HomeMy WebLinkAbout2007-04-24; City Council; 18965; Villa Loma Affordable Housing Credits Purchase1
CITY OF CARLSBAD - AGENDA BILL
AB# 18,965
MTG. 4/24/2007
DEPT. HRED
REQUEST TO PURCHASE AFFORDABLE
HOUSING CREDITS IN THE VILLA LOMA
AFFORDABLE HOUSING PROJECT
DEPT. HEALVJK^ ^
CITY ATTY. (^
CITY MGR. JEf
RECOMMENDED ACTION:
ADOPT Resolution 2007-083 APPROVING a request to purchase a total of four (4)
Affordable Housing Credits in the Villa Loma affordable housing project in order to satisfy the
affordable housing obligation of two (2) different housing development projects within the southeast
quadrant under the City's Inclusionary Housing Ordinance.
ITEM EXPLANATION:
When the Villa Loma Affordable Apartment Project was completed in 1996, it provided 344 units of
housing affordable to lower income households. A total of 160 units within the project were set-aside
to meet the Inclusionary Housing obligation of the Aviara housing development. The remaining 184
"surplus units" were available as "housing credits" that could be purchased by future housing
developers in the southeast and southwest quadrants to satisfy their Inclusionary Housing obligations.
At the discretion of the City Council, the credits may be sold at a price set by the Council. The current
credit price is $46,000 and there are 27.87 credits available for purchase.
This request is to purchase credits from the Villa Loma Project for the following projects:
Project/Developer
Romeria Pointe
Condominiums
(BNR Investment
and Development)
Resort View
Townhomes
(BNR Investment
and Development)
Total
Location
7437 Romeria
Street
7458 Viejo
Castilla Way
Project ID
CT 06-22
CT04-19
Total # of Units
9
15
24
Total # of Credits
2
2
4
The above projects are eligible to purchase credits in the Villa Loma Affordable Apartment Project
because they are located in the southeast quadrant of the City, and they represent small
developments from an affordable housing perspective.
Because of the small size of the projects and the difficulty in obtaining financing, the noted applicants
have elected to pursue the purchase of affordable housing credits rather than constructing units on
the site of their market rate units. The City Council has adopted Policies 57 & 58 that govern the sale
of affordable housing credits. The policies require the examination of 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. The Affordable Housing Policy Team (staff) has
reviewed the above requests and utilized the criteria contained in the policies in making their
recommendation to approve the purchase of the credits for the noted projects.
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
tf
D
D
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CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER - SEE MINUTES
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Page 2 of AB#_
FISCAL IMPACT:
Affordable Housing Credits from the Villa Loma Project are currently $46,000 per unit. The purchase
of a total of four (4) credits for the noted two projects will result in a payment of $92,000 to the City's
Housing Trust Fund. If this request to purchase credits is approved, the City will have an unreserved
balance of 23.87 units in the Villa Loma Project.
EXHIBITS:
1. City Council Resolution No. 2007-083 approving the purchase of four (4) credits in the Villa
Loma Project to satisfy Inclusionary Housing obligations for two (2) projects in the southeast
quadrant of the City.
2. Affordable Housing Agreements for Romeria Pointe Condominiums (CT 06-22).
3. Affordable Housing Agreement for Resort View Townhomes (CT 04-19).
DEPARTMENT CONTACT: Frank Boensch, (760) 434-2818, fboen@ci.carlsbad.ca.us
CITY COUNCIL RESOLUTION NO. 2007-083
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING A REQUEST BY BNR
INVESTMENT AND DEVELOPMENT LLC TO PURCHASE FOUR
AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA
HOUSING PROJECT IN ORDER TO SATISFY THE AFFORDABLE
HOUSING OBLIGATION OF THE ROMERIA POINTE
CONDOMINIUMS AND RESORT VIEW TOWNHOMES PROJECTS
UNDER THE CITY'S INCLUSIONARY HOUSING ORDINANCE.
APPLICANT: BNR INVESTMENT AND DEVELOPMENT LLC
CASE NOS: CT 06-22 AND CT 04-19
Q WHEREAS, BNR Investment and Development LLC has received approval of Tentative
10 Maps CT 06-22 and CT 04-19 for the development of a 9 unit and 15 units residential
11
developments; and
12
WHEREAS, BNR Investment and Development LLC has requested approval from the
13
City of Carlsbad City Council for the purchase of four affordable housing credits in the Villa
14
Loma housing project to satisfy the inclusionary housing requirement of Tentative Maps CT 06-
16 22 and CT 04-19; and
17 WHEREAS, the City Council did hold a public meeting to consider said request for the
18 purchase of Affordable Housing Credits by BNR Investment and Development; and
19 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
21 request to purchase Affordable Housing Credits:
22 NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
23
Carlsbad, California, as follows:
24
1. That the above recitations are true and correct.
25
,r 2. The projects are consistent with the goals and objectives of the City of Carlsbad's26
27 Housing Element, the Inclusionary Housing Ordinance, and the Carlsbad General Plan.
28
3
Page 2
3. Based upon the analysis contained within the related City Council Staff Report, the
City Council finds that the off-site satisfaction of the inclusionary housing requirement is in
4 the public interest.
5
4. That based on the information provided within the City Council Staff Report and
6
testimony presented during the public meeting of the City Council, the City Council hereby
APPROVES a request by BNR Investment and Development LLC to purchase four
affordable housing credits in the Villa Loma housing project in order to satisfy the affordable
housing obligation of Romeria Pointe Condominiums (CT 06-22) and Resort View
11 Townhomes (CT 04-19) under the City's inclusionary housing ordinance.
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Page 3
5. That the City Council hereby authorizes the Community Development Director to
execute the Affordable Housing Agreements in substantially the form presented to the City
Council as Exhibit 2 and Exhibit 3 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 24tb day of April, 2007 by the following
vote, to wit:
AYES: Council Members Lewis, Kulcbin, Hall, Packard and
Nygaard
NOES: None
ABSENT:None
ABSTAIN: None
ATTEST:
_c
LORRAINErsE(SEAL)
J~
Recording Requested by:
City of Carlsbad
When Recorded Mail to:
City of Carlsbad
City Clerk's Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad. California 92008
(Space above for Recorder's Use)
AFFORDABLE HOUSING AGREEMENT
THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into
day of d^JL _ , 200_2_, by and between the CITY OF CARLSBAD, a municipal
corporation (hereinafter referred to as the "City"), and BNR INVESTMENT AND
DEVELOPMENT a California limited liability company, (hereinafter referred to as the
"Developer"), is made with reference to the following:
RECITALS
A. Developer is the owner of certain real property in the City of Carlsbad, County of San
Diego, State of California, described in "Attachment A", which is attached hereto and
incorporated herein by this reference, and which is the subject of a Tentative Map CT 06-22
which provides conditional approval of the construction of nine (9) condominiums ("Project").
B. Chapter 21.85 of the Carlsbad Municipal Code requires that this Affordable Housing
Agreement shall be entered into between the City and the Developer as a means of satisfying the
Developer's affordable housing obligation ("Affordable Housing Obligation"), as such is defined
under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No.
6225 provides that the Affordable Housing Obligation of two (2) units will be satisfied by the
purchase of affordable housing credits, as provided for in Chapter 21.85, Section 21.85.080.
NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the
mutual covenants contained herein, the parties agree as follows:
1 . That the Recitals Are True And Correct.
2. THAT SATISFACTION OF DEVELOPER'S AFFORDABLE HOUSING
REQUIREMENT WILL BE BY THE PURCHASE OF AFFORDABLE
HOUSING CREDITS.
(a) Performance under this Agreement satisfies the Developer's obligation for
affordable housing under Chapter 21.85 of the Carlsbad Municipal Code as applied to the land
June 11,2002
covered by Carlsbad Tract No. 06-22_by reason of the approvals of the Tentative Map of CT 06-
22 including Condition No. Eleven (11) listed in Planning Commission Resolution No.6225, and
any other applicable approval.
(b) The Developer shall purchase two (2) Affordable Housing Credits for an amount
established by resolution of the City Council and as required by Condition No. Eleven (11) in
Planning Commission Resolution No. 6225. The fee shall be paid prior to the Developer
receiving any building permits for the project.
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. Eleven (11) of Planning Commission Resolution No. 6225. 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. CT 06-22.
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 against all loss, all risk of loss and all
damage (including attorneys' fees and expenses) sustained or incurred because of or by reason of
any and all claims, demands, suits, or actions, obtained, allegedly caused by, arising out of or
pertaining in any manner to Developer's actions or defaults pursuant to this Agreement, and shall
protect and defend Indemnitees, and any of them with respect thereto.
5. 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 address set forth below:
TO THE CITY:
City of Carlsbad
Housing and Redevelopment Department
Attn: Housing & Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, California 92008-2389
June 11, 2002
7
TO THE DEVELOPER:
BNR Investment and Development, LLC
23 800 Via Del Rio
Yorba Linda, CA 92887
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.
8. SUCCESSORS
This Agreement shall benefit and bind the Developer and any successive owners of
Affordable Housing Lots.
9. SEVERABIL1TY
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.
June 11,2002
$
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as
of the day and year first above written.
DEVELOPER CITY
City of Carlsbad, a Municipal corporation
By: <*~*- *vx>~" ' By:
Ram Setya Sandra L. Holder
Managing Member Community Development Director
By:
Name
Title
If required by City, proper notarial acknowledgment of execution by Developer 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
By:.
/Assistant City Attorney
June 11, 2002
CALIFORNIA ALL-PURPOSE ACKNOWLEDMENT
State Of California
County Of Orange
On
appeared
" P-1' ° 7 before me, Mayur R. Mody, a notary public, personally
I J
personally known to me or proved to me on the basis of satisfactory evidence to be
the person^ whose name(s) <Js/Jare~ subscribed to the within instrument and
acknowledged to me that^^shemrey executed the same in fu^/her/ttaeir authorized
capacity (ies), and that by<^/her/fn"eir signature(«)-T>n the instrument the person(s}~
or the entity upon behalf of which the person(s^cted, executed the instrument.
Witness my hand and official seal.MAYUR R. MODY I
Commission #1411398 I
Notary Public • California \
Orange County {
My Comm. Expires Apr 15,20071
(Optional)
Title/Type of the document: {V|V<ijA[
Document Date:
Number of Pages ^ — V (
Signer(s) other than named above
Signer's Capacity:
BNR INVESTMENT & DEVELOPMENT LLC
CERTIFIED RESOLUTION OF THE BOARD OF DIRECTORS
I Nilesh Desai do hereby certify that I am the duly elected and qualified Secretary and
record keeper of BNR Investment & Development LLC. a corporation organized under
State of California, and that following is a true and correct copy of certain resolutions
duly adopted at a meeting of the Board of Directors thereof, convened and held in
accordance with the law, the Charter, the Articles of Incorporation, and bylaws of the
corporation. The meeting took place on the 16th day of September 2005. The resolutions
are now in force and are included in the records of the cooperation.
It is resolved that Following officers listed below holding office of President, Vice
President and Chief Financial Officer are authorized to execute documents related to
projects pending with the City of Carlsbad on behalf of BNR Investment &
Development, LLC.
Ram Setya, President
Satinder V. Singh, Vice President
Nilesh Desai, Secretary/Chief Financial Officer
I also certify that this resolution is still in effect and has not been amended or revoked.
Nilesh Desai
Secretary
BNR Investment & Development, LLC.
This certification is dated September 16, 2005
23800 VIA DEL Rio* YORBA LINDA, CA 92887 <» TEL. 714-694-0657 » FAX. 714-692-9125 ,.
ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
June 11, 2002
Order No, 03-1325236
EXHIBIT "ONE"
Lots 392 and 393 of La Costa South Unit No. 5, in the City of Carlsbad, County of San
Diego, State of California, according to Map thereof No. 6600, filed in the Office of the
County Recorder of San Diego County, March 10, 1970.
Assessor's Parcel No: 216-300-12 & 216-300-13
Recording Requested by:
City of Carlsbad
When Recorded Mail to:
City of Carlsbad
City Clerk's Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad. California 92008
(Space above for Recorder's Use)
AFFORDABLE HOUSING AGREEMENT
THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into
day of (jiJJ.jiQ _ , 200_2_, by and between the CITY OF CARLSBAD, a municipal
corporation '(hereinafter referred to as the "City"), and BNR INVESTMENT AND
DEVELOPMENT a California limited liability company, (hereinafter referred to as the
"Developer"), is made with reference to the following:
RECITALS
A. Developer is the owner of certain real property in the City of Carlsbad, County of San
Diego, State of California, described in "Attachment A", which is attached hereto and
incorporated herein by this reference, and which is the subject of a Tentative Map CT 04-19
which provides conditional approval of the construction of fifteen (15) condominiums
("Project").
B. Chapter 21.85 of the Carlsbad Municipal Code requires that this Affordable Housing
Agreement shall be entered into between the City and the Developer as a means of satisfying the
Developer's affordable housing obligation ("Affordable Housing Obligation"), as such is defined
under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No.
6161 provides that the Affordable Housing Obligation of two (2) units will be satisfied by the
purchase of affordable housing credits, as provided for in Chapter 21.85, Section 21 .85.080.
NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the
mutual covenants contained herein, the parties agree as follows:
1 . That the Recitals Are True And Correct.
2. THAT SATISFACTION OF DEVELOPER'S AFFORDABLE HOUSING
REQUIREMENT WILL BE BY THE PURCHASE OF AFFORDABLE
HOUSING CREDITS.
June 11, 2002
(a) Performance under this Agreement satisfies the Developer's obligation for
affordable housing under Chapter 21.85 of the Carlsbad Municipal Code as applied to the land
covered by Carlsbad Tract No. 04-19 by reason of the approvals of the Tentative Map of CT 04-
19, including Condition No. Twelve (12) listed in Planning Commission Resolution No.6161,
and any other applicable approval.
(b) The Developer shall purchase two (2) Affordable Housing Credits for an amount
established by resolution of the City Council and as required by Condition No. Twelve (12) in
Planning Commission Resolution No.6161. The fee shall be paid prior to the Developer
receiving any building permits for the project.
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. Twelve (12) of Planning Commission Resolution No^ 6161. 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. CT 04-19.
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 against all loss, all risk of loss and all
damage (including attorneys' fees and expenses) sustained or incurred because of or by reason of
any and all claims, demands, suits, or actions, obtained, allegedly caused by, arising out of or
pertaining in any manner to Developer's actions or defaults pursuant to this Agreement, and shall
protect and defend Indemnitees, and any of them with respect thereto.
5. 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 address set forth below:
TO THE CITY:
City of Carlsbad
Housing and Redevelopment Department
Attn: Housing & Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, California 92008-2389
June 11,2002
TO THE DEVELOPER:
BNR Investment and Development, LLC
23 800 Via Del Rio
Yorba Linda, CA 92887
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.
8. SUCCESSORS
This Agreement shall benefit and bind the Developer and any successive owners of
Affordable Housing Lots.
9. SEVERABIL1TY
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.
June 11, 2002
Ho
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as
of the day and year first above written.
DEVELOPER CITY
City of Carlsbad, a Municipal corporation
Ram Setya Sandra L. Holder
Managing Member Community Development Director
By:
Name
Title
If required by City, proper notarial acknowledgment of execution by Developer 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
By:_
//Assistant City Attorney
June 11, 2002
n
CALIFORNIA ALL-PURPOSE ACKNOWLEDMENT
State Of California
County Of Orange
On
appeared
V • before me, Mayur R. Mody, a notary public, personally
personally known to me or proved to me on the basis of satisfactory evidence to be
the person(s^T whose name(sj (p/are subscribed to the within instrument and
acknowledged to me thatcfiWshWthey executed the same in |d$/her/tfaeir authorized
capacity (ies), and that byTus/he*/the1r signature(s)~on the instrument the person(s)—
or the entity upon behalf ofwhich the person(£}-ttcted, executed the instrument.
Witness my hand and official seal.
MAYUR R. MODY
Commission # 1411398
Notary PubHc - California
Orange County
My Comm. Expires Apr 15.2007
(Optional)
Title/Type of the document:
Document Date:\o(,
Number of Pages
Signer(s) other than named above ofj
Signer's Capacity:
BNR INVESTMENT & DEVELOPMENT LLC
CERTIFIED RESOLUTION OF THE BOARD OF DIRECTORS
I Nilesh Desai do hereby certify that I am the duly elected and qualified Secretary and
record keeper of BNR Investment & Development. LLC. a corporation organized under
State of California, and that following is a true and correct copy of certain resolutions
duly adopted at a meeting of the Board of Directors thereof, convened and held in
accordance with the law, the Charter, the Articles of Incorporation, and bylaws of the
corporation. The meeting took place on the 16th day of September 2005. The resolutions
are now in force and are included in the records of the cooperation.
It is resolved that Following officers listed below holding office of President, Vice
President and Chief Financial Officer are authorized to execute documents related to
projects pending with the City of Carlsbad on behalf of BNR Investment &
Development, LLC.
Ram Setya, President
Satinder V. Singh, Vice President
Nilesh Desai, Secretary/Chief Financial Officer
I also certify that this resolution is still in effect and has not been amended or revoked.
Nilesh Desai /•// /)
Secretary fUeJW ^A
BNR Investment & Development, LLC.
This certification is dated September 16. 2005
23800 VIA DEL Rio* YORBA LINDA, CA 92887 »J» TEL. 714-694-0657 * FAX. 714-692-9125
ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
June 11,2002
21700 Order No. 03-1819224
EXHIBIT "ONE"
Lots 35 and 36 of La Costa South Unit No. 1, in the City of Carlsbad, County of San
Diego, State of California, according to Map thereof No. 6117, filed in the Office of the
County Recorder of San Diego County, June 3, 1968.
Assessor's Parcel No: 216-170-14 & 216-170-15