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Home My WebLink About1995-11-09; Housing Commission; MinutesMinutes of: HOUSING COMMISSION Time of Meeting: 6:OO P.M. Date of Meeting: Place of Meeting: November 9, 1995 CITY COUNCIL CHAMBERS CALL TO ORDER: Chairman Avis, called the Regular Meeting to order at 6:04 p.m. PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Commissioner Calverley. ROLL CALL: Present: Chairman Avis, Commissioners Calverley, Escobedo, Rose, Sato, Schlehuber, and Wellman Absent: Commissioners Noble and Scarpelli Staff Present: Evan Becker, Housing and Redevelopment Director Reggie Harrison, Housing Program Manager Debbie Fountain, Senior Management Analyst COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no requests to address the Commission. APPROVAL OF MINUTES: Commissioner Calverley would like to see more documentation in the Minutes. She inquired if it would be possible for Commissioners to review the Draft Minutes before the final is prepared. Mr. Becker explained that the Minutes are summary Minutes and not verbatim Minutes. However, Commissioners are welcome to make changes and additions to the Minutes when they are presented for approval. ACTION: Motion by Commissioner Wellman, and duly seconded, to continue approval of the Minutes of the Regular Meeting of October 12, 1995, to the December meeting. Avis, Calverley, Escobedo, Rose, Sato, Schlehuber, Wellman VOTE: 7-0 AYES: NOES: None ABSTAIN: None ACTION: Motion by Commissioner Wellman, and duly seconded, to place Minute procedures as an Agenda item on the December agenda; staff will provide Commissioners with copies of current procedures for taking Minutes in the December meeting packets. Avis, Calverley, Escobedo, Rose, Sato, Schlehuber, Wellman VOTE: 7-0 AYES: NOES: None ABSTAIN: None HOUSING COMMISSION November 9, 1995 PAGE 2 NEW BUSINESS: 1) COSTA DO SOL AFFORDABLE HOUSING PROJECT - CT 92-01/PUD 92-91/SDP 93-04/HDP 92-1 0 - Request for recommendation of approval for Costa Do Sol to purchase affordable housing credits in the Villa Loma Project, thereby satisfying an affordable housing obligation. Chairman Avis announced that he has had some involvement in the Villa Loma project but there is no conflict of interest on this project since whatever happens at tonight's meeting would have no effect on his Kaiza Poinsettia project. Evan Becker, Housing and Redevelopment Director, reviewed the background of the request and stated that the applicant, Greystone Homes, Inc., has acquired the Costa Do Sol project formerly owned by Aharon Abata, which has approved permits to construct 112 single-family homes and 40 condominium units. This project must provide a minimum of 23 affordable housing units pursuant to the City's lnclusionary Housing Ordinance. The applicant is requesting that they be permitted to purchase affordable housing credits in the Villa Loma project in lieu of the on-site construction of affordable units. The lnclusionary Housing Ordinance permits off-site satisfaction of an inclusionary requirement through participation in a Combined lnclusionary Housing 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. Mr. Becker reviewed in detail the assessment worksheet and stated that staff, by way of a Review Committee, was supporting the developer's proposal to purchase credits in the Villa Loma project. Mr. Becker indicated that, while the infeasibility of the on-site proposal was difficult to validate, there were issues in terms of project size, expected subsidies required, and competition for scarce funds from subsidy sources, which weighed heavily on the decision. Considering the availability of existing excess units in a quality project and the City's goal of recovering their investment in Villa Loma, Mr. Becker indicated that staffs judgement was to support the off-site credit purchase. Chairman Avis opened the public testimony and issued the invitation to speak. Mike Howes, Hofman Planning, 2386 Faraday Avenue, Carlsbad, representing the applicant, addressed the Commission and stated that he feels the request is in conformance with Policy Nos. 57 & 58 and that it is not economically feasible to construct affordable housing units on-site. He concurs with the staff recommendation. Don MacDougall, Greystone Homes, Inc., 495 E. Rincon, Suite 115, Corona, California, addressed the Commission and stated that when Greystone purchased the property, they considered doing on-site affordable housing but always assumed that they would be able to purchase offsite credits. The Commissioners questioned Mr. MacDougall and Mr. Howes about the following: - Reasons for needing to provide affordable housing off-site. - Target population and income levels. * Bedroom requirements. - Marketability of condominiums vs. single family units. Mr. MacDougall stated that if they were to look at the project today knowing they would be required to provide the affordable housing on-site, they would pass on the purchase. It would be difficult for 100 units in this project to absorb the $1 million needed to provide the on-site affordable housing. It is also a heavy burden on the other residents to require the affordable housing to utilize common amenities. HOUSING COMMISSION November 9,1995 PAGE 3 There being no other persons desiring to address the Commission on this topic, Chairman Avis declared the public testimony closed and opened the item for discussion among the Commission members. The Commissioners questioned staff about the applicability of Policy Nos. 57 and 58. Commissioners expressed concern that all of the affordable housing would be located in a few large projects rather than be disbursed throughout the City. Several Commissioners did not agree that this project meets the criteria to purchase off-site credits. If all developers are allowed to buy into large affordable housing projects like Villa Loma and Laurel Tree, it will set a precedent and that will be the only affordable housing built. Chairman Avis stated that it is necessary for affordable housing to be marketable and that the proposed on-site project is questionable. La Costa is a good example. There are many small, low-priced condominiums available in La Costa but they are not marketable because the need is for larger units. He feels that buying into Villa Loma provides the best product for the money. Chairman Avis made a motion to adopt Resolution No. 95-01 1 recommending approval for Greystone Homes to purchase 23 Affordable Housing Credits in the Villa Loma project but the motion died for lack of a second. ACTION: Motion was made by Commissioner Wellman, and duly seconded, to deny the purchase of affordable housing credits in the Villa Loma affordable housing project in order to satisfy the affordable housing obligation of the Costa Do Sol project, and to request the developer to make another plan for on-site affordable housing if the already approved on-site plan is not feasible. Calverley, Escobedo, Rose, Sato, Schlehuber, Wellman VOTE: 6-1 AYES: NOES: Avis ABSTAIN: None The Housing Commission recessed at 7:45 p.m. and reconvened at 7:47 p.m. 2) ELECTION OF 1996 HOUSING COMMISSION CHAIRPERSON AND VICE-CHAIRPERSON Chairperson Avis called for nominations for 1996 Chairperson of the Housing Commission. Vice-Chairperson Calverley was nominated for the position of Chairperson. ACTION: Motion was made by Chairperson Avis, and duly seconded, to elect Vice-Chairperson Calverley as 1996 Chairperson of the Housing Commission. Avis, Calverley, Escobedo, Rose, Sato, Schlehuber, Wellman VOTE: 7-0 AYES: NOES: None ABSTAIN: None Chairperson Avis called for nominations for the office of Vice-Chairperson. Commissioner Schlehuber was nominated for the position of Chairperson. ACTION: Motion was made by Commissioner Sato, and duly seconded, to elect Commissioner Schlehuber as 1996 Vice-Chairperson of the Housing Commission. Avis, Calverley, Escobedo, Rose, Sato, Schlehuber, Wellman VOTE: 7-0 AYES: NOES: None ABSTAIN: None HOUSING COMMISSION November 9,1995 PAGE 4 ANNOUNCEMENTS: Commissioner Sat0 announced the skating party fundraiser for the Family Self-Suff iciency Program being held November 27, 1995 from 7:OO - 9:30 p.m. at Ups & Downs in Escondido. Tickets are $5. Commissioner Wellman would like an update on the Lifeline Self-sufficiency Program at a meeting in the near future. ADJOURNMENT: By proper motion, the Regular meeting of November 9, 1995 was adjourned at 754 p.m. Respectfully submitted, EVANBECKER Housing and Redevelopment Director BETTY BUCKNER Minutes Clerk