HomeMy WebLinkAbout2013-08-27; City Council; 21335; Taylor Morrison Affordable Housing CreditsCITY COUNCIL - AGENDA BILL
AB# 21.335 Request from Taylor Morrison of
California, LLC, to purchase affordable
housing credits in the Cassia Heights
Combined Affordable Housing
Development
DEPT. DIRECTOR<^i(!J/
MTG. 8/27/13
Request from Taylor Morrison of
California, LLC, to purchase affordable
housing credits in the Cassia Heights
Combined Affordable Housing
Development
CITY ATTORNEY Wjf
DEPT. CED
Request from Taylor Morrison of
California, LLC, to purchase affordable
housing credits in the Cassia Heights
Combined Affordable Housing
Development
CITY MANAGER j/'^j^
RECOMMENDED ACTION:
That the City Council ADOPT Resolution 2013-205 APPROVING a request from
Taylor Morrison of California LLC. to purchase a total of six (6) affordable housing credits in the Cassia
Heights combined affordable housing development in order to satisfy the inclusionary housing obligation
for the La Costa Residential (CT 12-05 and PUD 12-07) single family home development within the
southeast quadrant of the City.
ITEM EXPLANATION:
On May 24, 2011, the City Council agreed to designate the Cassia Heights Apartments as a Combined
Affordable Housing Project under the City's Inclusionary Housing Program. It provides 56 units of
housing affordable to lower income households. These units represent "housing credits" that may be
purchased by future housing developers in the southeast and southwest quadrant of the City to satisfy
an Inclusionary Housing obligation. At the discretion ofthe City Council, the credits may be sold at a
price set by the City Council. The current credit price for the subject units is $57,465 and there remain
30 credits that have not been reserved or purchased to date.
On May 1, 2013, Taylor Morrison of California received approval of a Tentative Tract Map (CT 12-05),
Planned Development Permit (PUD 12-07) and a Variance (V 12-02) to subdivide a 9.96 acre property
located on the northwest corner of Paseo Lupino and Rancho Santa Fe Road into 41 tots that witl
include 32 detached single family homes, 5 open space lots, 1 private street and 3 private driveways.
The project is eligible to purchase credits in the Cassia Heights combined affordable housing
development because the project is located in the southeast quadrant of the City, and represents a small
development from an affordable housing perspective.
Because of the small size of the project and the difficulty in obtaining financing, the applicant has elected
to pursue the purchase of affordable housing credits rather than constructing units on the site of their
market rate development. 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 project, and the Planning Commission supports and recommends
approval of the purchase of affordable housing credits to satisfy the project's inclusionary housing
obligation.
DEPARTMENT CONTACT: Debbie Fountain 760-434-2815; debbie.fountain(@carlsbadca.qov
FOR CITY CLERKS USE ONLY. 1 ^
COMMISSION ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED •
Page 2
FISCAL IMPACT:
The Affordable Housing Credit price for the Cassia Heights combined affordable housing development is
currently $57,465 per credit. Taylor Morrison is required to purchase a total of 6 credits. This action
would result in a payment of a minimum of $344,790 to the City's Housing Trust Fund. These funds will
be used to assist in the development of future affordable housing projects as well as programs to
provide housing assistance to low income households, as appropriate. It should be noted that the
developer/builder will pay the credit price in effect at the time that building permits are approved for the
subject development. The housing credit price for Cassia Heights Apartments has an annual escalator
based on the Consumer Price Index (CPI). It is likely that the developer/builder will pay more than
$57,465 per housing credit, depending upon the schedule for development.
ENVIRONMENTAL IMPACT:
Pursuant to Public Resources Code Section 21065, this action does not constitute a "project"
within the meaning of CEQA in that it has no potential to cause either a direct physical change
in the environment, or a reasonably foreseeable indirect physical change in the environment,
and therefore does not require environmental review.
EXHIBITS:
1. City Council Resolution No. 2013-205 approving purchase of six (6) affordable housing credits
in the Cassia Heights combined affordable housing development by Taylor Morrison to satisfy the
Inclusionary Housing obligations for the approved market-rate development.
2. Affordable Housing Agreement to purchase housing credits
2
EXHIBIT 1
1 RESOLUTION NO. 2013-205
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A REQUEST BY TAYLOR MORRISON OF
CALIFORNIA, LLC TO PURCHASE 6 AFFORDABLE HOUSING CREDITS
4 IN THE CASSIA HEIGHTS COMBINED HOUSING PROJECT IN ORDER
TO SATISFY THE AFFORDABLE HOUSING OBUGATION OF ITS
HOUSING DEVELOPMENT UNDER THE CITY'S INCLUSIONARY
HOUSING ORDINANCE.
CASE NO.: CT 12-05
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6
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JQ homes); and
WHEREAS, the housing devetopment identified by Tentative Map CT 12-05 has
received approvat by the Planning Commission for a total of 32 market rate units (single family
11 WHEREAS, said devetopment has requested approvat from the City of Carlsbad
City Council for the purchase of a total of 6 affordable housing credits in the Cassia Heights
13
combined affordable housing project to satisfy the inclusionary housing requirement of said
14
Tentative Map; and
15
WHEREAS, the City Council did hold a public meeting to consider said request for
17 the purchase of Affordable Housing Credits by said devetopment; and
18 WHEREAS, at said public meeting, upon hearing and considering all testimony, if
any, of att persons desiring to be heard, said Council considered alt factors relating to the
application and request to purchase Affordable Housing Credits:
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
Cartsbad, California, as follows:
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24 1. That the above recitations are true and correct
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2. The Council hereby approves the developer request to purchase credits in
25 the Cassia Heights affordable combined project and finds the credit purchase to be consistent
with the goats and objectives of the City of Cartsbad's Housing Etement, the Inclusionary
27 Housing Ordinance, and the Carlsbad General Plan.
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1 3. Based upon the anatysis completed by the City's Housing Policy Team,
Planning Commission and summarized within the City Council Staff Report, the City Council
fmds that the off-site satisfaction ofthe inclusionary housing requirement through purchase of
3 credits is in the public interest.
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5
4 4. That based on the information provided within the City Council Staff Report
and testimony presented during the public meeting ofthe City Council, the City Council hereby
APPROVES the request by the developer of the noted housing devetopment (CT12-05) to
5 purchase 6 affordable housing credits in the Cassia Heights combined affordable housing
devetopment in order to satisfy the affordable housing obtigations of the housing devetopment
7 under the city's inclusionary housing ordinance.
g
5. That the City Council authorizes the Housing and Neighborhood Services
9 Director to execute a standard Affordable Housing Agreement with Taylor Morrison of
California, LLC which wilt allow the developer/builder to purchase 6 housing credits in the
10 Cassia Heights combined affordable housing devetopment as set forth within this resolution,
^ ^ and subject to review and final approvat by the City Attorney.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 27*^ day of August, 2013, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Blackburn and Douglas.
None.
ABSENT: None.
ATTEST:
BARBARA ENGLESON, Cfty Clerk
mSMBf^i^-REDEt/. '13 Jill ^
Recordmg Requested bv:
City of Carlsbad
When Recorded Mail to:
City ofCarlsbad
City Clerk's Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad, Califomia 92008
(Space above for Recorder's Use)
AFFORDABLE HOUSING AGREEMENTvl
(Purchase of Credits)
THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this
28th day of August , 2013, by and between the CITY OF CARLSBAD, a municipal
corporation ("City") and Taylor Morrison of Califomia, LLC ("Developer"), a limited liability
corporation, 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 "Exhibit A", which is attached hereto and incorporated
herein by this reference, and which is the subject ofa Tentative Map (CT 12-05), which provides
conditional approval ofthe construction of 32 single-family dwelling units ("Project").
B. Chapter 21.85 ofthe Carlsbad Municipal Code requires that this Agreement shall be
entered into between the City and the Developer as a means of satisfying the Developer's
affordable housing obligation, as such is defined under Chapter 21.85 of the Carlsbad Mimicipal
Code. Planning Commission Resolution No. 6967 provides that the Affordable Housing
Obligation of six (6) units ("Affordable Housing Obhgation") 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. The Recitals are true and correct.
2. THAT SATISFACTION OF DEVELOPER^S AFFORDABLE HOUSING
REOUIREMENT WILL BE BY THE PURCHASE OF AFFORDABLE
HOUSING CREDITS.
(a) Performance under this Agreement satisfies the Developers' obligation for
affordable housing under Chapter 21.85 of the Carlsbad Municipal Code as applied to the land
covered by Carlsbad Tract No. 12-05 by reason of the approvals of the Tentative Map of CT 12-
05, including Condition No. 12 of Planning Commission Resolution No. 6967, and any other
applicable approval.
1 C A 2/5/2013
(b) The Developer shall purchase six (6) affordable housing credits in the Cassia
Heights Affordable Housing development (within the Southwest/Southeast Quadrant of the City
of Carlsbad), based on availabihty, for an amount established by resolution of the City Coimcil
and as required by Condition No. 12 ofPlanning Commission Resolution No. 6967 no later than
two (2) years following City Council approval of this Agreement. The credit fee shall be paid
prior to the Developer receiving any building pennits for the project. The subject housing credits
will be reserved for said Developer for no longer than (2) years following City Coimcil approval
of this Agreement. If the Developer does not purchase the subject credits within two (2) years of
the date of this Agreement, the City shall make the credits available to one or more altemate
developers and the Developer for this Agreement shall then be required to satisfy its inclusionary
obligation through altemate methods as approved by the City.
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. 12 of Planning Commission Resolution No. 6967. 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. 12-05.
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 defauhs pursuant to this Agreement, and shall
protect and defend Indemnitees, and any of them with respect thereto. This provision shall
survive the term of this Agreement.
5. NOTICES
All notices required pursuant to this Agreement shall be in writing and may be given by
personal delivery or by registed or certified mail, retum receipt requested to the party to receive
such notice at the address set forth below:
TO THE CITY: City of Carlsbad
Housing & Neighborhood Services Department
Attn: Housing & Neighborhood Services Director
1200 Carlsbad Village Drive
Carlsbad, Cahfomia 92008
TO THE DEVELOPER: Taylor Morrison of California, LLC
Attn: April Tornillo
8105 Irvine Center Drive, Suite 1450
Irvine, Ca. 92618
CA 2/5/2013
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 ofany applicable ordinance
which act would render the Affordable Housing Obhgation unnecessary or unenforceable.
8. SUCCESSORS
This Agreement shall benefit and bind the Developer and any successive owners of
affordable housing lots.
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CA 2/5/2013
u
9. SEVERABILITY
In the event any provision contained in this Agreement is to be held invahd, void or
unenforceable by any court of competent jurisdiction, the remaining provisions of this Agreement
shall nevertheless, be and remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as
of the day and year first above written.
DEVELOPER
Bv:
Title: V f
— o Dated:
By: _
(3
Name:
Title: .
Dated:
By:
OFCARLSBAD
Debbie Fountain, Housing and
Neighborhood Services Director
Dated: 8 13
(Chairman, president or vice-president and secretary, assistant secretary}, CFO or assistant
treasurer must sign for corporations. Otherwise, the corporation must attach a resolution
certified by the secretary or assistant secretary under corporate seal empowering the office(s)
signing to bind the corporation.)
(If signed by an individual partner, the partnership must attach a statement of partnership
authorizing the partner to execute this instrument.)
(Proper notarial acknowledgment of execution by Contractor must be attached.)
APPROVED AS TO FORM:
Celia A. Brewer^CiW-Attomey
baldi, Assistant City Attomey
Dated:
C A 2/5/2013
CALIFORNIA ALL-PURPOSE
CERTIFICATE OF ACKNOWLEDGMENT
State of Califomia
Countv of
{) n before me. Ri^.W^X^ Nail, Mo^U 1^^^^^
{11 ff c iiKst'rl inimc und lillc til^ic ollker)
personally appeared Bryi^vv> n^ri K^r^ Floret
who proved to me on the basis of satisfactory evidence to be the person{s) whose name(s)i^are subscribed to
the vvithin instrument and acknowledged to me thatyKe/sHe/they executed the same in hi^b<if/their authorized
capacity{ies). and thai by l)*</la€r/their signalure(s) on the instrument the person(s). or the entity upon behalf of
which the pcrson(s) acted, executed thc instrument.
I certify under PENALTY OF PERJURY underthe laws ofthe State of California thatthe foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
Sitill.ilun. crNolaiA I'lihlii.
(Notary Scul)
REBECCA NALL
Commission # 1940931
Notary Public - Califomia
\
Orange County p
Mv Comm. Expires Jul 11.20151
ADDITIONAL OPTIONAL INFORMATION
D[:S(1<IPT10\' OF Tl II- ATI ACMED DOCUMl-N I
(Title «)r ck'scf iplion oralfiicheiLnociimcnl)
{Title i>r descriptiiin tifaltachcd docunieni conlinucd)
Number of Paues Document Date
(Additional inforiTialion)
CAPACI TY CLAIMED BY THE SIGNER
LJ individual (s)
11 rorponite OfTiccf
t Tide)
Partner! s)
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rrustee(s)
Other
INSTRUCTIONS FOR COMPLETING THIS FORM
.•\ny ticknmvleifgnient compkied in Culi/oniiii nuisl conlain verbiage exactly <K
iippears tthave in lhe noitirv siu fiaii or a xepaniie lu kiimr/i'tignu'nl fimn ntii.it he
properly lunipleted ami altaclieJ to Ilia/ (hciinieiif. The only e.xceplitm is if a
(lacimieni /.y lo he reconleil ont.side of California. In such instance.t any alierinilive
ackiumleilginenl verbiage as may he primed on such a document so long as the
verhhige does not reipiire iJie nolary fo do .wineihing thai is illegal for a nolaiy in
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2m% Vvi.sionCAPA v l2 iO (*7 80()-S7.U'>K65 wwwNotarvClasse^com
EXHIBIT A
LEGAL DESCRIPTION QF PROPERTY
APN: 223-050-71
Parcel 1 as shown on that certain Parcel Map No. 20982 in the Office of the County
Recorder of San Diego County, State of California.
CA 2/5/2013
1
CERTIFICATE OF INCUMBENCY AND AUTHORITY
TAYLOR MORRISON OF CAUFORNIA, LLC
I, the undersigned, hereby certify as follows:
1. I am the Assistant Secretary of Taylor Morrison of Califomia, LLC, a Califomia limited
liability company (the "LLC").
2. Stephen J. Wethor is the Manager of the LLC ("Manager").
3. Pursuant to authority granted under the Operating Agreement of the LLC, the Manager
has exercised his option to appoint officers of the LLC.
4. The following are current officers of the LLC:
Stephen J. Wethor
S. Michelle Bassett
Stephen .T. Wethor
David M. Corley
K. Dar Ahrens
Aren A. Bazzocco
Charles W. Chamberlain
David C. Jackson
James E. Jimison
Philip S. Bodem
J. Thomas Baine
*Also serves as (he Manager of the
President*
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
LLC
Robert T. Morandi
Stephen J. Wolpin
Darrell C. Sherman
Stephen J. Wethor
Darrell C. Sherman
Caroline G. Estrada
S. Todd Merrill
David M. Corley
Vice President
Vice President
Vice President
Treasurer
Secretary
Asst. Secretai'y
Asst. Secretary
Asst. Treasurer
5, It is within the scope of authority of the Manager, the President or any Vice President to
execute documentation on behalf of the LLC, including without limitation, contracts or
amendments to contracts, and any documents (including amendments) associated with those
contracts, bonds and security instruments, applications for utilities and permits, and documents
(including deeds) to convey real and personal property.
[Signature appears on next page.:
IN WrrNESS WHEREOF, I hereunto subscribe my name on September 20,2010.
Caroline G. Estrada
Assistant Secretary
STATE OF ARIZONA
COUNTY OF MARICOPA
This instrument was acknowledged before me on September 20, 2010, by Caroline G, Estrada,
Assistant Secretary of Taylor Morrison of Califorma, LLC on behalf of said entity. She is
personally known to me.
otary Public - State of Arizona
OFFICtAtSEAU NADIACEDWARC^ mim PUBUC - St«e d Arliona
MARICOPA COUNTY My Comm. &cptfes Wayp.2014