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HomeMy WebLinkAbout1998-10-20; City Council; 14892; Application To Purchase Affordable Housing Credits: P 9 8 a % . . p Y =! iz s 0 CITY OF CARLSBAD -AGENDA BILL 4B# /* 89& TITLE- APPLICATION TO PURCHASE AFFORDABLE -’ 10/20/98 HOUSING CREDITS IN THE VILLA LOMA MTG. HOUSING PROJECT DEPT. H/RED (CT 98-02, COLINA ROBLE LLC) RECOMMENDED ACTION: ADOPT Resolution 98-3M as recommended by the Housing Commission, APPROVING a request by Colina Roble LLC. to purchase 4.2 Affordable Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the Colina Roble project under the City’s lnclusionary Housing Ordinance. ITEM EXPLANATION: The Colina Roble project is a 28 unit, single family development on approximately 33 acres. The tentative map and site development plan have been approved by the Planning Commission. The applicant is requesting to purchase affordable housing credits in the Villa Loma Project to satisfy the project’s 4.2 unit inclusionary housing obligation. The City Council is the approval body for the purchase of affordable housing credits. The Colina Roble project has two potential options in satisfying its’ inclusionary housing obligation. The project could potentially construct on-site affordable units or purchase credits. The project is a small subdivision both in terms of the number of units (28) and net developable area (ten acres). Also, the site has physical constraints caused by the large slope areas and the environmental constraints of Encinitas Creek effectively precludes all types of on-site affordable housing Because of the physical constraints of the project site, the applicant has elected to pursue the purchase of affordable housing credits. The City Council has adopted Policies 57 & 58 that govern the sale of affordable housing credits. The policies examine the feasibility of an on-site proposal, the advantages and disadvantages of an off-site proposal, and whether the off-site project advances the City’s housing goals and strategies. In reviewing the applicant’s request, the Housing Commission utilized the criteria contained in the policies in making their recommendation. It is the Housing Commission’s recommendation the project be allowed to purchase credits in the Villa Loma project. FISCAL IMPACT: The Affordable Housing Credit is currently $33,220 per unit. The purchase of 4.2 credits will result in a payment of $139,440 to the City’s Housing Trust Fund. EXHIBITS: 1. City Council Resolution No. wd* 2. Staff Report to the Housing Commission dated, July 9, 1998 w/attachments 3. Excerpts of Housing Commission Minutes dated, July 9, 1998 1 2 3 4 5 6 7 6 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 98-340 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A REQUEST BY COLINA ROBLE LLC., TO PURCHASE 4.2 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE COLINA ROBLE PROJECT UNDER THE CITY’S INCLUSIONARY HOUSING ORDINANCE. APPLICANT: Colina Roble LLC. CASE NO: CT 98-02 WHEREAS, Colina Roble LLC has received approval of Tentative Map CT 98-02 for the development of a 28 unit residential development; WHEREAS, Colina Roble LLC has received a recommendation of approval from the Housing Commission that the City Council approve the purchase of 4.2 affordable housing credits in the Villa Loma housing project to satisfy the inclusionary housing requirement of Tentative Map CT 98-02; WHEREAS, the City Council did hold a public meeting to consider said request for the purchase of Affordable Housing Credits by Colina Roble LLC; WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Council considered all factors relating to the application and request to purchase Affordable Housing Credits: NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. The project is consistent with the goals and objectives of the City of Carlsbad’s Housing Element and Comprehensive Housing Affordability Strategy, the Inclusionary Housing Ordinance, and the Carlsbad General Plan. 3. Based upon the analysis contained within the City Council Staff Report and Housing Commission Staff Report date July 9, 1998, the City Council finds that the off-site satisfaction of the inclusionary housing requirement is in the public interest. 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 27 28 4. That based on the information provided within the City Council Staff Report and the Housing Commission Staff Report and testimony presented during the public meeting of the City Council, the City Council hereby APPROVES a request by Colina Roble LLC to purchase 4.2 affordable housing credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the Colina Roble project under the city’s inclusionary housing ordinance. 5. That the City Council hereby authorizes the City Manager or his designee is authorized to execute the Affordable Housing Agreement in substantially the form presented to the City Council as Exhibit 3 of the Housing Commission Staff Report and to execute such other documents, or take other actions as may be necessary or appropriate to assist the developer in acquiring the Affordable Housing Credits. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 20 th day of _October , 1998 by the following vote, to wit: AYES:Council Members Lewis, Nygaard, Finnila, Kulchin & Hall NOES: None ABSENT: None ABSTAIN: None ATTEST: (SEAL) cc RESO # PAGE2 The City of Cash&ad Housing &z Redewelopment Department AREIPOR’I‘TO THE HOUSXNG+ COMMXSSION S- crrulqD.Raiz Msu¶sqansntAxmlswt DATE: JUNE 11,1998 - CONTINUED TO JULY 9,1998 SUBJECT: CT 98-02 - COLINA ROBLE, LLC. - APPLICATION TO PURCHASE 4.2 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 98-008, recommending that the City Council APPROVE a request by Colina Roble LLC., to purchase 4.2 Affordable Housing Credits in the Villa Loma housing project in order to satis@ the affordable housing obligation of the Colina Roble project under the City’s Inclusionary Housing Ordinance. II. BACKGROUND Colina Roble LLC., is currently processing an application for tentative map (CT 98-02) to develop 28 single family homes on approximately 33 acres. Due to the environmental and topographical constraints of the site, approximately 72% of the site will remain as open space. The project consists of one cull-de- sac street and includes home sites with a minimum parcel size of 10,000 square feet. The development of 28 homes will require the developer to provide 4.2 units of housing affordable to lower income households as required by the City’s Inclusionary Housing Ordinance. It is the applicant’s position that there are significant constraints on the site which would make it difficult to provide the affordable housing units on-site. Therefore, the applicant is requesting to purchase Affordable Housing Credits (“credits”) in the Villa Loma project in lieu of on-site construction. The City’s Inclusionary Housing Ordinance permits off-site satisfaction of an inclusionary requirement through participation in a Combined Inclusionaty Housing Project (“Combined Project”) if the City Council determines that it is in the public interest. Purchase of credits in the Villa Loma project constitutes participation in a Combined Project. There are 143 credits currently available for purchase. Policies Repardirw Off-Site Proiects and Purchase of Affordable Housiw Credits The City Council has adopted two policies which deal with off-site or Combined Projects and the sale of Affordable Housing Credits. Council Policy 57 was developed to establish the criteria to be utilized in order to make the necessary finding that off-site satisfaction of an inclusiomuy housing requirement, when proposed through a Combined Project, is in the public interest. Council Policy 58 was established to determine the price of credits and the mechanism to satisfy a developers obligation under the City’s Inclusionary Housing Ordinance. - CT 98-02 - COLINA ROBLE, LLC. JUNE 11,1998 PAGE 2 DISCUSSION The Council Policies require staff. to evaluate the request for off-site satisfaction of the inclusionary housing obligation and the purchase of credits based upon three primary criteria. The criteria includes: 1) feasibility of on-site proposal; 2) relative advantages/disadvantages of an off-site proposal; and 3) the advancement of housing goals and strategies. The following is a summary of staffs analysis of the criteria for the project. Feasibilitv of On-site Prooosal l The small scale of the developable area, the physical constraints caused by the large slope areas and the environmental constraints of Encinitas Creek effectively precludes all types of on-site affordable housing projects. Also, the small scale of the affordable housing project makes the development economically unfeasible due the significant financial subsidy which would be required for the project. Further, the small scale of the affordable housing project makes it unlikely that the project will generate interest from available funding sources. Relative AdvantagesfDisadvantaees of an Off-site ProRosa 0 The participation in the off-site project will allow the City to recover the costs associated with the development of excess affordable housing units. l The Villa Loma project has locational advantages over the on-site project in terms of direct access to jobs, public transportation, schools, parks as well as other amenities and services due to the being located directly on a major thoroughfare. Advancinp Housine Goals and Stratwies l The recovery of the City’s investment in the Villa Loma Project will provide for additional financial resources which are needed to further affordable housing development in the community. RECOMMENDATION Based upon the analysis of the above criteria the Affordable Housing Policy (staff) Team believes that adequate justification has been provided by the Developer to make the finding that the off-site satisfaction of the inclusionary housing requirement is in the public interest. Therefore, the staff team is recommending that the request to purchase credits be recommended for approval by the Housing Commission. EXHIBITS 1. Housing Commission Resolution No. 98-008 2. Applicant Request to Purchase Credits 3. Draft Affordable Housing Agreement s 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 27 28 HOUSING COMMISSION RESOLUTION NO. 98-008 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, TO RECOMMEND THAT THE CITY COUNCIL APPROVE A REQUEST BY COLINA ROBLE LLC.,TO PURCHASE 4.2 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE COLINA ROBLE PROJECT UNDER THE CITY’S INCLUSIONARY HOUSING ORDINANCE. APPLICANT: COLMA ROBLE, LLC. CASE NO: CT 98-02 WHEREAS, Colina Roble LLC., has made application for Tentative Map CT 98-02 within the City of Carlsbad for the development of a 28 unit residential subdivision; WHEREAS, the subdivision of land for 28 residential units requires the developer to provide 4.2 units of housing affordable to lower income households as required by Carlsbad Municipal Code Section 2 1.85 of the City’s Inclusionary Housing Ordinance; WHEREAS, the Villa Loma housing project was conceived and developed with City participation based on the creation of 184 excess affordable housing units which would be available to satisfy other developers inclusionary housing obligation; WHEREAS, Colina Roble LLC., has requested to purchase Affordable Housing Credits as a means to satis@ their affordable housing obligations as permitted by Carlsbad Municipal Code Section 2 1.85 of the City’s Inclusionary Housing Ordinance and consistent with City Council Policies 57 and 58; WHEREAS, the request to purchase Affordable Housing Credits has been submitted to the City of Carlsbad’s Housing Commission for review and consideration; WHEREAS, said Housing Commission did, on the 1 lth day of June, 1998, hold a public meeting to consider said request for the purchase of Affordable Housing Credits by Colina Roble LLC; WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Commission considered all factors relating to the application and request to purchase Affordable Housing Credits; NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1 2 s 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1. 2. 3. 4. 5. - The above recitations are true and correct. The project is consistent with the goals and objectives of the City of Carlsbad’s Housing Element and Consolidated Plan, the Inclusionary Housin, 0 Ordinance, and the Carlsbad General Plan. Based upon the analysis contained within the Housing Commission Staff Report, the Housing Commission finds that the off-site satisfaction of the inclusionary housing requirement is in the public interest. That based on the information provided within the Housing Commission Staff Report and testimony presented during the public meeting of the Housing Commission on June 11, 1998 the Commission recommends that the City Council APPROVE a request by Colina Roble LLC Corporation to purchase 4.2 affordable housing credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the Colina Roble project under the city’s inclusionary housing ordinance. That the Housing Commission recommends that the City Manager or his designee be authorized to execute the Affordable Housing Agreement in substantially the form presented in E,xhibit 3 to the Housing Commission Staff Report and to execute such other documents, or take other actions as may be necessary or appropriate to assist the developer in acquiring the Affordable Housing Credits. General Conditions: 1. . . . . . . . . . . . . .., . . . . . . . . . Within sixty (60) days of the City Council approval of Developer’s request to purchase Affordable Housing Credits, and prior to receiving Final Map approval, Developer shall execute this Agreement and purchase 4.2 Housing Credits. Execution of this Agreement by the parties and payment of the required fee to the City by the Developer shall fully satisfy the Developer’s affordable housing obligation pursuant to Chapter 21.85 of the Carlsbad Municipal Code and the above-referenced conditions of approval. Upon execution of this Agreement and receipt of the above payment from developer, City will record an appropriate release of the developer’s obligation. HC RESO. NO. 98-008 PAGE 2 7 - PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission of the City of Carlsbad, California, held on the 1 Ith day of June, 1998, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: KATHLEEN DUNN-WELLMAN, CHAIRPERSON CARLSBAD HOUSING COMMISSION DEBBIE FOUNTAIN HOUSING AND REDEVELOPMENT DIRECTOR HC RESO. NO. 98-008 PAGE 3 OFF-S .ND COMBlpdED lNCLU.SlOMARY f. _ ,ING PROJECT ASSESSfvfENT VdORKSi-IEET BACKGROUND I. Applicant Name and Address: COLINA ROBLE, LLC C/O David M. Bentley 3573 East Sunrise Drive, if221 Tucson, AZ 85718 2. Of?-site or Combined Project Name: Villa Loma 3. Description of Project wit% lnclusionary Housing Obligation: a 30 lot, 28 unit R-1-10,000 sq. ft. 'subdivision 28 x 15% = 4.2 units C. Proposed On-site Project Description (ii any): *None . Proposed off-site Project Description: None . Description of On-site Project Constrqints: Colina Roble is a 28 unit subdivision with a minimum lot size of 10,000 sq. ft. with a 4.2 affordable unit requirement, there is no economy in scale because of the size. Also, the large lot size and significant public improvement requiremer will produce a significant price difference between any onsite affordable units and the proposed single family development. Attachment “1” to Council Policy Statement No. 57 C - WORKSHEET ASSESSMENTCONCLUSION (Check appropriate box) 2. ! a. ASSESSM~ cxnEQI.4 1. Feasibilitv of the On-site Proposal. DOES NOT SUPPORT SUPPORTS OFF-Sm OFF-SE PROPOSAL INCONCLUSIVE PROPOSAL a. Are there significant feasibilitv issues due to factors such as project size, site constraints, amount and availability of required subsidy, and competition from multiple projects that make an on-site option impractical? Brief Narrative: Yes, Although growth management calculationjwould-alloy 55 units, because of onsite constraints, only 28 units can be achieved. 72% of the site is steep ~101 sensitive upland habitat or wetlands. I. Will an affordable housing product be difficult to intearate into the proposed market development because of significant price and product type disparity? Brief Narrative: Yes, the future homes will probably be in excess of ,3,000 sq. ft. and be in,the high $300,000 to $500,000 range. A small apartment project of four units .that can rent for affordable rents ($450 to $6002) would not be compatible with the area. . Does the on-site development entity have the capacitv to deliver the proposed affordable housing on-site? Brief Narrative: No, the applicant is a developer and not a builder and is not expirienced in the development of affordable housing. Also, the development of four. affordable units does not appear to be a feasible proposal. Relative Advantaqes/Disadvantaaes of the Off- site Proposal. Does the off-site option offer greater feasibilitv and cost effectiveness than the on-site alternative, particularly regarding potential local public assistance? 2 - WORKSHEET ASSESSMENT CO~‘CLUSION (Check appropriate box) ASSESSU~ CRllERfi Brief Narrative: DOES NOT SUPPORT SUPPORTS OFF-SITE ow-srrE PROP3su INCONCLUSNE PROrnSAL Yes, Villa Loma i+ a successful.project. The applicant participation in Villa Loma would assist the City recover their investment. 1. Does the off-site proposal have location advantaqes over the on-site alternative, such as proximity to jobs, schools, transportation, services; less impact on other existing developments, etc.? Brief Narrative: Yes, Villa Loma is on El Camino Real and near the job center of Carlsbad. Affordable housing onsite would not be convienient to public services. Does the off-site option offer a development entity with the caoacitv to deliver the proposed project? Brief Narrative: Yes, Villa Loma is an existing successful project. Does the off-site option satisfy multiple develooer obiioations that would be difficult to satisfy with multiple projects? Brief Natra tive: Yes, one of the purposes of Villa Loma was to address this question. Advancing Housina Goals and Stratecw Does the off-site proposal advance and/or support City housing goals and policies expressed in the Housing Element, CHAS and lnclusionaty Housing Ordinance? Brief Narrative: Yes, Villa Loma has a large number of units and a diversity of affordable housing stock with its 344 units, DOES NOT SUPFORT SUPPORTS OR=Sm OFF-SfTE PROPOSAL /NCONCXUSNE PRoPosAl. I 1 I 3 _- ldwig Design Group, Inc. COLINA ROBLE PROJECT DESCRIPTION Colina Roble is a proposed 30 lot residential subdivision within LFM Zone 11 in the southeast portion of the City of Carlsbad., It is a 28 unit Rl-I 0,000 square foot minimum lot size standard subdivision located south of the southwest comer of Ranch0 Santa Fe Road and Olivenhain Road. The property consists of 35.4 acres of which only approximately 10 acres, or about 28%, will be developed; the remaining 25i acres, approximately 72% of the site, would remain as natural open space. This development project represents approximately on-half of the development density that is allowed under growth management criteria; 55 units are allowed and 28 units are being requested or a density of 1.6 Dwelling Units per acre where 3.2 is allowed. The southern portion ofthe property is characterized by coast live oak woodlands and steep slopes. The development will cause no impact to the coast live oak habitat and only about four-tenths of an acre of impact to southern mixed chaparral as a result of constructing the access road into the property. Encinitas Creek, a major open space corridor under the proposed Carlsbad Habitat Management Plan (IMP) passes through the northern portion of the property. Development is being kept away from the existing wetlands with only 0.28 of an acre being directly impacted. There is adequate room onsite to mitigate this minor impact. Based on extensive survey results and field meetings with the project biologists and representatives from the City of Carlsbad, the Army Corps of Engineers, the State Fish & Game Department, and the U.S. Fish & Wildlife Service, the manufactured slopes adjacent to the wetlands (Lots 1-19) have been relocated several times from our original plan to avoid habitat impacts and to facilitate additional habitat buffer areas. The top of slope on these lots will have a fence or wall and be the southerly edge of the wetlands buffer. To achieve the habitat buffer setbacks, the alignment of “A” Street adjacent to Lots 3-7 was adjusted in a southerly direction and will require a crib type wall along the south edge of “A” Street. As a result of the sensitive wetlands habitat on the northern portion of the property and the sensitive upland habitat and steep slopes on the southern portion of the property, the access and development options for the property are limited. The only source of access to the development is Ranch0 Santa Fe Road, which runs along the eastern portion of the ownership. In order to properly service the project while preserving the estimated 72% open space and avoiding impact to the property’s sensitive habitat areas, a variance for cul-de-sac length will be required. The project’s cul-de-sac street is 1,500 lineal feet as proposed; the’ standard maximum length is 1,200 feet. Due to the lack of access alternatives, the larger lots, 1,000 feet of single loaded street, and the small project size, we believe this variance request is very reasonable and supportable; a separate justification for this variance is attached. Based on the not-yet-approved Shelley Property, shown as Carlsbad Tract 90-03, this project may necessitate an intersection spacing variance on Ranch0 Santa Fe Road; 500 feet versus the 600 foot standard. An intersection with full left and right turning movements is required for Colina Roble. In light of the project’s limited frontage along Ranch0 Santa Fe Road and the small size of the development, we will request that the project not be required to construct planned widening and related improvements to Ranch0 Santa Fe Road. Instead, we will request that our project pay the required fee established for this area so that the entire section of Ranch0 Santa Fe Road can be improved at one time in the future. In addition to paying the proportionate share fee, we will offer to set aside a portion of the property as a mitigation area for the wetlands impact that will likely occur as a result of the widening of Ranch0 Santa Fe Road where it crosses Encinitas Creek. As part of the Olivenhain Road widening project, the City of Carlsbad recently completed construction of Detention Basin “D” on the northwestern portion of the property. As part of this project, we will request the City to vacate portions of the dike easements and inundation easements that the City acquired as part of the detention basin construction. The construction of Colina Roble will eliminate the need for all or portions of these City easements. The project has five panhandle lots (lots 19,22,23,25, and 26) which integrate well into the project’s overall layout and larger lot design. A separate justification has been prepared for this request. Our project application includes a request to the Council Policy 57 and 58 Committee relative to affordable housing. Included with this transmittal is a letter from the previous housing and redevelopment director in which he recommends that this project be allowed to purchase the required affordable housiig credits in the Villa Loma Project. With 28 residential units proposed, the project’s affordable requirement is 4.2 units (28 x 15% = 4.2). The proposed Carlsbad Trail System Segment Number 55A has not been shown within the boundaries of this project. The siting criteria suggests that the trail could connect with the traffic signal at OIivenhain Road. In addition, Trail Segment 56A is suggested to be a sidewalk/bike lane type of a trail system. Because of the significant wetlands along the north side of Encinitas Creek and its sensitive value as a habitat corridor, it seems unlikely that this would be a good location for a public trail system. We would suggest that the public trail system be in the right-of-way on the west edge of Ranch0 Santa Fe Road to the City of Encinitas Boundary. Overall, we believe the proposed development responds well to the City’s development criteria as we11 as the property’s unique physical constraints while blending a high quality residential housing opportunity with an extraordinary 1eveI of natural resource protection. L-1039.042 l/3/98 a If 1; : if 1 ’ 11 CD\ ,lil I f f* ‘I .ji,q : 4 I I I I I I I I I I DISCLOSURE STATEMENT Applicant’s statement or disclosure of certain ownership interests on all applications which will require discretionary action on the part of the City Council or any appointed Board, Commission or Committee. The following information must be disclosed: 1. APPLICANT List the names and addresses of all persons having a financial interest in the application. fhl ina Babl~: T.T.C David M. Bentley 3573 East Sunrise Dr., f/221 Tucson, AZ 85718 2. 3. 4. OWNER List the names and addresses of all persons having any ownership interest in the property involved. Wiegand Properties Partnership' John Wiegand Harold Wiegand 2352 Altisma Wy. P.O. Box 998 Carlsbad, CA 92009 Dixon. CA 95620 (See pg. 2 for additional owners) If any person identified pursuant to (1) or (2) above is a corporation or partnership, list the names and addresses of all individuals owning more than 10% of the shares in the corporation or owning any partnership interest in the partnership. If any person identified pursuant to (1) or (2) above is a non-profit organization or a trust, list the names and addresses of any person serving as officer or director of the non-profit organization or as trustee or beneficiary of the trust. ,- : 5. Have you had- I than $250 worth of business t. ,. .cted with any member of 4 City staff, Boards, Commissions, Committees and/or Council within the past twelve f 12) months? . cl Yes d I’ No If yes, please indicate person(s): lv.LG?& I - .Person is defined & ““Any’,indivi&fai; .fik, co-p&k&ship, ‘joint. venture, association, social club, fraternal organization, .corporation,.estate,:trust;receiver, syndicate;this and any other county, city ,and .county, city 2 municipality, -district .*or.:other.-*political ..subdivision or .any other group or combination.&ting. as a unit;“. _ . . . ,::. ‘- . -‘,- - . ,. . _ : .;. :. ,’ NOTE: Attach additional sheets if necessary. Signature of applicant/date PAnt or type name 6f ownet 2. Owners - Continued , Carl Wiegand 415 S. Almond Dixon, CA 95620 Jyk+Vl~ w. l?~~AJ-fLEC: Print or type name of applicant Dan Wiegand 359 Via Andalusia Encinitas, CA 92024 RECORDING REQUESTED BY: City of Carlsbad WHEN RECORDED MAIL TO: City of Carlsbad City Clerks Office At&r: Citv Clerk 1200 Carlsbad Village Drive Carlsbad, California 92008 (Space above for Recorder ‘s Use) AFFORDABLE HOUSING AGREEMENT THIS AFFORDABLE HOUSING AGREEMENT (“Agreement”) is entered into this day of , 1998, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to as the “City”), and Colina Roble LLC., (hereinafter referred to as the “Developer”), is made with reference to the following: RECITALS A. Developer is the owner of certain real property in the City of Carlsbad, County of San Diego, State of California, described in “Attachment A”, which is attached hereto and incorporated herein by this reference, and which is the subject of a Tentative Map (CT 9%02), which provides conditional approval of the construction of 28 single family dwelling units (“Project”). B. Condition No . - of Planning Commission Resolution No. J states that this Affordable Housing Agreement shall be entered into between the City and the Developer as a means of satisfying the Developers’ affordable housing obligation (“Affordable Housing Obligation”), as such is defined under Chapter 2 1.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. provides that the Affordable Housing Obligation of four and two-tenths (4.2) units will be satisfied by applying the requirements set forth in this Agreement. NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the mutual covenants contained herein, the parties agree as follows: 1. 2. THE RECITALS ARE TRUE AND CORRECT. SATISFACTION OF AFFORDABLE HOUSING REWIREMENTS THROUGH THE PAYMENT OF AFFORDABLE HOUSING CREDITS. (a) Performance under this Agreement satisfies the Developers’ obligation for affordable housing under Chapter 2 1.85 of the Carlsbad Municipal Code as applied to the land covered by Carlsbad Tract No. 98-02 by reason of the approvals of the Tentative Map of CT 98-08, including Condition No. listed in Planning Commission Resolution No. , and any other applicable approval. (b) The Developer shall pay for four and two-tenths (4.2) Affordable Housing Credits as established by the City and as required by Condition No. of Planning Commission Resolution No. . The fee shall be paid prior to the Developer receiving a building permit for the project. 3. REMEDIES Failure by the Developer to perform in accordance with this Agreement will constitute failure to satis@ the requirements of Chapter 2 1.85 of the Car&bad Municipal Code and Condition No. of Planning Commission Resolution No. . Such failure will allow the City to exercise any and all remedies available to it including but not limited to withholding the issuance of building permits for the lots shown on Carlsbad Tract No. 98-02. 4. HOLD HARMLESS Developer will indemnity and hold harmless (without limit as to amount) City and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as “Indemnitees”), and any of them, from and against all loss, all risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all claims, demands suits, actions, obtained, allegedly caused by, arising out of or retaining in any manner to Developers’ actions or defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. Developer shall obtain, at its expense, comprehensive general liability insurance for development of the (%1,000,000) purchased by the Developer from an insurance company duly licensed to engage in the business of issuing such insurance in the State of California, with a current Best’s Key Rating of not less than A-V, such insurance to be evidenced by an endorsement which so provides and delivered to the City Clerk prior to the issuance of any building permit for the Project. 5. NOTICES All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registed or certified mail, return receipt requested to the party to receive such notice at the address set forth below: TO THE CITY: City of Carlsbad Housing and Redevelopment Department Attn: Housing & Redevelopment Director 2965 Roosevelt Street, Suite B Carlsbad, California 92008-2389 TO THE DEVELOPER: Colina Roble LLC. C/o David Bently 3573 E Sunrise Drive #22 1 Tucson, AZ 85718 Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above. 6. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. 7. DURATION OF AGREEMENT This Agreement shall terminate and become null and void upon the payment of the Affordable Housing Credits, or the repeal, termination, or modification of any applicable ordinance which act would render the Affordable Housing Obligation unnecessary or unenforceable. 8. SUCCESSORS This Agreement shall benefit and bind the Developer and any successive owners of Affordable Housing Lots. 9. SEVERABILITY In the event any provision contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction, the remaining provisions of this Agreement shall nevertheless, be and remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the day and year first above written. DEVELOPER CITY Colina Roble LLC. limited liability company City of Carlsbad, a municipal corporation By: (N=+ By: (Title) By: MARTIN ORENYAK Community Development Director APPROVED AS TO FORM: RONALD R. BALL CITY ATTORNEY A ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY Exhibit No. 3 Minutes of: Time of Meeting: Date of Meeting: Place of Meeting: HOUSiNG COMMISSION 6:00 P.M. JULY 9, 1998 CITY COUNCIL CHAMBERS CALL TO ORDER: Chairperson Wellman called the Regular Meeting to order at 6: 10 p.m. PLEDGE OF ALLEGIANCE: .‘. Commissioner Cnlverley led the pledge of allegiance. ROLL CALL: Present: Chairperson Wellman, Commissioners Calverley, Latas, Noble, Rose, and Walker Absent: Commissioners Escobedo and Scarpelli Staff Present: Debbie Fountain, Housing and Redevelopment Director Craig Ruiz, Management Analyst Leilani Hines, Management Analyst Toni Espinoza, Housing Specialist II Bobbi Nunn , i-lmrh)~ I+o~H ~~~qer<. Jane Mobaldi, City Attorney APPROVAL OF MINUTES: ACTION: Motion by Commissioner Rose and duly seconded, to approve the Minutes of the Regular Meeting of May 14, 1998, as submitted. VOTE: 6-O-O AYES: Calverley, Latas, Noble, Rose, Walker, Wellman NOES: None ABSTAIN: None COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no comments from the audience. CONTINUED NEW BUSINESS: I. CT 98-2 - COLINA ROBLE. LLC. -Application to purchase 4.2 affordable housing credits in the Villa Loma Housing project. Craig Ruiz reviewed the background of the request, which is to develop 28 single-family homes on approximately 33 acres of land. This project is located along the southern border of the City and adjacent to the City of Encinitas. The development of 28 single-family homes will require the development of 4.2 affordable housing units. Because of the constraints of the site, the developers are requesting that rather than provide on-site affordable housing, they are asking if they could instead purchase credits in the Villa Loma Project. Mr. Ruiz explained that whenever somebody wants to purchase credits in the Villa Loma project, there are three items that are reviewed to see if it meets that criteria: I) feasibility of an on-site proposal, 2) advantages and disadvantages of doing an off-site proposal, and 3) advancement of the City housing goals. HOUSING COMMISSlOh ,vlINUTES JULY 9,1998 Page 2 Mr. Ruiz went over the tentative map provided in each Commissioner’s staff report. He explained the site has environ- mental constraints on it and that out of the 33 acres, 70 percent is going to be left in open space. The applicant will only be developing roughly 7 acres with 28 single-family homes on approximately 10,000 sq. ft. lots. In regard to advantages and disadvantages, Mr. Ruiz explained that by buying into the Villa Loma project, the City is able to recover the initial outlay. When small projects purchase credits, the City can use that money on other affordable projects and is able to recoup the initial investment. Mr. Ruiz also pointed out that the Villa Loma project has locational advantages because El Camino Real is located closer to services and employment opportunities than the current project. In addressing the City housing goals, Mr. Ruiz pointed out that the money in the Housing Trust Fund is used for a variety of affordable housing projects. Therefore, if this money was to come into the Housing Trust Fund, it could be used for a variety of affordable housing projects that have yet to be determined. It is Staft’s opinion that the project is suitable to purchase credits in Villa Loma, and is recommending that the Commission recommend to the City Council that the applicant be allowed to purchase 4.2 credits. Chairperson Wellman asked if there were any questions for Staff. There were no questions. Chairperson Wellman invited the applicant to speak. Mr. Bob Ladwig, Ladwig Design Group, 703 Palomar Airport Road, Carlsbad, CA 92008, addressed the Commission and stated that he agreed with the Staff report and how it was presented by Craig Ruiz, and asked that the Commission consider Staff’s recommendation for approval. Mr. Ladwig suggested a change in Condition 1 of the Resolution on the third line, page 2, under General Conditions. Just before the word “purchase”, Mr. Ladwig wished to insert “prior to the issuance of a building permit.” Mr. Ladwig explained that the language would make it consistent with the Housing Agreement. Kathy Van Pelt, the Minutes Clerk, read Condition 1 with the proposed change. Chairperson Wellman opened the item for discussion among the Commission members. There were no questions. Chairperson Wellman opened the item for discussion among the Staff. Mr. Ruiz stated that Staff had seen the letter, a@ agreed that the change is consistent with the Housing Agreement. Chairperson Wellman asked both Staff and the applicant what the purchase price per unit would be. Mr. Ruiz responded that it is presently $32,220. Chairperson Wellman asked some questions about the per unit fee for Villa Loma. Mr. Ruiz replied that originally the fee was $28,000 and every year it increases. He added that the Finance Department reviews the per unit fee, Chairperson Wellman asked if anyone wished to speak on this matter. There were no questions. ACTION: Motion by Commissioner Noble and duly seconded, that the Housing Commission ADOPT Resolution No. 98-008, recommending that the City Council APPROVE a request by Colina HOUSING COMMISSlOI\ +JIINUTES JULY 9,1998 Page 3 VOTE: AYES: NOES: ABSTAIN: Roble LLC.. to purchase 4.2 Affordable Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the Colina Roble project under the City’s Inclusionary Housing Ordinance, with the change read back by the Minutes Clerk. 6-O-O Calverley. Latas, Noble, Rose, Walker, Wellman None None - Request for recommendation of approval to the Planning in order to satisfy the requirements of the Inclusionary rdinance for the creation of fourteen single family lots on the southeast corner of the intersection of trive and Monroe Street, in the northwest quadrant of the city. The two second-dwelling units are located on lots 7 and+, detached from the main unit and will therefore have their own private entry. Each of these units are going to be approxtFately 600 sq. ft. in size and will be one bedroom units, consistent with the Housing Commission’s second dwelling uiti These units have their own private entrance, with living room, bedroom, bathroom, and hall closet. Mr. Ruiz explained that the rent levels, as with all of the area median. Mr. Ruiz added that an Affordable for 55 years, if it were rented. Mr. Ruiz commented that Staff feels this does meet the Element goals. that it meets and advances the City Housing Chairperson Wellman opened the item for discussion among the Commission men&ers. Commissioner Calverley stated that several times Mr. Ruiz stated requirement or could this become a studio, workshop, etc. Mr. Ruiz responded that as with ail second dwelling units, the could remain vacant or family members could IiGe in them for requirement. Mr. Latas commented that there is no mention in the Project applicant plans to satisfy the remainin g .47 unit. provide two second dwelling units. Mr. Ruiz responded that he will have to go back and check the Agreement, and if it is not in the Agreement, it will be added. Chairperson Wellman stated that it is her understanding with second dwelling units that the Ordinance is going to be changed or tightened up, and asked when this was going to take place.