HomeMy WebLinkAbout1998-06-11; Housing Commission; ; CT 98-02 - COLINA ROBLE, LLC - APPLICATION TO PURCHASE 4.2 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT•
The Ci:ty o:l' Ca.r1sba.d H:ousin.g & R.ede-Ye1opm.en..-t Depa.r-t::an.en..-t
A REPORT TO T:H:E
:H:OU-SIN'G C01W1VIISSION'
DATE:
SUBJECT:
JUNE 11, 1998
lillta.tt: Cra:la :o. Hu.t.z
M:•n-.-men.c~y.,-c
I;te:n1 No. 1
CT 98-02 -COLINA ROBLE, LLC. -APPLICATION TO PURCHASE 4.2
AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING
PROJECT
I. RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 98-008, recommending that the City Council
APPROVE a request by Colina Roble LLC., to purchase 4.2 Affordable Housing Credits in the Villa
Loma housing project in order to satisfy the affordable housing obligation of the Colina Roble project
under the City's Inclusionary Housing Ordinance.
II. BACKGROUND
Colina Roble LLC., is currently processing an application for tentative map (CT 98-02) to develop 28
single family homes on approximately 33 acres. Due to the environmental and topographical constraints
of the site, approximately 72% of the site will remain as open space. The project consists of one cull-de-
sac street and includes home sites with a minimum parcel size of 10,000 square feet. The development of
28 homes will require the developer to provide 4.2 units of housing affordable to lower income
households as required by the City's Inclusionary Housing Ordinance.
It is the applicant's position that there are significant constraints on the site which would make it difficult
to provide the affordable housing units on-site. Therefore, the applicant is requesting to purchase
Affordable Housing Credits ("credits") in the Villa Loma project in lieu ·of on-site construction. The
City's Inclusionary Housing Ordinance permits off-site satisfaction of an inclusionary requirement through
participation in a Combined Inclusionary Housing Project ("Combined Project") if the City Council
determines that it is in the public interest. Purchase of credits in the Villa Loma project constitutes
participation in a Combined Project. There are 143 credits currently available for purchase.
Policies Regarding Off-Site Projects and Purchase of Affordable Housing Credits
The City Council has adopted two policies which deal with off-site or Combined Projects and the sale of
Affordable Housing Credits. Council Policy 57 was developed to establish the criteria to 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. Council Policy 58 was established to
determine the price of credits and the mechanism to satisfy a developers obligation under the City's
Inclusionary Housing Ordinance.
-CT 98-02 -COLINA ROBLE, LLC.
JUNE 11, 1998
PAGE2
DISCUSSION
•
The Council Policies require staff to evaluate the request for off-site satisfaction of the inclusionruy
housing obligation and the purchase of credits based upon three primacy criteria. The criteria includes: 1)
feasibility of on-site proposal; 2) relative advantages/disadvantages of an off-site proposal; and 3) the
advancement of housing goals and strategies. The following is a summruy of staff's analysis of the criteria
for the project.
Feasibility of On-site Proposal
• The small scale of the developable area, the physical constraints caused by the large slope
areas and the environmental constraints of Encinitas Creek effectively precludes all types of
on-site affordable housing projects. Also, the small scale of the affordable housing project
makes the development economically unfeasible due the significant financial subsidy which
would be required for the project. Further, the small scale of the affordable housing project
makes it unlikely that the project will generate interest from available funding sources.
Relative Advantages/Disadvantages of an Off-site Proposal
• The participation in the off-site project will allow the City to recover the costs
associated with the development of excess affordable housing units.
• The Villa Loma project has locational advantages over the on-site project in terms of direct
access to jobs, public transportation, schools, parks as well as other amenities and services due
to the being located directly on a major thoroughfare.
Advancing Housing Goals and Strategies
• The recovery of the City's investment in the Villa Loma Project will provide for additional
financial resources which are needed to further affordable housing development in the
community.
RECOMMENDATION
Based upon the analysis of the above criteria, the Affordable Housing Policy (staff) Team believes that
adequate justification has been provided by the Developer to make the finding that the off-site satisfaction
of the inclusionary housing requirement is in the public interest. Therefore, the staff team is
recommending that the request to purchase credits be recommended for approval by the Housing
Commission.
EXHIBITS
I. Housing Commission Resolution No. 98-008
2. Applicant Request to Purchase Credits
3. Draft Affordable Housing Agreement
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HOUSING COMMISSION RESOLUTION NO. 98-008
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY
OF CARLSBAD, CALIFORNIA, TO RECOMMEND THAT THE
CITY COUNCIL APPROVE A REQUEST BY COLINA ROBLE
LLC.,TO PURCHASE 4.2 AFFORDABLE HOUSING CREDITS IN
THE VILLA LOMA HOUSING PROJECT IN ORDER TO SATISFY
THE AFFORDABLE HOUSING OBLIGATION OF THE COLINA
ROBLE PROJECT UNDER THE CITY'S INCLUSIONARY
HOUSING ORDINANCE.
APPLICANT: COLINA ROBLE, LLC.
CASE NO: CT 98-02
WHEREAS, Colina Roble LLC., has made application for Tentative Map CT 98-02 within the
City of Carlsbad for the development of a 28 unit residential subdivision;
WHEREAS, the subdivision of land for 28 residential units requires the developer to provide
4.2 units of housing affordable to lower income households as required by Carlsbad Municipal Code
Section 21.85 of the City's Inclusionary Housing Ordinance;
WHEREAS, the Villa Loma housing project 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 obligation;
WHEREAS, Colina Roble LLC., has requested to purchase Affordable Housing Credits as a
means to satisfy their affordable housing obligations as permitted by Carlsbad Municipal Code Section
21.85 of the City's Inclusionary Housing Ordinance and consistent with City Council Policies 57 and 58;
WHEREAS, the request to purchase Affordable Housing Credits has been submitted to the City
of Carlsbad's Housing Commission for review and consideration;
WHEREAS, said Housing Commission did, on th~ 11th day of June, 1998, hold a public
meeting to consider said request for the purchase of Affordable Housing Credits by Colina Roble LLC;
WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all
persons desiring to be heard, said Commission considered all factors relating to the application and
request to purchase Affordable Housing Credits;
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City
of Carlsbad, California, as follows:
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1. The above recitations are true and correct.
2. The project is consistent with the goals and objectives of the City of Carlsbad's Housing
Element and Consolidated Plan, the Inclusionary Housing Ordinance, and the Carlsbad
General Plan.
3. Based upon the analysis contained within the Housing Commission Staff Report, the
Housing Commission finds that the off-site satisfaction of the inclusionary housing
requirement is in the public interest.
4. That based on the information provided within the Housing Commission Staff Report and
testimony presented during the public meeting of the Housing Commission on June 11, 1998
the Commission recommends that the City Council APPROVE a request by Colina Roble
LLC Corporation to purchase 4.2 affordable housing credits in the Villa Loma housing
project in order to satisfy the affordable housing obligation of the Colina Roble project
under the city's inclusionary housing ordinance.
5. That the Housing Commission recommends that the City Manager or his designee be
authorized to execute the Affordable Housing Agreement in substantially the form presented
in Exhibit 3 to the Housing Commission Staff Report and to execute such other documents,
or take other actions as may be necessary or appropriate to assist the developer in acquiring
the Affordable Housing Credits.
General Conditions:
1. Within sixty (60) days of the City Council approval of Developer's request to purchase Affordable
Housing Credits, and prior to receiving Final Map approval, Developer shall execute this Agreement
and purchase 4.2 Housing Credits. Execution of this Agreement by the parties and payment of the
required fee to the City by the Developer shall fully satisfy the Developer's affordable housing
obligation pursuant to Chapter 21.85 of the Carlsbad Municipal Code and the above-referenced
conditions of approval. Upon execution of this Agreement and receipt of the above payment from
developer, City will record an appropriate release of the developer's obligation.
HC RESO. NO. 98-008
PAGE2
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PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission of
the City of Carlsbad, California, held on the 11th day of June, 1998, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
DEBBIE FOUNTAIN
KATHLEEN DUNN-WELLMAN, CHAIRPERSON
CARLSBAD HOUSING COMMISSION
13 HOUSING AND REDEVELOPMENT DIRECTOR
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HC RESO. NO. 98-008
28 PAGE3
OFF-S.ND COMBINED INCLUSIONARY .ING PROJECT
ASSESSMENT WORKSHEET
1. Applicant Name and Address:
COLINA ROBLE, LLC
C/0 David M. Bentley
3573 East Sunrise Drive, #221
Tucson, AZ 85718
2. Off-site or Combined Project Name:
Villa Loma
BACKGROUND
3. Description of Project wm, lnclusionary Housing Obligation:
a 30 lot, 28 unit R-1-10,000 sq. ft. subdivision
28 x 15% = 4.2 units
4. Proposed On-site Project Description (If any):
-None
5. Proposed Off-site Project Description:
None
6. Description of On-site Project Constraints: ·
.-.,,··
J
Colina Roble is a 28 unit subdivision with a minimum lot size of 10,000 sq. ft.
with a 4.2 affordable unit requirement, there is no economy in scale because of
the size. Also, the large lot s·ize and significant public improvement requiremen
will produce a significant pric~ difference between any onsite affordable units
and the proposed single family development.
Attachment "1" to Council Policy Statement No. 57
-~-WORKSHEET
ASSESSMENT CONCLUSION
(Check appropriate box)
DOES NOT SUPPORT SUPPORTS OFF-SrrE
ASSESSMENT CRI1ERIA OFF-SfTE PROPOSAL INCONCLUSIVE PROPOSAL
1. Feasibility of the On-site Proposal.
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:
Yes, Although growth management calculation;, would allow 55 units, because of
onsite constraints, only 28 units can be achieved. 72% of the site is steep slopE ~
sensitive upland habitat or wetlands.
b. Will an affordable housing product be difficult
to inteorate into the proposed market
development because of significant price
and product type disparity?
Brief Narrative:
Yes, the future homes will probably be in excess of 3,000 sq. ft. and be in _the
high $300,000 to $500,000 range. A small apartment project of four units _that
can rent for affordable rents ($450 to $600±)-would not be compatible with the
c1rea.
C. Does the on-site development entity have
the capacity to deliver the proposed
affordable housing on-site?
Brief Narrative:
No, the applicant is a developer and not a builder and is not expirienced .in the
development of affordable housing. Also, the development of four affordable
units does not appear to be a feasible proposal.
2. Relative Advantages/Disadvantaaes of the Off-
site Proposal.
a. Does the off-site option offer greater feasibilitv
and cost effectiveness than the on-site
alternative, particularly regarding potential
local public assistance?
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~r.==========I
ASSESSMENT CRrTERIA
Brief Narrative:
WORKSHEET
ASSESSMENT CONCLUSION
(Check appropriate box)
DOES NOT SUPPORT
OFF-SITE PROPOSAL INCONCLUSIVE
SUPPORTS OFF-STTE
PROPOSAL
Yes, Villa Loma i~ a successful.project. The applicant participation in Villa
Loma would assist the City recover their investment.
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:
Yes, Villa Loma is on El Camino Real and near the job center of Carlsbad.
Affordable housing onsite would not be convieniertt to public services.
c. Does the off-site option offer a development
entity with the caoacity to deliver the proposed
project?
Brief Narrative:
Yes, Villa Loma is an existing successful project.
d. Does the off-site option satisfy multiple
developer obliaations that would be difficult
to satisfy with multiple projects?
Brief Narrative:
Yes, one of the purposes of Villa Loma .was to address this question.
3. Advancing Housina Goals and Strategy
a. Does the off-site proposal advance and/or
support City housing goals and policies
expressed in the Housing Element, CHAS
and lnclusionary Housing Ordinance?
Brief Narrative:
Yes, Villa Loma has a large number of units and a diversity of affordable
housing stock with its 344 units.
SUM/VARY
DOES NOT SUPPORT
OFF-SrTE PROPOSAL
3
INCONCLUSIVE
SUPPORTS OFF-S!T£
PROPOSAL
•
OCEANSIDE
PACIFIC
OCEAN
7a
COLINA ROBLE
CITY OF CARLSBAD
· Ladwig Design Group, Inc.
703 Palomar Airport Road #300
Carlsbad, California 92009
(760) 438-3182
FAX (760) 4~8-0173
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COLtNA ROBLE
CT 98-02 HDP u-o1 SUP 98-01
STANDARDS VARIANCE 98--01 & 98-0Z
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Ladwig Design Group, Inc.
(AMENDED 4/21/98)
JUSTIFICATION FOR A STANDARDS VARIANCE
TO LENGTH OF CUL-DE-SAC
"A" STREET -COLINA ROBLE
Description of"A" Street (modified hillside and standard cul-de-sac street).
Where "A" Street joins Rancho Santa Fe Road, the right-of-way width will be 60 feet (40' curb to
curb) and then transitioned to 50 feet (36' curb to curb) opposite Lots 1 and 2 where it is a single
loaded street with sidewalk on the north side only up to Lots 11/12. At Lots 11/12, "A" Street will
transition from a hillside street to a standard 56-foot (36' curb to curb) cul-de-sac street with full
improvements on both sides. Engineering Standards suggest a cul-de-sac length of 600 feet with
1,200 feet being acceptable under certain conditions. "A" Street as proposed, is 1,650 feet and
approval is requested based on the following:
A. Total number oflots served is 28 or ADT of 280. City Standards allow maximum ADT
of 500.
B. No access is available to the west (City of Encinitas) or to the south (steep slopes and
sensitive habitats) or to the north (Encinitas Creek floodway and sensitive wetlands) along
with the habitat corridor for the proposed Habitat Management Plan (HMP). Only a long
and narrow area of the project site is available for development (28% of the site area).
C. Over 1,000 feet (67%) of the length of"A" Street is single loaded (lots on one side of the
street) starting at Rancho Santa Fe Road.
D. Sprinkler systems in all homes will be required to help the fire response time for the fire
department.
E. All panhandle lots on the revised plan (extended cul-de-sac) have been eliminated.
Based on the above, we feel the standards variance may be granted as further stated below:
A. The site shape and condition are extraordinary and unusual and the surrounding property
necessitates the requested variance.
B. The proposed street drainage system meets or exceeds City requirements.
703 Palomar Airport Road ♦ Suite 300 ♦ Carlsbad, California 92009
(760) 438-3182 FAX (760) 438:.0173
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2 of2
C. The variance will not cause unanticipated traffic at the intersection of "A" Street and
Rancho Santa Fe Road (500 ADT maximum allowed for this type of cul-de-sac versus
280 ADT actual).
D. The variance will not be detrimental to any improvements or conditions in the area -the
only affect is on the proposed project.
E. No affect can be determined on the City's Comprehensive General Plan or other Codes
and Requirements.
NOTE: Revisions to original submittal on 1/21/98 are shown bold.
"''
L-1039.064
4/21/98