HomeMy WebLinkAbout2003-02-04; City Council; 17060; Initial Affordable Housing Agmt for Bressi Ranch4B# 17,060
VITG. 2-4-03
DEPT. H/RED
CITY OF CARLSBAD - AGENDA BILL
TITLE: DEPT. HD. & %f-
INITIAL AFFORDABLE HOUSING AGREEMENT FOR CITY ATTY. @ BRESSI RANCH MASTER PLAN
CITY MGR.
RECOMMENDED ACTION:
That the City Council ADOPT Resolution No. 2003-031, to APPROVE an initial Affordable Housing
Agreement for the construction of 100 Affordable For-Sale Condominium Units in Planning Area 15 to
satisfy the lnclusionary Housing and Density Bonus requirements for the Bressi Ranch Master Plan.
ITEM EXPLANATION:
The City Council has previously approved the Bressi Ranch Master Plan (MP 178). The Plan allows
for the development of a total of 623 residential units as well as commercial and industrial projects. To
satisfy the inclusionary housing and density bonus requirements for the Master Plan, a 100 unit
affordable for-sale condominium project within Planning Area 15 is proposed. Prior to any final map
for the development of Bressi Ranch, the master developer is required to enter into an Affordable
Housing Agreement and have an approved Site Development Plan for the proposed affordable project.
At this time, the master developer does not have an approved SDP for the affordable project.
However, the developer is requesting approval of an initial affordable housing agreement (without the
SDP) to allow the Master Tentative Map for Bressi Ranch to obtain final map approval.
The lnclusionary Housing Ordinance authorizes the Community Development Director to execute all
affordable housing agreements as long as they meet the requirements of the Ordinance. Bressi
Ranch is requesting approval of an Affordable Housing Agreement without the required SDP approval
which is not consistent with the lnclusionary Housing Ordinance. Therefore, staff has indicated to the
master developer that the City Council must approve the requested exception to allow a final map
approval with the execution and approval of an initial affordable housing agreement which does not
include the required SDP.
Site Development Plan for Bressi Ranch Affordable Units
As noted above, an approved Site Development Plan (SDP) must be submitted by the Master
Developer together with the executed Affordable Housing Agreement in order to proceed with project
approvals, specifically final map approvals as noted above. This is required because the SDP
provides the details of the Affordable Housing Project as related to unit floor plans, bedroom size,
design, parking, etc. The SDP becomes an exhibit to the Affordable Housing Agreement and indicates
that the Developer is able to clearly accommodate the affordable housing requirement.
The developer (Bressi Ranch Venturedlennar) has not yet submitted an application for the required
SDP for the.proposed affordable housing project. However, staff has reviewed an initial plan for the
proposed project and the developer has indicated that they will soon be prepared to submit an
application for the SDP. Because the processing of the SDP is not yet complete, but Bressi has a
need to move forward to final the Master Tentative Map for the Bressi Ranch development, the
developer is requesting an exception to the requirement for the approved SDP and approval of an
initial affordable housing agreement. With approval of the initial Affordable Housing Agreement, the
developer agrees to provide the approved SDP prior to the first final map approval for any subdivision
of a residential planning area into individual lots.
Page 2 of AB ## 17.060
Although staff does not generally support approval of an Affordable Housing Agreement without the
required SDP, Staff is supporting the exception requested by Bressi to allow for the timely grading and
ultimate construction of Poinsettia Lane. Due to the substantial benefit derived to the City of Carlsbad
and the region through the timely construction of Poinsettia Lane, staff believes it would be appropriate
to allow for the exception and approve an initial Affordable Housing Agreement that will be amended at
a later date upon approval of the required SDP. This exception was provided to the Villages of La
Costa development as well to allow for the timely construction of its share of Poinsettia Lane.
Affordable Housinu Aureement for Bressi Ranch Affordable Units
The initial Affordable Housing Agreement drafted by staff will allow for the developer to final their
Master Tentative Map, which will allow them to obtain an early grading permit with prior approval of the
Community Development Director] Planning Director and City Engineer. This will allow for a more
timely completion of Poinsettia Lane which provides a benefit to the City of Carlsbad and the region.
Staff is recommending approval of the initial Affordable Housing Agreement by the City Council
because it will allow for subdivision of the Bressi Ranch into 15 planning areas, but it will not allow the
developer to further subdivide into individual residential lots or obtain any building permits for
residential construction until the SDP for the affordable units is approved.
Terms of the Initial Affordable Housinu Aureement
Following is a summary of the general terms of the initial Affordable Housing Agreement for Bressi
Ranch:
Exception granted to requirement for approved Site Development Plan.
The initial Agreement must be executed and recorded with Final Map for Master Tentative.
The initial Agreement allows for no release of building permits for the construction of market
rate or the affordable units.
With approval of an amended Agreement and a SDP, developer can final maps for individual
residential lots. The developer may then start receiving a release of building permits for market
rate units based on the successful completion of various tasks related to the construction of the
affordable housing units.
The initial Agreement allows the developer to sell or transfer the Master Development; but it
does not allow for the sale or transfer of individual residential Planning Areas or lots until the
SDP is approved and the amended Agreement has been executed.
ENVIRONMENTAL REVIEW:
An Environmental Impact Report was certified by the City Council for the entire Master Plan on July 9,
2002 (EIR 98-04). No further environmental review is required as part of the approval of the
Affordable Housing Agreement
FISCAL IMPACT:
No fiscal impact is anticipated as a result of approval of the initial Affordable Housing Agreement with
Bressi Ranch.
EXHIBITS:
1. City Council Resolution No. / approving Affordable Housing Agreement for Bressi Ranch
2. Location Map
3. Initial Affordable Housing Agreement between City and Bressi Ranch Ventures
2003-031
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CITY COUNCIL RESOLUTION NO. 2003-031
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, TO APPROVE AN INITIAL
AFFORDABLE HOUSING AGREEMENT FOR THE
CONSTRUCTION OF 100 AFFORDABLE CONDOMINIUM
UNlTS IN PLANNING AREA 15 TO SATISFY THE
INCLUSIONARY HOUSING REQUIREMENTS OF THE
BRESSI RANCH MASTER PLAN
APPLICANT: BRESSI RANCH VENTURE, L.L.C
CASE NO: MP 178EIR 98-04
WHEREAS, Bressi Ranch Venture, L.L.C, is the developer of the Bressi Ranch Master Plan,
and;
WHEREAS, the developer has received approvals to develop 623 total residential units within
the Bressi Ranch Master Plan development; and
WHEREAS, the development of 623 residential units will require the development of 100
residential units affordable to low income households as required by Carlsbad Municipal Code
Chapter 21.85 of the City’s Inclusionary Housing Ordinance; and
WHEREAS, Carlsbad Municipal Code Chapter 21.85 requires the developer of a
residential development to receive approval of an Affordable Housing Agreement which details how
the requirements of the Inclusionary Housing Ordinance shall be met; and
WHEREAS, the developer has not yet processed a Site Development Plan but proposes to
construct 100 for-sale condominium units affordable to lower income households as a means to satisfy
their affordable housing requirement as permitted by Carlsbad Municipal Code Section 21.85 of the
City’s Inclusionary Housing Ordinance; and
WHEREAS, the developer has requested approval of an initial Affordable Housing
Agreement and agreed to amend said Agreement at a later date upon approval of the required Site
Development Plan for the affordable units; and
/Ill
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CC Reso. No. 2003-031
Page 2
WHEREAS, an exception to the Inclusionary Housing Ordinance has been requested by
Developer to allow for approval of an initial Affordable Housing Agreement prior to approval of the
required Site Development Plan; and
WHEREAS, the City Council did hold a public meeting to consider the developer’s request to
approve the initial Affordable Housing Agreement without the required Site Development Plan; 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 request for approval of
the initial Affordable Housing Agreement for the Bressi Ranch Master Plan.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
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The above recitations are true and correct.
Approval of the initial Affordable Housing Agreement between the City and Bressi
Ranch 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 in that it sets forth the affordable housing requirements for the Bressi
Ranch Master Plan.
The proposed project will provide a total of 100 condominium units which will be
sold at levels affordable to low income households. The project, therefore, has the
ability to effectively serve the City’s housing needs and priorities as expressed in the
Housing Element and the Consolidated Plan.
That based on the information provided within the City Council Staff Report and the
testimony presented during the public meeting of the City Council , the City Council
hereby APPROVES the initial Affordable Housing Agreement as recommended by
staff to allow for the development of a 100 unit for-sale condominium project within
the Bressi Ranch Master Plan to satisfy the developer’s obligation under the City’s
Inclusionary Housing Ordinance.
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CC RESO. NO. 2003-031
PAGE 3
5. That the City Council authorizes the Community Development Director to execute the
initial Affordable Housing Agreement in substantially the form presented to City
Council and attached hereto, subject to review and final approval by the City Attorney.
6. That the City Council authorizes the Community Development Director to execute
subsequent amendments to the Affordable Housing Agreement if they are consistent
with the Inclusionary Housing Ordinance, and subject to review and final approval by
the City Attorney.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad, California, held on the 4th day of L, 2003, by the
FEBRUARY
following vote, to wit:
AYES: Council Members Lewis, Finnila, Kulchin, Hall, Packard
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
EXHIBIT 2
and density bonus conditions for the Master Development by constructing, or causing to be
constructed, a minimum of 100 for sale condominium units in Planning Area 15 of the Master
Plan.
D. Developer is required by the Conditions of Approval to enter into an Affordable
Housing Agreement as required and with the content specified by the City's Inclusionary
Housing Ordinance, Carlsbad Municipal Code ("CMC") Chapter 21.85). Pursuant to Section
21.85.140 of CMC Chapter 21.85, the Agreement shall be executed and recorded prior to the
approval of any final map for the subject property.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. Satisfaction of Affordable Housing Obligation and Conditions of Auproval. Per
the City's Inclusionary Housing Ordinance, an Affordable Housing Agreement together with an
approved Site Development Plan is required to be approved and executed prior to the first final
map and recorded upon first final map recordation for any residential development, including a
final map for a Master Tentative Map. For the Master Development, an exception to this
requirement will be granted due to the substantial benefit derived to the City of Carlsbad and the
region through the timely grading and ultimate construction of Poinsettia Lane, and Master
Developer will be permitted to final the Master Tentative Map (the "A" Map) which includes
the creation of fifteen individual planning areas with the approval of this initial Affordable
Housing Agreement prior to an approved Site Development Plan
2. Terms Governing Provision of Affordable Units.
2.1. Obligation to Provide Affordable Units.
2.1.1. Developer shall provide the One Hundred (100) Affordable Units
in relation to the Market Units on the Subject Property. It is anticipated that the Affordable Units
shall include two (2) and three (3) bedroom units. The numbers and square footage of the
Affordable Units shall be indicated in the amended Affordable Housing Agreement and set forth
on the approved Site Development Plan to be processed at a later date. Not less than ten percent
(10%) of all Affordable Multifamily Units shall be three (3) bedroom units in compliance with
CMC 21.85.010(A)(2). The maximum allowable income level of buyers of the affordable units
shall be restricted to a maximum of 80% of the area median income.
2.2 Schedule for Developing Affordable Units. Developer shall provide the
Affordable Multifamily Units pursuant to the following schedule and as described in
Attachment B.
2.2.1. Prior to the approval of any final map for the Master Tentative
Map, for the Master Development, this initial Agreement shall be duly approved and executed.
LENNARBRESSI RANCH INITIAL AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY
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The Agreement shall be recorded with recordation of the final map for the Master Tentative
Map. This initial agreement shall allow for no release of building permits for construction of the
subject market rate or affordable housing units within the Master Development.
2.2.2. With approval of a Site Development Plan for the 100 Affordable
Units and approval, execution and recordation of an amended Affordable Housing Agreement,
Developer may final maps for individual residential lots within the Master Development. The
subsequent release of building permits for construction of market rate and/or affordable housing
units on the individually subdivided residential lots shall be as set forth in Sections 2.2.3 and
2.2.4 of this Agreement.
2.2.3 Upon satisfying the applicable conditions stated in Sections 2.2.1
and 2.2.2 building permits can be released for a total of Two Hundred and One (201) Market
Rate Units and for the One Hundred (100) Affordable Units.
2.2.4 Once the building permits have been released and the foundations
for the 100 Affordable Units are complete, inspected and approved, an additional One Hundred
Sixty-Two (162) building permits for Market Rate Units shall be released at Developer's
request.
2.2.5 Once the final Certificate of Occupancy is issued for the last of the
100 Affordable Units to be constructed (e.g., the 100th unit), the building permits for the
remaining One Hundred and Sixty (160) Market Rate Units shall be released at Developer's
request.
2.3 Terms for Sale of Affordable Units.
2.3.1. The Schedule of Maximum Eligible Buyer Incomes and
Affordable Subsidized Purchase Prices (the "Schedule") attached hereto and incorporated herein
as Attachment C sets forth the City's requirements for determining the maximum household
income of buyers of the Affordable Units ("Eligible Buyers") and the methodology for
calculation of the subsidized purchase prices of Affordable Units which will be affordable to
each of the Eligible Buyers (the "Affordable Purchase Prices"). The initial estimates of Eligible
Buyer actual incomes and the corresponding Affordable Purchase Prices will be set forth in the
first addendum to this Agreement following approval of the related Site Development Plan for
the Affordable Housing Project. The Final Schedule shall be established prior to sale based on
the San Diego County Area Median Income and the cost factors applicable at the time. The
Final Schedule shall be submitted by the Developer and approved by the City's Housing and
Redevelopment Director prior to the marketing of the Affordable Units.
LENNAR/BRESSI RANCH
INITIAL AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY
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2.3.2. The Developer shall sell the Affordable Units only to Eligible
Buyers whose household incomes have been verified by the Developer. The purchase price for
an Affordable Unit (the "Market Purchase Price") shall be the market price charged for a
comparable unit (and not to exceed fair market value); provided, however, that the Developer
shall carry back financing (the "Carryback Financing") equal to the difference between the
Market Purchase Price and the Affordable Purchase Price for the particular Eligible Buyer (the
"Primary Affordability Subsidy"). The Carryback Financing shall be assigned by the Developer
to the City and shall be evidenced by a promissory note from the Eligible Buyer to the City,
secured by a second mortgage deed of trust on the Affordable Unit (the "City Second
Mortgage"). The balance of the Market Purchase Price shall be paid by the Eligible Buyer to the
Developer in cash, utilizing down payment monies and first mortgage proceeds.
2.4 Terms for Resale of Affordable Units. After the initial sale of the Affordable
Units at a price affordable to the target income level group, the Affordable Units shall remain
affordable to subsequent low income eligible buyers pursuant to a resale restriction for a
minimum term of fifteen (15) years. Beginning sixteen (16) years after the initial purchase of an
Affordable Unit, the Affordable 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 Affordable Unit equal to the amount of subsidy necessary to make the
Affordable 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 affordable prices, or to provide for the construction of additional
affordable housing units within Carlsbad. 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.
3. City Approval of Documents.
3.1. Acceptable Documents. The following documents, in form and substance
acceptable to the City, shall be used in connection with the sale of Affordable Units. A draft of
the documents to be prepared by the Developer shall be submitted to the Housing and
Redevelopment Director for review and approval no later than thirty (30) days prior to start of
construction of the Affordable units. Final documents shall be submitted to the Housing and
Redevelopment Director for review and approval no later than sixty (60) days after the start of
construction of the Affordable Units.
3.1.1. A marketing plan establishing the process for seeking, selecting
and determining the eligibility of buyers of the Affordable Units shall be prepared by the
Developer.
3.1.2. An educational program informing Affordable Unit purchasers of
the obligations of home ownership and the specific features of this program shall be prepared by
the Developer.
LENNAR/BRESSI RANCH INITIAL AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY
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3.1.3. Purchase and Sale Agreements for sale of the Affordable Units
shall be prepared by the Developer.
3.1.4. City Second Mortgage promissory note, deed of trust, and
borrower disclosure form shall be provided by the City.
3.2 Any of the documents identified in this section 3.1 may be revised by
Developer from time to time with the prior written approval of the Housing and Redevelopment
Director.
4. Mortgage Credit Certificate Program. Buyers of the Affordable Units may
qualify for income tax credits pursuant to Mortgage Credit Certificate (MCC) Program, for a
portion of the annual interest paid on a first mortgage used to acquire the Affordable Unit. City
shall cooperate with Developer in obtaining and providing to prospective buyers Mortgage
Credit Certificates from allocations that it may receive.
5. Reporting - and Compliance Monitoring. A report verifying compliance with the
requirements of this Agreement covering the initial sales of the Affordable Units shall be
provided to the City by the Developer and approved by the Housing and Redevelopment
Director. Developer shall provide the City with other reports as reasonably required by the City
to verify compliance with this Agreement.
6. Default. Failure of the Developer to cure any default in the Developer's
obligations under the terms of this Agreement within (90) days after the delivery of a notice of
default from the City (or where the default is of the nature which cannot be cured within such
ninety (90) period, the failure of the Developer to commence to cure such default within the
ninety (90) day period or the Developer's failure to proceed diligently to complete the cure of
such a default within a reasonable time period but in no event not greater than 180 days) will
constitute a failure to satisfy the Conditions of Approval with respect to the Subject Property and
the requirements of Chapter 21.85 of the Carlsbad Municipal Code and void the approval of the
Final Map and Site Development Plan; and the City may exercise any and all remedies available
to it with respect to the Developer's failure to satisfy the Conditions of Approval, including but
not limited to, the withholding of building permits for the Market Units within the Subject
Property until such cure is completed.
7. Appointment of Other Agencies. At its sole discretion, City may designate,
appoint or contract with any other public agency, for-profit or non-profit organization to perform
the City's obligations under this Agreement.
8. Release of Subiect Property From Agreement. The covenants and conditions
herein contained shall apply to and bind the Developers and its heirs, executors, administrators,
successors, transferees, and assignees of all the parties having or acquiring any right, title or
LENNAIUBRESSI RANCH INITIAL AFFORDABLE HOUSING AGREEMENT
IMPOSING RESTRICTIONS ON REAL PROPERTY
5 1/13/2003
interest in or to any part of Subject Property and shall run with and burden the Subject Property
until terminated in accordance with the provisions hereof. Prior to the issuance of building
permits, the Developer shall expressly make the conditions and covenants contained in this
Agreement a part of any deed or other instrument conveying any interest in the Subject Property.
Notwithstanding anything to the contrary set forth in the Agreement, individual purchasers of
units pursuant to an approved public report in compliance with the California Subdivided Lands
Act, and mortgage lenders holding deeds of trust on such individual units after sale to such
purchasers, shall not be subject to the terms of this Agreement; and the terms of this Agreement
shall be of no further force or effect and this Agreement shall automatically release with respect
to such completed unit on the date of the recordation of a deed to the individual purchaser. Upon
issuance of certificates of occupancy for all of the Affordable Units, the entire Subject Property,
with the exception of the property subject to the approved Site Development Plan, shall be
released from the burdens of this Agreement. The burdens of this agreement shall remain in full
force and effect and recorded against the property subject to the approved Site Development Plan
in accordance with the terms of this agreement.
9. Right to Transfer Master Project. With this initial Agreement, Developer shall
have the right to sell, mortgage, hypothecate, assign or transfer ("Transfer") the Master
Development in whole to any person, partnership, joint venture, firm, corporation or other
entity, including, without limitation, any affiliate of Developer ("Transferee") at any time during
the term of this Agreement. It is understood and agreed by the parties that portions of the
Subject Property may be subdivided solely for the purposes of separating the non-residential
parcels from the residential parcels after the date of this Agreement. The ownership of one or
more of the non-residential parcels may be transferred for development. No further subdivision
of the residential planning areas into individual residential lots within the Master Development
will be permitted until the Master Developer has received approval and executed an amendment
to this Agreement and received approval of a Site Development Plan for the Affordable Housing
project.
10. 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 against all loss,
all risk of loss and all damage (including expense) sustained or incurred because of or by reason
of any and all claims, demands, suits, actions, judgments and executions for damages of any and
every kind and by whomever and whenever made or obtained, allegedly caused by, arising out of
or relating in any manner to Developer's performance or non-performance pursuant to this
Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. The
provisions of this section shall survive expiration or other termination of this Agreement or any
release of part or all of the Property from the burdens of this Agreement, and the provisions of
this Section 9 shall remain in full force and effect
11. Insurance Requirements. Developer shall obtain, at its expense, comprehensive
general liability insurance for the development of the Subject Property naming Indemnitees as
LENNARlBRESSI RANCH
INITIAL AFFORDABLE HOUSING AGREEMENT
IMPOSING RESTRICTIONS ON REAL PROPERTY
6 1/13/2003
additional named insureds with aggregate limits of not less than five million dollars ($5,000,000)
for bodily injury and death and property damage, including coverages for contractual liability
and products and completed operations, purchased by Developer or its successors or assigns
from an insurance company duly licensed to engage in the business of issuing such insurance in
the State, with a current Best’s Key Rating of not less than A-:V, such insurance to be evidenced
by an endorsement which so provides and delivered to the Housing and Redevelopment
Department prior to the issuance of any building permit for the Subject Property..
12. Notices. All notices required pursuant to this Agreement shall be in writing and
may be given by personal delivery or by registered or certified mail, return receipt requested, to
the party to receive such notice at the addressed set forth below:
TO THE CITY OF CARLSBAD
CITY OF CARLSBAD
Housing and Redevelopment Department
Attn: Housing and Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, CA 92008-2389
TO THE DEVELOPER:
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.
13. Integrated 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.
14. Duration of Agreement. This Agreement shall terminate and become null and
void upon the earlier of (a) the closing of the sale of the last of the Affordable Units to an
individual purchaser pursuant to a sale on an approved public report in compliance with the
California Subdivided Lands Act, or (b) upon the granting of a written release by the Community
Development Director. This Agreement, and any section, subsection, or covenant contained
herein, may be amended only upon the written consent of Developer and the Community
Development Director.
15. Recording of Agreement. The parties hereto shall cause this Agreement to be
recorded against the Subject Property in the Official Records of he County of San Diego.
LENNWBRESSI RANCH
IMPOSING RESTRICTIONS ON REAL PROPERTY
INITIAL AFFORDABLE HOUSING AG-ENT 7 1/13/2003
16. Severability. In the event any limitation, condition, restriction, covenant, or
provision contained in this Agreement is to be held invalid, void or unenforceable by any court
of competent jurisdiction, the remaining portions of this Agreement shall nevertheless be and
remain in full force and effect.
17. Cooperation. The parties acknowledge and agree that this Agreement will require
mutual good faith and cooperation in the timely implementation and performance of this
Agreement and that time is of the essence herein. Each party covenants to the other to
expeditiously proceeding good faith to implement this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
as of the day and year first above written.
DEVELOPER CITY
BRESSI RANCH VENTURE LLC, City of Carlsbad, a Municipal corporation
a Delaware limited liability company
By: By :
Name: Sandra L. Holder
Title: Community Development Director
By :
Name:
Title:
LENNAR'BRESSI RANCH
INITIAL AFFORDABLE HOUSING AGREEMENT
IMPOSING RESTRICTIONS ON REAL PROPERTY
8 1/13/2003
Proper notarial acknowledgment of execution by contractor must be attached. If a Corporation,
Agreement must be signed by one corporate officer from each of the following two groups.
*Group A. **Group B.
Chairman, Secretary,
President, or Assistant Secretary,
Vice-president CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
LENNAR/BRESSI RANCH
INITIAL AFFORDABLE HOUSING AGREEMENT IMWSING RESTRICTIONS ON REAL PROPERTY
9 1/13/2003
r5
ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
LENNARBRESSI RANCH AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY
1/13/2003
ATTACHMENT B
BRESSI RANCH AFFORDABLE HOUSING AGREEMENT
PHASING FOR DEVELOPMENT AND CONSTRUCTION
AFFORDABLE UNITS AND MARKET-RATE UNITS
ACTION
REQUIRED
Initial Affordable
Housing Agreement
fully executed and
recorded and
approved by the City
Council
SDP approved by
City Council for 100
Affordable Units
and amended
Affordable Housing
Agreement approved
by Community
Development
Director and fully
executed
Foundations
complete, inspected
and approved for
100 affordable
housing units
Certificates of
Occupancy issued
for all 100
affordable housing
units
TOTAL
MASTER
TENTATIVE
OR FINAL
MAPS
RELEASED
Master Tentative
Map (“A” Map) may
receive final
approval
Final maps for
subdivision of any
individual residential
neighborhood may
receive approval
No additional Final
Maps
No additional Final
Maps
Up to 623 housing
units maximum
BUILDING
PERMITS
RELEASED
None
Building Permits for
20 1 Market Rate
Units and 100
Affordable Units
Building Permits for
an additional 162
Market Rate Units
Building Permits for
an additional 160
Market Rate Units
Up to 523 Market
Rate Units and up to
100 Affordable
Units
% OF TOTAL
PERMITS FOR
PROJECT
N/A
Up to 38% of
Market Rate Units
Released and 100%
of Affordable Units
Released
Up to 69% of
Market Rate Units
Released
up to 100% of
Market Rate Units
Released
100%
COMMENTS
No affordable
housing Site
Development Plan
required at this
point; this was
permitted because of
the substantial
benefit provided to
the City through the
construction of
Poinsettia Lane.
Once final maps are
recorded for
individual residential
neighborhood
subdivisions,
developer may
obtain release of
building permits as
noted.
At this time,
building permits will
have been released
for a total of 349
market rate units and
100 affordable units
At this time,
building permits for
all of the market rate
and affordable units
will have been
released.
LWNAR/BRESSI RANCH
AFFORDABLE HOUSING AGREEMENT
IMWSING RESTRICTIONS ON REAL PROPERTY
1/13/2003
ATTACHMENT C
METHODOLOGY FOR COMPUTATION OF MAXIMUM ELIGIBLE BUYER
INCOMES AND UNITS SALES PRICES
Assumptions:
San Diego Area Median Income as released for the year of sale will be utilized in the
maximum buyer income and sales price computations.
Maximum buyer income will be 80% of San Diego Area Median Income, adjusted for
household size.
Household size assumption of four persons for a two bedroom unit and six persons for a
three bedroom unit.
Housing allowance of a maximum of 35% of maximum buyer income.
Allowance for homeowner association dues as determined by Dept. of Real Estate budgets.
Allowance for utility costs as determined by City Guidelines.
Allowance for property taxes, assuming existing tax rates and use of homeowner
exemption.
Prevailing mortgage interest rate for 30 year conforming loan.
Down payment of 5% of appraised value of unit.
Note: All assumptions will be approved by the City’s Housing and Redevelopment Director
prior to commencement of sales to reflect actual conditions.
LENNAFUBRESSI RANCH AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY
1/13/2003