HomeMy WebLinkAbout2000-04-18; City Council; 15702; Affordable Housing CreditsAB# 1s: 702
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DEPT. H/RED
CITY OF CARLSBAD -AGENDA BILL
TITLE. APPLICATION TO PURCHASE AFFORDABLE
-’ HOUSING CREDITS IN THE VILLA LOMA
HOUSING PROJECT FOR THE STEINER
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PROJECT CITY MGR.
RECOMMENDED ACTION:
ADOPT Council Resolution No. ZOOO- 122, APPROVING a request by Western Pacific Housing-El Camino, LLC, to purchase 1.6 Affordable Housing Credits in the Villa Loma combined housing project in
order to satisfy the affordable housing obligation of the Steiner project under the City’s lnclusionary Housing Ordinance.
ITEM EXPLANATION:
The Steiner project is a 9 lot/unit single-family residential subdivision on a vacant parcel on the north side
of Poinsettia Lane, 200 feet west of El Camino Real, and east of the proposed Skimmer Lane which is in the Lohf subdivision, and within the Southwest Quadrant of the City. The tentative map and site
development plan were approved by the Planning Commission on January 5, 2000. The applicant is requesting to purchase affordable housing credits in the Villa Loma Project to satisfy the project’s 1.6 unit
inclusionary housing obligation. The City Council is the approval body for the purchase of affordable
housing credits.
Per the Planning Commission approval, the Steiner project has two potential options for satisfying the
inclusionary housing obligation. The project may construct on-site affordable units or purchase housing
credits. The project is a small subdivision both in terms of the number of units (9) and net developable
area (3 acres). Due to the relatively small size of the project and the open space requirements, it would be
difficult to physically and financially integrate the required affordable housing units within the market rate
subdivision. Therefore, the developer has submitted a request to purchase housing credits from the City
of Carlsbad.
The City Council has adopted Policies 57 & 58 that govern the sale of affordable housing credits. The
policies examine the feasibility of an on-site proposal, the advantages and disadvantages of an off-site
proposal, and whether the off-site project advances the City’s housing goals and strategies. In reviewing
the applicants request, the Affordable Housing Policy Team (staff) has utilized the criteria contained in the
noted policies and has made a recommendation to the City Council to approve the purchase of the
credits.
FISCAL IMPACT:
The Affordable Housing Credit is currently $36,000 per unit. The purchase of 1.6 credits will result in a
payment of $57,600 to the City’s Housing Trust Fund.
EXHIBITS:
1. City Council Resolution No. 3 0 0 0 - 17 2
2. Draft Affordable Housing Agreement 3. Villa Loma Affordable Housing Credit Balance
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RESOLUTIONNO. 2000-172
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING A REQUEST BY
WESTERN PACIFIC HOUSING-CARLSBAD 1, LLC, A
DELAWARE LIMITED LIABILITY COMPANY TO
PURCHASE 1.6 AFFORDABLE HOUSING CREDITS IN THE
VILLA LOMA HOUSING PROJECT IN ORDER TO SATISFY
THE AFFORDABLE HOUSING OBLIGATION OF THE
STEINER PROJECT UNDER THE CITY’S INCLUSIONARY
HOUSING ORDINANCE.
APPLICANT: WESTERN PACIFIC HOUSING-CARLSBAD
1, LLC
CASE NO: CT 99-13
WHEREAS,. Western Pacific Housing-Carlsbad 1, LLC has received approval of
Tentative Map CT 99- 13 for the development of a 9 unit residential development; and
WHEREAS, Western Pacific Housing-Carlsbad 1, LLC has requested approval from
the City of Carlsbad City Council for the purchase of 1.6 affordable housing credits in the
Villa Loma housing project to satisfy the inclusionary housing requirement of Tentative Map
CT 99-13; and
WHEREAS, the City Council did hold a public meeting to consider said request for the
purchase of Affordable Housing Credits by Western Pacific Housing-Carlsbad 1, LLC; and
WHEREAS, at said public meeting, upon hearing and considering all testimony, if any,
of all persons desiring to be heard, said Council considered all factors relating to the
application and request to purchase Affordable Housing Credits:
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. The project is consistent with the goals and objectives of the City of Carlsbad’s
Housing Element, the Inclusionary Housing Ordinance, and the Carlsbad General
Plan.
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3. Based upon the analysis contained within the City Council Staff Report dated April
18, 2000, the City Council finds that the off-site satisfaction of the inclusionary
housing requirement is in the public interest.
4. That based on the information provided within the City Council Staff Report and
testimony presented during the public meeting of the City Council, the City Council
hereby APPROVES a request by Western Pacific Housing-Carlsbad 1, LLC to
purchase 1.6 affordable housing credits in the Villa Loma housing project in order
to satisfy the affordable housing obligation of the Steiner project under the city’s
inclusionary housing ordinance.
5. That the City Council hereby authorizes the Community Development Director to
execute the Affordable Housing Agreement in substantially the form presented to
the City Council as Exhibit 2 of the City Council Staff Report and to execute such
other documents, or take other actions as may be necessary or appropriate to assist
the developer in acquiring the Affordable Housing Credits.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council
of the City of Carlsbad, California, held on the .l&h day of Anril ,200O by the following vote,
to wit:
AYES: Council Members Lewis, Hall, Finnila, Nygaard and Kulchin
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
m M. WOOD, City Clerk
(SE4
CC RESO # 2000-122
PAGE 2
3
Exhibit 2:: li
RECORDING REQUESTED BY:
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad City Clerk’s Office
Attn: Citv Clerk
1200 Carlsbad Village Drive
Carlsbad, California 92008
(Space above for Recorder’s Use)
THIS AFFORDABLE HCWSING &XEEMENT (“&reoroent”) is entered into this day of
, 2W4, by amI %&ween the CITY OF CA.RL§BAD, a mun&cipS corporation (hereinafter
referred to as the “City”), and Westem Pacific Ho*usiag-Carlsbad 1, LLC (hereinafter referred to as
the “Developer”), is made with reference to the following:
A. Develuper is the owner of certain real property in the City of Carlsbad, Csunty of San
Diego, State of California, described in “Attachment A”, which is attaehed hereto and incorporated
herein by this reference, and which is the subject of a Tentative Map (CT 9%13), which provides conditional approval of the construction of 9 single family dwelling (“Project”).
B. Chapter 21.85 of the Carlsbad Municipal Code requires that this Affdble Housing
Agreement shall be entered into between the City and the Developer as a means of satisfying the Developers’ affordable housing obligation (“Affordable Housing Obligation”)~ as such is defined under
Chapter 2 1.85 of the Carl&ad Municipal Code. The Affordable Housing Obligafsion for this project is
determined to be one and six tenths (2.6) units and will be satisfied by applying the requirements set
forth in this Agreement.
NOW, THEREFORE, ineorporatig the foregoing Recitals and in consideration of the mutual
covenants contained herein, the parties agree as foRows:
1. THERECITALSARETRUEAJW~
2. SATISFACTION OF AFFORDABLE HOUSING REOUIREMENTS THROUGH THE
PAYMENT OF AFFORDABLE HOUSING CREDITS.
(a) Performance under this Agreement satisfies the Developers’ obligation for affordable
housing under Chapter 2 1.85 of the Carlsbad Municipal Code as applied to the land covered by Carlsbad
Tract No. 99- 13 by reason of the approvals of the Tentative Map of CT 99- 13, and any other applicable
approval.
(b) The Developer shall pay for one and six tenths (1.6) Affordable Housing Credits as established by the City and as required by Condition No. 13 of Planning Commission Resolution No.
4702. The fee shall be paid prior to the Developer receiving a building permit for the project.
04/04/00
3. REMEDIES
Failure by the Developer to perform in accordance with this Agreement will constitute failure to
satisfy the requirements of Chapter 21.85 of the Carlsbad Municipal Code and Condition No. 13 of
Planning Commission Resolution No. 4702. Such failure will allow the City to exercise any and all
remedies available to it including but not limited to withholding the issuance of building permits for the lots shown on Carlsbad Tract No. 99- 13.
4. HOLD HARMLESS
Developer will indemnify and hold harmless (without limit as to amount) City and its elected
officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as
“Indemnitees”), and any of them, from and a t all loss, all risk of loss and all damage (including
expense) sustained or incurred because of or by reason of an3 r& aR claims, demands suits, actions,
obtained, allegedly caused by, arising out of or retaining in any manner to Developer’s actions or
defaults pursuant to this Agreement, and shall protect and defend b&&m&es, and any of them with
respect thereto.
5.
All notices r@q&cd pt@@uant to this Agreement shall be in writing sad may be #ken by personal
delivery or by ed or certified mail, return receipt requested to the party to r&-&e such notice at
the address set fur& betow:
TO THE CITY:
City ofCa&sbad
Housing and Redevelopment Department
Attn: Ho&ng 6% Redevekpment Director
2965 Roosevelt Street, Suite B
Carlsbad, Chlifc.mk 93008-2389
TO THE DEVEL@%R;
Western Pacific Housing-Gark&%d 1, LLC
c/o Western Pacific Housing
5790 Fleet St. #220
Carlsbad, CA 92008
Any party may change the address to which notices are to be sent by notifying the other parties of the
new address, in the manner set forth above.
6. ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto.
7. DURATION OF AGREEMENT
This Agreement shall terminate and become null and void upon the payment of the Affordable
Housing Credits, or the repeal, termination, or modification of any applicable ordinance which act would
render the Affordable Housing Obligation unnecessary or unenforceable.
04/04/00
8. SUCCESSORS
This Agreement shall benefit and bind the Developer and any successive owners of Affordable Housing Lots.
9. SEVEXABILITY
In the event any provision contained in this Agreement is to be held invalid, void or
unenforceable by any court of competent jurisdiction, the remaining provisions of this Agreement shall
nevertheless, be and remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the
day and year first above written.
DEVELOPER CITY
Western Pacific HousiqpC&&ad 1, LLC City of Carl&ad, a municipal corporation
By: By:
(NnW MARTlNom~ Community Development Director
By:
(Title)
APPROVED AS TO FORIvl:
. RONALD R. BALL
CITY ATTORNEY
04/04/00
04/04/00
ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
From: Debra Doerfler
To: Craig Ruiz
Date: 6/20/01 9:06AM
Subject: Spectrum Comminities Affordable Housing Agreements
Craig,
On April 18, 2000 Council approved resolutions 2000-I 20, 2000-I 21, 200-l 22 which authorized the
execution of 3 affordable housing agreements. It has now been over a year since Council action on these
items took place.
Our office requires the original finalized agreements with the legal description of the subject properties;
these documents need to be properly,executed by the contractor gnd forwarded to our offices.
Please advise the current status of these 3 items. Thanks!
Debra
cc: Debbie Fountain; Lorraine Wood
WRITE IT - DON’T SAY
Date June 30 k!.k 2000
TO File 0 Reply Wanted
From Debra ONo Reply Necessary
6/30/00 Called Craig Ruiz in Hsg & Redev - 2817 & left a message on his voice
mail requesting an update as to the status of the AFFORDABLE HOUSING AGREEMENTS
w/ LEGAL DESCRIPTION OF SUBJECT PROPERTY. .
These 3 items (!-$, ;, , 1 i%, from the 4/18/00 Council meeting have not yet resolved.
Debra /c&L
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