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HomeMy WebLinkAbout1999-04-06; City Council; 15122; La Costa Glenm - CITY OF CARLSBAD - AGENDA BILL AB# ‘3: 12 3, TITLE: DEPT. HD. e MTG. k-b-92 THE LA COSTA GLEN REQUEST TO PURCHASE AFFORDABLE HOUSING CREDITS CITYATTY. & DEPT. H/RED JIP y&6&w 9B-bI , I RECOMMENDED ACTION: ADOPT Resolution 99 - 1 I2- as recommended by the Housing Commission, APPROVING a request by Continuing Life Communities LLC., to purchase 30.2 Affordable Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the La Costa Glen project under the City’s lnclusionary Housing Ordinance. I Proiect Description: The La Costa Glen project is a proposal to construct a continuing care retirement community for people 62 years of age and older. The project is proposed for a vacant 55 acre site located on the west side of El Camino Real south of La Costa Avenue, and formerly referred to as the Green Valley site. The proposed project will consist of: a health center with approximately 72-79 skilled nursing care beds and 71 assisted living suites; three buildings with a total of 229 apartment units, 33 personal care suites, and 2 guest rooms; 95 twin/townhomes; 76 detached single-family homes; a recreation building; a maintenance building; and a recreational vehicle storage area. Affordable Housino Reauirement: Due to the uniqueness of the project, it was difficult to determine how the requirements of the City’s lnclusionary Housing Ordinance would be applied to the development. In consulting with the State Housing and Community Development Department (HCD), it was determined that a portion of the project would be considered “housing units” per the United States Census definition and that the units would be reported towards meeting the City’s regional share housing needs. Based upon HCD’s input, staff believes that the project is required to provide housing affordable to lower income residents. In determining the project’s inclusionary housing obligation, staff and the developer agreed that the apartment units, which contain common dining and nursing services, and the health care center meet the Carlsbad Municipal Code definition of a professional care facility (see Attachment 5) and are not subject to the City’s lnclusionary Housing Ordinance. It was also mutually agreed that the 95 twin/townhomes and 76 detached single-family homes qualify as “residential housing units” and will require the developer to provide 30.2 housing units as required by the City’s lnclusionary Housing Ordinance. The applicant has three potential options to satisfy their lnclusionary Housing requirement. First, the project could construct on-site affordable housing units. However, continuing care facilities involve highly complex financing, regulatory and licensing requirements which are unlike those found in the development of typical multi-family residential housing. In addition, the project requires high entrance fees, which range from approximately $200,000 to $400,000, and high monthly fees starting at $1,200. The combination of these factors make the incorporation of affordable housing into the project highly infeasible. The second option would be to subsidize the rent of 30 existing apartment units. The developer is not an owner or operator of affordable multi-family housing. For this reason, the developer has not chosen to pursue this option. The third option, which the developer is requesting, is to purchase 30.2 affordable housing credits from the Villa Loma Affordable Housing Project. Page 2 of Agenda Bill No. IS, 1 XL The purchase of affordable housing credits requires approval by the City Council. The City’s lnclusionary Housing Ordinance permits off-site satisfaction of an inclusionary requirement through participation in a Combined lnclusionary Housing Project (“Combined Project”) if the City Council determines that it is in the public interest. Purchase of credits in the Villa Loma project constitutes participation in a Combined Project. The City Council has adopted Policies 57 & 58 that govern the sale of affordable housing credits. The policies examine the feasibility of an on-site proposal, the advantages and disadvantages of an off-site proposal, and whether the off-site project advances the City’s housing goals and strategies. There are 122 housing credits currently available for purchase in the Villa Loma Project. Housino Commission Recommendation: In reviewing the applicant’s request, the Housing Commission utilized the criteria contained in the above mentioned policies to make their recommendation. Due to the uniqueness of the project, the Housing Commission has recommended that the City Council approve the attached Affordable Housing Agreement which will allow the subject project to purchase 30.2 credits in the Villa Loma Affordable Housing Project. Copies of the Housing Commission staff report and related minutes, dated February 11, 1999, are attached for review by the City Council. FISCAL IMPACT The Affordable Housing Credit is currently $34,000 per unit. The purchase of 30.2 credits will result in a payment of $1,026,800 to the City’s Housing Trust Fund. 1. City Council Resolution No. WH I! 2 (approving the purchase of housing credits for the La Costa Glen Project) 2. Draft Affordable Housing Agreement 3. Staff Report to the Housing Commission dated, February 11, 1999, w/attachments 4. Draft Housing Commission Minutes dated, February 11, 1999 5. Carlsbad Municipal Code Definition of “Professional Care Facility” 3 1 E c 1c 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 99-112 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A REQUEST BY CONTINUING LIFE COMMUNITIES LLC., TO PURCHASE 30.2 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE LA COSTA GLEN PROJECT UNDER THE CITY’S INCLUSIONARY HOUSING ORDINANCE. APPLICANT: CONTINUING LIFE COMMUNITIES LLC. CASE NO: SDP 98-Ol/CDP 98-04/CUP 98-01 WHEREAS, Continuing Life Communities, LLC., the developer of the La Costa Glen continuing care retirement community, has made application for a Site Development Plan (SDP 98- 01), Conditional Use Permit (CUP 98-01) and a Coastal Development Permit (CDP 98-04) within the City of Carlsbad for the development of a continuing care retirement community; WHEREAS, the Planning Commission, at their meeting of January 6, 1999, in approving the above referenced applications, determined that 171 attached and detached villas within the project are residential housing units; WHEREAS, the Housing Commission, at their meeting of February 11, 1999, recommended that the City Council approve the request by Continuing Life Communities, LLC., to purchase 30.2 affordable housing credits in the Villa Loma housing project to satisfy the inclusionary housing requirement for the development of 171 housing units as permitted by the approval of Site Development Plan 98-01, Coastal Development Permit 98-04 and Conditional Use Permit 98-01; WHEREAS, the City Council did hold a public meeting to consider said request for the purchase of Affordable Housing Credits by Continuing Life Communities, LLC.; WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Council considered all factors relating to the application and request to purchase Affordable Housing Credits: NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 3 - f < 1c 1.1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2 3 4 5 5 7 3 8 1 1 . 2. 3. 4. 5. The project is consistent with the goals and objectives of the City of Carlsbad’s Housing Element, the Consolidated Plan, the Inclusionary Housing Ordinance, and the Carlsbad General Plan. Based upon the analysis contained within the City Council Staff Report and the Housing Commission Staff Report dated February 11, 1999, the City Council finds that the off-site satisfaction of the inclusionary housing requirement is in the public interest. That based on the information provided within the City Council Staff Report, the Housing Commission Staff Report and testimony presented during the public meeting of the City Council, the City Council hereby APPROVES a request by Continuing Life Communities, LLC., to purchase 30.2 affordable housing credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the La Costa Glen project under the City’s inclusionary housing ordinance. That the City Council hereby authorizes the Community Development Director to execute the Affordable Housing Agreement in substantially the form presented to the City Council and to execute such other documents, or take other actions as may be necessary or appropriate to assist the developer in acquiring the Affordable Housing Credits. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, held on the 6th day of April , 1999 by the following vote, to wit: AYES: Council Members Hall, Finnila, Nygaard and Kulchin NOES: None ABSENT: Council Member Lewis ABSTAIN: ATTEST: MATTHEW HALL, Mdyor-Pro Tern A& _ ALETHAL.RAUTENKRANZ, City Clerk ) (SEW CCRESO# 9?-rrz PAGE2 ? EXHISIT’ 2 RECORDING REQUESTED BY: City of Carlsbad WHEN RECORDED MAIL TO: City of Carlsbad City Clerk’s Office Attn: Citv Clerk 1200 Carlsbad Village Drive Carlsbad, California 92008 (Space above for Recorder’s Use) AFFORDABLE HOUSING AGREEMENT THIS AFFORDABLE HOUSING AGREEMENT (“Agreement”) is entered into this day of 1999, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to a; the “City”), and Continuing Life Communities LLC., a California limited liability company (hereinafter referred to as the “Developer”). RECITALS A. Developer is the owner of certain real property in the City of Carlsbad, County of San Diego, State of California, described in “Attachment A”, which is attached hereto and incorporated herein by this reference, and which is the subject of a Site Development Plan (SDP98-Ol), a Coastal Development Permit(CDP98-04) and a Conditional Use Permit (CUP98-01). The approval of the Site Development Plan, Coastal Development Permit and Conditional Use Permit provides conditional approval of the construction of a continuing care retirement community for elderly residents and consists of a health center with skilled care nursing, 71 assisted living suites, 33 personal care suites, three buildings totaling 229 apartment units, 95 twin/townhomes and 76 detached single family homes. B. The 95 twin/townhomes and 76 detached single family homes which are a portion of the residential housing units (the “Units”), have been determined by the City Council to be subject to the affordable housing requirements of the Green Valley Master Plan and the City’s Inclusionary Housing Ordinance, Chapter 21.85 of the Carlsbad Municipal Code (“Project”). The City Council has determined that the living units that are Professional Care/Commercial Living Facilities as defined by Carlsbad Municipal Code Section 21.04.093 (health center, 71 assisted living suites and 33 personal care suites) are not subject to the requirements of the Inclusionary Housing Ordinance. C. Condition No. 18 of Planning Commission Resolution No. 4447 states that this Affordable Housing Agreement shall be entered into between the City and the Developer as a means of satisfying the Developers’ affordable housing obligation (“Affordable Housing Obligation”), as such is defined under Chapter 2 1.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. 4447 provides that the Affordable Housing Obligation of thirty and two-tenths (30.2) units will be satisfied by applying the requirements set forth in this Agreement. NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the mutual covenants contained herein, the parties agree as follows: 1. THE RECITALS ARE TRUE AND CORRECT. 2. SATISFACTION OF AFFORDABLE HOUSING REOUIRJZMENTS THROUGH THE PAYMENT OF AFFORDABLE HOUSING CREDITS. (a> Performance under this Agreement satisfies the Developers’ obligation for affordable housing under Chapter 21.85 of the Carlsbad Municipal Code as applied to the development covered by Site Development Plan No. SDP98-01, Coastal Development Permit No. CDP98-04, and Conditional Use Permit No. CUP98-01 by reason of the approvals of the Site Development Plan, Coastal Development Plan, and Conditional Use Permit, including Condition No. 18 listed in Planning Commission Resolution No. 4447 and any other applicable condition of approval. 0-J) The Developer shall pay for thirty and two-tenths (30.2) affordable housing credits (“Credits”) as established by the City and as required by Condition No. 18 of Planning Commission Resolution No. 4447, based on 171 Units and calculated by the formula {( 171 divided by .85) multiplied by .15}. Payment for the Credits may be made as each building permit for any of the Units is obtained for the Project. The total purchase price for the Credits required will be divided by the total number of required units located within the Project, and paid per individual building permit obtained for each Unit within the Project. If the total number of Units decreases, the total number of required credits will decrease according to the above formula. The Credits shall be purchased at the price in effect at the time a building permit is requested for a Unit subject to the Conditions of this Agreement. The developer shall be responsible for any increase in the housing credit amount at the time each credit is actually purchased. 3. REMEDIES Failure by the Developer to perform in accordance with this Agreement will constitute failure to satisfy the requirements of Chapter 21.85 of the Carlsbad Municipal Code and Condition No. 18 of Planning Commission Resolution No. 4447. Such failure will allow the City to exercise any and all remedies available to it including but not limited to withholding the issuance of building permits for the lots shown on Site Development Plan (SDP98-01) a Coastal Development Permit(CDP98-04) and a Conditional Use Permit (CUP98-01). 4. HOLD HARMLESS Developer will indemnity and hold harmless (without limit as to amount) City and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as “Indemnitees”), and any of them, from and against all loss, all risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all claims, demands, suits, actions, judgments and executions for damages of any and every kind and by whomever and whoever made on, obtained, allegedly caused by, arising out of or relating in any manner to Developers’ actions or defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. 5. NOTICES All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registered or certified mail, return receipt requested to the party to receive such notice at the address set forth below: TO THE CITY: City of Carlsbad Housing and Redevelopment Department Attn: Housing & Redevelopment Director 2965 Roosevelt Street, Suite B Carlsbad, California 92008-2389 TO THE DEVELOPER: Richard D. Aschenbrenner Chief Executive Officer . Continuing Life Communities LLC 7707 El Camino Real Carlsbad, CA 92009 Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above. 6. RESERVATION OF CREDITS The City will reserve 30.2 Villa Loma affordable housing credits exclusively for the La Costa Glen project for a period not to exceed two (2) years from the date that the City Council approves purchase of the Villa Loma housing credits for the La Costa Glen project. If the credits are not purchased for the La Costa Glen project within the 2 year reservation period, the credits will be released and then made available for purchase on a first come, first served basis. If the Developer has not completed the housing units subject to the inclusionary requirement, the credits are released, and no credits are available for purchaserthen Continuing Life Communities shall be permitted to make a payment in an amount equal to the housing credit price in effect at the time the housing credit is purchased by Developer. 7. DURATION OF AGREEMENT This Agreement shall terminate and become null and void upon the final purchase or payment of the Affordable Housing Credits, or the retroactive repeal, termination, or modification of any applicable law or ordinance which act would render the Affordable Housing Obligation unnecessary or unenforceable. 8. SUCCESSORS This Agreement shall benefit and bind the Developer and any successive owners of Affordable Housing Lots. 9. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. 7 10. SEVERABULITY In the event any provision contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction, the remaining provisions of this Agreement shall nevertheless, be and remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the day and year first above written. DEVELOPER CITY Continuing Life Communities LLC., a California limited liability company City of Carlsbad, a municipal corporation By: By: Richard D. Aschenbrenner MARTIN ORENYAK Chief Executive Officer Community Development Director APPROVED AS TO FORM: RONALD R. BALL CITY ATTORNEY - EXHIBIT 3 The City of Casltabad Housing; & Redewelo~ment Department A-PORT TO THE HOUSXNG CO~XSSION Staff: Crai6 D. Ruiz lYKa.xwa@amat Ailalyml DATE: FEBRUARY 11,1999 SUBJECT: . SDP 98-Ol/CDP 98-04/CUP 98-Ol- LA COSTA GLEN. - APPLICATION TO PURCHASE 30.2 AFFORDABLE HOUSING CREDITS IN THiE VILLA LOMA HOUSING PROJECT I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 99-001, RECOMMENDING that the City Council APPROVE a request by Continuing Life Communities LLC., to purchase 30.2 Affordable Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the La Costa Glen project under the City’s Inclusionary Housing Ordinance. II. BACKGROUND La Costa Glen is a proposal to construct a continuing care retirement community for people 60 years of age and older. The project is proposed for a vacant 55 acre site located on the west side of El Camino Real between La Costa Avenue and Leucadia Boulevard (see Exhibit 4). The proposed project will consist of: a health center with approximately 72-79 skilled nursing care beds and 71 assisted living suites; three buildings with a total of 229 apartment units, 33 personal care suites, and 2 guest rooms; 95 twin/townhomes; 76 detached single-family homes; a recreation building; a maintenance building; and a recreational vehicle storage area. Continuing care retirement communities (CCRC) are regulated under the Health and Safety Code by the State of California Department of Social Services, and licensed and certified by the State Department of Health Services. A CCRC is considered an alternative for the long-term residential, social and health care needs of California’s elderly residents, and a way to provide a continuum of care, to minimize transfer trauma, and to allow for the provision of social and health care services in an appropriately licensed setting. Due to the uniqueness of the project, it was difficult to determine how to apply the requirements of the City’s Inclusionary Housing Ordinance. To assist in this decision, staff consulted with the State Housing and Community Development Division (HCD) about whether or not the project’s residences should be considered “housing units” or “group quarter/commercial living units”. HCD stated that the independent living units (229 apartment units, 95 twin/townhomes and 76 detached single-family homes) are considered “housing units” per the census definition and they can be reported towards meeting the City’s regional share housing needs. SDP 98-OI/CDP 98-04/CUP 98-01 - LA COSTA GLEN FEBRUARY 11, 1999 PAGE 3 Advancing Housing Goals and Strategies l The recovery of the City’s investment in the Villa Loma Project will provide for additional ‘I financial resources which are needed to further affordable housing development in the community. IV. FW.COMMENDATION The request to purchase 30.2 credits is the largest such request to be considered by the Housing Commission. Because of this large request, the standard Affordable Housing Agreement for credit purchase has been modified. The Draft Agreement (see Exhibit 3) states credits are reserved for a two year period, starting on the date of City Council approval. If the credits are not purchased for the La Costa Glen project within the 2 year reservation period, the credits will be released and then made available for purchase on a first come, first served basis. If the credits are in fact released, no future credits are available for purchase, and the Developer has not completed the 171 residential housing unit Project, the Agreement provides for the Developer to be permitted to make a payment in an amount equal to the last housing credit price in effect at the time the last housing credit is purchased by a developer. Based upon the uniqueness of the project, the analysis of the above criteria, and the modifications to the standard Affordable Housing Agreement, the Affordable Housing Policy (staff) Team believes that adequate justification has %been provided by the Developer to make the finding that the off-site satisfaction of the inclusionary housing requirement is in the public interest. Therefore, the staff team is recommending that the request to purchase credits be recommended for approval by the Housing Commission to the City Council. EXHIBITS 1. Housing Commission Resolution No. 99-001 2. Planning Commission Staff Report dated, January 6, 1999 3, Draft Affordable Housing Agreement 4. Vicinity Map 5. Professional Care Facility Definition SDP 98-Ol/CDP 98-04/CUP 98-01 - LA COSTA GLEN FEBRUARY 11, 1999 PAGE 2 Because a portion of the total project will be reported as part the City’s regional share housing totals, staff believes that the project has an obligation to provide some public benefit to assist the City in providing housing affordable to lower income residents. In determining the project’s inclusionary a housing obligation, staff and the developer agreed that the apartment units, which contain common dining and nursing services, and the health care center meet the Carlsbad Municipal Code definition of a professional care facility (see Exhibit 5). Therefore, in staffs opinion, the apartment units are not subject to the City’s Inclusionary Housing Ordinance. It was also agreed that the 95 twin/townhomeS and 76 detached single-family homes qualify as “residential housing units” and will require the developer to provide 30.2 housing units as required by the City’s Inclusionary Housing Ordinance. It is the applicant’s position that it would be very difficult to provide affordable housing units on-site. Therefore, the applicant is requesting to purchase Affordable Housing Credits (“credits”) in the Villa Loma project in lieu of on-site construction. The City’s Inclusionary Housing Ordinance permits off-site satisfaction of an inclusionary requirement through participation in a Combined Inclusionary Housing Project (“Combined Project”) if the City Council determines that it is in the public interest. Purchase of credits in the Villa Loma project constitutes participation in a Combined Project. There are 126 credits currently available for purchase. Policies Repardiw Off-Site Proiects and Purchase of Affordable Housiw Credits The City Council has adopted two policies which deal with off-site or Combined Projects and the sale of Affordable Housing Credits. Council Policy 57 was developed to establish the criteria to be utilized in order to make the necessary finding that off-site satisfaction of an inclusionary housing requirement, when proposed through a Combined Project, is in the public interest. Council Policy 58 was established to determine the price of credits and the mechanism to satisfy a developers obligation under the City’s Inclusionary Housing Ordinance. III. DISCUSSION The Council Policies require staff to evaluate the request for off-site satisfaction of the inclusionary housing obligation and the purchase of credits based upon three primary criteria. The criteria includes: 1) feasibility of on-site proposal; 2) relative advantages/disadvantages of an off-site proposal; and 3) the advancement of housing goals and strategies. The following is a summary of staffs analysis of the criteria for the project. Feasibilitv of On-site Prouosal l Continuing care facilities involve highly complex financing, regulatory and licensing requirements which are unlike those found in the development of typical multi-family residential housing. In addition, the project requires high entrance fees, which range from approximately $200,000 to $400,000, and high monthly fees starting at $1,200. The combination of these factors make the incorporation of affordable housing into the project highly infeasible. Relative Advantages/Disadvantapes of an Off-site ProDosal l Participation in the off-site project will allow the City to recover the costs associated with the development of excess affordable housing units within the Villa Loma Project. LA COSTA GLEN SDP 989OIICUP 98-OIICDP 98-04 EXHIBIT 4 Minutes of: Time of Meeting: Date of Meeting: Place of Meeting: Housing Commission 6:00 P.M. February 11,1999 City Council Chambers CALL TO ORDER: Vice Chairperson Walker called the Regular Meeting to order at 6:20 p.m. PLEDGE OF ALLEGIANCE: Commissioner Scarpelli led the pledge of allegiance. ROLL CALL: Present: Absent: Vice Chairperson Walker, Commissioners Escobedo, Latas, Noble, Rose, and Scarpelli Commissioner Calverley Staff Present: Debbie Fountain, Housing and Redevelopment Director Craig Ruiz, Management Analyst APPROVAL OF MINUTES: ACTION: Motion by Commissioner Latas, and duly seconded, to approve the Minutes of the Regular Meeting of December 10,1998, as submitted. VOTE: 6-O-O AYES: Escobedo, Latas, Noble, Rose, Scarpelli, Walker NOES: None ABSTAIN: None COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no comments from the audience. NEW BUSINESS: 1. SDP 98-Ol/CDP 98-04/CUP 98-Ol- LA COSTA GLEN - APPLICATION TO PURCHASE 30.2 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE LA COSTA GLEN PROJECT UNDER THE CITY’S INCLUSIONARY HOUSING ORDINANCE. Craig Ruiz reviewed the background of the request as stated in the Housing Commission Report. He explained the uniqueness of the project and stated there is no transfer of property with this project. Vice Chairperson Walker opened the item for discussion among the Commission members. Commissioner Scarpelli commented that this is not a small project and wondered if an off-site project was considered. Mr. Ruiz responded that the applicant did not pursue other alternatives because of the uniqueness of this project. Vice Chairperson Walker invited the applicant to speak. Richard (Rick) D. Aschenbrenner, CEO, Continuing Life Communities, 7707 El Camino Real, Carlsbad, CA 92009, addressed the Commission and stated that this project is not considered to be “normal” housing. He said that most cities do not apply affordable housing restrictions on this type of project. He added that the applicant is not in the Housing Commission Minutes February 11,1999 Page 2 housing business; rather, they create continuing care facilities. He also said the applicant hopes to build the best facility in the world Mr. Aschenbremier said that the project is built for the elderly and that the homes are similar to patio homes. He added that the applicant is required to provide full kitchens even though the kitchens are not used much. He said that the facility is required to provide food service. Another feature of the project is that if one spouse gets ill, that spouse will not be separated from the other spouse, which is the case in some communities. Mr. Aschenbrenner said that much of what the residents buy are services--not housing--which is difficult for Staff to measure. He added that there would be low-income residents in this facility. Commissioner Scarpelli asked if the applicant looked at alternatives, such as affordable housing subsidy, instead of using affordable housing credits. Ms. Fountain responded that Staff had a difficult time coming up with alternatives for this project. She added that Staff first considered 60 affordable housing credits before compromising on 30.2 credits, based on the number of villas and apartments. She said that this project does not qualify for affordable housing subsidy and it would be impractical to require the applicant to build off-site because they are not in the housing business, Commissioner Rose asked how this project compares to the Lutheran Home, Carlsbad by the Sea. Mr. Aschenbrenner responded that the projects are similar, but the Lutheran Home is more high-end. He said that this project is more complete in that it includes health care and other amenities and the entry fee is partially refundable. He added that the Lutheran Home did not have an affordable housing requirement. Commissioner Escobedo asked about the age requirements. Mr. Aschenbremrer responded that the minimum age is 60 and the practical age is 62. He added that the average age of the residents in the Fullerton facility is 84. Commissioner Scarpelli asked Staff why the Lutheran Home did not fall under the Inclusionary Housing requirements. Ms. Fountain responded that the Planning Department determined the remodeling or reconstruction of the Lutheran Home to be replacement units, and replacement units have no affordable housing requirements. Vice Chairperson Walker opened the public testimony and issued the invitation to speak. There being no other persons desiring to address the Commission on this topic, Vice Chairperson Walker declared the public testimony closed and opened the item for discussion among the Commission members. ACTION: VOTE: AYES: NOES: ABSTAIN: Motion by Commissioner Scarpelli, and duly seconded, to adopt Resolution No. 99-001, RECOMMENDING that the City Council APPROVE a request by Continuing Life Communities LLC, to purchase 30.2 Affordable Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the La Costa Glen project under the City’s Inclusionary Housing Ordinance. 6-O-O Escobedo, Latas, Noble, Rose, Scarpelli, Walker None None - EXHIBIT 5 EXHIBIT 5 Carlsbad Municipal Code Chapter 2 1.04.295 - Professional care facility. Professional care facility” means a facility in which food, shelter, and some form of professional service is provided such as nursing, medical, dietary, exercising or other medically recommended programs.