HomeMy WebLinkAbout2006-06-20; City Council; 18607; Appropriation of Work Force Housing Reward GrantCITY OF CARLSBAD - AGENDA BILL
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MTG.
DEPT.
18,607
6/20/06
HIRED
TITLE:
APPROPRIATION OF WORK FORCE HOUSING REWARD
GRANT IN THE AMOUNT OF $400,536 TO FUND LOAN FOR
THE HUNTERS POINTE AFFORDABLE HOUSING PROJECT.
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CITYMGR.'^V^
RECOMMENDED ACTION:
That the City Council ADOPT Resolution No. 2006-.160 APPROVING and appropriating
$400,536 in funding from the State of California Workforce Housing Reward Program to fund a
portion of the City's loan in the total amount of $1,932,000 to Chelsea Investment Corporation to
assist with construction of one hundred sixty-eight (168) affordable apartment units within the Villages
of La Costa Master Plan Development.
ITEM EXPLANATION:
AFFORDABLE HOUSING PROJECT DESCRIPTION
On April 5, 2005, the City Council approved a Site Development Plan (SDP 04-13) allowing for the
development of 168 affordable apartment units within the Villages of La Costa Master Plan
development. This project, the Hunters Pointe Apartments, will be located on a 15.84 acre parcel that
is currently referred to as La Costa Oaks Village 3.6 of the Villages of La Costa Master Plan
development. It is located on the east side of realigned Rancho Santa Fe Road. It lies south of San
Elijo Road (old Questhaven Road) and west of the City limit for the City of San Marcos. This project
will represent Phase II of the affordable housing development required for the Villages of La Costa.
The first project known as La Costa Paloma contains 180 units and recently completed construction. It
was developed by Community Housing Works. The Hunters Pointe project of 168 affordable units will
be developed by Chelsea Investment Corporation. This second project will satisfy the total affordable
housing requirement for the Villages of La Costa development.
The Hunters Pointe Apartments will consist of 9 residential structures, a 2,700 square foot community
building, a leasing office, three picnic areas, two tot lots and a half basketball court. The development
includes 36 one-bedroom (21%), 60 two-bedroom (36%) and 72 three-bedroom (43%) apartments.
Units will range in size from 682 square feet for the one-bedroom unit, 800 to 880 square feet for the
two-bedroom unit and 1,122 for the three-bedroom unit. The community building will include a
community room and kitchen, a computer homework room, bathrooms, leasing staff offices, a laundry
facility and storage.
FINANCIAL ASSISTANCE
On August 16, 2005, the City Council approved a loan in the amount of $1,932,000, or $11,500 per
unit, to assist in financing the Hunters Pointe affordable housing project. The original intent was to
fund the loan entirely from the City's Housing Trust Fund. With the award of the Workforce Housing
Grant by the State of California, Staff is requesting at this time that the subject loan be financed with
both Housing Trust Funds and the Workforce Housing Reward Grant. This is necessary in order to
expend the Workforce Housing Grant in a timely manner and to meet the current encumbrance
requirements for said grant.
As background, the City Council authorized the Housing and Redevelopment Director to apply to the
California Department of Housing and Community Development for a Workforce Housing Reward
Grant on March 15, 2005. The program was established by the State pursuant to Proposition 46, the
Housing and Emergency Shelter Trust Fund Act of 2002. The program rewards cities and counties
that approve housing affordable to lower income households. The funds were awarded based on the
number of building permits issued for affordable units, and the number of bedrooms contained in those
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units. The City of Carlsbad received $400,536 as our reward for providing affordable housing within
our community. This was one of the larger awards throughout the State. The City indicated to the State
that our reward would be used to produce additional affordable housing within Carlsbad. Because the
City is required to appropriate the grant funds by no later than June 30, 2006, staff is recommending
that the funds be used to help finance the previously approved Hunters Pointe affordable housing
project. The Hunters Pointe project has received all of its funding approvals. It is anticipated at this
time that the Hunters Pointe project will begin construction by the end of July, 2006.
The City Council approved all of the related loan documents for said project on August 16, 2005. At
this time, staff is only requesting approval of the appropriation of the Workforce Housing Grant to
assist in funding the previously approved loan to the Hunters Pointe affordable housing project. No
other action is required by the Council to fund said loan.
ENVIRONMENTAL REVIEW
The Hunters Pointe affordable apartment project was reviewed pursuant to the California
Environmental Quality Act (CEQA). Staff prepared an initial study for the project and concluded that no
potentially significant impacts would result with the implementation of the project that were not
previously examined and evaluated in the Final Program Environmental Impact Report for the Villages
of La Costa Master Plan (EIR 98-07), dated October 23, 2001. The City Council certified the EIR on
October 23, 2001. At that time CEQA Findings of Fact, a Statement of Overriding Considerations, and
a Mitigation Monitoring and Reporting Program were approved. All mitigation measures contained in
the adopted Mitigation Monitoring and Reporting Program that were applicable to the subject project
were completed, incorporated into the project design or were required as conditions of approval for the
project.
The proposed project will have no effects beyond those analyzed in the program EIR, as they are a
part of the program analyzed earlier. This project is within the scope of Final Program EIR 98-07 and
no further CEQA compliance is required.
FISCAL IMPACT:
The financial assistance in the form of a $1,932,000 residual receipts loan will be provided from both
the City of Carlsbad's Housing Trust Fund and the State of California's Workforce Housing Reward
Grant. The Workforce Housing Grant will fund $400,536 of the loan. The remaining funds of
$1,532,644 will be provided from the Housing Trust Fund.
EXHIBITS:
1. City Council Resolution No. 2006 -160 , to appropriate $400,536 from the
Workforce Housing Grant to assist in funding the previously approved financial assistance loan for
the Hunters Pointe Affordable Apartment Project.
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, TO APPROVE AND APPROPRIATE
$400,536 IN FUNDING FROM THE STATE OF CALIFORNIA
WORKFORCE HOUSING REWARD PROGRAM TO FUND A
PORTION OF THE CITY'S LOAN TO PROVIDE FINANCIAL
5 ASSISTANCE TO CHELSEA INVESTMENT CORPORATION FOR
CONSTRUCTION OF ONE HUNDRED SIXTY EIGHT (168)
LA COSTA MASTER PLAN.
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APPLICANT: CHELSEA INVESTMENT CORPORATION -
CASE NO: SDP 04-139
CITY COUNCIL RESOLUTION NO. 2006-160
AFFORDABLE APARTMENT UNITS WITHIN THE VILLAGES OF
HUNTERS POINTE AFFORDABLE PROJECT
10 WHEREAS, the master developer of the Villages of La Costa Master Plan development,
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Morrow Development, has proposed to construct 168 apartment units affordable to lower income
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households as a means to satisfy their affordable housing obligation as permitted by Carlsbad
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Municipal Code Section 21.85 of the City's Inclusionary Housing Ordinance; and14
WHEREAS, Morrow Development has retained Chelsea Investment Corporation, the
affordable housing Developer, to develop and operate the 168 apartment units affordable to lower
income households; and
WHEREAS, Chelsea Investment Corporation has requested that the City of Carlsbad
provide financial assistance in the form of a loan to assist in the construction of said apartment
units; and
WHEREAS, on the 16th day of August, 2005, the City Council did hold a public meeting
22 to consider said request for City financial assistance for the construction of said 168 affordable
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housing apartment units by the affordable housing developer, Chelsea Investment Corporation;
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and;
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WHEREAS, at said public meeting, upon hearing and considering all testimony, if any,
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of all persons desiring to be heard, said Council considered all factors relating to the application
and approved the developer request for financial assistance in the total amount of $1,932,000; and
1 Page 2 of CC Resolution No._
2 WHEREAS, on November 18, 2005, the State of California Department of Housing and
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Carlsbad and required that said funds be appropriated to an eligible project by no later than June
Community Development awarded a $400,536 Workforce Housing Reward Grant to the City of
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5 30, 2006;and
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WHEREAS, the City Council held a public meeting on the date of this resolution and
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considered all factors related to the appropriation of said Workforce Housing Reward Grant to the
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previously approved Hunters Pointe affordable housing project to assist in funding the previously
approved loan to said project.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City
12 of Carlsbad, California, as follows:
13 1. The above recitations are true and correct.
14 2. The City financial assistance is consistent with the goals and objectives of the City
of Carlsbad's Housing Element and Consolidated Plan, the Inclusionary Housing
15 Ordinance, and the Carlsbad General Plan.
3. The City financial assistance will assist the affordable housing developer to
construct a total of 168, one, two and three bedroom affordable apartment units.
The project, therefore, has the ability to effectively serve the City's housing needs
1 g and priorities as expressed in the Housing Element and the Consolidated Plan.
19 4. That the City Council of the City of Carlsbad hereby APPROVES appropriation
of $400,536 in funding from the State of California Workforce Housing Reward
20 Program to assist in financing a portion of the City's previously approved loan in
the total amount of $1,932,000 to Chelsea Investment Corporation to assist with
21 construction of one hundred sixty-eight (168) apartment units in the affordable
housing project known as the Hunters Pointe.
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Page 3 of CC Resolution No.
5. That the City Council authorizes the Finance Director to appropriate and expend
the $400,536 in funding from the State of California Workforce Housing Reward
Program to fund a portion of the City's loan in the total amount of $1,932,000 to
Chelsea Investment Corporation to assist with construction of the Hunters Pointe
affordable housing project, and to submit the appropriate documents to the State of
California for disbursement and/or reimbursement of said funds as appropriate and
necessary.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad, California, held on the 20th day of June 2006 by the
following vote, to wit:
AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafoose
NOES: None
ABSENT: None
ABSTAIN: None
CLAUDE A. LEWIS, Mayor
ATTEST:
(SEAL)