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HomeMy WebLinkAbout1992-01-15; City Council; Minutes0 a Meeting of: CITY COUNCIL/PLANNING COMMISSION/DESIGN REVIEW BOARD Time of Meeting: 6:OO p.m. Place of Meeting: Safety Center, 2560 Orion Way, Carlsbad, CA (JOINT SPECIAL MEETING) . Date of Meeting: January 15, 1992 CALL TO ORDER: Mayor Lewis called the meeting to order at 6:13 p.m. ROLL CALL was taken as follows: Citv Council Present - Council Members Lewis, Kulchin, Larson, Stanton and Nygaard Absent - None Planninq Commission Present - Commissioners Erwin, Hall, Holmes, Noble, Savary, Schlehuber, and Schramm Absent - None Desiqn Review Board Present - Members Noble, Rowlett, Erwin, and Savary (Rowlett arrived after the meeting had begun) Absent - Member Gonzales 57 JOINT WORKSHOP ON HOUSING ELEMENT IMPLEMENTATION Acting City Attorney Ron Ball reviewed the meeting procedures and explained to the audience that policy decisions regarding this matter have already been made, that this program is only an educational presentation by staff, and that no action will be taken at this meeting. Mayor Lewis welcomed everyone to the joint meeting, stating that the City has been mandated by the State to provide affordable housing, and that we are all tasked with implementing the housing policies. 1. PURPOSE OF THE WORKSHOP. Community Development Director Marty Orenyak briefly explained the purpose of the workshop and gave an overview of the program. Mr. Orenyak then introduced Mr. Rick Alexander, a consultant with Consultants Collaborative, who will act as facilitator for the discussion portion of the workshop. /I; 0 a January 15, 1992. Page 2 2. REVIEW OF WORK PLAN FOR IMPLEMENTATION OF HOUSING ELEMENT. Planning Director Michael Holzmiller presented a review of the elements of the Work Plan for implementation of the Housing Element. Using transparencies, Mr. Hol zmil ler showed the seven work plan categories and referenced the 48 specific tasks which need to be accomplished. He briefly described existing and new programs. Mr. Holzmiller stated that a rental survey needs to be done which will provide information on what rents actually are in the city, as well as information regarding the vacancy rates. Mr. Holzmiller stated that though this presentation will show the entire picture, it is staff’s intent to bring individual tasks forward separately as they are completed, for action by the Planning Commission and City Council. 3. USE OF REDEVELOPMENT 20% SET-ASIDE FUNDS. Housing and Redevelopment Director Kathy Graham briefly explained the use of Redevelopment 20% Set Aside Funds. Using transparencies, she showed the very low, low, and moderate income limits for San Diego County, and stated that the county median is $41,000 (based on a family of four). She a1 so referenced two letters which had been received concerning this matter, one from Catherine Rodman of Legal Aid, and one from Renata Mulry. LEGAL REQUIREMENT Glenn Wasserman, an attorney with the firm of Kane, Balmer and Berkman, spoke regarding the legal requirements for use of Redevelopment 20% Set Aside Funds. He stated that the funds must be used for the purposes in increasing, improving, and preserving the community’s supply of low and moderate income housing, and may be used inside or outside the redevelopment project area, but only within the city 1 imits. Mr. Wasserman also explained that the funds can be spent to: acquire property; buy existing buildings; assist with new development; and provide subsidies for low and moderate income persons. In response to an inquiry, Mr. Wasserman stated that the Set Aside Funds can be used to ensure that there are affordable mobile homes in the City. In response to an inquiry, Kathy Graham responded that the Agency currently has $1.2 million in Set Aside Funds. In response to an inquiry, Mr. Wasserman stated that there are no restrictions regarding the use of manufactured housing to provide 1 ow and moderate income housing. In response to an inquiry, Mr. Wasserman stated that the funds may be used to assist developers in purchasing land for low income housing. 15 0 0 January 15, 1992 Page 3 In response to an inquiry, Mr. Wasserman stated that low and moderate income persons could borrow money to add on to an existing home, and that rehabilitation 1 oans require that a restriction be recorded against the property. In response to an inquiry, Mr. Wasserman explained that though current state regulations require projects assisted with set aside funds to remain available for low and moderate income for 10 years for owner-occupied, and 15 years for rentals, the City may adopt regulations to restrict the property for longer periods of time. He added that the Redevelopment Agency in Los Angel es requires that housing remain low income for not less than 30 years. SPENDING PLAN FOR SET ASIDE FUNDS. Debbie Fountain, Senior Management Analyst, reported on the spending plan for Set Aside Funds and out1 ined the proposed programs for the 5 year spending plan. She expl ained the process for approval of the spending plan which will include review by staff and special legal counsel ; approval by the Housing and Redevelopment Commission; and submission of the plan to the State Department of Housing and Community Development . Council discussed the fact that the Northwest Quadrant is already saturated with low cost housing, and that low cost housing needs to be provided on a city wide basis. 4. THE AFFORDABILITY GAP. Senior P1 anner Chris DeCerbo reported on the affordabil i ty gap and the economics of affordable housing. He explained the economic model that had been devel oped by the ad hoc committee; described the typical model project, the lower income housing allowance for for-sale units, the maximum monthly affordable mortgage payments, and the costs of development variables. He explained that the gap shown is for "for sale" projects and not for rentals. Mr. DeCerbo a1 so noted that the City must provide 1400 dwelling units over the next five years. In response to inquiry, Mr. Orenyak explained how the City can affect up to 30% of the total costs of a project, but added that the costs will have to be borne by both the City and developers in order to meet the State mandate. 5. POSSIBLE INCENTIVES FOR REDUCING THE AFFORDABILITY GAP. INTRODUCTION. Assistant Planning Director Gary Wayne presented the introduction regarding possible incentives for reducing the affordability gap, and outlined incentives the city could provide, such as allowing greater densities or providing subsidies. lq . 0 0 January 15, 1992 Page 4 DENSITY INCREASE. Senior Planner Chris DeCerbo reported on possible density increases. He explained that density increases reduce the total costs of residential development by either eliminating or significantly reducing the land costs per dwelling unit. He a1 so stated that density bonuses are now a State Law requirement, and that staff recommends that specific locations within the City be identified for siting higher residential densities, and that a policy be adopted to require that minimum densities be achieved on all residential projects. MODIFICATION OF DEVELOPMENT STANDARDS. Principal P1 anner Robert Green reported on the modification of development standards, stating that staff would like to review all standards and would like input regarding any standards that should not be changed. FINANCIAL SUBSIDY. Housing and Redevelopment Director Kathy Graham reported on sources of funding for financial subsidies such as: Set Aside Funds; CDBG Block Grant Funds; In- Lieu Fees (if establ ished) ; General Fund Monies; and Other Financing Programs (Community Reinvestment Act participation). Council discussed that fact that it may be necessary to encourage reduction of density in some areas to create more units for the excess dwelling unit bank. Council a1 so discussed the possibility of setting preferences for those who would qualify for the units provided. 6. PUBLIC COMMENT/QUESTIONS ON ITEMS 1-5. At this time, the Mayor requested public input on Agenda Items 1-5. Thelma Hayes addressed the group regarding the need for residential care homes for the mentally ill. Doug Avis, representing Fieldstone, addressed the group and requested that alternative housing types, including granny flats be included. He stated that he was a member of the ad hoc committee and agreed that staff needs flexibility on each project. He also recommended the use of non-profit agencies to assist in the provision of low cost housing, and suggested that the City consider acquiring land as soon as possible due to escalating costs, and consider waiving Mello-Roos Fees. Paul Klukas of Aviara addressed the group and concurred with Mr. Avis’ comments. He stated that he had been a member of the ad hoc comrni ttee as well, and requested that expedited processing of affordable housing projects be allowed, and that reduced fees be considered. 13 e 0 January 15, 1992 Page 5 RECESS: Mayor Lewis called a recess at 8:lO p.m.. The meeting reconvened at 8:26 p.m., with a1 1 members present (with the exception of Belynn Gonzales). The facilitator, Rick Alexander, discussed the modification of standards with the group to get concurrence regarding which standards should not be changed, and agreement in those areas which staff can pursue. It was agreed that staff should identify criteria and specific locations within the city for siting higher residential densities, and that minimum residential densities be required on all residential projects. It was agreed that the following requirements were not subject to modification: recreational amenities (on site); street width; building spacing and parking. It was agreed that, in addition to the Set Aside Fund, staff would look at the use of: CDBG Block Grant Funds; In Lieu Fees; General Fund Monies, other financing programs including Federal and/or State Grants and Community Reinvestment Act participation; and the use of non-profit agencies. It was agreed that staff would work to prioritize the spending plan for the 20% Set Aside Funds, including the acquisition of rental housing units, the rehabilitation of rental housing units, new construction of units for very low, low and moderate i.ncome. It was agreed that staff would also look into the establishment of a preference program, the use of city-owned land on which to locate projects, and the . possi bi 1 i ty of a1 1 owing second uni ts/granny fl ats . 7. DENSITY INCREASES AND THE GROWTH MANAGEMENT PLAN. P1 anning Director Michael Holzmill er continued the program by reporting on density bonuses (which are required by State Law) and the Growth Management Plan, including the excess dwelling unit bank. He stated there are excess units currently available, but that any use of excess dwell ing units must comply with the Growth Management Plan, and that a formal policy for distribution within quadrants will be prepared. 8. UPDATE ON INCLUSIONARY HOUSING PROGRAM. Principal Planner Dennis Turner continued the presentation with an update on the Incl usionary Housing Program. He out1 ined Housing Element pol icies and programs and principles to be included in implementation. He stated that in new residential developments a minimum 15% of the units should be low income affordable, a minimum 5% of the units in master/specific plans must be moderate *income, first time buyers, and that a minimum 10% of required units must be 3 bedroom. la 0 0 January 15, 1992 Page 6 Regarding tenure of affordability, Mr. Turner stated that a 30 year tenure is required if density bonus and financial subsidies are given. He a1 so explained how the "base" is determined, and stated staff's recommendation that small (non master plan) projects be exempt as qualified subdivisions and required to pay the In-Lieu Fee. Mr. Turner reported on issues to be resolved such as whether, and under what circumstances, to allow In-Lieu Fees. He stated that In-Lieu fees must be turned into shelter, and that accepting the fees results in a greater obligation for the City, over and above those contained in the Housing Element. He stated that the City will have to establish an In-Lieu trust fund, and that 1 and can be accepted as we1 1 instead of fees. Mr. Turner stated staff recommends that the In-Lieu Fees be applied to approved projects without building permits as well as projects with applications completed prior to October 22, 1991. Mr. Turner explained the issues of whether interim fees should be set, as we1 1 as whether a Non-Residential Impact Fee should be established. Council discussion regarding the imposition of a Non-Residential Impact Fee included concern about the state of the economy, and the effect the fee would have on industrial and commercial development in the city. It was also noted that the fees would not be appl icable to a remodel, only to new construction. ACCEPTABILITY OF 100% LOWER INCOME HOUSING PROJECTS Housing and Redevelopment Director Kathy Graham continued the program and outlined the pros and cons of 100% low income housing projects. She stated that if long term public financing is involved, the matter must be put to a vote. She also stated that it may be easier 'for master plan and qualified subdivision developers to meeting inclusionary housing requirements. It was agreed that staff will prepare a draft In-Lieu Fee to be returned for consideration, and that approved projects without building .permits will be included, as well as projects with applications completed prior to October 22, 1991. Small projects (6 units or less) will be exempted from the inclusionary program (not from the fees), and that staff will prepare a study on interim fees. It was agreed that flexibility should be maintained in determining the maximum total number of low income units to be allowed in any one housing project, and that 100% low income housing projects would be considered. // e rn January 15, 1992 Page 7 9. PUBLIC COMMENT/OUESTIONS ON AGENDA ITEMS 7-8. At this time the Mayor requested public input on Agenda Items 7 and 8. Joe Vigil, of Carlsbad, addressed the group and expressed concern that staff would be given too much authority in processing projects, and suggested that at 1 east one member of the Counci 1, as an elected offici a1 , should be aware of a1 1 projects in process at any given time. Renata Mulry, Director of Research, Bexen Press, addressed the group regarding the abundance of.vacant office buildings throughout the City and fhe possibility of converting the buildings for low income housing. Tony Griffin of Marshall Homes addressed the group and stated that the in-lieu fee is just another form of taxation that will be passed on to new buyers to sol ve exi sting soci a1 probl ems. Christopher Niels, an attorney for Aviara, addressed the group and indicated their concern with the proposed In-Lieu Fee as it relates to previously approved subdivisions, and stated that it is unfair to retroactively apply inclusionary housing in already approved projects. He referenced Government Code Section 65961 which prohibits a city from imposing new conditions at a later date if the conditions could have been put on the map. He stated that Lyon Developers have the same concerns. Doug Avis, representing Fieldstone, addressed the group, requesting that more consideration be given to the creation of the base, and stated that they agree with staff that 100% low income projects in master plan areas will become part of the community, and should be considered. 10. WRAP-UP. Community Development Directory Marty Orenyak stated that staff will defer the preparation of the Non-Residential nexus report. It was determined this report should be deferred. ADJOURNMENT: By proper motion, the Joint Special Meeting of January 15, 1992, was adjourned at 10:04 p.m. Respectfully submitted, Xd& Assistant City C1 erk /'o