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HomeMy WebLinkAbout2000-02-15; City Council; 15617; Inclusionary Housing Ordinance& - I MTG. c+bcoo a 1 (DEPT. H/RED CITY OF CARLSBAD -AGENDA BILL TITLE: DEPT. HD. REPEAL AND RE-ENACTMENT OF CARLSBAD MUNICIPAL CODE CHAPTER 21.85 - INCLUSIONARY C’TY *I-I-Y 4EL HOUSING ORDINANCE CITY MGR. RECOMMENDED ACTION: 1. ADOPT City Council Resolution Na 2oo”-52 , APPROVING Local Coastal Program Amendment 99-06 (LCPA 99-06) and Zone Code Amendment 99-08 (ZCA 99-08), and the related Negative Declaration based upon the findings contained therein, repealing and re- enacting Chapter 21.85 (Inclusionary Housing Ordinance) of the Carlsbad Municipal Code; and 2. Approve LCPA 99-06 and ZCA 99-08 by INTRODUCING Ordinance No. Ns - 5 3 5 REPEALING AND RE-ENACTING Chapter 21.85 of the Carlsbad Municipal Code. , The City of Carlsbad’s lnclusionary Housing Ordinance was adopted in 1993, requiring 15% of all new residential development to be affordable to lower income households. While the Ordinance has been very successful to date in producing affordable housing units within the City of Carlsbad, revisions are being recommended to clarify and enhance its implementation. Over the past six years, some implementing difficulties have been attributed to specific language within the Ordinance which will be corrected as a result of the proposed revisions. In addition, there are other reasons for considering revisions to the Ordinance. First, a Housing Element Self-Certification Pilot Program was recently established for San Diego County. The City Council previously authorized staff to proceed with efforts to qualify for self-certification during the next Housing Element cycle (1999- 2004). Revisions to the lnclusionary Housing Ordinance are necessary to assist in the City’s effort to qualify for self-certification. Second, some policies for providing affordable housing, such as those related to Second Dwelling Units, have been the subject of much debate and require resolution. Second Dwelling Units and other similar issues can be resolved through revisions to the lnclusionary Housing Ordinance. REVISIONS TO ORDINANCE The proposed changes to the lnclusionary Housing Ordinance are divided into five general categories and are summarized as follows: 1. Clean-up Items - There are several changes which are primarily administrative in nature or have been proposed to delete repetitive sections of the original Ordinance. The purpose of these changes is to make the Ordinance easier to read and understand. 2. New Definitions - In pursuing Self Certification of the Housing Element, the City of Carlsbad will need to meet numerical objectives for providing housing opportunities for Extremely Low Income Households, as well as other lower income categories. Because the current lnclusionary Housing Ordinance does not contain a definition for extreme/y low income, a definition has been added which defines Extremely Low Income as a “household whose annual income is 30% of the Area Median Income (AMI) or below. In addition, the definition of low income rent has been revised within the Ordinance. The current definition for Low Income Rent is 1/12th of 30% of 80% of AMI. Because it has been staffs experience that the affordable rent level (at 80%) is often equal to, and sometimes higher than, market rents within the community, the definition of low income rent has been revised to be defined as 1112th of 30% of 70% of AMI. The Housing and Planning Page 2 of Agenda Bill No /s/6/ 7 Commissions recommend approval of this revised definition of low income rent to ensure that the lnclusionary Housing Ordinance is actually providing a unit which is more affordable to low income households. 3. Alternatives to Construction - Under the current housing element system, the City only receives credit towards meeting its regional share housing requirements for new construction of affordable units. Under Self-Certification, a variety of housing types will now receive credit towards meeting the fair share goals. Alternative examples include acquisition and rehabilitation of existing units, conversion of existing market rate units to affordable units, construction of special needs housing or programs (shelters, transitional housing, etc.), or contributions to a special needs housing project or program. The recommended Ordinance revisions will allow, at the discretion of the City Council, such alternatives to satisfy the lnclusionary Housing requirements where the proposed alternative supports specific Housing Element policies and goals, and assists the City in meeting its housing requirements. Alternatives would only be acceptable if new construction of units is determined to be infeasible or presents an unreasonable hardship. 4. Requirement to Construct Affordable Units - All projects which propose seven or more housing units are currently required to provide 15 percent of the total units constructed (rental or for-sale) at levels which are affordable to low income households. For residential projects with small inclusionary requirements (10 units or less), the affordable units have been typically provided through the construction of second dwelling units (under the existing ordinance requirements), or through the purchase of housing credits from the Villa Loma Affordable Apartment project (as permitted). Currently, only those projects located in the southeast or southwest quadrant are allowed to purchase housing credits from the Villa Loma Project. In order to provide some flexibility for developers of smaller projects, the draft Ordinance proposes to increase the threshold at which a developer is required to construct and restrict units for low income affordable housing purposes. The Ordinance has been revised to increase the threshold to fifty (50) units or fewer. Projects of 50 total units or fewer will be permitted the option of paying the In-Lieu Affordable Housing Fee (currently $4,515) for each market rate dwelling, or constructing the unit. Under the revised Ordinance, a builder of a 50 unit housing development would be allowed to pay the in-lieu fee for 50 units (a total of $225,750 under the current fee structure), or construct 7 affordable housing units. 5. Second Dwellinq Units - As stated above, for small residential developments, Second Dwelling Units have been used to meet a project’s entire inclusionary housing requirement. This has been especially evident in the northern quadrants of the City, where there are no Combined Affordable Housing Projects (i.e. Villa Loma) to which a fee can be paid to meet the inclusionary housing requirement. It has been the Housing Commission’s Policy that for larger projects, not more than 20% of the total inclusionary requirement can be met through the provision of Second Dwelling Units. Second Dwelling Units have caused much discussion and/or debate among both the Planning and Housing Commission members over the past few years. The current Ordinance states if a Second Dwelling Unit is rented, it shall be rented at a rate which is affordable to lower income households (1/12th of 30% of 80% of AMI). The primary issue of discussion has been whether or not second dwelling units actually meet an affordable housing need because they are not required to be rented and there are currently no income qualifications for the tenants Staff recommended that both the Housing and Planning Commissions provide a recommendation to the Council on the use of second dwelling units to satisfy the requirements of the lnclusionary Housing Ordinance. It was the Housing Commission’s recommendation that second dwelling units be continued as an alternative for satisfaction of the lnclusionary Housing requirement because there will remain some smaller developments which will have no other realistic option for meeting the requirement. Page 3 of Agenda Bill No /5:6/T However, the Housing Commission did also recommend that an additional restriction be placed on rental of the units which requires that the tenants meet the income qualifications as well. Under this scenario, second units could be counted towards meeting the City’s requirements under the Self-Certification Program. The Planning Commission recommended that Second Dwelling Units w be permitted to be used for inclusionary purposes under any circumstance. Because property owners can’t be required to rent second dwelling units and the City has limited ability to enforce the rental and income requirements, the Planning Commission felt that Second Dwelling Units do not meet the purpose and intent of the lnclusionary Housing Ordinance, and therefore the Commission could not support them as a permitted alternative. The Planning Commission’s recommendation to eliminate second dwelling units as an option for satisfying the affordable housing requirements has been incorporated in the revised lnclusionary Housing Ordinance for Council approval. Additional information on key changes to the lnclusionary Housing Ordinance is provided within the attached Housing and Planning Commission staff reports. HOUSING AND PLANNING COMMISSION RECOMMENDATIONS The revised lnclusionary Housing Ordinance was presented to the Housing Commission on August 12, 1999 for review and action. The Ordinance was subsequently submitted to the Planning Commission on January 19, 2000. With the exception of the discussion and action on Second Dwelling Units as stated above and some other minor language changes, both Commissions were nearly unanimous in their support of the revised lnclusionary Housing Ordinance (Housing Commission 3-0, Planning Commission 6-1, Seagal - No), as initially recommended by staff. ENVIRONMENTAL REVIEW The Planning Department conducted an environmental review of the above described project pursuant to the Guidelines for Implementation of the California Environmental Quality Act and the Environmental Protection Ordinance of the City of Carlsbad. As a result of said review, a Negative Declaration was issued for the subject project by the Planning Department on October 22, 1999 and made available for public review. No comments were received on the environmental document. Planning Commission Resolution No. 4708 recommends approval of the Negative Declaration for the project by the City Council. FISCAL IMPACT The City will not incur any additional costs by the adoption of this revised lnclusionary Housing Ordinance. However, staff does anticipate that the policies related to housing element self certification will ultimately result in a need for the City to provide greater financial subsidies to facilitate the construction of housing units which are affordable to Very Low and Extremely Low Income households. The subsidies required to ensure that a housing unit is affordable to extremely low income households is substantial. To meet the identified need to provide 170 units of affordable housing for extremely low income households, it is estimated that the City will be required to provide approximately $15,000 to $20,000 (or more) per unit to ensure the feasibility of an affordable housing unit for an extremely low income household. This would amount to a total subsidy requirement of approximately $2.5 to $3.4 million from the City of Carlsbad. Additional City funds will most likely be required as well to meet the subsidy requirements for affordable housing for very low income households. To date, the City has expended, and/or committed to expend, nearly $14.2 million in direct financial assistance from the Housing Trust and other funds to subsidize affordable housing for low, very low and extremely low income households. These financial assistance needs will continue under the revised lnclusionary Housing Ordinance, and may be much more substantial due to the self-certification requirements to 3 Page 4 of Agenda Bill No produce affordable housing for very low and extremely low income households, as already noted. EXHIBITS 1. City Council Resolution NoVOO- 3 a approving a Local Coastal Program Amendment Zone Code Amendment for revisions to Chapter 21.85 of the Carlsbad Municipal Code. and 2. Ordinance No. /% -535, repealing and re-enacting Chapter 21.85 of the Carlsbad Municipal Code. 3. 4. Planning Commission Resolution No. 4708, recommending approval of the Negative Declaration Planning Commission Resolution Nos. 4709 and 4710, recommending approval of ZCA 99-08 and LCPA 99-06. 5. Legislative Draft of Amended Ordinance, Chapter 21.85. 6. Planning Commission Staff Report dated, January 19, 2000. 7. Housing Commission Staff Report dated, August 12, 1999, and Resolution. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CITYCOUNC'ILRElSOLUTIONNO. 2000-52 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN AMENDMENT TO THE CARLSBAD LOCAL COASTAL PROGRAM, ZONE CODE AMENDMENT AND A NEGATIVE DECLARATION FOR THE REPEAL AND REENACTMENT OF ZONING ORDINANCE CHAPTER 21.85 REGARDING AFFORDABLE HOUSING UNITS FOR LOWER-INCOME HOUSEHOLDS AND IN-LIEU FEES CASE NAME: INCLUSIONARY HOUSING ORDINANCE AIVENDMENT CASE NO.: ZCA 99-OWLCPA 99-06 WHEREAS, the City is repealing and reenacting Chapter 21.85 of Title 21 (Zoning Ordinance) of the Carlsbad Municipal Code regarding affordable housing units for lower-income households; and WHEREAS, the Zoning Ordinance is the implementing ordinance for the City’s Local Coastal Program; and WHEREAS, California State law requires that the Local Coastal Program and Zoning Ordinance be in conformance and therefore amendments to the implementing ordinance also require an amendment to the Local Coastal Program to ensure consistency between the two documents; and WHEREAS, a verified application for an amendment to the Local Coastal Program has been filed with the Planning Department; and WHEREAS, said verified application constitutes a request for a Local Coastal Program Amendment as shown on Exhibit(s) X dated January 19,2000, as attached to Planning Commission Resolution No. 4709 and incorporated herein by reference as provided in Public Resources Code Section 30574 and Article 15 of Subchapter 8, Chapter 2, Division 5.5 of Title 14 of the California Code of Regulations of the California Coastal Commission Administrative Regulations; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the Housing Commission did on the 12& day of August, 1999, hold a public meeting to consider a recommendation to the Planning Commission and City Council to amend Title 2 1 of the Carlsbad Municipal Code by the repeal.and reenactment of Chapter 2 1.85 regarding affordable housing units for lower-income households and in-lieu fees; and WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all .persons desiring to be heard, said Commission considered all factors relating to the repeal and reenactment of Chapter 21.85, and voted to recommend approval of said modifications; and WHEREAS, the Planning Commission did on the lgm day of January 2000, hold a duly noticed public hearing as prescribed by law to consider said request; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, said Commission considered all factors relating to the Local Coastal Program Amendment; and WHEREAS, State Coastal Guidelines requires a six week public review period for any amendment to the Local Coastal Program. WHEREAS, a Negative Declaration was prepared in conjunction with said amendment. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Carlsbad, as follows: 1. That the foregoing recitations are true and correct. 2. That Zoning Code Amendment 99-08 and Local Coastal Plan Amendment 99-06 are APPROVED and that the findings and conditions of the Planning Commission contained in Resolutions No. 4708,4709 and 4710, on file in the City Clerk’s Office and incorporated herein by reference, are the findings and conditions of the City Council. CC RJSSO NO. 2ooo-52 -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3. That the City Council of the. City of Carlsbad has reviewed, and analyzed and considered the Negative Declaration (ZCA 99-08 LCPA 99-06), the environmental impacts therein identified for this project and any comments thereon. The City Council finds there is no substantial evidence that the project will have a significant effect on the environment and hereby approves the Negative Declaration. The City Council finds that the Negative Declaration reflects the independent judgment of the City Council of the City of Carlsbad. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, held on the 15th day of February ,2000, by the following vote, to wit: AYES: Council Members Lewis, Finnila, Nygaard, and Kulchin NOES: Council Member Hall ABSENT: None ABSTAIN: None AT-LEST: bh/mx%c OD, CITY CLERK 1 (=‘W CCRESONO. 2000-52 -3- 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 2 ORDINANCE NO. NS- 535 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 21 OF THE CARLSBAD MUNICIPAL CODE AND THE LOCAL COASTAL PROGRAM BY THE REPEAL AND REENACTMENT OF CHAPTER 21.85 REGARDING AFFORDABLE HOUSING UNITS FOR LOWER-INCOME HOUSEHOLDS AND IN-LIEU FEES. CASE NAME: INCLUSIONARY HOUSING ORDINANCE AMENDMENT CASE NO: ZCA 99-081LCPA 99-06 WHEREAS, Government Code Section 65584(a) requires localities to address the Regional Share housing needs for persons of all income levels in their General Plan Housing Elements; and WHEREAS, based upon its Housing Element, the City of Carlsbad finds that Carlsbad is experiencing a lack of housing affordable to lower-income households; and WHEREAS, new residential development which does not include nor contribute toward housing for lower income households will only serve to aggravate the current affordable housing shortage and create additional need for affordable lower income housing by reducing the supply of residential land available for affordable housing development and increasing the population and the demand for community services businesses staffed by lower wage employees; and WHEREAS, in 1993, the mandatory lnclusionary Housing Program was implemented within the City’s Housing Element as a viable program available to the City to assist it in achieving its Housing Element objectives for lower-income units; and -l- 8 WHEREAS, the City’s Housing Element and this chapter identify programs to 2 provide technical, financial, and standards flexibility, offsets and incentives, to 3 facilitate inclusionary housing development; 4 5 WHEREAS, on August 12, 1999, the Housing Commission held a public 6 meeting to consider a recommendation to the Planning Commission and City Council 7 to amend Title 21 of the Carlsbad Municipal Code by the repeal and reenactment of 8 Chapter 21.85 regarding affordable housing units for lower-income households and 9 in-lieu fees; and 10 11 WHEREAS, at said public meeting, upon hearing and considering all testimony, 12 if any, of all persons desiring to be heard, said Commission considered all factors 13 relating to the repeal and reenactment of Chapter 21.85, and voted to recommend 14 approval of said modifications; and 15 16 WHEREAS, on January 19, 2000, the Planning Commission held a public meeting to consider a recommendation to the City Council to amend Title 21 of the 17 18 Carlsbad Municipal Code by the repeal and reenactment of Chapter 21.85 regarding 19 affordable housing units for lower-income households and in-lieu fees; and 20 WHEREAS, at said public meeting, upon hearing and considering all testimony, 21 if any, of all persons desiring to be heard, said Commission considered all factors 22 relating to the repeal and reenactment of Chapter 21.85. 23 24 The City Council of the City of Carlsbad, California does ordain as follows: 25 SECTION 1: That Title 21 of the Carlsbad Municipal Code is amended by the 26 repeal and reenactment of Chapter 21.85 to read as follows: 27 a.. 28 -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . . . “Chapter 21.85 INCLUSIONARY HOUSING Sections: 21.85.010 21.85.020 21.85.030 21.85.035 21.85.040 21.85.050 21.85.060 21.85.070 21.85.080 21.85.090 21.85.100 21.85.110 21.85.120 21.85.130 21.85.140 21.85.145 Agreement Processing Fee. 21.85.150 Agreement/Amendments. 21.85.160 Pre-existing Approvals. 21.85.170 Enforcement. 21.85.180 Savings Clause. 21.85.190 Separability of Provisions. Purpose and Intent. Definitions. lnclusionary Housing Requirement. New Master Plans and Specific Plans Affordable Housing Standards. Calculating the Required Number of lnclusionary Units. Incentive Credit Adjustment to the lnclusionary Requirement. Alternatives to Construction of lnclusionary Units. Combined lnclusionary Housing Projects. Creation of lnclusionary Units Not Required . Offsets to the Cost of Affordable Housing Development. In-lieu Fees. Collection of Fees. Preliminary Project Application and Review Process. Affordable Housing Agreement ,as a Condition c Development. 21.85010. Purpose and Intent. The purpose and intent of this chapter is as follows: A. It is an objective of the City, as established by the Housing Elemen of the City’s General Plan, to ensure that all residential development, including all Maste Planned and Specific Planned communities and all residential subdivisions provide i range of housing opportunities for all identifiable economic segments of the population including households of lower and moderate income. It is also the policy of the City to: 1. Require that a minimum of fifteen (15%) percent of a’ approved residential development be restricted to and affordable to lower-incomt households; subject to adjustment based on the granting of certain incentives; 2. Require that for those developments which provide ten o more units affordable to lower-income households, at least ten (10%) percent of tht lower-income units shall have three or more bedrooms; -3- 1 2 3 4 5 6 7 8 9 10 '. 4. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3. Under certain conditions, allow alternatives to ons construction as a means of providing affordable units; and 4. In specific cases, allow inclusionary requirements to satisfied through the payment of an in-lieu fee as an alternative to requiring inclusion units to be constructed. B. It is the purpose of this chapter to ensure the implementation of th City objective and policy stated in subsection A. C. Nothing in this chapter is intended to create a mandatory duty on the part of th City or its employees under the Government Tort Claims Act. and no cause of actio against the City or its employees is created by this chapter that would not aris independently of the provisions of this chapter. 21.85020. Definitions. Whenever the following terms are used in this Chapter, they shall have th meaning established by this section: A. “Affordable housing” means housing for which the allowable housin expenses paid by a qualifying household shall not exceed a specified fraction of th gross monthly income, adjusted for household size, for the following classes of housing. 1. Extremely low-income, rental or for-sale units: thirty (30% percent of the gross monthly income, adjusted for household size, at thirty (30%) percen of the County median income; 2. Very low-income, rental and for-sale units: thirty (30% percent of the gross monthly income, adjusted for household size, at fifty (50%) percent o the County median income; 3. Low-income, for-sale units: thirty (30%) percent of the gro monthly income, adjusted for household size, at eighty (80%) percent of the Cou median income; and 4. Low-income, rental units: thirty (30%) percent of the gro monthly income, adjusted for household size, at seventy (70%) percent of the Cou median income. B. “Affordable housing agreement” means a legally binding agreemen between a Developer and the City to ensure that the inclusionary requirements of t chapter are satisfied. The agreement establishes, among other things, the number required inclusionary units, the unit sizes, location, affordability tenure, terms a conditions of affordability and unit production schedule. C. “Allowable housing expense” means the total monthly or annua recurring expenses required of a household to obtain shelter. For a for-sale unit allowable housing expenses include loan principal and interest at the time of ini purchase by the homebuyer, allowances for property and mortgage insurance, prope taxes, homeowners association dues and a reasonable allowance for utilities as defin by the Federal Regulations for the Tenant Based Rental Assistance Program. Fo rental unit, allowable housing expenses include rent and a utility allowance as establish and adopted by the City of Carlsbad Housing Authority, as well as all monthly payme made by the tenant to the lessor in connection with use and occupancy of a housing u and land and facilities associated therewith, including any separately charged fees, util charges, or service charges assessed by the lessor and payable by the tenant. II .4- II 1 2 3 4 5 6 7 8 9 10 k,, . 11 12 13 .14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 D. “Base residential units” means the total units approved by the fin decision making authority. Total residential units are composed of both market rate uni and inclusionary units. E. “Affordable housing policy team” shall consist of the Communi Development Director, Planning Director, Housing and Redevelopment Director Administrative Services Director/Finance Director, and a representative of the Ci Attorney’s office. F. “Combined inclusionary housing project” means separate residenti development sites which are linked by a contractual relationship such that some or all o the inclusionary units which are associated with one development site are produced a operated at a separate development site or sites. G. “Conversion” means the change of status of a dwelling unit fro purchased unit to a rental unit or vice versa. H. “Density bonus (new residential construction)” means a mini density increase of at least twenty-five (25%) percent over either the Gro Management Control Point of the applicable General Plan designation, as defined Section 21.90.045 of this Title, or the otherwise maximum allowable residential density specified by the applicable Master Plan or Specific Plan, at the time of application. I. “Extremely low-income household” means those households who gross income is equal to or less than thirty-five (35%) percent of the median income San Diego County as determined by the U.S. Department of Housing and Urb Development. J. “Financial assistance” means assistance to include, but not limited to, the subsidization of fees, infrastructure, land costs, or construction costs, t use of redevelopment set-aside funds, Community Development Block Grant (CDB funds, or the provision of other direct financial aid in the form of cash transfer payments o other monetary compensation, by the City of Carlsbad. K. “Growth Management Control Point” shall have the same meanin as provided in Chapter 21.90, Section 21.90.045 of this Title. L. “Incentives” means a reduction in the inclusionary housin requirement granted in return for the provision of certain desired types of affordabl housing or related amenities as determined by the City Council. M. “lnclusionary housing project” means a new residential developmen or conversion of existing residential buildings which has at least fifteen (15%) percent o the total units reserved and made affordable to lower-income households as required b this Chapter. N. “lnclusionary unit” means a dwelling unit that will be offered for ren or sale exclusively to and which shall be affordable to lower-income households, required by this chapter. 0. “Income” means any monetary benefits that qualify as income accordance with the criteria and procedures used by the City of Carlsbad Housing a Redevelopment Department for the acceptance of applications and recertifications fort Tenant Based Rental Assistance Program, or its successor. P. “Low-income household” means those households whose g income is more than fifty (50%) percent but. does not exceed eighty (80%) percent of t -5- 6 7 8 9 10 I-.. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 median income for San Diego County as determined annually by the US. Department of Housing and Urban Development. Q. “Lower-income household” means low-income, very low-income and extremely low-income households, whose gross income does not exceed eighty (80%; percent of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. R. “Market-rate unit” means a dwelling unit where the rental rate or sales price is not restricted either by this chapter or by requirements imposed through other local, state, or federal affordable housing programs. S. “Offsets” means concessions or assistance to include, but not be limited to, direct financial assistance, density increases, standards modifications or. any other financial, land use, or regulatory concession which would result in an identifiable cost reduction enabling the provision of affordable housing. T. “Residential Development” means any new residential constructior of rental or for-sale units; or development revisions, including those with and without a Master Plan or Specific Plan, planned unit developments, Site Development Plans, mobilehome developments and conversions of apartments to condominiums, as well as dwelling units for which the cost of shelter is included in a recurring payment for expenses, whether or not an initial lump sum fee is also required. U. ‘Target income level” means the income standards for extremely low, very low and low-income levels within San Diego County as determined annually by the U.S. Department of Housing and Urban Development, and adjusted for family size. V. “Very low-income household” means a household earning a gross income equal to fifty (50%) percent or less of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 21.85.030. lnclusionarv Housina Reauirement. The inclusionary housing requirements of this chapter shall apply as follows: A. This chapter shall apply to all residential market-rate dwelling units resulting from new construction of rental and ‘for-sale” projects, as well as the conversior of apartments to condominiums: B. For any residential development or development revision of more than fifty (50) units, not less than fifteen (15%) percent of the total units approved shall be constructed and restricted both as to occupancy and affordability to lower-income households. C. For those developments which are required to provide ten or more units affordable to lower income households, at least ten (loo/,) percent of the lower income units shall have three or more bedrooms. D. This chapter shall not apply to the following: 1. Existing residences which are altered, improved, restored, repaired, expanded or extended, provided that the number of units is not increased, except that this chapter shall pertain to the subdivision of land for the conversion of apartments to condominiums; 2. Conversion of a mobilehome park pursuant to Sectior 21.37.120 of the Code; 13 -6- 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 i' ir 28 3. The construction of a new residential structure which re a residential structure that was destroyed or demolished within two years prior application for a building permit -for the new residential structure, provided that the n of residential units is not increased from the number of residential units of the previo destroyed or demolished residential structure; 4. Any residential unit which is accessory as defined in Sectio 21.04.020 of this Code; or 5. Second Dwelling Units not constructed to fulfil1 inclusiona housing requirements and developed in accordance with Section 21 .I 0.015 of this Cod 6. Any project or portion of a project which is a commercial livi unit as defined in Section 21.04.093 of this code; and 7. Those residential units which have obtained afforda housing approvals prior to the effective date of this ordinance, as set forth in Sect1 21.85.160 of this chapter. 21.85035 New Master Plans or SDecific Plans New Master Plans and Specific Plans shall submit an inclusionary housing plan a follows: A. All Master Plans and Specific Plans approved on or after t effective date of this Ordinance are required by this Chapter to provide an inclusion housing plan within the Master Plan or Specific Plan document. This inclusionary housr plan will include appropriate text, maps, tables, or figures to establish the basic framew for implementing the requirements of this chapter. It shall establish, as a minimum, not be limited to, the following: 1. The number of market rate units in the Master Plan or Specifi Plan; 2. The number of required inclusionary units for lower-incom households over the entire Master Plan or Specific Plan; 3. The designated sites for the location of the inclusionary units including but not limited to any sites for locating offsite inclusionary housing projects o combined inclusionary housing projects; 4. A general provision stipulating that an Affordable Housi Agreement shall be made a condition of all future discretionary permits for developm within the Master or Specific Plan area such as tentative maps, parcel maps, planned uni developments and Site Development Plans. The provision shall establish that all relevan terms and conditions of any Affordable housing Agreement shall be filed and recorded a restriction on the project as a whole and those individual lots, units or projects which designated as inclusionary units. The Affordable Housing Agreement shall be consis with Section 21.85.140 of this chapter. 6. The location and phasing of inclusionary dwelling units may b modified as a minor amendment to the Master Plan pursuant to Section 21.38.120 of thi Title if the City Council authorizes such modifications when approving the Master Plan. C. All existing Master Plans or Specific Plans proposed for m amendment, pursuant to Section 21.38.120 of this Code, shall incorporate into amended Master Plan or Specific Plan document an inclusionary housing plan, consisten with this Section of this chapter. -7- 1 2 3 4 5 6 7 a 9 10 /,c 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 ,.'T f. . . .h' : 28 21.85040. Affordable Housina Standards. The affordable housing standards are as follows: A. All residential developments are subject to and must satisfy the inclusionary housing requirements of this chapter, notwithstanding a Developer’s reques to process a residential development under other program requirements, laws o regulations, including but not limited to Chapter 21.86 (Residential Density Bonus) of thi! Code. B. Whenever reasonably possible, inclusionary units should be built ot the residential development project site. C. The required inclusionary units shall be constructed concurrently witl market-rate units unless both the final decision-making authority of the City ant Developer agree within the Affordable Housing Agreement to an alternative schedule fo development. D. lnclusionary rental units shall remain restricted and affordable to tht designated income group for 55 years. In addition to the income of a targeted group limitations on assets may also be used as a factor in determining eligibility for rental or fo sale units. Notwithstanding anything to the contrary in this Chapter, no inclusionary uni shall be rented for an amount which exceeds ninety (90%) percent of the actual ren charged for a comparable market unit in the same development, if any. E. After the initial sale of the inclusionary for-sale units at a prict affordable to the target income level group, inclusionary for-sale units shall remail affordable to subsequent income eligible buyers pursuant to a resale restriction with i term of thirty (30) years or for-sale units may be sold at a market price to other that targeted households provided that the sale shall result in the recapture by the City or it designee of a financial interest in the units equal to the amount of subsidy necessary tc make the unit affordable to the designated income group and a proportionate share a any appreciation. Funds recaptured by the City shall be used in assisting other eligibk households with home purchases at affordable prices. To the extent possible, project using for-sale units to satisfy inclusionary requirements shall be designed to bc compatible with conventional mortgage financing programs including secondary marke requirements. F. lnclusionary units should be located on sites that are in proximity tc or will provide access to employment opportunities, urban services, or major roads o other transportation and commuter rail facilities and that are compatible with adjacen land uses. G. The design of the inclusionary units shall be reasonably consistent o compatible with the design of the total project development in terms of appearance materials and finished quality. H. lnclusionary projects shall provide a mix of number of bedrooms ir the affordable dwelling units in response to affordable housing demand priorities of tht City. I. No building permit shall be issued, nor any development approva granted for a development which does not meet the requirements of this chapter. Nc inclusionary unit shall be rented or sold except in accordance with this chapter. -a- 1 2 3 8 9 10 -; 11 12 13 14 15 16 17 18 I 19 20 21 22 23 24 25 26 27 ‘*-. ,P. 28 21.85.050. Calculatina the Rewired Number of Inclusionarv Units. Subject to adjustments for incentives, the required number of lower-into inclusionary units shall be fifteen (15%) percent of the Total residential units, approved the final decision-making authority. Fractional unit requirements of 5 or greater will rounded up to a whole unit, or a fractional proportion of the in-lieu fee may be paid. Example: Total residential units = 15% lnclusionary units plus 85% Market rate units. If t final decision making authority approves 100 residential units, then the lnclusio requirement equals 15% of the “Total” or 15 units. The allowable market rate units w be 85% of the “Total” or 85 units. 21.85060. Incentive Credit Adiustment to the lnclusionarv Requirement. Certain types of affordable housing are relatively more desirable in satisfying t City’s state-mandated affordable housing requirement as well as the City’s Housi Element goals, objectives and policies, and these may change over time. As an incentive to assist the City in providing this housing, Developers may rece additional (more than one unit) credit for each of such units provided, thereby reduce the total inclusionary housing requirement to less than fifteen (15%) percent of residential units approved. A Schedule of lnclusionary Housing Incentive C specifying how credit may be earned shall be adopted by the City Council and ma available to Developers subject to this chapter. 21.85070. Alternatives to Construction of lnclusionarv Units. Notwithstanding any contrary provisions of this chapter, at the sole discretion the City Council, the City may determine that an alternative to the construction of n inclusionary units is acceptable. A. The City Council may approve alternatives to the construction of inclusionary units where the proposed alternative supports specific Housing Ele policies and goals and assists the City in meeting its state housing requirements. determination shall be based on findings that new construction would be infeasible present unreasonable hardship in light of such factors as project size, site constrain market competition, price and product type disparity, Developer capability, and finan subsidies available. Alternatives may include, but not be limited to, acquisition a rehabilitation of affordable units, conversion of existing market units to affordable uni and construction of special needs housing projects or programs (shelters, transitiona housing, etc.), but not construction of second dwelling units. B. Contribution to a special needs housing project or program may al be an acceptable alternative based upon such findings. The requisite contribution s be calculated in the same manner as an in-lieu fee per Section 21.85.110. 21.85.080. Combined Inclusionan, Housina Proiects. An affordable housing requirement may be satisfied with offsite construction follows: A. When it can be demonstrated by a Developer that the goals of chapter and the City’s Housing Element would be better served by allowing some or a the inclusionary units associated with one residential project site to be produced a 5 6 7 8 9 10 ya .11 12 13 14 15 16 17 operated at an alternative site or sites, the resulting linked inclusionary project site(s) i combined inclusionary housing project. B. It is at the sole discretion of the City Council to authorize t residential site(s) which form a combined inclusionary housing project. Such decisi shall be based on findings that the Combined Project represents a more effective a feasible means of implementing this chapter and the goals of the City’s Housing Eleme Factors to be weighed in this determination include: the feasibility of the onsite opti considering project size, site constraints, competition from other projects, difficulty integrating due to significant price and product type disparity, and lack of capacity of t onsite development entity to deliver affordable housing. Also to be considered whether the offsite option .offers greater feasibility and cost effectiveness, particul regarding potential local public assistance and the City’s affordable housing assistance policy, location advantages such as proximity to jobs, schools, trans and services, diminished impact on other existing developments, capacity development entity to deliver the project, and satisfaction of multiple De obligations that would be difficult to satisfy with multiple projects. C. All agreements between parties to form a combined inclusion housing project shall be made a part of the Affordable Housing Agreement required the site(s), which Affordable Housing Agreement(s) shall be approved by Council. D. Location of the combined inclusionary housing project is limited sites within the same City quadrant in which the market-rate units are located, or sit which are contiguous to the quadrant in which the market-rate units are proposed. 21.85.090. Creation of lnclusionarv Units Not Required. lnclusionary units created which exceed the final requirement for a project m subject to City Council approval in the Affordable Housing Agreement, be utilized by t Developer to satisfy other inclusionary requirements for which it is obligated or market t units to other Developers as a Combined Project subject to the requirements of Secti 18 II 21.85.080. 19 21.85.100. Offsets to the Cost of Affordable Housina DeveloDment. 20 21 22 23 24 25 .26 The City shall consider making offsets available to Developers when necessary to enable residential projects to provide a preferable product type or affordability in excess of the requirements of this chapter. Offsets will be offered by the City to the extent that resources and programs for this purpose are available to the City and approved for such use by the City Council, and to the extent that the residential development, with the use of offsets, assists in achieving the City’s housing goals. To the degree that the City makes available programs to provide offsets, Developers may make application for such programs. Evaluation of requests for offsets shall be based on the effectiveness of the offsets in achieving a preferable product type and/or affordability objectives as set forth within the Housing Element; the capability of the development team; the reasonableness of development costs and justification of subsidy needs; and the extent to which other resources are used to leverage the requested offsets. Nothing in this chapter establishes, directly or through implication, a right to receive any offsets from the City or any other party or agency to enable the Developer to meet the obligations established by this chapter. Projects are entitled to density bonuses and/or other incentives in accordance 27 ‘* 28 II lo- 1 2 3 4 5 6 7 8 9 10 Fh L .* 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 with provisions of state law, pursuant to the provisions of Chapter 21.86. of this code. Any offsets approved by the City Council and the housing affordability to be achieved by use of those offsets shall be set out within the Affordable Housing Agreement pursuant tc Section 21.85.140 or, at the City’s discretion in a subsequent document. Furthermore, Developers are encouraged to utilize local, state or federal assistance, when available, to meet the affordability standards set forth in Sections 21.85.030 and 21.85.040. 21.85.110. In-lieu Fees. Payment of a fee in-lieu of construction of affordable units may be appropriate i the following circumstances: A. For any residential development or development revision of fifty un or less, the inclusionary requirements may be satisfied through the payment to the City an in-lieu fee. B. The in-lieu fee to be paid for each market-rate dwelling unit shall fifteen (15%) percent of the subsidy needed to make affordable to a lower-into household one newly-constructed, typical attached-housing unit. This subsidy shall based upon the City Council’s determination of the average subsidy that would required to make affordable typical, new two-bedroom/one bath and three-bedroom bath for-sale units and rental units, each with an assumed affordability tenure of at 55 years. C. The dollar amount and method of payment of the in-lieu fees shall b fixed by a schedule adopted, from time to time, by resolution of the City Council. Said fe shall be assessed against the market-rate lots/units of a development. D. All in-lieu fees collected hereunder shall be deposited in a Housin Trust Fund. Said fund shall be administered by the City and shall be used only for th purpose of providing funding assistance for the provision of affordable housing an reasonable costs of administration consistent with the policies and programs contained i the Housing Element of the General Plan. E. At the discretion of the City Council, where a Developer is authoriz to pay a fee in-lieu of development, an irrevocable dedication of land or other n monetary contribution of a value not less than the sum of the otherwise required in-Ii fee may be accepted as an alternative to paying the in-lieu fee if it is determined that t non-monetary contribution will be effectual in furthering the goals and policies of t Housing Element and this Chapter. The valuation of any land offered in-lieu shall determined by an appraisal made by an agent mutually agreed upon by the City and t Developer. Costs associated with the appraisal shall be borne by the Developer. F. Where a Developer is authorized to pay a fee in-lieu of develo of affordable housing units, any approvals shall be conditioned upon a requirement the in-lieu fee in an amount established by resolution of the City Council in effect at t time of payment. G. As an alternative to paying an in-lieu fee(s), inclusionary housi requirements may be satisfied either through a combined inclusionary housing proje pursuant- to Section 21.85.080. of this chapter or new construction.of inclusionary u subject to approval of the final decision-making authority. -ll- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 is. 28 21.85.120. Collection of fees. All fees collected under this chapter shall be deposited into a Housing Trust and shall be expended only for the affordable housing needs of lower-in households, and reasonable costs of administration consistent with the purpose of th chapter. 21.85.130. Preliminirv Proiect ADolication and Review Process. The preliminary project application/review process shall be as follows: A. A Developer of a Residential Development not subject to a Maste Plan or Specific Plan, proposing an inclusionary housing project shall have an approve Site Development Plan prior to execution of an affordable housing agreement for th project. The Developer may submit a preliminary application to the Housing an Redevelopment Director prior to the submittal of any formal applications for such housin development. The preliminary application shall include the following information applicable: 1. A brief description of the proposal including the number o inclusionary units proposed; 2. The Zoning, General Plan designations and assessors part number(s) of the project site; 3. A site plan, drawn to scale, which includes: building footprints driveway and parking layout, building elevations, existing contours and proposed grading and 4. A letter identifying what specific offsets and/or adjustme are being requested of the City. Justification for each request should also be included B. Within thirty days of receipt of the preliminary application by t Planning Director for projects not requesting offsets or incentive adjustments, or nin days for projects requesting offsets or incentive adjustments the department shall prove to an applicant, a letter which identifies project issues of concern, the offsets a incentive adjustments that the Community Development Director can support wh making a recommendation to the final decision-making authority, and the procedures compliance with this chapter. The applicant shall also be provided with a copy of t chapter and related policies, the pertinent sections of the California Codes to whi reference is made in this chapter and all required application forms. 21.85140. Affordable Housina Aareement as a Condition of Develooment. This chapter requires the following: A. Developers subject to this chapter shall demonstrate compliance with this chapter by executing an Affordable Housing Agreement prepared by the City Housing and Redeveloper Director and submitted to the Developer for execution. Agreements which conform to the requirements of this section and which do not involve requests for offsets and/or incentives, other than those permitted by right, if any, shall be reviewed by the Affordable Housing Policy Team and approved by the Community Development Director or his designee. Agreements which involve. requests for offsets and/or incentives, other than those permitted by right, shall require the recommendation of the Housing Commission and action by the-city Council as the final decision-maker. Following the approval and execution by all parties, the Affordable Housing Agreement II 12- 19 1 2 _ 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1 19 20 21 22 23 24 25 26 27 / - 28 with approved Site Development Plan shall be recorded against the entire developme including market-rate lots/units and the relevant terms and conditions therefrom filed a subsequently recorded as a separate deed restriction or regulatory agreement on t affordable project individual lots or units of property which are designated for the lot of affordable units. The approval and execution of the Affordable Housing Agree shall take place prior to final map approval and shall be recorded upon final m recordation or, where a map is not being processed, prior to the issuance of buildi permits for such lots/units. The Affordable Housing Agreement may require that specific project and/or unit restrictions be recorded at a future time. The Affor Housing Agreement shall bind all future owners and successors in interest for the term years specified therein. B. An Affordable Housing Agreement, for which the inclusiona housing requirement will be satisfied through new construction of inclusionary units, eith onsite or offsite, shall establish, but not be limited to, the following: 1. The number of inclusionary dwelling units proposed, wit specific calculations detailing the application of any incentive adjustment credit; 2. The unit square footage, and number of bedrooms; 3. The proposed location of the inclusionary units; 4. Amenities and services provided, such as daycare, afte school programs, transportation, job training/employment services and recreation; 5. Level and tenure of affordability for inclusionary units; 6. Schedule for production of dwelling units; 7. Approved Offsets provided by the City; 8. Where applicable, requirements for other documents to b approved by the City, such as marketing, leasing and management plans; frnancia assistance/loan documents; resale agreements; and monitoring and compliance plans; 9. Where applicable, identification of the affordable housi Developer and agreements specifying their role and relationship to the project; and C. An Affordable Housing Agreement, for which the inclusion housing requirement will be satisfied through payment to the City of any in-Ii contributions other than fee monies, such as land dedication, shall include the method o determination, schedule and value of total in-lieu contributions. D. An Affordable Housing Agreement will not be required for proje which will be satisfying their inclusionary housing requirement through payment to th City of an in-lieu fee. 21.85.145. Aareement Processina Fee. The City Council may establish by resolution, fees to be paid by the Developer a the time of preliminary project application to defray the City’s cost of preparing and/o reviewing all inclusionary housing agreements. 21.85.150. Aareement Amendments. -*Any ,amendment to an Affordable Housing Agreement. shall .be processed in th same manner as an original application for approval, except as authorized in Sectio 21.85.035(B). Amendments to Affordable Housing agreements initially approved prior t -13- 1 2 3 4 5 6 The City or its designee shall have a one-time first right of refusal to purchase any project containing affordable units offered for sale at the end of the minimum tenure of affordability for rental projects. The first right of refusal to purchase the rental project shal be submitted in writing to the Housing and Redevelopment Director. Within ninety days o its receipt, the City shall indicate its intent to exercise the first right of refusal for the purpose of providing affordable housing. 7 21.85.160. Preexistina ArJDrovals. 8 9 Any residential developments for which a Site Development Plan for the affordabl housing component of the development was approved prior to the effective date of thi ordinance shall be subject to the ordinance in effect at the time of the approval. 10 21.85.170. Enforcement. 1, 11 12 13 14 7 Enforcement provisions are as follows: A. The provisions of this chapter shall apply to all Developers and th agents, successors and assigns proposing a residential development governed by t chapter. No building permit or occupancy permit shall be issued, nor any entitleme granted, for a project which is not exempt and does not meet the requirements of t chapter. All inclusionary units shall be rented or owned in accordance with this chapter. 15 16 B. The City may institute any appropriate legal actions or proceedin necessary to ensure compliance with this chapter, including but not limited to actions revoke, deny or suspend any permit or development approval. 17 18 C. Any individual who sells or rents a restricted unit in violation of t provisions of this chapter shall be required to forfeit all monetary amounts so obtaine Such amounts shall be added to the City’s Housing Trust Fund. 19 21.85.180. Savinas Clause. 20 21 22 23 24 25 All code provisions, ordinances, and parts of ordinances in conflict with t provisions of this chapter are repealed. The provisions of this chapter, insofar as the substantially the same as existing code provisions relating to the same subject shall be construed as restatements and continuations thereof and not as enactments. With respect, however, to violations, rights accrued, liabilities accrued, appeals taken, prior to the effective date of this ordinance, under any chapter, ordinance or part of an ordinance hereby otherwise repealed, all provisions of such chapte ordinance, or part of an ordinance shall be deemed to remain in full force for the purpos of sustaining any proper suit, action, or other proceedings, with respect to any sue violation, right, liability or appeal. 26 21.85.190. SeDarabilitv of Provisions. 27 ., ,. 28 the effective date of this ordinance shall be entitled to consideration under the ordinanc provisions superseded by this ordinance. 21.85.155. Exoiration of Affordabilitv Tenure. If any provision of this chapter or the application thereof to any person circumstances is held- invalid, the remainder of the chapter and the application of th -14- 1 2 3 4 5 6 7 8 9 10 ); ; 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 provision to other persons not similarly situated or to other circumstances shall not bt affected thereby. EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption and the City Clerk shall certify to the adoption of this ordinance and cause it to bt published at least once in a publication of general circulation in the City of Carlsbad withir fifteen days after its adoption. (Notwithstanding fhe preceding, this ordinance shall not bt effective within the City’s Coastal Zone until approved by the California Coast8 Commission.) INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad Cit ‘Council on the --dayof , 20-9 and thereafter. PASSED AND ADOPTED at a regular meeting of the City Council of the City o Carlsbad on the day of , 20 -9 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: CLAUDE A. LEWIS, MAYOR Al-TEST: LORRAINE M. WOOD, CITY CLERK -15- (SEAL) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 3 PLANNING COMMISSION RESOLUTION NO. 4708 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF A NEGATIVE DECLARATION OF A ZONE CODE AMENDMENT AND LOCAL COASTAL PROGRAM AMENDMENT TO TITLE 21 OF THE ‘CARLSBAD MUNICIPAL CODE THAT REPEAL AND REENACT CHAPTER 21.85 REGARDING AFFORDABLE HOUSING UNITS FOR LOWER-INCOME HOUSEHOLDS AND IN-LIEU FEES. CASE NAME: INCLUSIONARY HOUSING ORDINANCE AMENDMENT CASE NO.: ZCA 99-08/LCPA 99-06 WHEREAS, the Planning Commission has recommended approval of an amendment to Title 2 1 of the Carlsbad Municipal Code that repeals and reenacts Chapter 2 1.85 regarding affordable housing units for lower-income households and in-lieu fees; and WHEREAS, a Negative Declaration was prepared in conjunction with said amendment; and WHEREAS, the Planning Commission did on the 19th day of January, 2000, hold a duly noticed public hearing as prescribed by law to consider said request; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, examining the initial study, analyzing the information submitted by staff, and considering any written comments received, the Planning Commission considered all factors relating to the Negative Declaration. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning Commission as follows: 4 That the foregoing recitations are true and correct. B) That based on the evidence presented at the public hearing, the Planning Commission hereby RECOMMENDS APPROVAL of the Negative Declaration according to Exhibit “ND” dated October 28, 1999, and “PII” dated October 21, 1999, attached hereto and made a part hereof, based on the following findings: 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Findiws: 1. The Planning Commission of the City of Carlsbad does hereby find: A. it has reviewed, analyzed and considered Negative Declaration ZCA 99-08 and LCPA 99-06, the environmental impacts therein identified for this project and any comments thereon prior to RECOMMENDING APPROVAL of the project; and B. the Negative Declaration has been prepared in accordance with requirements of the California Environmental Quality Act, the State Guidelines and the Environmental Protection Procedures of the City of Carlsbad; and C. it reflects the independent judgment of the Planning Commission of the City of Carlsbad; and D. based on the EIA Part II and comments thereon, there is no substantial evidence the project will have a significant effect on the environment. PASSED, APPROVED AND ADOPTED at a regular meeting of the Planning Commission of the City of Carlsbad, California, held on the 19th day of January, 2000, by the following vote, to wit: AYES: Chairperson Compas, Commissioners Heineman, L’Heureux, Nielsen, Segall, Trigas, and Welshons NOES: ABSENT: ABSTAIN: WILLIAM COMPAS, Chairperson CARLSBAD PLANNING COMMISSION ATTEST: Planning Director PC RESO NO. 4708 -2- City of Car’lsbad NEGATIVE DECLARATION Project Address/Location: The project applies to the’entire City of Carlsbad Project Description: An amendment to Zoning Ordinance Chapter 21.85, the “Inclusionary Housing Ordinance,” and the Local Coastal Program. The existing Ordinance requires residential projects to either construct housing affordable to lower-income households or pay fees in-lieu of construction. The proposed changes would, among other things, change the threshold at which affordable housing must be constructed, allow alternatives to construction in certain circumstances, add “extremely low income” as an income category, and provide incentive credits for developers to assist the City in meeting its affordable housing needs. The City of Carlsbad has conducted an environmental review of the above described project pursuant to the Guidelines for Implementation of the California Environmental Quality Act and the Environmental Protection Ordinance of the City of Carlsbad. As a result of said review, a Negative Declaration (declaration that the project will not have a significant impact on the environment) is hereby issued for the subject project. Justification for this action is on file in the Planning Department. A copy of the Negative Declaration with supportive documents is on file in the Planning Department, 2075 Las Palmas Drive, Carlsbad, California 92009. Comments from the public are invited. Please submit comments in writing to the Planning Department within 20 days of date of issuance. If you have any questions, please call Scott Donnell in the Planning Department at (760) 438-l 161, extension 4457. DATED: October 28, 1999 CASE NO: ZCA 99-08/LCPA 99-06 CASE NAME: Inclusionary Housing Ordinance Amendment PUBLISH DATE: October 28, 1999 Planning Director 25 2075 Las Palmas Dr. l Carlsbad. CA 92009-1576 - (760) 438-l 161 - FAX (760) 438-0894 -5 ENVIRONMENTAL IMPACT ASSESSMENT FORM - PART II (TO BE COMPLETED BY THE PLANNING DEPARTMENT) CASE NO: ZCA99-08. LCPA 99-06 DATE: October 2 1. 1999 BACKGROUND 1. CASE NAME: Inclusionarv Housing Ordinance Amendment - ZCA 99-08 2. APPLICANT: Citv of Carlsbad Redevelopment and Housing Department (Debbie Fountain, Director) 3. ADDRESS AND PHONE NUMBER OF APPLICANT: 2965 Roosevelt Street, Suite B, Calrsbad. CA 92008 I (760) 434-2935 4. DATE EIA FORM PART I SUBMITTED: N/A - Citv Droiect 5. PROJECT DESCRIPTION: Proposed amendment to Zoning Ordinance Chapter 21.85, the “Inclusionary Housing Ordinance,” and the Local Coastal Program. The existing Ordinance requires residential projects to either construct housing affordable to lower-income households or pay fees in-lieu of construction. The proposed changes would, among other things, change the threshold at which affordable housing must be constructed, allow alternatives to construction, add “extremely low income” as an income category, and provide incentive credits for developers to assist the City in meeting its affordable housing needs. SUMMARY OF ENVIRONMENTAL FACTORS PO’JXNTIALLY AFFECTED: The summary of environmental factors checked below would be potentially affected by this project, involving at least one impact that is a “Potentially Significant Impact,” or “Potentially Significant Impact Unless Mitigation Incorporated” as indicated by the checklist on the following pages. cl Land Use and Planning cl Transportation/Circulation cl Public Services 0 Population and Housing cl Biological Resources cl Utilities & Service Systems cl Geological Problems 0 Energy & Mineral Resources q Aesthetics 0 Water El Hazards cl Cultural Resources q Air Quality El Noise cl Recreation q Mandatory Findings of Significance 1 Rev. 03/28/96 DETERMINATION. (To be completed by the Lead Agency) lxl 0 q III lxl I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. -4 NEGATIVE DECLARATION (Neg Dee) will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT (EIR) is required. I find that the proposed project MAY have significant effect(s) on the environment, but at least one potentially significant effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An EIlUNeg Dee is required; but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects (a) have been analyzed adequately in an earlier EWNeg Dee pursuant to applicable standards and (b) have been avoided or mitigated pursuant to that earlier EIlUNeg Dee, including revisions or mitigation measures that are imposed upon the proposed project. Therefore, a Notice of Prior Compliance has been prepared. Planner’s Signature ! 0 z//49 Date / Planning Directgs Sigk&ure Id z&cl Date 27 t Rev. 03/28/96 ENVIRONMENTAL IMPACTS STATE CEQA GUIDELINES, Chapter 3, Article 5, Section 15063 requires that the Cit> conduct an Environmental Impact Assessment to determine if a project may have a significant effect on the environment. The Environmental Impact Assessment appears in the follo\ving pages in the form of a checklist. This checklist identifies any physical, biological and human factors that might be impacted by the proposed project and provides the City with information to use as the basis for deciding whether to prepare an Environmental Impact Report (EIR), Negative Declaration, or to rely on a previously approved EIR or Negative Declaration. A brief explanation is required for all answers except “No Impact” answers that are adequately supported by an information source cited in the parentheses following each question. A “No Impact” answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved. A “No Impact” answer should be explained when there is no source document to refer to, or it is based on project-specific factors as well as general standards. “Less Than Significant Impact” applies where there is supporting evidence that the potential impact is not adversely significant, and the impact does not exceed adopted general standards and policies. “Potentially Significant Unless Mitigation Incorporated” applies where the incorporation of mitigation measures has reduced an effect from “Potentially Significant Impact” to a “Less Than Significant Impact.” The developer must agree to the mitigation, and the City must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level. “Potentially Significant Impact” is appropriate if there is substantial evidence that an effect is significant. Based on an “EIA-Part II”, if a proposed project could have a potentially significant effect on the environment, but fl potentially significant effects (a) have been analyzed adequately in an earlier EIR or Mitigated Negative Declaration pursuant to applicable standards and (b) have been avoided or mitigated pursuant to that earlier EIR or Mitigated Negative Declaration, including revisions or mitigation measures that are imposed upon the proposed project, and none of the circumstances requiring a supplement to or supplemental EIR are present and all the mitigation measures required by the prior environmental document have been incorporated into this project, then no additional environmental document is required (Prior Compliance). When “Potentially Significant Impact” is checked the project is not necessarily required to prepare an EIR if the significant effect has been analyzed adequately in an earlier EIR pursuant to applicable standards and the effect will be mitigated, or a “Statement of Overriding Considerations” has been made pursuant to that earlier EIR. A Negative Declaration may be prepared if the City perceives no substantial evidence that the project or any of its aspects may cause a significant effect on the environment. Rev. 03/28/96 0 If there are one or more potentially significant effects, the City may avoid preparing an EIR if there are mitigation measures to clearly reduce impacts to less than significant, and those mitigation measures are agreed to by the developer prior to public revie\v. In this case, the appropriate “Potentially Significant Impact Unless Mitigation Incorporated” may be checked and a Mitigated Negative Declaration may be prepared. l An EIR must be prepared if “Potentially Significant Impact” is checked, and including but not limited to the following circumstances: (1) the potentially significant effect has not been discussed or mitigated in an Earlier EIR pursuant to applicable standards, and the developer does not agree to mitigation measures that reduce the impact to less than significant; (2) a “Statement of Overriding Considerations” for the significant impact has not been made pursuant to an earlier EIR; (3) proposed mitigation measures do not reduce the impact to less than significant, or; (4) through the EIA-Part II analysis it is not possible to determine the level of significance for a potentially adverse effect, or determine the effectiveness of a mitigation measure in reducing a potentially significant effect to below a level of significance. A discussion of potential impacts and the proposed mitigation measures appears at the end of the form under DISCUSSION OF ENVIRONMENTAL EVALUATION. Particular attention should be given to discussing mitigation for impacts which would otherwise be determined significant. Rev. 03/28/96 24 Issues (and Supporting Information Sources). I. LAND USE AND PLANNING. Would the proposal:. a) b) cl d) e) Conflict with general plan designation or zoning? Conflict with applicable environmental plans or policies adopted by agencies with jurisdiction over the project? Be incompatible with existing land use in the vicinity? Affect agricultural resources or operations (e.g. impacts to soils or farmlands, or impacts from incompatible land uses? Disrupt or divide the physical arrangement of an established community (including a low-income or minority community)? II. POPULATION AND HOUSING. Would the proposal: 4 b) c) Cumulatively exceed official regional or local population projections? Induce substantial growth in an area either directly or indirectly (e.g. through projects in an undeveloped area or extension of major infrastructure)? Displace existing housing, especially affordable housing? III. GEOLOGIC PROBLEMS. Would the proposal result in or expose people to potential impacts involving: 4 b) cl 4 d f) 8) h) 9 Fault rupture? Seismic ground shaking? Seismic ground failure, including liquefaction? Seiche, tsunami, or volcanic hazard? Landslides or mudfIows? Erosion, changes in topography or unstable soil conditions from excavation, grading, or fill? Subsidence of the land? Expansive soils? Unique geologic or physical features? IV. WATER. Would the proposal result in: a) b) cl 4 e) Changes in absorption rates, drainage patterns, or the rate and amount of surface runoff? Exposure of people or property to water related hazards such as flooding? Discharge into surface waters or other alteration of surface water quality (e.g. temperature, dissolved oxygen or turbidity)? Changes in the amount of surface water in any water body? Changes in currents, or the course or direction of water movements? a Potentially Significanl Impact q q q cl q q q q q q q q q q q q q q q q q q Potentially Significant Unless Mitigation Incorporated q q q q q q q q q q q q q q q q q q q q q q Less Than Significant Impact q q q q q q q q q q q q q q q q q q q q q q X0 impact lxl Ix1 IXI lxl lxl El lxl Ix) El El lxl Ix1 Ix1 Ix1 lxl Is] 1xI Ix1 l.xl lzl Ia Ix] 5 Rev. 03128196 Issues (and Supporting Information Sources). Changes in the quantity of ground waters, either through direct additions or withdrawals, or through interception of an aquifer by cuts or excavations or through substantial loss of groundwater recharge capability? Altered direction or rate of flow of groundwater? Impacts to groundwater quality? Substantial reduction in the amount of groundwater otherwise available for public water supplies? v. AIR QUALITY. Would the proposal: a) Violate any air quality standard or contribute to an existing or projected air quality violation? b) Expose sensitive receptors to pollutants? c) Alter air movement, moisture, or temperature, or cause any change in climate? d) Create objectionable odors? VI. TRANSPORTATION/CIRCULATION. Would the proposal result in: 4 b) Increased vehicle trips or traffic congestion? c) 4 e) f) Hazards to safety from design features (e.g. sharp curves or dangerous intersections) or incompatible uses (e.g. farm equipment)? Inadequate emergency access or access to nearby uses? Insufficient parking capacity on-site or off-site? Hazards or barriers for pedestrians or bicyclists? Conflicts with adopted policies supporting alternative transportation (e.g. bus turnouts, bicycle racks)? 9) Rail, waterborne or air traffic impacts? VII. . BIOLOGICAL RESOURCES. Would the proposal result in impacts to: a) Endangered, threatened or rare species or their habitats (including but not limited to plants, fish, insects, animals, and birds? b) Locally designated species (e.g. heritage trees)? c) Locally designated natural communities (e.g. oak forest, coastal habitat, etc.)? d) Wetland habitat (e.g. marsh, riparian and vernal pool)? e) Wildlife dispersal or migration corridors? VIII. ENERGY AND MINERAL RESOURCES. Would the proposal? a) Conflict with adopted energy conservation plans’? Potentially Significant Impact cl III 0 cl El cl III III cl 0 El q Cl 0 q q El El 0 cl III Potentially Significanr Unless Mitigation Incorporated III ,cl cl 0 0 El cl El cl q q El III El q q 0 cl cl I.3 cl Less Than Significant impact q q q cl q q cl cl q 0 Cl III cl cl El 0 cl cl 0 cl cl 60 lmpacr lzl El El ix El (XI !xl lxl IXI lxl El lxl Ix] El El IXI lxl lxl lz.l lxl lzl Rev. 03128196 31 Issues (and Supporting Information Sources). b) cl Use non-renewable resources in a wasteful and inefficient manner? Result in the loss of availability of a known mineral resource that would be of future value to the region and the residents of the State? IX. HAZARDS. Would the proposal involve: a) A risk of accidental explosion or release of hazardous substances (including, but not limited to: oil, pesticides, chemicals or radiation)? b) Possible interference with an emergency response plan or emergency evacuation plan? c) The creation of any health hazard or potential health hazards? d) Exposure of people to existing sources of potential health hazards? e) Increase fue hazard in areas with flammable brush, grass, or trees? X. NOISE. Would the proposal result in: a) Increases in existing noise levels? b) Exposure of people to severe noise levels? XI. PUBLIC SERVICES. Would &e proposal have an effect upon, or result in a need for new or altered government services in any of the following areas: a) Fire protection? b) Police protection? c) Schools? d) Maintenance of public facilities, including roads? e) Other governmental services? XII. UTILITIES AND SERVICES SYSTEMS. Would the proposal result in a need for new syStems or supplies. or substantial alterations to the following utilities: ’ a) Power or natural gas? b) Communications systems? c) Local or regional water treatment or distribution facilities? d) Sewer or septic tanks? e) Storm water drainage? f) Solid waste disposal? g) Local or regional water supplies? XIII. AESTHETICS. Would the proposal: a) Affect a scenic or vista or scenic highway? . b) Have a demonstrated negative aesthetic effect? 7 Potentially Significant Impact q q q q q q q q q q q q q q q q q q q q q q q Potential@ Significant Unless Mitigation Incorporated q q q q q q q q q q q q q q q q q q q q q q q Less Than Synificant Impact q q q q 0 q q q q q q q q q q q q 0 q q q q q ho lmpacl Eicl El IXJ IXI El lxl Ix] Is1 lxl IXI El lxl lxl lzl El IXI txl El lxl lxl lxl lxl lx Rev. 03128196 32 Issues (and Supporting Information Sources). XIV. xv. XVI. c) Create light or glare? CULTURAL RESOURCES. Would the proposal: a) Disturb paleontological resources? b) Disturb archaeological resources? c) Affect historical resources? d) Have the potential to cause a physical change which would affect unique ethnic cultural values? e) Restrict existing religious or sacred uses within the potential impact area? RECREATIONAL. Would the proposal: a) Increase the demand for neighborhood or regional parks or other recreational facilities? b) Affect existing recreational opportunities? MANDATORY FINDINGS OF SIGNIFICANCE. al b) cl Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self- sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? Does the project have impacts that are individually limited, but cumulatively considerable? (“Cumulatively considerable” means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? Does the project have environmental effects which will cause the substantial adverse effects on human beings, either directly or indirectly? Potentially Potentially Less Than ii0 Significant Significant Significant lmpxt impact Unless Impacr Mitigation Incorporated q El q El cl I7 q El q q q I8 q q q (XI q q q 1x1 q q q !xl q q q q q q q q q q q (XI q IXI UIXI ’ q IXI q El Rev. 03128196 XVII. EARLIER ANALYSES. Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, one or more effects have been adequately analyzed in an earlier EIR or negati\ve declaration. Section 15063(c)(3)@). In this case a discussion should identify the following on attached sheets: a) Earlier analyses used. Identify earlier analyses and state where they are available for review. b) Impacts adequately addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. . c> Mitigation measures. For effects that are “Less than Significant with Mitigation Incorporated,“ describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site- specific conditions for the project. 9 Rev. 03128/96 DISCUSSION OF ENVIRONMENTAL EVALUATION PROJECT DESCRIPTION/ENVIRONMENTAL SETTING The project is an amendment to the Inclusionary Housing Ordinance, Chapter 21.S5 of the Zoning Ordinance, and the Local Coastal Program. The Ordinance. adopted in 1993, added requirements for residential development to either provide housing affordable to lower-income households (“affordable housing”) or, in certain circumstances, to pay a fee. The Ordinance is implemented as a Citywide Inclusionary Housing Program. A Negative Declaration \vith no mitigation measures was adopted for the existing ordinance. A summary of the amendment follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. Making various, minor “housekeeping” revisions; Adding and revising definitions, including “extremely low income” as a new class of affordable housing and household; Increasing the threshold, expressed as a certain number of proposed units, at which a project must construct affordable housing; Decreasing the rental standard for a low income affordable unit; Establishing a specific term during which a unit must remain affordable; Providing other means besides new construction (e.g., conversion of market rate to affordable units) as a way to meet affordable housing requirements in certain circumstances; Offering developer incentives to provide, for example, specific kinds of affordable housing in exchange for a reduced total inclusionary housing requirement; Allowing the City first right of refusal to purchase affordable rental projects upon expiration of their affordability tenure, and; Bringing the ordinance into conformance with the regionally-adopted guidelines for housing element self certification pursuant to California Government Code Section 65585.1. Staff has determined the proposed project could not have a significant effect on the environment and has therfore prepared a negative declaration. No mitigation measures are required. Specifically, the environmental analysis performed by staff resulted in this determination for the following reasons: 1. The amendment is not associated with any specific development project and does not propose any development; 3 -. The amendment does not affect: any General Plan or zoning designation, allowable densities or land uses, or any environmental plan; 3. The amendment does not directly or indirectly result in any significant physical, 3. biological, or human environmental impacts, and; The amendment does not conflict with or affect any of the 14 environmental factors (i.e., Land Use and Planning, Population and Housing) as listed in this Environmental impact Assessment Form and as discussed in the related section below. Additionally, any future residential development processed pursuant to the Inclusionary Housing Ordinance as proposed for amendment shall be required to undergo separate and detailed environmental review. 10 Rev. 03128196 35 6 DISCUSSION OF IMPACTS TO ENVIRONMENTAL FACTORS 1. 3 -. 3. 4. 5. * 6: 7: 8. 9. Land Use and Planning - The amendment will not conflict with any general plan or zoning designation because it does not affect density, allowed land uses. or the intent and purpose of those designations. It will assist in implementing the General Plan Housing Element by requiring residential development projects to provide or contribute to affordable housing. As the amendment proposes no development and is not site specific. questions regarding the amendment’s impact to existing land uses, agricultural resources or operations, and the physical arrangement of an established community are inapplicable. Population and Housing - Since it does not propose any development or affect allowable land uses or densities, the amendment will not affect any population projections, induce substantial growth, or displace any existing housing. Conversely, the Inclusionary Housing Ordinance and the amendment require and offer incentives to new development to provide affordable housing. Geologic Problems - The amendment changes regulations that affect development on a citywide basis. It does not relate to any particular development project or site or geologic condition. There are no geologic problems associated with this amendment; such would be analyzed as part of the environmental review of a proposed development project. Water - The amendment affects citywide inclusionary housing requirements. Ai no site- specific project nor changes to standards or policies regarding water-related issues are proposed, the proposal will not impact this category. Air Quality - The proposal, in and of itself, will generate no development or land uses, nor does it impact adopted city standards and policies relating to air quality. Accordingly, it will not impact this concern. Biological Resources - Since no site-specific project or changes to City standards or policies affecting plant and animal resources are proposed, there will be no impacts to biological resources. Energy and Mineral Resources - As no site-specific project or changes to City standards or policies relating to these assets is proposed as part of the changes proposed to the Inclusionary Housing Ordinance, there will be no impacts to energy and mineral resources. Hazards - No site-specific project or changes to City standards or policies relating to natural and man-made hazards or emergency plans are proposed. Therefore, the amendment will not impact this subject. Noise - The amendment, in and of itself, will not generate development or land uses or impact adopted city standards and policies relating to noise; accordingly, it will not impact this concern. 11 Rev. 03128196 10. 11. 12. 13. 14. Public Services - Since no site-specific project or changes to City standards or policies regarding public services are proposed, there will be no impacts in this category. Utilities and Service Systems - Since no site-specific project or chan,oes to Cit! standards or policies affecting utilities and service systems are proposed, there will be no impacts to such systems. Aesthetics - As no site-specific project’or changes to City standards or policies relating to views, aesthetics, or light and glare is proposed as part of the amendment, there will be no impacts to energy and mineral resources. Cultural Resources - As no site-specific project or changes to City standards or policies relating to these assets is proposed as part of the amendment, there will be no impacts to cultural resources. Recreational - As no site-specific project or changes to City standards or policies regarding recreational facilities or demand for the same are proposed, there will be no impact to recreational uses, existing or proposed. LIST OF MITIGATING MEASURES (IF APPLICABLE‘1 N/A ATTACH MITIGATION MONITORING PROGRAM (IF APPLICABLE) N/A APPLICANT CONCURRENCE WITH MITIGATION MEASURES (IF APPLICABLE] THIS IS TO CERTIFY THAT I HAVE REVIEWED THE ABOVE MITIGATING MEASURES AND CONCUR WITH THE ADDITION OF THESE MEASURES TO THE PROJECT. N/A ’ N/A Date Signature 12 Rev. 03/28/96 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 4 PLANNING COMMISSION RESOLUTION NO. 4709 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONE CODE AMENDMENT TO TITLE 21 OF THE CARLSBAD MUNICIPAL CODE THAT REPEALS REENACTS CHAPTER 21.85 REGARDING AFFORDABLE HOUSING UNITS FOR LOWER-INCOME HOUSEHOLDS AND IN-LIEU FEES. CASE NAME: INCLUSIONARY HOUSING ORDINANCE AMENDMENT CASE NO: ZCA 99-08 WHEREAS, the Planning Director has prepared a proposed Zone Code Amendment pursuant to Section 21.52.020 of the Carlsbad Municipal Code to: Repeal and reenact Chapter 21.85 of the Carlsbad Municipal Code regarding affordable housing units for lower-income households; and WHEREAS, the proposed amendment is set forth in the draft City Council Ordinance, Exhibit “X” dated, January 19, 2000, and attached hereto INCLUSIONARY HOUSING ORDINANCE AMENDMENT, ZCA 99-08; and WHEREAS, the Housing Commission did on the 12th day of August, 1999, hold a public meeting to consider a recommendation to the Planning Commission and City Council to amend Title 21 of the Carlsbad Municipal Code by the repeal and reenactment of Chapter 21.85 regarding affordable housing units for lower-income households and in-lieu fees; and WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Commission considered all factors relating to the repeal and reenactment of Chapter 21.85, and voted to recommend approval of said modifications; and 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the Planning Commission did on the 19th day of January, 2000, hold a duly noticed public hearing as prescribed by law to consider said request; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, said Commission considered all factors relating to the Zone Code Amendment; and NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning Commission as follows: A) That the foregoing recitations are true and correct. B) That based on the evidence presented at the public hearing, the Commission RECOMMENDS APPROVAL of INCLUSIONARY HOUSING ORDINANCE AMENDMENT, ZCA 99-08, based on the following findings: Findinps: 1. 2. . . . . . . . . . . . . . . . . * . . . . . . . That the proposed Zone Code Amendment ZCA 99-08 is consistent with the General Plan in that it is consistent with the goals and objectives of the City of Carlsbad’s Housing Element, the Consolidated Plan, and the Carlsbad General Plan. That the proposed ZCA reflects sound principles of good planning in that it: (1) Complies with the General Plan and Local Coastal Program; (2) Consists of logical and practical revisions based in part on several years of implementing the current Inclusionary Housing Ordinance; and (3) Seeks to improve the availability, variety and methods to provide affordable housing and shelter in the City of Carlsbad. PC F2ESO NO. 4709 -2- 39 c 1 2 PASSED, APPROVED AND ADOPTED at a regular meeting of the Planning Commission of the City of Carlsbad, held on the 19th day of January, 2000, by the following 3 vote. to wit: 5 6 AYES: Chairperson Compas, Commissioners Heineman, L’Heureux, Nielsen, Segall, Trigas, and Welshons 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOES: ABSENT: ABSTAIN: WILLIAM COMPAS, Chairperson CARLSBAD PLANNING COMMISSION ATTEST: Planning Director PC RESO NO. 4709 -3- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 WHEREAS, California State law requires that the Local Coastal Program and 17 Zoning Ordinance be in conformance and therefore amendments to the implementing ordinance 18 also require an amendment to the Local Coastal Program to ensure consistency between the two 19 documents; and 20 21 22 23 24 Program Amendment as shown on Exhibits “X” dated January 19, 2000, attached to Planning 25 Commission Resolution No. 4709 and incorporated herein by reference as provided in Public 26 Resources Code Section 30574 and Article 15 of Subchapter 8, Chapter 2, Division 5.5 of Title 27 28 PLANNING COMMISSION RESOLUTION NO. 4710 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF AN AMENDMENT TO THE CARLSBAD LOCAL COASTAL PROGRAM TO MARE IT CONSISTENT WITH THE REPEAL AND REENACTMENT OF ZONING ORDINANCE CHAPTER 21.85 REGARDING AFFORDABLE HOUSING UNITS FOR LOWER-INCOME HOUSEHOLDS AND IN-LIEU FEES. CASE NAME: INCLUSIONARY HOUSING ORDINANCE AMENDMENT CASE NO: LCPA 96-10 WHEREAS, the City is repealing and reenacting Chapter 21.85 of Title 21 (Zoning Ordinance) of the Carlsbad Municipal Code regarding affordable housing units for lower-income households; and WHEREAS, the Zoning Ordinance is the implementing ordinance for the City’s Local Coastal Program; and WHEREAS, a verified application for an amendment to the Local Coastal Program has been filed with the Planning Department; and WHEREAS, said verified application constitutes a request for a Local Coastal 14 of the California Code of Regulations of the California Coastal Commission Administrative Regulations; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the Housing Commission did on the 12th day of August, 1999, hold a public meeting to consider a recommendation to the Planning Commission and City Council to amend Title 21 of the Carlsbad Municipal Code by the repeal and reenactment of Chapter 21.85 regarding affordable housing units for lower-income households and in- lieu fees; and WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Commission considered all factors relating to the repeal and reenactment of Chapter 21.85, and voted to recommend approval of said modifications; and WHEREAS, the Planning Commission did on the 19th day of January 2000, hold a duly noticed public hearing as prescribed by law to consider said request; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, said Commission considered all factors relating to the Local Coastal Program Amendment; and WHEREAS, State Coastal Guidelines requires a six week public review period for any amendment to the Local Coastal Program. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning Commission of the City of Carlsbad, as follows: A) That the foregoing recitations are true and correct. W At the end of the State mandated six week review period, starting on December 23, 1999 and ending on February 3,2000, staff shall present to the City Council a summary of the comments received. c> Findinps: That based on the evidence presented at the public hearing, the Commission RECOMMENDS APPROVAL of INCLUSIONARY HOUSING ORDINANCE AMENDMENT, LCPA 99-06, based on the following findings: 1. That the proposed Local Coastal Program Amendment meets the requirements of, and is in conformity with, the policies of Chapter 3 of the Coastal Act and all applicable policies PC RESO NO. 4710 -2- 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 of the Mello I, Mello II, Agua Hedionda, Redevelopment, East Batiquitos, and West Batiquitos segments of the Carlsbad Local Coastal Program in that the proposed amendment is limited in nature in that it will not alter any coastal zone regulations, land use designations or policies, with which future projects subject to the inclusionary housing ordinance must comply. 2. That the proposed amendment to the segments of the Carlsbad Local Coastal Program is required to bring them into consistency with the proposed zone code amendment. PASSED, APPROVED AND ADOPTED at a regular meeting to the Planning Commission of the City of Carlsbad, held on the 19th day of January 2000, by the following vote, to wit: AYES: Chairperson Compas, Commissioners Heineman, L’Heureux, Nielsen, Segall, Trigas, and Welshons NOES: ABSENT: ABSTAIN: WILLIAM COMPAS, Chairperson CARLSBqD PLANNING COMMISSION . ATTEST: Planning Director PC RESO NO. 4710 -3- EXHIBIT 5 “Chapter 21.85 INCLUSIONARY HOUSING Sections: 21.85.010 Purpose and Intent. 21.85.020 Defmitions. 21.85.030 . . Ai@M&+&Inclusionary Housing Requirement. 21.85.035 New Master Plans or Specijk Plans. 21.85.040 Affordable Housing Stanakrds.~ 21.85.050 Calculating the Required Number of Inclusionaty Units.T- 21.85.060 Incentive Credit A&&ment to the Inclusionary Requirement. 21.85.070 Alternatives to Construction of Inclusionary Units.~ 21.85.080 Combined Inclusionary Housing Projects.- 21.85.090 Creation of Inclusionary Units Not Required.- 21.85.100 Offsets to the Cost of Affordable Housing Development. &~&R&MS 21.85.110 In-lieu Fe es.3 21.85.120 Collection of Fees-. 21.85.130 Preliminary Project &plication and Review Pr0cess.I 21.85.140 Affordable Housing Agreement as a Condition of Development. 21.85145 Agreement Processing Fee. 21.85.150 Agreement/Amendments.- of ;?fe 21.85.160 Pre-existing Apptovals.~ 21.85.170 Enforcement.~. 21.85.180 . . Savings Clause .w 21.85.190 Separability of Provisions .m 1 OC?M I.“d.““” 21.85010. Purwse and Intent. The purpose and intent of this chapter is as follows: 1 #A. It is an objective of the City, as established by the Housing Element of the City’s General Plan, to ensure that all residential development, including all Master Planned and Specific Planned communities and all residential subdivisions, provide a range of housing opportunities for all identifiable economic segments of the population, including households of lower and moderate income. It is also the policy of the City to: 1. Require that a minimum of fifteen (15%J percent of all approved residential . . . . . development 9 be restricted to and affordable by to lower-income households; subject to adjustment based on the granting of certain incentives; 2. Require that for those developments which provide ten or more units affordable to lower-income households, at least ten (10%) percent of the lower-income units should- shall have three or more bedrooms; and 3. . . *. . e Under certain conditions, allow alternatives to onsite construction as a means of providing affordable units; k In specific cases, allow inclusionary requirements to be satisfied through the payment of an in- lieu fee as an aldernative to requiring inclusionary units to be constructed on the ground; +l$B. It is the purpose of this chapter to ensure the implementation of the City objective and policy stated in subsection # A. (c)C. Nothing in this chapter is intended to create a mandatory duty on b&a-l-f the part of the City or its employees under the Government Tort Claims Act and no cause of action against the City or its employees is created by this chapter that would not arise independently of the provisions of this chapter. 21.85020. Definitions. Whenever the following terms are used in this chapter, they shall have the meaning established by this section: HA. “Affordable housing” means housing for which the allowable housing expenses paid by a qualifying household shall not exceed a specified fraction of the gross monthly income, adjusted for household size, for the following classes of housing: 1. Extremely low-income, rental or for-sale units: thirty (3070) percent of the gross monthly income, adjusted for household size, at thirty (300/o) percent of the County medtkn income; @j2. Very low-income, ~rental and una&&ed *for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at fifty (50%) percent of the County median income; @j3. Low-income, sfor-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at seventy eighty (80%) percent of the County median income; @)4. Low-income, srental units: thirty (30%) percent of the gross monthly income, adjusted for household size, at seventy (70%) percent of the County median income; GW. “Affordable housing agreement” means a legally binding agreement between a Developer and the City to ensure that the inclusionary requirements of this chapter are satisfied. The agreement establishes, among other things, the number of required inclusionary units, the unit sizes, location, affordability tenure, terms and conditions of affordability and unit production schedule. f3)C. “Allowable housing expense” means the total monthly or annual recurring expenses required of a household to obtain shelter. For a for-sale unit, allowable housing expenses include loan principal and interest at the time of initial purchase by the homebuyer, allowances for property and mortgage insurance, property taxes, 2 45 homeowners association dues and a reasonable allowance for utilities as defined by the Federal Regulations for the Se&e14 Tenant Based Rental Assistance Program. For a rental unit, allowable housing expenses include rent and a ~WXWEI& utility allowance F,, as established and adopted by the City of Carlsbad Housing Authority, as well as all monthly payments made by the tenant to the lessor in connection with use and occupancy of a housing untt and land and facilities associated therewith, including any separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant. #D* “‘Base residential units” means the total units approved by the final decision making authority. Total residential units are compose of both market rate units and inclusionary units. V E. “Affordable housing policy team” shaIl consist of the Community Development Director, Planning Director, Housing and Redevelopment Director, Administrative Services Director/Finance Director, and a representative of the City Attorney’s office. @F. “Combined inclusionary housing project” means separate residential development sites which are linked by a contractual relationship such that some or all of the inclusionary units which are associated with one development site are produced and operated at a separate development site or sites. 6% “Conversion” means the change of status of a dwelling unit from a purchased unit to a rental unit or vice versa. @jH. “Density bonus (new residential construction)” means a minimum density increase of at least twenty-five (25%) percent over either the Growth Management Control Point of the applicable General Plan designation, as defined in Section 21.90.045 of this Title, or the otherwise maximum allowable residential density as specified by the applicable Master Plan or Specific Plan, at the time of application. I. “Extremely low-income household” means those households whose gross income is equal to or less than thirty (3070) percent of the median income for San Diego County as determined by the U.S. Department of Housing and Urban Development. +4@ J. “Financial assistance” means assistance to include, but not be limited to, the subsidization of fees, infrastructure, land costs, or construction costs, the use of redevelopment set-aside funds, or Community Development Block Grant (CDBG) funds, or the provision of other direct financial aid in the form of cash transfer payments or other monetary compensation, by the City of Carlsbad. +KljK. “Growth Management Control Point” shall have the same meaning as provided in chapter 21.90, Section 21.90.045 of this Title. &2jL. “Incentives” means a reduction in the inclusionary housing requirement granted in return for the provision of certain desired types of affordable housing or related amenities as determined by the City Council. @3)&f. “Inclusionary housing project” means a new residential development or conversion of existing residential buildings which has at least fifteen (15%) percent vf the total units reserved and made affordable to lower-income households ] as required by this chapter. +ljN. “Inclusionary unit” means a dwelling unit tha; will be offeied for rent or sale exclusively to and which shall be affordable to lower-income households, as required by this chapter. @++O. “Income” means any monetary benefits that qualifi&s as income in accordance with the criteria and procedures used by the City of Carlsbad Housing and Redevelopment Department for the acceptance of applications and recertifications for the Se&x&-Tenant Based Rental Assistance Program, or its successor. 3 +@P. “Low-income household” means those households whose gross income is more than fifty (50%) percent but does not exceed eighty (80%) percent of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. WQ. “Lower-income household” means low-income, &very low-income and extremely low- income households, whose gross income does not exceed eighty (80%) percent of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. (48jR. “Market-rate unit” means a dwelling unit where the rental rate or sales price is not restricted either by this chapter or by requirements imposed through other local, state, or federal affordable housing programs. assistance, density increases, standards modifktions or any other financial, land use, or regulatory concession which would result in an identifktble cost reduction enabling the provision of afforakble housing. T. “Residential Development” means any new residential construction of rental or for-sale units or development revisions, including those with and without a Master Phm or Specific Plan, planned unit developments, Site Development Plans, mobilehome developments and conversions of apartments to condominiums, as well as dwelling units for which the cost of shelter is included in a recur&g payment for expenses, whether or not an initial lump sum fee is also required. (Zl$Y. “Target income level” means the income standards for extremely w low, very low and low- income levels within San Diego County as determined annually by the U.S. Department of Housing and Urban Development, and adjusted for family size. * II (22) “15 percent or less of the median income for San Diego County as determined annually by the U.S. Department of Housing and Urban Development. 21.85.030. Am4kM+d Inclusionan Housing Reauirement. The inclusionary housing requirements of this chapter shaU apply as follows: @A. This chapter shall apply to all residential market-rate dwelling units resulting from new construction of rental and “for-sale” projects, as well as the conversion of apartments to a&paee condominiums 5si+ll&: 4 B. For any residential development or development revision of more than -fifty (SO) units, not less than fifteen (15%) percent of the total units approved shall be constructed and restricted both as to occupancy and aflordability to lower-income households. C. For those developments which are required to provide ten or more units affordable to lower income households, at least ten (10Y0) percent of the lower income units shah have three or more bedrooms. #D. - > This chapter shall not apply to the following: extended, provided that the number of units is not increased, kewever except that this chapter shall pertain to the subdivision of land for the conversion of apartments to a&paee condomkiums; 2. Conversion of a mobilehome park pursuant to Section 21.37.120 of the Code; Jj3#393. The construction of a new residential structure which replaces a residential structure that was destroyed or demolished within two years prior to the application for a building permit for the new residential structure, provided that the number of residential units is not increased from the number of residential units of the previously destroyed or demolished residential structure; (&4+4. Any residential unit which is accessory as defined in Section 21 J4.020 of this Code . . . . 7; or Memm 5. Second Dwelling Units not constructed to ful&ll inclusionary housing requirements and developed in accordance witlt Section 21.10.015 of this Code; 6. Any project or portion of a project which is a commercial living unit as defined in Section 21.04.093 of this Code; and 7. Those residential units which have obtained affordable housing approvals prior to the effective date of this ordinance, as set forth in Section 21.85160 of this chapter. 21.85.035 New Master Plans or Snecitic Plans New Master Plans and Specific Plans shall submit an inclusionary housing phm as follows: A. All Master Plans and Specific Plans approved on or after the efective date of this Ordinance are required by this chapter to provide an inclusiomuy housing plan within the Master Plan or Specific Plan document. This inclusionaty housing plan will include appropriate text, maps. tables, or-figures to establish the basic framavork for implementing the requirements of this chapter. It shall establish, as a minimum, but not be limited to, the following: 1. The number of market rate units in the Master Plan or Specific Plan; 2. The number of required inclusionary units for lower-income households over the entire Master Plan or Specific Plan; 3. The designated sites for the location of the inclusionary units, including but not limited to any sites for locating oflstIe inclusionary housing projects or combined inclusionary housing projects; 4 4: Agreement shah be made a condition of all future discretionary permits for development within the Master or Specific Plan area such as tentative maps, parcel maps, planned unit developments and Site Development Plans. The provision shah establish that ah relevant terms and conditions of any Afforxhable housing Agreement shall be fled and recorded as a 5 restriction on the project as a whole and those individual lots, units or projects which are designated as inclusionary units. The Affordable Housing Agreement shall be consistent with Section 21.85140 of this chapter. B. The location and phasing of inclusionary dwelling units may be modified as a minor amendment to the Master Plan pursuant to Section 21.38.120 of this Title if the City Council authorizes such modifications when approving the Master Plan. C. All existing Master Plans or Specific Plans proposed for major amendment, pursuant to Section 21.38.120 of this Code, shall incorporate into the amended Master Plan or Specific Plan document an Inclusionary housing plan, consistent with this Section of this chapter. 6 21.85.040. Affordable Housing Standards The affor&ble housing standards are as follows: A. AU residential developments are subject to and must satisfy the inclusionary housing requirements of this chapter, notwithstanding a Developer’s request to process a residential development under other program requirements, laws or regulations, including but not limited to Chapter 21.86 (Residential Density Bonus) of this Code. B. Whenever reasonably possible inclusionary units should be built on the residential development project site.2 C. The required inclusumary units shall be constructed concurrently with market-rate units unless both the final decision-making authority of the City and Developer agree within the Affordable Housing Agreement to an alternative schedule for development. D. Inclusionary rental units shaIl remain restricted and affordable to the designated income group for 55years. In addition to the income of a targeted group, IimtWions on assets may also be used as a factor in determining eligibility for rental or for-sale units. Notwithstanding anything to the contrary in this chapter, no inclusionary unit shall be rented for an amount which exceeds ninety (90?4) percent of the actual rent charged for a comparable market unit in the same development, if any. E. Afer the initial sale of the inclusionary for-sale units at a price affordable to the target income level group, inclusionary for-sale units shall remain affordable to subsequent income eligible buyers. pursuant to a resale restriction with a term of thirty (30) years or for-sale units may be sold at a market price to other than targeted households provided that the sale shall result in the recapture by the City or its designee of a financial interest in the units equal to the amount of subsidy necessary to make the unit affordable to the designated income group and a proportionate share of any appreciation. Funds recaptured by the City shall be used in assisting other eligible households with home purchases at affor&ble prices. To the extent possible, projects using for-sale units to satisfy inclusionary requirements shall be designed to be compatible with conventional mortgage financing programs including secondary market requirements. F. Inclusionary units should be located on sites that are in proximity to or will provide access to employment opportunities, urban services, or major roads or other transportation and commuter rail facilities and that are compatible with adjacent land uses. G. The design of the inclusionary units shall be reasonably consistent or compatible with the design of the total project development in terms of appearance, materials andflnished quality. H. Inclusionary projects shall provide a mix of affoordable dwelling units, as to number of bedrooms, in response to affora%ible housing demand priorities of the City. I. No building permit shall be issued, nor any development approval granted for a development which does not meet the requirements of this chapter. No inclusionary unit shall be rented or sold except in accordance with this chapter. 7 21.85. 050. CaIculutin~ the Reauired Number of Inclusionarv Units. Subject to adjtlstments for incentives, the required number of lower-income inclusionary units shall be fifleen (15%) percent of Total residential units, approved by the jkl decision-making authority. Fractional unit . requirements of .5 or greater will be rounded up to a whole unit, 9 . W or a fractional proportion of the in-lieu fee may be paid. . 8 Example: Total residential units = 15% Inclusionary units plus 85% Market rate units. If the final decision making authority approves 100 residential units, then the Inclusionary requirement equals 15% of the “Total” or 15 units. The allowable market rate units would be 85% of the “Total” or 85 units. 21.85. 060. Incentive Credit Adiustment to the Inclusionarv Reauirement. Certain types of affordable housing are relatively more desirable in satisfying the City’s state mandated afforakble housing requirement as well as the City’s Housing Element, goals, objectives and policies, and these may change over time. As an incentive to assist the City in providing this housing, Developers may receive additional (more than one unit) credit for each of such units provided, thereby reducing the total inclusionary housing requirement to less than fifteen (15%) percent of all residential units approved.] . . VA Schedule of Inclusionary Housing Incentive Credit specifying how credit may be earned shall be adopted by the City Council and made available to Developers subject to this chapter. 21.85.070. Alternatives to Construction of Inclusionarv Units. Notwithstanding any contrary provisions of this chapter, at the sole discretion of the City Council, the City may determine that an alternative to the construction of new inclusionary units is acceptable. A. The City Council may approve alternatives to the construction of new inclusionary units where the proposed alternative supports specific Housing Element policies and goals and assists the City in meeting . . * 1 its e stated- &&&Me housing requirements. Such detenm’nation shall be based on findings that new construction would be infeasible or present unreasonable hardship in light of such factors as project size, site constraints, market competition, price and product type disparity, Developer capability, and financial subsidies available. Alternatives may include, but not be limited to, acquisition and rehabilitation of affordable units, conversion of existing market units to affordable units, and construction of special needs housing projects or programs (shelters, transitional housing, etc.), but not construction of second dwelling units. B. Contribution to a special needs housing project or program may also be an acceptable alternative based upon such findings. The contribution shaB amount to the calculation of amount for an in-lieu fee as setforth in Section 21.85.110. 21.85. 080. Combined Inclusionarv Housing Proiects. An affoordable housing requirement may be satisfied with offside ‘construction as follows: A. When it can be demonstrated by a Developer that the location of inclusionary units onsite is not feasible, and that the goals of this chapter and the City’s Housing Element would be better served by allowing some or all of the inclusionary units associated with one residential project site to be produced and operated at an alternative site or sites the resulting linked inclusionary project site(s) is a combined inclusionary housing project. B. It is at the sole discretion of the City Council to author&e the residential site(s) which form a combined inclusionary housing project. Such decision shall be based on findings that the Combined Project represents a more effective and feasible means of implementing this chapter and the goals of the City’s Housing Element. Factors to be weighed in this determination include: the feasibility of the onsite option considering project size, site constraints, competition from multiple projects, dtf’+&y in integrating due to significant price and product type disparity, lack of capacity of the onsite development entity to deliver affordable housing. Also to be considered is whether the offsite option offers greater feasibility and cost effectiveness, particularly, regarding potential local public assistance and the City’s affordable housing jinancial assistance policy, location advantages such as proximity to jobs, schools, transportation, services, less an impact on other existing developments, capacity of the development entity to deliver the project, and satisfaction of multiple Developer obligations that would be difficult to satisfy with muhiple projects. 12 S5 c. AU agreements between parties to form a combined inclusionary housing project shall be made a part of the Affordable Housing Agreement required for the site(s) which Affotile Housing Agreement(s) shall be approved by Council. D. Location of the combined inclusionary housing project is limited to sites within the same City quadrant in which the market-rate units are located, or site which are contiguous to the quadrant in which the . . . . market-rate units are proposed. e SF Z$e&&Wm 56 21.85.090. Creation of Inclusionarv Units Not Reauired. Inclusionary units created which exceed the final requirement for a prcject may, subject to City Council approval in the Affordable Housing Agreement, be utilized by the Developer to satis& other inclusionary requirements for which it is obligated or market the units to other Developers as a Combined Project subject to the requirements of Section 21.85.080. 21.85. 100. Offsets to the Cost of Affordable Housing Devehmment. The City shall v consider making onsets available to Developers when necessary to enable residential projects to provide a preferable product type or affoordability in excess of the requirements of this chapter. Offsets will be offered by the City to the extent that resources and programs for this purpose are available to the City and approved for such use by the City Council, and to the extent that the residential development, with the use of offsets, assists in achieving the City’s housing goals. To the degree that the City makes available programs to provide offsets, Developers may make application for such programs Evaluation of requests for offsets shall be based on the effectiveness of the offsets in achieving a preferable product type and/or affordability objectives as set forth within the Housing Element; the capability of the development team; the reasonableness of development costs andjusti~ation of subsidy needs; and the extent to which other resources are used to leverage the requested offsets. Nothing in this chapter establishes, directly or through implication, a right to receive any offsets from the City or any other party or agency to enable the Developer to meet the obligations established by this chapter. Projects are entitled to density bonuses and/or other incentives in accordance with provisions of state law, pursuant to the provisions of Chapter 21.86. of this code. Any offsets approved by the City Council and the housing affordability to be achieved by use of those offsets shall be set out within the Affordable Housing Agreement pursuant to Section 21.85.140 or, at the City’s discretion in a subsequent document. Furthermore, Developers are encouraged to utilize local, state or federal assistance, when available, to meet the affordability standards set forth in Sections 21.85.030 and 21.8.040. 21.85. 110. In-lieu Fees. Payment of a fee in-lieu of construction of affootdable units may be appropriate in the following circumstances: A. For any residential development or development revision of f@y units or less, the inclusionary requirements may be satisfied through the payment to the City of an in-lieu fee or other in-lieu contribution such as land. 15 B. The in-lieu fee to be paid for each market-rate dweUing unit shaU be fifteen (15%) percent of the subsidy needed to make affordable to a lower-income household one newly-constructed, typical attached- housing unit. This subsidy shall be based upon the City Council’s determination of the average subsidy that would be required to make affordable typical, new two-bedroom/one bath and three-bedroom/two-bath for-sale units and rental units, each with an assumed affordability tenure of at least 55 years. C. The dollar amount and method of payment of the in-lieu fees shall be jixed by a schedule adopted, from time to time, by resolution of the City Council. Said fee shall be assessed against the market-rate lots/units of a development. D. AU in-lieu fees coUected hereunder shall be deposited in a Housing Trust Fund. Said fund shall be administered by the City and shall be used only for the purpose of providing funding assistance for the provision of affortiable housing units or assistance programs and reasonable costs of administration consistent with the policies and programs contained in the Housing Element of the General Plan. E. At the discretion of the City Council, where a Developer is authorized to pay a fee in-lieu of development, an irrevocable dedication of land or other non-monetary contribution of a value not less than the sum of the otherwise required in-lieu fee may be accepted as an alternative to paying the in-lieu fee tf it is determined that the non-monetary contribution will be effectual in furthering the goals and policies of the Housing Element, and this chapter. The valuation of any land offered in-lieu shall be determined by an appraisal made by an agent mutually agreed upon by the City and the Developer. Costs associated with the appraisal shall be borne by the Developer. F. Where a Developer is authotized to pay a fee in-lieu of development of affoordable housing units, any approvals shall be conditioned upon a requirement to pay the in-lieu fee in an amount established by resolution of the City Council in effect at the time of payment. G. As an alternative to paying an in-lieu fee(s), inclusionary housing requirements may be satisfied either through a combined inclusionary housing project, pursuant to Section 21.85.080 of this chapter or new construction of-inclusionary units subject to approval of Jmd decision- making authority. 16 21.85. 120. CoUection of fees. AU fees coUected under this chapter shall be deposited into a Housing Trust Fund and shall be expended only for the affordable housing needs of lower-income households, and reasonable costs of administration consistent with the purpose of this chapter. 21.85. W?l30. Preliminarv Project At&ication and Review Process. The preliminary project application/review process shall be as follows: 17 QA. An-ap+&&Developer of a Residential Development not subject to a Master Plan or Spectfic Plan, proposing an inclusionary housing project shall have an approved Site~Development Plan prior to execution of an affokkble housing agreement for the project. The Developer may submit a preliminary application to the %x+&@Tousing and Redevelopment Director prior to the submittal of any formal applications for such housing development. The preliminary application shall include the following information if applicable: 1. A brief description of the proposal including the number of inclusionary units proposed; 2. The Zoning, General Plan designations and assessors parcel number(s) of the project site; 3. A site plan, drawn to scale, which includes: building footprints, driveway and parking layout, building elevations, existing contours and proposed grading; and 4. . . A letter identifying what specific 1 , . . m offsets and/or adjustments are being requested of the City. Justification for each inee&ve request should also be included. BB. Within thirty days of receipt of the preliminary application by the Planning Director for projects not requesting 3 offsets or incentive adjllstments or ninety days for projects . . requesting fi offsets or incentive adjustments the department shall provide to an applicant/developer, a letter which identifies project issues of concern, the fi offsets and incentive a@ustments that the @HW& Community Development Director can support when making a recommendation to the final decision-making authority, and the procedures for compliance with this chapter. The applicant shall also be provided with a copy of this chapter and related policies, the pertinent sections of the California Codes to which reference is made in this chapter and all required application forms. 21.85.M8140. hehwkw&Affordable Housing Aweement as a Condition of Development. This chapter requires the following: @A. -Developers, subject to this chapter, shall demonstrate compliance with this chapter by,t.P executing an Affordable Housing Agreement prepared k-a-&~ 18 m by the City Housing and Redevelopment Director and submitted to the Developer for execution. +I+&& . Agreements which conform to the requirements of this section and which do not involve requests for offsets and/or incentives, *other than those permitted by right, if any, shall be reviewed by the T f Affordable Housing Policy Team and approved by the Community Development Director or his designee v. Agreements which involve requests for offsets and/or incentives, other than those permitted by right, shall require the recommendation of the Housing Commission and action by the Ctty Council as the final decision-maker. Following the approval and &@+ng execution by all parties the eomple& Affordable Housing Agreement with approved Site Development Plan shall be recorded, against the entire development, including market-rate lots/units and the relevant terms and conditions therefrom filed and subsequently recorded as a separate deed restriction e&hose or regulatory agreement on the affoordable project individual lots or units of property which are designated for the location of affordable units. The approval and dxecutzon of the Affoordable Housing Agreement shall take place prior to final map approval and shall be recorded upon final map recorakuion or, where a map is not being processed, prior to the issuance of building permits for such lots-or /units. The AfforaMZe Housing Agreement may require that more specific project and/or unit restrictions be recorded at a future time. The Affordable Housing Agreement, shall be bind* all future owners and successors in interest for the term of years specified therein. B. An Affordable Housing Agreement, for which the inclusionary housing requirement will be satisfied through the new construction of inclusionary units, either onsite or offsite, w v shall establish, but not be limited to, the following: 1. ’ The number of inclusionary dwelling units proposed, with speciJc calculations detailing the application of any incentive adjlcstment credit; 2. The unit size@ (square footage\, and the number of - . bedrooms w 3. The proposed location of the inclusionary units; 4. . . . . - Amenities and services provided, such as day-care, after school programs, transportation, job training/employment services and recreation; 5. Level and tenure of aflordability for inclusionary units; (5j6. Schedule for production of dwelling units; @7. 1 Approved Offsets provided by the City;+ . . . . e8. Where applicable, 3 leasing and management plans; financial assistance/loan documents; resale agreements; and monitoring and compliance plans; ew* . . . . . Where applicable, e of &Me v identification of the affootdable housing Developer and agreements specifying their role and reiktionship to the project; and f% 10: Upon request of the Community Development Director, ident$cation of all sources and uses of funds for construction and permanent financing, including profotma financial statements, and evidence of afinn commitment from the sources when available. 19 C. An Affordable Housing Agreement, for which the inclusionary housing requirement will be satisfied through payment to the City of any in-lieu contributions other than fee monies, *such as land dedication+, shall v include the method of determination, schedule and value of total in-lieu contributions. D. An Affordable Housing Agreement will not be required for projects which will be satisfying . . their inclusionary housing requirement through payment to the City of an in-lieu fee v fee. 21.85145 Aareement Ptocessinn Fee. The City Council may establish by resolution, fees to be paid by the Developer at the time of preliminary project application to defray the City’s cost of preparing and/or reviewing all inclusionary housing agreements. . . -- . . e: s 20 63 21.85150. Agreement/Amendments. Any amendment to an Affordable Housing Agreement shall be processed in the same manner as an original application for approval, except as authorized in Section 21.85.035(B). Amendments to AfforaMle Housing agreements initially approved prior to the effective date of this ordinance shah be entitled to consideration under the ordinance provisions superseded by this ordinance. 21.85155. Exoiration of A ffotdabilitv Tenure. The City or its designee shall have a one-time first right of refisal to purchase any project containing afsordable units offered for sale at the end of the minimum tenure of affordability for rental projects. The first right of refusal to purchase the rental project shall be submuted in writing to the Housing and Redevelopment Director. Within ninety days of its receipt, the City shall indicate its intent to exercise the first right of reftlsal for the purpose of providing affordable housing. 21.85.160. Pre-existing Aumovals. Any residential developments for which a Site Development Plan for the affordable housing component of the development was approved prior to the effective date of this ordinance shall be subject to the Ordinance in effect at the time of the approval. 21.85170. Enforcement. Enforcement provisions are as follows: A. The provisions of this chapter shall apply to all Developers and their agents, successors and assigns of a Developer proposing a residential development governed by this chapter. No building permit or occupancy permit shall be issued, nor any entitlement granted, for a project which is not exempt and does not meet the requirements of this chapter. AU inclusionary units shall be rented or owned in accordance with this chapter. B. The City may institute any approptiate legal actions or proceedings necessary to ensure compliance with this chapter, including but not limited to actions to revoke, deny or suspend any permit or development approval. c. Any individual who seUs or rents a restricted unit in violation of the provisions of this chapter shall be required to forfeit all monetary amounts so obtained. Such amounts shall be added to the City’s Housing Trust Fund. 21 21.85.180. Savings Clause. AU code provisions, ordinances, and parts of ordinances in conflict with the provisions of this chapter are repealed. The provisions of this chapter, insofar as they are substantially the same as existing code provisions relating to the same subject matter shall be construed as restatements and continuations thereof and not as new enactments. With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this ordinance, under any chapter, ordinance, or part of an ordinance hereby otherwise repealed, all provisions of such chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal. 21.85.2W190. SeDarabilitv of Provisions. If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the remainder of the chapter and the application of the provision to other persons not similarly situated, or to other circumstances shall not be affected thereby. 22 Exhibit No. 4 To be inserted at a later date EXJBBIT 6 The City of CARLSBAD Planning Department A REPORT TO THE PLANNING COMMISSION Item No. 0 5 P.C. AGENDA OF: January 19,200O Application complete date: N/A Housing & Redevelopment Staff: Craig Ruiz Proiect Planner Scott Donnell SUBJECT: ZCA 99-OSILCPA 99-06 - INCLUSIONARY HOUSING ORDINANCE AMENDMENT - Request for a Zone Code Amendment and a Local Coastal Program Amendment to amend Chapter 21.85 of the Municipal Code regarding inclusionary housing requirements. I. RECOMMENDATION That the Planning Commission ADOPT Planning Commission Resolution No. 4708 RECOMMENDING APPROVAL of the Negative Declaration and Planning Commission Resolutions No. 4709 and 4710 ,JZECOMMENDING APPROVAL of ZCA 99-08 and LCPA * 99-06 based upon the findings contained therein. II. INTRODUCTION Proposed are amendments to the Zoning Ordinance and Local Coastal Program to revise inclusionary housing requiremenrs, or the standards by which new residential development must provide housin g affordable to lower income households. Staff recommends approval of the proposed changes as they are consistent with the General Plan and Local Coastal Program. . III. BACKGROUND In 1993, the Inclusionary Housing Ordinance became effective to implement the City of Carlsbad’s Inclusionary Housing Program. The City’s Inclusionary Housing Program requires that 15 percent of all residential units developed within Carlsbad be affordable to lower income households, specifically to those households with gross household incomes equal to or less than ’ 80% of the San Diego County Area Median Income (AMI). In implementing the Inclusionary Housing Ordinance over the past six years, staff has discovered that with regard to some aspects of the Ordinance the proposed revision would facilitate the practical implementation of the Inclusionary Housing Program. Secondly, a Housing Element Self-Certification Pilot Program was recently established for San Diego County. The Carlsbad City Council h as authorized staff to proceed with efforts to qualify for self-certification during the next Housing Element cycle (2004-2009). Revisions to the Inclusionary Housing Ordinance will assist in the City’s effort to qualify for self-certification since the revisions parallel self- certification policies. Finally, some alternatives for providing affordable housing, such as Second Dwelling Units, have been the subject of much debate and require resolution through revisions to the Inclusionary Housing Ordinance. ZCA 99-08/LCPA 99-06 - INCLUSIONARY HOUSING ORDINANCE AMENDMENT January 19,200O IV. ANALYSIS On August 12, 1999, the Housing Commission reviewed the proposed revisions to the Inclusionary Housing Ordinance as recommended by staff. The information below discusses in detail the primary proposed revisions to the Ordinance as recommended by the Housing Commission. The remaining changes are primarily administrative in nature or delete repetitive sections of the existing ordinance. A copy of the Legislative Draft of the proposed Zone Code Amendment, highlighting the proposed revisions, is attached as Attachment A. Definition Additions/Revisions: Extremely Low Income - Under the existing Housing Element Regional Share Allocation system, the City is required to provide affordable housing in four income categories. These categories include very low, low, moderate, and above moderate income. Under the new Housing Element Self-Certification Program requirements are established for the income categories of extremely low, very low, and low income households, Because the current Inclusionary Housing Ordinance does not contain a definition for exfremeZy low income, a definition has been proposed for addition. Extremely low income is defined by a household whose annual income is 30% of the Area‘Median Income (AMI) or below. Low Income Rent - A monthly rental rate affordable to low income households is currently defined as 1/12th of 30% of 80% of AMI. When the Inclusionary Housing Ordinance was originally adopted, the City decided to set the low income rental rate at the subject level (30% of 80%) because it was the maximum acceptable to obtain credit for producing a low income affordable housing unit. With over six years of experience in implementing the Inclusionary Housing Ordinance, the City has discovered that the acceptable affordable rents (at 80%) are often equal to, and sometimes higher than, market rents within the community. In order to ensure that the Inclusionary Housing Ordinance is actually providing a unit which is more affordable to low income households, staff is proposing to define Low Income Rent as 1/12th of 30%,of 70% of AMI. For a two bedroom unit, this would reduce the current maximum affordable rent from . S1,050 to $919. It should be noted that the new affordability level applies to rentals only. The affordability level for a for-sale product shall remain at the original 80%. Offsets and Incentives - The Inclusionary Housing Ordinance in effect at this time uses the terms “offsets” and “incentives” interchangeably. In the new Ordinance, staff proposes to more differentiate the two terms. C’ffsets are to be defined as direct ‘financial incentives, density increases, standards modifications, and/or other financial, land use or regulatory concessions. 1)qnrive.s are to be defined as an actual reduction in the inclusionary housing requirement in return for the provision of certain preferred types of affordable housing or related amenities as determined appropriate, and approved, by the City Council: For example, if a developer agrees to produce housing units which all have 3 bedrooms or more and/or are affordable to households at 50% of the AMI, they may be eligible to reduce their inclusionary housing requirement from 15% to 10%. This would be a negotiated agreement based on the needs and/or desires of the City of Carlsbad as related to affordable housing. The reason for this consideration is related to the new Housing Self-Certification Program and the fact that it allows the City to receive additional credit for certain types of housing or lower level of affordability. The City would pass that credit on to the developer as deemed appropriate by the City Council. ZCA 99-08/LCPA 99-06 - INCLUSIONARY HOUSING ORDINANCE AMENDMENT January 19,200O Page 3 htdicabilitv of Provisions: Construction Requirement - Today, all projects which propose seven or more units are required to ensure that 15 percent of the units constructed (rental or for-sale) are affordable to low income households. This means that some projects have a very small requirement (e.g. 1 to 10 units). Small affordable housing projects are difficult to finance. To date, these smaller requirements have been met through the provision of second dwelling units (under the existing ordinance requirements), or through the purchase of housing credits fi-om the Villa Loma Affordable Apartment project (as permitted). Currently, only those projects located in the southeast or southwest quadrant of the City are allowed to purchase housing credits from the Villa Loma Project. Typically, projects with a requirement of 10 affordable units or less have had their requests to purchase housing credits in Villa Loma approved by the City Council with little discussion. There are no qualified combined projects with excess affordable units in the northern half of the City. Therefore, projects in the northeast or northwest quadrants of the City do not have an option to purchase housing credits. They must build units. Typically, these developers or property owners have chosen to construct second dwelling units. Over the past year or more, both the Planning and Housing Commissions have expressed concern about the use of second dwelling units to meet the requirements under the Inclusionary Housing Ordinance. The concern has been that the units are not required to remain available as a rental unit on the open market and that there are no income qualifications for the person’s living within the unit. Because of the concerns expressed by the’iwo Commissions and the reality that there are few other options for projects with small affordable housing requirements, staff proposed, and the Housing Commission concurred, that the requirement to actually produce units be increased to a higher level. The Housing Commission is recommending that the Inclusionary Housing Ordinance be modified to require the construction of affordable housing units only when the size of the total housing project is more than 50 units. If the housing project is 50 units or less, which means that the affordable housing requirement will be 7 units or less, the developer/property owner will have the option of paying the Housing In-Lieu Fee. Staff anticipates that this will result in fewer Second Dwelling Units. However, if second dwelling units continue to be proposed to meet an Inclusionary Housing Requirement, then they will need to meet the new restrictions set forth below. Secofld Dwefliilg Units - As mentioned above, under existing policy, a Second Dwelling Unit is not required to be rented and the tenants do not need to meet maximum income requirements. Simply stated, if the unit is rented, existing policy only requires the unit be rented at a rate affordable to lower income households (102th of 30% of 80% of AMI). The reason for this policy is primarily related to enforcement. It would be extremely difficult to effectively monitor the operations of individual homeowners as related to the rental of second dwelling units. Therefore, the City took the policy position that second dwelling units are affordable simply by the fact that they are small (less than 640 square feet), and they meet an affordable housing need for elderly parents, domestic help, college students, etc. Due to recent concerns raised by the Housing and Planning Commissions and the fact that the City Council has already made the decision to participate in the program to qualify for Housing Element bq ZCA 99-08/LCPA 99-06 - INCLUSIONARY HOUSING ORDINANCE AMENDMENT ’ January 19,200O Self-Certification, staff proposed changes to the Inclusionary Housing Ordintitie which would revise the policy pgsition on the use of second dwelling units to meet the City’s affordable housing requirements. Under the Housing Element Self-Certification requirements, second dwelling units count only if the units are rented at an affordable housing cost to a low income household. This means that the tenants must be income-qualified. Because there may remain situations where the only practical option for meeting the Inclusionary Housing requirement is through the provision of second dwelling units, the Housing Commission is recommending that second dwelling units still be permitted to satisfy the requirements of the Inclusionary Housing Ordinance. With the proposed revision, however, if second dwelling units are used to satisfy the requirements of the Inclusionary Housing Ordinance, they must be rented at an affordable rate to a low income qualified tenant. Affordable Housinv Standards: : : Affordable Tenure - Under Housing Element Self-Certification, greater credit is earned when projects have a regulatory requirement which maximizes the term of affordability. The greatest credit is earned for projects which are restricted for 55-years or longer. Projects developed under the current ordinance state that projects will be affordable for a minimum of 30 years, qr for the useful life of the project. In practice, all projects have been deemed to have a useful life of 55 years and have been so restricted. The proposed revisions to the Ordinance will change the standard to reflect the current practice of restricting units for a 55-year period. Maximum Affordable Rent within a Mixed Income Project- As stated above, at the current rental standard for low income households (1112th of 30% of SO%), the rent for a low income affordable unit may be equal to or greater than the market rate rent for a comparable unit. Staff has proposed that the rental standard for a low income affordable unit be reduced to 1/12th of 30% of 70% of the AMI. Staff is also proposing that within a mixed income rental project, the maximum affordable rent be further restricted to require that the rental rate be the lesser of 1112th of 30% of 70% or 90% of the market rate rent for a comparable unit within the project. Incentive Credit’. As mentioned above, as an incentive to assist the City in providing more desirable types of housing, developers may receive additional credit (more than one unit) for each unit of more desirable housing, thereby reducing the total inclusionary housing requirement. For example, if a developer proposes to provide units affordable to extremely low income households, they may be eligible to receive additional credit for those units. Alternative to Construction Under the current housing element system, the City only receives credit for new construction of affordable units. Under the new Housing Element Self-Certification Program, a,. variety of housing types now receive credit. “Examples include acquisition and rehabilitation of existing units, conversion of existing market rate units to affordable units, construction of special needs housing or programs (shelters, transitional housing, etc.), or contributions to a special needs housing project or program. The Housing Commission is proposing that, at the discretion of the Ciry Council. such alternatives to new construction may be approved to satisfy an Inclusionary ZCA 99-08/LCPA 99-06 - INCLUSIONARY HOUSING ORDINANCE AMENDMENT January 19,200O Housing requirement where the proposed alternative supports specific Housing Element policies and .goals, and assists the City in meeting its housing requirements. Alternatives would only be acceptable if new construction is infeasible or presents an unreasonable hardship. Additional Considerations The City’s density bonus ordinance states that the City has the first right of refusal to purchase housing projects that were developed under the ordinance once their affordability tenure expires. It is the Housing Commission’s recommendation that similar language be included in the Inclusionary Housing Ordinance for affordable rental projects. In general, 90 days prior to the expiration of the affordability tenure, the property owner would offer the Housing and Redevelopment- Director the opportunity to purchase the property. The City, or its designee, would then have 90 days to act upon the offer. Consistencv with the General Plan The proposed zone code amendment is consistent with the applicable goals and policies of the General Plan. Proposed changes implement Goal 2 of the Housing Element, which seeks “new housing ‘developed with a diversity of types, prices, tenures, densities and locations and in sufficient quantity to meet the demand of anticipated City and regional growth.” The revisions also are consistent with Housing Element provisions requiring an inclusionary housing program. Moreover, the proposed allowance of alternatives to construction of affordable units as a way to meet inclusionary requirements - such as the rehabilitation and acquisition of existing units and construction of shelters - facilitates several Housing Element objectives, policies, and programs. Finally, the amendment complies with the Land Use Element’s residential goal of providing for “ . . . a variety of housing types and density ranges to meet the diverse economic and social requirement of residents: . . ” Currently, Carlsbad is updating its Housing Element, a process subject to state certification. Recently, a pilot program to enable jurisdictions to self-certify their Housing Elements was . established for San Diego County. The Carlsbad City Council has authorized staff to proceed with efforts to qualify for self-certification during the next Housing Element cycle (20042009). Proposed revisions to the Inclusionary Housing Ordinance will assist the City in its effort to qualify for self-certification since the revisions parallel self-certification policies. These revisions are consistent with both the current and draft Housing Elements. Consistence with the Local Coastal Program The Carlsbad Local Coastal Program (LCP) consists partly of local land use regulations that include the Zoning Ordinance. The area subject to the LCP is commonly referred to as the “coastal zone.” Because the project amends the Zoning Ordinance and affects residential development in the coastal zone, it requires a Local Coastal Program Amendment, or LCPA. LCPAs, following City Council action, also require Coastal Commission approval to become effective. The coastal zone is divided into six geographic segments. Staff has found the proposed revisions to inclusionaxy requirements are consistent with and will not change the regulations that guide development and protect the coastal environment. These regulations deal largely with public ZCA 99-08/LCPA 99-06 - INCLUSIONARY HOUSING ORDINANCE AMENDMENT January 19,200O services and access, agriculture, erosion control, and natural resource protection. V. ENVIRONMENTAL REVIEW The Planning Department has conducted an environmental review of the above described project pursuant to the Guidelines for Implementation of the California Environmental Quality Act and the Environmental Protection Ordinance of the City of Carlsbad. As a result of said review, a Negative Declaration (declaration that the project will not have a significant effect on the environment) was issued for the subject project by the Planning Director on October 28, 1999, and made available for public review. No comments were received on the environmental document. ATTACHMENTS: 1. 2. 3. 4. Planning Commission Resolution No. 4708 (ND) Planning Commission Resolution No. 4709 (ZCA) Planning Commission Resolution No. 47 10 (LCPA) Attachment A - Legislative Draft of the proposed Zone Code Amendment highlighting the proposed revisions SD:cs:mh 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1.5 16 17 18 19 20 21 22 23 23 25 26 27 2s PLANNING COMMISSION RESOLUTION NO. 4708 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF A NEGATIVE DECLARATION OF A ZONE CODE AMENDMENT AND LOCAL COASTAL PROGRAM AMENDMENT TO TITLE 21 OF THE CARLSBAD MUNICIPAL CODE THAT REPEAL AND REENACT CHAPTER 21.85 REGARDING AFFORDABLE HOUSING UNITS FOR LOWER-INCOME HOUSEHOLDS’ AND IN-LIEU FEES. CASE NAME: INCLUSIONARY HOUSING ORDINANCE AMENDMENT CASE NO.: ZCA 99-08/LCPA 99-06 WHEREAS, the Planning Commission has recommended approval of an amendment to Title 21 of the Carlsbad Municipal Code that repeals and reenacts Chapter 21.85 regarding affordable housing units for lower-income households and in-lieu fees;’ and WHEREAS, a Negative Declaration was prepared in conjunction with said L amendment; and WHEREAS, the Planning Commission did on the 19th day of January, 2000, hold a duly noticed public hearing as prescribed by law to consider said request; and WHEREAS, at said public hearing, upon hearin, 0 and considering all testimony and arguments, examining ‘the initial study, analyzing the information submitted by staff, and considering any written comments received, the Planning Commission considered all factors relating to the Negative Declaration: NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning Commission as follows: A) B) That the foregoing recitations are true and correct. That based on the evidence presented at the public hearing, the Planning Commission hereby RECOMMENDS APPROVAL of the Negative Declaration according to Exhibit “ND” dated October 28, 1999, and “PII” dated October 21, 1999, attached hereto and made a part hereof, based on the following findings: L c ” t 7 E S 1c 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 37 28 Findings: 1. The Planning Commission of the City of Carlsbad does hereby find: A. it has reviewed, analyzed and considered Negative Declaration ZCA 99-08 and LCPA 99-06, the environmental impacts therein identified for this project and any comments thereon prior to RECOMMENDING APPROVAL of the project; and B. the Negative Declaration has been prepared in accordance with requirements of the California Environmental Quality Act, the State Guidelines and the Environmental Protection Procedures of the City of Carlsbad; and C. it reflects the independent judgment of the Planning Commission of the City of Carlsbad; and D. based on the EL4 Part II and comments thereon, there is no substantial evidence the project will have a significant effect on the environment. PASSED, APPROVED AND ADOPTED at a regular meeting of the Planning Commission of the City of Carlsbad, California, held on the 19th day of January, 2000, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: WILLIAM COMPAS, Chairperson CARLSBAD PLANNING COMMISSION ATTEST: MICHAEL J. HOLZMILLER Planning Director PC RESO NO. 4708 -2- * City o’f Carlsbad. NEGATIVE DECLARATION Project Address/Location: The project applies to the’entire City of Carlsbad Project Description: An amendment to Zoning Ordinance Chapter 21.85, the “Inclusionary Housing Ordinance,” and the Local Coastal Program. The existing Ordinance requires residential projects to either construct housing affordable to lower-income households or pay fees in-lieu of construction. The proposed changes would, among other things, change the threshold at which affordable housing must be constructed, allow alternatives to construction in certain circumstances, add “extremely low income” as an income category, and provide incentive credits for developers to assist the City in meeting its affordable housing needs. The City of Carlsbad has conducted an environmental review of the above described project pursuant to the Guidelines for Implementation of the California Environmental Quality Act and the Environmental Protection Ordinance of the City of Carlsbad. As a result of said review, a Negative Declaration (declaration that the project will not have a significant impact on the environment) is hereby issued for the subject project. Justification for this action is on file in the Planning Department. .A copy of the Negative Declaration with supportive documents is on fi,le in the Planning Department. 2073 Las Palmas Drive, Carlsbad, California 92009. Comments from the public are invited. Please submit comments in writing to the Planning Department within 20 days of date of issuance. If you have any questions, please call Scott. Donnell in the Planning Department at (760) 338-I 161, extension 4457. DATED: C.4SE X0: C.4SE N.4ME: PLrBLISH DATE: October 28, 1999 ZCA 99-08/LCPA 99-06 Inclusionary Housing Ordinance Amendment October 28, 1999 Planning Director 2075 Las Palmas Dr. l Carlsbad. CA 92009-15?6 - (760) 438-1161 - FAX (760) 438-0894 ENVIRONMENTAL IMPACT ASSESSMENT FORM - PART II (TO BE COMPLETED BY THE PLANNING DEPARTMENT) CASE NO: ZCA99-08. LCPA 99-06 DATE: October 2 1. 1999 BACKGROUND 1. CASE NAME: Inclusionaxv Housing Ordinance Amendment - ZCA 99-08 2. APPLICANT: Citv of Carlsbad Redevelopment and Housinp Deuartment (Debbie Fountain, 3. ADDRESS AND ,PHONE NUMBER OF APPLICANT: 2965 Roosevelt Street. Suite B, Calrsbad. CA 92008 / (760) 434-2935 4. DATE.EIA FORM PART I SUBMITTED: N/A - Citv proiect 5. PROJECT DESCRIPTION: Proposed amendment to Zoning Ordinance Chapter 21.85, the “Inclusionary Housing Ordinance,” and the Local Coastal Program. The existing Ordinance requires residential projects to either construct housing affordable to lower-income households or pay fees in-lieu of construction. The proposed changes would, among other things, change the threshold at which affordable housing must be constructed, allow alternatives to construction. add “extremely low income” as an income category, and provide incentive credits for developers to assist the City in meeting its affordable housing needs. SUMMARY OF ENVIRONMENTAL. FACTORS POTENTIALLY AFFECTED: The summary of environmental factors checked below would be potentially affected by this project, involving at least one impact that is a “Potentially Significant Impact,” or “Potentially Significant Impact Unless Mitigation Incorporated” as indicated by the checklist on the following pages. q Land Use and Planning q Transportation/Circulation q Public Services q Population and Housing q Biological Resources q Utilities & Service Systems Cl G,eological Problems q Energy & Mineral Resources q Aesthetics q LVater q Hazards q Cultural Resources q An Quality. q Noise cl Recreation q Mandatory Findings of Significance Rev. 03/28/96 DETERMINATION. (To be completed by the Lead Agency) •l q cl q q I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A NEGATIVE. DECLARATION (Neg Dee) will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT (EIR.) is required. I find that the proposed project MAY have significant effect(s) on the environment, but at least one potentially significant effect 1) has been adequately analyzed *in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An EIR/Neg Dee is required; but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because all potentially significant effects (a) have been analyzed adequately in an earlier EWNeg Dee pursuant to applicable standards and (b) have been avoided or mitigated pursuant to that earlier EIR/Neg Dee, including revisions or mitigation measures that are imposed upon the proposed project. Therefore, a Notice of Prior Compliance has been prepared. Planner’s Signature ! uy--/ / Date i’ rsl z&cl Planning DirectTs Sigk& ure Date ENVIRONMENTAL IMPACTS STATE CEQA GUIDELINES, Chapter 3, Article 5, Section 15063 requires that the City conduct an Environmental Impact Assessment to determine if a project may have a significant effect on the environment. The Environmental Impact Assessment appears in the following pages in the form of a checklist. This checklist identifies any physical, biological and human factors that might be impacted by the proposed project and provides the City with information to use as the basis for deciding whether to prepare an Environmental Impact Report (EIR), Negative Deciaration, or to rely on a previously approved EIR or Negative Declaration. l A brief explanation is required for all answers except “No Impact” answers that are adequately supported by an information source cited in the parentheses following each question. A “No Impact” answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved. A “No Impact” answer should be explained when there is no source document to refer to, or it is based on project-specific factors as well as general standards. 0 “Less Than Significant Impact” applies where there is supporting evidence that the potential impact is not adversely significant, and the impact does not exceed adopted general standards and policies. l “Potentially Significant Unless Mitigation Incorporated” applies where the incorporation of mitigation measures has reduced an effect from “Potentially Significant Impact” to a “Less Than Significant Impact.” The developer must agree to the mitigation, and the City must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level. . “Potentially Significant Impact” is appropriate if there is substantial evidence that an effect is significant. . Based on an “EIA-Part II”, if a proposed project could have a potentially significant effect on the environment, but _all potentially significant effects (a) have been analyzed adequately in an earlier EIR or Mit.igated Negative Declaration pursuant to applicable standards and (b) have been.avoided or mitigated pursuant to that earlier EIR or Mitigated Negative Declaration, including. revisions or mitigation measures that are imposed upon the proposed project, and none of the circumstances requiring a supplement to or supplemental EIR are present and all the mitigation measures required by the prior environmental document have been incorporated into this. project, then no additional environmental document is required (Prior Compliance). . When “Potentially Significant Impact” is checked the project is not necessarily required to prepare an EIR if the significant effect has been analyzed adequately in an earlier EIR pursuant to applicable standards and the effect will be mitigated, or a “Statement of Overriding Considerations” has been made pursuant to that earlier EIR. . A Negative Declaration may be prepared if the City perceives no substantial evidence that the project or any of its aspects may cause a significant effect on the environment. 3 Rev. 03128f96 l If there are one or more potentially significant effects, the City may avoid preparing an EIR if there are mitigation measures to clearly reduce impacts to less than significant, and those mitigation measures are agreed to by the developer prior to public review. In this case, the appropriate “Potentially Significant Impact Unless Mitigation Incorporated” may be checked and a Mitigated Negative Declaration may be prepared. 0 An EIR must be prepared if “Potentially Significant Impact” is checked, and including but not limited to the following circumstances: (1) the potentially significant effect has not been discussed or mitigated in an Earlier EIR pursuant to applicable standards, and the developer does not agree to mitigation measures that reduce the impact to less than significant; (2) a “Statement of Overriding Considerations” for the significant impact has not been made pursuant to an earlier EIR; (3) proposed mitigation measures do not reduce the impact to less than significant, or; (4) through the EIA-Part II analysis it is not possible to determine the level of significance for a potentially adverse effect, or determine the effectiveness of a mitigation measure in reducing a potentially significant effect to below a level of significance. A discussion of potential impacts and the proposed mitigation measures appears at the end of the form under DISCUSSION OF ENVIRONMENTAL EVALUATION. Particular attention should be given to discussing mitigation for impacts which would otherwise be determined significant. 79 Re\, 07 ‘2X ‘90 Issues (and Supporting Information Sources). I. LAND USE AND PLANNING. Would me proposal:. a) Conflict with general plan designation or zoning? b) Conflict with applicable environmental plans or policies adopted by agencies with jurisdiction over the project? c) Be incompatible with existing land use in the vicinity? d) Affect agricultural resources or operations (e.g. impacts to soils or farmlands, or impacts from incompatible land uses? e) Disrupt or divide the physical arrangement of an established community (including a low-income or minority community)? II. POPULATION AND HOUSING. Would the proposal: a) Cumulatively exceed official regional or local population projections? b) Induce substantial growth in an area either directly ’ or indirectly (e.g. through projects in an undeveloped area or extension of major inf?astrucmre)? c) Displace existing housing, especially affordable housing? III. GEOLOGIC PROBLEMS. Would the proposal result in or expose people to potential impacts involving: a) b) cl d) e) n 9) h) i) Fault rupture? Seismic ground shaking? Seismic ground failure, including liquefaction? Seiche. tsunami, or volcanic hazard? Landslides or mudflows? Erosion. changes in topography or unstable soil conditions from excavation, grading, or fill? Subsidence of the land? Expansive soils? Unique geologic or physical features? 11.. WATER. Would’the proposal result in: a) Changes in absorption rates, drainage patterns, or the rate and amount of surface runoff? b) Exposure of people or property to water related hazards such as flooding? c) Discharge into surface waters or other alteration of surface water quality (e.g. temperature, dissolved oxygen or turbidity)? d) Changes in the amount of surface water in any water body? e) Changes in currents, or the course or direction of water movements? Potentially Significant Impact cl q q q q q q q q q q q ,n q q q q q q q q q Potentially Significant Unless Mitigation Incorporated q El cl q q cl cl 0 0 q q q cl q q q I3 (3 u q III u Less Than Significant impact 0 q q El El El q q q q q q q q q q q El q u El q I\iO Impact El 5l Ix] lxl Ix)’ El lxl lxl 5 Rev. r)3!2R’Oh f9. Issues (and Supporting Information Sources). 8) h) i) Changes in the quantity of ground waters, either through direct additions or withdrawals, or through interception of an aquifer by cuts or excavations or through substantial ioss of groundwater recharge capability? Altered direction or rate of flow of g-roundwater? Impacts to groundwater quality? Substantial reduction in the amount of groundwater otherwise available for public water supplies? \‘. AIR QUALITY. Would the proposal: a) Violate any air quality standard or contribute to an existing or projected air quality violation?. b) Expose sensitive receptors to polluta&? c) Alter air movement, moisture, or temperature, or cause any change in climate? d) Create objectionable odors? VI. TRANSPORTATION/CIRCULATION. Would the proposal result in: a) Increased vehicle trips or traffic congestion? b) Hazards to safety from design features (e.g. sharp curves or dangerous intersectibns) or incompatible uses (e.g. farm equipment)? c) Inadequate emergency access or access to neaiby uses? d) Insufficient parking capacity on-site or off-site? e ) Hazards or barriers for pedestrians or bicyclists? f) Conflicts with adopted policies supporting alternative transportation (e.g. bus turnouts, bicycle racks)? s) Rail. waterborne or air traffic impacts? 1’11 . BIOLOGICAL RESOURCES. Would the proposal ,. result in impacts to: a) Endangered, threatened or rare species or their habitars (including but not limited to plants, fish, insects. animals, and birds? b) Locally designated species (e.g. heritage trees)? c) Locally designated natural communities (e.g. oak forest. coastal habitat, etc.)? d) Wetland habitat (e.g. marsh, riparian and vernal pool)‘? e I Wildlife dispersal or migration corridors? i.111. ENERG)’ AND MINERAL RESOURCES. Would the proposal? a) Conflict with adopted energy conservation plans? Potentially Significant Impact cl cl El cl 0 0 cl 0 cl 0 III q 0 cl q I.2 El cl q IJ 0 Potentially Significant Unless Mitigation Incorporated cl 17 cl q El cl cl 0 0 0,. cl cl 0 [73 0 0 q q 0 cl II Less Than Significant Impact q bi0 Impact 0 (51 0 El cl .El q q cl 0 lxl lxl Ix] lzl q Ix1 III Ix] q ixl q El cl lxl El Ix1 cl 0 lzl (XI q lzl cl Is1 cl 0 El Ix] lzl ixl Rev. 03 ‘ZS’96 81 Issues (and Supporting Information Sources). Potentially Significant Impact b) Use non-renewable resources in a wasteful and mefficient manner? q : c) Result in the loss of availability of a known mineral resource that would be of future value to q the region and the residents of the State? IX. HAZARDS. Would the proposal involve: a) A risk of accidental explosion or release of hazardous substances (including, but not limited to: oil, pesticides, chemicals or radiation)? b) Possible interference with an emergency response. plan or emergency evacuation plan? c) The creation of any health hazard or potential health hazards? d) Exposure of people to existing sources of potential health hazards? e) Increase fne hazard in areas with flammable brush, grass, or trees? q .* q q q q X. NOISE. Would the proposal result in: a) Increases in existing noise levels? b) Exposure of people to severe noise levels? q q XI. X11. PUBLIC SERVICES. Would the proposal have an effect upon, or result in a need for new or altered government services in any of the following areas: a) Fire protection? b) Police protection? c) Schools? d) Maintenance of public facilities, including roads? e) Other governmental services? UTILITIES ‘AND SERVICES SYSTEMS. Would the proposal result in a need for.new systems or supplies. or substantial alterations to the following utilities: a) Power or natural gas? q b) Communications systems’? q c) Local or regional water treatment or distribution facilities? d) Sewer or septic tanks? e) Storm water drainage? f) Solid waste disposal? s) Local or regional water supplies? q q q q q q q q q q XIII. AESTHETICS. Would the proposal: a~ Affect a scenic or vista or scemc highway? . q b) Have a demonstrated negative aesthetic effect? q Potentially Significant Unless Mitigation Incorporaied l-l I q q q q q Cl q q q q q q q q cl q q q q q , Less Than Pii0 Significant Impact Impact , q 5 q -m 0 5.; q 5 q 5 q 5 b 5 q “5 q 5 q 5 q 5 q 5 q 5 q 5 q 5 q 5 q 5 q 5 q El q 5 0. 5 q q 5 q q 5 7 Rev 03 ‘2S’96 $2 Issues (and Supporting Information Sources). XIV. XV. XV. c) Create light or glare? CULW RESOURCES. Would the proposal: 4 b) c) 4 e) Disturb paleontological resources? Disturb archaeological resources? Affect historical resources? Have the potential to cause a ihysical change which would affect unique ethnic cultural values? Restrict existing religious or sacred uses within the potential impact area? RECREATIONAL. Would the proposal: . a) Increase the demand for neighborhood or regional parks or other recreational facilities? b) Affkct existing recreational opportunities? MANDATORY FINDINGS OF SIGNIFICANCE. 4 b) CJ Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self- sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? Does the project have impacts that are individually limited, but cumulatively considerable? (“Cumulatively considerable” means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future’projects)? Does the project have environmental effects which will cause the substantial adverse effects on human beings. either directly or indtrectly’? Potentially Significant Impact q q q q q q q El q q q Potentially Significant Unless Mitigation Incomorared cl q q q El‘ 0 q q cl q q Less Than Si_enificanr lmpacr q 0 cl q fl cl. cl q q q q NO impact 5 5 5 5 5 5 5 5 5 5 5 lie\. O?‘?XiOf) 83 XVII. EARLIER ANALYSES. Earlier analyses may be used where, pursuant to the tiering, prosam EIR, or other CEQA process, one or more effects have been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)@). In this case a discussion should identify the following on attached sheets: a> Earlier analyses used. Identify earlier arialyses and state where they are available for review. b) Impacts adequately addressed. Identify which effects from the above c&&list were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier arktlysis. c> Mitigation measures. For effects that are “Less than Significant with Mitigation Incorporated,“ describe the mitigation measures which were incorporated or refined fi-om the earlier document and the extent to which they address site- specific conditions for the project. 9 Re\.. Oi.‘ZXi9h EN DISCUSSION OF ENVIRONMENTAL EVALUATION PROJECT DESCRIPTION/ENVIRONMENTAL SETTING The project is an amendment to the Inclusionary Housing Ordinance, Chapter 21.85 of the Zoning Ordinance, and the Local Coastal Program. The Ordinance, adopted in 1993, added requirements for residential development to either provide housing affordable to 1ower;income households (“affordable housing”) or, in certain circumstances, to pay a fee. The Ordinance is implemented as a Citywide Inclusionary Housing Program. A Negative Declaration Lvith no mitigation measures was adopted for the existing ordinance. A summary of the amendment follows: 1. 3 -. 3. 4. 5. 6. 7. S. 9. Making various, minor “housekeeping” revisions; Adding and revising definitions, including “extremely low income” as a new class of affordable housing and household; Increasing the threshold, expressed as a certain number of proposed units, at which a project must construct affordable housing; Decreasing the rental standard for a low income affordable unit; Establishing a specific term during which a unit must remain affordable; Providing other means besides new construction (e.g., conversion of market rate to affordable units) as a way to meet affordable housing requirements in certain circumstances; Offering developer incentives to provide, for example, specific kinds of affordable housing in exchange for a reduced total inclusionary housing requirement; Allowing the City first right of refusal to purchase affordable rental projects upon expiration of their affordability tenure, and; Bringing the ordinance into conformance with the regionally-adopted guidelines for housing element self certification pursuant to California Government Code Section 65585.1. ’ Staff has determined the proposed project could not have a significant effect on the environment and has therfore prepared a negative declaration. ‘No mitigation measures are required. . Specifically. the environmental analysis performed by staff resulted in this determination for the following reasons: I. -I -. 3. 1. The amendment is not associated with any specific development project and does not propose any development; The amendment does not affect: any General Plan or zoning designation, allowable densities or land uses, or any environmental plan; The amendment does not directly or indirectly result in any significant physical, biological, or human environmental impacts, and; The amendment does not conflict with or affect any.of the 14 environmental factors (i.e., Land Use and Planning, Population and Housing) as listed in this Environmental impact Assessment Form and as discussed in the related section below. Xdditionally. any future residential development processed pursuant to the Inclusionary Housing Ordinance as proposed for amendment shall be required to undergo separate and detailed en~~ironmental review.. 10 Rtf\ 0?‘_7S’9(, 85 DISCUSSION OF IMPACTS TO ENVIRONMENTAL FACTORS 1. Land Use and Planning - The amendment will not conflict with any general plan or zoning designation because it does not affect density, allowed land uses, or the intent and purpose of those designations. It will assist in implementing the General Plan Housing Element by requiring residential development projects to provide or contribute to affordable housing. As the amendment proposes no development and is not site specific, questions regarding the amendment’s impact to existing land uses, agricultural resources or operations, and the physical arrangement of an established community are inapplicable. 3 -. Population and Housing - Since it does not propose any ‘development or affect allowable land uses or densities, the amendment will not affect any population projections, induce substantial growth, or displace any existing housing. Conversely, the lnclusionary Housing Ordinance and the amendment require and offer incentives to new development to provide affordable housing. 3. Geologic Problems - The amendment changes regulations that affect development on a citywide basis. It does not relate to any particular development project or site or geologic condition. There are no geologic problems associated with this amendment; such would be analyzed as part of the environmental review of a proposed development project. 4. Water - The amendment affects citywide inclusionary housing requirements. As no site- specific project nor changes to standards or policies regarding water-related issues are proposed, the proposal will not impact this category. 5. Air Quality - The proposal, in and of itself, will generate no development or land uses, nor does it impact adopted city standards and policies relating to air quality. Accordingly, it will not impact this concern. 6. Biological Resources - Since no site-specific project or changes to City standards or policies affecting plant and animal resources are proposed, there will be no impacts to biological resources. 7. Energy and Mineral Re’sources - As no site-specific project or changes to City standards or policies relating to these assets is proposed as part of the changes proposed to the Inclusionary Housing Ordinance, there will be no impacts to energy and mineral resources. 8. Hazards - No site-specific project or changes to City standards or policies relating to natural and man-made hazards or emergency plans are proposed. Therefore, the amendment will not impact this subject. 9. Noise - The amendment, in and of itself, will not generate development or land uses or impact adopted city standards and policies relating to noise; accordingly, it will not impact this concern. 11 Re\, 03 ?R% %6 10. 11. 12. 13. 14. Public Services - Since no site-specific project or changes to City standards or policies regarding public services are proposed, there will be no impacts in this category. Utilities and Service Systems - Since no site-specific project or changes to City standards or policies affecting utilities and service systems are proposed, there will be no impacts to such systems. Aesthetics - As no site-specific project-or changes to City standards or policies relating to views, aesthetics, or light and glare is proposed as part of the amendment, there will be no impacts to energy and mineral resources. Cultural Resources - As no site-specific project or changes to City standards or policies relating to these assets is proposed as part of the amendment, there will be no impacts to cultural resources. Recreational - As no site-specific project or changes to City standards or policies regarding recreational facilities or demand for the same are proposed, there will be no impact to recreational uses, existing or proposed. LIST OF MITIGATING MEASURES 0F APPLICABLE\ N/A ATTACH MITIGATION MONITORING PROGRAM (II-- APPLICABLE) N/A APPLICANT CCNCURRENCE WITH MITIGATION MEASURES (IF APPLICABLE) THIS IS TO CERTIFY THAT I HAVE REVIEWED THE ABOVE MITIGATING MEASURES AND CONCUR WITH THE ADDITION OF THESE MEASURES TO THE PROJECT. N’.4 : N/A Date Signature 12 Rev 03’78’96 I- I’ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2-I 7< 26 27 28 PLANNING COMMISSION RESOLUTION NO. 4709 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF A ZONE CODE AMENDMENT TO TITLE 21 OF THE CARLSBAD MUNICIPAL CODE THAT REPEALS REENACTS CHAPTER 21.85 REGARDING AFFORDABLE HOUSING UNITS FOR LOWER-INCOME * HOUSEHOLDS AND IN-LIEU FEES. CASE NAME: INCLUSIONARY HOUSING ORDINANCE AMENDMENT CASE NO: ZCA 99-08 WHEREAS, the Planning Director has prepared a proposed Zone Code Amendment pursuant to Section 2152.020 of the Carlsbad Municipal Code to: Repeal and reenact Chapter 21.85 of the Carlsbad Municipal Code regarding affordable housing units for lower-income households; and WHEREAS, the proposed amendment is set forth in the draft City Council Ordinance, Exhibit “X” dated, January 19, 2000, and attached hereto INCLUSIONARY HOUSING ORDINANCE AMENDMENT, ZCA 99-08; and WHEREAS, the Housing Commission did on the 12th day of August, 1999, hold a public meeting to consider a recommendation to the Planning Commission and City Council to amend.Title 21 of the Carlsbad Municipal Code by the repeal and reenactment of Chapter 21.85 regarding affordable housing units for lower-income households and in-lieu fees; and WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Commission considered all factors relating to the repeal and reenactment of Chapter 21.85, and voted to recommend approval of said modifications; and WHEREAS, the Planning Commission did on the J9th day of January, 2000, hold a duly noticed public hearing as prescribed by law to consider said request; and I WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, said Commission considered all factors relating to the Zone Code Amendment; and NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning 811 c on-mission as follows: 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 23 25 26 27 28 A) That the foregoing recitations are true and correct. B) That based on the evidence presented at the public hearing, the Commission RECOMMENDS APPROVAL of INCLUSIONARY HOUSING ORDINANCE AMENDMENT, ZCA 99-08, based on the following findings: FindinPs: 1. That the proposed Zone Code Amendment ZCA 99-08 is consistent with the General Plan in that it is consistent with the goals and objectives of the City of Carlsbad’s Housing Element, the Consolidated Plan, and the Carlsbad General Plan. 3 -. That the proposed ZCA reflects sound principles of good planning in that it: (1) Complies with the General Plan and Local Coastal Program; (2) Consists of logical and practical revisions based in part on several years of implementing the current Inclusionary Housing Ordinance; and (3) Seeks to improve the availability, variety and methods to provide affordable housing and shelter in the City of Carlsbad. . . . . . . . . . . . . . . . . . . PC -2- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a regular meeting of the Planning Commission of the City of Carlsbad, held on the 19th day of January, 2000, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: mLLIAM COMPAS, Chairperson CARLSBAD PLANNING COMMISSION ATTEST: MICHAEL J. HOLZMILLER Planning Director PC RESO NO. 4709 -3- ORDINANCE NO. EXHIBIT % January 19,200O AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING TITLE 21 OF THE CARLSBAD .JvlUN-ICIPAL CODE AND THE LOCAL COASTAL PROGRAM BY THE REPEAL AND REENACTMENT OF CHAPTER 21.85 REGARDING AFFORDABLE HOUSING UNITS FOR LOWER-INCOME HOUSEHOLDS AND IN-LIEU FEES. CASE NAME: INCLUSIONARY HOUSING ORDINANCE AMENDMENT CASE NO. ZCA 99-08/LCPA 99-06 WHEREAS, Government Code Section 65584(a) requires localities to address the Regional Share housing needs for persons of all income levels in their General Plan Housing Elements; and WHEREAS, based upon its Housing Element, the City of Carlsbad finds that Carlsbad is experiencing a lack of housing affordable to lower-income households; and WHEREAS, new residential development which does not include nor contribute toward housing for lower income households will only serve to aggravate the current affordable housing shortage and create additional need for affordable lower income housing by reducing the supply of residential land available for affordable housing development and increasing the population and the demand for community services businesses staffed by lower wage employees; and WHEREAS, in 1993, the mandatory Inclusionary Housing Program was implemented ‘within the City’s Housing Element as a viable program available to the City to assist it in achieving its Housing Element objectives for lower-income units; and WHEREAS, the City’s Housing Element and this chapter identify programs to provide technical, financial, and standards flexibility, offsets and incentives, to facilitate inclusionary housing development; WHEREAS, on August 12, 1999, the Housing. Commission held a public meeting to consider a recommendation to the Planning Commission and City Council to amend Title 21 of 1 the C&bad Municipal Code by the repeal and reenactment of Chapter 21.85 regarding 2 affordable housing units for lower-income households and in-lieu fees; and 3 WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, 4 of all persons desiring to be heard, said Commission considered all factors relating to the repeal 5 and reenactment of Chapter 21.85, and voted to recommend approval of said modifications; and 6 WHEREAS, on January 19, 2000, the Planning Commission held a public meeting to 7 8 consider a recommendation to the City Council to amend Title 21 of the Carlsbad Municipal 9 Code by the repeal and reenactment of Chapter 2 1.85 regarding affordable housing units for 10 lower-income househoids and in-lieu fees; and 11 WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, 12 of all persons desiring to be heard, said Commission considered all factors relating to the repeal 13 and reenactment of Chapter 2 1.85. 14 The City Council of the City of Carlsbad, California does ordain as follows: SECTION 1: That Title 21 of the Carlsbad Municipal Code is amended bY the repeal reenactment of Chapter 2 1.85 to read as follows: . . . -2- 42 1 PLANNING COMMISSION RESOLUTION NO. 4710 2 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF AN AMENDMENT TO THE CARLSBAD LOCAL COASTAL PROGRAM TO MAKE IT CONSISTENT WITH THE REPEAL AND REENACTMENT OF ZONING ORDINANCE CHAPTER 21.85 REGARDING AFFORDABLE HOUSING UNITS FOR LOWER-INCOME HOUSEHOLDS AND : IN-LIEU FEES. CASE NAME: INCLUSIONARY HOUSING ORDINANCE AMENDMENT CASE NO: LCPA 96-l 0 0 WHEREAS, the City is repealing and reenacting Chapter 21.85 of Title 21 11 12 (Zoding Ordinance) of the Carlsbad Municipal Code regarding affordable h&sing units for lower-income households; and 13 II WHEREAS, the Zoning Ordinance is the implementing ordinance for the City’s Local Coastal Program; and 14 15 16 17 18 19 20 21 WHEREAS, California State law requires that the Local Coastal Program and Zoning Ordinance be in conformance and therefore amendments to the implementing ordinance also require an amendment to the Local Coastal Program to ensure consistency between the two documents; and WHEREAS, : a verified application ‘for an amendment to the Local Coastal ’ Program has been filed with the Planning Department; and 22 23 24 25 26 27 WHEREAS, said verified application constitutes a request for a Local Coastal Program Amendment as shown on Exhibits “X” dated January 19, 2000, attached to Planning Commission Resolution No. 4709 and incorporated herein by reference as provided in Public Resources Code Section 30574 and Article 15 of Subchapter 8, Chapter 2, Division 5.5 of Title 14 of the California Code of Regulations of the California Coastal Commission Administrative 28 Regulations; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2d 21 22 23 24 25 26 27 28 WHEREAS, the Housing Commission did on the 12th day of August, 1999, hold a public meeting to consider a recommendation to the Planning Commission and City Council to amend Title 21 of the Carlsbad Municipal Code by the repeal and reenactment of Chapter 21.85 regarding affordable housing units for lower-income households and in- lieu fees; and WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Commission considered all factors relating to the repeal and reenactment of Chapter 21.85, and voted to recommend approval of said ‘. *. modifications; and WHEREAS, the Planning Commission did on the 19th day of January 2000, hold a duly noticed public hearing as prescribed by law to consider said request; and WHEREAS, at said public hearing, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, said Commission considered all factors relating to the Local Coastal Program Amendment; and WHEREAS, State Coastal Guidelines requires a six week public review period for any amendment to the Local Coastal Program. ‘_ NOW, THEREFORE, BE IT HEREBY RESOLVED by the Planning Commission of the.City of Carlsbad, as follows: A) That the foregoing recitations are true and correct. B) At the end of the State mandated six week review period, starting on December 23, 1999 and ending on February 3, 2000, staff shall present to the City Council a summary of the comments received. c> Findings: That based on the evidence presented at the public hearing, the Commission RECOMMENDS APPROVAL of INCLUSIONARY HOUSING ORDINANCE AMENDMENT, LCPA 99-06, based on the following findings: 1. That the proposed Local Coastal Program Amendment meets the requirements of, and is in conformity with, the policies of Chapter 3 of the Coastal Act and all applicable policies PC RESO NO. 4710 -2- w 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 of the Mello I, Mello II, Agua Hedionda, Redevelopment, East Batiquitos, and West Batiquitos segments of the Carlsbad Local Coastal Program in that the proposed amendment is limited in nature in that it will not alter any coastal zone regulations, land use designations or policies, with which future projects subject to the inclusionary housing ordinance must.comply. 2. That the proposed amendment to-the segments of the Carlsbad Local Coastal Program is required to bring them into consistency-with the proposed zone code amendment. PASSED, APPROVED AND ADOPTED at a regular meeting to the Planning Commission of the City of Carlsbad, held on the 19th day of January 2000, by the following vote, to.wit: AYES: NOES: ABSENT: ABSTAIN: WILLIAM COMPAS, Chairperson CARLSBAD PLANNING COMMISSION ATTEST: MICHAEL J. HOLZMILLER Planning Director PC RESO NO. 4710 -3- 45 EXHIBIT ‘7 da L&E Ciqf of CaR/sbadHom/* A& REU!!~~~O~M~~VT D!~AwM~v~ A REPORT To TIE Houshc, CoMMissioN I STaff: Chic, Ruiz MANAGEMENT ANA~VS-I ITEM NO. 2 DATE: AUGUST 12,1999 SUBJECT: INCLUSIONARY HOUSING ORDINANCE REVISION - RECOMMENDATION TO THE CARLSBAD PLANNING COMMISSION AND CITY COUNCIL TO REVISE THE CITY’S INCLUSIONARY HOUSING ORDINANCE I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 99-007, recommending to the Planning Commission and City Council of the City of Carlsbad that Title 21 of the Carlsbad Municipal Code be amended by the repeal and reenactment of Chapter 21.85 regarding affordable housing units for lower-income households and in-lieu fees. II. PROJECT BACKGROUND On May 21, 1999, the adopted Inclusionary Housing Ordinance became effective to implement the City of Carlsbad’s Inclusionary Housing Program. The City’s Inclusionary Housing Program requires that 15 percent of all residential units developed within Carlsbad be affordable to lower income households, specifically to those household with gross househoId incomes equal to or less than 80% of the San Diego County Area Median Income (AMI). In implementing the Inclusionary Housing Ordinance over the past six years, staff has discovered that there are some aspects of the Ordinance which require revision for better implementation of the Inclusionary Housing Program. In addition to implementing difficulties due to some language within the original Ordinance, there are other reasons for considering revisions to the Ordinance. First, a Housing Element Self-Certification Pilot Program was recently established for San Diego County. The Carlsbad City Council has authorized staff to proceed with efforts to qualify for self- certification during the next Housing Element cycle (1999-2004). Revisions to the Inclusionary Housing Ordinance are necessary to assist in the City’s effort to qualify for self-certification. Second, some policies for providing affordable housing, such as Second Dwelling Units, have been the subject of much debate and require resolution. Second Dwelling Units and other similar issues can be resolved through revisions to the Inclusionary Housing Ordinance. INCLUSIONARY HOUSING ORDINANCE REVISION AUGUST 12,1999 PAGE 2 III. DISCUSSION On June 10, 1999, the I-lousing Commission received an informational report which summarized the key proposed revisions to the Inclusionary Housing Ordinance. The information below discusses in detail the primary proposed revisions to the Ordinance. The remaining changes are primarily administrative in nature or delete repetitive sections of the existing ordinance. Definition Additions: Exfremely Lo7u Income - Under the existing Housing Element Regional Share Allocation system, the City is required to provide affordable housing in four income categories. These categories include very low, low, moderate, and above moderate income. Under the new Housing Element Self-Certification Program, requirements are established for the income categories of extremely low, very low, low and moderate income households. Because the current Inclusionary Housing Ordinance does not contain a definition for extremely 1070 income, a definition has been proposed for addition. Extremely Lozo income is defined as a household whose annual income is 30% of the Area Median Income (AMI) or below. Low Income Rent - A monthly rental rate affordable to low income households is currently defined as l/12* of 30% of 80% of AMI. When the Inclusionary Housing Ordinance was originally adopted, the City decided to set the low income rental rate at the subject level (30% of 80%) because it was the maximum acceptable to obtain credit for producing a low income affordable housing unit. With over six years of experience in implementing the Inclusionary Housing Ordinance, the City has discovered that the acceptable affordable rents (at 80%) are often equal to, and sometimes higher than, market rents within the community. In order to ensure that the Inclusionary Housing Ordinance is actually providing a unit which is more affordable to low income households, staff is proposing to define Low Income Rent as 1/12th of 30% of 70% of AMT. For a two bedroom unit, this would reduce the current maximum affordable rent from $1,050 to $919. It should be noted that the new affordability level applies to rentals only. The affordability level for a for-sale product shall remain at the original 80%. Ofiets and Incentives - The Inclusionary Housing Ordinance in effect at this time uses the terms “offsets” and “incentives” interchangeably. In the new Ordinance, staff proposes to more clearly define the two terms. Ofiets are to be defined as direct financial incentives, density increases, standards modifications, and/or other financial, land use or regulatory concessions. Incentives are to be defined as an actual reduction in the inclusionary housing requirement in return for the provision of certain types of affordable housing or related amenities as determined appropriate, and approved, by the City Council. For example, if a developer agrees to produce housing units which all have 3 bedrooms or more and/or are affordable to households at 50% of the AMI, INCLUSIONARY HOUSING ORDINANCE REVISION AUGUST 12,1999 PAGE 3 they may be eligible to reduce their inclusionary housing requirement from, 15% to 10%. This would be a negotiated agreement based on the needs and/or desires of the City of Carlsbad as related to affordable housing. The reason for this consideration is related to the new Housing Self-Certification Program and the fact that it allows the City to receive additional credit for certain types of housing or level of affordability. The City would pass that credit onto the developer as deemed appropriate by the City Council. Applicability of Provisions: Construction Requirement - All projects which propose seven or more units are required to ensure that 15 percent of the units constructed (rental or for-sale) are affordable to low income households. This means that some projects will have a very small requirement (e.g. 1 to 10 units). To date, these smaller requirements have been met through the provision of second dwelling units (under the existing ordinance requirements), or through the purchase of housing credits from the Villa Loma Affordable Apartment project (as permitted). Currently, only those projects located in the southeast or southwest quadrant are allowed to purchase housing credits from the Villa Loma Project. Typically, projects with a requirement of 10 affordable units or less have had their requests to purchase housing credits in Villa Loma approved by the City Council with little discussion. Small affordable housing requirements are difficult to finance. Therefore, to date, the best method for meeting a small affordable housing requirement in the southern portion of the City is to either provide a second dwelling unit or purchase housing credits. There are no qualified combined projects with excess affordable units in the northern half of the City. Therefore, projects in the northeast or northwest quadrants of the City do not have an option to purchase housing credits. They must build units. Typically, these developers or property owners have chosen to construct second dwelling units. Over the past year or more, both the Planning and Housing Commissions have expressed concern about the use of second dwelling units to meet the requirements under the Inclusionary Housing Ordinance. The concern has been that the units are not required to remain available as a rental unit on the open market and that there are no income qualifications for the person’s living within the unit. Because of the concerns expressed by the two Commissions and the reality of the situation that there are few other options for projects with small affordable housing requirements, staff is proposing that the requirement to actually produce units be increased to a higher level. The Housing Policy Staff Team is recommending that the Inclusionary Housing Ordinance be modified to require the constrtlcfion of affordable housing units only when the size of the total housing project is 50 units or more. If the housing project is 50 units or less, which means that the affordable housing requirement will be 7 units or less, the developer/property owner will have the option of paying the Housing In-Lieu INCLUSIONARY HOUSING ORDINANCE REVISION AUGUST 12,1999 PAGE 4 Fee. Staff anticipates that this will result in fewer Second Dwelling Units. However, if second dwelling units continue to be proposed to meet an Inclusionary Housing Requirement, then they will need to meet the new requirements set forth below. Second Dwelling Units - As mentioned above, under existing policy, a Second Dwelling Unit is not required to be rented and the tenants do not need to meet maximum income requirements. Simply stated, if the unit is rented, existing policy only requires the unit to be rented at a rate affordable to lower income households (1/12h of 30% of 80% of AMI). The reason for this policy is primarily related to enforcement. It would be nearly impossible or extremely difficult to effectively monitor the operations of individual homeowners as related to the rental of second dwelling units. Therefore, the City took the policy position that second dwelling units are affordable simply by the fact that they are small (less than 640 square feet), and they meet an affordable housing need for elderly parents, domestic help, college students, etc. Due to recent concerns raised by the Housing and Planning Commissions and the fact that the City Council has already made the decision to participate in the program to qualify for Housing Element Self-Certification, staff is proposing changes to the Inclusionary Housing Ordinance which would revise the policy position on the use of second dwelling units to meet the City’s affordable housing requirements. Under the Housing Element Self-Certification requirements, second dwelling units count only if the units are rented at an affordable housing cost to a low income household. This means that the tenants must be income qualified. For discussion purposes, there are actually three policy options which can be considered by the City as related to second dwelling units. They are summarized below: 1. The City could decide to allow second dwelling units to be used to satisfy the requirements of the Inclusionary Housing Ordinance under the existing policy, where income qualification is not a requirement. If the unit is rented, it must be rented at an affordable rate (at 30% of 70% of AMI, under the proposed revision to the rental rate). Under this option, the units would not count for self-certification purposes. It would simply be recognized that the units meet an affordable housing need and the existing policy would continue. 2. The City could decide to allow second dwelling units to be used to satisfy the requirements of the Inclusionary Housing Ordinance only if the tenants meet maximum income qualifications for a low income household and the unit is rented at an affordable rate (30% of 70% of AMI, under the proposed revision to the rental rate). Under this option, the units would count for self-certification purposes. However, it must also be noted that this option will substantially increase the impact on the City for monitoring and enforcement purposes. 99 INCLUSIONARY HOUSING ORDINANCE REVISION AUGUST 12,1999 PAGE 5 3. City could decide to not allow second dwelling units to be used, under any circumstances, to satisfy the requirements of the Inclusionary Housing Ordinance. Under this option, a developer could exercise his/her right to build second dwelling units. However, the units could not be used to meet the affordable housing requirements of the Inclusionary Housing Ordinance. Because there may remain situ&ions where the only practical option for meeting the Inclusionary Housing requirements is through the provision of second dwelling units, the Housing Policy Staff Team has recommended that Option #2 be approved as a revision to the Inclusionary Housing Ordinance. With the revision, if second dwelling units are used to satisfy the requirements of the Inclusionary Housing Ordinance, they must be rented at an affordable rate to a low income qualified tenant. Affordable Housing Standards Afirdable Tenure - Under Housing Element Self-Certification, greater credit is earned when projects have a regulatory requirement which maximizes the term of affordability. The greatest credit is earned for projects which are restricted for 55-years or longer. Projects developed under the current ordinance state that projects will be affordable for a minimum of 30 years, or for the useful life of the project. In practice, all projects have been deemed to have a useful life of 55 years and have be so restricted. The proposed revisions to the Ordinance will change the standard to reflect the current practice of restricting units for a 55-year period. Maximum Afirdable Rent within a Mixed Income Project- As stated above, at the current rental standard for low income households (l/12& of 30% of 80%), the rent for a low income affordable unit may be equal to or greater than the market rate rent for a comparable unit. Staff has proposed that the rental standard for a low income affordable unit be reduced to l/12* of 30% of 70% of the AMI. Staff is also proposing that within a mixed income rental project, the maximum affordable rent be further restricted to require that the rental rate be the lessor of l/12* of 30% of 70% or 90% of the market rate rent for a comparable unit within the project. Incentive Credit As mentioned above, as an incentive to assist the City in providing more desirable types of housing, developers may receive additional credit (more than one unit) for each unit of more desirable housing, thereby reducing the total inclusionary housing requirement. For example, if a developer proposes to provide units affordable to extremely low income households, they would be eligible to receive additional credit for those units. INCLUSIONARY HOUSING ORDINANCE REVISION AUGUST 12,1999 PAGE 6 Alternative to Construction Under the current housing element system, the City only receives credit for new construction of affordable units. Under the new Housing Element Self-Certification Program, a variety of housing types now receive credit. Examples include acquisition and rehabilitation of existing units, conversion of existing market rate units to affordable units, construction of special needs housing or programs (shelters, transitional housing, etc.), or contributions to a special needs housing project or program. Staff is proposing that, at the discretion of the City Council, such alternatives to new construction may be approved where the proposed alternative supports specific Housing Element policies and goals, and assists the City in meeting its housing requirements. Alternatives would only be acceptable if new construction is infeasible or presents an unreasonable hardship. Additional Considerations There is one item that was not considered by staff during its review and revision of the Ordinance. In the City’s density bonus ordinance, the City has the first right of refusal to purchase housing projects that were developed under the ordinance once their affordability tenure expires. It is staff’s recommendation that similar language be included in the Inclusionary Housing Ordinance for affordable rental projects. In general, 90 days prior to the expiration of the affordability tenure, the property owner would provide the Housing and Redevelopment Director with an offer to purchase the property. The City, or its designee, would then have 90 days to act upon the offer. IV. RECOMMENDATION The Inclusionary Housing Ordinance has been in effect for six years. Overall, the Ordinance has been extremely effective in providing affordable housing opportunities for low income households. In implementing the Ordinance, some aspects need to be revised for easier implementation. Also, the City Council has expressed its desire to work to achieve the goals and requirements of the new Housing Element Self- Certification Program. Staff believes that the proposed changes will make the Ordinance easier to implement by the City, easier to understand by the public, and will be better able to meet the criteria under the new Self-Certification Program. Therefore, staff is recommending that the Housing Comr-nission take action to recommend approval of the amended Inclusionary Housing Ordinance to the Planning Commission and City Council. INCLUSIONARY HOUSING ORDINANCE REVISION AUGUST 12,1999 PAGE 7 V. 1. 2. 3. EXHIBITS Housing Commission Resolution No. 99-007, recommending repeal and re-enactment of Chapter 21.85 of the Carlsbad Municipal Code to amend the Inclusionary Housing Ordinance. Ordinance for Adoption by City Council for the Zone Code Amendment to Chapter 21.85 of the Carlsbad Municipal Code. Legislative Draft of Proposed Zone Code Amendment (Chapter 21.85) - Inclusionary Housing Ordinance. . ‘. - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ,- HOUSING COMMISSION RESOLUTION NO. 99-007 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING TO THE PLANNING COMMISSION AND CITY COUNCIL OF THE CITY OF CARLSBAD APPROVAL OF AN AMENDMENT TO TITLE 21 OF THE CARLSBAD MUNICIPAL CODE BY THE REPEAL AND REENACTMENT OF CHAPTER 21.85 REGARDING AFFORDABLE HOUSING UNITS FOR LOWER-INCOME HOUSEHOLDS AND IN- LIEU FEES. APPLICANT: CITY OF CARLSBAD CASE NO: ZCA 91-06 WHEREAS, Government Code Section 65584(a) requires localities to address the Regional Share housing needs for persons of all income levels in their General Plan Housing Elements; and WHEREAS, the City’s Regional Share needs are 2,509 lower-income units out of a projected 6,273 total dwelling units needed over a five year period; and WHEREAS, based upon its Housing Element, the City of Carlsbad finds that Carlsbad is experiencing a lack of housing affordable to lower-income households; and WHEREAS, the City of Carlsbad’s lower-income Fair Share Housing objective (minimum good faith effort of affordable units) is 1125 low-income units; and WHEREAS, the City’s Housing Element includes objectives for the provision of 1400 lower- income units (275 units in excess of the Fair Share requirement); and WHEREAS, due to economic and market conditions, the private market has not produced in the past, enough housing units affordable to lower income households to meet a significant-portion of the City’s lower-income Fair Share need; and WHEREAS, new residential development which does not include nor contribute toward housing for lower income households will only serve to aggravate the current affordable housing shortage and create additional need for affordable lower income housing by reducing the supply of residential land available for affordable housing, development and increasing the population ,and the demand for community services businesses staffed by lower wage employees; and WHEREAS, a continuing shortage of affordable housing is detrimental to the public health, safety and welfare as it contributes to overcrowded and substandard conditions for lower-income families, and the inability of industry to find and retain a quality labor supply; and I . . *, - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, an inclusionary requirement of fifteen (15%) percent lower-income housing represents 1050 lower-income units which is less than one-half of the designated Regional Need over the next five years; and WHEREAS, the City’s Housing Element also identifies a variety of other City initiated programs to respond to the Regional Need; and WHEREAS, the mandatory Inclusionary Housing Program was identified within the City’s Housing Element as a viable program available to the City to achieve a significant portion of the City’s Fair Share objective for lower-income units; and WHEREAS, an inclusionary housing requirement of fifteen (15%) percent lower-income use will help ensure that a significant portion of the City’s Fair Share lower-income objectives can be achieved; and WHEREAS, based upon projected residential development between 1991 and 1996, the imposition of a requirement of fifteen (15%) percent low-income inclusionary housing on future residential development is necessary to achieve the City’s Fair Share and Regional Share objectives; and WHEREAS, the City’s Housing Element and this chapter identify programs to provide technical, financial, and standards flexibility, offsets and incentives, to facilitate inclusionary housing development; and WHEREAS, on August 12, 1999, the Housing Commission held a public meeting to consider a recommendation to the Planning Commission and City Council to amend Title 21 of the Carlsbad Municipal Code by the repeal and reenactment of Chapter 21.85 regarding affordable housing units for lower-income households and in-lieu fees; and WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Commission considered all factors relating to the proposed amendments. HCRESO. NO. 99-007 PAGE 2 . * 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 .- NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. The amendment to the Ordinance 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. 3. That based on the information provided within the Housing Commission Staff Report and testimony presented during the public meeting of the Housing Commission on August 12, 1999, the Housing Commission ADOPTS Resolution No. 99407, recommending APPROVAL to the Planning Commission and City Council to amend Title 21 of the Carlsbad Municipal Code by the repeal and reenactment of Chapter 21.85 regarding affordable housing units for lower-income households and in-lieu fees. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission of the City of Carlsbad, California, held on the 12” day of August, 1999, by the following vote, to wit: AYES: Chairperson Latas, Commissioners: Scarpelli, McNeil1 and Ritchie. NOES: None. ABSENT: Commissioner Rose. ABSTAIN: None. CARLSBAD HOUSING COMMISSION RAH K. FOUNTAIN HOUSING AND REDEVELOPMENT DIRECTOR HCRESO. NO. 99-007 PAGE3 LUCE, FORWARD, HAMILTON &SCRIPPS w ATIWNEYS ATLAW. FOUNDED 1873 RONALD W. ROUSE. PARTNER DIRECT DIAL NUMBER (619) 699-2579 DIRECT FAX NUMBER (619) 645-5342 E-Mm ADDRESS: rrouse@luce;com Our File No.: 27817-00002 VIA FACSIMILE AND FIRST CLASS MAIL February 4,200O zA-em* 0 FOR THE INFORMATION OF THE Cl-W COUNCIL Ronald R. Ball, Esq. City Attorney City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Re: City Council Meeting February 9,200O Revisions to City’s Affordable Housing Ordinance Dear Ron: Thank you for taking the time this morning to discuss the concerns of my client, Villages of La Costa, to the proposed revisions to the City’s Affordable Housing Ordinance. As I reviewed with you, we attended the Planning Commission Hearing, presented our materials including a copy of the hypothetical “100 market rate unit” comparison. Our point was to illustrate that the interpretation of the City’s Affordable Housing Ordinance was discriminatory and excessive as it relates to master plan and specific plan projects as the ordinance requires more than 17% affordability based on the number of market rate units. In fact, at the Planning Commission Hearing in response to questions from the Commissioners, the Assistant Planning Director, Mr. Wayne, acknowledged that our calculations and examples were correct and that the master plan and specific plan affordability requirement, expressed as a percentage of authorized market rate units, exceeded 17%. In that regard, earlier today I ftied to you a copy of our hypothetical example which was distributed at the Planning Commission Hearing and which should be part of the administrative record already. Additionally, I faxed to you our simple solution to the discriminatory effect and 600 WEST BROADWAY, Sum? 2600 l SAN DIEGO, CALIFORNIA 92101 l TELEPHONE (619) 236-1414 l FACSIMILE (619) 232-8311 SAN DIEGO l LA JOLU l NEW YORK l Los ANGELES l SAN FIUNCISCO l CHICAGO LUCE, FORW~, HAMILTON QSCRIPPS LLI Ronald R. Ball, Esq. February 4,200O Page 2 application by changing a few words in Section 2 1.85.020.D. to add the qualifying words in the definition of “Base Residential Units“ to mean the number of “market rate” units authorized in the master plan, specific plan or residential subdivision. In short, by making the inclusionary affordable housing requirement calculations based on the market rate units authorized, results in a simple, uniform application of the 15% inclusionary requirement. As I explained, if the ordinance is not changed to provide a uniformity of application, we believe it (1) unconstitutionally discriminates against master plan and specific plan properties by requiring them to “mitigate” at higher inclusionary unit levels and (2) has the affect of compounding mitigation requirements, by in essence requiring a private developer not only to “mitigate” the construction of market rate units at the rate of 15%, but also to compound the mitigation by requiring the private developer to “mitigate” the actual affordable units it provides under the baseline 15% inclusionary requirement. I also want to emphasize that we are not attempting to “build more market rate units” as a result of the change, nor would our proposal result in Growth Management conflict in either (i) control points being exceeded or (ii) excessive quadrant residential build outs. Under either interpretation, the total number of market rate plus affordable units constructed will be required to satisfy Growth Management. The Affordable Housing Ordinance has no relevance to “density bonuses” or other City ordinances associated with state law mandates for voluntary affordable housing projects. As I shared with you, given our efforts to open a constructive dialogue both before and at the Planning Commission Hearing, we were caught by surprise to learn that the matter was scheduled for this Tuesday’s City Council meeting. As a result, we need to get our message out to the decision makers as well. While I am faxing this letter to you, I am also mailing nine additional copies directly to the City Clerk for inclusion into the administrative record and distribution on Monday to the Mayor, each Councihnember, and Messrs. Patchette, Grenyak and Holzmiller. Please feel free to share the facsimile copy with them as well. LUCE, FORWARD, HAMILTON &SCRIPPS LLP kmm~~%~ AT LAW l FOUNDED 1873 Ronald R. Ball, Esq. February 4,200O Page 3 I hope to hear back from you later today after you have had a chance to review the materials I provided. !’ J Lz , 4K of LUCE, FORWARD, HAMILTON & SCRIPPS LLP RWRfjr Encls. cc: Carlsbad City Clerk - 9 copies for distribution (via Fe&$ Mr. Fred Arbuckle/Morrow Development (via fax) Mr. Jack Henthorn/Jack Henthom & Associates (via fax) 1480123.1 z.1*3. i&A&e Gawz& . INCLUSIONARY HOUSING DISPARITY 100 MARKET-RATE EXAMPLE Off-Site lnclusionarv Total Units On-Site Total Market-Rate Units lnclusionaty Housing Requirement 100 100 15 On-Site lnclusionarv 118 100 18* l Off-site lnclusionary Requirement = 15% l On-site lnclusionary Requirement = 18% * Actual number of required on-site affordable units is 17.64 . . , . 1 2 3 4 2-l 25 26 ‘7 ZS h n r -’ C. Nothing in this chapter is intended to create a mandatory duty on the part of the City or its employees under the Government Tort Claims Act and no cause of action against the City or its employees is created by this chapter that would not arise independently of the provisions ‘of this chapter. . . I 21.85.020. Definitions, Whenever the following terms are used in this Chapter, they shall have the me&g established by this section: A. “Affordable housing” means housing for which the allowable housing expenses paid by a qualifying household shall not exceed a specified fraction of. the gross monthly income, adjusted for household size, for the following classes of housing: 1. Extremely low-income, rental or for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at thirty (30%) percent of the County median income; 2. Very low-income, rental and for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at fifty (50%) percent of the County median income; 3. Low-income, for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at eighty (80%) percent of the County median income; and I 4. Low-income, rental units: thirty (30%) percent of the gross monthly income, adjusted for household size, at seventy (70%) percent of the County median income. B. “Afiordable housing agreement” means a legally binding agreement between a Developer and the City to ensure that the inclusionary requirements of this chapter are satisfied. The agreement establishes, among other things, the number of required inclusionary units, the unit sizes, location, affordability tenure, terms and conditions of affordability and unit production schedule. C. “Allowable housing expense” means the total monthly or annual recurring expenses required of a household to obtain shelter. For a for-sale unit, allowable housing expenses include loan principal and interest at the time of initial purchase by the homebuyer, allowances for property and mortgage insurance, property taxes, homeowners association dues and a reasonable allowance for utilities as defined by the Federal Regulations for the Tenant Based Rental Assistance Program. For a rental unit, allowable housing expenses include rent and a utility allowance as established and adopted by the City of Carlsbad Housing Authority, as well as all monthly payments made by the tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities associated therewith, including any separately char sessed by the lessor and payable by e tenant. “Base residential units” means-$kiimber 0-z ecific Plan from which are calculated the lower-in o e inclusionary units to be provided in conjunction with that Master Plan or Specific Plan or residential subdivision. E. “Affordable housing policy team” shall consist of the Community Development Director, Planning Director, Housing and Redevelopment Director, Administrative Services Director/Finance Director, and a representative of the City Attorney’s office. F. “Combined inclusionary housing project” means separate residential development sites which are linked by a contractual relationship such that some or all of the inclusionary units which are’ associated with one development site are produced and operated at a separate development site or sites. G. “Conversion” means the change of status of a dwelling unit from a purchased unit to a rental unit or vice versa. -4 I P, 02 FEB- 7-00 NON 17:OO , L-l THESANDXEGOCOUNTY J APARTMENTASSOCIATION a_ * A Chapter of the California Apartment Association 8qjfmtd~~~@ti~ February 7,2000 SENT M;4 FM Mayor Claude Lewis and members of the City Council City of Carlsbad I200 Carlsbad Village Drive Carlsbad, CA 92008 RE: Revised Inclusionary Housing Ordinance Dear Mayor Lewis: On behalf of the San Diego County Apartment Association, a nonprofit trade group representing over 3,000 rental property owners <and managers, I am writing to strongly urge you not to approve the Revised Inclusionary Housing Ordinance. While this proposal is intended to produce more affordable housing, we are concerned that this action will instead have the reverse effect. In reality, the cost associated with increasing in lieu fees would not be borne by developers, but rather, it would be directly passed on to the renter or new homebuyer, which would only exacerbate the affordability problem. As an organization actively participating in the North County Housing Task Force, we are disappointed that this recommendation is coming to you without further analysis as to the impact of this proposal. The focus of the North County Housing Task Force has been to find ways to provide more rental housing of all types, we are worried about the impact of this proposal on the construction of new multi-family rental housing communities in Carlsbad. As you know, unlike for-sale housing the construction of multi-family rental homes haa only recently begun to rebound in our region On behalf of the San Diego County Apartment Association, I am urging you not to approve this item until additional review of this ordinance’s impact has been completed by a group of industry stakeholders. Sincerely, wvw AGENDA ITEM # c: Mayor Gail L. Scott President CiG @ounCil City MZUI~&W City Attorney City Clerk ~--m/2000 17: 33 8585521445 BIA OF SAN DIEGO BUILDING ZNDiJSTRY ASSOCIATLO~ OF SAN DIEGO COUNTY PAGE 01 i 6336 Greenwich Dr@@ Suite A ,r San Diego, CA W-922 :’ (859) ‘460-3221 FAX No. (SSB) 552-1445 PRESIDENT Cob Seid Coiflich Cotimunilies, Inc. . . VlCE PRESIDENT Steve Doyle Brookfidd Homes ‘. Mike Neal H.Gi Fentoir Company IMMEDIATE PAST PRESIDENT Ml& Pdtllrson~ Barratt herkim EXE’cUTlVE WE PREBlDENT PadA. Tryon CaMtxnia ‘Buildm$ lnduatry Assogiatbn NaIitinal Association a( Home Buil@cvs .’ : February 15,200O Via’ Fax t-760-720-6917) &. Hand Deliverv Mayor Bud Lewis and Members of the Council City of G&bad, 1200, Carlsba;d Village, Drive catmad, C-A 92008 . I$e: AB#15.167 Rebeal and bEnactment of Carlsbad Mu&i& Code Chauter2 1.85 - Inclusionarv Housine Ordinance Deal Mayor Lewis and Councilmembers, The &Ming ‘Industry Association (“BIA”) understands that the City will consider a modification tid re-enactment of its IncluqionAry Houshig Ordinance. This Ordinance will continue to require developers of market-rate housing in the city of Carlsbad to either build 15% of its product as low income or in c&n instances pay a fee in-lieu of this requirement. ‘I%& proposed amended ordinanw continues a policy of requiring new homebuy? to sqbsidize w City’s goal of providing affordable housing. The city of Carlsbad’s inclusionary Housing Ordinance places heavy ‘reliance on marl& r#e hom+buyers to subsidize low-income housing. We believe this to bad public policy that shifts the burden of the whole comxmmity for providing affordable Qox+ing to a’small sectoi of that community. The contidkg policy of the BIA has been to oppose inclwionary housing as a mata of pbiic policy. .We come to believe that not only is Inclusionary Housi~ kuirements bad public policy but just plain lawful. This proposed oidinance is unlawfi4 for the following reasons: 0 Unlaa Takiq. The City’s proposals violate the Takings Clause of the ‘state and federal ‘constitutions because there is no nexus between the con&u&on of market-rate housing and the City’s need foi afIbrd&le houshg. Quite he opposite in fad-as new market-rate housing is colistructed, existing housing that is comparatively more affordable .-'/15/28m 17:33 8585521445 BIA OF SPN DIEGO PAGE 82 l becomes’available for’sale or rental. The justification advanced by the City fbr imposing an ,, incl~ionary requirement on residential construction-that market-rate housing ‘causes the need for aff&able housing by “reducing the supply of residential land”aoes not constitute the suflticient ucxus demanded by the U.S. Supreme Court’s decisions in iVoZZan v. CWjwniu COQ.S$IZ ,Commission and Dolun V. Tigard and by the California Supreme Court in Krlich v. Culver City. Indeed, even &sun&g such heightened scrutiny did not apply, the residential inch+rary housing proposal would not pass muster under the earlier more deferential nexus &an&d articulated in Asso$ated Homebuilders v. Walnut Creek: (Attached with this letter is a number of studies that I request be included as part of this administrative record,) l Viola&on of the Mitkation Fee Act fAE51600] The City’s proposal violates the,Mitigation Fee Act because the City failed to demonstrate a reasonable relationship between any public impacts occasioned by the development of market-rate housing and the burdens imposed by’ the’ proposed ir&~~ionary housing requirement. . Unlaw&l Sue&l Tax The proposed in lieu f&e bears no relationship to .the benefits and burdens associated with residential development and there fore constitutes an unlawful specialI&. ,UnMunately, until now the inclusionary housing approach has been seen by some iocal ‘governments as the path of,ler@ resistance to increasing housing af%rdabiIity. This is why the BIA has maintained and will continue to maintain its opposition to this policy. . Thank you for thought &lly considering our objections to this ordinance, Shlccrely, . ‘F ; J&y Livingston staff Counsel Biilding Industry Association 1,” . . . I $ 1: - NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN to you, because- your interest may be affected, that the City Council of the City of Carlsbad will hold a public hearing at the Council Chambers, 1200 Carlsbad Village Drive, at 6:00 p.m. on Tuesday, February 8, 2000, to consider approval of a Negative Declaration, Zone Code Amendment, and a Local Coastal Program Amendment to amend Chapter 21.85 of the Municipal Code, the “Inclusionary Housing Ordinance.” The current Ordinance requires residential projects to either construct housing affordable to lower-income households or pay fees in-lieu of construction. The proposed amendment would, among other things, increase the threshold (which is based on the number of project units) at which affordable housing must be built, allow alternatives to construction, and “extremely low income” as a new class of affordable housing and household, and provide incentive credits for developers to assist the City in meeting its affordable housing needs. Some of the changes are proposed to make the Inclusionary Housing Ordinance consistent with the regionally- adopted guidelines for the housing element self-certification pilot program. Those persons wishing to speak on this proposal are cordially invited to attend the public hearing. Copies of the staff report will be available on and after February 4,200O. If you have any questions, please call Scott Donnell in the Planning Department at (760) 602- 46 16 or Craig Ruiz in the Housing and Redevelopment Department at (760) 434-28 10. The time within which you may judicially challenge this Negative Declaration, Zone Code Amendment, and Local Coastal Program Amendment, if approved, is established by state law and/or city ordinance, and is very short. If you challenge the Negative Declaration, Zone Code Amendment, and Local Coastal Program Amendment in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City of Carlsbad at or prior to the public hearing. CASE FILE: ZCA 99-08/LCPA 99-06 CASE NAME: INCLUSIONARY HOUSING ORDINANCE AMENDMENT PUBLISH: JANUARY 29,200O CITY OF CARLSBAD CITY COUNCIL January 21,200O TO: CITY CLERK’S OFFICE FROM: HOUSING AND REDEVELOPMENT DEPARTMENT RE: PUBLIC HEARING REQUEST Attached are the materials necessary for you to notice REPEAL AND RE- ENACTMENT OF CARLSBAD MUNICIPAL CODE CHAPTER 21.85 for a public hearing. Please notice the item for the regular City Council meeting on FEBRUARY 8, 2000. Thank you. u \ ommunity Development Director FATE NOTICE OF PUBLIC HEARING I “‘i’ NOTICE IS HEREBY GIVEN to you, because your interest may be affected, that the City Council of the City of Carlsbad will hold a public hearing at the Council Chambers, 1200 Carlsbad Village Drive, at 6:00 p.m. on Tuesday, (DATE), to consider approval of a Negative Declaration, Zone Code Amendment, and a Local Coastal Program Amendment to amend Chapter 21.85 of the Municipal Code, the “Inclusionary Housing Ordinance.” The current Ordinance requires residential projects to either construct housing affordable to lower-income households or pay fees in-lieu of construction. The proposed amendment would, among other things, increase the threshold (which is based on the number of project units) at which affordable housing must be built, allow alternatives to construction, add “extremely low income” as a new class of affordable housing and household, and provide incentive credits for developers to assist the City in meeting its affordable housing needs. Some of the changes are proposed to make the Inclusionary Housing Ordinance consistent with the regionally-adopted guidelines for the housing element self-certification pilot program. 3:: Those persons wishing to speak on this proposal are cordially invited to attend the public hearing. Copies of the staff report will be available on and after (DATE). If you have any questions, please call Scott Donnell in the Planning Department at (760) 602-4616 or Craig Ruiz in the Housing and Redevelopment Department at (760) 434-28 10. The time within which you may judicially challenge this Negative Declaration, Zone Code Amendment, and Local Coastal Program Amendment, if approved, is established by state law and/or city ordinance, and is very short. If you challenge the Negative Declaration, Zone Code Amendment, and Local Coastal Program Amendment in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City of Carlsbad at or prior to the public hearing. CASE FILE: ZCA 99-08/LCPA 99-06 CASE NAME: INCLUSIONARY HOUSING ORDINANCE AMENDMENT PUBLISH: DATE CITY OF CARLSBAD CITY COUNCIL - REGIONAL TASK FORCE ON THE LOCAL INITIATIVES SUPPORT CORP CENTER FOR COMM SOLUTIONS HOMELESS SUITE 1010 4508 MISSION BAY DR 3989 RUFFIN ROAD 450 B ST SAN DIEGO CA 92109 SAN DIEGO CA 92 123 SAN DIEGO CA 92 10 1 COMMUNITY HOUSING OF N COUNTY COMMUNITY RESOURCE CENTER COMM RESOURCE SOCIAL SERVICE 1820 S ESCONDIDO BL PO BOX 952 650 2ND ST ESCONDIDO CA 92025 ENCINITAS CA 92024 ENCINITAS CA 92024 DEPT OF VETERANS AFFAIRS EYE COUNSELING AND CRISIS N COUNTY INTERFAITH COUNCIL 3350 LA JOLLA VILLAGE DR SERVICES 430 N ROSE SAN DIEGO CA 92161 200 N ASH ST ESCONDIDO CA 92027 ESCONDIDO CA 92027 SAN DIEGO HOUSING COMMISSION SAN DIEGO URBAN LEAGUE SD YOUTH & COMMUNITY SERVICES MS-49 4261 MARKET ST SUITE 550 1625 NEWTON AV SAN DIEGO CA 92 102 3255 WING ST SAN DIEGO CA 92 113 SAN DIEGO CA 92110 ST CLARES HOME SUITE 120 243 S ESCONDIDO BL ESCONDIDO CA 92025 ST VINCENT DE PAUL VILLAGE THE SALVATION ARMY 3350 E ST 730 F ST SAN DIEGO CA 92101 SANDIEGO CA 92101 VISTA COMMUNITY CLINIC SUITE 201 956 VALE TERRACE VISTA CA 92084 VOLUNTEERS OF AMERICA 1111 ISLAND SANDIEGO CA 92101 VVSD 4141 PACIFIC HWY SAN DIEGO CA 92110 WOMENS RESOURCE CENTER 1963 APPLE ST OCEANSIDE CA 92054 YMCA 215 BARNES ST OCEANSIDE CA 92054 YWCA PO BOX 126398 SAN DIEGO CA 92112 SERJOBS FOR PROGRESS SUITE 2 11 3355 MISSION AV OCEANSIDE CA 92054 MFOLINE PO BOX 881307 SAN DIEGO CA 92168 HOUSING COALITION 1050 ESSEY SAN DIEGO 92 103 CRISIS HOUSE & FAMILY SHELTER 1034 N MAGNOLIA EL CAJON CA 92020 SD ECUMENICAL COUNCIL 1880 3RD AV SANDIEGO CA 92101 CARLSBAD FAMILY HOUSING SUITE 1070 600 W BROADWAY SANDIEGO CA 92101 EPISCOPAL COMMUNITY SERVICES PO BOX 33 168 SAN DIEGO CA 92 163 SECOND CHANCE SUITE 1 1335 J ST SAN DIEGO CA 92101 UNITED WAY 4699 MURPHY CANYON RD SAN DIEGO CA 92123 HARVEST FOR THE HUNGRY BROTHER BENNOS FOUNDATION 4602 CHICKSAW CT 3260 PRODUCTION AV SAN DIEGO CA 92 117 OCEANSIDE CA 92054 ALPHA PROJECT 299 17TH ST SANDIEGO CA 92101 CATHOLIC CHARITIES SHELTER PARTNERSHIP MITE 349 CEDAR ST SUITE 616 5 14 N COAST HWY SANDIEGO CA 92101 523 W 6TH ST OCEANSIDE CA 92054 LOS ANGELES CA 90014 COMM RESEARCH FOUNDATION N COASTAL SERVICE CENTER LIFELINE COMM SERVICES 173 8 S TREMONT ST SUITE A 200 JEFFERSON ST OCEANSIDE CA 92054 125 S TREMONT ST VISTA CA 92084 OCEANSIDE CA 92054 SD FRIENDS OF LEGAL AIDE LEAGUE OF WOMEN VOTERS INTERFAITH SHELTER NETWORK SUITE 3 10 UNIT B SUITE 12 303 A ST 749 MAGNOLIA AV 1880 3RD AV SAN DIEGO CA 92 12 1 CARLSBAD CA 92008 SAN DIEGO CA 92101 ALLIANCE FOR AFRICAN ASSIST SD NEIGHBORHOOD HOUSING SVC HOME SHARE CONNECTION 3 148 UNIVERSITY AV SUITE B 4069 30TH ST SAN DIEGO CA 92104 3902 EL CAJON BL SAN DIEGO CA 92 104 SAN DIEGO CA 92 105 INTERFAITH HOUSING FOUNDATION SAN DIEGO URBAN LEAGUE S CALIF HOUSING DEV CORF 2130 4TH AV 4261 MARKET ST SUITE A SANDIEGO CA 92101 SAN DIEGO CA 92 102 4322 PIEDMONT DR SAN DIEGO CA 92 107 AFFORDABLE HOUSING PEOPLE INDIAN HUMAN RESOURCES CENTER NEIGHBORHOOD HOUSE SUITE 159 SUITE A 3043 4TH AV 7720 B EL CAMINO REAL 4040 30TH ST SAN DIEGO CA 92103 CARLSBAD CA 92009 SAN DIEGO CA 92 104 HABITAT FOR HUMANITY 3562 GROVE ST LEMON GROVE CA 9 1945 NATIONAL LOW INCOME HSG COAL ROOM 1200 1012 14TH NW WASHINGTON DC 20005 PRICE CHARITIES SUITE 520 7979 IVANHOE AV LA JOLLA CA 92037 LUTHERAN SOCIAL SERVICES CALIF BLACK HEALTH NETWORK NATL ASSOC OF SOCIAL WORKERS 3101 4TH AV SUITE 103 3060 53RD ST SAN DIEGO CA 92103 7840 MISSION CENTER CT SAN DIEGO CA 92105 SAN DIEGO CA 92108 GOOD NEIGHBOR COMM BUILDERS REACH NCLlUMAAC 461 NIAD PO BOX 2913 1770 4TH AV ENCINITAS CA 92024 ESCONDIDO CA 92033 SAN DIEGO CA 92101 - 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SCHOOL OF PUBLIC ADMIN AND URBAN STUDIES SDSU SAN DIEGO CA 92 182-4505 STANDARDPACIFIC 9335 CHESAPEAKE DR SAN DIEGO CA 92123-1010 BENCHMARK PACIFIC STE 210 5055 AVENIDA ENCINAS CARLSBAD CA 92008 LENNAR HOMES SUITE 320 5780 FLEET ST CARLSBAD CA 92008 HOUSING DEPARTMENT CITY OF ENCINITAS 505 S VULCAN ENCINITAS CA 92024 HOUSING DEPARTMENT CITY OF OCEANSIDE 300 N COAST HWY OCEANSIDE CA 92054 SAN MARCOS UNIFIED SCHOOL DIS 1 CIVIC CENTER DRIVE SAN MARCOS CA 92069 CAL HOUSING FINANCE AGENCY SUITE 250 100 COPRORATE PLAZA CULVER CITY CA 90230-764 1 REBECCA DAVIS SANDAG SUITE 800 401 B ST SAN DIEGO CA 92101-4231 LEUCADIA CNTY WTER DIST 1960 LA COSTA AVE CARLSBAD CA 92009 GREYSTONE HOMES SUITE 300 5780 FLEET ST CARLSBAD CA 92008 BROOKFIELD HOMES SUITE 200 12865 POINTE DEL MAR DEL MAR CA 92014 CATELLUS RESIDENTIAL GROUP SUITE 400 5 PARR PLAZA IRVINE CA 92614 HOUSING DEPARTMENT COUNTY OF SAN DIEGO 5201 RUFFIN RD SANDIEGO CA 92123 HOUSING DEPARTMENT CITY OF VISTA PO BOX 1988 VISTA CA 92085 SAN DIEGUITO UNION HS DISTRICT 7 10 ENCINITAS BL ENCINITAS CA 92024 VILLAGE MERCHANTS ASSOC PO BOX 1247 CARLSBAD CA 92018 SUSAN BALDWIN SANDAG SUITE 800 401 B ST SAN DIEGO CA 92101-4231 CITY OF CARLSBAD MUNICIPAL WATER DISTRICT CONTINUING LIFE COMMUNITIES 800 MORNINGSIDE DR FULLERTON CA 92835 B A WORTHING MC PO BOX 1041 CARLSBAD CA 92018 SHEA HOMES SUITE 200 1072 1 TREENA ST SAN DIEGO CA 92131 TOLL BROTHERS INC SUITE 180 2100 ORANGEWOOD AV ORANGE CA 92868 COLRJCH CONSRUCTION SUITE 200 4 14 1 JUTLAND DR SAN DIEGO CA 92 117 MCMILLIAN CONSTRUCTION 2727 HOOVER AV NATIONAL CITY CA 9 1950 BUILDJNG INDUSTRY ASSOCIATOJN 6336 GREENWICH DR SAN DIEGO CA 92122 U.D.C. 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SUITE 2740 SYMPHONY TOWERS 750 ‘B’ ST SAN DIEGO CA 92101 RACEWAY PROERTIES C/O KURTIN PROPERTIES 12750 CARMEL COUNTRY RD SAN DIEGO CA 92130 HERITAGE HOMEBUILDERS INC SUITE G-2 2420 GRAND AV VISTA CA 92083 JACK HENTHORN & ASSOC SUITE D 5375 AVENIDA ENCINAS CARLSBAD CA 92008 HOFMAN PLANNING ASSOC SUITE 150 5900 PASTEUR CT CARLSBAD CA 92008 LADWIG DESIGN GROUP SUITE 300 703 PALOMAR AIRPORT RD CARLSBAD CA 92009 PLANNING SYSTEMS SUITE 100 1530 FARADAY AV CARLSBAD CA 92008 ODAY CONSULTANTS SUITE 100 5900 PASTEUR CT CARLSBAD CA 92008 HUNSAKER & ASSOC SUITE 200 10179 HUENNEKENS ST SANDIEGO CA 92121 JENNA CONTRACTING GROUP 3 103 VILLA WY NEWPORT BEACH CA 92663 MORROW DEVELOPMENT PO BOX 9000-685 CARLSBAD CA 92018-9000 WESTERN PACIFIC HOUSING SUITE 107 2385 CAMINO VIDA ROBLE CARLSBAD CA 92009 -.- - MICHELLE BLUMEN SAN DIEGO CNTY APRTMNT ASSOC SUITE 327 2727 CAMINO DEL RIO SOUTH SAN DIEGO CA 92 116 ALSO USED LCPA ‘A’& ‘B’LISTS jtov LA 7-a b0bL &im2wa0h Dr. ciu-@/?A , CR q2wq - LABELS - 5163 LCPA MAILING LIST (GOVERNMENT AGENCIES) SANDAG (SAN DIEGO COUNTY) WELLS FARGO PLAZA SUITE 800 APPENDIX A (LIST IS REQUIRED BY COASTAL 401 B STREET COMMISSION) SANDIEGO CA 92101 DEPARTMENT OF JUSTICE DEPUTY ATTORNEY GENERAL ROOM 700 110 WEST A STREET SANDIEGO CA 92101 PUBLIC UTILITIES COMMISSION 350 MCALLISTER STREET SAN FRANCISCO CA 94103 OFFICE OF PLANNING AND RESEARCH OFFICE OF LOCAL GOVERNMENT AFFAIRS PO BOX 3044 SACRAMENTO CA 958 12-3044 DEPARTMENT OF FOOD AND AGRICULTURE STEVE SHAFFER, AGRICULTURE RESOURCES ROOM 100 1220 N STREET SACRAMENTO CA 95814 BUSINESS, TRANSPORTATION & HSG AGENCY WILLIAM G. 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BD EXECUTIVE OFFICER SUITE B 9771 CLAIREMONT MESA BLVD SAN DIEGO CA 92124 GUY MOORE JR 6503 EL CAMINO REAL CARLSBAD CA 92009 CYRIL AND MARY GIBSON 12142 ARGYLE DRIVE LOS ALAMITOS CA 90702 JOHN LAMB 1446 DEVLIN DRIVE LOS ANGELES CA 90069 MARY GRIGGS STATE LANDS COMMISSSION SUITE 100 SOUTH 100 HOWE AVE SACRAMENTO CA 95825-8202 SAN DIEGO COUNTY PLANNING & LAND USE DEPT JOAN VOKAC - SUITE B-5 5201 RUFFIN ROAD SAN DIEGO CA 92123 ANTHONY BONS 25709 HILLCREST AVE ESCONDIDO CA 92026 MR/MRS MICHAEL CARDOSA 6491 EL CAMINO REAL CARLSBAD CA 92008 U.S. FISH &WILDLIFE SERVICES 2730 LOKER AVE WEST CARLSBAD CA 92008 Use template for 5160@ TABATA FARMS PO BOX 1338 CARLSBAD CA 92018 KENNETH E SULZER SANDAG - EXEC DIRECTOR IST INT’L PLAZA, SUITE 800 401 B STREET SAN DIEGO CA 92101 JAN SOBEL CHAMBER OF COMMERCE PO BOX 1605 CARLSBAD CA 92008 BILL MCLEAN c/o LAKESHORE GARDENS 7201 AVENIDA ENCINAS CARLSBAD CA 92009 SPIERS ENTERPRISES DWIGHT SPIERS SUITE 139 23 CORPORATE PLAZA NEWPORT BEACH CA 92660 SUPERVISOR BILL HORN AlTN: ART DANELL COUNTY OF SD, ROOM 335 1600 PACIFIC HIGHWAY SAN DIEGO CA 92101 LEE ANDERSON CRA PRESIDENT 5200 EL CAMINO REAL CARLSBAD CA 92008 FLOYD ASHBY 416 LA COSTA AVE ENCINITAS CA 92024 GEORGE BOLTON 6583 BLACKRAIL ROAD CARLSBAD CA 92009 13 & AVERY@’ Address Labels laser 5160* - . REGIONAL TASK FORCE ON THE MOtiELESS 5989 RUFFIN ROAD SAN DIEGO CA 92 123 COMMUNITY HOUSING OF N COUNTY 1520 S ESCONDIDO BL ESCONDIDO CA 92025 DEPT OF VETERANS AFFAIRS 3350 LA JOLLA VILLAGE DR SAN DIEGO CA 92161 SAN DIEGO HOUSING COIMMISSION !WS-49 1625 NEWTON AV SAN DIEGO CA 92113 ST CLARES HOME SUITE 120 243 S ESCONDIDO BL ESCONDIDO CA 92025 VISTA COMMUNITY CLINIC SUITE 20 1 956 VALE TERRACE VISTA CA 92084 WOMENS RESOURCE CENTER i963 APPLE ST OCEANSIDE CA 92054 SEIUJOBS FOR PROGRESS SUITE211 3355 MISSION AV OCEANSIDE CA 92054 NFOLINE 20 BOX 881307 3AN DIEGO CA 92168 bIOUSING COALITION 1050 ESSEY <AN DIEGO 92 103 . , :,. :; .’ .i ’ : ” ..-. : ,. _ . LOCAL INITLATIVES SUPPORT CORP SUITE 1010 450 B ST SAN DIEGO CA 92101 COMMUNITY RESOURCE CENTER PO BOX 952 ENCINITAS CA 92024 EYE COUNSELI-NG AND CRISIS SERVICES 200 N ASH ST ESCONDIDO CA 92027 SAN DIEGO URBAN LEAGUE 4261 MARKET ST SAN DIEGO CA 92102 ST VINCENT DE PAUL VILLAGE 3350 E ST SAN DIEGO CA 92101 VOLUNTEERS OF AMERICA 1111 ISLAND SANDIEGO CA 92101 YMCA 2 15 BARNES ST OCEANSIDE CA 92054 CRISIS HOUSE & FAMILY SHELTER 1034 N MAGNOLIA EL CAJON CA 92020 SD ECUMENICAL COUNCIL 1880 3RD AV SAN DIEGO CA 92101 CARLSBAD FAMILY HOUSING SUITE 1070 600 W BROADWAY SANDIEGO CA 92101 ,,..‘ , )_ * CENTER FOR COlWM SOLUTIONS 4508 MISSION BAY DR SAN DIEGO CA 92 lo9 COMM RESOURCE SOCIAL SERVICE 650 2ND ST ENCINITAS CA 92024 N COUNTY INTERFAITH COUNCIL . 430 N ROSE ESCONDIDO CA 92027 SD YOUTH & COMMUNITY SERVICES SUITE 550 3255 WING ST SAN DIEGO CA 921 lo THE SALVATION ARMY 730 F ST SANDIEGO CA 92101 WSD 4141 PACIFIC HWY SAN DIEGO CA 92110 YWCA PO BOX 126398 SAN DIEGO CA 92112 EPISCOPAL COMMUNITY SERVICES PO BOX 33165 SANDIEGO CA 92163 SECOND CHANCE SUITE 1 1335 J ST SANDIEGO CA 92101 UNITED WAY 4699 MURPHY CANYON RD SAN DIEGO CA 92 123 - .I ‘.. .?‘.,,.. .,,.. -. .;,.;-. _1 .,, *_ HARVEST FOR THE HUNGRY 4602 CHICKSAW CT SAN DIEGO CA 92117 CATHOLIC CHARITIES 349 CEDAR ST SANDIEGO CA 92101 COMM RESEARCH FOUNDATION 1735 S TREMONT ST OCEANSIDE CA 92054 SD FRIENDS OF LEGAL AIDE SUITE 3 10 303 A ST SANDIEGO CA 92121 ALLIANCE FOR AFRICAN ASSIST 3 148 UNIVERSITY AV SAN DIEGO CA 92104 INTERFAITH HOUSING FOUNDATION 2130 4TH AV SAN DIEGO CA 92101 AFFORDABLE HOUSING PEOPLE SUITE 159 7720 B EL CAMINO REAL CARLSBAD CA 92009 HABITAT FOR HUMANITY 3 562 GROVE ST LEMON GROVE CA 9 1945 LUTHERAN SOCLAL SERVICES 31014TI-I AV SAN DIEGO CA 92103 GOOD NEIGHBOR COMM BUILDERS 461 NIAD ENCTNITAS CA 92024 . . .,..I ; .’ ,: ,. -.:. . .: BROTHER BENNOS FOUNDATION 3260 PRODUCTION AV OCEANSIDE CA 92054 SHELTER PARTNERSHIP SUITE 616 523 W 6TH ST LOS ANGELES CA 90014 N COASTAL SERVICE CENTER SUITE A 125 S TREMONT ST OCEANSIDE CA 92054 LEAGUE OF WOMEN VOTERS UNIT B 749 MAGNOLIA AV CARLSBAD CA 92008 SD NEIGHBORHOOD HOUSING SVC SUITE B 3902 EL CAJON Bi SAN DIEGO CA 92105 SAN DIEGO URBAN LEAGUE 4261 MARKET ST SAN DIEGO CA 92102 INDIAN HUMAN RESOURCES CENTER SUITE A 4040 30TH ST SAN DIEGO CA 92104 NATIONAL LOW INCOME HSG COAL ROOM 1200 1012 14TH NW WASHINGTON DC 20005 CALIF BLACK HEALTH NETWORK SUITE 103 7840 MISSION CENTER CT SAN DIEGO CA 92108 REACH PO BOX 2913 ESCONDIDO CA 92033 -,,._ ; .I -. : .‘. : . ‘_ - ALPHA PROJECT 299 17TH ST SAN DIEGO CA 92101 MITE 5 14 N COAST HWY OCEANSIDE CA 92054 LIFELINE COMM SERVICES 200 JEFFERSON ST VISTA CA 92084 INTERFAITH SHELTER NETWORK SUITE 12 1880 3RD AV SANDIEGO CA 92101 HOME SHARE CONNECTION 4069 30TH ST SANDIEGO CA 92104 S CALIF HOUSING DEV CORF SUITE A 4322 PIEDMONT DR SAN DIEGO CA 92 107 NEIGHBORHOOD HOUSE 3043 4TH AV SANDIEGO CA 92103 PRICE CHARITIES SUITE 520 7979 IVANHOE AV LA JOLLA CA 92037 NATL ASSOC OF SOCIAL WORKERS 3060 53RD ST SAN DIEGO CA 92105 NCLRMAAC 1770 4TH AV SANDIEGO CA 92101 .-. . ” : ,I .’ , %:.. * , ,,‘, AFFORDABLE HOUSING APPL g-m-E 101 ,620 CHESAPEAKE DR SAN DIEGO CA 92 123 -- INTERFAITH HOUSlNG FOUNDATION 2 130 4TH AV SAN DIEGO CA 92101-2110 -AIR HOUSING COUNCIL OF SD 3un-E 1114 625 BROADWAY SANDIEGO CA 92101 ACCION SAN DIEGO 1 OTH FLOOR 1250 6TH AV SAN DIEGO CA 92101-4313 ACCESS CENTER OF SD 3736 ALABAMA ST SAN DIEGO CA BIG SISTER LEAGUE, JNC 115 REDWOOD ST SAN DIEGO CA 92103 LEGAL AID SOCIETY OF SAN DIEGO 110 S EUCLID AV SAN DIEGO CA 92114 SD VETERAN SERVICES CENTER SUITE 106 135 W MISSION AV ESCONDIDO CA 92025 CUATRO CORPORATION 1770 4TH AV SANDIEGO CA 92101 SD APARTMENT ASSOC SUITE 10 37 10 HILLTOP DR LEMON GROVE CA 91945 BRIDGE HOUSING GROUP SUITE 400 1 HAWTHORNE ST SAN FRANCISCO CA 94105 HUMAN RELATIONS COMM SUITE 916 1200 3RD AV SAN DIEGO CA 92101 RIENDS OF IMMIGRANT WORKERS 530 JEEEZ CT CARLSBAD CA 92009 BARRIO ASSOCIATION 1611 JAMES DR CARLSBAD CA 92008 SAFE HARBOR 3 874 RIVIERA DR SAN DIEGO CA 92019 CALIF RURAL LEGAL ASSIST 216 S TREMONT ST OCEANSIDE CA 92054 FRATERNITY HOUSE 20702 ELFIN FOREST RD ESCONDIDO CA 92029 NORTH COAST HOUSING PO BOX 343 CARDIFF CA 92007 COMUN-ITY RESOURCE GROUP 5228 QUBMADO CT SAN DIEGO CA 92124 CHICANO FEDERATION 61022NDST SAN DIEGO CA 92102 NORTH COUNTY CHAFLAINCY 2020 CHESTNUT AV CARLSBAD CA 92008 IXWEXMS RESOURCES 7611 PRIMAVERA WY CARLSBAD CA 92009 ASSOC FOR COM HOUSING SOL PO BOX 3625 SAN DIEGO CA 92 163 PACIFIC HOUSING SOLUTIONS 2216 EDINBURG CARDIFF BY THE SEA CA 92007 PATHFINDERS OF SD INC 3806 GRIM AV SAN DIEGO CA 92104 AFFIRMED HOUSMG GROUT-’ SUITE 208 200 E WASHINGTON ST ESCON-DID CA 92025 FOUNDATION FOR CHANGE 2 166 B AVENIDA DE LA PLAYA LA JOLLA CA 92037 LABOR COMM SERVICE AG SUITE 200 26 15 CAMINO DEL RIO S SAN DIEGO CA 92 108 STEPPING STONE 3425 ST’ AV SAN DIEGO CA 92 103 FANNIE MAE 135 N LOS ROBLES AV PASADENA CA 91101-1707 . . ,I. . i . . . . ,.‘,. . -.-;y ‘;. , : ., . . 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SCHOOL OF PUBLIC ADMIN AND ;rRBAN STUDIES <DSU 3AN DIEGO CA 92 182-4505 3TANDARDPACIFIC ,335 CHESAPEAKE DR <AN DIEGO CA 92123-1010 GREYSTONE HOMES SUITE 300 5780 FLEET ST CARLSBAD CA 92008 SENCHMARK PACIFIC ~ BROOKFIELD HOMES ;TE 210 SUITE 200 0.55 AVENIDA ENCINAS 12865 POINTE DEL MAR :ARLSBAD CA 92008 DEL MAR CA 92014 ,EN-NAR HOMES UITE 320 780 FLEET ST ‘ARLSBAD CA 92008 CATELLUS RESIDENTIAL GROUP SUITE 400 5 PARK PLAZA IRVINE CA 92614 -, -. .,’ ., .. 1. ‘,” .’ ,. :I:,, ..A. : . ,’ ,,. r , ,. ’ ._‘. , ., , . . . _‘I’, .) ‘,’ - HOUSING DEPARTMENT ZOUNTY OF SAN DIEGO 5201 RUFFM RD SAN DIEGO CA 92123 HOUSING DEPARTMENT CITY OF VISTA PO BOX 1988 VISTA CA 92085 SAN DIEGUITO UNION HS DISTRICT 7 10 ENCINITAS BL ENCINITAS CA 92024 VILLAGE MERCHANTS ASSOC PO BOX 1247 CARLSBAD CA 92018 SUSAN BALDWIN SANDAG SUITE 800 401 BST SAN DIEGO CA 92101-4231 CITY OF CARLSBAD MUNICIPAL WATER DISTRICT CONTINUING LIFE COMMUNITIES 800 MORNINGSIDE DR FULLERTON CA 92835 ;B A WORTHING INC iP0 BOX 1041 CARLSBAD CA 92018 SHEA HOMES SUITE 200 10721 TREENA ST SAN DIEGO CA 9213 1 TOLL BROTHERS MC SUITE 180 2100 ORANGEWOOD AV ORANGE CA 92868 , . : - _: i , ., .‘,, ‘. ; . .‘ X’ -- _ , ‘,’ i + , : ‘. _’ .,’ COLRICH CONSRUCTION SUITE 200 1141 JUTLAND DR \ SAN DIEGO CA 92 117 U.D.C. HOMES SUITE 112B 438 CAMMO DEL RIO S SAN DIEGO CA 92108 WESTERN PACIFIC HOUSING SUITE 107 2385 CAMMO VIDA ROBLE CARLSBAD CA 92009 MITCHELL DEVELOPMENT SUITE 102 3 1225 LA BAYA DR WESTLAKE VILLAGE CA 9 1362 ALAMITOS BUILDING SUITE 250 3020 OLD RANCH PWY SEAL BEACH CA 90740 CENTEX HOMES SUITE 250 5962 LA PLACE CT CARLSBAD CA 92008 INRG ENERGY INC. 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