HomeMy WebLinkAbout1997-09-11; Housing Commission; MinutesMinutes of: HOUSING COMMISSION
Time of Meeting: 6:OO P.M.
Date of Meeting:
Place of Meeting:
SEPTEMBER 1 1, 1997
CITY COUNCIL CHAMBERS
CALL TO ORDER:
Vice Chairperson Wellman called the Regular Meeting to order at 6: 10 p.m.
PLEDGE OF ALLEGIANCE:
The pledge of allegiance was led by Commissioner Scarpelli.
ROLL CALL:
Present: Vice Chairperson Wellman and Commissioners Calverley, Latas, Rose, Scarpelli, and Walker
Absent: Commissioners Escobedo, Noble, and Schlehuber
Staff Present: Debbie Fountain, Acting Housing and Redevelopment Director
Craig Ruiz, Management Analyst
Leilani Hines, Management Analyst
Bobbi Nunn, Housing Program Manager
APPROVAL OF MINUTES:
ACTION: Motion by Commissioner Scarpelli, and duly seconded, to approve the Minutes of the
Regular Meeting of August 14, 1997, as submitted.
Calverley, Lam, Rose, Scarpelli, Walker, Wellman
VOTE: 6-0-0
AYES:
NOES: None
ABSTAIN: None
COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA:
There were no comments from the audience.
NEW BUSINESS:
1. OCEAN BLUFF - Application to purchase affordable housing credits in the Villa Loma housing project.
Craig Ruiz stated that last month the Commission requested that Staff give a report about the potential build-out of the
southwest quadrant to determine if there were sufficient excess units in the combined projects of Villa Loma and Laurel
Tree to support hture development within the southwest quadrant.
Mr. Ruiz explained the City’s Facility Management Zones, in particular, the 11 zones within the southwest quadrant.
He then thoroughly discussed the Exhibit 3 spreadsheet which each Commissioner received in their packet. Staff found
that there can be a total of 3,813 units built within the southwest quadrant (page 3 of Exhibit 3). Of those projects that
are greater than seven units, there will be 1,148 units that will have an obligation to provide Inclusionary units. Fifteen
percent of the 1,148 units indicates a need to provide 172 Inclusionary units.
Mr. Ruiz stated that there are 159 excess units available to be purchased in the Villa Loma project, and the Laurel Tree
project has 17 units which are going to be available for purchase; making this a total of 176 credits for sale for people
in this quadrant. Based on a worse-case build-out situation, there is only going to be a need for 172 units, leaving a 4-
unit surplus based on Staffs report. One important caveat, Mr. Ruiz said, is that Staff uses the “growth control
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SEPTEMBER 1 1, 1997
PAGE 2
management point,” which typically is the maximum somebody can get. Through practice Staff has found that very
few projects achieve this maximum. In all likelihood then, the 1,148 would be a lower number; therefore, the future
number of units to be produced would be a lower number as well.
Mr. Ruiz added that one of the concerns Mr. Henthorn raised last month was that there are numerous projects with less
than 10 Inclusionary units in this quadrant. Mr. Ruiz stated that there are only six projects that have more than 10
Inclusionary units. Staff is therefore still recommending that the request be approved for the purchase of 16 affordable
housing credits in the Villa Loma project.
Vice Chairperson Wellman asked if there were any questions of Staff.
Commissioner Calverley asked about the Laurel Tree project.
Mr. Ruiz stated that Laurel Tree got tax credit approval for the rental project and the escrow is moving forward.
Commissioner Calverley asked about the amount of money currently in the Housing Fund, in particular the $7 million.
Mr. Ruiz responded that the amount of money available that could be spent today on projects is approximately $1.7
million. Mr. Ruiz added that the $7 million Commissioner Calverley is referring to includes money that has been
encumbered for other projects.
Commissioner Calverley asked for a breakdown of this money.
Mr. Ruiz stated that the Finance Department provides either on a monthly or quarterly basis an accounting of these
funds.
Vice Chairperson Wellman asked about the need for units in the southeast quadrant.
Mr. Ruiz stated that Staff is working on a report on the southeast quadrant for next month. He added that there are two
primary projects, one of which is the Rancho Carrillo project, which will be presented tonight; the other being The
Villages of La Costa. There is a lot of land that will not be developed that will be set aside for the Habitat Management
Program, which is part of The Villages of La Costa. Two smaller projects-the Mariano project and the Bressi Ranch
project--will each have about 50 units each in this quadrant, he said. These four projects and a few small subdivisions
will take up just about all of the developable land.
Vice Chairperson Wellman asked whether the City Staff has independently confmed Mr. Henthorn’s data.
Mr. Ruiz responded affirmatively.
Vice Chairperson Wellman invited the applicant to speak.
Mr. Robert Wineteer, General Manager, Ocean Bluff Partnership, 7825 Fay Avenue, Suite 200, La Jolla, addressed the
Commission and asked the Commission to accept Staffs recommendation for approval to go off-site.
Vice Chairperson Wellman asked if there were any questions of Mr. Wineteer.
Commissioner Calverley asked if Mr. Henthom had checked with some smaller, local non-profits for their assistance in
building these units.
Mr. Wineteer stated that his understanding is that the project is not large enough in scope.
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SEPTEMBER 11, 1997
PAGE 3
Vice Chairperson Wellman asked if the year-old proforma had been updated.
Mr. Wineteer stated that Mr. Henthorn is coordinating the proforma with the architect and engineer.
Ms. Fountain added that she asked Mr. Henthorn about the proforma, and he stated that the numbers he provided
before are still accurate.
Vice Chairperson Wellman responded that up-to-date data would strengthen any future applications.
Vice Chairperson Wellman opened the item for discussion among the Commission members.
Commissioner Scarpelli stated that the Commission tabled this item from last month because of concern about the
situation in the southwest quadrant. Based on a review of what has been presented and approved by the Staff,
Commissioner Scarpelli stated that his concerns have been satisfied.
Commissioner Calverley stated that she would like to verify the numbers on the proforma with Mr. Henthorn. She said
that her major concern is that in purchasing credits in Villa Loma, the City is still not providing affordable units.
Commissioner Calverley stated that she contacted Villa Loma and found out that there are 50 people on the waiting list
for one bedroom units, 40 families on the waiting list for two bedroom units, and 30 families on the waiting list for
three bedroom units; so there are 120 families the City is not providing units for. To continue to throw cash at it, does
not take care of the problem, she said. She suggested to the applicant tabling this item until the Commission can get a
better feeling as to the cost of these units and exactly why the applicant cannot currently build them, and what the other
alternatives are for this project, i.e., apartments, for-sale units, etc.
Vice Chairperson Wellman stated that she shares Commissioner Calverley’s concerns and stated the Commission needs
updated information to determine if the 16-unit apartment complex is not feasible. Vice Chairperson Wellman also
suggested continuing this item until next month and asked how the applicant felt about this.
Mr. Wineteer stated that it would be wise to have a continuance.
Mr. Ruiz asked for clarification of the data that Commissioner Calverley is requesting.
Commissioner Calverley responded that one of the charges of the Commission is to evaluate the financial
considerations of the projects presented to them. She said she would like to see an evaluation of doing the apartment
project and doing for-sale units; and if these do not work, she would like to know why. She added that both types of
projects can be done locally.
Vice Chairperson Wellman added that Staff can phone the Commissioners next week if they need further clarification.
ACTION: Motion by Commissioner Rose, and duly seconded, to CONTINUE to next month
Resolution No. 97-0 10, recommending that the City Council APPROVE a request by the
Ocean Bluff Partnership to purchase 16.24 Affordable Housing Credits in the Villa Loma
housing project in order to satisfy the affordable housing obligation of the Ocean Bluff
development under the City’s Inclusionary Housing Ordinance.
Calverley, Latas, Rose, Scarpelli, Walker, Wellman
VOTE: 6-0-0
AYES:
NOES: None
ABSTAIN: None
HOUSING COMMISSION MINUTES
SEPTEMBER 1 1, 1997
PAGE 4
2. CALAVERA HILLS VILLAGE L-1 - Request for recommendation of approval to the Planning Commission of
the construction of five, for-sale, affordable four bedroom single family detached units and the payment of .25 of
the City’s in-lieu fee in order to satisfy the requirements of the Inclusionary housing ordinance for the
development of 35 residential units in Village L-1 of the Calavera Hills Master Plan.
Craig Ruiz stated that this project was also previously before the Commission. The original project was to allow a
higher density project, which included nine affordable townhomes. In response to the concerns raised by the
surrounding property owners about the density issue, the project has been redesigned.
Mr. Ruiz stated that the project currently being presented provides for 35 single-family homes, five of which will be
for-sale affordable units. The five homes will be similar in style to the market-rate units as far as architecture and
design. The project will consist of four bedroom units with 1,330 square feet of living space and two-car garages of
450 square feet. Mr. Ruiz explained the location of the project and showed how the affordable units are distributed
throughout the overall project.
Mr. Ruiz stated that this project is consistent with the City’s Affordable Housing Policies and Ordinances, in addition
to the Inclusionary Housing Ordinance. This project will be the second for-sale project in the City, and it is meeting an
unmet need in the City. These large four-bedroom units are quite desirable as affordable units according to Mr. Ruiz.
They will be affordable at a minimum of 80 percent of median income.
Vice Chairperson Wellman asked if there were questions of Mr. Ruiz.
Commissioner Calverley asked if there will be restrictions on the developer as to whom they sell to, Le., the family size
occupying the affordable units.
Mr. Ruiz responded that the City will not put any restrictions on the developer.
Vice Chairperson Wellman asked if there are large families on waiting lists who would qualify for four-bedroom for-
sale homes.
Ms. Fountain responded that generally the City is in short supply of large units in the rental market. The City does not
carry any waiting lists for the for-sale market, however. She added that the rental assistance program is for people who
are 50 percent or below the median, so they may not actually be able to qualify for a for-sale product.
Vice Chairperson Wellman asked about extended families purchasing these units.
Mr. Ruiz responded that extended families are okay as long as they qualify on their combined incomes.
Vice Chairperson Wellman invited the applicant to speak.
Mr. Mike Howes, Hofman Planning Associates, 2386 Faraday Avenue, Suite 120, Carlsbad, addressed the Commission
and introduced the property owner, Don Clurman, and the site designer, Lex Williman. He said that he is not aware of
any other four bedroom, affordable ownership units being proposed in this portion of Carlsbad (the northeast quadrant).
He added that this is an excellent location for four bedroom, affordable units because they are in walking distance from
an elementary school, a City park, a future commercial site, and a future junior high school site, with existing and
future public transportation. Mr. Howes stated that at this time it has not been determined if any financial substantial
subsidies will be required for this project.
Vice Chairperson Wellman asked if there were any questions of the applicant.
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SEPTEMBER 1 1, 1997
PAGE 5
Commissioner Scarpelli asked the developer how he is going to make this project work.
Mr. Howes responded that it is not going to be easy--it’s going to be painful. He added that the site has been
previously graded and the number of utilities are already in. The adjacent street, Harwich, is in with full
improvements, and Edgeware has been graded in.
Vice Chairperson Wellman asked about the price of the market-rate and affordable units.
Mr. Howes estimated the range to be between $220,000 to $225,000. He said he is aware of the large difference in
cost between the market-rate units and the affordable units. He added that there is going to be quite a bit of subsidy for
the affordable units with a $35,000 to $40,000 negative cash flow on the affordable units.
Commissioner Scarpelli asked why the developer chose four bedroom over three bedroom units.
Mr. Howes responded that the idea was compatibility with other homes in the project, which are all four bedroom
homes. He added that there is a need for four bedroom homes.
Vice Chairperson Wellman asked if there will be much difference in the quality of the units and whether landscaping
will be included.
Mr. Howes responded that the units will be very similar in architecture and style. The affordable units will be a little
bit smaller, but they will fit right in. Mr. Howes said that the front yards will be landscaped.
Commissioner Rose asked about the amenities.
Mr. Howes responded that there is a common rec facility, half basketball court, and a tot lot in the center of the project
that will be accessible to all members-affordable and non affordable. In addition, there will be ocean views and be
within walking distance to Calavera Park.
Vice Chairperson Wellman opened the item for discussion among the Commission members.
Commissioner Calverley thanked the applicant for the completion of the package, with its elevations and blue lines.
Commissioner Walker applauded the developer for having these units integrated the way they are.
Commissioners Latas and Scarpelli suggested the developer return to the Commission if they are in need of some type
of modest subsidy.
Ms. Fountain added that the prices of the other units are in the moderate income range for the size of units so this
project is actually a good mix of units in both the low and moderate income category, which the City has a need for as
well. The City does not require developers to do anything for the moderate income, but it is nice to see the mix come
in with this type of project, she said.
Vice Chairperson Wellman asked what happens to the affordability of the units when they are sold.
Mr. Howes responded that it is put in the CC&Rs that the unit has to be sold to another low-income household.
Ms. Fountain added that there are two options or ways the developer can market these homes. They can either choose
to continue the affordability by making sure that the next buyer qualifies and the unit is sold at an affordable price. Or,
if the home is sold at a non-affordable price or to a non-qualified person, the City recaptures the subsidy the developer
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SEPTEMBER 11,1997
PAGE 6
put into the project so the City can reinvest the money in another project on a first-time home-buyer product.
Ms. Fountain said that there will be restrictions on the property so that if the home is sold, the new buyer will know
what the requirements are. If the property is sold, the City will be notified. Ms. Fountain added that 55 years is the
term of affordability.
ACTION: Motion by Commissioner Scarpelli, and duly seconded, to ADOPT Resolution No. 97-0 1 1,
recommending APPROVAL to the Planning Commission of the construction of five, for
sale, affordable four bedroom single family detached units and the payment of .25 of the
City’s In-Lieu fee in order to satisfy the requirements of the Inclusionary Housing Ordinance
for the development of 35 residential units in Village L-1 of the Calavera Hills Master Plan.
Calverley, Latas, Rose, Scarpelli, Walker, Wellman
VOTE: 6-0-0
AYES:
NOES: None
ABSTAIN: None
3. DEVELOPER PRESENTATION ON THE PROPOSED RANCHO CARRILLO AFFORDABLE HOUSING
PROJECT
Craig Ruiz informed the Commissioners that this item is an informational item only and there will be no request for
action by the Commission; however, this project is going to come before the Commission at a later date. This item is to
introduce the Commissioners to the development team. The developer of Rancho Carrillo, the architect for the
affordable project, and the non-profit developer are all present and will make a brief presentation, he said.
Mr. Ruiz gave the background of the project describing it as an approved Master Plan for over 1,800 units. This
project was previously before the Commission with affordable units in Villages E and F. Currently the affordable
project will be moving into Village B to be built in phases including multi-family units with a mixture of both
affordable units and potentially some market-rate units as well.
Vice Chairperson Wellman invited the development team to speak.
Mr. Chris Chambers, Continental Homes, 12636 High Bluff Drive, San Diego, addressed the Commission and said it
has been over four years since he was last before the Commission in connection with the approval of the Master Plan of
Rancho Carrillo. Mr. Chambers was also before the Commission for the approval of the first tentative maps in Rancho
Carrillo.
Mr. Chambers stated that this is the largest grading project that has been undertaken in Carlsbad since Aviara. He said
they will be moving about 9 million cubic yards of earth all within the boundaries of Rancho Carrillo, being about 80
percent done with the grading and all the infrastructure work.
When Rancho Carrillo first came before the Commission, it was comprised of four ownerships. Continental Homes
owned the south and eastern corners. UDC, Scripps, and an individual by the name of Don Woodward, later taken over
by Merrill Lynch, owned other parts of the project. When it came time to develop, Continental Homes purchased the
other parcels of the project. Having a single ownership gave Continental Homes an opportunity to re-evaluate the
planning efforts of Rancho Carrillo. Even before this time, the contributions of Rancho Carrillo to the City of Carlsbad
continued to escalate. Today the project has almost 300 acres of open space out of the original acreage of 650. The
land on-site approaches 40 percent of open space; and there is another 20 acres off-site that has been acquired.
Mr. Chambers said they have contributed Village G, which was at one time designated and allowed for 101 detached
dwelling units. Today it is 39 dwelling units. There is a plant species (wild onion plant) which will have the largest
population preserved in the County of San Diego, and there are extensive negotiations to preserve the eastern edge and
the middle part of the project as wildlife corridors of all manner of animals; but primarily on the eastern edge to
HOUSING COMMISSION MINUTES
SEPTEMBER 11, 1997
PAGE 7
connect the Gnat Catcher corridors which goes down to Lake Hodges and up to Lake Calaveras. Mr. Chambers said
they have contributed an additional 20 acres to enhance the park area, from its original 10-acre size. In addition, they
will be providing public access into Rancho Carrillo.
Mr. Chambers stated that currently 15 percent of the land that would otherwise be developable with residences, has to
be contributed to open space. They are providing approximately 25 percent of performance open space, which well
exceeds City standards.
The importance of the park as a culture resource for the City of Carlsbad becomes enhanced when looking at the
location of the school. The San Marcos Unified School District is requiring the developer to mitigate for school impact
fees because of the way state laws are set up right now of almost $8,000 for every single unit that is constructed in
Rancho Carrillo. The immediate result will be construction of an elementary school. Mr. Chambers thinks this will be
a great place for kids to go to school. They have manufactured a trail system which in many cases will allow kids to
walk to school via sidewalks and a trail.
Mr. Chambers stated that probably the largest contribution in terms of real dollars and difficulty in engineering and
financing is Melrose Drive. It has an 134-foot right of way which has required extensive grading and has created some
challenging engineering costing well over $20 million. Mr. Chambers added that all of the infrastructure and all of the
requirements of the City require a tremendous amount of subsidy that is being paid for ultimately by the potential
homeowners.
Mr. Chambers said they are currently in the final throes of the infrastructure and would like to have the community
open in one year’s time. He added that one of the last things that has to be accomplished is the housing agreement and
site development plan to get the affordable housing component for the project started.
After consolidating ownership, Mr. Chambers said they are now able to provide a full range of housing opportunities.
This project will provide everything from rental to low-income families all the way up to and in very close proximity to
lots with an average of over 10,000 square feet, some of which are as large as 17,000 square feet. The mix is
affordable housing at the one end, and housing available for higher incomes at the other end, and a full range of
housing opportunities in between. Mr. Chambers said that Village B is what is being proposed as the affordable
housing site because it is closer to public access and it is a flatter parcel, which will allow for better densities. With a
single ownership, the proposed location of the affordable housing is a more efficient use of the land. Mr. Chambers
said that the Master Plan has recently been amended. Staff and the Planning Department support the density shifts;
although there is no increase in density, there is consolidation of existing projects in the northern corner of the project.
Mr. Chambers stated that Parcel B is capable of accepting up to 240 units. The first project the developer is proposing
is a 100-unit for-rent project, and it almost cuts the parcel in an east-west access. The parcel is closest to Palomar
Airport Road and butts up to Melrose. The second parcel could be a similar type of project, depending on the market
needs at the time. There may be some flexibility to look at other types of uses, he said. On the eastern edge of Parcel
B there is a 40-unit remainder parcel that could be a for-sale project. Mr. Chamber hopes to “get the ball rolling” with
the 100-unit rental project. Mr. Chambers said that the developer will be proposing 40 second dwelling units as part of
their satisfaction of the Inclusionary Housing project. Of its total requirement of 240 affordable units, 40 units will be
interspersed as second dwelling units, and the other 200 will be located within Village B.
Mr. Chambers thinks this is a plan that makes a lot of sense given the entire Rancho Carrillo Master Plan and given the
necessity and the requirement for addressing each and every component of the housing market. Mr. Chambers said
they have had extensive interviews over the course of the last year with developers for this project. They spoke with
The Bridge Group, Housing Opportunity Inc. (a non-profit who has been in San Diego for 15 to 16 years), Baron
Galasso, Dan Galavado who built one of the early high-density projects in Rancho del Rey, and MACC. Mr. Chambers
said they like the aspect of working locally and of having a good, well-implemented design that fits the particular
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SEPTEMBER 1 1, 1997
PAGE 8
location of the affordable housing project, which is a very important criteria. A lot of times people lose site of where
they are building these projects, and they almost have a shelf project-they look like a standard project you see almost
anywhere. Mr. Chambers is impressed with Baron Galasso because they seem to adapt their projects to the particular
location. They are very familiar with this type of project and are appreciative and responsive to timing concerns.
Mr. Chambers said that the first phase of the project with over 500 is in Planning right now. He said they hope to open
with seven villages (B, C, D, H, Q, J, and 0): The affordable housing project in B; C will be duplexes with
approximate 4,000 square foot lots; D will be 4,000 square foot lots; H will be the large 10,000 square foot lots; J a
standard subdivision with 7,500 square foot lots); the bottom part of Q will be standard 7,500 square foot lots; and
5,000 square foot lots in 0. There will almost be a neighborhood for every single housing type available in the market
from production builders within the first phase. On opening there should be something for everybody who wants to
live in Rancho Carrillo. Mr. Chambers said they especially like the affordable housing because it should serve as a
seed for the community. As the children grow up in the earning curve, in the learning curve, their incomes will go up,
their households will get better; and these are the people that will hopefully stay in Rancho Carrillo. Mr. Chambers
wants to engender a sense of community and the layout of Rancho Carrillo provides a template to do so.
Mr. Chambers said that it is extremely important to “keep our eye on the clock” because builders are very concerned
about being able to open in the summer of ‘98. That is the best marketing window, he said. He would like to have a
grand opening where everybody can come out and see the neighborhoods that are available to them. The processing of
the Site Development Plan for the affordable housing project and the Housing Agreement itself, will allow this to take
place.
Mr. Chambers said he is pleased with the association with Baron Galasso, who has lined up with Housing
Opportunities Inc., which is a non-profit who has been around in San Diego; and Carlos Rodriguez, who is the architect
for Laurel Tree, and who will be the architect on this project. Mr. Chambers thinks having local groups helps, i.e.,
Carlos knows of the needs of the City of Carlsbad.
Vice Chairperson Wellman asked if there were any questions of Mr. Chambers.
Commissioner Rose asked if there was going to be a shopping mall.
Mr. Chambers responded that there will be no commercial at all in the entire community.
Commissioner Scarpelli asked if Baron Galasso is a non profit, and whether Mr. Chambers had spoken with
Community Housing in North County.
Mr. Chambers responded that Baron Galasso is a for-profit developer of affordable housing. He said they did not
contact Community Housing in North County. They got a specific proposal from Bridge; and MACC has seen this
project for five years.
Commissioner Scarpelli mentioned to Mr. Chambers that there is some question as to where the Commission stands on
second dwelling units being available for affordable housing units. He suggested Mr. Chambers discuss this with Staff.
Mr. Chambers responded that they thought it would be appropriate to sprinkle some second dwelling units throughout
the community. He added that if they stay within the density range, they can satisfy their entire obligation within
Village B. They look to feedback from the Commission as to what the Commission wants to see in the future phases.
There is an opportunity to do something other than repeat or do a mirror image of the first phase, he said.
Commissioner Calverley thanked Mr. Chambers for coming before the Commission at this stage in the project because
it helps the Commissioners get on-track and start thinking about the project. She stated that when La Costa previously
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SEPTEMBER 1 1, 1997
PAGE 9
came before the Commission and requested that they be allowed to put $3 million into a fund in order to provide for
silent seconds, she was for it because she believed Mr. Chambers would be doing a large for-sale project. She asked
Mr. Chambers to address the other for-sale opportunities that may be in the community that the $3 million could go
towards. Commissioner Calverley has concerns about the $3 million since Mr. Chambers has pulled the for-sale
project. Ending up with 9 units here and 24 units there does not take $3 million in just principle alone, she added.
Vice Chairperson Wellman suggested developing some for-sale units and scatter them around instead of the second
dwelling units.
Mr. Chambers responded that they will take a look at what is available and report back to the extent they can answer
the question.
Commissioner Latas asked about the other parcels.
Mr. Chambers responded that they designate the high-density parcels within the community. L has a zoning that would
allow it to provide up to nearly 100 units. N is in the range of 75 and almost butts up against some townhomes in
La Costa off of Alga, so it will probably be a “sister” product of what is already there. Mr. Chambers added that it is
very, very difficult to find anybody to build attached for-sale units in San Diego County. When they made their
proposal on Village F, the whole effect of the construction litigation in San Diego County was really just beginning to
be felt. Today, Mr. Chambers said with certainty, that over 95 percent of all attached projects built in San Diego in the
last 10 years have been sued. Because of that lenders will not go near the projects and developers can’t get their
companies to approve them. There is a huge contingent liability. Mr. Chambers said that they can no longer get the
insurance coverage that was afforded to them three years ago because of the provisions for liability insurance. This has
had a tremendous rippling effect on the affordability of housing in San Diego especially. Right now the only
companies who are even willing to consider doing affordable housing are companies who are large, public national
companies or large companies with financial clout like Shea Homes. Those are about the only companies who will go
near a project like this, and they go near it by going at it naked. They have for the most part no insurance coverage.
And every time they close a home, they will establish a reserve to self-insure themselves. A guy who is just out there
building, or most companies, even if they are large in San Diego, just have flat out said they will not do it. Continental
Homes will not do it because of the insurance rates.
Commissioner Calverley asked about the new product that Bill Miller and others have built like PUDs.
Mr. Chambers responded that these are detached condos--they are getting away from the single wall. What has
happened, according to Mr. Chambers, is that people have gone in and remapped condos to these detached projects.
Mr. Chambers said they are building one right now in Aviara. The costs per square foot are $45 as compared to at least
$10 less if you do an attached project, so it adds incrementally extremely large amounts to the cost of the construction.
They units have no common walls. He said you can plan for common area, and added that the large awards have been
for common roofs, common walls, common plumbing, common wiring.
Vice Chairperson Wellman asked about the 100-unit Village B affordable housing project. She asked if Mr. Chambers
is expecting the same kind of financial arrangement that Villa Loma or Aviara got, and if he needs tax credits with a
17: 1 leverage, etc.
Mr. Chambers responded that Michael will discuss the financing because it is his area of expertise. He stated that they
have a land contribution that is close to $2 million, which gets the ball rolling at Village B. He added that they are
looking at 4 percent tax credit financing rather than waiting in line for the 9 percent. They will be asking for financial
assistance to get this project off the ground.
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SEPTEMBER 1 1, 1997
PAGE 10
Vice Chairperson Wellman reminded that the Commission has to “balance the money thing.” If all the money goes
into one project, it hinders other projects, she said.
Michael Galasso, a principal with Baron Galasso and Associates, 600 West Broadway, San Diego, addressed the
Commission and introduced his partner Jim Baron and Claus Mendenhall, who is on the Board of Directors of Housing
Opportunities Inc., which has been around for 25 years as a non-profit. Mr. Galasso said that Baron Galasso and
Associates is a for-profit developedmanager of affordable housing. Mr. Galasso also introduced Carlos Rodriguez of
Rodriguez Design Associates.
Mr. Galasso said that the purpose of their being before the Commission was to introduce the Commission to the
members of the development team who is going to do the affordable housing project of the project and to answer
questions the Commissioners may have about the financing, etc. So that the Commissioners could get a feeling for
what the development team does, Mr. Galasso gave an extensive slide presentation of various projects Baron Galasso
and Associates has been involved in, from SROs to larger projects (affordable and market rate) both in San Diego
County and throughout the state with different types of financing
Mr. Galasso said they have been very active in campaigning to change some of the legislation so that San Diego
County gets more credits to do affordable housing projects. He said it is very difficult, and a lot of people are backing
away from the 9 percent program because of the uncertainties. He said they hope to get tax exempt bonds with
automatic 4 percent credits for the Rancho Carrillo project. He explained that one of the reasons they are pursuing the
4 percent credits and the bond financing is that they know it is a given entity they can get without having to go into the
competition and not get the credit. Trying to get the 9 percent is very, very competitive, he added. Mr. Galasso hopes
to be returning to the Commission next month.
Mr. Carlos Rodriguez of Rodriguez Design Associates (architect for the Laurel Tree project) also participated in the
slide presentation showing some of the projects he designed. He discussed giving projects “an individual home feel”
by way of design and use of color. He said his trademark is a lot of variety in the architecture facade expressed in
individual units. Mr. Rodriguez said that he does not make any distinctions between his design efforts in market-rate
housing versus affordable housing. His slides included mostly local projects, both affordable and market-rate. He
showed the design for the Rancho Carrillo Apartments, pointing out the CommunityRec Center. He said the project
was designed after the Rancho Carrillo Park and will include red tile roofs with rustic wood beams and some trellis
elements over the entry. The project will include a pedestrian spine that runs through the project starting at the Rec
Center with an archway at the entrance.
After Mr. Rodriguez’s presentation, Mr. Galasso addressed the Commission again. He stated that the first phase will
include 116 units--16 one bedroom units, 50 two bedroom units, and 50 three bedroom units. Mr. Galasso said they are
still working on their proformas and they will be meeting with Craig Ruiz in the near future with their budgets, etc.
Mr. Galasso said they are looking at having 20 percent of the units affordable to people who are 50 percent of median
income; another 20 percent affordable to those who make 60 percent of median of incomes; and the balance at 80
percent.
Vice Chairperson Wellman asked if there were any questions of Mr. Galasso.
Vice Chairperson Wellman commented that the Commission takes their job seriously and said that the sooner they can
get the materials the better. She said that questions the Commission may have include how this financing compares
with other financing not only on projects done in the City, but projects done elsewhere as well. She discussed the
Commissions’ concerned about second dwelling units in that there is no guarantee that they will be used as affordable
units. While the idea of the second dwelling units being sprinkled throughout the Villages is positive, there still is the
question of whether the units will be used as affordable units. Vice Chairperson Wellman suggested building the units
as dedicated affordable units sprinkled throughout the project.
HOUSING COMMISSION MINUTES
SEPTEMBER 1 1,1997
PAGE 11
Mr. Galasso stated that they will do their best to make sure there is plenty of time for the Commissioners to review the
material they present to the Commission.
DISCUSSION ITEM:
4. SECOND DWELLING UNITS
Vice Chairperson Wellman opened the discussion about the second dwelling units.
Commissioner Latas stated that the Commissioners have brought up a lot of issues when second dwelling units are
presented to them that are not included in the Guidelines, the two recent being good sound proofing and a laundry
issue. Commissioner Latas did some research and found that there is only one laundromat in Carlsbad. He suggested
mandating washerldryer units in the southwest quadrant because there may be a transportation problem getting to the
laundromat on Tamarack.
There was discussion about having somebody from the Building Department come before the Commission to educate
them on structure of units, integrity of units, and quality of construction.
Commissioner Walker asked if the developers receive the Guidelines.
Ms. Fountain responded that Staff shares the information with the developers. Eventually the Guidelines will be
presented to the Council for them to adopt as formal guidelines. It does not mean that a developer is required to follow
the Guidelines, but it helps them to understand what the Housing Commission is looking for to be able to recommend
approval of a project. The City Attorney told Staff that the Housing Commission cannot have its own guidelines, that
they have to be adopted by the City Council. Staff will be taking the Guidelines forward when they are finalized.
There was some more discussion about sound proofing.
Commissioner Scarpelli commented that one of the issues that is a concern of the Commission is the fact that second
dwelling units can actually be marketable rental units. He said that credits are given for the affordable housing, but in
reality the units may not be used as affordable units. Commissioner Scarpelli commented about making a change
requiring that the second dwelling units be advertised for rent in the open market and they must meet the affordable
housing criteria.
Ms. Fountain responded that the Commission mentioned this before when Mr. Becker presented the Guidelines
(requiring someone to rent the unit rather than being able to use it for a family member). There was a lot of discussion,
and it was decided that if it was rented, it had to be rented at an affordable price.
Commissioner Scarpelli expressed his concern for second dwelling units staying empty for 50 years, for example, and
never being used as affordable rental units.
Ms. Fountain responded that the Guidelines can require that the units be available for rent and cannot be used for
family members, and the owners have to prove that they have marketed the units, which is a big monitoring problem
for the City. This was something that was mentioned by Mr. Becker at a previous meeting, she said.
Commissioner Scarpelli said that this may not be practical. He added that second dwelling units are fabulous, but they
may not be appropriate as affordable housing.
HOUSING COMMISSION MINUTES
SEPTEMBER 1 1, 1997
PAGE 12
Ms. Fountain stated Staff has been sharing with developers that the Commission’s basic concern is that second dwelling
units are not meeting the need. Ms. Fountain added that even if Staff shares these concerns with developers, that does
not mean they will not propose second dwelling units because the Ordinance allows them to meet the requirement that
way. Ms. Fountain said that if the Commission puts forth conditions that the Council approves, developers may opt not
to build them. Staff has been telling developers that second dwelling units are not the most desirable product type right
now.
There was discussion about renting the units at an affordable price. Ms. Fountain clarified that the unit needs to be
rented at an affordable rate-the renter does not have to qualify as somebody needing affordable housing.
There was discussion on forcing owners to rent second dwelling units and on owners’ rights and on changing the
Ordinance.
Vice Chairperson Wellman asked that somebody from the City Attorney’s office be present when the Commission
discusses second dwelling units so that the Commission does not go off on the wrong tangent.
Ms. Fountain stated that second dwelling units are considered in the Options category. The Ordinance does not say,
“you can do second dwelling units to meet your requirement.” There is a general category that says “other options can
be considered by the City Council.” Second dwelling units have been thrown into that category as an option.
Ms. Fountain mentioned that there are a lot of very small projects in the southwest quadrant whose only options to
build on-site are second dwelling units or building one or two of their units as affordable; alternatively they will ask for
credits in the Villa Lorna project. Ms. Fountain commented that maybe the Commission wants to go in a different
policy direction on who is allowed to build second dwelling units, and if it is a big project, like Rancho Carrillo, the
Commission might ask for 240 apartment units and no second dwelling units. The policy decision for Guidelines is
completely open to the Commission on what they want to suggest as appropriate. It is not a legal issue on whether you
can force someone to rent their unit. It is more of a management issue of how the City manages it and how they prove
to the City that they have make the unit available. Ms. Fountain added that when the Guidelines are established, they
will be processed through the City Attorney’s office.
Ms. Fountain stated that it could get to the point where it is not practical to do second dwelling units. It may be easier to
decide not to meet the Inclusionary Housing Requirement with second dwelling units because they do not meet a need;
but still may encourage people to build them as part of their housing.
There was some discussion about the projects that have been approved with second dwelling units.
Ms. Fountain commented that Poinsettia Properties is considering second dwelling units.
Vice Chairperson Wellman asked for an agenda item next month to further discuss the Second Dwelling Unit
Guidelines and any additions to the Guidelines and whether second dwelling units should be designated to satisfy the
developer requirements of affordable housing. She also requested that a representative from the Building Department
and from the City Attorney’s office be present to aide with the discussion.
HOUSING COMMISSION MINUTES
SEPTEMBER 11, 1997
PAGE 13
Commissioner Scarpelli commented that the Commission’s role is to make sure affordable housing is made available in
the City to meet both state and federal codes.
ACTION: Motion by Commissioner Scarpelli, and duly seconded, to set on the agenda for next month
discussion of the Guidelines on development of second dwelling units and review of such
Guidelines and to have at their disposal for questions the Building Inspector and an attorney
from the City Attorney’s office.
Latas, Rose, Scarpelli, Walker, Wellman
VOTE: 5-0-0
AYES:
NOES: None
ABSTAIN: None
ANNOUNCEMENTS:
Ms. Fountain reported that the Laurel Tree project did get the full funding from the Tax Credit Allocation Committee,
which is about $8 million.
Ms. Fountain stated that she brought copies of the City Attorney’s response to the Grand Jury report that was
mentioned last month. She said that the City Council approved the response on Tuesday. She added that most of the
problem was caused by basic accounting issues and how the accounting is reported in the State report. There is a
disagreement about the interpretation of the regulations and what is considered an appropriate number, which will
probably continue.
Ms. Fountain stated that Staff sent the Commissioners a copy of the Annual Performance Report for the CDBG
program because it is out for public review and comment right now. The report will probably be brought back to the
Commission next month for discussion purposes.
Ms. Fountain concluded that there is no new information on the staffing issue. There is some discussion about
reorganization and how things might change in the fbture.
ADJOURNMENT :
By proper motion, the Regular meeting of September 11, 1997 was adjourned at 850 p.m.
Respectfully submitted,
(iaN3.J-
DEBBIE FOUNTAIN
Acting Housing and Redevelopment Director
KATHY VAN PELT
Minutes Clerk
. I
HOUSING COMMISSION MINUTES
SEPTEMBER 1 1,1997
PAGE 14
MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE APPROVED.
.--
The City of Carlsbad Housing & Redevelopment Department
A REPORT TO THE HOUSING COMMISSION
DATE:
SUBJECT:
Stafl Craig D. Ruiz
Management Analyst
SEPTEMBER 11,1997
OCEAN BLUFF - APPLICATION TO PURCHASE AFFORDABLE
HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT
I. RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 97-010, recommending that the City
Council APPROVE a request by the Ocean Bluff Partnership to purchase 16.24 Affordable
Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing
obligation of the Ocean Bluff development under the City’s Inclusionary Housing Ordinance.
11. PROJECT BACKGROUND
This item was before the Housing Commission at their August 14, 1997 meeting. The
Commission continued the item and directed Staff to provide a report projecting the inclusionary
housing requirements of undeveloped property within the Southwest Quadrant of the City. The
report was to also examine if the projected development of the Quadrant could result in a demand
for the purchase of off-site credits which exceed the number of available credits.
111. DISCUSSION
The City is divided into 23 Facility Management Zones. Within the Southwest Quadrant, there
are 11 Zones (See Exhibit “Y). Staff has reviewed the existing and potential future land uses
within each zone to determine the development potential for the entire Quadrant.
As detailed on the attached chart (See Exhibit “3”), within each zone, the property owner,
approval date of the project, total number of approvedpotential units, the number of inclusionary
units required, and method of satisfying the inclusionary requirement have been identified.
Projects of less than 7 units, which are eligible to pay an in-lieu fee as opposed to developing
inclusionary units, have been determined to have no inclusionary housing obligation for the
purposes of this report.
Of the eleven zones, five have no future inclusionary requirements. Zones 3,4,5, 6 and 13 have
either been previously developed or have a non-residential land use designation. With respect to
H:\word\Ocean Bluff HCRPT2
Zone 9, the undeveloped land consists of the Kaiza Poinsettia Development. This project has
satisfied their inclusionary obligation through their participation in the Laurel Tree project.
Zone 19 is comprised primarily of the Aviara development. The inclusionary requirement for
Aviara has been satisfied through the development of the Villa Loma project or will be satisfied
on-site in future phases of the development. Zone 23 is currently proposing to satisfy their
inclusionary obligation through the development of an on-site project.
Thus, Zones 20,21 and 22 contain the remaining undeveloped land which may result in an
inclusionary housing obligation at some future date. Using the growth control management point
obtained from the City’s Growth Management Ordinance, there exists a maximum development
potential of 1,148 residential units within the Southwest Quadrant. The development of 1,148
units will result in an inclusionary housing requirement of 172 affordable housing units.
There are two combined inclusionary housing projects in the Southwest Quadrant which contain
176 excess affordable housing credits. These projects include Villa Loma, which contains 159
credits and Laurel Tree, which contains 17 credits (based on information provided to staff to
date). With a build-out projection of 172 inclusionary units and an existing supply of 176 units,
there exists the potential for a surplus of 4 inclusionary housing credits.
Based upon staffs above projections, the current supply of 176 affordable housing credits will be
sufficient to meet the needs of the Southwest Quadrant at build-out. In addition, based upon the
information presented at the August 14, 1997 Housing Commission meeting, it is staffs opinion
that adequate justification exists to make the finding that the off-site satisfaction of the
inclusionary housing requirement is in the public interest. Therefore, staff is recommending that
the request to purchase credits be recommended for approval by the Housing Commission.
EXHIBITS
1. Housing Commission Staff Report of August 14, 1997
2. Southwest Quadrant Facility Management Zones
3. Affordable Housinghlarket Rate Housing Spreadsheet
4. Zone 20 Property Ownership
H:\word\Ocean Bluff HCRPT2
- EXHIBIT 1
7he Cify of Carlsbad Housing & Redevelopment Department
A REPORT ro THE HOUSING COMMISSION
I Item No. 2
DATE: AUGUST 14,1997
Stafl CraigD. Ruiz
Management Analyst
Continued to 9/ 1 1 /97
SUBJECT: OCEAN BLUFF - APPLICATION TO PURCHASE AFFORDABLE
HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT
I. RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 97-010, recommending that the City
Council APPROVE a request by the Ocean Bluff Partnership to purchase 16.24 Affordable
Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing
obligation of the Ocean Bluff development under the City’s Inclusionary Housing Ordinance.
11. BACKGROUND
The applicant, Ocean Bluff Partnership, has received approval for a tentative map (CT 93-09) to
develop 92 single family homes on approximately 31 acres. The project will include homes of
upwards of 3,000 square feet on parcels between 7,500 and 13,000 square feet. The subdivision
is required to provide 16.24 units of housing affordable to lower income households as required
by the City’s Inclusionary Housing Ordinance. To satisfy this requirement, the developer has
also received approval of Site Development Plan SDP 93-07 for the development of a 16 unit
affordable multi-family apartment project.
When CT 3-09 was approved by the City Council, a condition of approval for the project allowed
for the developer, upon showing that an on-site contribution is not appropriate, to purchase
Affordable Housing Credits in the Villa Loma housing project. The developer believes that there
are significant constraints which preclude the development of an on-site affordable housing
project. Therefore, the developer 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.
_-
OCEAN BLUFF
AUGUST 14,1997
PAGE 2
Policies ReFardinP 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. This
policy requires review of the request and an action recommendation from the Combined Project
Review (Staff) Committee consisting of the Housing and Redevelopment Director, City
Manager, Financial Management Director, Community Development Director, Planning Director
and City Attorney. The Mayor is an ex-officio member of the Committee. This committee has
reviewed the subject request and is recommending approval.
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. Based upon this
policy, the current cost to purchase a credit in the Villa Loma project is $32,220. The Ocean
Bluff Project, therefore, will be required to pay to the City of Carlsbad a total of $523,252, if
approved by the City Council.
RECOMMENDATION
The Council Policies require staff to evaluate the request for off-site satisfaction of the
inclusionary housing obligation and the purchase of credits based upon three primary criteria.
The criteria includes: 1) feasibility of on-site proposal; 2) relative-advantageddisadvantages of an
off-site proposal; and 3) the advancement of housing goals and strategies. The following is a
summary of staffs analysis of the criteria for the project.
Feasibilifv of On-site Proposal
0 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 fimding sources.
0 It will be difficult to integrate an affordable housing apartment project into an a
community of single family detached homes which have an estimated base price
range of $300,000 to $350,000.
Relative AdvantagedDisadvantages of an Off-site Proposal
0 The participation in the off-site project will allow the City to recover the costs
associated with the development of excess affordable housing units.
0 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.
I.
OCEAN BLUFF
AUGUST 14,1997
PAGE 3
Advancing Housing Goals and Strategies
0 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.
Based upon the analysis of the above criteria, it is staffs opinion that adequate justification has
been provided to make the finding that the off-site satisfaction of the inclusionary housing
requirement is in the public interest. Therefore, staff is recommending that the request to
purchase credits be recommended for approval by the Housing Commission.
EXHIBITS
1. Housing Gommission Resolution No. 97-010
2. Applicant Request to Purchase Credits
3. Draft Affordable Housing Agreement
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HOUSING COMMISSION RESOLUTION NO. 97-010
A RESOLUTION OF THE HOUSING COMMISSION OF
THE CITY OF CARLSBAD, CALIFORNIA, TO
RECOMMEND THAT THE CITY COUNCIL APPROVE A
REQUEST BY THE OCEAN BLUFF PARTNERSHIP TO
PURCHASE 16.24 AFFORDABLE HOUSING CREDITS IN
THE VILLA LOMA HOUSING PROJECT IN ORDER TO
SATISFY THE AFFORDABLE HOUSING OBLIGATION OF
THE OCEAN BLUFF PROJECT UNDER THE CITY’S
INCLUSIONARY HOUSING ORDINANCE.
APPLICANT: OCEAN BLUFF PARTNERSHIP
CASE NO: CT 93-09
~~
WHEREAS, the Ocean Bluff Partnership has received approval of Tentative Map CT 93-
09 for the development of a 92 unit residential development;
WHEREAS, said subdivision of land requires the developer to provide 16.24 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
wailable to satisfy other developers inclusionary housing obligation;
WHEREAS, Ocean Bluff Partnership 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 the 14‘” day of August, 1997, hold a
public meeting to consider said request for the purchase of Affordable Housing Credits by the
Ocean Bluff Partnership ;
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WHEREAS, at said public meeting, upon hearing and considering all testimony, if any,
fall persons desiring to be heard, said Commission considered all factors relating to the
?plication and request to purchase Affordable Housing Credits;
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the
'ity of Carlsbad, California, as follows:
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 Comprehensive Housing Affordability Strategy, 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
August 14, 1997, the Housing Commission recommends that the City Council
APPROVE a request by the Ocean Bluff Partnership to purchase 16.24 affordable
housing credits in the Villa Loma housing project in order to satisfy the affordable
housing obligation of the Ocean Bluff 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 the Exhibit 3 for 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.
eneral Conditions:
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 pay to the City the sum of $ 523,252 as its payment for sixteen
and twenty four one-hundredths (1 6.24) Credits. Execution of this Agreement by the parties
and payment of the sum of $ 523,252 to the City by the Developer shall fully satisfy the
Developer's affordable housing obligation pursuant to Chapter 2 1.85 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.
C RESO. NO 97-010
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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 14"' day of August, 1997, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
MICHAEL SCHLEHUBER, Chairperson
CARLSBAD HOUSING COMMISSION
DEBBIE FOUNTAIN
4cting Housing and Redevelopment Director
!IC RES0 NO. 97-010
?AGE 3
-
/CEAN BLUFF PARTNERS1 iiP
7825 Fay Avenue, Suite 200
La Jolla, California 92037
(61 9) 456-3594
July 15, 1997
Mr. Evan Becker
Housing and Redevelopment Director
City of Carlsbad
2965 Roosevelt Street, Suite 8
Carlsbad, CA 92008
Subject: Ocean Bluff Project -- Request to Purchase Affordable Housing Credits in the
Villas at El Camino Real Project
Dear Mr. Becker:
This letter serves as a formal request by the Ocean Bluff Partnership to purchase off-site
affordable housing credits in the Villas at El Camino Real development to satisfy the Ocean Bluff
(CT 93-09) project's inclusionary housing obligations. This request is made as a part of final map
processing activities. The request is in compliance with and is specifically supported by the
following actions previously taken by the City Council:
The City's lnclusionary 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 "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 at an alternative site or sites."
Planning Commission Resolution 3869, CT 93-09, .conditions also provide that "a second
inclusionary housing option available to the developer shall be that the developer shall
enter into an agreement with the City to purchase affordable credits from Villas at El
Camino Real or participate in an off-site combined inclusionary project within the
southwest quadrant and as appropriate, in accordance with the requirements set forth in
Chapter 21.85 of the Carlsbad Municipal Code, the Zone 20 Specific Plan, and City
Council Policies 57 and 58 dated September 12, 1985".
In the case of the Ocean Bluff project, there are particular circumstances that warrant the provision
of the inclusionary units off-site in combination with the existing Villas at El Camino Real
Apartment project or other suitable location, pursuant to Council Policy 57 criteria. Significant
feasibility issues affect the development of this project on-site. Contribution to the existing off-site
project versus providing a small low-income apartment complex on-site will result in increased
public benefit.
1
We understand this request will be evaluated by a staff Project Review Committee
comDliance with the criteria defined in Policies 57 and 58. We will then take the
to determine
Committee's
recommendation to the Housing Commission and City Council. As you know, we hope to expedite
the process to Council since this issue must be resolved precedent to recording the final map.
Please call if you need additional information or if we may be of any other assistance.
Sincerely,
Mr. Robert Wineteer
cc: Mr. Jack Henthorn, Jack Henthorn & Associates
2
.-
I
OCEAN BLUFF PROJECT
OFF-SITE AND COMBINED INCLUSIONARY HOUSING PROJECT
ASSESSMENT WORKSHEET -- BACKGROUND
The following background information is provided to assist you in your assessment.
I.
2.
3.
4.
5.
Owner/Appiicant information:
Ocean Bluff Partnership
Attn: Mr. Robert Wtneteer
7825FayAvenue
Suite 200
La Jolla, CA 92137
456 3594
Off-sitelcombined Project Name:
VILLAS AT EL-CAMlNO REAL APARTMENTS
Applicant’s Representative:
Jack Henthorn & Associates
Attn: Mr. Jack Henthorn
Suite J
5431 Avenida Encinas
Carlsbad, CA 92008
438-4090
Description of Project with lnclusionary Housing Obligation:
Ocean Bluff, CT 93-09, is a proposed 92-lot single family development located on a 31.2-acre
parcel with a 16.24-unit affordable housing obligation.
On-site Affordable Housing Description:
Ocean Bluff Affordable Housing, SDP 93-07, is a 16-unit multi-family, apartment project on one
lot with units ranging from 1 to 3 bedrooms. The units would range in maximum rent from
approximately $450 to $600, which is affordable to households earning incomes of 50% to
80% of the Area Median Income. To achieve feasibility, the project would require a subsidy of
$362,737 (even assuming a fully constructed pad is provided by the developer and unit
incomes are based on a 95% occupancy rate factor) .
Proposed Off-site Project Description:
The Villas at El Camino Real project is a 344-unit apartment development in which all units are
restricted and affordable to households with incomes not exceeding 60% of the San Diego
County Median. Villas at El Camino Real was developed by La Terraza Associates, with
Bridge Housing Corporation as the Managing General Partner. The complex contains 1, 2, 3 &
4 bedroom units.
Villas at El Camino Real was financed with assistance from the City of Carlsbad and the
Carlsbad Redevelopment Agency. The assistance was structured in such a way as to create
affordable units which would be marketed exclusively by the City to “other developers” in order
to satisfy an affordable housing obligation. Villas at El Camino Real Apartments is a Combined
Project according to the lnclusionary Housing Ordinance, and developers may participate in
this as an “off-site” method of satisfying their affordable housing obligation. (This is also an
approved site as per Specific Plan Amendment #203 for the Costa Do Sol project, currently
called Greystone Cove.)
3
Participation in Villas at El Camino Real Apartments by the applicant would be in the form of a
purchase of Affordable Housing Credits (Credits) under terms established by City Council
Policies Number 57 and 58. If the applicant is afforded the opportunity to purchase Credits,
the Ocean Bluff tentative map would require the purchase of 16.24 Credits to satisfy its
inclusionary housing requirement.
6. Description of On-site Project Constraints:
Specific constraints exist which would affect the on-site affordable project’s feasibility. These
include the uneconomical scale of the affordable project and a the significant price difference
between the affordable rental units and the proposed single-family market units that will be
developed in and around this project.
In addition to these constraints, the location of the Villas at El Camino Real project is superior
to the on-site location. Access from the subject site to nearby jobs, shopping, transportation,
schools, parks, bus stops and other services and amenities to the north and east will be
limited. Direct routes will not be available to nearby Palomar Airport Road and El Carnino Real
until well after the units are constructed. Contrary to this, the Villas at El Camino Real project is
already conveniently located with direct access onto El Camino Real, providing convenient
access to needed services and jobs.
4
OCEAN BLUFF PROJECT
OFF-SITE AND COMBINED INCLUSIONARY HOUSING PROJECT ASSESSMENT WORKSHEET -- WORKSHEET
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?
0
The on-site affordable project is of marginal size as an apartment project. Given the small size of the
project and its restricted rental structure, on site management and maintenance will be difficult.
The market units in this project would be required to absorb over $5700 per unit so that land
development costs could be contributed. This figure would rise to over $9600 per unit if the applicant
is required to build the units on site and close the post land development gap of $362,737.
Based on the estimated restricted rental prices of the affordable units the applicant will be facing an
average subsidy requirement of approximately $22,700 per unit, beyond land contributions. This
would result in each unit being subsidized with over $55,000.
b. Will an affordable housing product be difficult to intearate into the proposed market development
because of significant price and product type disparity?
Price disparities will be substantial between the low-income rental apartment units restricted at $450-
600 rent and the approved higher-end single-family, detached product with an estimated base price
range of $300,000 to $350,000.
The integration of 16 affordable apartment units, sized at 600 to 1,000 sq. ft., into the single-family
subdivision with homes over 3,000 square feet on 7,500 to 13,000 sq. ft. lots will result in major
product type disparity on-site. The surrounding area will also be built-out with low density, single-
family detached products consistent with the existing RLM land use designation and market demand.
The on-site project would, therefore also result in substantial product disparity with the surrounding
region.
c. Does the on-site development entity have the capacity to deliver the proposed affordable housing
on-site?
The applicant is not experienced in the development of affordable housing.
Affordable housing developers have advised the applicant that it is unlikely that this size of project will
generate interest from funding sources.
2. Relative AdvantaqeslDisadvantaqes 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 public assistance?
.
Villas at El Camino Real is built and has proven its feasibility; no additional assistance is required.
Nearly 500 affordable units have been recently completed or are in process of approvals in the
southwest quadrant. It is possible that affordable unit production could outpace market development.
The applicant's participation in Villas at El Camino Real would permit the intended recovery of City
investment provided to the project through utilizing "excess units". These funds could then be used
5
b.
C.
d.
3.
a.
to provide additional affordable housing. Conversely, the developer's on-site project would create the
demand for additional new subsidy. The small size of the on site project could result in additional future subsidy requests related to
operating costs.
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 developfients,
etc.?
0 The Villas at El Camino Real location has 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
being located directly on the major thoroughfare, El Camino Real.
Villas at El Camino Real is a self-contained affordable development in an area designated for higher
density residential development such as condominiums and townhomes.
The on-site proposal could be a source of land use conflicts that typically occur when higher density
development is permitted adjacent to larger lot single family development.
0
0
Does the off-site option offer a development entity with the capacitv to deliver the proposed
project?
The Villas at El Camino Real project is an existing project, developed and managed by a highly
experienced and specialized affordable housing developer.
Does the off-site option satisfy multiple developer obliaations that would be difficult to satisfy
with multiple projects?
0
0
Villas at El Camino Real project was originally established as a Combined Project, specifically to
address this purpose.
The proposed on-site project would be one of several projects in the southwest quadrant competing
for scarce financial assistance. Villas at El Camino Real has already been financed and built and
thus, would not be competing for subsidy financing.
Advancinq Housina Goals and Strategv
Does the off-site proposal advance andlor support City housing goals and policies expressed in
the Housing Element, CHAS and lnclusionary Housing Ordinance?
General Plan Housing Element and CHAS Goals:
0 Villas at El Camino Real Apt. affordable project is targeted to the highest priority need identified,
larger rental units for low income households.
The recovery of City investment in Villas at El Camino Real through the applicant's participation will
provide additional resources which are needed to assist further affordable housing development.
Villas at El Camino Real provides a large quantity and diversity of affordable housing stock with its
344 units, including a generous supply of different size units to meet various housing needs of the
community.
lnclusionary Housing Ordinance Policies:
0 Consistent with the City and public interests to use existing "excess" affordable units before
supporting additional new construction.
In conjunction with the combined Villas at El Camino Real project, Ocean Bluff will provide for 15% of
the total units for affordable (lower income) residential units. The project also complies with the
lnclusionary requirements as contained in the Zone 20 Specific Plan and the General Plan Housing
Element.
6
Growth Management Zone, Specific Plan (SP 203), Ord. No. NS-257 Guidelines:
Villas at El Camino Real is coordinated with surrounding properties by providing direct access to a
major Circulation Element Roadway, El Camino Real, as well as circulation and pedestrian access to
public facilities.
Villas at El Camino Real affordable housing product is consistent with the anticipated clustered multi-
family attached and stacked flat unit types identified in the Specific Plan.
Planning Commission Resolution No. 3869, Case No. CT 93-09, approved by City Council:
0 The offsite provision of inclusionary housing is consistent with Condition #22 which reads:
“Upon showing by the developer that an onsite contribution is not appropriate for the project, a
second inclusionary housing option available to the developer shall be that prior to final map
approval, the developer shall enter into an agreement with the City to purchase affordable credits
from Villa Lorna or participate in an offsite combined inclusionary project within the southwest
quadrant and as appropriate, in accordance with the requirements set forth in Chapter 21.85 of the
Carlsbad Municipal Code, the Zone 20 Specific Plan, and City Council Policies 57 and 58 dated
September 12, 1985. Prior to City Council approval, the developer shall submit a signed Affordable housing Agreement to the Housing and Redevelopment Director.”
7
AFFORDABLE HOUSING AGREEMENT
This AFFORDABLE HOUSING MITIGATION AGREEMENT, entered into
this day of I 19 , by and between the
CITY OF CARLSBAD, a Municipal Corporation (hereinafter referred
to as the "City"), and OCEAN BLUFF PARTNERSHIP, (hereinafter
referred to as the "Developer"), is made with reference to the
following:
A. Developer is the owner and developer of property
generally located at the northwest corner of the future
Poinsettia Lane and Blackrail Court in the Zone 20 Specific Plan
area and Local. Facilities Management Zone in the City of
Carlsbad, in the County of San Diego, California (hereinafter
referred to as the "subject property"). . The subject property is
more particularly described in Exhibit "A", which is attached
hereto and is incorporated herein by this reference.
B. Developer wishes to construct 92 single family homes
upon the subject property. The City Council has approved Zone
Change ZC93-04, Local Coastal Plan Amendment LCPA95-09, Carlsbad
Tract/Parcel Map CT 93-09, Hillside Development Plan HDP 93-09
and the Planning Commission has approved Site Development Plan
SDP 93-07, for the proposed development. The City Council and
Planning Commission issued these approvals subject to conditions
of discretionary approval.
C. The Developer was conditioned with the ability to
satisfy its affordable housing obligation in accordance with
Chapter 21.85 of the Carlsbad Municipal Code by purchasing
sixteen and twenty four one-hundredths (16.24) Affordable Housing
Credits (Credits) in the Villa Loma affordable housing project.
D. Pursuant to the above-referenced conditions of
approval, and in accordance with City Council Policies 57 and 58,
the Developer has received approval from the City Council by
Resolution No. 97- , dated , 1997, to purchase Credits
in the off-site project known as Villa Loma. The City controls
and has available these Credits in Villa Loma and the project
meets the requirements of a Combined Inclusionary Housing Project
as defined in Chapter 21.85 of the Carlsbad Municipal Code.
Purchasing Credits according to the terms of this Agreement
satisfies the developer's affordable housing obligation in
accordance with Chapter 21.85 of the Carlsbad Municipal Code and
the developer's conditions of approval.
NOW, THEREFORE, it is mutually agreed by and between the
undersigned parties as follows:
1. SATISFACTION OF AFFORDABLE HOUSING OBLIGATION AND
CONDITIONS OF TENTATIVE MAP APPROVAL THROUGH THE
PURCHASE OF AFFORDABLE HOUSING CREDITS
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 pay to the City the sum of $ 523,252 as its
payment for sixteen and twenty four one-hundredths (16.24)
Credits. Execution of this Agreement by the parties and payment
of the sum of $ 523,252 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.
Failure of the Developer to perform according to the
terms of this Agreement Will be a failure to satisfy the
Tentative Map Conditions with respect to the subject property and
Chapter 21.85 of the Carlsbad Municipal Code; and the City may
exercise any and all remedies available to it with respect to the
Developer's failure to satisfy the Tentative Map Conditions
including but not limited to withholding the issue of building
permits for the subject property.
2. CITY ACKNOWLEDGES DEVELOPER PAYMENT.
By executing this Agreement, City acknowledges receipt.
of Developer's payment under the terms of this Agreement.
3. DEVELOPER WAIVES RIGHTS TO OTHER METHODS OF SATISFYING
AFFORDABLE HOUSING OBLIGATION.
By executing this Agreement, developer waives any and
all rights to other means of satisfying the affordable housing
obligations required by Chapter 21.85 of the Carlsbad Municipal
Code and the conditions of approval.
4. HOLD HARMLESS.
The undersigned developer (hereinafter referred to as
"Indemnitor"), for and in consideration of the City of Carlsbad's
approval of this Agreement, and for other good and valuable
consideration, the receipt and sufficiency whereof is hereby
acknowledged by Indemnitor, does hereby covenant, undertake and
agree that it will indemnify and hold harmless (without limit as
to amount) the City of Carlsbad and its elected officials,
officers, employees and agents in their official capacity
(hereinafter collectively referred to as "Indemnitees") , and any
of them, from and against all loss, all risk of loss and all
damage (including expense) sustained or incurred because of or by
reason of any and all claims, demands, suits, actions, judgements
and executions for damages of any and every kind and by whomever
and whenever made or obtained, allegedly caused by, arising out
of or relating in any manner to this Agreement, and to protect
and defend Indemnitees, and any of them with respect thereto.
5. NOTICES.
All notices required pursuant to this Agreement shall be in
writing and may be given by personal delivery or by registered or
certified mail, return receipt requested, to the party to receive
such notice at the addresses set forth below:
TO THE CITY OF CARLSBAD:
City of Carlsbad
Housing and Redevelopment Department
Attn: Housing and Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, CA 92008-2389
TO THE DEVELOPER:
Ocean Bluff Partnership
Attn: Bob Wineteer
7825 Fay Avenue, Suite 200
La Jolla, California 92037
Any party may change the address to which notices are to be
sent by notifying the other parties of the new address, in the
manner set forth above.
6. INTEGRATED AGREEMENT.
This Agreement constitutes the entire agreement between the
parties and no modification hereof shall be binding unless
reduced to writing and signed by the parties hereto.
7. DURATION OF AGREEMENT.
This Agreement shall terminate and become null and void
when the City has received the payment described in Paragraph 1,
except as to the indemnity and hold harmless provisions setforth
in Paragraph 4.
8. SEVERABILITY.
In the event any limitation, condition, restriction,
covenant, or provision contained in this Agreement is to be held
invalid, void or unenforceable by any court of competent
jurisdiction, the remaining portions of this Agreement shall
nevertheless, be and remain in full force and effect.
IN WITNESS WHEREOF, the Parties hereto have caused this
Agreement to be executed as Of the day and year first above
written.
DEVELOPER
Ocean Bluff Partnership
CITY OF CARLSBAD
A Municipal Corporation
By :
Signature
By :
MARTIN ORENYAK
Community Development
APPROVED AS TO FORM:
Print Name
Title : -
RONALD R. BALL - City Attorney
Dir
EXHIBIT
PROPERTY DESCRIPTION
Lot 3 in Section 22, Township 12 south, range 4 west,
San Bernardino base and meridian in the County of San
Diego, Sate of California, excepting therefrom those
portions thereof lying north of the south boundary line
of Rancho Agua Hedionda, as said south line was
established May 5, 1913, by decree of the Superior
Court of the State of California, in and for San Diego
County, in that certain action (No. 16830) entitled
Kelly Investment Company, a corporation, vs. Clarence
Dayton Hillman and Bessie Olive Hillman.
-viii-
EXHIBIT 2
f *
* Affordable Housing Projects
CITY OF CARLSBAD i.
~
~ 4 OCAL FACILITIES iMANAGEMENT ZONES
SOUTHWEST QUADRANT
yellow = projects c 7 units
cream = pendinglappr'vdlbuilt
It.blue = proposing construct.
gold = existing corn bined prjct
Affordable Spreadsheet EXHIBIT 3
BUILT OUTINON-RES I
BUILT OUTINON-RES
lo.00
0.00
BUILT OUTINON-RES
BUILT OUTINON-RES
Kaka Poinsettia:
94-04 A1 =
94-05 A2
94-06 A3 *
94-06 A4 *
94-08 B1 '
94-12 C withdrawn
311 5/95
311 5/95
6120195
711 1/95
611 3/95
10.00
BUILT OUTINON-RES
Aviara Phase I * 12/4/90
Phase 11 * 2/19/91
Phase Ill 811 3196
Broccato 1/8/91
329.00
1093.00
677.00
151.00
449.00
72.00
1 Murphy
Mitsuchi
lBuerger 1
5/8/96
East 8/13/96
West * 4/2/96
Fernandez
Greystone Cave 3119196
Hadley
Hildalgo
IKaiser I
Krarner
Linn
Mar Vista 1/3/96
Mariano **
3/15/94
Muroya
4/2/96
(Roesch (-) I
'0° (x
. 00 .oo
0.00
7.00 .oo
6.00
.oo .oo
1 .oo
4.00 .oo
9.00
, 00
7.00
00
00
00
00
2.00
00
E.00
00
5.00
1.00
0.00
0.00
2.00
4.00
0.00
3.90
0.00
0.00
3.15
2.00
0.00
6.00
0.00
4.00
0.00
0.00
0.00
0.00
x
6.00
1.20
5.00
1 .oo
X
2.00
8.00
Affordable Spreadsheet
9250.00
8975.00
6050.00
1425.00
D950.00
14075.00
5975.00
22850.00
3400.00
3600.00
5325.00
3875.00
57950.00
...............
S15.00
8060.00
2575.00
67180.00
2575.00
8060.00
7090.00
piijaBiji:iiiii ..........................
............. g.l#r<.:;<:::::
I. .......... .:.; ........... .............
0 L.Tree
p@y:::::::::::-::::::: ..................... I.. ... ......................... ......................
Page1
yellow = projects < 7 units
cream = pending/appt'vd/built
It.blue = proposing construct.
gold = existing corn bined prjct
.
Sam bi
jan Dieguito
jarkaria
Schindler
jud. Int. Mission
jugino
rabata Trust
rabata N&E:
rhompson
rhompson
rhompson
rhornpson
Neidner
farnarnoto
Mestern Pacific *
teiter.W hitney.
;fregola,Bowen (-)
Aaldonado
3ons
:arkbad Partners ( - )
:ity of Carlsbad
3eiter
.ohf
Jarnikas
iudduth
levane ( -)
)esaska
bteiner
'arious owner:
Ward and Lear
Devlin
Edwards/Rounsv'le
Tartaglia
Cambell
Alsop
Shugard
Donahue
Stanton
Wood
Bachrnan
Dickie and Berry
Hart
McCabe
allas I BUILT OUT
oinsettia Properties:"
vas Lusk)
T97-10 incomplt
T97-11 PA 2
T97-I 2 PA 4
II Coast Enterp.
/eiss( 1 )
arious owners:
Pacific Riviera
Crowell and Smith
Schreiber
Cannon
Affordable Spreadsheet
10/1/96 lio,oo 312.00 1io.00 11.50 X
19.00 19.00 3.00
)16.00 116.00
X
:000
0 00
7 00
55.00
8 00 8 00
13 00 13 00 :Txm 0 00
106 00 106 00
24 00 24 00
23 00 23 00
32 00 32 00
16 00 16 00
2.00
X
0.00
0.00
1 .oo
8.00
1 .oo
2.00
0.00
16.00
4.00
3.00
5.00
2.00
0.00
24.00
38.00
38.00
29.00
0.00
84.00
19.00
75.00
18.00
15.00
33.00
0.00
12.00
0.00
4.00
6.00
6.00
4.00
0.00
13.00
2.85
11.25
2.70
2.25
4.95
0.00
1.80
0 00
0 00
0 00
000
000
0 00
0 00
0 00
0 00
000
0 00
0 00
0 00
0 00
OM)
0.00
0.00
0.00
15 13
1.00
1.00
.oo . 00
.27
29250.00
55575.00
46800.00
20475.00
160875.00
23400.00
38025.00
31 0050.00
70200.00
67275.00
93600.00
46800.00
46800.00
70200.00
11 1150.00
111150.00
84825.00
'245700.00
55575.00
219375.00
52650.00
43875.00
96525.00
351 00.00
3078.25
4255.25
(p$iQ@I$$.?E ....._.....i..._......
2 7090.00
27090.00
22575.00
722400.00
22575.00
3030.00
(
!438.10
!438.10
!438.10
1876.20
'314.30
!438.10
1876.20
1876.20
1876.20
1616.95
1438.10
!438.10
1438.10
2620.15
2845.90
4110.10
vviuivi
12.00
::$;w!
I. ..:.:. ...................... ...........
........... :&$$gj .......................
18.00
...........
...
Affordable Spreadsheet Page2
yellow = projects 7 units
cream = pending/apptvd/built
kblue = proposing construct.
gold = existing combined prjct
Affordable Spreadsheet
maran, uecner
Addison
Alcaraz
Graben
Fisher
Dettmer
Y aner
Affordable Spreadsheet Page3
- EXHIBIT 4
? M w
u $
L 0 E G
-. -
I me City of Carisbad Housing & Redevelopment Deparfment I A REPORT TO THE HOUSING COMMISSION
Item No. 2
Stuff Craig D. Riiiz
Managemen f Annlys t
DATE: SEPTEMBER 11,1997
SUBJECT CALAVERA HILLS VILLAGE L-1 - REQUEST FOR
RECOMMENDATION OF APPROVAL TO THE PLANNING
COMMISSION OF THE CONSTRUCTION OF FIVE, FOR SALE,
AFFORDABLE FOUR BEDROOM SINGLE FAMILY DETACHED
ORDER TO SATISFY THE REQUIREMENTS OF THE
INCLUSIONARY HOUSING ORDINANCE FOR THE
THE CALAVERA HILLS MASTER PLAN.
UNITS AND THE PAYMENT OF 25 OF THE CITY'S IN-LIEU FEE IN
DEVELOPMENT OF 35 RESIDENTIAL UNITS IN VILLAGE L-1 OF
I. RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 97-011 recommending
APPROVAL to the Planning Commission of the construction of five, for sale, affordable
four bedroom single family detached units and the payment of .25 of the City's In-Lieu
fee in order to satisfy the requirements of the Inclusionary Housing Ordinance for the
development of 35 residential units in Village L-1 of thecalavera Hills Master Plan.
11. PROJECT BACKGROUND
The Calavera Hills Master Plan, located in the Northeast Quadrant of the City, was approved by
City Council on November 1, 1993. The Master Plan is divided into Villages A through Y for
planning purposes. The developer has received approval to construct a 58 unit multi-family
planned unit development on a 6.28 acre site within Village L-1. The applicant, the Clurman
Company, Inc., is now processing a new tentative map for Village L-1 to allow for 35 single
family detached units. In conjunction with these plans for 35 units, the developer is proposing to
construct five, for sale, affordable four bedroom single family detached units as part of the
project for Village L-1 .
The developer's inclusionary housing obligation is 5.25 total units (15% x 35). The .25
requirement will be satisfied through the payment of an in-lieu fee as required by the
City's Inclusionary Housing Ordinance.
-
CAIAVERA HILLS VILLAGE L-1
SEPTEMBER 11,1997
PAGE 2
111. AFFORDABLE PROTECT DESCRIPTION
A. Location
Village L-1 is located on the northwest corner of Harwich Drive and future
Edgeware Way in the Calavera Hills Master Plan. The affordable units will be
located on lots 17,15,29,34, and 35 as shown on proposed Tentative Map CT 97-
04 (See attached Exhibit 3).
B. Unit Mix
The following table details the mix of market and affordable units in Village L-1:
I35 1 30 I 5 1 4 I 1,33Olivingspace,455garage I
The affordable units in Village L-1 are distributed throughout the project and are
to be developed concurrently with the market units.
IV. DEVELOPMENT TEAM
A. Developer - The Clurman Company, Inc.
B. Engineer - Hunsaker & Associates
C. Design and Planning -Van Tilburg Banvard & Soderbergh; Hofman Planning
Associates.
V. SITE
Village L-1 is located in the Calavera Hills Master Plan fronting on a full width public
street (Harwich Drive). Surrounding land uses include an existing duplex to the north.
In addition, areas to the south and east of Village L-1 are designated for multi-family
units. An existing 18 acre city park and a future commercial site are located
approximately one quarter-mile walk from Village L-1. Within the same distance, the
intersection of Carlsbad Village Drive and Tamarack Avenue provide access to the
public transportation system. Hope Elementary currently serves the community, and a
future junior high school is planned. Both the existing elementary and future junior high
school are within approximately one half-mile distance of the site.
CAIAVERA HlUS VILLAGE L-1
SEPTEMBER 1 I, 1997
PAGE 3
VI. AFFORDABILITY
A. Rent and Income Levels
The five affordable for-sale units in Village L-1 will be restricted and affordable to
households with incomes not exceeding 80% of the area median.
B. Target Population
The proposed mix of affordable units will be targeted to lower-income homebuyers.
With a growing number of lower-income jobs in Carlsbad, there is a sigruficant employee
demand for affordable housing for larger families which will improve the jobs/housing
balance.
C. Terms of Affordability
An Affordable Housing Agreement will be executed with the developer which
establishes terms of affordability which comply with the Inclusionary Ordinances.
D. Housing Element/Consolidated Plan Consistency
The proposed mix of affordable housing supports several Housing Element Goals and
Objectives, including Objective 3.5 (Lower Income New Construction), Objective 3.6
(Inclusionary Housing, Objective 3.2 (Larger Units), and Goal 4 (Jobs-Housing Balance).
The City's Consolidated Plan ranks low-incomehomeownership as "medium priority".
VII. FINANCIAL
At this time the developer has not requested financial assistance with respect to the
affordable housing proposals; however, they have indicated that they may make such a
request at a later date. If such a request is made, it would be evaluated at that time and
would be subject to the review of the Housing Commission and the approval of the City
Council. It is likely that the for-sale product will require some form of "gap financing".
VIII. SUMMARY
It is the role of the Housing Commission to make recommendations to the City Council
based on several considerations with respect to affordable housing projects. These are:
The proposal's effectiveness in serving the City's needs and priorities as
expressed in the Housing Element of the General Plan and the HUD
Consolidated Plan.
The proposal's consistency with the City's affordable housing policies and
ordinances as expressed in the Housing Element, Lnclusionary Housing
Ordinance, Density Bonus Ordinance, etc.
CALAVERA HILLS VILLAGE L-1
SEPTEMBER 11,1997 PAGE 4
The proposal's development and operating feasibility, emphasizing the
development team capacity, financing sources and the role of the City in
providing financial assistance or incentives.
Staff recogruzes that affordable homeownership units of the size and type proposed are
costly in comparison to other affordable housing alternatives. Specific financial
information has not been developed at this stage, and there will likely be a subsidy
request for the homeownership component of this proposal, but this will be determined
and evaluated at a later date.
As required by the Inclusionary Housing Ordinance, the developer and the City must
enter into an Affordable Housing Agreement prior to this project's final map or being
issued a building permit. An Affordable Housing Agreement records specific
requirements of the Inclusionary Ordinance, including unit type, affordability levels and
construction timing.
Based on the above considerations, staff recommends support of this proposal for
Village L-1 and a recommendation of approval to the Planning Commission.
IX. EXHIBITS
1. Housing Commission Resolution No. 97-011
2. Draft Affordable Housing Agreement
3. Housing Commission Review Application and Correspondence dated August 15,1997
4. Reduced Plan Exhibits
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
HOUSING COMMISSION RESOLUTION NO. 97-011
THAT THE HOUSING RECOMMEND APPROVAL TO
THE PLANNING COMMISSION OF THE
CONSTRUCTION OF FIVE, FOR SALE, AFFORDABLE
FOUR BEDROOM SINGLE FAMILY DETACHED UNITS
IN ORDER TO SATISFY THE REQUIREMENTS OF THE
DEVELOPMENT OF 35 RESIDENTIAL UNITS IN
PLAN.
APPLICANT: THE CLURMAN COMPANY
AND THE PAYMENT OF .25 OF THE CITY’S IN-LIEU FEE
INCLUSIONARY HOUSING ORDINANCE FOR THE
VILLAGE L-1 OF THE CALAVERA HILLS MASTER
CASE NO: CT 97-04, CP 97-02, SDP 97-03
WHEREAS, the developer of the Calavera Master Plan received approval to construct a
58 unit multi-family planned unit development as allowed by Carlsbad Tract Map CT 92-05;
WHEREAS, the developer is currently processing Carlsbad Tract Map CT 97-04 to
allow for 35 single family detached homes to replace Carlsbad Tract Map CT 92-05;
WHEREAS, the developer has proposed to construct five, four bedroom detached single
family homes affordable to lower income households 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;
WHEREAS, the developer’s proposal to construct said units has been submitted to the
City of Carlsbad’s Housing Commission for review and consideration;
WHEREAS, said Housing Commission did, on the 1 lth day of September, 1997, hold a
public meeting to consider said proposal to construct five affordable housing units;
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
proposal to construct said affordable housing units;
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
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NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the
City of Carlsbad, California, as follows:
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 Comprehensive Housing Affordability Strategy, the
Inclusionary Housing Ordinance, and the Carlsbad General Plan.
3. The project will provide a total of five, four bedroom single family detached units
affordable for purchase to households at 80% or below of the county median which
meets a "medium priority" affordable housing need as outlined within the City of
Carlsbad's approved 1995-2000 Consolidated Plan. The project, therefore, has the
ability to effectively serve the City's housing needs and priorities as expressed in the
Housing Element and the Consolidated Plan.
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
September 1 1 , 1997, the Housing Commission ADOPT Resolution No. 97-0 1 1,
recommending APPROVAL to the Planning Commission of five, for sale,
affordable four bedroom single family detached units in Village L-1 of the Calavera
Hills Master Plan in order to satisfy the requirements of the 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 4 to the Housing Commission Staff Report, subject to review
and approval by the City Attorney.
Conditions:
1. Recommendation of approval is granted for Site Development Plan 97-03, incorporated
by reference and on file in the Housing and Redevelopment Department. Development
shall occur substantially as shown unless otherwise noted in the conditions of project
approval by the City Council.
2. Recommendation of approval is granted for Site Development Plan 97-03 subject to the
condition that the applicant submit an acceptable schedule for construction of the
required ratio of income restricted units for inclusion in the final Affordable Housing
Agreement to be approved prior to Final Map. The schedule shall indicate acceptable
construction phasing for the affordable units in relation to the construction of the market
rate units.
HC RESO. NO. 97-01 1
PAGE 2
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3.
4.
5.
The units must either remain affordabIe for their useful life or the developer shall allow
for the transfer of the initial financial subsidy to another qualified household or the City
of Carlsbad if there is a resale at market price.
The affordable housing units must be deed restricted for "the useful life of the project"
which means a minimum of 55 years.
Upon final approval of said affordable housing project and prior to final map approval,
the applicant shall enter into an Affordable Housing Agreement with the City of
Carlsbad. The agreement shall be binding to all future owners and successors in interest.
The Affordable Housing Agreement shall include all terms and conditions of said
project approval and outline the incentives (financial or other), if any, to be provided by
the City of Carlsbad.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing
Commission of the City of Carlsbad, California, held on the 1 lth day of September, 1997,' by
the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
MICHAEL SCHLEHUBER, Chairperson
CARLSBAD HOUSING COMMISSION
DEBBIE FOUNTAIN
Acting Housing and Redevelopment Director
HC RESO. NO. 97-01 1
PAGE 3
c EXHIBIT 2
RECORDING REQUESTED BY:
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk’s Office
Attn.: City Clerk
1200 Carlsbad Village Drive
Carlsbad, California 92008
(Space above for Recorder’s Use)
AFFORDABLE HOUSING AGREEMENT
IMPOSING RESTRICTIONS ON REAL PROPERTY
This AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS
ON REAL PROPERTY (“Agreement”), entered into this day of , 1997, by
and between the CITY OF CARLSBAD, a Municipal Corporation (hereinafter referred to as the
“City”), and , (hereinafter referred to as the “Developer”), is made
with reference to the following:
A. Developer is the owner of certain real property in the City of Carlsbad, in
the County of San Diego, California (hereinafter referred to as the “subject property”) described
in Exhibit “A,” which is attached hereto and incorporated herein by this reference.
B. Developer wishes to construct 35 residential housing units which includes
30 units for sale at prevailing market prices (“Market Units”) and 5 residential housing units for
sale at affordable prices (“Affordable Units”) on the subject property. In addition, the developer
shall pay to the City .25 of the In-Lieu Housing Fee. The City has approved Carlsbad Tentative
09/02/97 1
Tract Map Number CT
proposed development.
Site Development Plan Number SDP
issued this approval subject to certain
, for the
Conditions of
Approval, including a condition requiring the Developer to enter into an Affordable Housing
Agreement in which Developer agrees to provide 5 dwelling units affordable to lower-income
households.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. Satisfaction of Affordable Housing Obligation and Conditions of Approval. In
order to satisfy the Conditions of Approval and requirements of the City’s Inclusionary Housing
Ordinance, Carlsbad Municipal Code Chapter 21.85, Developer shall provide a total of five (5)
Affordable Units which shall be initially restricted and affordable to lower income households.
In addition, the developer shall pay to the City .25 of the In-Lieu Housing Fee. This Agreement
is an Affordable Housing Agreement pursuant to Section 21.85.030(b)(5) of Chapter 21.85 of
the Carlsbad Municipal Code. Developer shall submit this Agreement to City and Agreement
shall be executed prior to the approval of the final map for the subject property.
Terms Governing Provision of Affordable Units.
2.1.
2.
Oblipation to Provide Affordable Units.
Developer shall provide Affordable Units in relation to Market Units (“Market Units”) on the
Subject Property. The Developer shall provide five (5) affordable units consisting of four
bedrooms, two baths, approximately 1,350 square feet in size. The maximum allowable income
level of buyers of the affordable units shall be restricted to a maximum of 80% of the area
median income.
09/02/97 2
median income.
2.2 Schedule for Developing, Affordable Units.
2.2.1 Developer shall begin construction of the Affordable Units as
shown on the approved Phasing Plan which is attached as Exhibit B.
2.2.2 Developer shall complete construction of all five (5) Affordable
Units and make them available for purchase within eighteen (1 8) months of the commencement
date of construction of the Affordable Units.
2.2.3 The Affordable Units shall be developed in accordance with the
approved Site Development Plan SDP
2.3 Terms for Sale of Affordable Units.
2.3.1 The Schedule of Maximum Eligible Buyer Incomes and Affordable
Subsidized Purchase Prices (the “Schedule”) attached hereto and incorporated herein as Exhibit
C sets forth the City’s requirements for maximum household income of buyers of the
Affordable Units (“Eligible Buyers”) and the methodology for calculation of the subsidized
purchase prices of Affordable Units which will be affordable to each of the Eligible Buyers (the
“Affordable Purchase Prices”). The Affordable Purchase Prices will vary depending on the
actual household income of the Eligible Buyer. The Schedule also includes initial estimates of
Eligible Buyer actual incomes and the corresponding Affordable Purchase Prices. The Final
Schedule shall be established prior to sale based on the San Diego County Area Median Income
and the cost factors applicable at the time. The Final Schedule shall be submitted by the
Developer and approved by the City’s Housing and Redevelopment Director prior to the
marketing of the Affordable Units.
09/02/97 3
marketing of the Affordable Units.
2.4 Resale of Affordable Units.
2.4.1 The affordable units must either remain affordable for their usefil life or
the developer shall allow for the transfer of the initial financial subsidy to another qualified
household or the City of Carlsbad if there is a resale at market price.
2.5 In-Lieu Fee HousinP Fee.
2.5.1 Prior to the issuance of a building permit for Village L-1, the developer
shall pay to the City .25 of the In-Lieu Housing Fee to satisfy the fractional requirement
3. Citv Approval of Documents.
3.1. The following documents, in form and substance acceptable to the City,
shall be used in connection with the sale of Affordable Units. Documents to be prepared by the
Developer shall be submitted to the Housing and Redevelopment Director for review and
approval no later than the start of construction of the Affordable Units.
3.1.1. A marketing plan establishing the process for seeking, selecting and
determining the eligibility of buyers of the Affordable Units shall be prepared by the
Developer.
3.1.2. An educational program informing Affordable Unit purchasers of the
obligations of home ownership and the specific features of this program shall be prepared by
the Developer.
3.1.3. Purchase and Sale Agreements for sale of the Affordable Units shall
be prepared by the Developer.
3.1.4 Loan documents, including, without limitation, loan agreement,
09/02/97 4
3.1.4 Loan documents, including, without limitation, loan agreement,
promissory note, and deed of trust.
3.1.5 Any of the documents identified in this section 3.1 may be revised by
Developer from time to time with the prior written approval of the Housing and
Redevelopment Director.
4. Reporting; and ComDliance Monitoring;. A report verifying compliance
with the requirements of this Agreement covering the initial sales of the Affordable Units shall
be provided to the City by the Developer and certified by a third party such as a Certified
Public Accountant approved by the Housing and Redevelopment Director. Developer shall
provide the‘ City with other reports as reasonably required by the City to verify compliance
with this Agreement.
5. Default. Failure of the Developer to cure any default in the Developer’s
obligations under the terms of this Agreement within ninety (90) days after the delivery of a
notice of default from the City (or where the default is of the nature which cannot be cured
within such ninety (90) day period, the failure of the Developer to commence to cure such
default within the ninety (90) day period or the Developer’s failure to proceed diligently to
complete the cure of such a default within a reasonable time period) will constitute a failure to
satisfy the Conditions of Approval with respect to the Subject Property and the requirements
of Chapter 21.85 of the Carlsbad Municipal Code and void the approval of the Final Map and
Site Development Plan; and the City may exercise any and all remedies available to it with
respect to the Developer’s failure to satisfy the Conditions of Approval, including but not
limited to, the withholding of building permits for the Market Units within the Subject
09/02/97 5
Property.
6. Amointment of Other Agencies. At its sole discretion, City may
designate, appoint or contract with any other public agency, for-profit or non-profit
organization to perform the City’s obligations under this Agreement.
7. Burden to Run with ProDerty. The covenants and conditions herein
contained shall apply to and bind the heirs, executors, administrators, successors, transferees,
and assignees of all the parties having or acquiring any right, title or interest in or to any part of
Subject Property and shall run with and burden the Subject Property until terminated in
accordance with the provisions hereof. Prior to the issuance of building permits, the Developer
shall expressiy make the conditions and covenants contained in this Agreement a part of any
deed or other instrument conveying any interest in the Subject Property. Notwithstanding
anything to the contrary set forth in this Agreement, individual purchasers of units pursuant to
an approved public report in compliance with the California Subdivided Lands Act, and
mortgage lenders holding deeds of trust on such individual units after sale to such purchasers,
shall not be subject to the terms of this Agreement; and the terms of this Agreement shall be of
no further force or effect with respect to such completed unit on the date of the recordation of a
deed to the individual purchaser.
8. Hold Harmless. Developer will indemnify and hold harmless (without
limit as to amount) City and its elected officials, officers, employees and agents in their official
capacity (hereinafter collectively referred to as “Indemnitees”), and any of them, from and
against all loss, all risk of loss and all damage (including expense) sustained or incurred because
of or by reason of any and all claims, demands, suits, actions, judgments and executions for
09/02/97 6
damages of any and every kind and by whomever and whenever made or obtained, allegedly
caused by, arising out of or relating in any manner to developer’s actions or defaults pursuant to
this Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto.
Developer shall obtain, at its expense, the following insurance policies for
development of the Subject Property naming Indemnitees as additional named insureds with
aggregate limits of not less than five million dollars ($5,000,000) purchased by Developer
from an insurance company duly licensed to engage in the business of issuing such insurance
in the State, with a current Best’s Key Rating of not less than A-V, such insurance to be
evidenced by an endorsement which so provides and delivered to the City Clerk prior to the
issuance of any building permit for the Subject Property,
9. Notices. All notices required pursuant to this Agreement shall be in
writing and may be given by personal delivery or by registered or certified mail, return receipt
requested, to the party to receive such notice at the addressed set forth below:
TO THE CITY OF CARLSBAD:
CITY OF CARLSBAD
Housing and Redevelopment Department
Attn: Acting Housing and Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, California 92008-23 89
TO THE DEVELOPER:
CLURMAN COMPANY, INC.
455 Linden Street
Laguna Beach, California 92651
Any party may change the address to which notices are to be sent by
notifying the other parties of the new address, in the manner set forth above.
09/02/97 7
10. Integrated Agreement. This Agreement constitutes the entire Agreement
between the parties and no modification hereof shall be binding unless reduced to writing and
signed by the parties hereto.
1 1. Duration of Agreement. This Agreement shall terminate and become null
and void upon the earlier of: (a) the closing of the sale of the last of the Affordable Units to an
individual purchaser pursuant to a sale on an approved public report in compliance with the
California Subdivided Lands Act, or (b) upon the granting of a written release by the
Community Development Director. This Agreement, and any section, subsection, or covenant
contained herein, may be amended only upon the written consent of Developer and the
Community Development Director.
12. Recording of Agreement. The parties hereto shall cause this Agreement
to be recorded against the Subject Property in the official Records of the County of San Diego.
Severability. In the event any limitation, condition, restriction, covenant,
or provision contained in this Agreement is to be held invalid, void or unenforceable by any
court of competent jurisdiction, the remaining portions of this Agreement shall nevertheless,
be and remain in hll force and effect.
13.
...
...
09/02/97 8
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.
DEVELOPER CITY
CITY OF CARLSBAD,
A Municipal Corporation
By: By:
Signature MARTIN ORENYAK
Community Development Director
Name: APPROVED AS TO FORM:
Title:
RONALD R. BALL
City Attorney
09/02/97 9
STATE OF CALIFORNIA 1
COUNTY OF )
) ss.
On ,199-, before me, , personally
appeared and
, personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in hisher/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public in and for said State
(SEAL)
STATE OF CALIFORNIA 1
COUNTY OF )
) ss.
On ,199-, before me, , personally
appeared and , personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in hishedtheir authorized capacity(ies), and that by
hishedtheir signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public in and for said State
(SEAL)
09/02/97 10
EXHIBIT 3
Hofman Planning
Associates
Planning Project Management Fiscal Analysis
August 15,1997
Debbie Fountain
City of Carlsbad
Housing and Redevelopment Department
2965 Roosevelt Street, Suite B
Carlsbad, CA 92008-2389
RE: Inclusionary Housing - Calavera Hills, Village L-1
Dear Debbie:
The purpose of this letter is to demonstrate how the Clurman Company's proposed project in
Village L-1 of the Calavera Hills Master Plan fulfills the need for affordable housing in
compliance with the requirements of Carlsbad's Housing Element, Inclusionary Ordinance and
the Calavera Hills Master Plan.
The proposed inclusionary housing units within Village L-1 are in compliance with Objective 3.2
of the Housing Element which requires the development of housing units suitable to meet the
needs of lower income larger households. This proposed project also complies with the Policy
3.6.a of the Housing Element which requires that 15% of all approved units in any residential
specific plan or qualified subdivision shall be set aside and made available to lower income
households.
As explained in the attached project description, the proposed units are within walking distance
to an existing city park, an existing elementary school and a future junior high school. A hture
commercial site would also be located in close proximity to these units. The proposed
inclusionary housing units will also be located near major arterials and public transportation
routes. The affordable units have been located throughout Village L-1 and will have a similar
style of architecture so that they will be compatible with the market rate units and will be
developed concurrently with the market rate units. The tentative map and site plan for Village L-
1 shows the location of these units.
2386 Faraday Avenue Suite 120 Carlsbad CA 92008 (619) 438-1465 Fax: (619) 438-2443
This project is one of the first affordable housing proposals in the Northeast Quadrant of the City
and in the Calavera Hills Master Plan area. It will also provide affordable four bedroom
ownership single family units integrated into a market rate project. At this time the Clurman
Company is not requesting any financial assistance or subsidies from the City, but is reserving
the right to come back to the City to request such assistance if it is determined necessary for the
success of the project.
In closing, the proposed inclusionary units are in compliance with all applicable policies and
programs of the City of Carlsbad's Housing Element, Inclusionary Ordinance as well as the
Calavera Hills Master Plan.
Sincerely,
Mike Howes
cc Chris DeCerbo
--.- HOUSIXG COM'AIISSION REVIEW APPLICATION
1. APPLICA.NT/DEVELOP~.IENT TEAhf INFOR\W"ION
Name of Applicant: Clurman Company, Inc .
Mailing Ad&=: 455 Linden Street Laguna Beach, CA 92651 .
TeIeDhone No.: (71 4) 494-3707
Identify Development Team (ie., developer, builder, architect, etc.):
Developer: Clurman Company, Inc. Engineer: Hunsaker & Associates Architect: Van Tilburg Banvard & Soderbergh
Coordination/Processing: Hofman Planning Associates
~~ ~
DI. GENERG PROJECT NFORhfATION
ProjectName: Calavera Hills - Village L-1
Describe General Location of Project:
The project is located on the northwest corner of Harwich Drive and Edgeware Way.
Projea Address: --
Total Number of Affordable Units Required (if applicable):
Total Number of Affordable Units Proposed:
Type of Units (ie., garden apartments, detached, etc.):
5
5
Single family detached
Size (in square feet) Of each Unit: 4 bedroom unit - 1 ,330 square feet total living
(Proposed inclusionary) space, 455 square foot garage
Bedroom Size Distribution of Units: 5 four bedroom units
~~ ~~~~ ~
Describe any special faturedamenities to be included within projKct:
- - -
III. TElUfS OF AFFORDABWT%' FOR AFFORDABLE UMTS (ATTA ADDmONfi ~O&~.~ATION
NECESSARY)
Targeted Income Levels (as % of area median): 80% of median income
Target Population (ie., families, seniors, etch
Monthly Rent (by bdr. size) or Sales F'rice of Units:
Fami 1 ies
The affordable housing units will be sold at a
price in conformance with the City of Carlsbad's- Housing Authority's Low Income House Pricing camns for 80% of the median income.
Term of Affordability (ie., 30 yrs, life of project, etc.): 30 years
Projected Schedule for Construction of Affordable Housing Units:
Spring 1998
If the affordable units are being constructed to satisfy the City of Carlsbad's Inclusionary Housing requirement, how
will they be phased with respect to construction of the market rate units? Please Explain Project Phasing:
Concurr.ent with the market rate units.
-
IV. FINANCIAL INFORMATION ON AFFORDABLE HOUSING PROJECT
Please attach a copy of development and operating financial profomas showing sources and Uses of funds to
accomplish the affordable units proposed in this application. In the proformas, please identify your subsidy sources
and appropriate justifications for use of these sources.
Describe the local financial assistance or incentives, if any, including specific terms desired for the affordable housing
project which you are, or will be, requesting from the City of Carlsbad:
At this time it has not been determined how much if any
financial assistance will be required from the City.
~ ~~~
Identify any other project conditions which may be reIevant to project feasibility:
Housing Commission Review A~ulication
Page 2 ..
12/80 93
- L*-, -- THE BOX BELOW IS FOR ClTY US€ ONLY
Application R&.ved:
I StaFf Rccommenduioa:
----
1218 33
ml
DISCLOSURE STATEMENT
1
!Please Prrnt)
The following information must .be disclosed:
1. Apdicant
List the names and addresses of all persons having a financial interest in the application.
Hofman Planning Associates
2386 Faraday, Suite 120
Carlsbad, CA 92008
2. Owner
List the names and addresses of all persons having any ownership interest in the property involved.
Clurman Company, Inc.
455 Linden Street
Laquna Beach, CA 926 51
Donald S. Clurman
Kenneth M. KaDlan
3. If any person identified pursuant to (1) Or (2) above is a corporation or partnership, list the namts anc
addresses of all individuals owning more than 10% of the shares in the corporation or owning any panrarshp
interest in the partnership.
4. If any person identifled pursuant to (1) or (2) above is a non-profit organization or a trust, list the names and
addresses of any person serving as officer or director of the non-profit organization or as trustee or beneficiary
of the trust.
FRh400013 8/90
2075 Las Palmas Drive - Carlsbad. California 92009-4859 (619) 438-1 161
J CALAVERA HILLS VILLAGE L-I
PROJECT DESCRIPTION
The Village L-1 project proposes the development of a 6.28 acre site with 35 single
family detached units (zero lot line condominiums) on the northwest corner of Harwich
Drive and Edgeware Way. The request submitted is for the approval of a tentative
map, a planned developmentkondominium plan and a site development plan. The site
development plan is required because it is the implementing mechanism required by
Section 21 53.120 of the Carlsbad Municipal Code for an affordable housing project.
The site does have a previous approval from 1992 on it (CT 92-05/PUD 92-06/SDP 92-
05) which was for 58 attached multi-family units. Nine of the 58 units or 15% had been
set aside as “affordable”. The approval allowed for reduced driveways and 24’ wide
streets with sidewalk on one side of a loop street. Additionally, the site has been rough
graded into a level building pad adjacent to an existing natural slope, while an open
space easement has been placed over approximately 2.1 acres on the western portion
of the site.
The site is within the Calavera Hills -Master Plan area as well as Local Facilities
Management Zone 7. The master plan designates this site as “multi-family” with a
General Plan designation of RMH and allows for uses permitted in the RD-M zone. The
Master Plan defines multi-family as “attached rental or ownership units”, however, it
does specify that “single family detached” products are also allowed under this
definition. This would, then, eliminate any potential requirement for a master plan
amendment.
As a part of the current proposal, approximately 5 units or 15% of the 35 units total will
be made available for affordable housing. There are three different plan types
proposed ranging in size from 1,785 square feet to 2,330 square. feet. The total
building coverage onsite is just under 1.0 acre and the density for the project is
approximately 8.3 du’s/acre which falls within the RMH range of 8-15 du’s/acre.
The project meets all of the requirements of the City ordinances and standards except
the PUD standards requiring 30’ wide streets and 20’ front yard setbacks. The project
proposes 24’ wide streets, 18’ driveways, and a sidewalk on one side of the loop street
all of which meet or exceed the standards which were supported by staff for the
previous approval on this site.
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The City of Carlsbad Housing & Redevelopment Department
A REPORT TO THE HOUSING COMMISSION I
Staff- CraigD. Ruis
Management Analyst
DATE:
SUBJECT:
SEPTEMBER 11,1997
DEVELOPER PRESENTATION ON THE PROPOSED RANCHO
CARRILLO AFFORDABLE HOUSING PROJECT.
I. RECOMMENDATION
No action required. Informational report only.
II. PROJECT BACKGROUND
The Rancho Carrillo Master Plan is an approved development allowing for the construction of 1,816
residential units. The Housing Commission has previously reviewed two proposals to satisfy the
project’s inclusionary housing requirements. These approved projects allow for a mixture of for sale
townhomes and carriage units in Villages E & F (see attached site plan) and second dwelling units
located throughout the development.
The developer is currently processing an amendment to the Master Plan. Included in the amendment is a
proposal to relocate and change the product type of the affordable units. The project now proposes to
provide two hundred affordable multi-family units within Village B and 40 second dwelling units located
throughout the development.
Village B is proposed to consist of 240 multi-family units total. The first construction phase will consist
of 116 affordable apartment units. The second and third construction phases will consists of 84 and 40
multi-family units respectively. The developer has not determined if the units in either the second or
third construction phases will be apartments or for-sale condominiums. Regardless of the product type,
the 84 units in the second phase will be restricted to lower income residents while the 40 units will be
market rate.
The developer is not seeking the approval of Housing Commission at this time. The presentation is an
informational item which will familiarize the Commission with the preliminary site and architectural
designs, and the factors that necessitated the changes to the approved affordable projects. The developer
will be seeking Housing Commission approval of the affordable development at a future date.
EXHIBITS:
1. Rancho Carrillo Location Map
2. Rancho Carrillo Site Plan
EXHIBIT I
\ C arlsb ad
\
EXHIBll 2
R A N C H-O -
U
U a
Z <
I
The City of Carlsbad Housing B Redevelopment Deparfment I A REPORT TO THE HOUSING COMMISSION
I Item No. 4
Stafl Debbie Fountain
Acting Housing & Redevelopment
Director
DATE: SEPTEMBER 11,1997
SUBJECT: GUIDELINES FOR SECOND DWELLING UNITS
I. RECOMMENDATION
This item was added to the agenda at the request of the Housing Commission to allow
for additional discussion regarding the Housing Commission’s guidelines for
development of second dwelling units to satisfy an Inclusionary Housing Requirement
of a housing developer. No staff recommendation.
11. PROJECT BACKGROUND
At the Housing Commission meeting on August 14, 1997, the Housing Commission
requested that the Second Dwelling Unit GuideZines be added to the agenda for the
September 1 1, 1997 meeting to allow for additional discussion. The two issues indicated
for discussion were 1) soundproofing walls between the second unit and the main
dwelling unit, and 2) the requirement to provide a washer and dryer unit within each
second dwelling unit used to meet an obligation under the Inclusionary Housing
Ordinance
On April 10, 1997, the Commission took action to establish draft guidelines which can be
used to provide direction to housing developers as to the types of second dwelling units
which will generally be supported by the Housing Commission. The attached guidelines
were adopted by the Commission on May 8, 1997. Staff shares the guidelines with
developers interested in constructing second dwelling units. The guidelines do not
prevent the Housing Commission from recommending projects for approval which are
not entirely consistent with the guidelines, but they do provide the housing developers
with a “target” for developing a second dwelling unit product which can be supported by
the Housing Commission.
111. EXHIBITS
1. Housing Commission Development Guidelines for Second Dwelling Units.
EXHIBIT 1
CiQ of Carlsbad
Housing Commission
GUIDELINES ON DEVELOMENT OF SECOND
DWELLING UNITS
[Approved: May 8, 1997
PurDose of Guidelines:
To assist the Housing Commission in review of projects which have proposed
development of Second Dwelling Units to meet the requirements to produce affordable
housing units under the City of Carlsbad’s Inclusionary Housing Ordinance.
To assist housing developers to better understand the desires of the Housing Commission
to produce quality affordable housing which appropriately meets the needs of the
Carlsbad community.
To assist City staff as they work with housing developers to satisfy their affordable
housing obligations under the Inclusionary Housing Ordinance
Guidelines:
The Guidelines developed by the Housing Commission, and to be recommended for
adoption by the City Council, are as follows:
1.
2.
3.
4.
Size Limits: The units shall be no larger than 640 square feet (per the Second
Dwelling Unit Ordinance) and no smaller than 400 square feet, unless compelling
evidence is presented by the developer which justifies a smaller size unit.
Design Features: Same as those required by the Second Dwelling Unit Ordinance,
with the addition that the second dwelling unit must provide a one (1) bedroom floor
plan if the unit can be accessed directly from the main dwelling unit.
Affordability: The affordability requirements shall be the same as those set forth
within the Second Dwelling Unit Ordinance.
Occupancy Restrictions: There shall be no restrictions on the total household income
for occupancy purposes. If the unit is rented, however, the rent must be set at a rate
which is affordable to households at 80% or below of the San Diego County Median
Income. This is the same as the Second Dwelling Unit Ordinance.
SDU Guidelines
May 8,1997
Page 2
5.
6.
7.
Form of Restrictions: The form of the restriction on the property shall be the same as
that indicated within the Second Dwelling Unit Ordinance, with the addition that the
Affordable Housing Agreement be recorded against the property as well.
Monitoring: An annual review of the second dwelling units will be completed using a
random sampling of existing units. It is anticipated that the sampling will include an
appropriate representation (Le., 20% approximately) of the units which have been
constructed as of the date of the review/monitoring visit.
Other Limitations: As a general guideline, second dwelling units can be used to
satisfy the entire affordable housing requirement for housing projects which have less
than 100 units total. For projects which provide for 100 units or more, the general rule
shall be that no more than 20% of the total inclusionary housing requirement may be
satisfied through the development of second dwelling units. This guideline limit is in
addition to the language in the Inclusionary Housing Ordinance which requires City
CouncilA-Iousing and Redevelopment Commission and/or Planning Cornmission to
give final approval to allow g use of second dwelling units as an alternative to
otherwise required construction of new inclusionary units.
As Guidelines, the above criteria have flexibility for application purposes. On a case by
case basis, the City CouncillHousing and Redevelopment Commission, Planning
Commission and/or Housing Commission may consider projects for approval which are
not entirely consistent with these guidelines, if the projects are otherwise deemed
appropriate and consistent with the Second Dwelling Unit Ordinance. These guidelines
do not mend any existing ordinance related to the Second Dwelling Units or
Inclusionary Housing requirements.