HomeMy WebLinkAbout2020-04-14; City Council; ; Report on the Carlsbad Housing Trust FundMeeting Date: April 14, 2020
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff contact: David de Cordova, Housing Services Manager
david.decordova@carlsbadca.gov, 760-434-2935
Subject: Report on the Carlsbad Housing Trust Fund
Recommended Action
Receive a report on the Carlsbad Housing Trust Fund and provide direction to staff, as
applicable.
Executive Summary
The Carlsbad Housing Trust Fund has been used successfully to provide assistance to lower
income and homeless individuals and families for more than 20 years. The fund has provided
financial support to an array of new affordable housing construction and supportive housing-
related services.
On May 14, 2019 (Exhibit 1), the City Council directed the city manager to place an agenda item
to discuss the Housing Trust Fund and consider potential policy changes as to its use. The
information in this report is intended to provide background on how the trust fund was
created, its primary funding sources and what affordable housing projects and services have
been implemented using the fund to help the City Council determine what, if any policy
modifications are needed.
After the May 14, 2019, minute motion, the City Council adopted three additional minute
motions related to the inclusionary housing in-lieu fee, housing credit purchases and
consideration of an inclusionary housing policy specific to the Village and Barrio Master Plan
area (Exhibit 8). An agenda item to discuss these minute motions is currently scheduled for the
May 5, 2020, City Council meeting.
Discussion
Background
The city’s Inclusionary Housing Ordinance (Exhibit 2) was established in April 1993 and requires
that all residential developments greater than six units restrict 15 percent of the total number
of homes in a project as affordable to low-income households. This obligation is fulfilled
through construction of a variety of rental or ownership units, both on and off-site. Some
developments have the option to satisfy a portion of or all of their affordable housing
April 14, 2020 Item #9 Page 1 of 59
obligation through payment of inclusionary housing in-lieu fees or affordable housing credit
purchases.
For the city to receive and use these fee payments, an implementation mechanism was needed
to ensure that the funds collected were applied appropriately. As a result, the Housing Trust
Fund was established to confirm that fees collected were applied only towards the affordable
housing needs of lower-income households, and for reasonable costs of administration
consistent with the purposes of the Inclusionary Housing Ordinance. The Housing Trust Fund
significantly contributes to the success of the city’s inclusionary housing program. To date,
roughly 2,300 affordable housing units have been provided through implementation of the
Inclusionary Housing Ordinance, and, in many instances, financial assistance from the Housing
Trust Fund.
Revenue sources
Over the last 20 years, deposits to the Housing Trust fund have totaled about $39.5 million. The
table and chart below show the varying revenue sources and the total revenues by source
between fiscal year 1999-00 and fiscal year 2018-19. Revenues come primarily from residential
development activity, loan repayments and interest income. No General Fund money is
deposited to the Housing Trust Fund.
Interest from Loans
$11.8M
30%
Housing Credits
$8.6M
22%
Interest
$6.1M
15%
In-Lieu Fees
$1.7M
4%
Impact Fees
$3.2M
8%
Transfers
$3.5M
9%
Fed & State Grants
$3.1M
8%
Admin Fees
$1.3M
3%
Other
$.2M
1%
HOUSING TRUST FUND REVENUES
FY 1999/00-FY 2018/19
April 14, 2020 Item #9 Page 2 of 59
Fund receipts vary from year to year, but generally average between $1-2 million annually.
Revenues spiked in fiscal years 2003-04 and 2004-05 due to a large number of loan pay-offs of
affordable ownership units (~ $1.5M), large housing credit fee payments ($870K), federal grants
received ($537K), and a property sale ($301K). Revenues spiked again in 2011/12 and 2012/13
because of several large housing credit fee payments (~ $2.5M), the transfer of the Tyler Court
Senior Apartments reserves from the former Carlsbad Redevelopment Agency ($2.1M), and a
federal grant receipt ($780K).
As mentioned, there are several sources for Housing Trust Fund revenue. The following section
discusses three of them: the Inclusionary Housing Impact Fee, the Inclusionary Housing In-lieu
Fee, and Affordable Housing Credit Purchases.
• Inclusionary Housing Impact Fee
In September 1993, the City Council established the Inclusionary Housing Impact Fee
(Exhibit 3). The fee was applied to project applications that had been approved,
tentatively approved, or were deemed complete prior to the effective date of the
Inclusionary Housing Ordinance. The Inclusionary Housing Impact fee was set at $2,925
per unit. Through this fee, approximately $3.2 million has been deposited into the
Housing Trust Fund during the 20-year period analyzed in this report. As the number of
eligible pre-inclusionary ordinance lots has phased out over time, so has revenue from
this fee, averaging approximately $14,400/yr. over the five-year period 2014 through
2018. (There were no inclusionary housing impact fees received in 2019.)
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
MillionsRevenue
HOUSING TRUST FUND
Annual Revenues
FY 1999/00-FY 2018/19
S…
April 14, 2020 Item #9 Page 3 of 59
• Inclusionary Housing In-lieu Fee
The Inclusionary Housing Ordinance provides that residential projects of six or fewer
dwelling units may satisfy the inclusionary requirement through payment of an in-lieu
fee to the city (CMC 21.85.110 – Exhibit 2). In September 1993, the City Council
established the Inclusionary Housing In-lieu fee for project applications submitted after
the effective date of the Inclusionary Housing Ordinance (Exhibit 4). The fee was initially
set at $11,485.46 per market rate unit. However, the fee was recalculated in 1996 based
on 15 percent of the city’s per unit subsidy for the Villa Loma Apartment community
($30,100), resulting in a reduction of the fee to $4,515 per market rate unit (Exhibit 5).
The fee amount has remained unchanged since. Through this fee, about $1.7 million has
been deposited into the Housing Trust fund during the 20-year period analyzed in this
report. This fee will continue to generate revenue to the Housing Trust Fund over time.
• Affordable Housing Credit Purchases
The Inclusionary Housing Ordinance also provides for sale of inclusionary housing
“credits” under circumstances where an affordable housing project is constructed and
results in more affordable units than is required by the Inclusionary Housing Ordinance
(CMC 21.85.090). When the city participates financially in an affordable housing project
by loaning city funds, such as from Housing Trust Fund, Community Development Block
Grants or other sources, any “excess” affordable units can be made available to other
developments in the form of housing credit purchases. The sale of housing credits was
established by City Council Policy No. 58 (Exhibit 6). The housing credit price is
calculated by dividing the city’s total subsidy, or loan, by the number of excess
affordable units in the project and adjusted for inflation or accrued interest on the city
loan. The credits are available to projects that are proposed to be constructed within
the quadrant or a quadrant contiguous to the affordable housing project site which
generated the excess affordable units.
The revenue from the sale of affordable housing credits is deposited into the Housing
Trust Fund. This revenue is in addition to the revenue deposited into the Housing Trust
Fund from the repayment of principal and accrued interest on city funds loaned to an
affordable housing project.
As an example, the first such housing credit fee was created from the city’s financial
participation in the 344-unit Villa Loma apartment community in 1995. The per unit
credit was initially set at $28,000 by dividing the subsidy amount ($4.1M city funds +
$0.9M developer contribution) by the 184 excess affordable housing units created in the
project. Those credits were then purchased to satisfy inclusionary requirements of other
residential developments in the southwest and southeast quadrants.
Since that time, the City Council approved affordable housing credit purchases for other
city-assisted projects: Cassia Heights, Roosevelt Gardens and Tavarua Senior
Apartments. Collectively, these affordable housing credit purchases have resulted in
about $8.6 million in deposits to the Housing Trust Fund during the 20-year period
analyzed in this report.
April 14, 2020 Item #9 Page 4 of 59
Uses of Funds
The Housing Trust Fund is used to support a variety of affordable housing development and
services for lower income and homeless individuals and families. As a local fund, there is great
flexibility in how Housing Trust Fund money is spent, provided expenditures are consistent with
the purposes of the Inclusionary Housing Ordinance and the policies and programs in the
General Plan Housing Element. The Housing Trust Fund is programmed through the annual
budget appropriation process and at other times during the year as (for-profit or non-profit)
developer requests to assist affordable housing are made, and as other assistance needs arise.
• Affordable Housing Development
Historically, the Housing Trust Fund is predominantly used to subsidize the construction
of new affordable housing in Carlsbad. Over the years, about $29.8 million from the
Housing Trust Fund has been distributed to support land acquisition, predevelopment
and construction costs for affordable housing. Money from the Housing Trust Fund is
often leveraged by other local and non-local sources of subsidy: Community
Development Block Grants, the HOME federal funding program, the city Low and
Moderate Income Housing Fund; federal and state low income housing tax credits and
others. Exhibit 7 identifies residential projects that have been assisted by the city’s
Housing Trust Fund over the past 20 years.
Financial assistance from the Housing Trust Fund is typically made in the form of long-
term loans of 30 to 55 years at an interest rate of generally not more than three
percent. Loan repayment requirements will vary by type of assistance. For example,
repayment of principal and interest of first-time homebuyer loans are usually deferred
for 15 or even 30 years, unless the home is sold. Repayments on loans to multi-family
rental projects are amortized over the loan term, and are usually made on a surplus
cash basis, that is, annual gross revenue minus annual operating expenses. At the end of
the loan term or upon sale or transfer of the property, any remaining principal and
accrued interest becomes due and payable at that time.
As of the beginning of 2020, the Housing Trust Fund has an available cash balance of
$17.8 million. On Jan. 28, 2020, the City Council committed a total of $8.3 million to the
Windsor Pointe affordable housing project, approximately half of which will come from
the available Housing Trust Fund balance. There are potential near-term assistance
requests for two combined inclusionary housing projects totaling approximately $8.5
million (Aviara Apartments and Oaks West Apartments). Permits for these projects are
being processed and have not been approved, and these projects have not received any
funding commitments from the city to date. If the current commitment and recent
requests are fully funded, the Housing Trust Fund outlays for affordable housing
development could be $12 million to $13 million in the near-term, resulting in a balance
of approximately $5 million in the Housing Trust Fund.
April 14, 2020 Item #9 Page 5 of 59
• Low Income and Homeless services support
The Housing Trust Fund has also been used to support a variety of services for low
income and homeless individuals and families. For example, the Housing Trust Fund has
provided funding each year for the regional winter shelter program and the Carlsbad
Service Center, which provides temporary day labor employment services, employment
training and readiness, access to benefits, basic needs, rental assistance and case
management. More recently, the Housing Trust Fund supports the year-round Bridge-
to-Housing network coordinated by the Alliance for Regional Solutions.
In October 2017, the City Council approved the Homeless Response Plan, which
identifies an array of strategies intended to address the complex needs of the homeless
while reducing the impact of homelessness on city resources and the community. The
Housing Trust Fund is used to support several Homeless Response Plan activities,
including funding case workers on the Homeless Outreach Team, encampment cleanup
services and supplies and other support items. The current fiscal year 2019-20 Housing
Trust Fund budget allocates $611,000 for implementation of the Homeless Response
Plan.
• Administration
The funding activities of the Housing Trust Fund require administrative support.
Administrative costs include staff salaries and benefits, legal support, miscellaneous
professional services, office equipment, maintenance, supplies and other operating
costs. Annual transfers to the Section 8 Rental Assistance Fund are also included. The
administrative fees received from the federal government are insufficient to cover the
total cost to administer the Section 8 program, that difference is made up with money
from the Housing Trust Fund.
The table below shows actual administrative support expenditures for the last two fiscal
years and the current fiscal year administrative support budget paid by the Housing
Trust Fund. The increased current year budget over previous years’ actuals reflects
approved changes in staffing levels and additional affordable housing compliance
oversight.
Housing Trust Fund
administration
FY 2017/18
(Actual)
2018/19
(Actual)
2019/20
(Budgeted)
Personnel $146,739 $150,694 $205,739
Maint. & operations 193,613 192,490 212,683
Transfer to Section 8 Admin 23,868 55,000 50,000
Total administration $364,220 $398,184 $468,422
In summary, the Housing Trust Fund has been used successfully to assist an array of new
housing construction, land acquisition, first-time homebuyer loans and low income and
homeless services. The Housing Trust Fund has been an indispensable tool to attract other
funding sources to affordable housing projects, leveraging the city’s investment up to five times
with outside funding sources. With its diversity of revenue sources, the Housing Trust Fund has
April 14, 2020 Item #9 Page 6 of 59
provided sustained support for the inclusionary housing program, resulting in approximately
2,300 affordable homes in Carlsbad.
Fiscal Analysis
There is no fiscal impact associated with this informational report.
Next Steps
Subsequent to the May 14, 2019 minute motion, the City Council adopted three additional
related minute motions:
1) On Aug. 20, 2019, the City Council directed staff to return with a discussion item to
consider solutions and options to avoid housing in-lieu payments in the Village and
Barrio area, and to have a Village and Barrio-specific inclusionary policy
2) On Dec. 10, 2019, the City Council directed that the Planning Commission conduct a
public session to allow the public to have opportunity to provide feedback on a
number of Village and Barrio Master Plan items, including the aforementioned
solutions and options to avoid housing in-lieu payments in the Village and Barrio
area, and to have a Village and Barrio-specific inclusionary policy
3) On Dec. 17, 2019, the City Council directed staff to return with a discussion item to
consider whether to initiate a study of the Inclusionary Housing In-lieu Fee and
Affordable Housing Credit Purchases (Exhibit 8).
An agenda item to discuss these minute motions is currently scheduled for the May 5, 2020,
City Council meeting. Depending on any other direction from the City Council regarding desired
changes to the Housing Trust Fund program, staff can return to the council at a future meeting
with a work program identifying a timeline and associated costs to formulate additional
recommendations for the City Council’s consideration.
Environmental Evaluation (CEQA)
This is an informational item only. Pursuant to Public Resources Code section 21065, this action
does not constitute a "project" within the meaning of California Environmental Quality Act 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.
Public Notification and Outreach
This item was noticed in accordance with the Ralph M. Brown Act and was available for public
viewing and review at least 72 hours prior to scheduled meeting date.
Exhibits
1. May 14, 2019 City Council minute motion
2. Inclusionary Housing Ordinance (CMC§21.85)
3. Resolution No. 93-269
4. Resolution No. 93-268
5. Resolution No. 96-261
April 14, 2020 Item #9 Page 7 of 59
6. City Council Policy 58 and Policy 57
7. Housing Trust Fund-assisted Affordable Housing projects
8. Aug. 20, Dec. 10 and Dec. 17, 2019 City Council minute motions
April 14, 2020 Item #9 Page 8 of 59
CITY COUNCIL Minutes
May 14, 2019 6 p.m.
CALL TO ORDER: 6:00 p.m.
ROLL CALL: Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton.
ANNOUNCEMENT OF CONCURRENT MEETINGS: None.
Council Chamber
1200 Carlsbad Village Drive
Carlsbad, CA 92008
PLEDGE OF ALLEGIANCE: Mayor Pro Tern Bhat-Patel led the Pledge of Allegiance.
INVOCATION: None.
APPROVAL OF MINUTES: None.
PRESENTATIONS:
Introduction of New CERT 12 Members.
Mayor Hall introduced Emergency Preparedness Coordinator David Harrison who acknowledged
new CERT 12 Members.
Proclamation in recognition of Better Hearing and Speech Month.
Mayor Hall presented a proclamation to Teresa Barnes, Ambassador for Hearing Awareness, in
recognition of Better Hearing and Speech Month.
PUBLIC REPORT OF ACTION TAKEN IN CLOSED SESSION: None.
PUBLIC COMMENT:
Shirley Anderson spoke regarding the Palomar Airport Advisory Committee meeting and lack of
real estate disclosures.
Ben Mijuskovic spoke regarding a wall at the back of 5198 Shore Drive residence which will
prevent the free flow of flood waters.
Jerome Lacote spoke regarding the cycling industry, the lack of safety and venues for cyclists.
CONSENT CALENDAR:
Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Blackburn, to approve
Consent Calendar Item Nos. 1 thru 3. Motion carried unanimously, 5/0.
1.NOTICE OF INTENTION TO SELL CITY PROPERTY LOCATED AT 3701 CATALINA DRIVE -
Adoption of Resolution No. 2019-063 approving a Notice of Intention to sell the property
located at 3701 Catalina Drive, APN 167-154-20, commonly known as Old Fire Station No. 3,
EXHIBIT 1
April 14, 2020 Item #9 Page 9 of 59
May 14, 2019 Carlsbad City Council Regular Meeting Page4
Community & Economic Development Director Debbie Fountain and Management Analyst
Nancy Melander presented the report and reviewed a PowerPoint presentation (on file in the
Office of the City Clerk).
Mayor Hall opened the duly noticed Public Hearing at 7:45 p.m.
Rebecca Palmer from Community Resource Center thanked the Council for past support of the
Community Resource Center and spoke regarding their application.
Seeing no one else wishing to speak, Mayor Hall closed the duly noticed Public Hearing at
7:48 p.m.
Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Blackburn, to adopt
Resolution No. 2019-066. Motion carried unanimously, 5/0.
DEPARTMENTAL AND CITY MANAGER REPORTS:
8. STATUS REPORT ON THE HOMELESS RESPONSE PLAN AND HOMELESS OUTREACH TEAM
EFFORTS -Receive an informational staff report on the Homeless Response Plan and
Homeless Outreach Team efforts. (Staff contact: Marie Jones-Kirk, Community & Economic
Development)
City Manager's Recommendation: Receive the report.
Community & Economic Development Director Debbie Fountain, Police Chief Neil Gallucci,
and Deputy City Attorney Marissa Kawecki presented the report and reviewed a PowerPoint
presentation (on file in the Office of the City Clerk).
Greg Anglea, CEO of Interfaith Community Services, and Board President of the Alliance for
Regional Solutions, thanked staff and Council for the update and for the efforts the City is
taking.
Patty Xirogicinnis, landlord in Carlsbad, is seeking collaboration with the City so her properties
can house the homeless, along with the Landlord Liaison program.
Minute motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Hamilton, to
bring back as an agendized item drafting a letter of support for increased funding for
behavioral health services to the County of San Diego. Motion carried unanimously, 5/0.
Minute motion by Council Member Schumacher, seconded by Council Member Hamilton,
directing staff to agendize an action item to discuss the housing trust fund and potential
changing of the policy to a future agenda. Motion carried, 4/1 (Hall -No).
Minute motion by Council Member Schumacher, seconded by Council Member Hamilton, to
place on a future agenda an action item to discuss forming an ad-hoc committee of Council
and staff, in partnership with the Alliance for Regional Solutions, to reach out to neighboring
April 14, 2020 Item #9 Page 10 of 59
3/25/2020 Chapter 21.85 INCLUSIONARY HOUSING
www.qcode.us/codes/carlsbad/1/10
Carlsbad Municipal Code
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Title 21 ZONING
Chapter 21.85 INCLUSIONARY HOUSING*
*CodeAlert: This topic has been affected by Ordinance No. CS-368. To view amendments and newly added provisions,
please refer to the CodeAlert Amendment List.
21.85.010 Purpose and intent.
The purpose and intent of this chapter is as follows:
A. It is an objective of the city, as established by the housing element of the city’s general plan, to ensure that all
residential development, including all master planned and specific planned communities and all residential
subdivisions provide a range of housing opportunities for all identifiable economic segments of the population,
including households of lower and moderate income. It is also the policy of the city to:
1. Require that a minimum of fifteen percent of all approved ownership and qualifying rental units as set
forth in Section 21.85.030(A) be restricted to and affordable to lower-income households; subject to
adjustment based on the granting of an inclusionary credit;
2. Require that for those developments which provide ten or more units affordable to lower-income
households, at least ten percent of the lower-income units shall have three or more bedrooms;
3. Under certain conditions, allow alternatives to on-site construction as a means of providing affordable
units; and
4. In specific cases, allow inclusionary requirements to be satisfied through the payment of an in-lieu fee as
an alternative to requiring inclusionary units to be constructed.
B. It is the purpose of this chapter to ensure the implementation of the city objective and policy stated in
subsection A.
C. Nothing in this chapter is intended to create a mandatory duty on the part of the city or its employees under the
Government Tort Claims Act and no cause of action against the city or its employees is created by this chapter that
would not arise independently of the provisions of this chapter. (Ord. CS-109 § II, 2010; Ord. NS-794 § 2, 2006;
Ord. NS-535 § 1, 2000)
21.85.020 Definitions.
Whenever the following terms are used in this chapter, they shall have the meaning established by this section:
A. “Affordable housing” means housing for which the allowable housing expenses paid by a qualifying household
shall not exceed a specified fraction of the county median income, adjusted for household size, as follows:
1. Extremely low-income, rental or ownership units: the product of thirty percent times thirty percent of the
county median income, adjusted for household size;
2. Very low-income, rental and ownership units: the product of thirty percent times fifty percent of the
county median income, adjusted for household size;
3. Low-income, ownership units: the product of thirty percent times eighty percent of the county median
income, adjusted for household size; and
4. Low-income, rental units: the product of thirty percent times seventy percent of the county median
income, adjusted for household size.
B. “Affordable housing agreement” means a legally binding agreement between a developer and the city to ensure
that the inclusionary requirements of this chapter are satisfied. The agreement establishes, among other things, the
number of required inclusionary units, the unit sizes, location, affordability tenure, terms and conditions of
affordability and unit production schedule.
EXHIBIT 2
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C. “Allowable housing expense” means the total monthly or annual recurring expenses required of a household to
obtain shelter. For an ownership unit, allowable housing expenses include loan principal and interest at the time of
initial purchase by the homebuyer, allowances for property and mortgage insurance, property taxes, homeowners’
association dues and a reasonable allowance for utilities as defined by the Code of Federal Regulations (24 CFR
982). For a rental unit, allowable housing expenses include rent and a utility allowance as established and adopted
by the City of Carlsbad housing authority, as well as all monthly payments made by the tenant to the lessor in
connection with use and occupancy of a housing unit and land and facilities associated therewith, including any
separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant.
D. “Affordable housing policy team” shall consist of the community and economic development director, city
planner, housing and neighborhood services director, administrative services director/finance director and a
representative of the city attorney’s office.
E. “Combined inclusionary housing project” means separate residential development sites which are linked by a
contractual relationship such that some or all of the inclusionary units which are associated with one development
site are produced and operated at a separate development site or sites.
F. “Conversion” means the change of status of a dwelling unit from an ownership unit to a rental unit or vice
versa and/or a market-rate unit to a unit affordable to lower-income households.
G. “Development revision” means revisions to development permits, entitlements, and/or related maps.
H. “Density bonus” shall have the same meaning as defined in Section 21.86.020(A)(7) of this title.
I. “Extremely low-income household” means those households whose gross income is equal to or less than thirty
percent of the median income for San Diego County as determined by the U.S. Department of Housing and Urban
Development.
J. “Financial assistance” means assistance to include, but not be limited to, the subsidization of fees,
infrastructure, land costs, or construction costs, the use of redevelopment set-aside funds, community development
block grant (CDBG) funds, or the provision of other direct financial aid in the form of cash transfer payments or
other monetary compensation, by the City of Carlsbad.
K. “Growth management control point” shall have the same meaning as provided in Chapter 21.90, Section
21.90.045 of this title.
L. “Incentives or concessions” shall have the same meaning as defined in Section 21.86.020(A)(12) of this title.
M. “Inclusionary credit” means a reduction in the inclusionary housing requirement granted in return for the
provision of certain desired types of affordable housing or related amenities as determined by the city council.
N. “Inclusionary housing project” means a new residential development or conversion of existing residential
buildings which has at least fifteen percent of the total units reserved and made affordable to lower-income
households as required by this chapter.
O. “Inclusionary unit” means a dwelling unit that will be offered for rent or sale exclusively to and which shall be
affordable to lower-income households, as required by this chapter.
P. “Income” means any monetary benefits that qualify as income in accordance with the criteria and procedures
used by the City of Carlsbad housing and redevelopment department for the acceptance of applications and
recertifications for the tenant based rental assistance program, or its successor.
Q. “Low-income household” means those households whose gross income is more than fifty percent but does not
exceed eighty percent of the median income for San Diego County as determined annually by the U.S. Department
of Housing and Urban Development.
R. “Lower-income household” means low-income, very low-income and extremely low-income households,
whose gross income does not exceed eighty percent of the median income for San Diego County as determined
annually by the U.S. Department of Housing and Urban Development.
S. “Market-rate unit” means a dwelling unit where the rental rate or sales price is not restricted either by this
chapter or by requirements imposed through other local, state, or federal affordable housing programs.
T. “Offsets” means concessions or assistance to include, but not be limited to, direct financial assistance, density
increases, standards modifications or any other financial, land use, or regulatory concession which would result in an
identifiable cost reduction enabling the provision of affordable housing.
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3/25/2020 Chapter 21.85 INCLUSIONARY HOUSING
www.qcode.us/codes/carlsbad/3/10
U. “Ownership unit” means a residential unit with a condominium or other subdivision map allowing units to be
sold individually.
V. “Rental unit” means a residential unit with no condominium or other subdivision map allowing units to be sold
individually.
W. “Residential development” means any new residential construction of ownership or rental units; or
development revisions, including those with and without a master plan or specific plan, planned unit developments,
site development plans, mobile home developments and conversions of apartments to condominiums, as well as
dwelling units for which the cost of shelter is included in a recurring payment for expenses, whether or not an initial
lump sum fee is also required.
X. “Target income level” means the income standards for extremely low, very low and low-income levels within
San Diego County as determined annually by the U.S. Department of Housing and Urban Development, and
adjusted for family size.
Y. “Total residential units” means the total units approved by the final decision-making authority. Total residential
units are composed of both market-rate units and inclusionary units.
Z. “Very low-income household” means a household earning a gross income equal to fifty percent or less of the
median income for San Diego County as determined annually by the U.S. Department of Housing and Urban
Development. (Ord. CS-164 §§ 10, 12, 14, 2011; Ord. CS-109 § III, 2010; Ord. NS-794 § 3, 2006; Ord. NS-535 § 1,
2000)
21.85.030 Inclusionary housing requirement.
The inclusionary housing requirements of this chapter shall apply as follows:
A. This chapter shall apply to all residential market-rate dwelling units resulting from new construction of
ownership units, including the conversion of apartments to condominiums and to new construction of rental units
where the developer receives direct financial assistance, offsets, or any incentive of the type specified in density
bonus law pursuant to the provisions of Chapter 21.86 of this code, and the developer agrees by contract to limit
rents for below market-rate rental units. Any developer not receiving direct financial assistance, offsets, or other
incentives may voluntarily agree to provide inclusionary rental units.
B. For any residential development or development revision of seven or more units as set forth in subsection A,
not less than fifteen percent of the total units approved shall be constructed and restricted both as to occupancy and
affordability to lower-income households.
C. For those developments which are required to provide ten or more units affordable to lower-income
households, at least ten percent of the lower-income units shall have three or more bedrooms.
D. This chapter shall not apply to the following:
1. Existing residences which are altered, improved, restored, repaired, expanded or extended, provided that
the number of units is not increased, except that this chapter shall pertain to the subdivision of land for the
conversion of apartments to condominiums;
2. Conversion of a mobile home park pursuant to Section 21.37.120 of the code;
3. The construction of a new residential structure which replaces a residential structure that was destroyed or
demolished within two years prior to the application for a building permit for the new residential structure,
provided that the number of residential units is not increased from the number of residential units of the
previously destroyed or demolished residential structure;
4. Any residential unit which is accessory as defined in Section 21.04.020 of this code;
5. Accessory dwelling units not constructed to fulfill inclusionary housing requirements and developed in
accordance with Section 21.10.030 of this code;
6. Any project or portion of a project which is a commercial living unit as defined in Section 21.04.093 of
this code;
7. Any rental unit where the developer does not obtain direct financial assistance, offset, or any other
incentive or concession of the type specified in density bonus law, although a mandatory density bonus may
April 14, 2020 Item #9 Page 13 of 59
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have been applied pursuant to the provisions of Chapter 21.86 of this code; and
8. Those residential units which have obtained affordable housing approvals prior to the effective date of the
ordinance codified in this chapter, as set forth in Section 21.85.160 of this chapter. (Ord. CS-324 § 2, 2017;
Ord. CS-109 §§ IV—VI, 2010; Ord. NS-535 § 1, 2000)
21.85.035 New master plans or specific plans.
New master plans and specific plans shall submit an inclusionary housing plan as follows:
A. All master plans and specific plans approved on or after the effective date of the ordinance codified in this
chapter are required by this chapter to provide an inclusionary housing plan within the master plan or specific plan
document. This inclusionary housing plan will include appropriate text, maps, tables, or figures to establish the basic
framework for implementing the requirements of this chapter. It shall establish, as a minimum, but not be limited to,
the following:
1. The number of market-rate units in the master plan or specific plan;
2. The number of required inclusionary units for lower-income households over the entire master plan or
specific plan;
3. The designated sites for the location of the inclusionary units, including but not limited to any sites for
locating off-site inclusionary housing projects or combined inclusionary housing projects;
4. A general provision stipulating that an affordable housing agreement shall be made a condition of all
future discretionary permits for development within the master or specific plan area such as tentative maps,
parcel maps, planned unit developments and site development plans. The provision shall establish that all
relevant terms and conditions of any affordable housing agreement shall be filed and recorded as a restriction
on the project as a whole and those individual lots, units or projects which are designated as inclusionary units.
The affordable housing agreement shall be consistent with Section 21.85.140 of this chapter.
B. The location and phasing of inclusionary dwelling units may be modified as a minor amendment to the master
plan pursuant to Section 21.38.120 of this title if the city council authorizes such modifications when approving the
master plan.
C. All existing master plans or specific plans proposed for major amendment, pursuant to Section 21.38.120 of
this code, shall incorporate into the amended master plan or specific plan document an inclusionary housing plan,
consistent with this section of this chapter. (Ord. NS-535 § 1, 2000)
21.85.040 Affordable housing standards.
The affordable housing standards are as follows:
A. All qualifying residential developments pursuant to Section 21.85.030(A) are subject to and must satisfy the
inclusionary housing requirements of this chapter, notwithstanding a developer’s request to process a residential
development under other program requirements, laws or regulations, including but not limited to Chapter 21.86
(Residential Density Bonus) of this code. If an applicant seeks to construct affordable housing to qualify for a
density bonus in accordance with the provisions of Chapter 21.86 (Residential Density Bonus), those affordable
dwelling units that qualify a residential development for a density bonus are in addition to, and do not count toward
satisfying, the inclusionary housing requirements of this chapter.
B. Whenever reasonably possible, inclusionary units should be built on the residential development project site.
C. The required inclusionary units shall be constructed concurrently with market-rate units unless both the final
decision-making authority of the city and developer agree within the affordable housing agreement to an alternative
schedule for development.
D. Inclusionary rental units shall remain restricted and affordable to the designated income group for fifty-five
years. In addition to the income of a targeted group, limitations on assets may also be used as a factor in determining
eligibility for rental or ownership units. Notwithstanding anything to the contrary in this chapter, no inclusionary
unit shall be rented for an amount which exceeds ninety percent of the actual rent charged for a comparable market
unit in the same development, if any.
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E. After the initial sale of the inclusionary ownership units at a price affordable to the target income level group,
inclusionary ownership units shall remain affordable to subsequent income eligible buyers pursuant to a resale
restriction with a term of thirty years or ownership units may be sold at a market price to other than targeted
households provided that the sale shall result in the recapture by the city or its designee of a financial interest in the
units equal to the amount of subsidy necessary to make the unit affordable to the designated income group and a
proportionate share of any appreciation. Funds recaptured by the city shall be used in assisting other eligible
households with home purchases at affordable prices. To the extent possible, projects using ownership units to
satisfy inclusionary requirements shall be designed to be compatible with conventional mortgage financing
programs including secondary market requirements.
F. Inclusionary units should be located on sites that are in proximity to or will provide access to employment
opportunities, urban services, or major roads or other transportation and commuter rail facilities and that are
compatible with adjacent land uses.
G. The design of the inclusionary units shall be reasonably consistent or compatible with the design of the total
project development in terms of appearance, materials and finished quality.
H. Inclusionary projects shall provide a mix of number of bedrooms in the affordable dwelling units in response
to affordable housing demand priorities of the city.
I. No building permit shall be issued, nor any development approval granted for a development which does not
meet the requirements of this chapter. No inclusionary unit shall be rented or sold except in accordance with this
chapter. (Ord. CS-109 §§ VII—IX, 2010; Ord. NS-794 § 4, 2006; Ord. NS-535 § 1, 2000)
21.85.050 Calculating the required number of inclusionary units.
Subject to adjustments for an inclusionary credit, the required number of lower-income inclusionary units shall be fifteen
percent of the total residential units, approved by the final decision-making authority. If the inclusionary units are to be
provided within an off-site combined or other project, the required number of lower-income inclusionary units shall be
fifteen percent of the total residential units to be provided both on-site and/or off-site. Subject to the maximum density
allowed per the growth management control point or per specific authorization granted by the planning commission or
city council, fractional units for both market rate and inclusionary units of 0.5 will be rounded up to a whole unit. If the
rounding calculation results in a total residential unit count which exceeds the maximum allowed, neither the market rate
nor the inclusionary unit count will be increased to the next whole number.
Example 1: Total residential units = fifteen percent inclusionary units plus eighty-five percent market-rate units. If the
final decision-making authority approves one hundred total residential units, then the inclusionary requirement equals
fifteen percent of the “total” or fifteen units (100 × .15 = 15). The allowable market-rate units would be eighty-five
percent of the “total” or eighty-five units.
Example 2: If the inclusionary units are to be provided off-site, the total number of inclusionary units shall be calculated
according to the total number of market-rate units approved by the final decision-making authority. If one hundred
market-rate units are approved, then this total is divided by .85 which provides a total residential unit count (100 ÷ .85 =
117). The fifteen percent requirement is applied to this “total” (one hundred seventeen units) which equals the
inclusionary unit requirement (117 × .15 = 17.6 units). (Ord. NS-794 § 5, 2006; Ord. NS-535 § 1, 2000)
21.85.060 Inclusionary credit adjustment.
Certain types of affordable housing are relatively more desirable in satisfying the city’s state-mandated affordable housing
requirement as well as the city’s housing element goals, objectives and policies, and these may change over time.
To assist the city in providing this housing, developers may receive additional (more than one unit) credit for each of such
units provided, thereby reducing the total inclusionary housing requirement to less than fifteen percent of all residential
units approved. A schedule of inclusionary housing credit specifying how credit may be earned shall be adopted by the
city council and made available to developers subject to this chapter. (Ord. NS-794 § 6, 2006; Ord. NS-535 § 1, 2000)
21.85.070 Alternatives to construction of inclusionary units.
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Notwithstanding any contrary provisions of this chapter, at the sole discretion of the city council, the city may determine
that an alternative to the construction of new inclusionary units is acceptable.
A. The city council may approve alternatives to the construction of new inclusionary units where the proposed
alternative supports specific housing element policies and goals and assists the city in meeting its state housing
requirements. Such determination shall be based on findings that new construction would be infeasible or present
unreasonable hardship in light of such factors as project size, site constraints, market competition, price and product
type disparity, developer capability, and financial subsidies available. Alternatives may include, but not be limited
to, acquisition and rehabilitation of affordable units, conversion of existing market-rate units to affordable units,
construction of special needs housing projects or programs (shelters, transitional housing, etc.), and the construction
of accessory dwelling units.
B. Accessory dwelling units constructed to satisfy an inclusionary housing requirement shall be rent restricted to
affordable rental rates, and renters shall be income-qualified, as specified in the applicable affordable housing
agreement. In no event shall a developer be allowed to construct more than a total of fifteen accessory dwelling units
in any given development, master plan, or specific plan, to satisfy an inclusionary requirement.
C. Contribution to a special needs housing project or program may also be an acceptable alternative based upon
such findings. The requisite contribution shall be calculated in the same manner as an in-lieu fee per Section
21.85.110. (Ord. CS-324 § 2, 2017; Ord. CS-109 § X, 2010; Ord. NS-535 § 1, 2000)
21.85.080 Combined inclusionary housing projects.
An affordable housing requirement may be satisfied with off-site construction as follows:
A. When it can be demonstrated by a developer that the goals of this chapter and the city’s housing element would
be better served by allowing some or all of the inclusionary units associated with one residential project site to be
produced and operated at an alternative site or sites, the resulting linked inclusionary project site(s) is a combined
inclusionary housing project.
B. It is at the sole discretion of the city council to authorize the residential site(s) which form a combined
inclusionary housing project. Such decision shall be based on findings that the combined project represents a more
effective and feasible means of implementing this chapter and the goals of the city’s housing element. Factors to be
weighed in this determination include: the feasibility of the on-site option considering project size, site constraints,
competition from other projects, difficulty in integrating due to significant price and product type disparity, and lack
of capacity of the on-site development entity to deliver affordable housing. Also to be considered are whether the
off-site option offers greater feasibility and cost effectiveness, particularly regarding potential local public assistance
and the city’s affordable housing financial assistance policy, location advantages such as proximity to jobs, schools,
transportation, and services, diminished impact on other existing developments, capacity of the development entity
to deliver the project, and satisfaction of multiple developer obligations that would be difficult to satisfy with
multiple projects.
C. All agreements between parties to form a combined inclusionary housing project shall be made a part of the
affordable housing agreement required for the site(s), which affordable housing agreement(s) shall be approved by
council.
D. Location of the combined inclusionary housing project is limited to sites within the same city quadrant in
which the market-rate units are located, or sites which are contiguous to the quadrant in which the market-rate units
are proposed. (Ord. NS-535 § 1, 2000)
21.85.090 Creation of inclusionary units not required.
Inclusionary units created which exceed the final requirement for a project may, subject to city council approval in the
affordable housing agreement, be utilized by the developer to satisfy other inclusionary requirements for which it is
obligated or market the units to other developers as a combined project subject to the requirements of Section 21.85.080.
(Ord. NS-535 § 1, 2000)
21.85.100 Offsets to the cost of affordable housing development.
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A. The city shall consider making offsets available to developers when necessary to enable residential projects to
provide a preferable product type or affordability in excess of the requirements of this chapter.
B. Offsets will be offered by the city to the extent that resources and programs for this purpose are available to the
city and approved for such use by the city council, and to the extent that the residential development, with the use of
offsets, assists in achieving the city’s housing goals. To the degree that the city makes available programs to provide
offsets, developers may make application for such programs.
C. Evaluation of requests for offsets shall be based on the effectiveness of the offsets in achieving a preferable
product type and/or affordability objectives as set forth within the housing element; the capability of the
development team; the reasonableness of development costs and justification of subsidy needs; and the extent to
which other resources are used to leverage the requested offsets.
D. Nothing in this chapter establishes, directly or through implication, a right to receive any offsets from the city
or any other party or agency to enable the developer to meet the obligations established by this chapter.
E. Any offsets approved by the city council and the housing affordability to be achieved by use of those offsets
shall be set out within the affordable housing agreement pursuant to Section 21.85.140 or, at the city’s discretion in a
subsequent document.
F. Developers are encouraged to utilize local, state or federal assistance, when available, to meet the affordability
standards set forth in Sections 21.85.030 and 21.85.040.
G. For development located in the coastal zone, any offset provided pursuant to this section shall be consistent
with the applicable provisions of the certified Carlsbad Local Coastal Program Land Use Plan(s), with the exception
of density. (Ord. NS-889 § 1, 2008; Ord. NS-794 § 7, 2006; Ord. NS-535 § 1, 2000)
21.85.110 In-lieu fees.
Payment of a fee in lieu of construction of affordable units may be appropriate in the following circumstances:
A. For any qualifying residential development or development revision pursuant to Section 21.85.030(A) of less
than seven units, the inclusionary requirements may be satisfied through the payment to the city of an in-lieu fee.
B. The in-lieu fee to be paid for each market-rate dwelling unit shall be fifteen percent of the subsidy needed to
make affordable to a lower-income household one newly constructed, typical attached-housing unit. This subsidy
shall be based upon the city council’s determination of the average subsidy that would be required to make
affordable typical, new two-bedroom/one-bath and three-bedroom/two-bath ownership units and rental units, each
with an assumed affordability tenure of at least fifty-five years.
C. The dollar amount and method of payment of the in-lieu fees shall be fixed by a schedule adopted, from time to
time, by resolution of the city council. Said fee shall be assessed against the market-rate lots/units of a development.
D. All in-lieu fees collected hereunder shall be deposited in a housing trust fund. Said fund shall be administered
by the city and shall be used only for the purpose of providing funding assistance for the provision of affordable
housing and reasonable costs of administration consistent with the policies and programs contained in the housing
element of the general plan.
E. At the discretion of the city council, where a developer is authorized to pay a fee in lieu of development, an
irrevocable dedication of land or other non-monetary contribution of a value not less than the sum of the otherwise
required in-lieu fee may be accepted as an alternative to paying the in-lieu fee if it is determined that the non-
monetary contribution will be effectual in furthering the goals and policies of the housing element and this chapter.
The valuation of any land offered in-lieu shall be determined by an appraisal made by an agent mutually agreed
upon by the city and the developer. Costs associated with the appraisal shall be borne by the developer.
F. Where a developer is authorized to pay a fee in lieu of development of affordable housing units, any approvals
shall be conditioned upon a requirement to pay the in-lieu fee in an amount established by resolution of the city
council in effect at the time of payment.
G. As an alternative to paying an in-lieu fee(s), inclusionary housing requirements may be satisfied either through
a combined inclusionary housing project, pursuant to Section 21.85.080 of this chapter or new construction of
inclusionary units subject to approval of the final decision-making authority. (Ord. CS-109 §§ XI, XII, 2010; Ord.
NS-535 § 1, 2000)
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21.85.120 Collection of fees.
All fees collected under this chapter shall be deposited into a housing trust fund and shall be expended only for the
affordable housing needs of lower-income households, and reasonable costs of administration consistent with the purpose
of this chapter. (Ord. NS-535 § 1, 2000)
21.85.130 Preliminary project application and review process.
The preliminary project application/review process shall be as follows:
A. A developer of a residential development not subject to a master plan or specific plan, proposing an
inclusionary housing project shall have an approved site development plan prior to execution of an affordable
housing agreement for the project. The developer may submit a preliminary application to the housing and
neighborhood services director prior to the submittal of any formal applications for such housing development. The
preliminary application shall include the following information if applicable:
1. A brief description of the proposal including the number of inclusionary units proposed;
2. The zoning, general plan designations and assessors parcel number(s) of the project site;
3. A site plan, drawn to scale, which includes: building footprints, driveway and parking layout, building
elevations, existing contours and proposed grading; and
4. A letter identifying what specific offsets and/or adjustments are being requested of the city. Justification
for each request should also be included.
B. Within thirty days of receipt of the preliminary application for projects not requesting offsets or inclusionary
credit adjustments, or ninety days for projects requesting offsets or inclusionary credit adjustments, the department
shall provide to an applicant, a letter which identifies project issues of concern, the offsets and inclusionary credit
adjustments that the community and economic development director can support when making a recommendation to
the final decision-making authority, and the procedures for compliance with this chapter. The applicant shall also be
provided with a copy of this chapter and related policies, the pertinent sections of the California codes to which
reference is made in this chapter and all required application forms. (Ord. CS-164 §§ 12, 14, 2011; Ord. NS-794 § 8,
2006; Ord. NS-535 § 1, 2000)
21.85.140 Affordable housing agreement as a condition of development.
This chapter requires the following:
A. Developers subject to this chapter shall demonstrate compliance with this chapter by executing an affordable
housing agreement prepared by the city housing and neighborhood services director and submitted to the developer
for execution. Agreements which conform to the requirements of this section and which do not involve requests for
offsets and/or an inclusionary credit, other than those permitted by right, if any, shall be reviewed by the affordable
housing policy team and approved by the community and economic development director or designee. Agreements
which involve requests for offsets and/or an inclusionary credit, other than those permitted by right, shall require the
recommendation of the housing commission and action by the city council as the final decision-maker. Following
the approval and execution by all parties, the affordable housing agreement with approved site development plan
shall be recorded against the entire development, including market-rate lots/units and the relevant terms and
conditions therefrom filed and subsequently recorded as a separate deed restriction or regulatory agreement on the
affordable project individual lots or units of property which are designated for the location of affordable units. The
approval and execution of the affordable housing agreement shall take place prior to final map approval and shall be
recorded upon final map recordation or, where a map is not being processed, prior to the issuance of building
permits for such lots/units. The affordable housing agreement may require that more specific project and/or unit
restrictions be recorded at a future time. The affordable housing agreement shall bind all future owners and
successors in interest for the term of years specified therein.
B. An affordable housing agreement, for which the inclusionary housing requirement will be satisfied through
new construction of inclusionary units, either on-site or off-site, shall establish, but not be limited to, the following:
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1. The number of inclusionary dwelling units proposed, with specific calculations detailing the application
of any inclusionary credit adjustment;
2. The unit square footage, and number of bedrooms;
3. The proposed location of the inclusionary units;
4. Amenities and services provided, such as daycare, after school programs, transportation, job
training/employment services and recreation;
5. Level and tenure of affordability for inclusionary units;
6. Schedule for production of dwelling units;
7. Approved offsets provided by the city;
8. Where applicable, requirements for other documents to be approved by the city, such as marketing,
leasing and management plans; financial assistance/loan documents; resale agreements; and monitoring and
compliance plans;
9. Where applicable, identification of the affordable housing developer and agreements specifying their role
and relationship to the project.
C. An affordable housing agreement, for which the inclusionary housing requirement will be satisfied through
payment to the city of any in-lieu contributions other than fee monies, such as land dedication, shall include the
method of determination, schedule and value of total in-lieu contributions.
D. An affordable housing agreement will not be required for projects which will be satisfying their inclusionary
housing requirement through payment to the city of an in-lieu fee. (Ord. CS-164 §§ 12, 14, 2011; Ord. NS-794 §§ 9,
10, 2006; Ord. NS-535 § 1, 2000)
21.85.145 Agreement processing fee.
The city council may establish by resolution, fees to be paid by the developer at the time of preliminary project
application to defray the city’s cost of preparing and/or reviewing all inclusionary housing agreements. (Ord. NS-535 § 1,
2000)
21.85.150 Agreement amendments.
Any amendment to an affordable housing agreement shall be processed in the same manner as an original application for
approval, except as authorized in Section 21.85.035(B). Amendments to affordable housing agreements initially approved
prior to the effective date of the ordinance codified in this chapter shall be entitled to consideration under the ordinance
provisions superseded by the ordinance codified in this chapter. (Ord. NS-535 § 1, 2000)
21.85.155 Expiration of affordability tenure.
The city or its designee shall have a one-time first right of refusal to purchase any project containing affordable units
offered for sale at the end of the minimum tenure of affordability for rental projects. The first right of refusal to purchase
the rental project shall be submitted in writing to the housing and neighborhood services director. Within ninety days of
its receipt, the city shall indicate its intent to exercise the first right of refusal for the purpose of providing affordable
housing. (Ord. CS-164 § 12, 2011; Ord. NS-535 § 1, 2000)
21.85.160 Pre-existing approvals.
Any residential developments for which a site development plan for the affordable housing component of the
development was approved prior to the effective date of the ordinance codified in this chapter shall be subject to the
ordinance in effect at the time of the approval. (Ord. NS-535 § 1, 2000)
21.85.170 Enforcement.
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Enforcement provisions are as follows:
A. The provisions of this chapter shall apply to all developers and their agents, successors and assigns proposing a
qualifying residential development governed by this chapter pursuant to Section 21.85.030(A). No building permit
or occupancy permit shall be issued, nor any entitlement granted, for a project which is not exempt and does not
meet the requirements of this chapter. All inclusionary units shall be rented or owned in accordance with this
chapter.
B. The city may institute any appropriate legal actions or proceedings necessary to ensure compliance with this
chapter, including but not limited to actions to revoke, deny or suspend any permit or development approval.
C. Any individual who sells or rents a restricted unit in violation of the provisions of this chapter shall be required
to forfeit all monetary amounts so obtained. Such amounts shall be added to the city’s housing trust fund. (Ord. CS-
109 § XIII, 2010; Ord. NS-535 § 1, 2000)
21.85.180 Savings clause.
All code provisions, ordinances, and parts of ordinances in conflict with the provisions of this chapter are repealed. The
provisions of this chapter, insofar as they are substantially the same as existing code provisions relating to the same
subject matter shall be construed as restatements and continuations thereof and not as new enactments. With respect,
however, to violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of the ordinance
codified in this chapter, under any chapter, ordinance, or part of an ordinance shall be deemed to remain in full force for
the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability
or appeal. (Ord. NS-535 § 1, 2000)
21.85.190 Severability.
If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the remainder of
the chapter and the application of the provision to other persons not similarly situated or to other circumstances shall not
be affected thereby. (Ord. CS-109 § XIV, 2010; Ord. NS-535 § 1, 2000)
21.85.195 Fee deferral.
Notwithstanding anything in this chapter to the contrary, all housing in-lieu and housing impact fees for any residential
development that consists of five or more dwelling units shall only be paid prior to building permit issuance, or, at the
request of the applicant, deferred until all work required for final inspection has been completed and all department
approvals required for final inspection have been obtained by the applicant.
The amount of the fees shall be based on the fees in effect at the time of the request for the final inspection, not the time
of building permit issuance.
In the event that the city, for any reason, fails to collect any or all fees prior to final inspection, such fees shall remain the
obligation of the developer and/or the property owner. (Ord. CS-271 § V, 2015; Ord. CS-200 § V, 2013)
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April 14, 2020 Item #9 Page 20 of 59
a 0 EXH
1
2
3
4
RESOLUTION NO. 93-269
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA ESTABLISHING AN INCLUSIONARY HOUSING IMPACT FEE AND FORMULA FOR CALCULATING THE IMPACT FEE
WHEREAS, the City of Carlsbad has adopted
5
that a minimum of fifteen percent (15%) of all residential u 9
WHEREAS, the Inclusionary Housing Ordinance mand 8
moderate-income units; and 7
of it's Regional Share housing objectives for lower-income 6
Inclusionary Housing Ordinance in order to enable the achieve
lo in any master plan, specific plan or residential subdivisio
11 reserved and affordable to lower-income households: and
12 WHEREAS, the Inclusionary Housing Ordinance speci
13 that all residential market rate dwelling units resulting fron
14 construction of rental or for-sale units shall be subjecl
15 inclusionary requirements; and
16
17
WHEREAS, based upon a comprehensive strategy formul
to address the City's affordable housing needs over the sho
imid-, and long-term buildout of the City, specific Inclusio
19 requirements (i.e.; construction of affordable units, paymen
20 in-lieu fees or payment of inclusionary housing impact fees)
21 been identified for various classes of residential projects;
22 WHEREAS, in order to be consistent with the Hou
23 Element of the General Plan and the Inclusionary Hou
24 Ordinance, the following classes of residential projects shal
25 eligible to satisfy Inclusionary housing requirements for 1
26 income households through the payment to the City of
27 Inclusionary Housing Impact Fee:
28
l8
~
(1) Residential projects, of any size, establis
individual lots or dwelling units (i.e.; tentative maps, tenta /I
EXHIBIT 3
April 14, 2020 Item #9 Page 21 of 59
0 0
maps for the conversion of apartments to air-space condomini
parcel maps, planned unit developments, site development pl
conditional use permits, residential mobile home park permits
redevelopment permits) , for which the application was accepted
1
2
3
4 deemed complete prior to the effective date of the Inclusio
Ordinance: 5
6 7 II (2) Single family residential projects, (i
tentative maps and parcel maps) of any size, for which
discretionary approvals, except site development plans,
granted on or before the effective date of the Inclusio
Ordinance and site development plans are subsequently require
a condition Of the prior approval, and are approved after
8
9
10
11
I.2 lleffective date of the Inclusionary Ordinance;
13
14
(3) A residential tentative map or parcel map revis
of any size, including a tentative map revision for the conver
l5 /of apartments to air-space condominiums, for which the applica
l6 //is deemed complete prior to the effective date of the Inclusio
17
18
Ordinance, and is approved on, before or after the effective
of the Inclusionary Ordinance:
19 11 I (4) Any residential tentative map or parcel map
2o
21
which the application is deemed complete prior to the effec
date of the Inclusionary Ordinance, which is approved on, be
“I/or after the effective date of the Inclusionary Ordinance, an
23
24 effective date of the Inclusionary Ordinance;
SubseWently approved for extension on, before or after
25 il (5) Any residential planned unit development,
26 Ildevelopment plan, conditional use permit, residential mobile
27 lipark permit, or redevelopment permit, for which the applicatic
28 I! II 2
April 14, 2020 Item #9 Page 22 of 59
II 0 0 /I //deemed complete prior to the effective date of the Inclusic
l IIOrdinance, which is approved on, before or after the effec
2
3
4
5
6
date of the Inclusionary Ordinance, and is subsequently app:
for amendment on, before or after the effective date of
Inclusionary Ordinance; and
WHEREAS, the impact fee to be paid for each market
dwelling unit would be equal to fifteen percent (15%) of
7 llsubsidy required to make affordable to a lower-income housc
8
9
10
the market-rate rent at a typical existing apartment for a pe
of thirty (30) years ; and
WHEREAS, this subsidy would be based upon the C:
11
12
13
determination of the average subsidy that would be require
make affordable, rents for typical one-, two-, three-, and j
bedroom apartments: and
14 11 WHEREAS, the average subsidy shall be weighted for
l5 llactual demand for housing, by number of bedrooms, as determine
16
17
18
I’ the InClUSiOnary Housing Impact Fee is included on Exhibit
20 land
the applications for lower-income affordable housing qualifiec
approved by the City; and
WHEREAS, the formula for calculating the dollar Val1
21 I1 WHEREAS, based upon this formula, and the CUI
22
the Inclusionary Housing Impact Fee would be $2,925.00 for fi 23
estimates of the variables contained therein, the dollar valu
assessed against all approved, but unbuilt market rate residen 26
WHEREAS, the Inclusionary Housing Impact Fee woul 25
year 1993-1994 (see Exhibit If3I1) ; and 24
27 Ilunits subject to this fee; and
28
3
April 14, 2020 Item #9 Page 23 of 59
0 0
WHEREAS, the Inclusionary Housing Impact Fee woul
required to be paid to the City, as an individual fee, on a 1
2
3
4
5
6
market-rate dwelling unit basis at the time of building PC
issuance, or prior to the recordation of final map and/or issc
of certificate of compliance for conversions of exis
apartments to airspace condominiums; and
WHEREAS, consistent with the formula included on Ex1
7 11 tt211, the dollar value of the Inclusionary Housing Impact Fee P
8
9
10
11
12
be adjusted yearly by resolution of the City Council: and
WHEREAS, the Inclusionary Housing Impact Fee(s) paj
the City would be deposited in a Housing Trust Fund and used
the purpose of providing funding assistance for the provisic
affordable housing and reasonable costs of administration.
13 11 NOW, THEREFORE, BE IT RESOLVED by the City Counci 1411 the City of Carlsbad as follows:
l5 Ii "1. That the method for calculating the dollar Val1
l6 11 the Inclusionary Housing Impact Fee, established by Municipal
17/1Title 21, Section 21.85.060 Inclusionary Housing Impact Fee, E
l8 1 be by the formula shown on Exhibit t121t, a copy of which is afi
19 i
2o 1 and made a part hereto; and
2. That the input values for the variables containc 211i the formula given in Exhibit I12lt shall be, and the resul
22
23
24 3. The formula, input values, and fee shall bc
25 effective 60 days after the adoption of this resolution: anc
26
Inclusionary Housing Impact Fee shall be, as shown in Exhibit
a copy of which is affixed and made a part hereto: and
...
27
28
I1 4 ll April 14, 2020 Item #9 Page 24 of 59
I/ 0 e
4. That the input values for the variables of the for
and the Impact Fee would be updated annually by resolution of
City Council e #I
1
2
3 11 PASSED, APPROVED AND ADOPTED at a regular mee
*Ilof the City Council of the City of Carlsbad, California, on
5 /j 21st day of SEPTEMBER , 1993, by the following vote
6 Ilwit: -
7
a
9
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard
NOES: Council Member Finnila
ABSENT : None
10
11
12
13
ABSTAIN:
l4 IJATTEST:
15 I
16 ALe m{TEelkrk
I"
19
18
(SEAL)
I
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21
22
23
24
25 I1
26
27
28 I1 5 April 14, 2020 Item #9 Page 25 of 59
0 0 I
INCLUSIONARY HOUSING IMPACT FEE FORMULAS
1. F = T (S, + S, + S, + S,) E
F = Dollar Value of Inclusionary Housing Impact Fee.
T = Unit Tenure of Affordability = 360 months (30 years).
s2 = Annual Rental Subsidy Required for a 2 Person Low Inco:
s3 = Annual Rental Subsidy Required for a 3 Person Low Inco
s4 = Annual Rental Subsidy Required for a 4 Person Low Inco
s, = Annual Rental Subsidy Required for a 5 Person Low Incol
Household.
Household.
Household.
Household.
E - - 15% Inclusionary Requirement = .15
2. s2 = H, (R, - 1,)
s3 = H, (R, - 13)
s4 = H3 (R3 - 1,J
s5 = H, (R4 - 1,)
% = Percent of Total Households on Carlsbad's Section 8 Waiting L Eligible for a 1 Bedroom unit.
H, = Percent of Total Households on Carlsbad's Section 8 Waiting L Eligible for a 2 Bedroom Unit.
H3 = Percent of Total Households on Carlsbad's Section 8 Waiting L Eligible for a 3 Bedroom Unit.
H, = Percent of Total Households on Carlsbad's Section 8 Waiting L Eligible for a 4 Bedroom Unit.
Rl = Average Monthly Rental Rate in Carlsbad for a 1 Bedroom Apartme (HUD) Fair Market Rents for the San Diego MSA).
April 14, 2020 Item #9 Page 26 of 59
e 0
R, = Average Monthly Rental Rate in Carlsbad for a 2 Bedroom Apartm (HUD) Fair Market Rents for the San Diego MSA).
R3 = Average Monthly Rental Rate in Carlsbad for a 3 Bedroom Apartm
R4 = Average Monthly Rental Rate in Carlsbad for a 4 Bedroom Apartm
12 = Monthly Rental Income Available for a 2 Person Low Incc
I3 = Monthly Rental Income Available for 3 Person Low Income Househ
I4 = Monthly Rental Income Available for a 4 Person Low Inco
1s = Monthly Rental Income Available for a 5 Person Low Inco
(HUD Fair Market Rents for the San Diego MSA).
(HUD Fair Market Rents for the San Diego MSA).
Household (HUD Income Limits for the San Diego MSA).
(HUD Income Limits for the San Diego MSA).
Household (HUD Income Limits for the San Diego MSA).
Household (HUD Income Limits for the San Diego MSA).
-2-
April 14, 2020 Item #9 Page 27 of 59
0 0 EXHIf
INPUTS TO IMPACT FEE FORMULA VARIABLES
FORMULA - 3L
S = H (R-I)
S = Rental Subsidy Required by Household Size.
H = % of Total Households on Carlsbad's Section 8 Waiting List Eligible fox Bedroom (33%), 2 Bedroom (32Oh), 3 Bedroom (28%) or 4 Bedroom (7'
units.
R = Average Monthly Rent in Carlsbad for a 1 Bedroom ($556), 2 Bedroo
($695), 3 Bedroom ($966) and 4 Bedroom ($1139) Apartment (HUD F; Market Rents for the San Diego Region - 1993).
I = Monthly Rental Income Available for a Low Income Household of 2 Perso.
($673), 3 Persons ($7461, 4 Persons ($834) and 5 Persons ($893) (HC Income Limits for the San Diego MSA - 1993).
s2 - -33 ($556 - $673) - - - $38.61*
s3 - -32 ($695 - $746) - - - $16.32*
s, - -28 ($966 - $834) - - $36.96
SS - -07 ($1139 - $893) - - $1 7.22
-
-
-
-
FORMULA - 2
F = T (S, + S, + S, + S,) E
F = Dollar Value of Inclusionary Housing Impact Fee.
T = Unit Tenure of Availability - - 360 Months
- 15% Inclusionary Requirement = .15 E
360 ($.O + $.O + $36.96 + $17.22) .15 = $2925.72
F = $2925.72.
-
* hy rental subsidy which is less than or equal to $0 shall be equal to $8.
April 14, 2020 Item #9 Page 28 of 59
I1
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0 0 EX1
RESOLUTION NO. 93-268
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA ESTABLISHING AN INCLUSIONARY HOUSING IN-LIEU FEE AND FORMULA FOR CALCULATING THE IN-LIEU FEE
WHEREAS, the City of Carlsbad has adopted
5
of it's Regional Share housing objectives for lower-income 6
Inclusionary Housing Ordinance in order to enable the achieve:
9
WHEREAS, the Inclusionary Housing Ordinance mand 8
moderate-income units; and 7
that a minimum of fifteen percent (15%) of all residential u
lo in any master plan, specific plan or residential subdivisio
11 reserved and affordable to lower-income households; and
12 WHEREAS, the Inclusionary Housing Ordinance speci
13 that all residential market rate dwelling units resulting fron
14 construction of rental or for-sale units shall be subjecl
15 inclusionary requirements; and
16
17
WHEREAS, based upon a comprehensive strategy formul
to address the City's affordable housing needs over the sho
Imid-, and long-term buildout of the City, specific Inclusio
requirements (i.e.; construction of affordable units, paymen
in-lieu fees or payment of inclusionary housing impact fees)
been identified for various classes of residential projects;
WHEREAS, in order to be consistent with the Hot
Element of the General Plan and the Inclusionary HOL
Ordinance, the following classes of residential project:
permits shall be eligible to satisfy Inclusionary hol
requirements for lower income households through the paymer
the City of an In-lieu Fee:
l8 I 19 j
20
21
22
23
24
25
26
27
28 (1) Any residential project (i.e. ; tentative
tentative map for the conversion of apartments to air-:
EXHIBIT 4
April 14, 2020 Item #9 Page 29 of 59
ll 0 0
condominiums, parcel map, planned unit development, I
development plan, conditional use permit, residential mobile :
park permit or redevelopment permit) of six (6) dwelling unit
less, for which the application was deemed complete on or a
the effective date of the Inclusionary Ordinance, and is apprl
after the effective date of the Inclusionary Ordinance:
1
2
3
4
5
€5 7 I1 (2) Any residential tentative map or parcel
revision, including a tentative map revision for the conversio
apartments to air-SpaCe condominiums, of six (6) dwelling unit
less, for which the application was deemed complete on or a
the effective date Of the Inclusionary Ordinance, and is appr,
a
9
10
11
12
13
~~
after the effective date of the Inclusionary Ordinance;
(3) Any residential tentative map or parcel map of
(6) dwelling units Or less, approved on or after the effec.
14
15
16
17
18
19
20
21
22
23
date of the Inclusionary Ordinance, and is subsequently apprc
for extension after the effective date of the Inclusiol
Ordinance:
I
(4) Any residential planned unit development, !
development plan, conditional use permit, residential mobile 1
park permit or redevelopment permit for six (6) dwelling unit
less, approved on or after the effective date of the Inclusioi
Ordinance, and subsequently approved for amendment after
effective date of the Inclusionary Ordinance:
(5) Development of six (6) or fewer new mobile 1
24
27
WHEREAS, the in-lieu fee to be paid for each market : 26
date of the Inclusionary Ordinance. 25
pads in a mobile home park, approved on or after the effec.
dwelling unit would be equal to fifteen percent (15%) of
28 /I 11 2
April 14, 2020 Item #9 Page 30 of 59
II a 0
subsidy required to make affordable to a lower-income househ
1
attached housing unit; and 2
for a thirty (30) year tenure, one newly constructed, tyy
3 WHEREAS, the required subsidy is based upon the finc *
Housing1!, prepared by an ad hoc committee composed of City E !j
of a 1991 economic study, "Economics of Developing Afforc
and private for-prof it and non-profit developers; and 6
7 WHEREAS, the findings of this 1991 economic study
8 been updated for 1993; and
9 WHEREAS, the formula for calculating the dollar vali
10 the in-lieu fee is included on Exhibit 112"; and
11 WHEREAS, based upon this formula, and current estin
12
13
of the variables contained therein, the dollar value of thc
time to time by resolution of the City Council; and 16
112", the dollar value of the in-lieu fee would be adjusted 15
WHEREAS, consistent with the formula included on Exh 14
Lieu Fee would be $11,485.00 (see Exhibit 11311); and
17 WHEREAS, the in-lieu fee would be assessed against
18 ,market rate residential units subject to this fee: and
19 WHEREAS, the in-lieu fee would be required to be pa:
20
21
the City at the time of building permit issuance or prior tc
28
housing and reasonable costs of administration. 27
providing funding assistance for the provision of afforc 26
deposited in a Housing Trust Fund and used for the purpos 25
WHEREAS, the In-lieu Fee( s) paid to the City woul 24
condominiums: and 23
compliance for the conversion of existing apartments to air-s 22
recordation of a final map and/or issuance of certificat
3
April 14, 2020 Item #9 Page 31 of 59
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NOW, THEREFORE, BE IT RESOLVED by the City Council
City of Carlsbad as follows:
Ill. That the method for calculating the dollar vi
the Inclusionary Housing In-Lieu Fee, established by Municipi
Title 21, Section 21.85.050 In-Lieu Contributions, shall be
formula shown on Exhibit I12l1, a copy of which is affixed ar
a part hereto: and
2. That the input values for the variables contaj
the formula given in Exhibit 11311 shall be, and the reE
Inclusionary Housing In-Lieu Fee shall be, as shown in Exhib:
a copy of which is affixed and made a part hereto, and
3. The formula, input values, and fee shall
effective 60 days after the adoption of this resolution, ar
4. That the input values for the variables I
formula and the In-Lieu Fee would be reviewed annually and u
by resolution of the City Council."
PASSED, APPROVED AND ADOPTED at a regular meeting
City Council of the City of Carlsbad, California, on the 21s
of SEPTEMBER , 1993, by the following vote, to wit:
AYES : Council Members Lewis, Stanton, Kulchin, Nygaard, F
NOES : None
ABSENT : None
ATTEST:
1.4!c& A.L ALEITHA L. RAUTENKRANZ, City C*k
( SEAL)
April 14, 2020 Item #9 Page 32 of 59
0 e E
M-LIEU FEE FORMULA
X - - CA+B+C+D)E
4
X - Dollar Value of In-Lieu Fee. -
A = The capital subsidy required to develop within the City of Carlsbad a assisted 2 BR/1 BA, 850 sq. ft. condominium unit, and deed restrict the u as affordable to a low income family of 3 for a 30 year tenure. *
B = The capital subsidy required to develop within the City of Carlsbad a assisted 3 BR/2 BA, 1,100 sq. ft. condominium unit, and deed restrict 1 units affordable to a low income family of 4 for a 30 year tenure. *
C = The capital subsidy required to develop within the City of Carlsbad a assisted 2 BW1 BA, 850 sq. ft. apartment unit, and deed restrict the unit affordable to a low income family of 3 for a 30 year tenure. *
D = The capital subsidy required to develop within the City of Carlsbad b assisted 3 BW2 BA, 1,100 sq. ft. apartment unit, and deed restrict the u: as affordable to a low income family of 4 for a 30 year tenure. *
E - - 15% Inclusionary Requirement = .15
*I' Economics of the Development of Affordable Housing", City of Carlsbad, Decembl
1991.
April 14, 2020 Item #9 Page 33 of 59
e 0 E:
INPUTS TO IN-LIEU FEE FORMULA VARuiBLES
FORMULA:
X=(A+B+C+D)E
4
I.
TENANT SUBSIDY REQUIREMENTS BY UNIT SIZE FOR CARLSBAD
~~~
unit Capital Subsidy Required Income Size Level For-Sale Units Rental Units II I I I i 2BR/SIZE/lBA 850 SQ.FT.
3BW2BA 1,100 SQ.FT. $92,943 $62,977 Low
~ ~ ~ ~~~-
Low $86,843 $63,516
($63,516 + $62,977 + $86,843 + $92,9431.15 = $11,485.46 4
X = $11,485.46
April 14, 2020 Item #9 Page 34 of 59
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e 0
RESOLUTION NO. 9 6 - 2 6 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING AN
GRANTING A REFUND THEREOF.
INCLUSIONARY HOUSING IN-LIEU FEE AND
WHEREAS, the City of Carlsbad has adopted an Inclusionary Housing Ordinanc
order to enable the achievement of it's Regional Share housing objectives for lower-inc
units; and
WHEREAS, the Inclusionary Housing Ordinance mandates that a minimum of fiJ
percent (1 5%) of all residential units in any master plan, specific plan or residential subdivj
be reserved and affordable to lower-income households; and
WHEREAS, the Inclusionary Housing Ordinance specifies that all residential ma
rate dwelling units resulting from new construction of rental or for-sale units shall be subjel
inclusionary requirements; and
WHEREAS, based upon a comprehensive strategy formulated to address the C
affordable housing needs over the short-mid, and long-term buildout of the City, spel
inclusionary requirements @e., construction of affordable units, payment of in-lieu fee!
payment of inclusionary housing impact fees) have been identified for various classe:
residential projects; and
WHEREAS, the City Council is authorized by Carlsbad Municipal Code Sec
21 35.050 to establish the amount of the in-lieu fee from time to time by resolution; and
WHEREAS, the in-lieu fee to be paid for each market rate dwelling unit should be ec
to fifteen percent (15%) of the subsidy required to make affordable to a lower-incc
household, for a fifty-five (55) year tenure, one newly constructed, typical attached hou
1
EXHIBIT 5
April 14, 2020 Item #9 Page 35 of 59
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0 0
unit; and
WHEREAS, an appropriate measure of this subsidy is the actual local subsidy reqi
by the Villa Loma Affordable housing project to construct lower-income affordable units; a
WHEREAS, this required subsidy is also the cost of an Affordable Housing Cred
defined by the City Council in City Council Policy No. 58; and
WHEREAS, this required subsidy is currently approximately $30,100; and
WHEREAS, 15% of this required subsidy would currently result in an In-lieu Fe
approximately $4,5 15 per market rate unit; and
WHEREAS, pursuant to Carlsbad Municipal Code Section 21 35.050 the In-Lieu
will be applicable to and assessed against all market rate residential units which have bee
will be subject to this fee; and
WHEREAS, the In-Lieu Fee is required to be paid to the City at the time of buil
permit issuance or prior to the recordation of a final map and/or issuance of certificatt
compliance for the conversion of existing apartments to air-space condominiums; and
WHEREAS, the In-Lieu Fee paid to the City would be deposited in a Housing T
Fund and used for the purpose of providing funding assistance for the provision of afford,
housing and reasonable costs of administration, in accordance with the City’s General 1
Housing Element.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carls
as follows:
1. That the amount of the Inclusionary Housing In-Lieu Fee, established by Munic
Code Title 21, Section 21.85.050 In-Lieu Fee Contributions, shall be 15% of the cost oj
Affordable Housing Credit in the Villa Loma affordable housing project which is the sub!
2
April 14, 2020 Item #9 Page 36 of 59
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e *
requirement to construct a low-income affordable housing unit; and
2. A refund of the In-lieu fee paid by Pacific Pointe (CT 94-02/PUD 94-01) on Jan1
18, 1995, under protest is hereby approved in the amount of $41,820 (the difference betv
the prior fee and the amount established by this action).
3. The In-Lieu Fee shall hereafter be updated as part of the annual adoption of 1
fees by resolution of the City Council.
4. This action results in a decrease of an existing development fee and shall be effec
immediately.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Counc
, 1996, by the following votl the City of Carlsbad, California, on the 23rd day of
wit:
JULY
AYES:
NOES: None
ABSENT: None
ABSTAIN: None
Council Members Lewis, Nygaard, Kulchin, Finnila, Hall
ATTEST:
&!&&x! QL-4- 7 ALETHA L. RAUTENKRANZ, City Clerk!
(SEAL)
3
April 14, 2020 Item #9 Page 37 of 59
Page 1 of 4
CITY OF CARLSBAD
Policy No. 58
Date Issued September 12, 1995
Effective Date sent. 12. 1995
COUNCIL POLICY STATEMENT Cancellation Date-
Supersedes No.
General Subject:
Specific Subject:
AFFORDABLE HOUSING
Sale of Affordable Housing
Credits
Copies to: City Council, City Manager, City Attorney, Department and Division Heads,
Employee Bulletin Boards, Press, File.
PURPOSE
To establish a policy to be followed by City Council and City staff in selling Affordable Housing Credits,
controlled by the City, to developers who will use the Credits to satisfy obligations to provide affordable
housing pursuant to the City’s Inclusionary Housing Ordinance (CMC Chapter 21.85).
BACKGROUND
In the development of the 344-u& affordable housing project known as Villa Loma in the Southwest
Quadrant of the City, the developers and the City created a project which may be treated as a Combined
Project as defined in the City’s Inclusionary Housing Ordinance. With City Council approval, Combined
Projects allow “some or all of the inclusionary units associated with one residential project site to be
produced and operated at an alternative site”. The “alternative site” becomes a Combined Project. Villa
Loma was conceived and developed with City participation based on the creation of 184 excess affordable
housing units which would be available to satisfy other developers’ inclusionary housing obligations thus
making it a potential Combined Project. City financial participation in the project was also based on the
concept of recovering costs through the sale of the excess units. Furthermore, Villa Loma was structured to
give the City control of these units (Affordable Housing Credits or “Credits”) and their sale to potential
Combined Project participants. Therefore, it is necessary to establish a policy to guide the City in the
effective implementation of these Affordable Housing Credit sales transactions.
Two basic factors will be considered in a Credit sale transaction -- the financial aspect, which is the Credit
pricing -- this determines cost to a purchaser and revenue to the City; and the affordable housing aspect,
which is the use of this mechanism to satisfy a developer’s obligation under the Inclusionary Housing
Ordinance. Based on these considerations, the following will guide Credit sales:
EXHIBIT 6
April 14, 2020 Item #9 Page 38 of 59
Page 2 of 4
CITY OF CARLSBAD
COUNCIL POLICY STATEMENT
Policy No. 58
Date Issued Sept. 12, 1995
Effective Date Sept. 12, 1995
Cancellation Date
Supersedes No.
?eneral Subject:
gpecific Subject:
AFFORDABLE HOUSING
Sale of Affordable Housing
credits
Copies to: City Council, City Manager, City Attorney, Department and Division Heads,
Employee Bulletin Boards, Press, File.
hice, The Credit price will be determined according to the following formula which divides the local
financial contribution provided to the Villa Loma project by the total number of Credits available.
The local financial contribution consists of all City financial assistance provided to the project (either
as loans or expenditures for land including accrued interest on such amounts for the period of time
they are outstanding); and the local developer contribution to the project provided in order to satisfy
an affordable housing obligation):
Affordable Housine Credit Pricing Formula
= Unit Price of Affordable
+ Number of Affordable Housing Credits (Rounded
Local Financial Contribution Housina Credits Available to nearest $l.OOO)*
City Contribution $4.2 Million*
Developer Contribution
(Aviara Land Associates) .9
TOTAL $5.1 Million
184 $28,000*
* To be adjusted with the addition of interest.
Terms of Purchase and Sale. The commitment to purchase and sell Credits will be accomplished
through an Affordable Housing Agreement as required by the Inclusionary Housing Ordinance. ‘Ihi:
Agreement will contain the terms of the Credit sale and will acknowledge the satisfaction of ar
affordable housing obligation through participation in a Combined Project (Villa Loma).
April 14, 2020 Item #9 Page 39 of 59
Page 3 of 4
-
-
CITY OF CARLSBAD
COUNCIL POLICY STATEMENT
Policy No. 58
Date Issued sent. 12. 1995
Effective Date sent. 12, 1995
Cancellation Date
Supersedes No.
General Subject:
Specific Subject:
AFFORDABLE HOUSING
Sale of Affordable Housing
Credits
Copies to: City Council, City Manager, City Attorney, Department and Division Heads,
Employee Bulletin Boards, Press, File.
. Selection of Purchasers. The following procedure will apply to the selection of purchasers and
allocation of Credits:
1. Project Review. Staff, through the Combined Project Review Committee (see Council Policy
No. 57) will review all applications and approved projects with inclusionary requirements and
determine which projects will be recommended to satisfy their obligations through the
purchase of Credits. If the number of acceptable projects have affordable housing
requirements which exceed the available number of Credits, projects will be ranked and
allocated Credits accordingly. Projects will be reviewed and ranked using the following
criteria:
a) The immediacy of the need to satisfy an affordable housing obligation with respect to
the market rate project that is generating the obligation.
b) The readiness and capacity of the developer to enter into an Affordable Housing
Agreement and perform under its terms.
cl The acceptability of the Combined Project as an off-site option in lieu of the
satisfaction of the affordable housing obligation on-site with respect to the project that
is generating the obligation (see Council Policy No. 57).
2. Electing to Purchase Credits. Developers will be notified of staff’s recommendation to permit
the purchase of Credits and given the opportunity to accept or reject this option.
3. Reservation of Credits. Developers wishing to use the option of purchasing Credits must have
their projects approved with conditions allowing this option. In addition to Planning
Commission approval, the recommendation of the Housing Commission will be required for
the Credit purchase option of satisfying the Inclusionary Housing Obligation. When a project
is approved (e.g., tentative map) with the Credit purchase condition, a reservation of the
Credits is made for the project.
April 14, 2020 Item #9 Page 40 of 59
Page 4 of 4
CITY OF CARLSBAD
COUNCIL POLICY STATEMENT
Policy No. 58 Date Issued Sept. 12, 1995
Effective Date sent. 12. 1995
Cancellation Date
Supersedes No.
General Subject:
Specific Subject:
AFFORDABLE HOUSING
Sale of Affordable Housing
Credits
Copies to: City Council, City Manager, City Attorney, Department and Division Heads,
Employee Bulletin Boards, Press, File.
4. Affordable Housing Aareement. Within sixty (60) days of the approval of the Credit purchase
condition, the developer must deliver to the Housing and Redevelopment Director a signed
Affordable Housing Agreement in the form prescribed by the City with a non-refundable
deposit in an amount equal to 10% of the total Credit sale price. The Affordable Housing
Agreement will be scheduled for City Council consideration and, if and when approved, will
be executed by the City. The Affordable Housing Agreement will require payment of the
balance of the purchase price upon execution and prior to final map or issuance of a building
permit.
5. Failure of Develoncr to Perform or Denial of Purchase Ontion. If the developer is unable to
perform as required, or is denied the option of purchasing Credits, the Credits will be made
available to another project(s), subject to this process.
6. This policy is subject to all other requirements of the Inclusionary Housing Ordinance.
April 14, 2020 Item #9 Page 41 of 59
CITY OF CARLSBAD
Policy No. 57
Date Issued Aueust 8. 1995
Effective Date Auaust 8, 1995
COUNCIL POLICY STATFMENT Cancellation Date
Supersedes No.
General Subject:
Specific Subject:
AFFORDABLE HOUSING
Off-site and Combined
Inclusionary Housing Projects
Copies to: City Council, City Manager, City Attorney, Department and Division Heads,
Employee Bulletin Boards, Press, File.
BACKGROUND
The City’s Inclusionary Housing Ordinance (CMC Chapter 21.85) establishes certain requirements under
which residential developers must provide housing that is affordable to lower-income households as a
condition of project approval and permit issuance.
The Ordinance provides that inclusionary units “should be built on-site and, wherever reasonably possible,
be distributed throughout the project site. ” The Ordinance also provides that “circumstances may arise..
in which the public interest would be served by allowing some or all of the inclusionary units associated with
one project site to be produced and operated at an alternative site or sites.” This alternative is described
as a “Combined Inclusionary Housing Project” or “Combined Project”. The Ordinance, in addressing
Combined Projects, states that “it is the exclusive prerogative of the final decision making authority of the
City to determine whether or not it is in the public interest to authorize the residential sites to form a
Combined Inclusionary Housing Project. ”
PURPOSE
It is the purpose of this policy to establish the criteria which will be utilized in order to make the necessary
finding that off-site satisfaction of an inclusionary housing requirement, when proposed through a Combined
Project, is in the public interest.
POLICY
The following criteria will be applied in order to make the necessary public interest finding. Each criteria
is defined in terms of specific questions which, when affirmatively answered, would support an off-site
option:
Page 1 of 4 April 14, 2020 Item #9 Page 42 of 59
Policy No. 57
CITY OF CARLSBAD Date Issued August 8, 1995
Effective Date August 8. 1995
COUNCIL POLICY STATEMENT Cancellation Date
Supersedes No.
General Subject: AFFORDABLE HOUSING
Specific Subject: Off-site and Combined
Inclusionary Housing Projects
Copies to: City Council, City Manager, City Attorney, Department and Division Heads,
Employee Bulletin Boards, Press, File.
1. Feasibilitv of the On-site Prooosal.
. Are there significant feasibilitv issues due to factors such as project size, site constraints, and
competition from multiple projects that make an on-site option impractical?
. Will an affordable housing product be difficult to integrate into the proposed market
development because of significant price and product type disparity?
. Does the on-site development entity lack the cauacitv to deliver the proposed affordable
housing on-site?
!. Relative AdvantaeeslDisadvantataaes of the Off-site Prouosal
. Does the off-site option offer greater feasibilitv and cost effectiveness than the on-site
alternative, particularly regarding potential local public assistance and when applying the
City’s Affordable Housing Financial Assistance Policy.
. Does the off-site proposal have location advantages over the on-site alternative, such as
proximity to jobs, schools, transportation, services; less impact on other existing
developments, etc.?
. Does the off-site option offer a development entity with the canacitv to deliver the proposed
project?
. Does the off-site option satisfy multiule develouer obligations that would be difficult to satisfy with multiple projects?
Page 2 of 4 April 14, 2020 Item #9 Page 43 of 59
Ic
/--
CITY OF CARLSBAD
COUNCIL POLICY STATEMENT
General Subject:
Specific Subject:
AFFORDABLE HOUSING
Off-site and Combined
Inclusionary Housing Projects
Policy No. 57
Date Issued Auaust 8. 1995 Effective Date Auaust 8, 1995
Cancellation Date
Supersedes No.
Copies to: City Council, City Manager, City Attorney, Departm&t and Division Heads,
Employee Bulletin Boards, Press, File.
3. Advancing Housing Goals
. Does the off-site proposal advance and/or support City housing goals and policies as
expressed in the Housing Element, CHAS and Inclusionary Housing Ordinance?
It is likely that off-site proposals will involve “mixed” results with the application of the above criteria. The
“public interest” finding shall be made when a Combined Project Review Committee made up of the City
Manager, City Attorney, Community Development Director, Financial Management Director, Planning
Director, Housing & Redevelopment Director, and the Mayor (ex-officio), reaches consensus that a proposal
substantially and affiiatively satisfies the above criteria and that this conclusion can be appropriately
documented through the use of a Combined/Off-site Project Evaluation Assessment Worksheet. (Attachment
1).
PROCEDURE
1. Projects with an inclusionary housing obligation will be processed according to the requirements of
the Inclusionary Housing Ordinance.
2. Project approvals must be conditioned with the option to propose an off-site method (i.e., Combined
Project) of satisfying the inclusionary obligation. A project proposing an off-site option may or may
not also propose an on-site option.
3. Prior to final map or issuance of building permits, applicants must submit an Affordable Housing
Agreement as described in the Inclusionary Housing Ordinance which specifically describes any off-
site proposal.
4. Off-site proposals in the form of a draft Affordable Housing Agreement will be reviewed by the
Combined Project Review Committee and it will be determined if the necessary findings can be made
by staff.
Page 3 of 4 April 14, 2020 Item #9 Page 44 of 59
Policy No. 57
CITY OF CABLSBAD Date Issued August 8. 1995
Effective Date Aunust 8. 1995 COUNCIL POLICY STATEMENT Cancellation Date
Supersedes No.
General Subject: AFFORDABLE HOUSING
Specific Subject: Off-site and Combined
Inclusionary Housing Projects
Copies to: City Council, City Manager, City Attorney, Department and Division Heads,
Employee Bulletin Boards, Press, File.
5. Staff’s findings and recommendation, including the Combined/Off-site Project Assessment
Worksheet, will accompany the Affordable Housing Agreement to the Housing Commission for
action.
5. Prior to final map or issuance of building permits, the proposed Affordable Housing Agreement
will be considered by City Council along with the recommendation of staff and Housing
Commission.
7. City Council will be the tinal decision making authority in determining whether an off-site
proposal is in the public interest and permitting this option.
Page 4 of 4 April 14, 2020 Item #9 Page 45 of 59
OFF-SITE AND COMBINED INCLUSIONARY HOUSING PROJECT
ASSESSMENT WORKSHEET
,JAcK($T@TJ,ND: ‘,
1. Applicant Name and Address:
2. Off-site or Combined Project Name:
3. Description of Project with lnclusionary Housing Obligation:
4. Proposed On-site Project Description (ii any):
5. Proposed Off-site Project Description:
6. Description of On-site Project Constraints:
Attachment “1” to Council Policy Statement No. 57 April 14, 2020 Item #9 Page 46 of 59
.-
_-
:&jji&$,,&
ASSESSMEN~CO~~CLUS[ON
ASSESWENT~IA
1. Feasibilitv of the On-site Proposal.
,(Ch&k apimjyate ‘%0x)
DJES~‘h’OTWWORT $&&,q~ oAFsm ,,, ‘xsF-sm~pRowsAL ,~UsrvE PRomsAL
a. Are there significant feasibility issues due to
factors such as project size, site constraints,
amount and availability of required subsidy,
and competition from multiple projects that
make an on-site option impractical?
Brief Narrative:
b. Will an affordable housing product be difficulty
to intearate into the proposed market
development because of significant price
and product type disparity?
Brief Narrative:
c. Does the on-site development entity have
the capacitv to deliver the proposed
affordable housing on-site?
Brief Narrative:
2. Relative AdvantaoeslDisadvantaaes of the Off-
site Proposal.
a. Does the off-site option offer greater feasibility
and cost effectiveness than the on-site
alternative, particularly regarding potential
lOCal DUbliC assistance?
April 14, 2020 Item #9 Page 47 of 59
,- Brief Narrative:
.4.5-E--~
Brief Narrative:
nssESsMEwc~~Lu
(Check +qM?ptis?e ,box)’
LWESt@TW’FORT -0KSm l3FF+mpRoww I&txwcLusrw’
b. Does the off-site proposal have location
advantages over the on-site alternative, such
as proximity to jobs, schools, transportation,
services; less impact on other existing
developments, etc.?
Brief Narrative:
c. Does the off-site option offer a development
entity with the caoacity to deliver the proposed
project?
d. Does the off-site option satisfy m
develoDer obliaations that would be difficult
to satisfy with multiple projects?
Brief Narrative:
3. Advancins Housins Goals and Stratesy
a. Does the off-site proposal advance and/or
support City housing goals and policies
expressed in the Housing Element, CHAS
and Inclusionary Housing Ordinance?
Brief Narrative:
,q~~,~~&J&T~' p@zS'h%?TSOPPOR ~slJ-,oFF-anE
SUMMARY /~oNoL0sIM~ PROWSAL ,'
,,,,
3 April 14, 2020 Item #9 Page 48 of 59
/-
,-
4 April 14, 2020 Item #9 Page 49 of 59
Exhibit 7YearDevelopmentTypeExtremely Low Very Low Low TotalHousing Trust Fund Amount (Fund 133)1999 Rancho Carlsbad22 homebuyers22 22 752,533$ 1999 Cherry Tree WalkCondos42 42 453,600 1999Tyler CourtSenior Apartments 37 3875 1,000,000 1999 The CliffsTownhomes5 5 75,000 2000Laurel TreeApartments138 138 434,000 2000Poinsettia StationApartments9292 920,000 2000Rancho CarrilloApartments32 84 116 1,157,584 2001 Vista Las FloresApartments17 11 28 363,948 2001 SerranoCondos9090 1,350,000 2004 Mariposa AptsApartments32 74 106 1,060,000 2005La Costa PalomaApartments53 127 180 2,070,000 2005Mulberry at Bressi Ranch Condos100 100 1,840,000 2005Village by the SeaCondos11 11 220,000 2007Cassia HeightsApartments5656 1,321,529 2007The BluffsCondos1010 200,000 2008Hunter's PointApartments90 78 168 1,932,000 2013Laguna Point1 homebuyer0 108,150 2013Rose Bay1 homebuyer0 229,775 2016Juniper at the PreserveApartments0 1,280,000 Totals69 378 792 1,239 16,768,119$ 1997 La Posada de GuadalupeShelter50 beds 200,000$ 1999 Various homeownersDownpayment assistance133 133 1,680,000$ 2009VariousDownpayment assistance2222 255,518 2010-2019Various homeownersMinor home repair1212 32,877 2012NC Solutions for ChangeProperty Acquisition (Vista)780,000 2013Carol & HardingProperty Acquisition4444 7,408,000 2014NC Solutions for ChangeProperty Acquisition16 16 2,646,000 Totals227 227 13,002,395$ Income LevelNew ConstructionOtherHousing Trust Fund-assisted HousingApril 14, 2020Item #9 Page 50 of 59
CITY COUNCIL Minutes
August 20, 2019 5 p.m.
CALL TO ORDER: 5:00 p.m.
ROLL CALL: Blackburn, Bhat-Patel, Schumacher, Hamilton.
Absent: Hall.
ANNOUNCEMENT OF CONCURRENT MEETINGS: None.
Council Chamber
1200 Carlsbad Village Drive
Carlsbad, CA 92008
PLEDGE OF ALLEGIANCE: Mayor Pro Tern Bhat-Patel led the Pledge of Allegiance.
INVOCATION: None.
APPROVAL OF MINUTES:
Minutes of the Regular Meeting held June 25, 2019.
Minutes of the Special Meeting held July 9, 2019.
Minutes of the Regular Meeting held July 9, 2019.
Minutes of the Regular Meeting held July 16, 2019.
Minutes of the Special Meeting held July 23, 2019.
Minutes of the Regular Meeting held July 23, 2019.
Motion by Council Member Blackburn, seconded by Council Member Schumacher, to approve
the minutes as presented. Motion carried, 4/0/1 (Hall -Absent).
PRESENTATIONS: None.
CONSENT CALENDAR:
Item No. 2 was pulled for discussion by a member of the public.
Motion by Council Member Blackburn, seconded by Council Member Schumacher, to approve
Consent Calendar Item Nos. 1 and 3 through 7. Motion carried, 4/0/1 (Hall -Absent).
1.REPORT ON CITY INVESTMENTS -Acceptance of report on City Investments as of June 30,
2019. (Staff contact: Craig Lindholm, City Treasurer; Laura Rocha, Administrative Services)
2.AWARD OF CONTRACT FOR TRANSPORTATION DEMAND MANAGEMENT SERVICES -
Adoption of a Resolution approving a Professional Services Agreement with UrbanTrans
North America to provide Professional Transportation Demand Management Consulting
Services in an amount not to exceed $199,000 annually for a term of two years. (Staff contact:
Claudia Huerta, Community & Economic Development)
EXHIBIT 8
April 14, 2020 Item #9 Page 51 of 59
August 20, 2019 Carlsbad City Council Regular Meeting Page 6
Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Blackburn, to approve
Ordinance No. CS-356 amending Carlsbad Municipal Code Chapter 2.28, Sections 2.15.050
and 2.12.125. Motion carried 4/0/1 (Hall -Absent).
Minute Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Hamilton, to
include a communication plan in the workplan for the Traffic and Mobility Commission for
staff to provide a recommendation for how frequently the chair of the Commission should
report to Council. Motion carried, 4/0/1 (Hall -Absent).
ORDINANCE FOR ADOPTION: None.
PUBLIC HEARINGS:
9. VILLAGE AND BARRIO MASTER PLAN -ACCEPTANCE OF THE CALIFORNIA COASTAL
COMMISSION'S SUGGESTED MODIFICATIONS -Introduction of Ordinance No. CS-357
acknowledging receipt of the California Coastal Commission's Resolution of Certification
including suggested modifications for LCPA 14-01, and approving the associated suggested
modifications to the Village and Barrio Master Plan and Local Coastal Program. Case Name:
Village and Barrio Master Plan. Case No.: MP 14-01/LCPA 04-01 (DEV08014) (Staff contact:
Scott Donnell, Community & Economic Development)
City Manager's Recommendation: Take public input, close the public hearing and introduce
the Ordinance.
Mayor Pro Tem Bhat-Patel opened the duly noticed Public Hearing at 7:42 p.m.
Senior Planner Scott Donnell, Principal Planner Dave de Cordova, and City Planner Don Neu
presented the report and reviewed a PowerPoint presentation (on file in the Office of the City
Clerk).
Simon Angel spoke about his concern with the disparity of treatment between the Village
District and Barrio projects which he feels impact residents in those neighborhoods differently.
Michael Shertzer spoke in support of the Village portion of the Item, but stated he was also
concerned with the parking aspect and the disparity in treatment between the Village and
Barrio.
Lucinda Vigne expressed concern about the Coastal Zone Area and requested clarification
about short-term vacation rentals.
Seeing no one else wishing to speak, Mayor Pro Tem Bhat-Patel closed the duly noticed Public
Hearing at 7:57 p.m.
In response to an inquiry by Mayor Pro Tern Bhat-Patel to address the speakers' questions
and concerns, Senior Planner Scott Donnell explained there is no change to the regulations
April 14, 2020 Item #9 Page 52 of 59
August 20, 2019 Carlsbad City Council Regular Meeting Page 7
for short-term vacation rentals. He also explained the differences, level of review, and past
streamlining efforts for projects in the Village and Barrio areas.
In response to an inquiry by Council Member Hamilton, City Planner Don Neu explained that
while a timeline target may be feasible, delays may occur due to certain items like
architectural design standards. He also shared staff would need further direction from
Council on what else they want to modify in the plan. Mr. Neu also shared an option on how
to process the amendments.
City Attorney Celia Brewer titled and introduced the Ordinance.
Motion by Council Member Blackburn, seconded by Council Member Schumacher, to
introduce Ordinance No. CS-357 acknowledging receipt of the California Coastal
Commission's Resolution of Certification including suggested modifications for LCPA 14-01,
and approving the associated suggested modifications to the Village and Barrio Master Plan
and Local Coastal Program. Motion carried, 4/0/1 (Hall -Absent).
Minute Motion by Council Member Hamilton, seconded by Council Member Schumacher, to
direct staff to bring back for Council consideration in two months, a workplan that includes a
timeline to address the following amendment package for the Village and Barrio Master Plan:
1) Decision making authority for the entire Village and Barrio Master Plan to City Council; 2)
Permitted uses vital to a live, work, play community; 3) Parking-in-lieu fees to be directed to
a specific area for parking and the potential for public/private partnerships for a specific
zoned parking structure; 4) Traffic impact analysis and mitigation fees specific to the Village
and Barrio Master Plan area and roadway conditions outside of the Coastal Zone; 5) Objective
architectural, historical and design standards within the Village and Barrio Master Plan area;
6) Solutions and options to avoid housing-in-lieu payments in the Village and Barrio area; 7)
Village and Barrio specific inclusionary policy; and to allow for general conversation regarding
additional components of the plan. Motion carried, 4/0/1 (Hall -Absent).
Mayor Pro Tem Bhat Patel announced that Item No. 10 will be continued to the City Council
meeting on August 27, 2019.
10. PURE PROJECT BREWERY AND TASTING ROOM -Adoption of a Resolution approving a Minor
Site Development Plan and Conditional Use Permit for a 2,206-square-foot brewery and
tasting room located at 2825 State Street in the Village Center District of the Village and Barrio
Master Plan and within Local Facilities Management Zone 1; and,
Adoption of a Resolution approving a Parking In-Lieu Fee Program Participation Agreement
between the City of Carlsbad and Russell Satterly, Susan Satterly and Lindo Mino, property
owners, for the project known as Pure Project Brewery and Tasting Room located at 2825
State Street in the Village Center District of the Village and Barrio Master Plan and within
Local Facilities Management Zone 1. Case Name: Pure Project Brewery and Tasting Room.
Case No.: SDP 2019-0002/CUP 2018-0021 (DEV2018-0196). (Staff contact: Shannon Harker,
Community & Economic Development)
April 14, 2020 Item #9 Page 53 of 59
CITY COUNCIL
Dec. 10, 2019 6 p.m.
CALL TO ORDER: 6:00 p.m.
ROLL CALL: Hall, Blackburn, Bhat-Patel, Schumacher.
Council Chamber
1200 carlsbad Village Drive
Carlsbad, CA 92008
ANNOUNCEMENT OF CONCURRENT MEETINGS: The Mayor announced that the City Council
is serving as the Carlsbad Municipal Water District Board of Directors on Item No. 9.
PLEDGE OF ALLEGIANCE: Mayor Pro Tern Bhat-Patel led the Pledge of Allegiance.
INVOCATION: None.
PUBLIC REPORT OF ACTION TAKEN IN CLOSED SESSION: None.
APPROVAL OF MINUTES:
Minutes of the Regular Meeting held Oct. 22, 2019
Minutes of the Special Meeting held Nov. 12, 2019
Minutes of the Regular Meeting held Nov. 12, 2019
Motion by Mayor Pro-Tern Bhat-Patel, seconded by Council Member Blackburn, to approve
the minutes as presented. Motion carried unanimously, 4/0.
PRESENTATIONS:
Proclamation in Recognition of Energy Upgrade California.
Mayor Hall introduced Laura Rosenthal, Field Team Manager of Energy Upgrade California and
former Mayor of the City of Malibu. Council Member Schumacher presented the
proclamation. Ms. Rosenthal shared about Energy Upgrade California's statewide educational
initiative to encourage residents to be more energy efficient.
PUBLIC COMMENT:
Edward Fox, representing San Diego Veterans for Peace and representing a group, (Jim Brown
and Victor White) spoke about the organization's goals and accomplishments in assisting
veterans. He also shared historical and current information on nuclear weapons and threats.
He requested Council to approve a resolution to endorse the California Assembly joint
Resolution Nos. 30 and 33 and deliver this to the City of Carlsbad's sister city of Futso and to
the cities of Hiroshima and Nagasaki as part of the commemoration of the 75th anniversary of
the only use of atomic weapons ever used in war in Japan.
Minute Motion by Council Member Schumacher, seconded by Mayor Pro-Tern Bhat-Patel, to
place on a future agenda for Council consideration of a resolution supporting California
Assembly joint Resolution Nos. 30 and 33 to be delivered to Futso, Hiroshima, and Nagasaki
April 14, 2020 Item #9 Page 54 of 59
Dec.10,2019 Carlsbad City Council Regular Meeting Page 8
In response to an inquiry from Mayor Pro Tern Bhat-Patel, City Manager Scott Chadwick
recommended Council make a minute motion for staff to complete a comprehensive
report on comparable coastal jurisdictions with short-term vacation rentals.
Minute Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Schumacher,
for staff to complete a comprehensive report on comparable coastal jurisdictions with
short-term vacation rentals. Minute Motion revised to Substitute Minute Motion.
Council Member Schumacher explained she would be more apt to vote for the study if she
knew Council would be pursuing to amend the Short-Term Vacation Rental Ordinance. She
also explained she would like an update on the Short-Term Vacation Rental Subcommittee.
Mayor Pro Tern Bhat-Patel explained for the record that as a researcher, she makes
decisions based on analysis. She explained that because short-term vacation rentals have
been a highly contentious topic throughout the city and state, she was not prepared to
decide whether the city's short-term vacation rental ordinance should be amended
without reviewing a comprehensive analysis of comparable jurisdictions.
Substitute Minute Motion by Council Member Schumacher, seconded by Mayor Pro Tern
Bhat-Patel, to pursue amending the short-term vacation rental ordinance. Motion failed,
2/2 (Hall, Blackburn -No).
ACTION: Council received the report.
16. VILLAGE AND BARRIO MASTER PLAN AMENDMENT PACKAGE-Receive a presentation and
direct staff on the scope and timing of the amendment package items described in the
Aug. 20, 2019, City Council action on the Village and Barrio Master Plan and, based on that
discussion, direct staff to return to City Council for confirmation of the project scope, work
plan and timeline, and resource strategy, as necessary. (Staff contact: Scott Donnell,
Community & Economic Development)
City Manager's Recommendation: Receive the report and provide direction to staff.
Mayor Hall stepped down from the dais at 8:03 p.m. due to a potential conflict of interest.
City Planner Don Neu and Senior Planner Scott Donnell presented the report and reviewed
a PowerPoint presentation (on file in the Office of the City Clerk).
Simon Angel spoke in regard to decision-making authority and would like Council to oppose
the amendment and direct staff to apply the same process review standards to all districts
within the project. He also suggested to postpone the item until a District 1 representative
has been elected.
April 14, 2020 Item #9 Page 55 of 59
Dec. 10, 2019 Carlsbad City Council Regular Meeting Page 9
TJ Childs spoke in regard to a dual zone clause, the objective standards in version 2 of the
Village and Barrio Master Plan from 2016 and asked if past information could be used. She
also requested the city not rely on public-private partnerships for projects like parking.
Gary Nessim spoke in regard to hosting a staff workshop on public-private partnerships
and how increasing the housing in-lieu fee would help solve the housing crisis.
Robert Wilkinson referred to items he submitted and the city's street tree program.
In response to an inquiry from Council Member Schumacher, Senior Planner Scott Donnell
explained a brief timeline of when various housing law amendments and fees went into
effect.
Council Member Schumacher expressed her concern about objective and subjective
standards incorporated in upcoming state housing legislative changes.
In response to an inquiry from Council Member Blackburn, City Planner Don Neu explained
the previous processes of the Village Design Review Board and possible challenges if a
group like this were to be reestablished. He also clarified the history of housing in-lieu fees
for different sized developments, gave examples of private-public partnerships and
business-to-business agreements in relation to parking, and explained that while there is
the possibility to make changes, it is timely and difficult due to the regulatory documents
and process of approval from various commissions.
A Minute Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member
Schumacher, to move approval of allowing decision-making authority for the entire Master
Plan area to the City Council. Motion carried, 3/0/1 (Hall -Absent).
Council Member Schumacher requested three amendments be implemented, (including
decision making authority for the Master Plan); 1. Incorporating conditional use permits
such as the Farmer's Market and hospitality zone for the Hosp area and to accomplish
these objectives within three months to be sent to the California Coastal Commission. 2.
Ad hoc design review board and initiation of a comprehensive traffic study with multi
modal views including vehicular impacts to include Carlsbad Boulevard during certain
months listed and include traffic data from Oceanside and Encinitas. To be completed
within one year with target completion to be used as a baseline for development.
Council member Schumacher also requested the City Manager keep this a broadly
actionable item on the Dec. 17, 2019 agenda. 3. A review of the parking management
plan (to include commission review), parking in lieu fee, parking structure feasibility
study at the city owned property of Oak and State street, initiation of a Nexus study for
housing in lieu fees and to move forward with the staff recommendation of the Planning
Commissions public hearing on further items to be addressed.
April 14, 2020 Item #9 Page 56 of 59
Dec. 10, 2019 Carlsbad City Council Regular Meeting Page 10
In response to an inquiry by Council Member Blackburn, City Planner Don Neu explained
several of the amendment items may not be feasible to implement within the timeframes
cited due to state laws and guidelines as well as other challenges.
In response to an inquiry by Council Member Schumacher, City Manager Scott Chadwick
shared the potential timeline and constraints to complete the tasks in a timely manner,
including securing contractors and finalizing other pending projects.
In response to an inquiry by Council Member Schumacher, City Planner Don Neu explained
the timeline and various projects planned to utilize SB 2 funds, including hiring consultants,
setting objective standards, and revising both the municipal code and the Village and
Barrio Master Plan.
Council Member Schumacher explained her support of establishing objective standards to
ensure future developments include residents' input. She also stated that she would prefer
a design review board that is ad-hoc in nature, assisted by consultants, using previous
drafts of architectural designs to create a tool box, and receive residents' final stamp of
approval.
In response to an inquiry by Council Member Blackburn, City Planner Don Neu explained
staff can request that consultants modify their scope of work to address Council's
direction.
Minute Motion by Council Member Schumacher, seconded by Mayor Pro Tern Bhat-Patel,
to add to a future agenda, the formation of an ad-hoc design review board, whose
composition and appointment process will be decided at that meeting, to work with a
consultant on the objective design standards and the design palette for the Village and
Barrio Master Plan area. Motion carried, 2/1/1 (Blackburn -No, Hall -Absent).
Substitute Minute Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member
Blackburn, to place on a future Planning Commission agenda Workplan Item Nos. 2-4 and
6-8 to allow the public to have the opportunity to provide feedback and subsequently
return to City Council to discuss how to provide direction. Motion carried, 3/0/1 (Hall -
Absent).
Mayor Pro Tem Bhat-Patel declared a recess at 9:22 p.m.
Mayor Pro Tem Bhat-Patel reconvened the meeting at 9:28 p.m.
In response to an inquiry by Council Member Schumacher, City Planner Don Neu explained
the Master Plan amendment process in relation to the Planning Commission and City
Council.
Mayor Hall returned to the dais at 9:30 p.m.
April 14, 2020 Item #9 Page 57 of 59
April 14, 2020 Item #9 Page 58 of 59
April 14, 2020 Item #9 Page 59 of 59
Housing Trust Fund
April 14, 2020
David de Cordova, Housing Services Manager
Purpose & Recommended Action
•City Council minute motion to discuss Housing Trust
Fund use
•Receive report and provide direction as appropriate
2
Background
•Inclusionary Housing Ordinance established in 1993
•Requires new residential development to provide
affordable housing
•Option to pay in-lieu fees or purchase housing credits
•Housing Trust Fund implements inclusionary housing
program
•2,300 affordable housing units built
3
Revenues
4
Other
$.2M
1%
Ad min Fees
$1.3M
3%
Fed & State Grants
$3.lM
8%
HOUSING TRUST FUND REVENUES
FY 1999/00-FY 2018/19
Transfers
$3.SM
Key Revenue Sources
4
HOUSING TRUST FUND REVENUES
FY 1999/00-FY 2018/19
Interest from Loans
$11.8M
Other
$.2M
1%
Ad min Fees
$1.3M
3%
30%
Fed & State Grants
$3.1M
8% Transfers
$3.SM
Revenues
4
5.00
4.50
4.00
3.50
Vl 3.00
C: 2.50 .Q
2 2.00
1.50
1.00
0.50
HOUSING TRUST FUND
Annual Revenues
FY 1999/00-FY 2018/19
-Revenue
Housing Trust Fund Uses
•Affordable housing development
–1,466 affordable units directly assisted
•Low income and homeless services support such as:
–Carlsbad Service Center, regional winter shelter program, Bridge-to-Housing network, homeless outreach and prevention
•Administration
–Staffing, legal, professional support and other operating costs
6
Housing Trust Fund Balance
6
Estimated Fund Balance
Current balance (Jan. 2020)$17.8 million
Committed assistance ($4-4.5 million)*
Requested assistance ($8.5 million)
Potential near-term balance $5 million
*Windsor Pointe committed assistance is $8.3 million total, approximately
$4 million of which will come from CDBG and former Redevelopment
Agency housing funds.
Summary
•Housing trust fund is effective
•Supports an array of affordable housing efforts
•Attracts other funding
•Contributes to overall success of inclusionary
housing program -> 2,300 affordable homes
6
Next Steps
•May 5, 2020 -Council consider initiating
inclusionary fee study
•Additional actions subject to City Council direction
6
Recommendation
Receive report and provide direction as appropriate
7
Housing Trust Fund
April 14, 2020
David de Cordova, Housing Services Manager