HomeMy WebLinkAbout1998-11-10; City Council; 14937; REQUEST FOR APPROVAL OF AN AFFORDABLE HOUSING AGREEMENT AMENDMENT FOR FIFTY AFFORDABLE SECOND DWELLING UNITS WITHIN THE RANCHO CARRILLO MASTER PLANIlJ
"5-" -"- @ITY OF CARLSBAD -AGE AI A BILL
ST FOR APPROVAL OF AN AFFORDABLE
AFFORDABLE SECOND DWELLING UNITS WITHIN THE
RECOMMENDED ACTION:
That the City Council ADOPT Resolution No. 98 , to APPROVE an Affordable Housinc
Amendment to allow for the development of fifty affordable second dwelling units to satisfy a F
inclusionary housing requirement for the Rancho Carrillo Master Plan.
ITEM EXPLANATION:
The Rancho Carrillo Master Plan allows for the development of 1,816 total housing units. Pu
City's lnclusionary Housing Ordinance, 15% of these units must be affordable to households i
San Diego County Median Income. Of the 1,816 total units, 272 are required to be affor
income households.
The developer of the project, Continental Homes, has elected to provide the required afford:
units in three phases. The first phase affordable housing project was approved by the Cit!
March 3, 1998. The initial approval allows for the development of a 116 unit apartment projec
of Village B. The 11 6 affordable units allow Continental Homes to construct a total of 775 t-
,375
In the second phase of affordable housing development, Continental Homes proposes to c
(50) second dwelling units scattered throughout the Master Plan area in a total of seven of th
residential villages. The request to build second dwelling units represents approximately
developer's total affordable housing obligation. To allow the second dwelling units to be coi
Continental Homes' Inclusionary Housing requirement, the Developer must receive apF
amended Affordable Housing Agreement and Site Development Plan.
Site Development Plan for Second Dwelling Units in the Rancho Carrillo Master Plan
The Site Development Plan submitted for the second dwelling units identifies the locations ai
design for the units. A total of 19 of the second dwelling units will be constructed within Villas
the first phase of Q (Q-1). These units will range in size from 587 to 616 square feet, anc
be constructing the units together with the single family homes within the noted villages. The r
second dwelling units will be constructed within Villages G, K, M, Q-2, Q-4 and R. The IC
prototypical designs have been provided for these units. These units will range in size from
feet to 640 square feet. Since the builders have not yet been selected for this secor
development (31 second dwelling units), the developer provided six prototypical designs for
The builder will be allowed to select one of the six prototypical designs. All units will hav
separate entrance, a hook-up for washer and dryer, a bathroom, kitchen area, some storagf
off-street parking. Additional information on the development of the proposed second dwel
provided within the attached staff report to the Housing Commission.
AB# 14.737 0 0
Page 2
On August 27, 1998, the Housing Commission recommended to the Planning Commission
Development Plan be approved for the Rancho Carrillo Master Plan to allow the second dwell
October 7, 1998, the Planning Commission approved the Site Development Plan (SDP98-12;
second dwelling units within the Villages noted and according to the designs submitted as par'.
Attached for review are the minutes from the August 27'h Housing Commission and the
Planning Commission hearing.
Affordable Housing Agreement for Rancho Carrillo Master Plan
The Affordable Housing Agreement, together with the SDP, includes specific information
affordable housing is to be provided and the timing for its construction as related to
development. The lnclusionary Housing Ordinance authorizes the Community Developmen
execute affordable housing agreements, except in cases where a policy decision is necessar
developer has proposed a substantial number (50) of second dwelling units to be used tc
requirements of the lnclusionary Housing Ordinance, the Community Development Director ii
the proposed Agreement to the City Council for final action on the policy decision as to whethl
Developer is permitted to satisfy the affordable housing obligation through the developmer
dwelling units.
The proposed amendment to the Rancho Carrillo Master Plan Affordable Housing Agreeme
the developer to final maps within the Master Plan area for a total of 1,158 housing units.
1,158 housing units, 992 units will be sold at market-rate while 166 (116 apartments and
dwelling units) will be restricted to lower income households. As proposed, the second dwelli
comply with the Second Dwelling Unit Ordinance which does not require the homeowner to rl
However, if the unit is rented, the monthly rental rate must be set at a rate affordable to i
whose income is at 80% of the San Diego County Median. Based on current income data
mean that the rent could not exceed $695 per month for a one person household. The t
however, would not be required to income qualify the tenant under the proposed agreement.
With regards to development phasing, the Amended Affordable Housing Agreement increases
of market rate units that may be developed prior to the initiation of construction of the
apartment units. However, while the total number of units have increased, the percentage
under the original Affordable Housing Agreement have not changed. In the original Affordat
Agreement, the Developer was permitted to construct 225 market rate units, or 34%, prior tl
construction of the affordable apartment project. The Amended Agreement increases the
market rate housing units to 400, or 34%, prior to beginning construction of the affordable
project. The Amended Agreement also increases the total number of market rate units tl
constructed prior to the completion of the affordable units. Under the first Agreement, the deb
permitted to construct 500 market rate units (76%) prior to completion of the affordable apartm
The current proposal will allow for the development of 754 units (76%). At this time, it is antic
the affordable apartment project will be under construction by December 1, 1998. It is impori
that the second dwelling units will be constructed concurrently with the market rate single far
Attached as Exhibit No. 2 is a chart which summarizes the phasing as a result of thf
Agreement.
Housing Commission Recommendation
On August 27, 1998, the Housing Commission approved Resolution No. 98-13, recommendir
of the amendment to the Affordable Housing Agreement by a vote of 5-2 (Walker, Dur
opposed). It should be noted, however, that the Housing Commission did again express con
the actual availability of the units for rent and the fact that the homeowners were not requirec
AB# 17931 0 *
Page 3
qualify the tenants. The Housing Commission was concerned that the units might not be mal fur rent and that tenants with upper incomes could possibly reside within the units and receive
of the restricted rents. The Housing Commission minutes from the August 27'h meeting are
review.
Staff Recommendation
It is staffs recommendation that the City Council accept the recommendation of the Housing (
and approve the request by the developer to amend the Rancho Carrillo Master Plan Afforda
Agreement to allow for the construction of second dwelling units. If the Agreement is ap
developer will be allowed to use the second dwelling units to meet a portion of their afforda
obligation for the Rancho Carrillo Master Plan. The proposed Amended Affordable Housing A
attached for Council review and action.
ENVIRONMENTAL REVIEW:
An Environmental Impact Report was approved by the City Council for the entire Master Plan
1993 (EIR 91-04). No further environmental review is required as part of the approval of the
Housing Agreement
FISCAL IMPACT:
No fiscal impact is anticipated as a result of the proposed amendment to the Rancho Carrillo I
to allow for second dwelling units.
EXHIBITS:
1. City Council Resolution No. 98-375
2. Chart Summarizing Development Phasing for Affordable Units.
3. Housing Commission Staff Report dated, August 27, 1998.
4. Excerpts of Housing Commission Minutes, dated August 27, 1998.
5. Excerpts of Planning Commission Minutes, dated October 7, 1998.
6. Amended Affordable Housing Agreement for Rancho Carrillo Master Plan.
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CITY COUNCIL RESOLUTION NO. 98-375
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, TO APPROVE AN AFFORDABLE
HOUSING AGREEMENT AMENDMENT TO ALLOW FOR
THE DEVELOPMENT OF FIFTY AFFORDABLE SECOND
DWELLING UNITS TO SATISFY A PORTION OF THE
INCLUSIONARY HOUSING REQUIREMENT FOR THE
RANCHO CARRILLO MASTER PLAN.
APPLICANT: CONTINENTAL HOMES
CASE NO: SDP 98- 12
WHEREAS, Continental Homes is the master developer of the Rancho Carrillo Mas1
residential master planned community which will upon buildout include a maximum of 1,8 16 1
units; and
WHEREAS the development of 1,816 total residential units will require the developmi
residential units affordable to low income households as required by Carlsbad Municipal COC
21.85 of the City’s Inclusionary Housing Ordinance; and
WHEREAS, Carlsbad Municipal Code Chapter 21.85 requires the developer of a r
development to receive approval of an Affordable Housing Agreement which details
requirements of the Inclusionary Housing Ordinance shall be met; and
WHEREAS, on February 3, 1998, the City Council approved an Affordable Housing A
which provided for the development of a 116 unit affordable apartment project for the first
development within the Rancho Carrillo Master Plan; and
WHEREAS, Continental Homes is proposing to construct 50 second dwelling units a
to satisfy an additional portion of their affordable housing obligation as permitted by Carlsbad 1
Code Section 21 .X5 of the City’s Inclusionary Housing Ordinance; and
WHEREAS, the City of Carlsbad Housing Commission did, on the 27th day of Augl
hold a special public meeting to consider the developer’s request to amend their Affordable
Agreement and to allow the construction of fifty (50) second dwelling units as a means to
portion of their affordable housing obligation; and
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CC RESO. NO.
Page 2
WHEREAS, at said special public meeting, upon hearing and considering all testimo
of all persons desiring to be heard, said Housing Commission considered all factors relati
request and approved said amended Affordable Housing Agreement; and
WHEREAS, the City of Carlsbad Planning Commission did, on the 7th day of S
1998, hold a public hearing to consider the developer’s request to construct fifty (50) second
units to satisfl their inclusionary housing obligation; and
WHEREAS, at said public hearing, upon hearing and considering all testimony, if i
persons desiring to be heard, said Planning Commission considered all factors relating to sa
and approved said Site Development Plan; and
WHEREAS, the City Council did hold a public meeting to consider the developer’
amend their Affordable Housing Agreement by allowing for the construction of fifty (5C
dwelling units as a means to satisfy an additional portion of their affordable housing obligation
WHEREAS, at said public meeting, upon hearing and considering all testimony, if a
persons designing to be heard, said Council considered all factors relating to the request::
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
California, as follows:
1.
2.
The above recitations are true and correct.
The project is consistent with the goals and objectives of the City of Carlsbad’s
Element and Consolidated Plan, the Inclusionary Housing Ordinance, and the
General Plan.
The project will provide a total of 50 second dwelling units which will be renteu
affordable to low income households. The project, therefore, has the a
effectively serve the City’s housing needs and priorities as expressed in the
Element and the Consolidated Plan.
3.
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CC RES0 NO. 98-375
Page 3
4. That based on the information provided within the City Council and
Commission Staff Reports, the testimony presented during the public meeting 1
Council and Housing Commission and the Conditions of Approval contained
City Council hereby APPROVES an Affordable Housing Agreement Ame
allow for the development of fifty affordable second units within the Rand
Master Plan to satisfy an additional portion of the developer’s obligation
City’s Inclusionary Housing Ordinance.
5. That the City Council hereby authorizes the Community Development Direc
City Manager to execute the Affordable Housing Agreement Amen
substantially the form presented to the Housing Commission on August 27.
reviewed by the City Council, subject to final review and approval by the City,
PASSED, APPROVED, AND ADOPTED at a regular meeting of
Council of the City of Carlsbad, California, held on the L day of -Y / 1998 by the j
vote, to wit:
10 th November
AYES: Council Members Lewis, Finnila, Kulchin & Hall
NOES: None
ABSENT: Council Member Nygaard
ABSTAIN:
ATTEST:
(SEAL)
Final Certificate of Occupancy
must be issued for 11 6 rental
units and rent restricted at the
affordable rates.
Total
project. The market rate
units will be single family
homes.
238 21 Yo All affordable apartment
units must be complete
prior to the release of
additional building permii
market rate and 92
affordable units.
market rate
building permits
1,158 units 100% Allows for a total of 525
LAI1lulL 3 0 0
vehpinenb Department
'I
Stap Debbiz Fyntain
Hoiising R: Redevelopment Director -
DATE: August 27,199s
SUBJECT: SDP 95-12 AFFORDABLE SECOND UNITS AT RANCHO
CARRTLLO - REQUEST FOR RECOMR/IENDATION OF
APPROVAL TQ THE PLANNING CBMRI1[ISSICBN AND CITY
COUNCIL OF A SITE DEVELOPMENT PLAN AND
AFFORDABLE HOUSING AGREEMENT AiMENDMENT FOR 50
AFFORDABLE SECOND UNITS IN THE RANCHO CAIUULLO
MASTER PLAN.
1. RECOMMENDATION
That the Mousing Commission ADOPT Resolution No. 9S-0 13, recommending
APPROVAL to the Planning Commission and City Councii of the Rancho
Carrillo Affordable Housing Agreement and Site Development Plan SDP 98-12
showing the locations and design of 50 affordable second units in the Rancho
Carrillo Master Plan.
11. PROJECT BACKGROUND
The Rancho Carrillo Master Plan was approved by City Council on October 21,
1997. The purpose of the Master Plan is to provide for the orderly development
of the Rallcho Carrill0 sits, while preserving the environmental resources of the
area. For planning purposes, the Rancho Carrillo Master Plan is divided into 19
villages. The Master Plan identifies the allowable type and intensity of land uses
in each viilage and provides general development and design standards,
requirements, and the method by which the Rancho Carrillo Master Plan will be
implemented.
The Rancho Carrillo Master Plan is estimated to include a total of 1,816 total
housing units. Pursuant to the City's Inclusionary Housing Ordinance, 15% of
these units must be affordable to households at 80% of the San Diego County
Median Income. This means that if Continental Homes does eventually build a
total of 1,816 units, 1,544 can be market rate units and 272 will need to be
affordable units. This is the maximum number of units which could be
constructed within the Master Plan. The exact number of market rate and
affordable units niay be less depending on the final number of units approved for
clevelopmciit within the blaster Plan.
w 0 Kancho Carrlllo HC
Page 2
Aupt 27, 1995
On March 3, 1998, the City Council approved SDP 97-15 along with an
Affordable Housing Agreement with Continental Homes for a 116 unit affordable
hous_ing rental project in a portion of Village B. The 116 affordable rental units
allow Continental Homes to construct a total of 775 housing units for Phase I in
the Master Plan. Of these 775 units, 659 will be market rate units md 116 will be
affordable to lower income households. The Rancho Carrillo Affordable Housing
Agreement provides the required timing for construction of the 116 units of
affordable housing in relation to the construction of the 659 market rate units.
This current application proposes to identify the locations and general design of
50 second units which are scattered throughout the Master Plan area in a total of
Seven Of the seventeen residential villages. This application also proposes that
the 50 second units be counted toward Continental Homes' inclusionary
requirement for further development of market rate units in the Master Plan.
At this time Continental Homes is going through the Preliminary Review process
for the second half of Village B. The second half of Village B will be developed
with approximately 127 one, two and three bedroom ownership townhomes. A
portion of these units (approximately 84 total) will be made available to low
income households to complete Rancho Carrillo's Inclusionary requirement. The
Site DeveIopment Plan for Phase I1 of Village B will be brought before the
Housing Commission at a later date for review.
At buildout as currently anticipated, the Rancho Carrillo Master Plan will provide
approximately 250 Inclusionary units distributed as follows:
i . I 1 I'
8 1 16 one, two and three bedroom apartment units in Phase I of Village
B
50 second dwelling units in Villages G, H, J, K, M, Q and R
Approximately 84 one, two and three bedroom ownership units in
Phase I1 of Village €3.
*
.
The exact number of Inclusionary units in Phase I1 of Village B will be worked
out as a part of the future Site Development Plan. A future amendment to the
Rancho Carrillo Affordable Housing Agreement will be processed concurrently
with the future Site Development Plan for Phase I1 of Village B.
111. PROJECT DESCRIPTION
A. Location
The second units are proposed for Villages G, H, J, K, M, Q, and R of the Rancho
Carrillo Master Plan as shown on the accompanying Site Development Plan
(Exhibit A).The first 19 second duelling units will be constructed within Villages
14, J, and the first phase of Village Q (Q-I). The builders of these units have
already been identitied and have agreed to the locations for the second dwelling
VILLAGE
I-I
J
Q- 1
LOCATIONS TOTAL NUMBER OF
UNITS
S
6
8
19
LOTS 6,12,22,58, & 69
6,23, 25, 43, 53, & 61
6, 12, 30, 44, 53, 72, 77, & 101
TOTAL
VILLAGE
G
K
M
Q-2
Q-4
R-3
TOTAL NUMBEI
OF UNITS
LOCATIONS
LOTS 358,362,376, & 390 4
LOTS 84,93, 96,102,109, 125, 138, & 153
LOTS 245,258,262,283,290,300, & 307 7
LOTS 113,137, 144, & 157
LOTS 217,227,234 3
LOTS 166, 157, 190, 197, & 204
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4
5
TOTAL 31
FLooR
PLAN
A
B
C
D
E
F
''IT
S1ZE FLOOR PLANS
VILLAGES WHICH MAY UTILIZE IDENTIFIED
1
G and K 323 sf
G, M, Q2, Q 4 and R-3
G, K, M, Q2, Q4 arid R-3
G, M, Q2,44 and R-3
G, M, Q2,Q4 and R-3
G, M, Q2, Q4 and R-3
432 sf
500 sf
501 sf
620 sf
640 sf
0 0 Rancho Carrillo HC R
August 27, 199s
Page G
Commission Guidelines for development of second dwelling, units. It
should be noted again that the Prototypical Plan A will be allowed in
Villages G and K only, which have smaller lots overall.
The exterior elea;",tions and architecture will be reviewed by the Planning
Department $mn the Administrative Permits for these units are submitted.
+t that time, the Planning Department's review will ensure that the
architecture for these units are consistent with applicable codes as well as
the Rancho Carrillo Master Plan.
__
C.
Although several different second units are proposed, including studios and one
bedrooms, there are several features that all of the units provide. All units will
have their own separate entrance exclusive of the main unit, a hook-up for a
personal washer and dryer, a bathroom, kitchen area, some storage space, and off
street parking.
Second Unit Features and Amenities
IV. DEVELOPMENT TEAM
At this time, except for 50 lots owned by Shea Homes within Village J,
Continental Homes is the owner of the entire Rancho Carrillo Master Plan area.
Continental Homes will not however be the only developer of the Master Plan as
guest builders will construct some of the villages. For the development of
villages with second dwelling units in Phase I of the Master Plan, Toll Brothers
will develop Village H, Shea Homes will develop Village J and a portion of
Village Q-1 , and Monarch Communities will also be developing a portion of
Village Q- 1. All of these companies are established builders in the development
community.
The guest builders for Phase I development of second dwelling units have already
been identified as noted above. Therefore, they are already aware of their
requirement to provide second dwelling units within their Villages and have
provided the floor plans and design shown in the attached Site Development Plan.
It is not yet known who will be the guest builders of the later phases of the Master
Plan. Consequently, it will be the responsibility of the applicant, Continental
Homes, to disclose to future guest builders the requirement to construct the
second units consistent with the approved Site Development Plan. Planning
Department Staff will review the administrative permits required for second
dwelling units and will ensure that the units are constructed in compliance with
this approval and in conjunction with the respective development of the market
rate units.
r. 0’ Rancho Cai-rillo HC R
August 27, 1998
Page 7
V. SITE
A. Site Control
Except for the 50 lots nJvned by Shea Homes in Village J, the entire Rancho
Carrillo Master PI+L urea is currently owned by Continental Homes. The second
dwelling units may be developed by either Continental Homes or other guest
buikers.
B. LandCost
The value of the individual lots proposed for second units vary.
C. Land Characteristics
Rancho Carrillo is a 690 acre Master Plan located south of Palomar Airport Road,
between El Fuerte Street and the City limits. The Master Plan area has already
been graded as part of the mass grading permit previously issued by the City. The
second dwelling units will be scattered throughout the Master PIan. All of the
second units will be in close proximity (within approximately % mile) to an
elementary school that will be constructed by the San iMarcos School District in
Village S which is located in the central portion of the Master Plan. The Carrillo
Ranch Community Park is also located in the central portion of the Master Plan
and is adjacent to the future school site. The Rancho Carrillo Master Plan is in
Close proximity of existing and future employment opportunities in the industria1
corridor on the north side of Palomar Airport Road and future bus service on
Melrose Drive.
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VI. AFFORDABILITY
A. Rent and Income Levels
As mandated by the Second Dwelling, Unit Ordinance, if rented, the rental price of
each second unit shall not exceed an amount equal to 30% of the gross monthly
income of a low-income household, adjusted for household size, at 80% of the
San Diego County median income. Second Dwelling Unit Affidavits of
Compliance are required to be signed by the property owner prior to the issuance
of the Second Dwelling Unit Administrative Permits.
B. Target Population
The affordable second dwelling units will be targeted to lower-income families.
With a growing number of low-er-income jobs in Carlsbad, there is a significant
demand for affordable housing for families which will improve the jo bs/housing
balance. Since the second dwelling units are spread throughout the Master Plan,
this will provide a good integration of affordable housing within the market rate
development.
* e Rancho Cai-rill0 HC R
August 27, 1998
Page 8
C. Terms of Affordability
As mentioned above, each second dwelling unit will require an Affidavit of
Compliance establishing the maximum rental rate of each second unit.
CoiicurrentIy with approval of the Site Development Plan, the applicant is
applying for an amendment to the Rancho Carrillo Affordable Housing
Agreement to give the developer affordable rSOU$ing credits €or these second
dwelling units as related to the obligation set forth by the City’s Inclusionary
Housing Ordinance . The Affordable Housing Agreement will ensure the
affordability of the second dwelling units for the project’s useful life or 55 years.
D. Housing Element Consistency
In conjunction with the Rancho CarriIlo Affordable Housing Agreement, the
affordable housing in Rancho Carrillo supports several Housing Element Goals
and Objectives, including Objective 3.5 (Lower Income New Construction),
Objective 3.6 (Inclusionary Housing), Objective 3.2 (Larger Units) and Goal 4
(Jobs-Housing Balance).
VII. CONSTRUCTION PHASING
The second dwelling units will be constructed concurrently with the market rate
units in the villages in which they are proposed. It is likely that the first 19 second
dwelling units within Villages H, J and Q-1 will be under construction within the
next few weeks because they have already received approval of the required
administrative second dwelling unit permits. However, Rancho understands that
they will not actually receive credit for producing the second dwelling units to
satisfy the Inclusionary Housing Obligation until the attached Site Development
. Plan and Amended Affordable Housing Agreement receive final approval.
The market rate units within Villages H, J and Q-1 are currently allowed to be
constructed in a manner consistent with the originally approved Rancho Carrillo
Affordable Housing Agreement. The previously approved Affordable Housing
Agreement describes the phasing of the development of 659 market rate units in
Phase I of the Master Plan in conjunction with the 1 16 unit affordable housing
project in Village B. Future amendments to the agreement will be required for the
development of later phases of affordable housing for the Rancho Carrillo Master
Plan.
This application proposes an amendment to the Rancho Carrillo Affordable
Housing Agreement and is for a Site Development Plan to identify the locations
and design of the second dwelling units to be used to satisfy a portion of the
Master Plan’s obligation under the City’s Inclusionary Housing Ordinance.
e 0- Rancho Carrillo HC R
August 27, 199s
Page 9
VIII. ENTITLEMENTS
The Master Plan for the Rancho Carrillo development, as amended, was approved
by the City Council on October 21, 1997. Since the attached Site Development
Plan provides for 50 or fewer units, it requires only Planning Commission
approval. The Housing Conmission will then be malting a recommendation on
the proposed Site Development Plan, which includes the locations of the 50
second units as well as floor plans and elevations, to the Planning Commission.
The Site Development Plan is attached for review by the Housing Commission at
this time. Staff is recommending approval of the proposed Site Development Plan
for 50 second dwelling units of affordable housing.
The Amended Affordable Housing Agreement requires final approval by the City
Council. Therefore, on the Agreement, the Housing Commission will be making a
recommendation to the City Council. Staff is recommending approval of the
attached Amended Affordable Housing Agreement for Rancho Carriilo.
IX. ON-GOING REOUTREMENTS OF THE CITY
The City will monitor the development of the project and its on-going
management. Second Dwelling Unit Affidavits of Compliance will be required for
each lot proposed for a second unit. The City requires that the affidavits be given
to any perspective home buyer prior to entering into a sales contract for the
property.
X. SUMMARY AND RECOMMENDATIONS
It is the role of the Housing Commission to make recommendations to the
Planning Commission and/or City Council based on several considerations with
respect to affordable housing projects. These are:
0 The proposal’s effectiveness in serving the City’s needs and
priorities as expressed in the Housing Element of the General Plan
and the HUD Consolidated Plan.
e The proposal’s consistency with the City’s affordable housing
policies and ordinances as expressed in the Housing Element,
Inclusionary Housing Ordinance, Second Dwelling Unit
Ordinance, etc.
. The proposal’s development and operating feasibiIity, emphasizing
the development team capacity, financing sources and the role of
the City in providing financial assistance or incentives.
As indicated above, the proposed Second Dwelling Unit Site Development Plan
for the Rancho Carrillo Master Plan will serve the needs and priorities set forth
within the City’s Housing Element. It is also consistent with the City’s
Rancho Carrillo HC Re@ a August 27, I995
Page 10
Affordable Housing Policies and Second Dwelling Unit Ordinance. As shown by
the attached floor plans and elevations, the Second Dwelling Units will produce
affordable housing which will be desirable to live in. The applicant is requesting
no financial assistance for the development of the subject units.
In summary, Staff is recommending that the Hoz.,i@ Commission approve a
recommendation to the City Council to approve the proposed amendment to the
Rancho Carrillo Affordable Housing Agreement, and to the Planning
Commission to approve Site Development Plan 98-12 for the design and location
of affordable second dwelling units in the Rancho Carrillo Master Plan, in
substantially the form presented at this time. The amendment to the Rancho
Carrillo Affordable Housing Ageemeiit will allow Continental Homes to receive
klusionary credits for the proposed second dwelling units and to final maps for
an additional 333 housing units.
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XI. EXHIBITS
1. Housing Commission Resolution No. 98-0 13
2. Mousing Commission Guidelines on Development of Second Dwelling Units
3. Amended Rancho Carrillo Affordable Housing Agreement
4. Site Development Plan - Exhibits A-U (Site Plan, Floor Plans & Elevations)
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~uLJS~NG COhIMISSIQN RESOL #! ON NO. 95-013
THAT THE HOUSING COMMISSION RECOMMEND TO
THE CITY COUNCIL APPROVAL OF AN AMENDED
AFFORDABLE HOUSING AGREEMENT AND TO THE
PLANNING COMMISSION APPROVAL op A SITE
DEVELOPh”T PLAN SDP 95-12 FOR THE
DWELLING UNITS .TO SATISFY A PORTION OF THE
AFFORDABLE HOUSING REQUIREMENT FOR THE
CARESBAD’S 1NCLUSIONAR.Y HOUSING ORDINANCE.
APPLICANT: CONTI[N@NTAL HOMES
CONSTRUCTION OF so :AFFORDABLE SECOND
]RANCHO CARRILL43 MASTER PLAN PER THE CITY OF
CASE NO.: SDP 98-12
WHEREAS, the developer of the Rancho Carrillo Master PIan has proposed tc
the locations and general design of 50 second dwelling units which are generally
throughout the Master PIan area in a total of seven of the seventeen residential villages; ai
WHEREAS, the developer of the Rancho Carrillo Master PIan has propi
amendment to the Rancho Carrillo Affordable Housing Agreement which will allow COI
Homes to receive inclusionary credits for the proposed second dwelling units; and
WHEREAS, the developer’s proposal to construct said units has been submittec
City of Carlsbad’s Housing Commission for review and consideration; and
WHEREAS, said Housing Commission did, on the 27th day of August, 1998,
public meeting to consider said proposal to construct 50 second dwelling units to meet a
of the affordable housing obligation for the Rancho Carrillo Master Plan; and
WHEREAS, at said public meeting, upon hearing and considering all testimony, if i
dl persons desiring to be heard, said Commission considered all factor relating to the prop(
construct said second dwelling units; and
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Comm
of the City of Carlsbad. California. as follows:
I
1
2
3
4
1
I" 5
G
7
S
9
IO
11
12
13
14
1 j
16
17
IS
19
20
):,:I 1
21
22
23
24
25
26
27
25
0- 0 -.- 1. The abo e recitations are true and correct.
2. The project is consistent with the goals and objectives of the City of \
Housing Element and Comprehensive Housing Affordability S trai
Inclusionary Housing Ordin'ance, and the Carlsbad General Plan,
3. The project will provide a maximum of fifty (50) studio and orle bedroo
Master Plan. The project, therefore, has the ability to effectively serve t
housing needs and priorities as expressed in the Housing Element
Consolidation Plan. The amendment to the Rancho Carrillo Affordable
Agreement proposes that the fifty (50) second dwelling units be counte
Continental Homes' inclusionary requirement for further development of In,
units in tlie Rancho Carrillo Master Pian.
4. That based on the information provided within the Housing Commission Sta
and testimony presented during the public meeting of the Housing Coinmi
August 27, 1998, the Housing Commission ADOPTED Resolution No.
recommending APPROVAL to the City Council of an Amended Affordable
Agreement which will allow for fifty (SO) second dwelling units to satisfy a pl
the Inclusionary Housing obligation for the Rancho Carrillo Master P:
recorninending APPROVAL to tlie Planning Commission of the re13
- :-
dwelling uiiits to satisf) the Inclusionary Housing obligation for the Ranch
Development Plan (SDP 9s-12).
Conditions:
1. Recommendation of approval is granted for the Affordable Housing Site Devel
Plan 98-12, incorporated by reference and on file in the Housing and Redevel
Department. Development shall occur substantially as shown unless otherwise r
the conditions of final project approval by the PIanning Commission or City Counc
The affordable housing units shall be deed restricted for "the useful life of the F
which is a minimum of 55 years.
Subject to the approval of the Planning Director, up to 50% of tlie second dwelIin
in Villages G, K, M, 4-2, 4-4 and R of the Rancho Carrillo Master Pian may be re1
within the same village at the time of approval of the administrative Second Unit I
subject to compliance with all requirements of Section 21.10.015 of the C:
Municipal Code and the Housing Commission's Guidelines for Development of L
dwelling units. Second dwelling units must be dispersed throughout the Villages :
to the dispersal shown on Exhibit "A" of SDP 98-12.
Revisions to the locations of second dwelling units may be administratively appro.,
the Planning Director. If the City determines that the proposed revision necessita
amendment to the Rancho Carrillo Affordable Housing Agreement, then the pro
amendment, and any necessary modifications to exhibits to reflect the amendment.
be administratively approved by the Coniinunity Development Director. An appli,
2.
3.
4.
2
I
2
1
4
for these t s df revisions Shall only require the signatures 0 @ of the owner of the
phase of a Village in k%liich the revision will occur. Any proposed revision :
compliance with a11 requirements of Section 21.10.015 of the Carlsbad Munic
and the Housing Commission Guidelines for Developinent of Second Dwelling i:
At the time of review of the administrative Second Dwelling Unit Permit applicz
Planning Director slmrl determine that all proposed second dwellins units in tb
5.
, - c I
4' 5
'I 1
6
7
8
9
10
11
12
13
14
l5
16
17
18
19
20
21
22
23
24
25
26
27
28
Carrillo Master Plan are in conformance with the requirements of Section 2 1.1 C
Carlsbad Municipal Code and the Housing Commission's Guidelines for Devell
Second Dwelling Units. In addition, the second dwelling units in Villages H,
shall be developed as set forth in the approved SDP 9s-12. The second dwel
developed in Villages G, K, M, Q-2, Q-4 and R shall be compatible in df
appearance with the prototypical units approved by SDP 9s-12. Each unit shal
own separate entrance. have a hooliup for a washer and dryer and have a miniiiiu
323 square feet in Villages G and K only and a miniinurn size of 432 squar
Villages M, Q2, Q4 and R.
Upon final approval of said affordable housing project and prior to final map app,
applicant sliall execute the Amended Affordable Housing A, Oreenient with the Carlsbad in substantially the form presented to the Housing Commission and prc
the staff report dated August 27, 199s. The agreement is binding to all future on
successors in interest. The Affordable Housing Agreement shall include all te
conditions of said project approval required to comply with the City's Incll
Housing Ordinance.
PASSED, APPROVED, AND ADOPTED at a speciaI meeting of the A
Commission of the City of Carlsbad, California, held on the 27th of August 1998.
following vote, to wit:
AYES:
NOES:
6.
ABSENT:
ABSTAIN:
KATHLEEN DL"4-'CVELLAMAN,
CHAIRPERSON
CARLSBAD HOUSING COMMISSION
DEBORAH I<. FOUNTAIN
Housing and Redevelopment Director
3
City of Carlsbacl
i
I
’* t
Approved: 5/5/97
Purpose of Guidelines:
To assist the Housing Commission and City Council/Housing and Redevelopment
Commission or Planning Commission in review of projects which have proposed
development of Second Dwelling Units to meet the requirements to produce affordable
housing units under the City of Carlsbad’s Inclusionary Housing Ordinance.
To assist housing developers to better understand the desires of the Housing Commission,
and City CouncilkIousing and Redevelopment Commission or Planning Commission to
produce quality affordable housing which appropriately meets the needs of the Carlsbad
community.
To assist City staff as they work with housing developers to satisfy their affordable
housing obligations under the Inclusionary Housing Ordinance
6u id ell ines:
The Guidelines developed by the Housing Commission and adopted by the City Council
are as follows:
1. Size Limits: The units shall be no larger than 640 square feet (per the Second
Dwelling Unit Ordinance) and no smaller than 400 square feet, unless compelling
evidence is presented by the developer which justifies a smaller size unit.
2. Design Features: Same as those required by the Second Dwelling Unit Ordinance,
with the addition that the second dwelling unit must provide a one (1) bedroom floor
plan if the unit can be accessed directly from the main dwelling unit.
3. Affordability: The affordability requirements shall be the same as those set forth
within the Second Dwelling Unit Ordinance.
4. Occupancy Restrictions: There shall be no restrictions on the total household inconie
for occupancy purposes. If the unit is rented, however, the rent must be set at a rate
which is affordable to households at 80% or below of the San Diego County Median
Income. This is the same as the Second Dwelling Unit Ordinance.
0 a
SDU Guidelines
May 8, 1997
Page 2
5. Form of Restrictions: The form of the restriction on the property shall be the same as
that indicated within the Second Dwelling Unit Ordinance, with the addition that tb-
I, Affordable Housing Agreement be recorded against the property as well. ‘1 1
6. Monitoring: An annual review of the second dwelling units will bc c’ornpleted using a
random sampling of existing units. It is anticipated that the sampling will include an
appropriate representation (Le., 20% approximately) of the units which have been
constructed as of the date of the review/monitoring visit.
7. Other Limitations: As a general guideline, second dwelling units can be used to
satisfy the entire affordable housing requirement for housing projects which have less
than IO0 units total. For projects which provide for 100 units or more, the general rule
shall be that no more than 20% of the total inclusionary housing requirement may be
satisfied through the development of second dwelling units. This guideline limit is in
addition to the language in the Inclusionary Housing Ordinance which requires City
Council/Housing and Redevelopment Commission and/or Planning Commission to
give final approval to allow anv use of second dwelling units as an alternative to
otherwise required construction of new inclusionary units.
Anplicabilitv:
As Guidelines, the above criteria have flexibility for application purposes. On a case by
case basis, the City Council/Housing and Redevelopment Commission, Planning
Commission and/or Housing Commission may consider projects for approval which are
not entirely consistent with these guidelines, if the projects are otherwise deemed
appropriate and consistent with the Second Dwelling Unit Ordinance. These guidelines
do not amend any existing ordinance related to the Second Dwelling Units or
Inclusionary Housing requirements.
I______ 0 IBl-
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RECORDING REQUESTED BY
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk’s Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad, California 92005 (ABOVE SPACE FOR RECORDER’S USE)
FIRST AMENDED AND RESTATED
AFFORDABLE HOUSING AGREEMENT
IMPOSING IIQESTWCTIONS ON REAL PROPERTY
This FIRST AMENDED AND RESTATED AFFORDABLE HOUSING AGREEMEN IMPOSING WNS 0 IN KlALJ PROPERT Y (“Agreement”), entered into this day of , 1998, by and between the CITY OF CARLSBAD, a municipal corporatio
(“City”), and CONTINENTAL RANCH INC., a Delaware corporation (“Developer”), is made wit
reference to the following:
Developer is the owner of certain real property in the City of Carlsbad, in th
County of San Diego, California (“Subject Property”) described in “Attachment A,” which i attached hereto and incorporated herein by this reference.
A.
B. City and Developer have previouslv entered into that certain Affordable Housing
I z-----
1-1 c I CCI 11 CII t I mu o si n iz . 199s ("Ini 1. - tions on Real Propertv dated F
Axeement"). which w the Official Records of I
and restate the Initial Acreemelit bv this Agreement to provide for the orderly slid effic
development of the Subiect Propertv in compliance with the Citv's Inclusionarv Hou:
Ordinance.
+I3 C. Developer wishes to co.mtnrct w 1.1 08 residential units and fifty (50) second
dwelling un& (('Phase 1 of,h blaster Development") on a portion of the Subject Property. r
City has approved the C'arrillo Master Plan ("Master Plan"); Carlsbad Tract Map Numk CT 93-01, CT 93-04, 07, CT 93-05 and CT 95-06; Planned Unit Development Nunit D 93-07, PUD 95-04 AND PUD 95-05; and, Site Development Plan Numbers S
94-01, SDP 95-12 and SDP 95-13 for the "Master Deveiopment" of the Subject Property. The (
issued these approvals subject to certain Conditions of Approval, including a condition requir
fifteen percent (15%) of the units in the Master Development to be affordable housing as requi
by the City's Iiiclusionary Mousing Ordinance, Carlsbad Municipal Code Chapter 2 1 .55 r'Ch Chapter 2 1.85"). In that regard, this Agreement, as supplemented and amended from time to tir
is intended to implement the requirements imposed by CMC Chapter 2 1.85 for these approvals 2
all future City approvals of tentative maps, planned development permits and site developni plans pursuant to the Master Plan.
Diego County as Document No. 19%- . Citv and Developer want to mi
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-----+C} Q. Developer has indicated that it intends to meet its inclusionary housing requirem u for Phase1 of the Master Development by constructing, or causing to be constructed, 116 UII
$thin Village B of the Master Plan and (ii) for a portion of the balance of the Master Developmt
bv constnictiiiz. or causing to be constructed. 50 secondary dwelling units dispersed throughout t
Master Development.
+jE. Developer is required by the Conditions of Approval to enter into an Affordal
Housing Ageemelit as required and with the content specified by CMC Chapter 21.55. TI
Agreement is an Affordable Housing Agreement pursuant to CMC Section {3! .$5.C*
21.55.020(2), and shall be signed prior to the approval of f+ayj additional Final Maps for t:
Subject Property. The Initial Agreement permitted the approval of Final Maps for 775 &vellii
units for the Subject Propertv. which included 1 16 affordable housinq rental units. This Agreeme
shall permit the approval of Final Maps for uu to 1.158 dwelliiirr units for the Subiect Properf
which includes a total of 166 affordable housinn, rental units.
NOW, THEREFORE, it is mutually agreed by and between the undersigned pni-ties follows:
1. Incorporation of Recitals: ,Amendment and Restatement of Initial Arrreement. TI
Recitals are hereby incorporated in this Agreement. Ths Initial Agreement is herebv supersecfed ar
amended and restated in its entiretv bv this Arreement.
2. Satisfaction of Affordable Mousin? Obligation and Conditions of Approval. In ordl
to satisfy the Conditions of Approval of CT 93-01, CT 93-04, CT 93-07, CT 93-05, CT 95-06 an
future tentative maps approved by the City within the Master Plan, and the requirements of CiMC
Chapter 21 35, Developer shall cause a minimum of one hundred sixteen (1 16) multihniil
dtvcllini! units and a niaxinium of fiftv (50) secontlarv citvellinrr units of Phase 1 of the Mastt
EEG'I@Zent to be ai-fordable to lower-income households (the "AfiorcTable Units"), according t
the schedule and terms contained herein.
3. Number and Tvpe of Affordable Units. Developer shall construct, or came to b
. ..- . . ..
0 0.
constructed, one hundred sixteen (1 16) multifamily dwelling units (“Affordable MultifatT
Units”) and a masimum of fiftv (50) secondarv dcvellinc units (“Affordable Second Dwell
Units “ 1. I-
4. Terms Goveminc Provision of Affordable Multifamilv Units. Provision of 1 Affordable Multifamily Units shall be governed by the following terns:
4.1 Location of Multifamilv Units. The Phase 1 Affordable Multifamily UI: shall consist of one hundred sixteen (1 16) units to be constructed within Village B of the Mas
Development. The Affordable Secoiid Dwellinc Units shall be constnicted within Villaces G. 1-1.
K. M. 0 and R of the blaster Development.
4.2 Size and Bedroom Count. The Phase 1 Affordable Multifamily Units sh include one, two and three bedroom units in the numbers and with the square footages indicated
“Attaclment B” to this Agreement. ‘The Affordable Second Dwellinc Uiiits sliall include studi
and one bedroom in the numbers and with the square footages indicated in “Attaclment B” to tl
A e re em en t .
4.3 Affordabilitv Requirements. The Phase 1 Affordable Multifamily Units sh:
be restricted to occup,ancy by households with incomes, at the time of initial occupancy, that do n
exceed so%, GO%, or 80% of the median income for San Diego County, adjusted for actu
household size. Twenty percent (20%) of the Phase 1 Affordable Multifamily Units shall ; affordable to households with incomes, at the time of initial occupancy, that do not exceed 50% (
the median income for San Diego County, adjusted for actual household size; forty percent (409
of the Phase 1 Affordable Multifamily Units shall be affordable to households with incomes nl exceeding 60% of the median income; and forty percent (40%) of the Phase 1 Affordab
Multifamily Units shall be affordable to households with incomes not exceeding 80% of the mediz
income. Monthly rents (including utility allowance as published by the United States Department ( I-Iousing and Urban Development) of the Affordable MultifarnJy Units shall not exceed 1/12‘’’ ( 30% of the designated percentage of median income for San Diego County, adjusted for assumec
household size appropriate for the unit. Second Dwellincr Units are not required to be rcntec
Hocvever. if rented. the nionthlv rents (includin.. utility allowance as published bv the United Statc
Ueisartnient of I-Iousinc and Urban Development) for the Affordable Second Dwelliiie Units sha
not exceed 1/12“’ of 30% of 80% of’ the niedian income for Sail Diezo Countv. adiusted fc
assumed household size appropriate for tlie unit. Median income figures shail be those publishe
annually by the United States Uepartment or Housing and Urban Development. Assume.
household size figures shall be provided to Developer by the City of Carlsbad Ho~ising an(
Redevelopment Department. With respect to each Affordable Multifamily Unit aiici Af’fordabl(
Sccond Dweilinlr Unit, the affordability requirements of this Section 4.3 shall continue for fiifty-fivl
(35) years irom the date of issuance of a Certificate of Occupancy by the City for such unit. Th affordability requirements of this Section 4.3 shall be set forth in the Regulatory Agreemen
between the Developer or its successor and the City, provided for in Section 4.7.4 below, whicl
shall supersede this Agreement with respect to the Phase 1 Affordable Multifamily Units upoi
recordation of tlie Regulatory Agreement.
4.4 Affordable Housinz Developer. Developer has indicated il will contract wit!
an affordable housing developer to develop and construct the Phase 1 portion of the Affordablt
Multifamily Units to be constructed in Village B. Developer shall obtain prior City approval of thi:
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developer and proposed development agreement for the units (;‘Affordable Housing Develop111
Agreement”). The Affordable Housing Development Agreement shall describe with particular
the fiiiaiicial arrangements for the construction of the Affordable Multifamily Units, the restrictic
applicable to the Affordable Multifamily Units and the record keeping obligations for
management of the units. Developer or west builders shall construct the Affordable Secc
Dwelliiw Units. Prooertv owner must sign affidavits of colnpliance prior to the issuallce of 1
required Second DwellinLr linit Administrative Permits. The affidavits shall bc providcd to
pcrspective home buvers iirior to entering into a sales colltract for tile properb.
4.5 Schedule for DeveloDina Affordable Multifamilv Units. Developer sh
provide the Mk Second Dwelliw rjiaits coiicurrelit[y \vit\i tile rel;lpd sillele f~mil~,~ \io!
construction. The Affordable Multifamily Units shall be developed pursuant to the followi schedule:
4.5.1 Prior to the approval of any additional Final Maps for the Mas - Development, the following shall be in place:
4.5.1.1 This Agreement shall be duly signed and recorded agai~
the - . Subject Propertv.
4.5.1.2 A Site Development Plan shall be approved for the Phase
Affordable Multifamily Units. City hereby agrees to priority process the Si Development Plan for the Phase 1 Affordable Multifamily Units.
4.5.1.3 Site Development Plan 98-12 shall be apmoved for the Pha
1 Affordable Second Dwelling Units.
4.5.2 After this Agreement is duly sicned and recorded against the Subiec
Propertv, Wbuilding permits shall not be issued for more than w 5% 335. (
34%). of the &market rate units included in Phase 1 of the Master Developmei
prior to the Phase 1 Affordable Multifamily Units (1 16 total) in Village B a
Phase I Af‘fordable Second Dwelliix IJnits (1 9 total) in Villarres 1-1. J and Q 1 be%
under construction. l-or purposes of this Agreement, “under construction” rnear approval <and issuance of the building permits and completion of inspection(s) fc
the foundation(s) for the initial phase of the Phase 1 Affordable Multifamily Unit
and the Phase I Affordable Second Dwellin2 Units. The f225j 5% 335. or 34%. 0’
the total -building pennits for market rate units included in Phase I of the Maste
I)evelopment may be allocated among the villages in Phase 1 of the Maste
Development in any combination as Developer determines in its sole discreti0n.a
total number of buildiix permits which i-na~ be issued for n-mltel rate units nia’6f;
Ilwcllin~r Unit Lmclur construction. v,hicli is crreater than the nineteen (1 9) tota
Ai‘forciable Second Dwellinc Units noted above but less than the masirnun
permitted of fiftv (50) Affordable Second Dwellinrl Units.
-
incrcased bv seven (7) permits for each additioiial one (1) Affordable Secou
4.5.3 Building permits shalI not be issued for more than w M 754. o
7GYi or the total of the market rate units included in Phase 1 of the Maste.
Development prior to completion of the construction of the Phase 1 Affordablc
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0 0
Multifamily Units in Village B il 16 units total) anci the Phase 1 c”\n‘ordable Sec
1)wcliiix Units ( 19 units total). After final inspection is complete by the Builc
Affordable Multifruliily Units (1 16 total) and the Phase 1 Affordabte Sec
Dtvellinz Units i 19 total), buiIding permits may be obtak1ed for the remaining
2;Smarltet rate units in Phase 1 of the bIa
UepnrtmeIit md a ml Certificate of Occupancy is issued, for the Phas
4.5.4 The Initial Agreement permitted the approval of a final map or rr.
for 775 dwellintr units. After Site Development Plan 95-12 is approved for
Affordable Second Dwellin2 Units and this Aqreement is duly signed and recorc
acahst the Subiect Propertv. a f-inal map or maps mav be approved for 1.1:
dwellhe units (992 marltct rate units + 166 affordable units. includinc a maxim
of 50 second dwelling units).
-
I 4.5.5 Buildin? permits shall not be issued for more than 1.1855 of
dwellinrr units of the Master Development prior to the Phase 2 Afforda
Multifamilv Units in Village B bein? under construction.
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0 e
4.6 Compliance Report. Following completion of construction of the Phas Affordable Multifamily Units, a Compliance Report meeting the requirements of CMC Sect 2 1.85.1 80, verifying compliance of the completed Phase 1 Affordable Multifamily Units with terms of this Agreement and certified as correct by a third-party, shall be submitted annually to Housing and Redevelopment Director. If similar reports on the Phas_e__ 1 Affordable Multifan Units are required for regulatory compliance with other finanFin6 programs, those reports may
deemed satisfactory for the purpose of this section by the IT qsing and Redevelopment Direct
with respect to the Phase 1 Affordable MultifmiIy Units 'cotered by such reports, provided t
copies of those reports are provided on an annqal basis to the Housing and Redevelopment Direc
with a third party certification addressed to tile City.
4.7 Citv Approval of Documents. The following documents, in form 2 substance acceptable to the City. shall be used in connection with the rental of the Pliasc Affordable Multifamily Units. Such documents shall be prepared by the Developer or its sUcces
and shall be submitted to the Housing and Redevelopment Director for review and approval no la tliaii the commencement of construction of the Phase 1 Affordable Muitifamily Units:
4.7. I A marketing plan establishing the process for seeking, selecting a determining the eligibility of tenants of the Phase 1 Affordable Multifamily Units.
4.7.2 A form of Rental Agreement.
4.7.3 A property management plan.
4.7.4 A form of regulatory agreement between the Developer or
successor 'and the City ("Regulatory Agreement").
Terms Regarding Provision of Affordable Second Dwellin2 Units. Provision of t 5.
Affordable Second Dwelling Units shall be zovemed bv the following terms:
5.1 Location of Units. The Affordable Second Dwelling Units shall be locat1
in the villazes of the Master Plan as approved in Site Development Plan 98-12. The lots identifir
as iiicluding an Affordable Second Dweiiina Unit shall be required to have an apgrovt
Administrative Permit in compliance with the requirements of CMC Section 21.1 0.01 5. unle
otherwise apnroved bv the Conimunitv Development Director, prior to construction on the lot.
5.1.1 Subject to the approval of the Planning Director. up to fiftv perce
(500/0) of the Affordable Second Dweliing Units in k&+-xs& Villages G. K. h
0-2. 0-4 and R9 of the Master Development mav be relocated within the san
village at the time of anproval of the Affordable Second Dweliing UrL
Administrative Permit. subiect to compliance with all requirements of CMC Sectio
2 1.10.01 5 and the Housing Commission's Guidelines for Development of Secon
Ilwellinc Units. Affordable Second Dwellinz Units must be dispersed throudioi
the villazes similariv to the dispersal shown on Exhibit "A" of Site Developme1
Plan 98-12.
5-12 If the City determines that the proposed revisions to the locations c
Affordable Second Dwelling Units necessitates an amendment to this Aoreemenl
then the proposed amendment. and anv necessary modifications to exhibits to reflec
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the amendment. shnll be administrativelv approved bv the Cornmu
Development Director. An aDolicatioi1 for this tvpe of revision shall onlv FK
rcquii-e the signature of the owner of the particular phase of a villacre in which
revision will occur. Anv proposed revision shall be in compliance with
requirements of CMC Section 21.10.0 15 and the Housin? Commission's Gliideeli
for Development of Second D\ve!ling Units.
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,I!
>,:I j
5.1.3 At the time of review of the Affordable Second Dwelliriq I
Administrative Perinit. the Planning Director shall determine that all propc
Affordable Second Dwelliiio Units in the Master Plan are in conformance with
requirements of CMC Section 2 1.10.0 I5 and the Housinz Commission's GuidelL
for Development of Second Dwellinlr Units. In addition. the second dwelling 11:
in Villaces I-I. .T cind 0-1 shall be developed as ser forth in the auproved SDI' 98-
Affordable Second Dwellin? Units developed in Villages G. K. bl. 9-2. 9-4 am
shall be compatible in design and appearance with tlie proto-tvpical units appro'
bv Site Develoument Plan 98-12. Each unit shall have its own separate entrar
havc a hookur, for n \vaslisr and diver and have a minimum size of 323 square 1
in Villazes G and K onlv and a iiiinimun size of433 square feet in Villaces bl. (
(14 and I<.
~ -
I 5.32. Schedule of Development of Second Dwellinlr Units. The Affordal
Second Dwellinc Units shall be constructed in the normal course of development with the marl
rate single-family units included within the Master Development. The Affordable Second Dwelli
Units shall be constructed according to the schedule for constructin? the market rate sinele-fam
units: provided. however. the construction of the Affordable Second Dwellinlr Units shall
reasonablv proportionate to the construction of the market rate sincrle-family units.
6. Release of Subject ProPem From Amement. The covenants and conditions here
contained shall apply to and bind the heirs. executors, administrators, successors, transferees ar
assignees of all the parties having or acquiring any right, title or interest in or to any part of tl
SubJect Property, and sliall run with and burden the Subject Property untii terminated in accordan1
with the provisions hereof. Prior to the issuance of building permits, Developer shall express
iuake tlie conditions and covenants contained in this Agreement a part of any deed or 0th
instrument conveying any interest in the Subject Property. Notwithstanding anything to ti
contrnry set forth in this Ageement. indii.idua1 purchasers of single-family units pursuant to :
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0 a
approved public report in compliance with the Caiifornia Subdivided Lands Act, and mortg
lenders holding deeds of trust on such individual units after sale to such purchasers, shall no1
subject to the terms of this Agreement; and tlie terms of this Agreement shall be of no further fc
or effect with respect to such completed unit on the date of {lie record;llion of a deed to
individul purcliaser. Upon allocation by the Developer of the building permits for the first a:
i *-Iarket rate units among the villages in Phase 1 of the Master Developtiient, in my combinatior
I developer determines in its sole discretion, then those %x market rate units shall be relea
from tlie burdens of this Agreement. Upon allocation by tliDeveloper of the building perniits
the 2%~t’’ through Wm‘” market rate units among the villages in Phase 1 of the Ma
Developxiit. in any comnKiation as Developer determines in its sole discretion, and after
Phase 1 Affordable Multifamily Units (1 16 total) in Village B and Pliase 1 Affordnblc Secc
DLwliinc Ctiits (19 total) are under construction. then the 226Z‘’ through %~‘” market r
units shall be released from the burdens of this Agreement. Afterfinal inspectioniscomplete, c
final Certificate of Occupancy is issued, for the Phase 1 Affordable Multifamily Units and Pha:
Allbt-dable Second Dnellinc Units, then the remaining Wu market rate units in Phase 1 of
Master Development shall be released from tlie burdens of this Agreement. Appropri
adjustments shall be made in the number of market rate units released from the burdens oft
Agreement consistent with the increases in buildinrr permits pursuant to Subparaa-aph 4.5.3 ab01
+} 1. Default. Failure of Developer to cure any default in Developer’s obligations unc
the terms o‘I;this Agreement within ninety (90) days after the deIivery of a notice of default from 1
City (or where the default is of a nature which cannot be cured within such ninety (90) day peric
the failure of Developer to commence to cure such default within the ninety (90) day period
Developer’s failure to proceed diligently to complete the cure of such a default within a reasonal
time period) will constitute a breach of this Agreement and the requirements of Carlsbad MuiiiciL
Code Chapter 31.85 and the City may exercise any and all remedies available to it with respect
Developer’s failure to satisfy the Conditions of Approval and Chapter 21.55 of tlie Carlsb
Municipal Code, including, but not limited to, tlie witldiolding of building permits for the mark
rate units within the Master Plan.
+]a. Appointment of Other Acencies. At its sole discretion, the City may designa
appoint or contract with any other public agency, for-profit or non-profit organization to perf01
the City’s obligations under this Agreement.
+I 9.
(hereinafter collectivcly referred to as “Iiideninitees”), and any of them, from and against all 105
all risk of loss and all damage (inciuding expense) sustained or incurred because of or by reason (
any and all claims, demands, suits, actions, judgments and executions for damages of any and eveL
kiiid and by whomever and whenever made or obtained, allegedly caused by, arising out of (
relating in any manner to Developer’s actions or defaults pursuant to this Agreement, and sha
protect and defend Indemnitees, and any of them, with respect thereto.
___fQf 10. Insurance Requirements. Developer (or its successor or successors) shall obtain, :
its (or theiiyexpense. comprehensive general liability insurance for development of the Phase
Affordable Multifamily Units naming Indemnitees as additional named insurcds with aggregal
1-lold Marmless. Developer will indemnify and hold harmless (without limit as
anioiiiit) City aid its elected officials, officers, employees and agents in their official capxi
__ -
0 0
limits of not less than Five Million Dollars ($5,000,000) for bodily injury, and death and prop€
darnage, including coverage for contract liability and products and completed operations purcha
by Developer (or its successor or successors) from an insurance company duly licensed to en3
in the business of issuing such insurance in the State, with a current Best's Key Rating of not 1
than A-V, such insurance to be evidenced by an endorsement which so provides and delivered
the City Clerk prior to the issuance of any building permit for the Phase 1 Affordable Multif;l*-' Units, 1
---+el g. Notices. All notices required pursuant to this Agreement 'shall be in writ and may be given by personal delivery or by registered or certified mail, return receipt requested,
the party to receive such notice at the addresses set forth below:
To the City of Carlsbad: CITY OF CARLSBAD
Housing and Redevelopment Department
Attn: Housing and Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, California 92008-23 89
CONTINENTAL RANCH, INC.
Attn: Dave Lother
San Diego, California 92130
To the Developer:
I?:~:T+ 12230 El Camino Real, Suite 30(
Any party may change its address to which notices are to be sent by notifying tl
other party of the new address, in the manner set forth above.
-----&GI 2. Integrated Azreement. This Agreement constitutes the entire agreeme
between theparties and no modification hereof shall be binding unless reduced to writing ar
signed by the parties hereto.
---+GI - 13. Duration of Agreement, This Agreement shall remain in effect for 55 yea]
following thrdate certificates of occupancy have been issued for all Affordable Units.
-- 2. be recorded against the Subject Property in the Official Records of the County of San Diego.
Recording of Agreement. The parties hereto shall cause this Agreement t
[I?.] - 15. Severabilitv. In the event any limitation, condition, restriction, covenant o
provision consned in this Agreement is to be held invalid, void or unenforceable by any court o
competent jurisdiction, the remaining portions of this Agreement shall nevertheless be and remaii
in full force and effect.
______ I --
0 0-
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed
of the day and year first above witten.
CITY: CITY OF CARLSBAD, a municipal corporation
I
I'
Lt
MARTIN ORENYAK .>
Community Development Director
Approved as to form:
RONALD R. BALL,
City Attorney
DEVELOPER: CONTNENTAL RANCH, INC., a Delaw:
corporation
-_-- _-
a 0’ .-
ATTACHMENT ‘‘A”
(Subject Property)
~ -
I
I’ j ‘1
L, ~
____- I-
Village
- 1-1
- .I
01
- G
-
=tr
-
- K -
- M -
(3-2
Q-fJ
- R-3
TOTAL
-
Size
587 sqiiare feet
6 16 square feet
6 1 1 square feet (5)
6 16 square feet (3)
323 to 640 square fee
323 or SO0 square fct
432 to 640 square fee
Locat ions Total Number - 5
4
8
- 4
- Lots 6. 12.22.58 & 69
Lots 6.23.25.43.53 1E
- 61
Lots 6. 12.30. 44. 53.
72.77 &I01
Lots 355.362.376. &
- -
- -
- - 300
Lots 84.93.96, 102, - S - 109. 128. 138. Ce 153
7 Lots 245. 255. 262. 283. 290.300 2% 307 -
- I57
Lots 2 17. 227. 234
Lots 166. 187. 190. 197
and 204
-
~ Lots 113. 137. 144. & 4 v - -
432 to 640 square fee
432 to 640 sqirare feel
- 3
- 5
50
-
-
HOUSING COMMISSION 0 MINUTES 0 Exhibit i
AUGUST 27,1998
PAGE 9
c
/p r. Avis stated that with this condition, they would have difficulty financing their project. The only solution to m
&l dition is to tell Bridge that this is not going to be a tax credit deal, put up $4 million of their o,wn’ money in lar
dohars, and build the project with a $4 million subsidy at 80% median income and own it as an asset. So the
afforbbility of the project is lost by stopping the project from the beginning in the financiqg of it, he said.
Commissi ,er Scarpelli stated that the project being offered at 60% of median income is extremely important bec
would help the Section 8 housing problem. If the developer moves forward, they might end up with 80% housing
Commissionet?3carpelli stated he would like to encourage Staff not to approve,this resolution as it stands right no
Commissioner Noblektated that he agreed with Commissioner Scarpelli;.
u
\\
/ .+ 3
h
/’ ‘\
ACTION: \hotion by Commissioner Latas, and dulj”seconded, that the Housing Commission AD
R&x$ution No. 98-012, recornmen$& that the City Council APPROVE an Affordabl
Houshg Agreement and Site Development Plan for the construction of 92 affordable
apartmehtpits in Planning Asea 5 to satisfy the Inclusionary Housing requirements fo.
Poinsettia Properties Specifie’plan. /
Calverley, Escobedo,’Lxtas, Noble, Scarpelli, Walker
\ ,x’ VOTE: 1-6-0 ”~\ \.’ AYES: Wellman
NOES:
There was discussion None/ about re uiring Section 8 ho‘u‘ “., :ng with this project.
ACTION:
ABSTAIN: /\ 1,
-2:.
Motio y Commissioner Noble, and d&s,tconded, that the Housing Commission AC
Ress ution No. 98-012, recommending that thecity Council APPROVE an Affordabl
€@<sing Agreement and Site Development Plan ‘for the construction of 92 affordable
Apartment units in Planning Area 5 to satisfy the Inclusionary Housing requirements for
Poinsettia Properties Specific Plan with the developer’s &>ommendations as described
Ms. Fountain durinc Staffs mesentation. ‘\z
5-2-0 \\
Calverley, Escobedo, Noble, Scarpelli, Walker 1, ‘..<
.-\ x. ,. Latas, Wellman
None
RANCHO CARRILLO SECOND DWELLING UNITS - REQUEST FOR RECOMMENDATION OF
APPROVAL OF ’AN AFFORDABLE HOUSING AGREEMENT AND SITE DEVELOPMENT PLAN :
CONSTRUCTION OF 50 SECOND DWELLING UNITS TO SATISFY THE INCLUSIONARY HOUS
REQUIREMENT.
Debbie Fountain reviewed the background of the request and stated that Staff originally had an Agreement develor
with the Continental Homes Rancho Carrillo Master Plan, and it was initially limited by the City Council that they
not final maps for more than 775 housing units within the Master Plan area until they had provided additional Site
Development Plans for the rest of their affordable housing. The first phase was to include 116 apartment units, wil
final maps on 775 units, and a phasing plan. The developer wants to increase that original 775 number by adding 5
second dwelling units to satisfy their affordable housing obligation. The Council approved that original Agreemen
March 3, 1998. They have been moving forward with financing for that project.
Staff wants a Site Development Plan that shows exactly what the developer is going to do, what the units look like,
big they are, etc. Ms. Fountain added that the Site Development Plan allows for an increase to 1,158 total housing
with 992 of those being market-rate and 166 affordable, which includes the 50 second dwelling units and the 1 16
0- 0-
HOUSING COMMISSION MINUTES
AUGUST 27,1998
PAGE 10
apartment units. This would allow them to increase the number of building permits according to their phasing pli
which could be released initially and then in subsequent stages.
Ms. Fountain explained that the second dwelling units are proposed for Villages G, H, J, K, M, Q, and R. The fir
that have been proposed in H, J, and the first phase of Q (Q-l), are fixed locations with fixed designs, which mea
have already identified builders for those second dwelling units. The builders have come up with a design for th(
on their lots within their villages and they will range in size from 587 to 616 sq. ft. for studio and one-bedroom UI
The second phase proposes a total of 3 1 second dwelling units in Villages G, K, M, 4-2, 4-4, and R. Anticipate(
locations and prototypical designs were provided. The builders have not been identified yet, so what Continental
tried to do is identify a number of different floor plans that could potentially be used by builders and put those to;
as prototypical, allowing builders to select any one of the floor plans A through F to put on their lots.
Ms. Fountain said that the developer has also requested that they administratively be allowed to relocate 50% of I
within each noted Village. They need a little flexibility because the builders have not been identified and may nc
the exact lots that they get. If a Village.has four second dwelling units proposed for it, then they would not move
than two. These prototypical designs range in size from 323 to 640 sq. ft. and are studio and one-bedroom units.
The chart on page 5 of Staffs report explains which floor plans will be included in the various Villages. Ms. Fo
said that the developer wants the Commission to be aware that the small units (323 sq. ft.) will be built on a limite
only in Villages G and K, which are the Villages with smaller lots. According to the developer, larger units migt-
fit on Village K lots.
Commissioner Scarpelli questioned the 50% adjustment that the developer is asking for, asking if they would mo!
from a specific lot to another lot in the same Village.
Ms. Fountain explained that they still would have to amend their Site Development Plan, which attaches to the
Affordable Housing Agreement, but they could do it administratively and not have to go back to the Housing
Commission and the City Council for approval.
Ms. Fountain discussed second dwelling unit amenities.
Ms. Fountain stated that in terms of the affordability of the project, Staff is recommending that the developer corn
with the Second Dwelling Unit Ordinance which basically states that if the units are rented, the rental price shall n
exceed 30% of 80% of the area median income. They will have to deed restrict the units and have an Affidavit of
Compliance that is signed by the property owner.
Ms. Fountain explained that Staff and the developer did not get a chance to go over the Affordable Housing Agret
completely, and wanted to go over some of the changes. Going through the phasing plan, Ms. Fountain explained
this project is a little different than most because it includes both rental units in an apartment project and second
dwelling units as rental units, making it harder on the phasing to figure out when construction should start.
When the amended Affordable Housing Agreement and the Site Development Plan get approved, 400 building pe
for market rate units will be released, which is an increase from the original 338. The percent stays the same at
approximately 34 to 35%. They would be released to get an additional set of building permits after the apartment t
is under construction, she said.
Originally, Staff was trying to get the second dwelling units under construction, as well as the apartment units. St2
realized what they needed to do was have the developer built concurrently with the single-family homes. Basically
still is the same as the Agreement, just taking out the reference to the second dwelling units having to be under
construction. This change focuses on the rental apartment project being under construction, and having added Ian,
0 0
HOUSING COMMISSION MINUTES AUGUST 27,1998
PAGE 11
that states the developer will build the second dwelling units as they build the single family homes consistent wit1
Site Development Plan on the lots that they said they will build. The second dwelling units will go along with thi
market rate permits that are being released. They can increase that number by each second dwelling unit that the)
forward on, but that unit does not have to be under construction. They just have to receive the administrative per1
approved and issued for the unit and then they would be able to get an additional seven houses released for mark
permits.
Commissioner Scarpelli asked for further clarification in regard to an administrative permit.
Ms. Fountain stated that an administrative permit it is the permit that is required for second dwelling units and it 1
processed administratively. It is part of the building permit process, and has an Affidavit of Compliance that com
it that the property owner has to sign.
Commissioner Scarpelli asked if it is processed at the same time that the building permit is processed.
Ms. Fountain explained that the administrative permit could be acquired before the building permit, but usually tl
received closely together.
Ms. Fountain explained that in paragraph 4.5.3 of the Agreement the numbers are still the same as the original
apartment project under construction, which means the foundations have to be complete, inspected, and approved
they can get building permits for the remainder of their market-rate units. The only thing that has changed in that
paragraph is the reference to having the affordable housing second dwelling units under construction, which has t
taken out.
Ms. Fountain also explained the last sentence that was added on top of page 5 of the Agreement and pointed out t
number 323 on page 7 of the Agreement has been changed to 400.
Ms Fountain stated that they are recommending approval of the second dwelling units for the Rancho Carrillo prc
with the changes to the Agreement to allow the developer to proceed and get 1,158 final maps and building permi
the end.
Chairperson Wellman opened the item for discussion among the Commission members.
Commissioner Scarpelli asked for clarification of item 6 of the Agreement.
Ms. Fountain explained that it is basically stating that all the developer has to do is get the apartment units comple
Agreement in terms of percentage, but the number of permits has been increased to 754. After the developer gets
and then can get the release of their final units.
Chairperson Wellinan invited the applicant to speak.
Mike Howes, Hofman Planning Associates, 2386 Faraday Avenue, Suite 120, Carlsbad, addressed the Commissic
concurred with Staft’s recommendation. Continental Homes has already received approval for 1 16 affordable ap:
units in Phase I of Village B of the Master Plan. The approval requested represents a portion of the second phase
overall Inclusionary Housing Program for the Master Plan. Mr. Howes described phasing as Ms. Fountain explain
and stated that the remaining portion of Rancho Carrillo’s inclusionary requirement will be fulfilled by a combinat
two and three-bedroom ownership townhome units in Phase I1 of Village B. The Site Development Plan is being I
with hopes of submitting it before the Housing Commission before the end of this year. Mr. Howes explained that
but one of the units meets the 400-sq. ft. minimum. This one unit is slightly below the 400-sq. ft. (323) but does f\
need, and will only be used on Villages G and K, he said.
e-- 0
HOUSING COMMISSION MINUTES
AUGUST 27, 1998
PAGE 12
Chairperson Wellman opened discussion among the Commission.
Commissioner Walker asked if only 323 sq. ft. units will fit on lots G and K.
Mr. Howes explained that some of the other units would also fit on those lots. It is not clear yet about the produc
in Villages G and K because they do not have any builders. However, due to the size, they are trying to have a li.
flexibility in case they have a unique product type that has trouble fitting on those lots.
Commissioner Walker asked if 432-sq. ft. units could also fit on the lots.
Mr. Howes stated positively.
Commissioner Scarpelii stated that he is concerned about the size of the 323-sq. ft. units and asked how they cam
with the 323-sq. ft., which is below the 400-sq. ft. minimum.
Steve Wallet, Starck Architects, stated that the 323-sq. ft. unit is based on a Uniform Building Code minimum thz
minimum area of about 220-sq. ft., which does not include kitchen cabinets, bathrooms, closets, or washeddryer I
The 323-sq. ft. unit is an attempt to design the smallest unit possible to allow a builder maximum flexibility and v
be limited to the smallest lots. However, if a builder feels they want to and can accommodate a larger unit, they %
encouraged to do so. All of the prototypes appear on Village K because the applicant does not know what will be
there or who will be building the units. The smaller units will be built only on Villages G and K.
There was some discussion about the second dwelling unit guidelines in relation to size of units.
Ms. Fountain said that the guidelines state that unless there is compelling evidence that a smaller unit is appropria
400-sq. ft. is considered the minimum size. In some cases, a patio area could increase the usable area and could b
included in the unit’s total square footage.
There was extensive discussion about the variety of floor plans ranging from 323-sq. ft. to 532-sq. ft. There was a
discussion regarding what makes a sufficient kitchen with appropriate appliances, and it was suggested that the arc
take a look at the plans.
The Housing Commission would like to see more of a kitchen than what is required by the Uniform Building Cod(
the one bedroom unit than exists now, and does not see a justification for going under 400-sq. ft.
David Lother, Continental Homes, 1233 El Camino Real, Suite 300, San Diego, CA 92130, addressed the Commi
and suggested that if the Commission has a problem with the 323-sq. ft. units, that they make a recommendation tk
be redesigned and go to the 400-sq. ft. or whatever number the Commission feels is required.
Paul Barnes of Shea Homes addressed the Housing Commission about the discussion about of what is considered
standard kitchen. He said that as opposed to a studio unit, people were actually getting a bedroom, and to accomn
that there was somewhat of a compromise on what might be considered a standard kitchen. He pointed out that th
“kitchen” meets the requirements under the UBC code.
Commissioner Scarpelli stated that the Commission is not favorably inclined toward the smaller units because the
smaller the unit gets and the less efficient, there is concern they will not get rented and used as affordable housing.
There being no other persons desiring to address the Commission on this topic, Chairperson Wellman declared the
public testimony closed and opened the item for discussion among the Commission members.
0 a-
HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 13
Chairperson Wellman stated she has reservations with the 323-sq. ft. unit, and feels it should be recommended th
units be a minimum of 400-sq. ft., which would not include staircases.
Chairperson Wellman suggested that they modify the Resolution, making it mandatory that the second dwelling I
rented to people of 80% or less of medihn income. This will guarantee that there are 50 units dedicated for afforc
she said.
Commissioner Scarpelli made the recommendation that the Commission specify what qualifies as a full kitchen.
Commissioner Calverley stated that it is important to have a kitchen that can accommodate a family with an oven
burners, sink, full refrigerator, dishwasher, etc.
Ms. Fountain explained that the Inclusionary Housing Ordinance allows alternatives, and second dwelling units a
considered alternatives. Staff has said consistently that if they are going to allow second dwelling units, they allo.
under the Second Dwelling Ordinance, not putting additional restrictions on them, because for monitoring purpo:
becomes a nightmare. If the Commission wants to make an additional recommendation to the Council that states
believe the units should be rented, should be income qualified, etc., they could make that recommendation to the
Council. Legally, in terms of having to rent them, it has gone back and forth in the courts and there have been dif
decisions on whether or not you can require someone to rent the units.
ACTION: Motion by Commissioner Noble, and duly seconded, that the Housing Commission &I
Resolution No. 98-0 13, recommending APPROVAL to the Planning Commission anc
Council of the Rancho Carrillo Affordable Housing Agreement and Site Development
SDP 98-12 showing the locations and design of 50 affordable second units in the Ranc
Carrillo Master Plan with the corrections outlined by Ms. Fountain in Staff's presentat
with the exception of Floor Plan A (the 323-square foot second dwelling unit)
VOTE: 5 -2-0
AYES: Calverley, Escobedo, Latas, Noble, Scarpelli
NOES: Walker, Wellman
ABSTAIN: None
ACTION: Minute Motion by Commissioner Calverley, and duly seconded, that the Housing
Commission recommend to the City Council that second dwelling units contain full kit
i.e., kitchens with an oven, four-burner stove, sink, and space for a full-size refrigerato
freezer unit.
Calverley, Escobedo, Latas, Scarpelli, Walker, Wellman
VOTE: 6-1-0
AYES:
NOES: Noble
ABSTAIN: None
There was extensive discussion regarding the requirement of 50 affordable housing units being made available for
on the open market.
ACTION: Minute Motion by Chairperson Wellman, and duly seconded, that the Housing Commi
recommend to the City Council that they amend Condition No. 2 on Page 2 of Resolut
98-013 to include the following: The affordable housing units shall be made available j
on the open rental market. The gross household income of the tenant(s) may not excee
of the San Diego Area Median Income.
VOTE: 4-3-0
AYES: Calverley, Escobedo, Scarpelli, Wellman
NOES: Latas, Noble, Walker
PLANNING COMMISSION 0 October 7, 1998 Page
EXHIBIT {and Noble, Savary, Mo Nielsen
ABSTAI
SDP 98-12 -.RANCHO CARRILLO SITE DEVELOPMENT PLAN FOR SECOND DWELLIN
UNITS - A Site Development Plan for the location and construction of 50 second dwelling units 1
qualify as inclusionary housing units within the Rancho Carrillo Master Plan on property general
future Melrose Drive within Local Facilities Management Zone 18.
located in the southeast quadrant of the city, south of Palomar Airport Road on both sides I
0
Assistant Planning Director, Gary Wayne introduced this item and stated that Assistant Planner, V?
Lynch, would present the staff report.
Project Planner, Van Lynch presented the staff report and described the project as follows: This is
request for approval of 50 second dwelling units to qualify as inclusionary housing units within the varioi
villages of the Rancho Carrillo Master Plan. Of the proposed 50 units, 19 have already receivc
administrative second dwelling permits for the Planning Department staff. Because it is unknown whic
builder will be building the remainder of the villages, the other 31 units are prototypical in design. There
a tentative floor plan for the units. These units will create a palette from which the future developers CE
select when providing market rate units. The units are in conformance with the Housing Commissic
requirements regarding their size and amenities. The studio and one bedroom units vary in size From 4[
to 640 square feet and include full kitchens with laundry hook-ups. The Site Development Plan shows
good dispersion of the units. The project has been conditioned to allow the builder to relocate 50% of tt
units within each respective village which allows some flexibility when the developer comes in with a ne
product. Future second dwelling units will require administrative approval and will be reviewed to confor
to Design Criteria of the Second Dwelling Ordinance, the Master Plan Design Guildelines, and tt
Housing Commission Guidelines.
which allows 20% of the units to be provided as second dwelling units. The Housing Commission h:
recommended approval of the project and staff also recommends approval.
Commissioner Savary-asked how it will be determined who will actually use the second dwelling units I
affordable and who will not.
Mr. Lynch replied that the units will be available to use as affordable units. However, it is not mandato
that they be rented. If, however, they are rented, then they will have to be rented at an affordable rate.
Commissioner Savary asked 'how the City will know that the builder. is fulfilling the 15% requirement.
Mr. Wayne stated that the requirement of the City's inclusionary housing ordinance is that the develope
construct 15% of their project as affordable housing for a targeted income level which is potentia
available. If they target the income level and they change the targeted income rental prices, then it
potentially available to that targeted income group. This does satisfy the City's inclusionary housir
ordinance. There is also a deed restriction. Also, if a unit is rented, an affidavit is signed which requin
that it be rented at an affordable housing price.
Commissioner Savary asked what happens if the owner chooses not to rent the second dwelling unit.
Mr. Wayne replied that that is up to each individual owner to make that decision and regardless of what
done, the unit is potentially available as low income housing.
Commissioner Nielsen asked what enforcement mechanism is in place to ensure that the deed restrictioi
are being enforced and that these units will be rented as affordable units.
The units are in conformance with the Rancho Carrillo Master Pla
MINUTE
Page 7
Mr. Wayne replied that the Housing and Redevelopment Agency monitors the units, not only on an annual
basis, but through construction and through the affordable housing agreements that are approved by the
City. The enforcement is handled much like Code Enforcement through complaints, etc.
Chris Chambers, Continental Homes, 12230 El Camino Real, San Diego, stated that there seems to be
some question about what they, (as the developer) is doing or providing for the inclusionary housing. He
Rancho Carrillo to meet the City’s goals of affordable housing. Not that it deals so much with the
mandated or subsidized types of housing I but that it also deals with some of the moderate housing they
will be providing for the community. Mr. Chambers stated that what they are providing in Rancho Carrillo
is the moderate segment of the market. Employing the use of the exhibits, Mr. Chambers stated that
Village “A will be developed by Shea Homes and the current pricing for those homes will range in price
from the mid $100,000 to possibly as high as $170,000. Continental Homes will be building three
neighborhoods where prices will start at slightly under $200,000 and range to just a little over $300,000.
He pointed out that although $200,000 to $300,000 may seem very high for moderately priced homes, but
there are some finished lots in Carlsbad that have sold for those same prices. Mr. Chambers indicated
that Continental Homes will shortly begin construction on an apartment project in Village “B” and will be
followed by a fee ownership project geared at 80% and below, income level. He explained that it is
Continental Homes’ pledge to address the entire segment of the market and that they have done that by
providing a wide range of housing, including some very expensive houses that will be built next to the units
in Village “H”. Mr. Chambers also stated that, as Mr. Lynch and Mr. Wayne have pointed out, the Master
Plan does provide for this kind of a solution. These 50 homes that are the proposed second dwelling
units, is a mechanism that has been approved by the Housing Commission, the Planning Commission,
and City Council, in a number of different projects. The proposed 50 units are not a huge number of units
but they are an important part of the picture for providing all forms of housing. There is everything from a
studio apartment to homes of approximately 5,000 square feet in .5 acre lots. Mr. Chambers urged the
Commission to approve this application.
Commissioner Monroy stated that this is only the second project to provide on-site affordable housing and
congratulated Continental Homes on their planning.
Chairperson Noble asked Mr. Chamber is he could say what the cost of the new Melrose Avenue was0 to
build.
Mr. Chambers replied that the cost was in excess of $20,000,000.
Chairperson Noble opened Public Testimony. Seeing no one wishing to testify, Chairperson Noble closed
Public Testimony.
Commissioner Nielsen stated that he does not feel that some of the so-called second dwelling units are
actually second dwelling units, because they will never become affordable housing units. However, he
stated, he is reluctant to penalize the entire project because it is a problem for the City and not for the
housing should be a subject of future discussion.
Commissioner Compas agreed with Commissioner Nielsen and stated he would support the project.
Commissioner Savary agreed with Commissioners Nielsen and Compas and stated her support for the
project.
Chairperson Noble stated that he could support the project and agreed that there ought to be some way to
enforce the rental of the affordable units but by some quirk of the law, an owner is only required to have
the unit available and not required to rent it.
0 uctoDer [, 1wu 0 PLANNlNCj LUMMISSIUN
stated that the City should be proud of what Continental RanchlContinental Homes have provided in
developer. Therefore, he would support the project. Commissioner Nielsen also stated that affordable
MINUTES
PLANNING COMMISSION 0 October 7, 1998 0 Page
Motion by Commissioner Compas, and duly seconded, to adopt Planni
Commission Resolution No. 4397, approving Site Development Plan 98-:
based upon the findings and subject to the conditions contained therein.
Noble, Savary, Monroy, Compas, and Nielsen
ACTION:
VOTE: 5-0
AYES:
NOES: None
ABSTAIN : None
5. SDP 98-111CDP 98-44 - CARLSBAD RANCH CORPORATE CENTER - Request for
recommendation of approval for a Site Development Plan and Coastal Development Permit for
three-story, multi-tenant, office building containing 42,960 square feet of building area with a grade parking on a 3.45 acre lot located on the northeast corner of Armada Drive and Fleet Strei
within Planning Area 2 of the Carlsbad Ranch Specific Plan in the Coastal Zone and LOC Facilities Management Zone 13.
Senior Planner, Don Neu, presented the staff report and described the project, with the use of som slides, as follows: This is a request for an approval for a Site Development Plan and a Coast; Development Permit. The site is located in Planning Area 2 of the Carlsbad Ranch Specific Plan, which i the research and development, and office planning area. The site is located north of Armada Drivc immediately east of Fleet Street. The proposed project is a three-story multi-tenant Office building of ju!
under 43,000 square feet in area, is 44'6" in height, and the overall project site is 3.45 acres. Tht proposed parking is one over the required 1:250 which totals 173 parking spaces. This is a pregrader
development lot with frontage on two streets. The Planning Commission previously reviewed anc
recommended approval of the Specific Plan and the Master Tentative Map, in 1995-96. Other prior actio1 related to this project was the approval of an administrative variance for the rear landscape setback area reducing the rear landscape setback in a portion of the site to allow for circulation and parking. This wa: done because of the unusual shape and configuration of this lot, as well as the larger than usua
landscape setback that was put into the Specific Plan to create a buffer between the site and the LEGC project to the east. This project requires the approval of the Site Development Plan and a Coasta
Development Permit and is in compliance with all of the standards and design guidelines of the Specific
Plan. City Council does need to act on this project, since the proposed height is above 35 feet. One of the unique features of the Specific Plan, in regard to the building height, is the requirement to not have tc increase the building setbacks for every one foot over the 35 feet in height. Ordinarily, the increasea setback area would be a required landscape setback area. Findings can be made in a number of areas.
The project exceeds the minimum standards, such as in the landscaped parking area, as the project proposes 11% as opposed to the 3% minimum. The project also exceeds all the requirements in the areas of architectural design and materials. The overall building coverage is low (9Z%) because it is a 3-
story building where the Specific Plan would allow 50% coverage. The CirCUlatiOn System has been reviewed for truck turning movements and found to meet those standards as well. The project is in the
Palomar Airport influence area and in the 60 CNEL noise contour. The site is approximately 7,000 feet to
the west of the airport and is considered a compatible use. Regarding the Coastal Program, the proposed
project is in the Mello II Segment. Many of the issues have been previously dealt with in the Specific Plan, such as the agricultural conversion mitigation fee that has already been paid for this property, master drainage facilities have already been constructed, resulting in no Coastal issues at this time.. The project
is in the Zone 13 Fac es Plan and will be required-to pay a non-residential park fee. With regard to the
EIR, the overall EIR for the Carlsbad Ranch did include the future development and staff has prepared an initial study and found that the scope of this project is within that Certified EIR, resulting in the application of all of the applicable mitigation measures from the EIR to this development. Staff therefore recommends that the Planning Commission recommend approval of both of these actions to the City Council.
John Ohlson, 5355 Mira Sorrento, San Diego, the project architect with Smith Consulting Architects,
stated that this project, because of its unique shape, was very challenging when it came to parking. They
had to plan the parking and then design the building in the space that was left over. This is a Class A office building, the architectural design is timeless in nature, and will be built with stone, granjte, and
MINUTES
mcommG mQUESTbBY EXHIBIT
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk’s Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad, California 92008
(ABOVE SPACE FOR RECORDERS USE)
FIRST AMENDED AND RESTATED
AFFORDABLE HOUSING AGREEMENT
IMPOSING RESTRICTIONS ON REAL PROPERTY
This FIRST AMENDED AND RESTATED AFFORDABLE HOUSING AGREEMEh IMPOSING RESTRICTIONS ON REAL, PROPERTY (“Agreement”), entered into this
day of , 1998, by and between the CITY OF CARLSBAD, a municipal corporatic (“City”), and CONTINENTAL RANCH INC., a Delaware corporation (“Developer”), is made wi reference to the following:
Developer is the owner of certain real property in the City of Carlsbad, in tl County of San Diego, California (“Subject Property”) described in “Attachment A,” which attached hereto and incorporated herein by this reference.
A.
B. City and Developer have previously entered into that certain Affordable Housii Agreement Imposing Restrictions on Real Property dated February 1998 (“Initj
Agreement”), which was recorded on , 1998, in the Officii Records of Si
Diego County as Document No. 1998- . City and Developer want to amei
development of the Subject Property in compliance with the City’s Inclusionary Housii
Ordinance.
and restate the Initial Agreement by this Agreement to provide for the orderly and efficie
C. Developer wishes to construct 1,108 residential units and fifty (50) seconda dwelling units (“Phase 1 of the Master Development”) on a portion of the Subject Property. T
City has approved the Rancho Carrillo Master Plan (“Master Plan”); Carlsbad Tract Map Numb€
CT 93-01, CT 93-04, CT 93-07, CT 93-08 and CT 95-06; Planned Unit Development Numb€
PUD 93-06, PUD 93-07, PUD 95-04 AND PUD 95-05; and, Site Development Plan Numbers SI
94-01, SDP 95-12 and SDP 95-13 for the “Master Development” of the Subject Property. The Cj
issued these approvals subject to certain Conditions of Approval, including a condition requirii
fifteen percent (15%) of the units in the Master Development to be affordable housing as requirt
by the City’s Inclusionary Housing Ordinance, Carlsbad Municipal Code Chapter 21.85 (“CN
Chapter 21.85”). In that regard, this Agreement, as supplemented and amended from time to tin
is intended to implement the requirements imposed by CMC Chapter 2 1.85 for these approvals a all future City approvals of tentative maps, planned development permits and site developme
plans pursuant to the Master Plan.
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D. Developer has indicated that it intends to meet its inclusionary housing requiremei (i) for Phase 1 of the Master Development by constructing, or causing to be constructed, 116 uni
within Village B of the Master Plan and (ii) for a portion of the balance of the Master Developme
Master Development.
Developer is required by the Conditions of Approval to enter into an Affordab Housing Agreement as required and with the content specified by CMC Chapter 21.85. Th Agreement is an Affordable Housing Agreement pursuant to CMC Section 21,85,020(2), and sh;
be signed prior to the ‘approval of additional Final Maps for the Subject Property. The Initi
Agreement permitted the approval of Final Maps for 775 dwelling units for the Subject Propert
which included 116 affordable housing rental units. This Agreement shall permit the approval Final Maps for up to 1,158 dwelling units for the Subject Property, which includes a total of It affordable housing rental units.
by constructing, 01 causing to be constructed, 50 secondary dwelling units dispersed throughout tl
E.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
follows:
1, Incorporation of Recitals; Amendment and Restatement of Initial Agreement. TI
Recitals are hereby incorporated in this Agreement. The Initial Agreement is hereby superseded a~
amended and restated in its entirety by this Agreement.
2. Satisfaction of Affordable Housing Obligation and Conditions of Approval. In ord
to satisfy the Conditions of Approval of CT 93-01, CT 93-04, CT 93-07, CT 93-08, CT 95-06 a
future tentative maps approved by the City within the Master Plan, and the requirements of CM
Chapter 21.85, Developer shall cause a minimum of one hundred sixteen (116) multifami
dwelling units and a maximum of fifty (50) secondary dwelling units of Phase 1 of the Mas1
Development to be affordable to lower-income households (the “Affordable Units”), according
the schedule and terms contained herein.
3. Number and Type of Affordable Units. Developer shall construct, or cause to
constructed, one hundred sixteen (1 16) multifamily dwelling units (“Affordable Multifami Units”) and a maximum of fifty (50) secondary dwelling units (“Affordable Second Dwellil Units“).
4. Terms Governing: Provision of Affordable Multifamily Units. Provision of t
Affordable Multifamily Units shall be governed by the following terms:
4.1 Location of Multifamily Units. The Phase 1 Affordable Multifamily Un
shall consist of one hundred sixteen (1 16) units to be constructed within Village B of the Mas1 Development. The Affordable Second Dwelling Units shall be constructed within Villages G, H, K, My Q and R of the Master Development.
4.2 Size and Bedroom Count. The Phase 1 Affordable Multifamily Units sh
include one, two and three bedroom units in the numbers and with the square footages indicated
“Attachment By’ to this Agreement. The Affordable Second Dwelling Units shall include studi
and one bedrooms in the numbers and with the square footages indicated in “Attachment B” to tl
Agreement.
4.3 Affordability Requirements. The Phase 1 Affordable Multifamily Units sh
be restricted to occupancy by households with incomes, at the time of initial occupancy, that do r
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exceed 50%, 60%, or 80% of the median income for San Diego County, adjusted for actu household size. Twenty percent (20%) of the Phase 1 Affordable Multifamily Units shall 1
affordable to households with incomes, at the time of initial occupancy, that do not exceed 50% I
the median income for San Diego County, adjusted for actual household size; forty percent (403
exceeding 60% of the median income; and forty percent (40%) of the Phase 1 Affordab
Multifamily Units shall be affordable to households with incomes not exceeding 80% of the medii income. Monthly rents (including utility allowance as published by the United States Department
Housing and Urban Development) of the Affordable Multifamily Units shall not exceed 1/12*
30% of the designated percentage of median income for San Diego County, adjusted for assume
household size appropriate for the unit. Second Dwelling Units are not required to be rente However, if rented, the monthly rents (including utility allowance as published by the United Stat
Department of Housing and Urban Development) for the Affordable Second Dwelling Units sh:
not exceed 1/12” of 30% of 80% of the median income for San Diego County, adjusted f
assumed household size appropriate for the unit. Median income figures shall be those publish(
annually by the United States Department of Housing and Urban Development. as sum^
household size figures shall be provided to Developer by the City of Carlsbad Housing a~
Redevelopment Department. With respect to each Affordable Multifamily Unit and Affordat Second Dwelling Unit, the affordability requirements of this Section 4.3 shall continue for fifty-fi (55) years from the date of issuance of a Certificate of Occupancy by the City for such unit. T
affordability requirements of this Section 4.3 shall be set forth in the Regulatory Agreeme
shall supersede this Agreement with respect to the Phase 1 Affordable Multifamily Units upc recordation of the Regulatory Agreement.
of the Phase 1 Affordable Multifamily Units shall be affordable to households with incomes n
between the Developer or its successor and the City, provided for in Section 4,7,4 below, whil
4.4 Affordable Housing Developer. Developer has indicated it will contract wj
an affordable housing developer to develop and construct the Phase 1 portion of the Affordat
Multifamily Units to be constructed in Village B. Developer shall obtain prior City approval oft developer and proposed development agreement for the units (“Affordable Housing Developme Agreement”). The Affordable Housing Development Agreement shall describe with particularj the financial arrangements for the construction of the Affordable Multifamily Units, the restrictio applicable to the Affordable Multifamily Units and the record keeping obligations for t
management of the units. Developer or guest builders shall construct the Affordable Seco
Dwelling Units. Property owner must sign affidavits of compliance prior to the issuance of t required Second Dwelling Unit Administrative Permits. The affidavits shall be provided to perspective home buyers prior to entering into a sales contract for the property.
4.5 Schedule for Developing Affordable Multifamily Units. Developer sh
construction. The Affordable Multifamily Units shall be developed pursuant to the followi
schedule:
provide the Affordable Second Dwelling Units concurrently with the related single family hor
4.5.1 Prior to the approval of any additional Final Maps for the Mas Development, the following shall be in place:
4.5.1.1 This Agreement shall be duly signed and recorded agaii
the Subject Property.
4.5.1.2 A Site Development Plan shall be approved for the Phasc Affordable Multifamily Units. City hereby agrees to priority process the S
Development Plan for the Phase 1 Affordable Multifamily Units.
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4.5.1.3 Site Development Plan 98-12 shall be approved for the Pha:
1 Affordable Second Dwelling Units.
4.5.2 After this Agreement is duly signed and recorded against the Subje Property, building permits shall not be issued for more than 400, or 34%, of the tot market rate units included in Phase 1 of the Master Development prior to the Pha 1 Affordable Multifamily Units (1 16 total) in Village B being under constructio
For purposes of this Agreement, "under construction'' means approval and issuan of the building permits and completion of inspection(s) for the foundation(s) for tl
initial phase of the Phase 1 Affordable Multifamily Units. The 400, or 34%, of tl
total building permits for market rate units included in Phase 1 of the Mast Development may be allocated among the villages in Phase 1 of the Mast
Development in any combination as Developer determines in its sole discretion. T
total number of building permits which may be issued for market rate units may '
increased by seven (7) permits for each additional one (1) Affordable Secoi
The Developer shall at the time a residential structure is constructed on t
Affordable Housing Lot identified for the second dwelling unit, include in SUI
residential structure the required Second Dwelling Unit.
Dwelling Unit Administrative Permit approved and issued by the City of Carlsba
4.5.3 Building permits shall not be issued for more than 754, or 769'0, the total of the market rate units included in Phase 1 of the Master Developme
prior to completion of the construction of the Phase 1 Affordable Multifamily Un
in Village B (1 16 units total). After final inspection is complete by the Buildii Department and a final Certificate of Occupancy is issued, for the Phase Affordable Multifamily Units (1 16 total), building permits may be obtained for t
remaining 238 market rate units in Phase 1 of the Master Development, for a to
of 1,158 dwelling units in the Master Development ( 992 market rate units + 11 Affordable Multifamily Units and Affordable Second Dwelling Units). The to number of building permits which may be issued for market rate units may increased by seven (7) permits for each additional one (1) Affordable Seco
Dwelling Unit Administrative Permit approved and issued by the City of Carlsbl
The Developer shall at the time a residential structure is constructed on t Affordable Housing Lot identified for the second dwelling unit, include in su
residential structure the required Second Dwelling Unit.
4.5.4 The Initial Agreement permitted the approval of a final map or ma
for 775 dwelling units. After Site Development Plan 98-12 is approved for t
Affordable Second Dwelling Units and this Agreement is duly signed and record
against the Subject Property, a final map or maps may be approved for 1,l
dwelling units (992 market rate units + 166 affordable units, including a maximt
of 50 second dwelling units).
4.5.5 Building permits shall not be issued for more than 1,158 of t
dwelling units of the Master Development prior to the approval of a S
Development Plan and subsequent amendment to this Affordable Housi Agreement for the Phase 2 Affordable Multifamily Units in Village B. City here
agrees to priority process the Site Development Plan for the Phase 2 Affordal
MultiFamily units.
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4.6 Compliance Report. Following completion of construction of the Phase
Affordable Multifamily Units, a Compliance Report meeting the requirements of CMC Sectic
21 X5.180, verifying compliance of the completed Phase 1 Affordable Multifamily Units with tl
terms of this Agreement and certified as correct by a third-party, shall be submitted annually to tl
Housing and Redevelopment Director. If similar reports on the Phase 1 Affordable Multifami
Units are required for regulatory compliance with other financing programs, those reports may 1
deemed satisfactory for the purpose of this section by the Housing and Redevelopment Directc with respect to the Phase 1 Affordable Multifamily Units covered by such reports, provided th
copies of those reports are provided on an annual basis to the Housing and Redevelopment Direct
with a third party certification addressed to the City.
4.7 City Amroval of Documents. The following documents, in form ai
substance acceptable to the City, shall be used in connection with the rental of the Phase
Affordable Multifamily Units. Such documents shall be prepared by the Developer or its success and shall be submitted to the Housing and Redevelopment Director for review and approval no la1
than the commencement of construction of the Phase 1 Affordable Multifamily Units:
A marketing plan establishing the process for seeking, selecting a
determining the eligibility of tenants of the Phase 1 Affordable Multifamily Units.
4.7.1
4.7.2 A form of Rental Agreement.
4.7.3 A property management plan,
4.7.4 A form of regulatory agreement between the Developer or
successor and the City ("Regulatory Agreement").
Terms Regarding Provision of Affordable Second Dwelling Units. Provision oft 5.
Affordable Second Dwelling Units shall be governed by the following terms:
5,1 Location of Units. The Affordable Second Dwelling Units shall be locat in the villages of the Master Plan as approved in Site Development Plan 98-12. The lots identifi as including an Affordable Second Dwelling Unit shall be required to have an approv Administrative Permit in compliance with the requirements of CMC Section 21.10.015, unlc
otherwise approved by the Community Development Director, prior to construction on the lot.
5.1.1 Subject to the approval of the Planning Director, up to fifty percc
(50%) of the Affordable Second Dwelling Units in Villages G, K, M, Q-2, Q-4 a R of the Master Development may be relocated within the same village at the tir
of approval of the Affordable Second Dwelling Unit Administrative Permit, subjt
to compliance with all requirements of CMC Section 21.10.015 and the Housi
Commission's Guidelines for Development of Second Dwelling Units. Affordal
Second Dwelling Units must be dispersed throughout the villages similarly to t dispersal shown on Exhibit "A" of Site Development Plan 98-12.
5.1.2 If the City determines that the proposed revisions to the locations
Affordable Second Dwelling Units necessitates an amendment to this Agreeme
then the proposed amendment, and any necessary modifications to exhibits to reflc
the amendment, shall be administratively approved by the Commun
Development Director. An application for this type of revision shall only requ the signature of the owner of the particular phase of a village in which the revisi
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will occur. Any proposed revision shall be in compliance with all requirements
CMC Section 21.10.015 and the Housing Commission's Guidelines f Development of Second Dwelling Units.
5.1.3 At the time of review of the Affordable Second Dwelling Ur Administrative Permit, the Planning Director shall determine that all proposl
Affordable Second Dwelling Units in the Master Plan are in conformance with tl
requirements of CMC Section 21.10.01 5 and the Housing Commission's Guidelin
for Development of Second Dwelling Units. In addition, the second dwelling un
in Villages H, J and Q-1 shall be developed as set forth in the approved SDP 98-1 Affordable Second Dwelling Units developed in Villages G, K, M, Q-2, Q-4 and
shall be compatible in design and appearance with the prototypical units approvl by Site Development Plan 98-12. Each unit shall have its own separate entram have a hookup for a washer and dryer and have a minimum size of 323 square fc
in Villages G and K only and a minimum size of 432 square feet in Villages M, Q
44 and R.
5.2 Schedule of Development of Second Dwelling Units. The Affordat Second Dwelling Units shall be constructed in the normal course of development with the mark
rate single-family units included within the Master Development. The Affordable Second Dwellii
Units shall be constructed according to the schedule for constructing the market rate single-famj units; provided, however, the construction of the Affordable Second Dwelling Units shall
reasonably proportionate to the construction of the market rate single-family units.
6. Release of Subiect ProDeity From Agreement. The covenants and conditions here contained shall apply to and bind the heirs, executors, administrators, successors, transferees a
assignees of all the parties having or acquiring any right, title or interest in or to any part oft
Subject Property, and shall run with and burden the Subject Property until terminated in accordan with the provisions hereof. Prior to the issuance of building permits, Developer shall expres:
make the conditions and covenants contained in this Agreement a part of any deed or otk
instrument conveying any interest in the Subject Property. Notwithstanding anything to t contrary set forth in this Agreement, individual purchasers of single-family units pursuant to approved public report in compliance with the California Subdivided Lands Act, and mortga lenders holding deeds of trust on such individual units after sale to such purchasers, shall not subject to the terms of this Agreement; and the terms of this Agreement shall be of no further for or effect with respect to such completed unit on the date of the recordation of a deed to t
individual purchaser. Upon allocation by the Developer of the building permits for the first 41
market rate units among the villages in Phase 1 of the Master Development, in any combination
Developer determines in its sole discretion, then those 400 market rate units shall be released frc the burdens of this Agreement. Upon allocation by the Developer of the building permits for t 401St through 755* market rate units among the villages in Phase 1 of the Master Development,
any combination as Developer determines in its sole discretion, and after the Phase 1 Affordal
market rate units shall be released from the burdens of this Agreement. After final inspection
complete, or a final Certificate of Occupancy is issued, for the Phase 1 Affordable Multifam
Units, then the remaining 238 market rate units in Phase 1 of the Master Development shall released from the burdens of this Agreement. Appropriate adjustments shall be made in the numl
of market rate units released fiom the burdens of this Agreement consistent with the increases
building permits pursuant to Subparagraph 4.5.3 above.
Multifamily Units (116 total) in Village B are under construction, then the 40lSt through 75
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7. Default. Failure of Developer to cure any default in Developer’s obligations und the terms of this Agreement within ninety (90) days after the delivery of a notice of default from t
City (or where the default is of a nature which cannot be cured within such ninety (90) day peric
the failure of Developer to commence to cure such default within the ninety (90) day period
time period) will constitute a breach of this Agreement and the requirements of Carlsbad Municir
Code Chapter 21.85 and the City may exercise any and all remedies available to it with respect
Developer’s failure to satisfy the Conditions of Approval and Chapter 21.85 of the Carlsb Municipal Code, including, but not limited to, the withholding of building permits for the marl rate units within the Master Plan.
Developer’s failure to proceed diligently to complete the cure of such a default withm a reasonak
8. Appointment of Other Agencies. At its sole discretion, the City may designa
appoint or contract with any other public agency, for-profit or non-profit organization to perfoi
the City’s obligations under this Agreement.
9. Hold Harmless. Developer will indemnify and hold harmless (without limit as
amount) City and its elected officials, officers, employees and agents in their official capaci (hereinafter collectively referred to as “Indemnitees”), and any of them, from and against all lo: all risk of loss and all damage (including expense) sustained or incurred because of or by reason
any and all claims, demands, suits, actions, judgments and executions for damages of any and eve kind and by whomever and whenever made or obtained, allegedly caused by, arising out of
relating in any manner to Developer’s actions or defaults pursuant to this Agreement, and sh;
protect and defend Indemnitees, and any of them, with respect thereto.
10. Insurance Requirements. Developer (or its successor or successors) shall obtain, its (or their) expense, comprehensive general liability insurance for development of the Phase
Affordable Multifamily Units naming Indemnitees as additional named insureds with aggregs
limits of not less than Five Million Dollars ($5,000,000) for bodily injury, and death and propel damage, including coverage for contract liability and products and completed operations purchas by Developer (or its successor or successors) from an insurance company duly licensed to enga in the business of issuing such insurance in the State, with a current Best’s Key Rating of not le
than A-V, such insurance to be evidenced by an endorsement which so provides and delivered
the City Clerk prior to the issuance of any building permit for the Phase 1 Affordable Multifm Units.
1 1. Notices. All notices required pursuant to this Agreement shall be in writing and m
be given by personal delivery or by registered or certified mail, return receipt requested, to the par
to receive such notice at the addresses set forth below:
To the City of Carlsbad: CITY OF CARLSBAD
Housing and Redevelopment Department
Attn: Housing and Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, California 92008-23 89
CONTINENTAL RANCH, INC. Attn: Dave Lother 12230 El Camino Real, Suite 300 San Diego, California 92130
To the Developer:
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Any party may change its address to which notices are to be sent by notifying t other party of the new address, in the manner set forth above.
12. Integrated Agreement. This Agreement constitutes the entire agreement between t
parties and no modification hereof shall be binding unless reduced to writing and signed by t parties hereto.
13. Duration of Agreement. This Agreement shall remain in effect for 55 ye:
following the date certificates of occupancy have been issued for all Affordable Units.
14. Recording of Agreement. The parties hereto shall cause this Agreement to
recorded against the Subject Property in the Official Records of the County of San Diego.
15. Severability. In the event any limitation, condition, restriction, covenant
provision contained in this Agreement is to be held invalid, void or unenforceable by any court
competent jurisdiction, the remaining portions of this Agreement shall nevertheless be and rem2
in full force and effect.
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nV WITNESS WEEOF, the p&itieg hereto have caused this Agreement to Le signed of the day and year first above written.
CITY: CITY OF CARLSBAD, a municipal corporation
MARTIN ORENYAK
Cornunity Development Director
Approved as to form:
RONALD R. BALL,
City Attorney
DEVELOPER: CONTINENTAL RANCH, INC., a Delawz
corporation
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ATTACHMENT “A”
(Subject Property)
I---_
e 0
ATTACHMENT “B”
(Phase 1 Multifamilv Size and Bedroom Count)
Number of gquare Footage Number of
Bedrooms of Unit Units
One 700 S.F. 12
TWO 900 S.F. 48
Three 1100 S.F. 56
TOTAL: 116
SECOND DWELLING UNITS
. -__
0 0
- City of Carlsbad
November 20, 1998
Continental Ranch, Inc.
Attn: Dave Lother
I22230 El Camino Real, Suite 300
San Diego, CA 92130
AFFORDABLE HOUSING AMENDMENT RANCHO CARRILLO SDP 98-12/MP-139
Enclosed for your records are copies of Agenda Bill No. 14,937 and Resolution No.
98-375. These items went before the Carlsbad City Council on November IO, 1998.
When Council adopted the resolution, they approved an amendment to an Affordable
Housing Agreement for fifty (50) affordable second dwelling units within the Rancho
Carrillo Master Plan.
When the amended agreement is returned to Council and is fully signed, we will provide
your company with a copy. Until then, if you have questions regarding the process,
please call Craig Ruiz, Housing and Redevelopment, at (760) 434-2817.
e= Q+
Kathleen D. Shoup
Sr. Office Specialist
1200 Carlsbad Village Drive - Carlsbad, CA 92008-1 989 0 (760) 434-2808