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HomeMy WebLinkAbout2013-10-08; City Council; 21387; Request Purchase Housing Credit La Costa VistaCITY OF CARLSBAD - AGENDA BILL AB# 21,387 MTG. 10/8/13 REQUEST TO PURCHASE ONE AFFORDABLE HOUSING CREDIT TO SATISFY INCLUSIONARY HOUSING REQUIREMENTS FOR THE LA COSTA VISTA CONDOMINIUM PROJECT DEPT. DIRECTOR {Ap^ AB# 21,387 MTG. 10/8/13 REQUEST TO PURCHASE ONE AFFORDABLE HOUSING CREDIT TO SATISFY INCLUSIONARY HOUSING REQUIREMENTS FOR THE LA COSTA VISTA CONDOMINIUM PROJECT CITY ATTORNEY Ml DEPT. CED REQUEST TO PURCHASE ONE AFFORDABLE HOUSING CREDIT TO SATISFY INCLUSIONARY HOUSING REQUIREMENTS FOR THE LA COSTA VISTA CONDOMINIUM PROJECT CITY MANAGER RECOMMENDED ACTION: That the City Council adopt Resolution No. 2013-241 approving a request from D.S. Products to purchase one affordable housing credit to satisfy the City's Indusionary Housing requirements for the La Costa Vista Condominium project. ITEM EXPLANATION: The City Coundl has designated the Cassia Heights Apartments development as a Combined Affordable Housing Project under the City's Indusionary Housing Program. It provides 56 units of affordable housing which represent "housing credits" that may be purchased by future housing developers in the southeast quadrant ofthe City to satisfy their Inclusionary Housing obligations. At the discretion of the City Coundl, the credits may be sold at a price set by the Coundl. The current credit price for a Cassia Heights unit is $57,465. The La Costa Vista Condominium project is proposed as a 7 unit condominium project on the northern end of Jerez Court. The project is eligible to purchase credits in the Cassia Heights development because it is located in the southeast quadrant of the City, and is a relatively small development from an affordable housing perspective. Because of the small size of the project and the difficulty in obtaining finandng, D.S. Products has elected to pursue the purchase of an affordable housing credit rather than constructing an affordable unit on the site of their market rate units. The City Council has adopted Policies No. 57 and 58 that govern the sale of affordable housing credits. The policies require the examination ofthe 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 Housing Policy Team (staff) has reviewed the above request and utilized the criteria contained in the policies in making their recommendation to approve the purchase of the credits for the La Costa Vista development. The Planning Commission has also reviewed the request and recommended approval ofthe credit purchase. FISCAL IMPACT: Funds from the purchase of one affordable housing credit from the Cassia Heights development would currently result in the payment of approximately $57,465 to the City's Housing Trust Fund for use in the development of affordable housing. This amount is adjusted based on changes to the Consumer Price Index. DEPARTMENT CONTACT: Frank Boensch 760-434-2818 frank.boensch(5)carlsbadca.gov FOR CITY CLERKS USE ONLY. X COUNCIL ACTION: APPROVED X CONTINUED TO DATE SPECIFIC • DENIED • CONTINUED TO DATE UNKNOWN • CONTINUED • RETURNED TO STAFF • WITHDRAWN • OTHER-SEE MINUTES • AMENDED • Page 2 ENVIRONMENTAL REVIEW: 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. 2013-241 approving a request from D.S. Products to purchase one affordable housing credit to satisfy the City's Inclusionary Housing requirements 2. Affordable Housing Agreement with D.S. Products. 7^ &)ClrMb|+ \ 1 11 12 13 23 24 25 26 27 28 RESOLUTION NO. 2013-241 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A REQUEST BY D.S. PRODUCTS, INC., TO PURCHASE ONE AFFORDABLE HOUSING CREDIT IN THE CASSIA 4 HEIGHTS PROJECT IN ORDER TO SATISFY THE INCLUSIONARY HOUSING REQUIREMENTS OF THE LA COSTA VISTA 5 CONDOMINIUM PROJECT CASE NO: CT 11-02 6 7 The City Coundl of the City of Carlsbad, California, does hereby resolve as 8 follows: ^ WHEREAS, D.S. Products, Inc., has received approval of Tentative Map CT 11-02 10 for the development of a 7 unit residential development; and WHEREAS, D.S. Products, Inc., requested approval from the City of Carlsbad City Coundl for the purchase of one affordable housing credit in the Cassia Heights housing project 14 to satisfy the inclusionary housing requirement of Tentative Map CT 11-02; and 15 WHEREAS, the City Coundl did hold a public meeting to consider said request for the purchase ofthe Affordable Housing Credit by D.S. Products, Inc.; and 17 WHEREAS, at said public meeting, upon hearing and considering all testimony, if 18 any, of all persons desiring to be heard, said Coundl considered all factors relating to the 19 20 application and request to purchase the Affordable Housing Credit. 21 NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Coundl of the City of 22 Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. The project is consistent with the goals and objectives of the City of Carlsbad's Housing Element, the Indusionary Housing Ordinance, and the Carlsbad General Plan. 1 3. Based upon the analysis contained within the related City Council Staff 2 Report, the City Council finds that the off-site satisfaction of the indusionary housing 3 requirement is in the public interest. 4 4. That based on the information provided within the City Coundl Staff 5 Report and testimony presented during the public meeting of the City Council, the City Council 6 7 hereby approves a request by D.S. Products, Inc. to purchase one affordable housing credit in 8 the Cassia Heights housing project in order to satisfy the inclusionary housing requirement of La Costa Vista Condominiums (CT 11-02). 5. That the City Council hereby authorizes the Housing and Neighborhood Services Director to execute the Affordable Housing Agreements in substantially the form presented to the City Council as Exhibit 2 of the City Coundl Staff Report and to execute such 14 other documents, or take other actions as may be necessary or appropriate to assist the 15 developer in acquiring the Affordable Housing Credit. 16 17 /// 18 /// 19 9 10 11 12 13 20 21 22 23 24 /// 27 28 /// /// /// /// 25 /// 26 /// •2- PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Coundl of the City of Carlsbad on the 8th day of October, 2013, by the following vote to wit: AYES: NOES: ABSENT: Coundl Members Hall, Wood, Blackburn, Douglas. None. Council Member Packard. 9 10 11 12 13 14 15 16 17 l: 19 20 21 22 23 24 25 26 27 28 lALL, Mayor ATTEST: BARBARA ENGLESCXW, City Clerk Recording Requested bv: City of Carlsbad When Recorded Mail to: City of Carlsbad City Clerk's Office Attn: City Clerk 1200 Carlsbad Village Drive Carlsbad. Califomia 92008 (Space above for Recorder's Use) AFFORDABLE HOUSING AGREEMENT (Purchase of Credits) THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this <^'#\ day of October" , 20/3 , by and between the CITY OF CARLSBAD, a municipal corporation ("City") and D.S. Products, Inc., ("Developer"), a Califomia S Corporation with Robert L. Sfreddo as the Only Shareholder, 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 Califomia, described in "Exhibit A", which is attached hereto and incorporated herein by this reference, and which is the subject of a Tentative Map (CT 11-02), which provides conditional approval of the constmction of seven dwelling units ("Projecf). 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 defmed under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. 6902 provides that the Affordable Housing Obligation of one unit ("Affordable Housing Obligation") will be satisfied by the purchase of an affordable housing credit, 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 tme and correct. 2. THAT SATISFACTION OF DEVELOPER'S AFFORDABLE HOUSING REQUIREMENT WILL BE BY THE PURCHASE QF AFFORDABLE HOUSING CREDIT. (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. 11-02 by reason of the approvals of the Tentative Map of CT 11- 02, including Condition No. 15 of Planning Commission Resolution No. 6902, and any other applicable approval. 1 CA 2/5/2013 (b) The Developer shall purchase one (1) affordable housing credits in the Villa Loma and/or Cassia Heights Affordable Housing developments (within the Southwest/Southeast Quadrant ofthe City of Carlsbad), based on availability, for an amount established by resolution ofthe City Council and as required by Condition No. 15 of Planning Commission Resolution No. 6902 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 permits for the project. The subject housing credits will be reserved for said Developer for no longer than (2) years following City Council 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. 15 of Planning Commission Resolution No. 6902. 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. 11-02. 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. 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: TQ THE CITY: City of Carlsbad Housing & Neighborhood Services Department Attn: Housing & Neighborhood Services Director 1200 Carlsbad Village Drive Carlsbad, Califomia 92008 TQ THE DEVELOPER: D.S. Products, Inc. Attn: Robert L. Sfreddo 24 Amberleaf Irvine, CA 92614 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. 2 CA 2/5/2013 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 QF 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. // // // // // // INTENTIONALLY LEFT BLANK // // // // // // // // // // // CA 2/5/2013 // // 9. SEVERABILITY 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 ftill force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of fhe day and year first above written. CITY OF CARLSBAD Title: Debbie Fountain, Housing and Neighborhood Services Director Dated: By: Dated Name: Title: .^rjt&TAjty Dated: (Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant treasitrer 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, Gity Attomey By: ^ ( i / t V # JaneriMobaldi, Assistant City Attomey Dated: CA 2/5/2013 EXHIBIT A LEGAL DESCRIPTION QF PROPERTY Lot 365 of La Costa South Unit No. 5, in the County of San Diego, State of Califomia, according to Map thereof No. 6600 filed in the Office of the County Recorder of San Diego County, March 10,1970. CA 2/5/2013 jO CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § ii89 State of Califomia } County of islJ^Qy"^' ^^^f— On 9-3' before me, Ade/kiJ^ A") € /Wf Z Date ^ Here Insert Name personally appeared nnbeh4 A- S>^r e^:^C^t:) Here Insert Name and Title of the Officer Name(s) ot Signer(s) AOEUiOA MENOEZ Commission # 1984719 Notary Public - California Orange County My Comm. Expires Aug 8, 20161 who proved to me on the basis of satisfactory evidence to be the person(^ whose name^s) is/are- subscribed to the within instrument and acknowledged to me that he/§h€/Jbey executed the same in his/h^/tb©ir authorized capacityXies^ and that by his/ber/tbelf signature^sf on the instrument the personj^s), or the entity upon behalf of which the person(^acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal Place Notary Seal Above Signature: OPTIONAL — Signature of Notary Public Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document / / /O /• Title or Type of Document: d^/l/C. ^^i^L-m-^ /T^^ K CJ^^L£,e-^n^J^^--^r~' Document Date: TNumber of Pages:. Signer(s) Other Than Named Above: TlcT} ^-^—- Capaclty(les) Claimed by Sig/ier(s Signer's Name • Corporate Officer — Title(s): ^J^lndivldual I Claimed by Signer(s| , Signer's Name: • Partner — • Limited • General • Attorney in Fact • Trustee • Guardian or Consen/ator n Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER Top of thumb here n Corporate Officer — Title(s): • Individual • Partner — • Limited • General • Attorney in Fact • Trustee • Guardian or Conservator n Other: Signer Is Representing: RIGHTTHUMBPRINT OF SIGNER Top of thumb here © 2010 Nafional Notary Assocfation • NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 // 24 AMBERLEAF IRVINE, CA. 92614 DEAR SIR, D.S.PRODUCTS,INC. IS A CALIFORNIA S CORPORATION THAT WAS INCORPORATED ON APRIL 2,198L I, ROBERT L. SFREDDO, AM THE ONLY SHAREHOLDER, THE ONLLY DIRECTOR OF THE CORPORATION AND THE PRESIDENT, CFO AND SECRETARY OF THE CORPORATION. THE CORPORATION HAS NO EMPLOYEES. I AM AUTHORIZED TO SIGN ALL DOCUMENTS FOR THE CORPORATION AS WELL AS ENCUMBER THE CORPORATION IN ANY ACTIVITIES. R. L. SFJ(EDDO PRESIDENT D.S.PRODUCTS,INC. DATE