate: 1) variou:
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 whid
have been identified by the development community as having a negative impact on their efforts tc
develop affordable housing in Carlsbad.
Because the City’s Inclusionary Housing Program affects all new residential subdivisions , and becausc
of the variety of land use and financing tools which the City has made available to assist with meetinj
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 problem
to be defined and resolved early in the process. Importantly, this consultation enables staff and thi
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 tc
the City for review and approval, it is assigned to an interdepartmental team to be expedited througk
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 comprehensivc
evaluation of the entire organization, including its mission, goals, programs, and procedures. Fron
this effort, many changes are expected that will increase the effectiveness and efficiency by which thc
City processes all development proposals. One particular area undergoing evaluation is the fast tracE
process for affordable housing.
As allowed by City Council Policy Number 17, housing projects, which provide dwelling unik
affordable to lower-income households may be exempt from the payment of the City’s Public Facilitie!
Fees, where the City determines that such an exemption is necessary for the financial feasibility of sucl
a project. In 1993-94, City Council approved Villa Loma (formerly La Terraza), which the City founc
to be exempt from the requirement to pay the PFF, per City Council Policy 17.5.e. The 138 uni
Page 18 1996-97 Annual Performance Repor
CITY OF CARLSBAI
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGI
Laurel Tree apartment project was also found to be exempt from the payment of the City's Public
e
Facilities Fee.
b. Flexible Development Standards
Prior to this reporting period, the City adopted Ordinance NS-207, which modified the city's existinj
Site Development Plan permit process to authorize the City to exercise flexibility in reviewing specia
project designs for affordable housing on a case-by-case basis. Often deviations from the normall!
required development standards are necessary to increase density and assist in the financial feasibilit:
of developing low-income affordable housing.
This ordinance has proven to be an important tool in implementation of the City's Inclusionary Housin; Ordinance. It has been used in numerous projects reviewed during this reporting period.
C. Second Dwelling Unit Ordinance
The City revised the existing Second Dwelling Unit Section of its Municipal Code in June 1994. Thc
ordinance provides much greater flexibility for developers and existing home owners interested ir
incorporating second dwelling units into newly constructed single family residences to satisfy thei
Inclusionary Housing obligation. To date, five second dwelling units have been constructed, 27 seconc
dwelling units are proposed for construction, and 143 have been approved to meet various developers
obligation to provide affordable housing under the City's Inclusionary Housing Ordinance.
pursuing the construction of these units. Some developers have expressed their interest ii
d. Managed Living Unit Ordinance
In June 1994, the City Housing Commission recommended approval of an ordinance to enable thc
development of "Managed Living Units". Managed Living Units provide an alternative housiq
product that combines the characteristics of Single Room Occupancy Hotels and studio apartments. As
of August 1997, the City Council has not had the opportunity to consider the adoption of this
ordinance.
e. Density Bonus & Density Increase
The City's Density Bonus Ordinance, which implements Government Code Section 65913.4 anc
65915, has been in effect since April 1994. The Density Bonus Ordinance permits a "minimurr
increase of at least 25 percent over the number of apartments within the existing structure or structure!
proposed for conversion" or "25 percent over either the Growth Management Control Point of tht
applicable General Plan designation or the otherwise maximum allowable residential density a:
specified by the applicable master plan or specific plan, at the time of application." In return, tht
developer would be guaranteeing that a minimum of 50 percent of the units for seniors; 20 percent o
the units for low-income households or 10 percent for very low-income households. In accordanct
with provisions of the Ordinance, these units must remain affordable for a minimum of 30 years.
To compliment the City's ordinance implementing State density bonus law, the City Council adopted
amendments to the Land Use Element of the General Plan. These amendments allow the City to grant
an increase in density above maximum permitted by the General Plan through a Site Development Plan,
during the approval of which the City conducts a review of certain defined location and compatibility
criteria. These amendments were re-affirmed by the City Council in August 1994 by the adoption of
comprehensive revisions to the General Plan.
f. Inclusionary 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
1996-97 Annual Performance Report Page 19
e CITY OF CARLSBAD 0 e
J=OMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
Plan area, Specific Plan area, and all other residential developments of 7 or more dwelling units mus
be occupied and affordable to lower-income households.
During the reporting period, the City has approved several subdivisions which are subject to the nev
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 Apartment
consisting of 344 units, has been constructed.
g. 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 demand
for low-income affordable housing and quantified this demand. The report further calculated ;
theoretical maximum "justified pure nexus housing impact fee" that might be charged for nev
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, togethei
with recommendations regarding the establishment of a non-residential impact fee, has not beer
presented or considered by City Council.
2. Institutional Structure
a. The nine-member Housing Commission continues to meet once a month to assist ir
facilitating the development of affordable and supportive housing activities. The Housing Commissior
reviews and makes recommendations to the City Council on affordable housing projects and housini
policies, programs, and regulations.
b. The City has been engaged in a number of network building activities with governmenta
and private for-profit and non-profit sector. The City's Housing and Redevelopment Direct01
continues to represent the City and the region on the Advisory Council to the San Francisco Distric
Federal Home Loan Bank Affordable Housing Program. The City is also represented on the Nortl
County Coastal Coalition for the Homeless, the Community Housing Resource Board, and thc
Community Agency Interchange meetings for North San Diego County. The City also participates in ;
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 Developmenl
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 tenth year of "entitlement status" in the administration of federal13
funded programs from HUD's CDBG program. Prior to Entitlement status, the City was involved wit1
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 administei
and implement a single family residential rehabilitation program on behalf of the City. The City wil
continue to contract with the County of San Diego to administer and implement this program as fund!
Page 20 1996-97 Annual Performance Repor
e CITY OF CARLSBAC
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGE
0
become available and the County continues to demonstrate adequate performance.
In June 1997, City Council approved an amendment to the City’s existing Residentia
Rehabilitation program agreement with the County of San Diego’s Housing Authority to also includc
administration of a rental rehabilitation program on behalf of the City of Carlsbad. The City i
currently developing the necessary administrative policies and procedures for the implementation of thc
rental rehabilitation assistance program.
d. The City continues to participate with the County of San Diego and other San Diegc
County jurisdictions in a regional Mortgage Credit Certificate Program. All participating jurisdiction
meet on a quarterly basis to discuss issues and share resources related to the MCC program or othei
first time home buyer programs.
e. The City has been meeting on a periodic basis with other North County communitiec
and social service providers to evaluate the possibility of developing a regional entry level, servicc
enhanced homeless shelter. A subcommittee has been evaluating possible sites for the shelter in thc
Vista area. To date no site has been determined. Discussions will continue into FY 1997-98. It i:
anticipated that an application for funding under the U.S. Department of Housing’s Supportive Housing
Grant will be made in July 1998.
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.
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.
All rehabilitation activities funded through the City’s CDBG Program are provided with informatior
and examined for chipping and flaking paint. Appropriate measures are taken for testing and
abatement.
7. Affirmativelv Furthering Fair Housing
a. The City, through the use of funds allocated under the Community Development Block
Grant Entitlement Program for administrative expenses, has renewed its agreement with Heartland
Human Relations & Fair Housing Association (HHRA). HHRA provides fair housing services, whicf
includes counseling, tenandlandlord mediation, education seminars, and mitigation and/or prevention of
housing discrimination practices.
HHRA responded to 41 inquiries from tenants and landlords and to 7 possible discrimination
complaints. HHRA also provided fair housing information throughout the City and conducts education
seminars to help local residents understand their housing rights and to help landlords and owners
understand their responsibilities.
b. Fair housing information was mailed in May 1997 to households and landlords
participating in the City of Carlsbad’s Section 8 Tenant Based Rental Assistance Program.
1996-97 Annual Performance Report Page 21
’ CITY OF CARLSBAD 0 e
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
G. Community Development Activities
1. Community Development Block Grant Program
Community Development Block Grant (CDBG) funds are received from the U.S. Department o
Housing and Urban Development on an annual basis. The City of Carlsbad was entitled to receiw
$618,000 in new CDBG funds and had $13,254.46 available from previously funded activities tha
were canceled or completed with a surplus of funds.
The table below includes a list of the projects funded, description of the activities, planned availabll
funding (approved for the current FY), total funds actually available (includes balance from previou
years), and funds expended for the project. For the FY 1996-97, $341,093 (55 percent) was awardec
for non-housing community development activities and $1 10,493 (18 percent) was awarded fo
program administration.
A total of $253,251.65 or 33 percent of the total funds available for non-housing cornmunit:
development activities was expended. Approximately 68 percent of the total funds available fo~
program administration were expended in FY 1996-97. All remaining funds will be expended bj
September 30, 1997.
Table 5.1 : CDBG Funded Community Development Projects
and other services for seniors.
disabled within the City.
Day Care Center
13528 Madison Street, Carlsbad
Page 22 1996-97 Annual Performance Repor
' CITY OF CARLSBAP
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGJ
0
All CDBG program funds were allocated to projects or organizations that are located within Carlsbaa
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 1996-97, serve low and
moderate-income individuals and households from Carlsbad.
1996-97 Annual Performance Report Page 23
‘ CITY OF CARLSBAD e e
FOMPREHENSIVE HOUSING AFFORD ABILITY STRATEGY
Table 5 2: CDBG Funded Community Development Activities - Households/Persons Assisted
Western Institute Foundation for Mental Health purchased a facility in Oceanside for the Alzheimer’z
Day Care Center in December 1996. WIF for Mental Health required a larger facility for thc
Alzheimer’s Day Care Center and their administrative records.
The Boys and Girls Club of Carlsbad is in the process of remodeling their Village Branch facility.
Rehabilitation will be limited to interior improvements. It is expected that construction will not begir
until late 1997.
Join Hands Save a Life has purchased property on the west side of Roosevelt St. in Carlsbad betweer
Page 24 1996-97 Annual Performance Repor
I ’ CITY OF CARLSBAI e
COMPREHENSIVE HOUSING AFFORDABILITY STRATEG‘
Pine and Walnut Avenue. Join Hands has also submitted an application for a Redevelopment Permit
Construction will not begin until early 1998.
The Girls Club has completed the development of an outdoor recreation area. Construction WE
completed in August 1996. The recreational area includes a playground area for the Day Care Centei
a multi-purpose court, and a handball wall. Other work to include the creation of more usable spac
will not begin until early 1998.
2. Public Facilities and Services
The City continues to implements its Growth Management Program. Since 1986 Carlsbad has been
“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, Nl
new development is approved unless performance standards of eleven public facilities are met. Thes
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 1996-97 was developed to implement the City‘
General Plan goal of providing comprehensives public services, public facilities, and public buildin
programs for the citizens of Carlsbad concurrent with the need in connection with the development c
the City. The development of the CIP is dependent upon the availability of funding weighed against th,
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 ti
work towards this vision.
In September 1996, the California Coastal Commission approved the Master Plan which also serves a
the local Coastal Plan for the Coastal Zone within the Village Redevelopment Area.
Improving the physical appearance of the Village area is one of the goals of the Village Master Plan
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 o
commercial projects which add to the economic vitality of the Redevelopment Project Area.
To encourage property/business owners to improve their properties, specifically building facades an(
the replacement of non-conforming and/or outdated building signage, the City is implementing i
Facade Improvement and Alternative Signage Design Assistance program. To date, six businesse
have applied for this program and one business has received reimbursement for facade improvement
and new business signage, with five approvals pending.
The City is also in the process of evaluating administrative procedures and policies which may hinde
the development of new businesses in the Village area. The City has revised its procedures ani
guidelines to streamline the administrative processing of Redevelopment Permits. The adopted Mastei
Plan specifies those activities which do not require any Redevelopment Permit. It also allows for thc
approval of some activities by an Administrative Permit and for new construction and majo
rehabilitation activities a Minor or Major Redevelopment Permit would be required.
Since the adoption of the Master Plan, three new businesses have received an Administrative Permit fo
a change in land use. In addition, other businesses have received administrative permits for othe
Page 2f 1996-97 Annual Performance Report
‘I a a ’ CITY OF CARLSBAD
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
improvements to their buildings or site.
Limited space available to accommodate parking standards can also be a barrier to encouraging ne7
development in the Village Redevelopment Area. The City has completed a Parking Evaluation and Fe
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 th
Redevelopment Area. The City has met with property owners of one residential project to explore th
possibility of substantially rehabilitating the project and guaranteeing some of the units affordable t
lower income households. The City continues to meet with and encourage other property owners c
residential rental projects to rehabilitate their projects and guarantee units as affordable for lowc
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 resident
determined that major land use issues may have a strong impact on the future development of th
Barrio and should be addressed in a community design and land use plan. This Barrio Plan wa
developed in FY 1996-97. City Council considered the adoption of this Plan in August 1996.
However, due to conflicting opinions of residents and business owners on several issues outlined withi
the Barrio Plan, the Plan was disapproved by Council.
5. Economic Development
In the same vein of these individual efforts to revitalize and economically enhance the ViIIag
Redevelopment Area and the Barrio community, the City has also embarked on a city wide plan. I
December of 1994, the City Council of Carlsbad authorized the development of an Economi
Development Strategic Plan.
An Economic Development Strategic Plan for 1996-2000 was adopted in 1996-97. This Plan identifie
roles, strategies and action plans for stabilizing and strengthening the overall economic environment i:
Carlsbad.
Consistent with the Economic Development Strategic Plan, the City has developed a communit,
promotion and marketing plan. The City continues to conduct an annual roundtable discussion wit,
Chief Executive Officers, Presidents, and General Managers of businesses located within the City’
industrial corridor. The Economic Development Manager has participated with the Carlsbad Chambe
of Commerce and CEEC in order to coordinate economic development activities. Other activitie
include the development of promotional materials highlighting the positive aspects of the communit
and maintenance of a comprehensive market database for the City .
In order to assist new and expanding businesses in Carlsbad, the City is evaluating administrativ
procedures and policies that may serve as a barrier to development. The City has completed :
feasibility study regarding the implementation of a new category of administrative permits for mino
economic development activities. Additionally, the City has implemented a fast tracking process fo
engineering plan checks of economic development projects.
Page 26 1996-97 Annual Performance Repor
CITY OF CARLSBAI
COMPREHENSIVE HOUSING AFFORDABILITY STRATEG
d) 0
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 perio
in achievement of the City's overall five year strategy objectives and priorities for affordable housin
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 1995-96, in implementin;
various programs and adopting ordinances/policies which set the regulatory and incentive stage fo
construclion of affordable housing.
a. The City worked with numerous for-profit and non-profit developers on potential ne7
construction and acquisition/rehabilitation projects. Several projects amounting to over 1,262 ne7
housing units are being proposed to satisfy affordable housing requirements of new developments a
called for in Section 21.85 of the City's Municipal Code. Please see Appendix C to this report for
list of projects (approved and pending). Of the 1,262 units, 592 units have already been approved b
City Council and the 344 unit Villa Lorna Apartment project completed in the Spring of 1996.
b. The City continues to require compliance with the City's Inclusionary Housinl
Ordinance, which requires the reservation and affordability of housing units for lower-incoml
households in residential projects and the payment of an In-lieu or Inclusionary Housing Impact Fee ii
specified circumstances. In future years, those residential developments subject to the City'
Inclusionary Housing Ordinance will be the principle means by which the City will achieve progress 01
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 residentia
project will reserve and make affordable housing units for moderate and lower-income household
under a Citywide Residential Density Bonus Program. In addition, the City previously adoptec
amendments to the Land Use Element of Carlsbad' s General Plan to permit additional density increase
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 allov
development plan for affordable housing projects. This ordinance has proven to be an important tool ii
implementation of the City's Inclusionary Housing Ordinance. It has been used in numerous project:
reviewed during this reporting period.
modifications in development and design standards through application for approval of a sitt
e. The City has adopted an Inclusionary Housing In-Lieu Fee and an Inclusionary Housinj
Impact Fee, as required by the City's Inclusionary Housing ordinance. The In-Lieu Fee and thc
Housing Impact Fee as amended by City Council is $4,515 per housing unit and $2,925 per housinj
unit, respectively. All fee,
collected will be used exclusively to facilitate the construction, preservation, and maintenance o
affordable housing.
The City has committed to provide $700,000 to the MAAC Project for Laurel Tree Apartments. A
total of $500,000 from Redevelopment Low and Moderate Income Housing Funds and $200,000 frorr
the Inclusionary Housing Impact fee will be used to provide a construction loan and permanenl
financing for Laurel Tree Apartments.
Accounts have been established as repositories of the collected fees.
1996-97 Annual Performance Report Page 2;
% 0 a ' CITY OF CARLSBAD
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
f. City staff has prepared a draft report, Economic Nexus Analvsis/Housina 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 no
been presented or considered by City Council. Depending upon a review of the findings of the draf
report and City Council direction, non-residential uses, such as commercial and industrial uses, may bi
assessed an impact fee linking lower-income jobs created with housing demand. If established, thi
funds from the non-residential impact fee will be deposited into a City account exclusively devoted tc
facilitate the construction, preservation, and maintenance of affordable housing.
g. The 344 unit Villa Loma Apartment project was constructed and began leasing units i
the Spring of 1996. This housing project included priority processing, modifications of developmen
standards, and subsidization of fees, and City participation, in the form of acquiring the property an(
leasing it to the development for a nominal fee, and a loan to assist with construction related costs, 0
the 344 units, 103 units are affordable at 60 percent of the area median and 241 units are affordable a
50 percent of the area median. All 344 rental units were leased by June 30, 1997.
2. Acquisition of FacilitiedHousing 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 preservc
existing affordable housing.
3. Provide Moderate and/or Substantial Rehabilitation
a. The City of Carlsbad continues to contract with the County of San Diego to administe
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 fund:
become available and the County continues to demonstrate adequate performance.
From funds allocated in 1996-97, the City has assisted four single family home owners with thf
rehabilitation of their homes.
b. In June 1996, City Council approved an amendment to the City's existing Residentia
Rehabilitation Program agreement with the County of San Diego's Housing Authority to also includt
administration of a rental rehabilitation program on behalf of the City of Carlsbad. The City workec
with one rental property owner to provide assistance for the rehabilitation of the rental units.
However, due to financial considerations, the owner did not participate in the program.
4. Provide Rental and/or Home buyer Assistance
a. 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 June 30, 1997, 473 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 units and home buyer assistance programs which are available in this region. This Resource Booklei
provides basic information about assistance opportunities for home ownership, such as mobilehome
park ownership and mortgage programs available from a number of sources.
Page 28 1996-97 Annual Performance Repori
@ CITY OF CARLSBAD
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
The City has developed a housing information packet, which includes information on
rental housing, home ownership opportunities, shared living arrangements, fair housing, and residential
interested non-profit organizations providing referral or case management services to lower-incomc
households.
0
c.
rehabilitation program. This information packet is distributed to nearby college campuses and other
d. A regional Mortgage Credit Certificate (MCC) program was previously established tc
provide lower and moderate-income households assistance in purchasing a home. MCCs werc
provided to twelve households in 1996-97. The remaining MCC credit will be used to assist foul
households, of which one will be of low income, in the upcoming year.
5. Provide Support Facilities and Services
a. The City of Carlsbad Housing and Redevelopment Department continued to administei
the federally funded Community Development Block Grant program. A total of 1,983 persons wert
assisted with housing related services. Based on the Community Development Plan, the City Counci
awarded the entitlement allocation to projects which benefited affordable housing efforts as well a:
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 Plar
performance.
1. The City's general policy strategies for affordable housing have not changed since tht
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.
e.
2. The City's general priorities for target groups by income classification, family category
Provide rental/home buyer assistance; and
Provide support facilities and services.
and tenure have not changed since the adoption of the Consolidated Plan five-year plan (1995-99). Thr
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 bc
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
application requirements with a single submission. The four CPD formula programs subject to these
requirements include Community Development Block Grants (CDBG), HOME Investment Partnership5
(HOME), Emergency Shelter Grants (ESG), and Housing Opportunities for Persons with AIDS
(HOPWA).
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 home buyer.
1996-97 Annual Performance Report Page 2!
CITY OF CARLSBAD e e
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
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Page 30 1996-97 Annual Performance Repor
' CITY OF CARLSBAI
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGJ
0
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 1996 availabl
for public review and comment for the required 15 day period from September 7 to September 22
1997. A notice was also published in a local general circulation newspaper and notices mailed tc
interested parties to inform the public that the City of Carlsbad's Consolidated Plan Annua
Performance Report for Fiscal Year 1996-97 was available at five various City facilities throughout thl
community for a 15 day public review and comment period. In addition, the draft Consolidated Plai
Annual Performance Report was distributed for review to persons and/or organizations requesting ;
copy of this document.
All citizen comments which were received during the public review and comment period are attachec
as a summary in Appendix B - Summary of Public Comments of this report.
Page 31 1996-97 Annual Performance Report
TI CITY OF CARLSBAD 0 0
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
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Page 32 1996-97 Annual Performance Repor
CITY OF CARLSBAI
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGI
.I 0
APPENDIX B
Summary of Public Comments
No comments have been received as of September 4, 1997.
1996-97 Annual Performance Report Page 3:
1< ' CITY OF CARLSBAD 0 0
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
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Page 34 1996-97 Annual Performance Repor
I< 0 ' CITY OF CARLSBAI
COMPREHENSIVE HOUSING AFFORDABILITY STRATEGJ
APPENDIX C
City of Carlsbad
Affordable Housing Projects
1996-97 Annual Performance Report Page 3:
e 0
s (9 ' CITYOFCARLSBAD
j2OMPREJXENSIVE HOUSING AFFORDABILITY STRATEGY
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Page 36 1996-97 Annual Performance Repor
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Page 42 1996-97 Annual Performance Repor
@ CITY OF CARLSBAI
COMPREHENSIVE HOUSING AFFORDABILITY STRATEG7
I .L e m
APPENDIX D
City of Carlsbad
CHAS Annual Performance Report Table 1
1996-97 Annual Performance Report Page 4
1’ * CITYOFCARLSBAD e e
FOMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
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Page 44 1996-97 Annual Performance Repor