HomeMy WebLinkAbout2004-11-09; City Council; 17882; Annual Housing Production Report FY200410
CITY OF CARLSBAD -AGENDA BILL
I AB# 17,88XlTLE:
1 1 /9/04 ANNUAL HOUSING PRODUCTION REPORT
FISCAL YEAR 2004 MTG.
DEPT. PL
CITY ATTY.
CITY MGR
RECOMMENDED ACTION:
That the City Council ADOPT Resolution No. 2004-362 , ACCEPTING the Annual
Housing Production Report for fiscal year 2003-2004.
ITEM EXPLANATION:
Report Description
This agenda bill brings to the City Council staffs eleventh annual report on the progress Carlsbad is
making in housing production. The report is an information item only and complies with the state law
requirement for an annual housing report to the legislative body. No action or environmental review
is required.
Consisting of the attached memorandum to the City Manager, the annual housing production report
focuses on new home production during fiscal year 2003-2004 (FY 2004), the fifth year of the current
housing cycle that began July 1, 1999, and was to end June 30, 2004. However, state legislation
passed in 2003 added a sixth year to the cycle, extending it to June 30, 2005.
Through tables and text, the attached report provides:
Statistical data for both new market-rate and publicly assisted homes.
New housing affordability by income group.
Production and affordability information for homes built in FY 2004 and the first five years
of the current housing cycle.
Observations and conclusions about the housing production data.
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Report Highlights on Housinq Production
In FY 2004:
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0
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Builders completed 591 new homes in Carlsbad, compared to 725 units built in FY 2003
and 1,460 units completed in FY 2002.
The median sales price for all for-sale units was $698,635, up $123,735 (or 21 %) from the
previous fiscal year.
Developers built 50 units affordable to low-income households, including 29 apartments.
During the first five years of the current housing cycle (July I, 1999 - June 30, 2004):
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Builders completed 6,787 units in Carlsbad, 85% of which were considered affordable to
other- or “upper”-income households.
Housing built affordable to moderate income households accounted for almost four
percent (264 units) of total units completed.
Slightly more than half of the 843 apartments completed were built affordable to lower-
income families.
Carlsbad’s lower-income housing stock increased by 720 units. Most of these units
resulted from the City’s inclusionary requirements and required city financial assistance.
PAGE 2 OF AGENDA BILL NO. 17,882
Report Conclusions
Carlsbad continues to see significant results from its commitment to the development of housing
affordable to lower-income families. This commitment is evidenced in its policy framework, the
allocation of its own resources, and its efforts to pursue creative partnerships with the private sector
in all aspects of housing production. The fact that the market continues to strongly support the
development of housing primarily affordable to upper-income households is a key reason why the
City must maintain its commitment to fully implement the lnclusionary Housing Ordinance.
Testimony to this is the 720 lower-income units produced so far in this housing cycle and the several
hundred lower-income units now under construction, most of which are the result of inclusionary
requirements.
Staff recommends the City Council accept this housing report. The report will be forwarded to the
Governor's Office of Planning and Research and the California Department of Housing and
Community Development as required by law.
ENVIRONMENTAL:
This is an information item only that does not have the potential to physically impact the environment.
Therefore, it is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA
Guideline 15378.
FISCAL IMPACT:
None. This is an information report only.
EXH I BITS :
2004-362 1. City Council Resolution No.
2. Memorandum to the City Manager from the Planning Director dated October 25, 2004, with
the subject: Annual Housing Production Report - Fiscal Year 2004
DEPARTMENT CONTACT: Scott Donnell, (760) 602-461 8, sdonn@ci.carlsbad.ca.us
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RESOLUTION NO. 2°04-362
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANNUAL HOUSING PRODUCTION REPORT
CARLSBAD, CALIFORNIA, ACCEPTING THE FY 2003-2004
WHEREAS, the Housing Element of the General Plan requires that an annual
Housing Production Report be prepared and submitted to the local agency, the Governor’s
Office of Planning and Research and the California Department of Housing and Community
Development; and
WHEREAS, the current report covers the period July 1, 2003 to June 30, 2004;
and
WHEREAS, Carlsbad continues to see significant results from its commitment to
the development of housing affordable to lower-income families; and
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. That the City Council of the City of Carlsbad accepts the report and directs the
Planning Director to submit the report to the Governor’s Office of Planning and Research and
the state Department of Housing and Community Development.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City
Council held on the 9th day of November , 2004, by the following vote,
to wit:
AYES: Council ?!embers Lewis, Finnila, Hall and Packard.
NOES: None
A
i: Member Kulchin.
ATTEST:
LORRAINE M. WOm, City Clerk ’
(SEAL) 3
EXHIBIT 2
OCTOBER 25,2004
TO: CITY MANAGER
VIA: w“ Planning Director
FROM: Associate Planner
ANNUAL HOUSING PRODUCTION REPORT - FISCAL YEAR 2004
This document constitutes the eleventh annual report describing the City’s progress in producing
housing. It describes our progress during the previous fiscal year (July 1, 2003 to June 30, 2004, or
FY 2004) in meeting, through the construction of new homes, Carlsbad’s estimated share of the
region’s forecasted growth for the four income groups identified in state law.
Purpose - The Annual Housing Production Report is prepared pursuant to California Government
Code Section 65400 (b)(l) which in part requires an agency to report annually to its legislative body
on the progress in meeting its share of regional housing needs.
Reporting Period - The report covers housing production and affordability in FY 2004, which marks
the fifth year of what state law originally intended as a five-year Housing Element cycle. By law, this
cycle began July 1, 1999, and was to end June 30,2004. However, legislation passed in 2003 added
a sixth year to the cycle, extending it through June 30, 2005. Along with covering FY 2004, this report
also discusses production and affordability during the first five years of the housing cycle.
Format - The City’s production and progress during FY 2004 and the housing cycle is reported with
data contained in the following tables:
0
0
Table 1 defines the four income groups.
Tables 2 - 4 set out the qualifying income levels for the four income groups and the
corresponding rents and sales prices considered affordable to the income groups during the
reporting period (FY 2004).
0 Table 5 provides the counts of new housing built, by income group and housing type, in FY
2004.
0 Table 6 highlights the low-income housing built in FY 2004.
0 Tables 7 and 8 provide price information on the market rate homes built in FY 2004.
0 Table 9 compares our progress so far to the current housing cycle objectives.
0 Tables 10 - 12 focus on production and affordability overall during the current housing cycle.
Regional Share Needs - The determination of housing need for Carlsbad and all other jurisdictions in
California is derived from the Regional Housing Needs Statements prepared by the regional councils
of government (COG) before the beginning of each housing cycle. Based upon these assessments
of need the local jurisdictions are charged to adopt housing Objectives in the housing elements of
their general plans.
A regional assessment of need is an estimate of the total need for new housing construction
throughout the region due to growth forecasted to occur during the five-year cycle. The overall
housing need is then broken out by four income groups: very low, low, moderate, and other (or
CITY MANAGER
HOUSING AFFORDABILITY REPORT FY 2004
OCTOBER 25,2004
Paae 2
forecast was prepared in 1998.
The combined very low and low-income
(“lOWer”-inCOfne) estitnate of need iS 3,187
units. This equals 51% of the total estimated
need for the housing cycle.
As mentioned earlier, the state has extended
the housing cycle one year to June 2005.
New construction need estimates in Table 1,
although developed for a five-year housing
cycle ending in 2004, continue to apply
through the cycle’s sixth year.
above moderate or upper-income) - all as defined by the federal Department of Housing and Urban
Development, or HUD, and the state Department of Housing and Community Development, or HCD.
The regional needs are then allocated to the local jurisdictions on a “regional share” basis, according
to models and formulas designed by the COG.
Table 1: Carlsbad’s Regional Share Need Estimates
For Housing Cycle 1999-2005
Definition’ (% of New Construction Needs
AM I”) (in housing units) tncom e Group
-
Very Low 50% or under 1,770
Low 51 - 80 % 1,417
Moderate 81 - 120% 1,436
Other Over 120% 1,591
Totals 6,214
Definitions are from HUD, via the California Department of Housing
and Community Development. ”AMI is the County Area Median Income. The 2004 San Diego County
Area Median Income for a family of four is $63,400.
Definitions of Income Groups - Table 1 also defines each of the four income groups with reference
to a percentage of the county area median income (AMI). Defined as the median income for a family
of four in a specific geographic area, the AMI changes over time and with location. HCD annually
revises the AMI based on HUD data and cost of living issues such as the relationship of housing
prices to income. By comparison, the AMI in 2003 was $60,100.
For 2004, HCD established the AMI for San Diego County at $63,400.
Additionally, HCD modifies the area median income to reflect the differences in costs of living
throughout California, as the following 2004 AMI information for different counties shows:
San Diego: $63,400
Orange: $75,600
Shasta: $49,100
0 Santa Clara: $105,500
Some regions of California, including San Diego County, have high housing costs relative to incomes.
In recognition of this factor, HCD adjusted the AMI and increased the income limits in 2004 for the
very low and low-income groups in these regions. This potentially enables a larger group of people to
qualify for housing assistance. However, these adjustments did not have an effect on housing built in
Carlsbad; they did not cause the affordability of any housing produced in FY 2004, for example, to
change from one income group to another. Furthermore, the housing in the City built specifically for
low-income families in FY 2004 was already restricted to occupancy by that income group.
CITY MANAGER
HOUSING AFFORDABILITY REPORT FY 2004
OCTOBER 25,2004
Page 3
Table 2: FY 2004 Qualifying Limits On Annual Income
By Household Size
Very Low $27,400 $34,250 $39,750 $45,200 $50,700~
Low $43,850 $54,800 $63,550 $72.350 $81,100
Moderate $60,900 $76,100 $88,300 $100,450 $112,650
Other >$60,900 >$76.100 >$88,300 >$100,450 >$112,650
Persons Per Household Income Group 2 4 6 8
Source: "2004 Income Limits," state Department of Housing and Community Development,
February 24, 2004 (Numbers based on HUD income data effective January 28,2004).
percentages stated in Table 1, but
they also reflect the adjustments
discussed in the prior paragraph that
are necessary to recognize our
region's high housing costs relative
to incomes. By way of example, a
family of four earning $54,800 is
considered to have a low-income,
even though the amount is 86% of
AMI, or five percent more than the
Prices of Affordable Housing - Generally, the federal and state rule is that housing is affordable to
a given family if the family pays less than 30% of its monthly income for housing expenses that
include the rent or mortgage payment, property taxes, insurance, utilities, and the like. A
determination of whether a housing unit is affordable can be easily made for assisted public rental
housing and other public housing programs because documentation is maintained on both the
individual household's income and the actual cost of the unit in question (typically a rental).
A determination of whether market rate housing is affordable according to the 30% rule, on the other
hand, presents some challenges. Builders of market rate rental and for-sale housing do not set
prices based upon an individual buyer's ability to pay. Rather, the rentdprices are set to what the
market will bear. Further, rents and prices do not generally vary with the number of people in the
household. For example, market rent for a two-bedroom apartment will remain constant no matter if it
is being rented to a I-, 2-, 3-, 4, or 5-person household. So the challenge is how to determine to
what income arouD (as opposed to an individual household) a given market rate house is affordable,
and to do so based upon the number of bedrooms it has (as opposed to persons). A convention
developed in 1993 by member agencies of the San Diego Association of Governments assumes two
persons per bedroom. Thus, a two-bedroom unit is assumed to house four people.
To determine affordable housing
expenses for rentals, the practice is to
set thresholds for each income group,
using the 30% rule, with adjustments for
the number of bedrooms. An additional
adjustment is also made for a utility
allowance, as required by HUD. Table 3
provides the resulting maximum market
rate rental expenses (which include rent
and a $32-$63 utility allowance that
increases with household size) for the
Table 3: FY 2004 Qualifying Rent and Utility Expenses
By Number of Bedrooms
Number of bedrooms Income Group 1 2 3 4
Very Low $685 $856 $994 $1,130
Low $1,086 $1,370 $1,589 $1,809
Moderate $1,523 $1,903 $2,208 $231 1
Other >$I ,523 >$I ,903 >$2,208 >$2,511
Source: "2004 Income Limits," state Department of Housing and Community
Development, February 24, 2004; and Carlsbad Housing Authority table on
"Lower and Moderate Income Rental Rate Calculations" (based on HUD income
data effective Januarv 28.20041
6
CITY MANAGER
HOUSING AFFORDABILITY REPORT FY 2004
OCTOBER 25,2004
Page 4
very low, low, and moderate-income groups for FY 2004. To illustrate,
couple earning $27,400 annually (considered a very low-income per
the table shows that for a
Table 2), a one-bedroom
apartment would be considered affordable to them only if the rent and utility expenses combined did
not exceed $685 per month, or 30% of their income.
For-sale market rate housing is even more complicated for purposes of determining affordability.
Neither state nor federal regulations provide a formula to determine affordability. A multitude of
factors are potentially involved. First, buyers don’t pay the full price of a house in cash. Instead, they
take out one of many types of mortgages, subject to many variables (fixed or variable interest rate,
down payment, pay-back period, mortgage insurance, loan origination fees, etc.). In addition, other
housing costs must be factored in, including property taxes, insurance, utilities, and homeowners’
association dues. All of these factors are recognized “housing costs” and indirectly affect how much
a family can pay each month under the 30%-of-income rule. Only the principal and down payment,
however, relate directly to the sales price of the house. All the others are related to financing and
operating a home.
Lacking guidance from state or federal law, SANDAG member agencies developed a simple formula
in 1993 for use in determining the affordability of market rate for-sale houses. The formula, provided
below, follows a rule-of-thumb used by many mortgage lending institutions. As with the rental
formulas discussed earlier, it was subsequently reviewed and accepted by the SANDAG Board and
the California Department of Housing and Community Development.
Affordable sales price = 3.0 X maximum-allowed-annual-income for each class, adjusted for
bedroom count.
I Table 4: FY 2004 Qualifying Purchase Price, i I By Number of Bedrooms I I Income Group Number of Bedrooms
1 2 3 4 5
Very Low $82,200 $102,750 $119,250 $135,600 $152,100
Low $131,550 $164,400 $190,650 $217,050 $243,300
Moderate $1 82,700 $228,300 $264,900 $301,350 $337,950
Other >$182,700 >$228,300 >$264,900 >$301,350 >$337,950
* 3X multiplier was developed by an ad hoc committee at SANDAG with subsequent approval by
the SANDAG Board in 1993. (There is no formula in state law.) The rule also assumes 2 persons
per bedroom to provide a correspondence back to HUD affordability rules based upon per
household (as opposed to bedrooms). Since HUD tables do not provide for 12 or more person
households, homes with more than 5-bedrooms are treated as if they were 5-bedroom homes.
Based upon this formula, Table 4
gives the qualifying purchase price
for housing for the different income
groups. The table illustrates that a
three-bedroom house costing no
more than $264,900 would be the
maximum affordable to a moderate-
income family. This price is three
times the $88,300 annual income
limit for a moderate-income family of
four as shown on Table 2.
Conversely, a three-bedroom home
costing more than $264,900 would
be considered affordable only to
families in the other-income group.
Determining Affordability - Based on the above information, two variables must be known about a
housing unit to determine its affordability: a) the sales price or rent, and b) the number of bedrooms.
Staff must collect this information for each individual housing unit. For housing created under one of
the City’s housing assistance programs this is relatively easy, as we get the data via the program.
On the other hand, for new market rate rentals and for-sale homes, staff must obtain the sales price
or rent information directly from the builders. Staff performs this task once a quarter via a voluntary
survey of all newly constructed units. Most builders are cooperative and provide the information we
CITY MANAGER
HOUSING AFFORDABILITY REPORT FY 2004
OCTOBER 25,2004
Page 5
Income Group
need. A few are not. If the builder is not responsive, staff attempts additional contacts by mail and
phone. If necessary, we also research Building Department records and County Assessor's data, the
latter on the Internet, for any missing information on bedroom counts and sales prices.
Market Rate
Single Family Single Family Condo- Apart- Duplex
Detached* Attached** minium ment
Due to the research and delays involved in documenting prices and rents and assembling data, this
report trails the end of the reporting period by a few months. For this reporting period, staff obtained
with the quarterly survey and additional research sales prices and rents for all but a few homes.
Housing Activity and Affordability in FY 2004 - Table 5 and the information below summarize and
expand on housing completed in FY 2004. Definitions of terms used in the table and the remainder
of the report are as follows:
Market Rate Units - Units that received no financial assistance from the City and have no
affordability restrictions.
Assisted Units - Units that received financial assistance from the City and/or other subsidy
sources and have affordability restrictions.
Single-family detached - A single home on a single lot, detached from any other unit, except
for an attached second dwelling unit.
Condominium - A detached or attached home on commonly owned property.
Apartment - A unit that can only be rented and not owned.
Duplex - Two units on a single lot. Units cannot be individually sold.
Second Dwelling Unit - A completely independent dwelling unit on the same lot as a primary
residence. A second dwelling unit may be attached to or detached from the primary
residence.
I Table 5: Type and Affordability of Housing Units Constructed in FY 2004
Very Low 0 0 0 0 0
Low 0 0 0 0 0
Moderate 0 0 0 53 0
Other 423 0 12 43 2
Unknown*** 7 1 0 0 0
Assisted
Apartment
0
29
0
0
0
Second Totals Dwelling Unit
0 0
21 50
0 53
0 480
0 8
Total Units Bui 430 1 12 96 2 I 29 I 21 591
*Thirteen single family detached homes were built with second dwelling units. These second dwelling units are counted in
the second dwelling unit category.
** The single-family attached unit was a single unit built attached to an existing residence.
*** The "unknown" income group counts units for which sales prices could not be obtained.
CITY MANAGER
HOUSING AFFORDABILITY REPORT FY 2004
OCTOBER 25,2004
Paae 6
Pacific
View
Comments on Housing Production in FY 2004
0 Developers built 591 new homes in Carlsbad, compared to 725 units built in FY 2003 and
1,460 units completed in FY 2002. The decline in production should reverse as several large,
new developments (e.g., Kelly Ranch, Calavera Hills, Villages of La Costa) develop.
Single-family detached dwellings accounted for 88% of the fiscal year’s production,
apartments 21 YO, and condominiums 2%.
Kelly Ranch 29
Comments on Housing Affordability in FY 2004
Most (81 %) of the housing built was affordable to upper-income households only.
Low-income housing (both apartments and second dwelling units) built during the fiscal year
accounted for 8% (50 units) of production, with the majority of it made possible by the City’s
inclusionary housing requirements. The apartments, featuring one to three bedrooms, had
rents from $950 to $1,326.
Based on rents charged, 53 market rate apartments, or roughly 9% of total production, were
affordable to moderate-income families. These one to three bedroom units had rents from
$1,400 to $2,000.
Table 6 highlights Carlsbad’s newest lower-income housing.
Small, independent living units
located on property with a larger,
primary residence. Many of the 21 units built partially satisfied the
inclusionary housing requirements of
developers.
Table
If rented, second
dwelling units must be affordable to low-
income persons.
Number of Units Project I Location 1
Second
Units
Throughout 21 Carlsbad
i: Low-income Housing Built in FY 2004
Description Occupancy City I Restrictions 1 Assistance I I One to three bedroom apartments built. When complete, Pacific View will feature 11 1 units affordable to
low-income families and 340 market
rate units. The 11 1 units satisfy the
Kelly Ranch inclusionary housing requirement.
None for the market
rate units. Otherwise, units are available only to persons with low
incomes.
None
None
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CITY MANAGER
HOUSING AFFORDABILITY REPORT FY 2004
OCTOBER 25,2004
Page 7
Housing Units Built
Income Group FY2000 FY2001 FY2002 FY2003FY2004 Total
Medians and Extremes - Table 7 compares the median price of for-sale, market rate housing built in
FY 2004 and FY 2003. Table 8 provides high and low sales prices during FY 2004.
Housing Units Needed
obptive Percentage of Oblective
Table 7: Comparisons of Median Sales Prices
FY 2003 vs. FY 2004 (Market Rate Units Only)
I very I-CJw 23 138 17 0 0 1 78
LOW 1 59 158 106 69 50 542
I I Table 8: Low and High Sales Prices
Achieved 1,770 10%
1,417 38%
Structure Type High
MecEanSalesprices percent
FY2003 FY2004 - strudure Type
Moderate 42 94 75 0 53 264
Other 1,679 1,700 1,255 654 480 5,768
Unknown* 11 7 7 2 8 35
Totals 1,914 2,097 1,460 725 591 6,787
Ccndminium $458,250 $588,900 $13,650 28.5%
All For-Sale Units $n4,9oO $698,635 $123,735 21.5%
1,436 18%
1,591 363%
n.a. n.a.
6,214 109.2%
&doni ni urn $580,588 $620,500
Progress Toward Housing Cycle Objectives - Table 9 below provides the number of dwellings
completed during the first five years of the current housing cycle. The table also shows the
cumulative progress achieved during those years toward meeting the new housing needs (from Table
I) estimated for the housing cycle over its original five-year term (1999-2004).
Table 9: Cumulative Progress Toward Current Housing Cycle Objectives
CITY MANAGER
HOUSING AFFORDABILITY REPORT FY 2004
OCTOBER 25,2004
Paae 8
Affordability of Housing Produced from 1999-2004. - Table 10 show the affordability of housing
produced in the first five years of the current housing cycle.
Table IO: Affordability of Housing Built
July 1,1999 to June 30,2004
Income Group Units Built*
Very Low 178
VeryLow Low
8%
Moderate
/ Low 542 . , . , z.xc ,..'.'.A"' ,_, .( . ...../ . . . . . . . . . . . . . . ....................... . . . . . . . . . . . . . . . . . . . ...,.....,. . . . . . . . . Moderate 264
Other 5 768
. . . . . . . . . . . . . .
_,. --
Totals 6,752
'35 "unknown" units, for which prices could not
be determined, are not reflected in this table.
85%
Type of Housing Produced from 1999-2004 - Based on the type of housing built, the nearly 6,800
units constructed over the past five years break down as follows:
Table 11: Type of Housing Built
July 1,1999 to June 30,2004
Type Units Built
Single-Family Attached 159
Condominium 1,273
Apartment 843
Duplex 17
Second dwelling Unit 146
Totals 6,787
Single-Family Detached 4,349
65%
CITY MANAGER
HOUSING AFFORDABILITY REPORT FY 2004
OCTOBER 25,2004
Page 9
Type of Lower-Income Housing Produced from 1999-2004 - Developers have built over 700
homes for lower-income households in Carlsbad, most resulting from lnclusionary Housing Ordinance
requirements and requiring city financial assistance. This accounts for:
Almost 11 % of total housing production during the cycle.
Nearly one-quarter of the total housing need identified for lower-income families.
0
0
Table 12 breaks down the type and number of lower-income housing built during the current Housing
Cycle.
Table 12: Type of Lower-Income Housing Built
July 1,1999 to June 30,2004
Tvoe Units Built
Apartment 455
Condominium 95
Single-family Attached 24
Second Dwelling Unit 146
Totals 720
SDU
20%
Conclusions
As this report demonstrates, Carlsbad has seen significant results from its commitment to the
development of housing affordable to lower-income families. This commitment is evidenced in its
policy framework, the allocation of its own resources, and its efforts to pursue creative partnerships
with the private sector in all aspects of housing production.
While the City has made positive strides in producing lower-income housing, the need for housing
affordable to very low, low, and moderate-income families continues to exceed the community’s
collective ability to produce it. At the same time, total production of new homes affordable to upper-
income groups remains dominant.
Clearly, Carlsbad’s private sector continues to produce primarily up-scale housing. A number of
factors contribute to this trend: Demand for higher-end housing remains strong; tax incentives for
producing more affordable housing are few; land costs are high; and, despite lower, relatively stable
or declining interest rates in recent years, per-square-foot production costs remain substantial, so that
profit margins on more affordable housing are low.
Additionally, when the City considered including a moderate-income requirement .as part of its
inclusionary housing ordinances in the early 199Os, the requirement was set aside when the private
sector assured the City that it would produce moderate-income housing without inclusionary
requirements. Based upon this assurance, the City made a conscious decision to focus its own
resources and efforts on lower-income housing. The industry’s production of moderate-income
CITY MANAGER
HOUSING AFFORDABILITY REPORT FY 2004
OCTOBER 25,2004 Paae 10
housing, averaging about 5% of annual housing output since July 1994, does not stand up well to its
earlier assurances.
The fact that the market continues to strongly support the development of housing primarily
affordable to upper-income households is a key reason why the City must continue its commitment to
fully implement the lnclusionary Housing Ordinance. Testimony to this is the 50 low-income units
produced during FY 2004, most completed because of Carlsbad’s inclusionary requirements, and the
several hundred inclusionary units now under construction, which include:
0 La Costa Greens - 180 apartments
0 Calavera Hills - 106 apartments
Kelly Ranch - 82 apartments
0 Bressi Ranch - 100 condominiums
0 Rose Bay - 24 condominiums
0 Village by the Sea - 11 condominiums
0 Tradition Apartment Homes - 24 apartments
Because of these projects and its commitment to inclusionary housing, Carlsbad will add more than
500 lower-income homes in 2004 and 2005 and continue to make significant progress toward its
estimated regional share needs.
SCOTT DONNELL .
13