HomeMy WebLinkAbout1998-01-14; Housing Commission; MinutesMINUTES OF:
TIME OF MEETING: 6:OO PM.
DATE OF MEETING: JANUARY 14,1998
PLACE OF MEETING:
HOUSING COMMISSION (SPECLPL MEETING)
HOUSING & REDEVELOPMENT CONFERENCE ROOM
CALL TO ORDER:
Chairperson Wellman called the Special Meeting to order at 6: IOPM.
PLEDGE OF ALLEGIANCE:
The pledge of allegiance was led by Commissioner Scarpelli.
ROLL CALL:
Present: Chairperson Wellman, Commissioners Calverley, Escobedo, Latas, Noble, Rose, Scarpelli, Schlehuber
Absent: Commissioner Walker
Staff Present: Debbie Fountain, Acting Housing and Redevelopment Director
Craig Ruiz, Management Analyst
Toni Espinoza, Housing Specialist I1
APPROVAL OF MINUTES:
ACTION: Motion by Commissioner Scarpelli, and duly seconded, to approve the Minutes of the
Regular Meeting of December 1 1, 1997, as submitted.
Calverley, Escobedo, Latas, Noble, Rose, Scarpelli, Schlehuber, Wellman
VOTE: 8-0-0
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. SDP 97-15 RANCHO CARRILLO VILLAGE B - PHASE I - Request for recommendation of approval to
the City Council of an Affordable Housing Agreement and Site Development Plan for the construction of 116
affordable apartment units in Village B to satisfy the inclusionary housing requirements for Phase I of the
Rancho Carrillo Master Plan.
Craig Ruiz reviewed the background of the request and stated that the project’s Site Development Plan will go to the
Planning Commission for their recommendation in February or March, then will go to the City Council for fmal action.
Financial assistance is not part of the proposal tonight, but will be a topic of discussion at a future meeting.
‘Mr. Ruiz pointed out that this project was previously before the Commission last September as an information item. At
that meeting, the Commission met the Development Team and saw the conceptual design of the site. Previously the
Commission approved a different affordable housing project on a different site.
Mr. Ruiz stated that the project is located south of Palomar Airport Road, near the intersection of the new Melrose
Drive, on the city limits of Carlsbad and San Marcos. The project will allow for 1,816 total units, with 272 affordable
units and 1,544 market-rate units. The project will be located in the north corner, right at the intersection of Melrose
and Palomar Airport Road in Village B. A portion of Village B will contain a 116-unit affordable apartment project,
c
HOUSING COMMISSION MINUTES
January 14, 1998
Page 2
which is less than the total 242 affordable units. The 116 units will satisfy a portion of the total development. Using
the 15 percent rule will result in 775 market-rate units. At a later date, there will be another proposal with more
affordable units that will allow for the build-out of the rest of the project. Phase I of this project will therefore consist
of 775 units; the total number of units to be provided within the Master Plan is estimated at 1816.
Staff and the Development Team have been negotiating and working together on this project for many months and
have made significant progress; however, the Development Team does not concur with all of Staffs recommendation
as described in the January 14, 1998 Housing Commission Report.
.Mr. Ruiz went over the City’s position and the Development Team’s position on various issues as follows:
The affordable agreement would cover Phase I of the
Master Plan with 116 affordable housing units and 775
total units. The Agreement will be amended at a later date
with the provision of a Site Development Plan for the
second phase of the affordable housing project and
possibly second dwelling units. This would require an
action at a later date to amend the Housing Agreement
with a different affordable housing project.
No second dwelling units are included in the Phase I
agreement. Second units could be added or approved to
satisfy their Inclusionary Housing Agreement after a Site
Development Plan is identified with the location and the
floor plan and design, which would have to be approved
by the Housing and Planning Commissions. As of today,
there is no actual design of the second dwelling units; and
it is unknown throughout the plan where they would be.
Continental Homes could final maps on 775 housing units
in Phase I with 659 market-rate units and 116 affordable
units. Building permits for 225 market-rate units could be
pulled before construction begins on the affordable units;
and 275 market-rate unit building permits could be pulled
once the project is complete. The remaining 159 building
permits for market-rate units may be pulled after the
project is complete and final inspections have been
conducted. There is no timing at this point for the Phase
I1 Site Development Plan. The project would not be
allowed to proceed with the development of market-rate
housing units beyond 659 units until a Site Development
Plan is prepared for the second phase of affordable
housing and an amended construction phasing plan is
approved.
Continental’s proposal covers not just Phase I, but the
entire 1,816 housing units. The second phase of the
market-rate project could be built once the Site
Development Plan and Financing Plan are approved for
the remaining housing units. This proposal would allow
the developer to increase the threshold of market-rate
units, with actual construction of second dwelling units,
and there would be no need for additional action on the
Affordable Housing Agreement.
The proposal by Continental Homes would allow a
maximum of 20 percent of Inclusionary Housing
requirements to be met through the use of second dwelling
units, which goes along with the second dwelling unit
policy the Housing Commission has already established.
Site Development Plan and the specific location would be
approved prior to the construction of the actual lots.
The Continental proposal would allow final maps for the
entire project--all 1,816 units, which would be 1,544
market-rate units and the 272 affordable units. Builders
could pull 225 building permits on market-rate units
before construction begins on the affordable units; 275
additional building permits could be pulled before the
affordable project is complete. The builders would then
be able to pull an additional 275 building permits as
opposed to 159 building permits (as the City recommends)
for the market-rate units after final inspection is
completed on the affordable project. The developer
would also be allowed to increase the number of market-
rate building permits by six for each second dwelling unit
which is produced, i.e., if they build a second dwelling
unit the total number of market rate units which could be
built would be bumped up by 6 for each one they did.
Prior to issuance of more than 775 building permits, the
Site Development Plan shall also be approved for the
Phase I1 affordable housing project. No more than 1,040
market-rate housing units would be constructed before the
Phase I1 affordable housing would be initiated.
HOUSING COMMISSION MINUTES
January 14,1998
Page 3
Mr. Ruiz stated that this is a summary of the differences as spelled out in a letter the Commissioners received this
evening.
Ms. Fountain added that this is Staffs best effort at summarizing what is contained in the letter. She suggested the
Commissioners read the letter themselves and stated that the applicant can provide further clarification, if necessary.
She said this is a fairly complicated issue.
Chairperson Wellman asked if there were any questions of Staff.
There was some discussion regarding the terminology used in the letter and Mr. Ruiz’s presentation.
At 6:30 PM, the Commission took a 10-minute break to review the additional material presented to them by the
applicant this evening. The meeting was called back to order by Chairperson Wellman at 6:40 PM.
Chairperson Wellman asked if there were any additional questions of Staff.
The Commissioners asked for further clarification by Staff.
Mr. Ruiz stated that Staff has a site development plan which provides an affordable housing proposal for 116 units,
which “buys” the developer 775 units, per the Ordinance that says 15 percent of the project needs to be affordable. The
.applicant’s scenario is to build 272 affordable units to cover the entire project. One thing Staff is concerned about is
having the Affordable Housing Agreement recorded without all of the details of the affordable housing before any final
maps are recorded, which is typically the case. Mr. Ruiz said if all those final maps record, the applicant could get all
the way up to the building permit stage, could have 1,000 units built, and then they could be gone; at which point the
City could be dealing with new developers andor all sorts of new people. He added that there may not be a site for the
affordable projects or there may not be the financing sources that are available today. There are too many unknowns if
you let the project get that far along, he said.
Commissioner Calverley asked about another company buying out Continental and their commitment to the Master
Plan.
Mr. Ruiz responded that any time there is a change in ownership and a change in players, there are time delays and a
re-education process. He added that technically there is an assumed responsibility, but there is also a lot of additional
work that will occur.
Commissioner Calverley commented that if this project changes to six different organizations, they still have a
commitment to the Master Plan as an obligation under the building contract to build so many units, etc.
Ms. Fountain responded that whenever Staff takes an Affordable Housing Agreement forward, they want it to be very
specific--what is it doing, where is it going, what it is going to look like, etc. In the past, what Staff has always tried to
do is take a Site Development Plan forward with the Affordable Housing Agreement with all the specifics spelled out.
The specifics of this Agreement allow for a 116-unit affordable apartment project where the size and design of the
project are specified. With these specifics on the 116 affordable units, Staff has determined that the total number of
’housing units which the developer should be allowed to build is 775 because the developer has to provide 15 percent of
the total housing units in affordable units. Staff recognizes that the Master Plan is more than 775 units. The way it
would work is as soon as the developer has the Site Development Plan is for the second part of their affordable
housing, Staff would amend their affordable housing agreement to increase the number of units they could get in terms
of market-rate units. Once the Affordable Housing Agreement is executed, the maps can be finaled for the total
number of housing units that are recorded in that agreement. The difference between the two is the City will only
HOUSING COMMISSION MINUTES
January 14, 1998
Page 4
allow Continental Homes to final maps for 775 housing units. Under the developer agreement, they would be able to
final maps for all 1,800 units. This would enable them to sell the property, have the builders come in and do the work.
Staff understands the developer concern about not being able to final all the maps for all the housing units, but Staff
feels it important to have specifics on the other parts of the affordable housing and how they will satisfy their
requirement before the developer is allowed to do this. Staffs preference, therefore, is to set the agreement up so that
it only deals with what the developer is actually allowed to do with these 116 affordable units. She said Staff would be
happy to come back as soon as the applicant has their second phase designed to amend the agreement. Ms. Fountain
said that the big issue for the developers is being able to final all the maps.
Ms. Fountain added it has always been Staffs position to try to make the Affordable Housing Agreement as tight as
possible spelling out all the specifics. The developer says this does not work for them and they are asking the Housing
'Commission to do something different and allow them to record the whole Agreement, be able to final all their maps,
and then when they start getting ready to pull their building permits, they would do the remaining amount of work that
they have to do on the second dwelling units or the second phase of the affordable. Ms. Fountain said that the Housing
Commission could decide that in general concept this is okay and agree with the developers.
Commissioner Scarpelli mentioned that the developer will be coming back because the Housing Commission will still
have to approve whatever inclusionary housing they will be adding to the 1 16 units that are known at this point in time.
It appears that all the developer is asking for is the right to final his map and provide 20 percent of the units of
affordable housing, of which 116 units will be in Village B. The City will not accept anything that is not appropriate
for the other affordable units, he said.
Ms. Fountain responded that these are complicated issues that are hard to understand. In terms of being able to final a
map means that the developer can then go sell those properties to builders, then the City would be working directly
with the builders in terms of meeting their affordable housing unit requirement at that point in time. If that is
acceptable to the Housing Commission, that is fine; but it starts to create more of an uncertainty as to whether or not
you are going to get what you want to get. Just because it is in the Agreement, does not mean that somebody at a
future date is not going to come in and try to renegotiate it, she said.
Commissioner Scarpelli said that the position of the Housing Commission will be to follow the Agreement because
there is an ordinance that says 20 percent of the housing has to be affordable. Second, the present developer could do
the same thing and try to renegotiate. Commissioner Scarpelli added that unduly tying the hands of the developer
could make it harder to get affordable housing units in the City, and said this project's developers are very reputable.
Commissioner Noble stated that the Housing Commission may need to issue conditions that the developer must
designate and ensure that there will be 272 affordable housing units built in this project by a certain date and before the
last permit is pulled to build the last Village.
Ms. Fountain responded the City requires Site Development Plans so they know that the developer can get the number
of units that they say they can get on site. Many times a developer thinks they can build a certain number of units, then'
after design and site planning, they find out they cannot. Staffs comfort is always with the Site Development Plan
because of the specifics, and this is what Staff likes to see to indicate the specifics for the Affordable Housing
Agreement, she said.
Chairperson Wellman invited the applicant to speak.
Chris Chambers, Continental Homes, 12636 High Bluff Drive, San Diego, addressed Chairperson Wellman and asked
for suggestions on how to proceed.
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January 14,1998
Page 5
.Chairperson Wellman responded that the Housing Commission is prepared on the original presentation of the Staff
report with the 116-unit affordable proposal and asked that Mr. Chambers start with this and go from there.
Mr. Chambers introduced Mike Galasso of Barone, Galasso, and Associates; and Carlos Rodriguez, project architect.
Michael Galasso of Barone, Galasso, and Associates addressed the Commission and thanked the Commission for
scheduling this Special Meeting for them, and mentioned that they have had a very tight schedule fkom a financing
standpoint to make this project happen. He said he would like Carlos Rodriguez to go over the project plans.
Mr. Galasso mentioned that Mr. Rodriguez has been and is an architect on other affordable housing projects in the City
of Carlsbad, such as Laurel Tree.
Carlos Rodriguez, Rodriguez Design Associates, 1770 Fourth Avenue, San Diego, addressed the Commission starting
with the site plan. He said there are a variety of floor plan designs, including one-, two-, and three-bedroom units,
varying from 700 square feet up to 1,127 square feet. He said they are designed for families and feature large living
rooms, patio and balcony space, and walk-in closets. He said they pay attention to the space in between the buildings
as well as the floor plan design.
Mr. Rodriguez said that this is an unusual piece of property because it is at the intersection of two major roads-
Palomar Airport Road and Melrose Road--with a substantial setback requirement on both sides (each setback is about
50 feet). Mr. Rodriguez said that as an architect this proved to be a real challenge to him because he wanted to
maintain as much open space for the living units as possible. He said one of the things they decided to do was to
consolidate the open space in one large area, allowing two things: (1) designate a very clear path for cars and vehicles
as they enter the site; and (2) identify very clearly the pedestrian walkways so that tenants moving through the site
'would not be impacted by the cars once they are parked. The applicant is proposing a gated entrance with landscaping.
Mr. Rodriguez described the site with a recreation center, handicapped parking, swimming pool, two laundry facilities
(with about 10 washers and dryers at each site), and outdoor space through a series of courtyards. He said that the
placement of the car ports open up the visibility of the units, and added that the minimum distance between buildings is
15 feet even though the Uniform Building Code allows 10 feet between buildings. He added the project will be
designed with a variety of colors and elevations, and said that they are picking up a lot of the architectural elements
from the Old California style--the old Rancho Carrillo building.
Mr. Rodriguez said that it is important that the affordable housing project be integrated with the rest of the community,
and said they are proposing a pedestrian path that would run between the parcels linking them together out to Melrose
and eventually a pedestrian link to Palomar Airport Road.
h4r. Rodriguez showed an example of one of the apartment units and explained what he does to help break up high
density units, one being the roof design, another being the use of color.
Michael Galasso addressed the Commission and said that when they started working on this project, Continental
wanted to make sure that they would be able to fit the requirement for the affordable housing on Parcel B, so they did a
complete study of Parcel B at that time.
Commissioner Rose asked about the unit mix.
.Mr. Galasso responded that there are 12 one bedrooms, 48 two bedrooms, and 56 three bedrooms.
Chairperson Wellman asked to see the design of the car ports.
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January 14, 1998
Page 6
Mr. Rodriguez described how the car ports will be designed and went into detail why he designed them the way he did.
He said that all the storage is inside the units because there tends to be vandalism problems with storage units in car
ports.
Chairperson Wellman asked about the size of the affordable site.
Mr. Rodriguez responded that it is about 17 units per acre and the site is 6.7 acres.
Commissioner Escobedo complimented Mr. Rodriguez’s work on the Mercado project.
Chairperson Wellman asked about the slope from Palomar Airport Road going to the south.
.Mr. Rodriguez said there will be some vertical differences between the pads, but they will not be enormous. He said
that 12 to 24 inches makes a big difference and actually helps.
Klaus Mendenhall, Housing Opportunities, addressed the Commission and said that he wanted to clarify a couple of
things on the Site Plan because of some comments that were made earlier. Regarding the comment that “the site may
not be available for affordable housing at a later date,” Mr. Mendenhall said that Continental Homes is processing and
designating the total area of Village B for affordable housing. He said there is a restriction on that site that will place
240 units, plus or minus, and second dwelling units will encompass the balance of their 272-unit requirement. The 6.7
acres is only a portion of the total Village. There are two future sites, he said. Mr. Mendenhall said there are 14 acres
total designated for affordable housing.
Chairperson Wellman asked for clarification of the dedication of the rest of Lot B for affordable housing--whether it is
being proposed or if it actually is on the City records.
Mr. Chambers addressed the Commission on this issue and stated that one of the points that Mr. Ruiz made was that in
the future there may not be a site available for the affordable housing project and that we are approving one only
portion of an overall scheme. The point of Continental’s request is that they have a single comprehensive document
that will be able to be self-executing as the Master Plan proceeds. When the Master Plan was approved--not any
tentative maps, but at the very first point when the entire Master Plan was approved by the City Council--one of the
things Continental Homes had to designate in order to get the Master Plan approved was where they will be putting the
affordable housing. In answer to Chairperson Wellman’s question, Mr. Chambers said that Parcel B has been
designated as the affordable housing site. Unless the applicant goes back and requests a different location, that site is
going to be preserved for this use. Mr. Chambers added that looking at the document they proposed, it does say that
The applicant is proposing to develop affordable housing in Village B in two phases, and it identifies the number in
those two phases, plus 54 units (the 20 percent number) as second dwelling units. This agreement encapsulates all of
the affordable housing that could happen in the future, he said.
Mr. Chambers said that the applicant originally spoke with Evan Becker on this project, and he thought phasing the
affordable housing was a good idea. In order to get the City to even allow the applicant to go with the phasing, the
applicant came in with a site plan, which Staff and the planning and engineering staffs looked at and had to feel
comfortable that the applicant could get that number of units on that Village in order to allow to proceed to the next
phasing. Going back to the origination of this project, it was perceived by the then Staff of the City, that the project
would go forward as a phased project. It was not until Debbie Fountain and Craig Ruiz took over that the position of
the city changed and staff no longer supported the phased plan.
Mr. Chambers said that the crucial difference between their position and Staffs position is that they agree on the caps
and agree that it makes sense, but the City is taking the very strictest definition of the term “concurrent in terms of
construction of the affordable units.” The Inclusionary Housing Ordinance states that you have to concurrently
HOUSING COMMISSION MINUTES
January 14,1998
Page 7
produce affordable housing as you are producing your market-rate housing. What the City is saying, according to Mr.
Chambers, is that what the applicant feels is affordable housing is not only the houses but the land that the houses sit
-on. Mr. Chambers said they agree that building permits should not be issued until there are Site Development Plans for
second dwelling units or for a rental project that will allow or “buy” the right to pull the permits. What the City’s
position right now does, said Mr. Chambers, is effectively place a moratorium on developing the balance of the
applicant’s community. Mr. Chambers commented on Mr. Ruiz’s statement that “if we allow Rancho Carrillo to
continue to develop maps, too much land might get developed on-site there.” Mr. Chambers said looking at the map
right now, in fact, that condition has already happened. He said that Villages A, B, C, D, H, J, and Q1 comprise 660
market-rate units.
Chairperson Wellman commented that with the proposal tonight, building the 1 16-unit affordable project, market-rate
units could be built in the Villages just mentioned.
Mr. Chambers responded that they could pull building permits for those. With the City’s proposal, according to
Mr. Chambers, the applicant could not develop any of this land. Villages 0, M, and L are already developed, meaning
“horizontally constructed” or changing the land form by grading, putting in the water, storm drains and sewers, the
streets, etc. Mr. Chambers said that when he uses the word “development,” he is referring to this type of work. The
difference between land development and vertical construction is building homes. The applicant agrees with Staff that
they cannot build those homes until there is an approved Site Development Plan for all of the affordable housing, or as
much as they can “buy.” The difference is that the applicant cannot record maps, and if they cannot record maps, they
cannot “develop” the land.
Chairperson Wellman asked if the applicant could develop Phase I1 or the rest of affordable units as presented tonight,
according to the City’s position.
Mr. Chambers responded that they could if they came back in with another Housing Agreement, processed another Site
Development Plan, and had another Financing Agreement. The main difference is that the applicant would have to go
back through an entire lengthy process which would require the applicant to identify a second phase today for Village
B without knowing what will be needed over the next two to three years. Should it be a 80 percent project? Should it
be a project just like this? Should it be a for-sale project? In order to develop this land, Mr. Chambers said the
applicant will have to answer these questions right now, which would be premature in his opinion.
Rancho Carrillo is the first Master Plan, to his knowledge, to come forward under the Inclusionary Housing Ordinance.
So far, most of what the Housing Commission has been dealing with are final maps on a project by project basis. The
way the Ordinance is drafted, it says you have to have your Housing Agreement in place before you can record a fmal
map. That has been the City’s position because they have not been confronted with a Master Plan yet, said
Mr. Chambers. He said this makes perfect sense, because if the applicant comes in with one project, the City wants to
make “damn sure” that a Site Development Plan works on that project, or that there is an alternative site, or some other
means of satisfying the affordable housing requirement. That works well for a single project, he said. What it does for
a major project, though, is place a moratorium on development. He said that if one reads through the Inclusionary
Housing Ordinance, it speaks about the components of the Affordable Housing Agreement, and it says it should
designate the location of the affordable housing site. It does not say “site development plan”--it says “designate the
location.” That is exactly what the applicant has done, according to Mr. Chambers. It is exactly what the Agreement
says, and it is a perfect way of allowing the project to be developed, allowing the applicant to continue in a normal
development cycle and to continue to meet the hurdles and thresholds for providing affordable housing while going
through the process. The very important distinction between land development and vertical construction is that it takes
sometimes a year to two years to get this land ready.
Mr. Chambers pointed out where they have built a road as required by the City’s Growth Management Ordinance. The
residences will use anywhere from 28 percent to 18 percent of this road and will bare the entire cost of this $20 million
.-
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January 14, 1998
Page 8
Road. He pointed out another area which would have been graded except for an arrangement they made with the City
to comply with some environmental concerns. To allow some of the City’s projects to go forward, they did not grade
this area.
Commissioner Rose asked how many years it will take until the last units are completed?
Mr. Chambers responded that there are 1,800 units. He said that today the master plan communities like Rancho
Carrillo--Scripps Ranch Villages, Rancho Del Rey in Chula Vista--are selling between 400 and 500 units a year. It
could be as few as four years or could be as many of eight, and a couple of years ago it was half that number.
Commissioner Rose commented this could take four, five, or maybe ten years; and in this time rules and laws change,
and the dollar value changes. He asked why the applicant wants a Master Plan now which would tie them down to
something that they may not be able to deliver down the road because of these changes.
-Mr. Chambers responded that the market is good right now and as soon as the land is available they can start
recovering the significant investment they have made in the community. Mr. Chambers added that Continental Homes
is dedicating-giving up--$3 million worth of land and writing a check for $1.2 to $1.5 million in order to do this 1 16-
unit apartment project. He said they have to sell a lot of land and build a lot of homes to make $4.5 million. He added
that all the applicant is asking for is permission to proceed with the Master Plan so they can keep the process going-so
they can keep selling to builders. Mr. Chambers commented that Mr. Ruiz said, “maybe they will sell to a bunch of
builders.” He pointed out that the applicant has agreed with the caps and said that nobody will buy anything if they
cannot build on it. The protection is built into the agreement, he said. The applicant has to process a Site Development
Plan, make sure it is financed, and then can continue.
Commissioner Schlehuber commented that the process would be for the applicant to develop the land and sell the land
to the builders to build the houses. He said there is a world of difference between just having the land set aside and
actually getting a multi-family built. Every builder is going to have a commitment to produce some units according to
the track(s) that they purchase, he added.
Mr. Chambers said that is not the way their purchase agreements read. He said the master developer is responsible for
the affordable housing and the covenants cover all the property. It should only get released as homes are built and
affordable housing is built, he said.
Commissioner Scarpelli mentioned the way the Aviara Master Plan was handled. He said that what the developer is
requesting is the ability to do business in a proper and efficient manner. He added that it appears the land is set aside
and asked Staff to confirm that the land is set aside for affordable housing. The developer is saying that Village B,
made up of three phases, has been set aside to meet the affordable housing for the total number of housing units
anticipated for this development.
Mr. Chambers responded that in the Inclusionary Ordinance there is an entire section that applies to master plans. It
says “prior to the approval of the Master Plan, you have to designate your site,” which they have done.
Commissioner Noble said that one thing where the applicant differs with the City’s position is that the developer would
be allowed to increase the number of market-rate building permits by six for each second dwelling unit produced. He
asked where this number came &om.
Mr. Chambers responded that this is the other huge difference between their proposed agreement and that of Staffs.
Up until two weeks ago, if you account for the holidays, they have been passing drafts back and forth which have been
reviewed by Staff, reviewed by in-house council for the City, and reviewed by outside legal council for the City--and in
HOUSING COMMISSION MINUTES
January 14,1998
Page 9
all of those drafts the applicant has proposed using second dwelling units as part of their satisfaction of the Inclusionary
Housing Ordinance. All of a sudden at the end of this last year, that whole concept disappears, he said.
Commissioner Noble asked why the applicant is asking to build six additional market units for each second dwelling
unit constructed.
Mr. Chambers responded that actually the number should be 8- 1/2 because it is 15 percent for every unit you build, and
second dwelling units count as affordable housing units. Staff has told Mr. Chambers, who does not understand the
logic behind it, that the number should be six. Mr. Chambers feels it should be 8-1/2.
Commissioner Noble asked for further clarification of this philosophy.
Mr. Chambers said that the Agreement does set forth a certain limit on both the multi-family housing and on the
number of second dwelling units. The number of second dwelling units is capped per the Agreement of 20 percent,
which is 54 total. If the applicant builds all 54, they have satisfied their requirement for 300 plus market-rate units--80
percent is satisfied with the rental project, 20 percent is satisfied with second dwelling units.
Chairperson Wellman asked if the Master Plan indicates where the second dwelling units will be located?
Mr. Chambers responded that it does. He said that when they started developing, they said, “where are our longest lots
located in the community?” and decided these would be the lots where the homes would be big enough to comfortably
accommodate second dwelling units. He showed the Commissioners how they have allocated among the various
Villages the 54 second dwelling units. He said they accept the proposal by Staff in order to get any additional units,
they would have to have a Site Development Plan approved prior to (1) constructing the second dwelling units and (2)
prior to it being used to satisfy any of their inclusionary housing requirements.
€hairperson Wellman asked if the applicant can indicate the physical location of the four lots in Village G, for
example, and what the units will look like.
Mr. Chambers responded no, that this happens with the Site Development Plan.
Chairperson Wellman asked if all the Villages, with the number of lots and their size, ,etc. has gone through Planning
and been approved by the Planning Commission.
Mr. Chambers responded that some have and some have not.
Chairperson Wellman asked if the applicant is asking the Housing Commission to approve these numbers without
actually seeing where they are going to be in each Village and without fmal determination from the Planning
Commission.
Mr. Chambers responded affirmatively. He said that Village G has not been constructed yet. He said that when the
applicant sold the land to the builders of the first phase--H, J, Q1--they told the builders that they had to build a certain
number of second dwelling units. The applicant informed them that they had to go through the City’s planning process
before they can build their project.
Chairperson Wellman asked for further clarification.
Mr. Chambers responded that the 660 number that is being proposed would be increased by six units. For example, if
the builder in H had his seven units approved by the Planning Commission to take to Site Development Plan for second
dwelling units within H, that would allow the applicant to increase or pull another 42 building permits (7 x 6).
HOUSING COMMISSION MINUTES
January 14,1998
Page 10
Chairperson Wellman responded that the applicant is asking the Housing Commission to make a judgment tonight that
the 20 percent or 54 affordable units to be in second dwelling units.
Mr. Chambers responded affirmatively and said this is in their Agreement. He added that the process would be no
different from what the Housing Commission has approved for builders in the past who want to build second dwelling
units. They will come to the Housing Commission later and say here’s what we are proposing, here’s the square
footage, here’s the bedroom count, here’s how they lay out, and here are the lots that we want to build them on.
Commissioner Noble asked Mr. Chambers if they will have to come back to the Planning and Housing Commissions as
the site plans are sent in as they develop the other Villages.
Mr. Chambers responded that any second dwelling units will have to come back before the Commission.
Commissioner Noble commented that he has never seen a Master Plan that hasn’t been changed. He said there has not
been one Master Plan that has come before the City that has been approved for X number of houses that has built that
number of houses.
Mr. Chambers said that all of these things will require the Commission to take a look at them again. He added that it is
really a matter whether the Housing Commission wants to see an Affordable Housing Agreement for every Site
Development Plan for the second phase of the rental project and go through the whole process again. He said the Site
Development Plan will continue as the Master Plan evolves. Mr. Chambers said that the Housing Commission will
have the opportunity of approving every step along the way for the second dwelling units.
Chairperson Wellman commented that it appears by their letter that the applicant wants to “stream-line” this process by
bypassing the Housing Commission.
Mr. Chamber said the second sentence in the second paragraph of the Affordable Housing Agreement says “a
comprehensive draft also makes the process more efficient for the developers, Staff, Commissions, and City Council in
that it would require only one hearing on one Affordable Housing Agreement. Of course, a Phase I1 Site Development
Plan and Finance Plan would be processed separately.” Mr. Chambers added that if the Housing Commission does not
agree with what is being proposed, no further homes get built in Rancho Carrillo. He said they will have to come to an
agreement with the City because they will have 100 million dollars tied up with this project. They will not let a Site
Development Plan for one house prevent them from building six. Mr. Chambers added that they will try to work these
things out with the Housing Commission and the Staff.
Chairperson Wellman asked how far the walk to the park or to the school is in the 116-unit affordable project. She
asked if there were walking trails or if kids had to walk on a road.
Mr. Chambers responded that there is no trail directly from the affordable units and added that the park is about a mile
from the project.
Commissioner Noble asked if the applicant gets their request and increases the number of market-rate building permits
by six for each second dwelling unit produced, will it result in an increase in the number of houses the applicant has
planned at this time.
Mr. Chambers responded negatively.
Ms. Fountain added some clarification and said that the applicant is talking about the rate at which they can pull
building permits for market-rate units.
HOUSING COMMISSION MINUTES
January 14, 1998
Page 11
Chairperson Wellman asked if there were any additional speakers or if Mr. Chambers had more to say.
Mr. Chambers said that they are requesting that the threshold go from 659 market-rate units to 775 market-rate units.
He said that Mr. Ruiz can provide a very specific application of the formula that shows this is 15 percent of market-rate
.units; or as affordable units are produced the applicant gets 85 percent, which is 659. Mr. Chambers said “let’s not be
so strict” on the interpretation of what “concurrent” means. From a development standpoint and from the economic
and market realities of a Master Plan, this concept--a comprehensive plan where everybody knows what the rules are
going in--is really fair for all parties, and in the end it is going to be more efficient for the City and the applicant., said
Mr. Chambers.
Commissioner Rose asked if Mr. Chambers agrees that nine times out of ten that the applicant will want to change the
composition of the housing.
Mr. Chambers said he didn’t think so and said they will probably come back on the balance of Village B and ask for
the project to be approved. He said what he does not know today is whether or not it is going to be a rental project, a
for-sale project, or an 80 percent of market-rate project. He added that they may get input from school teachers , police
officers, and fireman in Carlsbad who cannot afford to live in Carlsbad and would like something at 80 percent because
they want to live in Rancho Carrillo. The location will not change. The community is being built designating “B” as
the affordable project.
Chairperson Wellman asked if the Housing Commission does not approve the Agreement proposed by Continental
Homes, if the applicant still wants the Housing Commission to consider the request to build the 116 affordable units.
Mr. Chambers said they need to get the Affordable Housing Agreement through the process; so they would ask at the
very least that the proposal before the Housing Commission be approved or recommended to the City Council. The
second preference would be that it is sent along with the recommendations discussed this evening. The first preference
would be that the Housing Commission direct Staff to modify the Resolution and the Agreement to incorporate the
’applicant’s changes.
There being no other persons desiring to address the Commission on this topic, Chairperson Wellman declared the
public testimony closed and opened the item for discussion among the Commission members. Chairperson Wellman
suggested commenting on the 116-unit project first, then discussing the Agreement as submitted by Staff, then
discussing the letter from the applicant along with their proposed revisions.
There was discussion among the Commissioners regarding this project and the need for affordable housing in the City
of Carlsbad. Many of the Commissioners do not want “to tie the hands” of the developers to the point where the City
may not be able to accomplish their affordable housing goals.
Commissioner Scarpelli commented that what he thinks he heard from Staff was that the City did not have a guaranteed
protection that sufficient parcels were available to build out the additional number of units for the overall build-out of
the project. What he thinks he heard from the developer was that Parcel B has been designated for the total build-out of
the Master Plan plus the second dwelling units. He added that unless he hears differently from Staff, he is in agreement
with the revisions set forth in the Agreement with the developer and urged the Commission to do the same. He said
that the developer has met all of the requirements under the inclusionary housing requirement on the second dwelling
units. They are not asking for anything other than what they have a right to achieve under the Second Dwelling Unit
Ordinance and the Inclusionary Housing Ordinance, he said. In addition, Commissioner Scarpelli thinks it will be
more efficient to operate as the developer has explained it. He said it is not necessary to tie up Staff time a second time
regarding the Agreement. He said Staff and Commission time will be tied up on each of the sites as they meet the
affordable housing requirement, Le., the builders who will come in to present their second dwelling units, etc. He does
HOUSING COMMISSION MINUTES
January 14, 1998
Page 12
not think the Housing Commission has lost any control and thinks there is plenty of opportunity to say they do or do
not like something.
Commissioner Noble commented that a Master Plan should be considered as a “beefed-up outline” that changes based
on needs of the community. He suggested voting on the Resolution and making a Minute Motion on the proposed
changes.
Chairperson Wellman asked for comments from Staff.
Mr. Ruiz apologized for a statement he made earlier in the evening if it was not clear. When he said “maybe in the
future there might not be a sight for this,” Mr. Ruiz said he should have said, “Staff has a firm plan for 116 units. Yes
they have drawn some lines on the site what would allow possibly more apartment units. But until you have an
approved Site Development Plan, you just have those lines. What happens in the future, we don’t know. That’s the
plan today, but until it gets approved, it really doesn’t hold the value.” Mr. Ruiz said the question was raised whether
Village B was reserved to satisfy the applicant’s Inclusionary Housing. He said that no, it is not. Right now there
could be a total of 240 units. If you allow a portion of that to be affordable units, and allow 58 second dwelling units, a
portion of this site has the potential to be market-rate; so the whole site is not being set aside for affordable units.
The other point Mr. Ruiz wanted to make is that Staff does not know what the economics of the future are. Once upon
a time this project’s affordable requirement was going to be Villages E and F with townhouses and condominiums.
This is no longer feasible whether it be liability insurance, grading concerns, etc. The economic reality has changed.
Today the reality is there is a tax credit program. Staffs concern is they do not know what is going to happen in the
future.
Ms. Fountain commented that normally when Staff brings a Site Development Plan and Affordable Housing
Agreement to the Housing Commission, they. both tie together in terms of the number of units that are in the Affordable
Housing Agreement and the number of units in the Site Development Plan. This is the general policy that Staff has
been following that these should tie together. Ms. Fountain agreed that this is an unique situation and something
different, which may require a different policy decision. She added that Staff is bringing forward to the Commission
how they normally treat all the affordable housing projects where the Affordable Housing Agreement is tied to a
specific Site Development Plan. Staff wants the Agreement to be very specific as to how many total housing units the
Agreement entitles the applicant to. This does not mean Staff disagrees with the developer that second dwelling units
are okay to be used to meet the inclusionary housing requirement; in fact, Staff supports the developer’s second phase
of development. Staff feels, however, that at this point in time all the Agreement should cover is what the applicant is
saying they are going to do in the Site Development Plan. Staff is not disagreeing or backing away from the original
negotiation, but tightening up the Agreement to say it should only cover the total number of housing units applicant is
entitled by the Ordinance according to what they said they are going to provide. This does not mean that Staff does not
support 54 second dwelling units or the other 102 units; but simply that Staff would like to see them before entering
into an Affordable Housing Agreement.
MS. Fountain commented that on “concurrence” the real extreme position is for every six market-rate units produced,
one affordable housing unit is produced. Ms. Fountain said that through negotiations Staff tried to come up with
something that seemed more reasonable. The developer said they agreed with this but they did not agree with the total
amount in terms of limiting them to the 659 units--they wanted to go a little bit higher than that.
Ms. Fountain reminded the Commission that this is a policy decision and the Housing Commission has within its power
the ability to recommend something different from what Staff normally would bring forward to them and how they
would normally process the item. Because this is the first Master Plan before the Commission, if the Housing
Commission believes it is unique and should be approved, then the Housing Commission should make a this
recommendation to the Council, and Staff would take that forward and explain those positions. Ms. Fountain said
-
HOUSING COMMISSION MINUTES
January 14, 1998
Page 13
again that she would like to make it clear that this is different than the way they normally have done things. To be
consistent with the inclusionary housing ordinance, the agreement needs to include specifics on the affordable housing
Without the Site Development Plan, there are no specifics for the additional affordable housing.
Commissioner Scarpelli commented that Ms. Fountain mentioned the Housing Commission is dealing with a unique
situation because this is a Master Plan Community. In the past, the Housing Commission has been dealing with builders
coming before the Commission for approval that they are meeting their inclusionary housing requirements. He added
'that the uniqueness of this Master Plan Community allows the Housing Commission to expand their thinking by giving
a Master Plan developer the opportunity to meet all the requirements, which in this particular case they have, in his
opinion. He said the developer will sign an agreement with the City that says they will comply with the 15 percent
Inclusionary Housing and they will comply with the 20 percent Second Dwelling Unit Ordinance. He added that the
Housing Commission should not expect to see site plans with master development because the site plans are too far
ahead of the major development yet the ordinances are requiring that the developers provide affordable housing. He
suggested looking at the uniqueness of the Master Plan Community and dealing with it accordingly.
ACTION: Motion by Commissioner Noble, and duly seconded, that the Housing Commission ADOPT
Resolution No. 98-001, recommending APPROVAL to the City Council of an Affordable
Housing Agreement and Site Development Plan SDP 97-15 for the construction 116
affordable apartment units in order to satisfy the requirements of the Inclusionary Housing
Ordinance in Village B of the first phase of development in the Rancho Carrillo Master Plan.
Calverley, Escobedo, Latas, Noble, Rose, Scarpelli, Schlehuber, Wellman
VOTE: 8-0-0
AYES:
NOES: None
ABSTAIN: None
ACTION: Minute Motion by Commissioner Scarpelli, and duly seconded, that the Housing
Commission recommend to the City Council that the revisions as requested by the developer
of the Master Plan be accommodated on the basis that it is a Master Plan and the fact that
they are in accordance with all of the requirements of the City of Carlsbad's Inclusionary
Housing Ordinance.
Calverley, Escobedo, Latas, Noble, Scarpelli, Schlehuber
VOTE: 6-2-0
AYES:
NOES: Rose, Wellman
ABSTAIN: None
ANNOUNCEMENTS: Next scheduled meeting Thursday, February 12, 1998.
ADJOURNMENT:
By proper motion, the Special Meeting of January 14, 1998, was adjourned at 8:40 PM.
Respectfully submitted, n u+ DEBBIE FOUNTAIN
Housing and Redevelopment Director
HOUSING COMMISSION MINUTES
January 14,1998
Page 14
KATHY VAN PELT
Minutes Clerk
MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE APPROVED.
I The Ci@ of Cadsbad Housing &'Redevelopment Department
A REPORT TO THE HOUSING COMMISSION
I Stafl Craig D. Ruiz 1 Manapement Anaivst
DATE: JANUARY 14,1998
SUBJECT: SDP 97-15 RANCHO CAFUULLO VILLAGE B PHASE I -
REQUEST FOR RECOMMENDATION OF APPROVAL TO THE
CITY COUNCIL OF AN AFFORDABLE HOUSING AGREEMENT
AND SITE DEVELOPMENT PLAN FOR THE CONSTRUCTION OF
116 AFFORDABLE APARTMENT UNITS IN VILLAGE B TO
SATISFY THE INCLUSIONARY HOUSING REQUIREMENTS FOR
PHASE ONE OF THE RANCHO CARRILLO MASTER PLAN.
I.
11.
RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 98-00 1, recommending
APPROVAL to the City Council of an Affordable Housing Agreement and Site
Development Plan SDP 97- 15 for the construction of 1 16 affordable apartment units in
order to satisfy the requirements of the Inclusionary Housing Ordinance in Village B of
the first phase of development in the Rancho Carrillo Master Plan.
PROJECT BACKGROUND
The Rancho Carrillo Master Plan was approved by City Council on October 2 1 , 1997.
The purpose of the Master Plan is to provide for the orderly development of the Rancho
Carrillo site, while preserving the environmental resources of the area. For planning
purposes, the Rancho Carrillo Master Plan is divided into 19 villages. The Master Plan
identified the allowable type and intensity of land uses in each village and provides
general development and design standards, requirements, and the method by which the
Rancho Carrillo Master Plan will be implemented.
Pursuant to the City's Inclusionary Housing Ordinance, 15% of the base dwelling units
in the Master Plan must be provided for lower income households. The Affordable
Housing Agreement for the Rancho Carrillo Master Plan establishes the phasing and
development of the inclusionary housing for the Master Plan pursuant to Chapter 21.85
of the City of Carlsbad Zoning Ordinance, Inclusionary Housing. The subject site
development plan (97- 15) ensures consistency with the applicable affordable housing
agreement and provides the inclusionary housing for the first phase of development of
the entire Master Plan area.
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The Rancho Carrillo Master Plan is estimated to include a total of 1816 total housing
units. Of these 1 8 16 units, a total of 272 units must be affordable to households at 80%
of the San Diego County Median Income. This means that Continental Homes may
eventually build a total of 1544 market rate and 272 affordable housing units. However,
since the final number of housing units to be constructed remains only an estimate,
Continental Homes has proposed to initially complete 1 16 affordable housing units
within a multi-family housing project to be constructed in Village B. The proposed 116
affordable units in Village B will satisfy the inclusionary requirements for the first phase
of the Master Plan. Additional affordable housing units may be constructed at a later
date in the remainder of Village B, or elsewhere within the Rancho Carrillo Master Plan.
The total number of affordable units to be constructed will be based on the total number
of units ultimately approved for development in the Rancho Carrillo Master Plan. The
construction of additional affordable units in Village B will require an amendment to
SDP 97-15, or an additional site development plan will be required if another site is
selected for the affordable housing.
Approval of the 116 unit affordable housing rental project (SDP 97-15) will allow
Continental Homes to construct a total of 775 housing units within the Rancho Carrillo
Master Plan. Of these 775 units, 659 will be market rate units and 1 16 will be affordable
to lower income households. The required timing for construction of the first phase (1 16
units) of affordable housing will be directly related to the total number of market rate
units (659) to be constructed.
The Phase I Affordable Housing Agreement with Continental Homes is attached for
review by the Housing Commission. This agreement will be amended at a later date to
include the approved Phase 2 affordable housing and to allow for a maximum of 1816
total housing units within the Master Plan, if this total number of units is ultimately
approved for the area. Phase 2 of the affordable housing will most likely include 102
additional units of multi-family housing and 54 second dwelling units. Additional
details on the remaining affordable housing will be provided at a future date.
111. PROJECT DESCRIPTION
A. Location
Village B is located adjacent to Palomar Airport Road and the future Melrose Drive in
the Rancho Carrillo Master Plan. The affordable units will be located on Lot 207 as
shown on the proposed Tentative Map CT 97-02 (See attached Exhibit 4).
B. Unit Mix
The proposed 116 unit affordable apartment project consists of thirteen separate
residential structures, a recreation building and accessory uses. The proposed
development includes twelve 723 square foot one bedroom (1 O%), forty eight 908 square
foot two bedroom (41%) and fifty six 1,127 square foot three bedroom units (49%).
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C. Other Features and Amenities
The project will feature a 2,235 square foot recreation building, laundry facilities; a “tot-
lot” with playground equipment; a swimming pool; a 286 square foot maintenance
building; and 267 parking spaces.
Iv. DEVELOPMENT TEAM
The affordable housing developer is Carlsbad Family Housing Partnership. The
Partnership consists of Barone Galasso and Associates, a for-profit affordable housing
developer and Housing Opportunities Inc. (HOI), an non-profit affordable housing
developer. The Partnership developed and operates a 60 unit affordable project in La
Mesa which is similar in nature to the proposed project in terms of affordability
financing sources. The developers have experience in developing and managing
affordable projects throughout California. The Architect for the project is Rodriguez
Design Associates. This architect has designed the Laurel Tree Affordable Apartment
Project as well as numerous other affordable housing projects. The engineer for the
project is Rick Engineering.
v. SITE
A. Site Control
The site is currently owned by Continental Homes, the developer of the Rancho Carrillo
Master Plan. The site will be contributed to the affordable housing developer as part of
the financial contribution to the affordable project by the master developer.
B. LandCost
The site is valued at approximately $3.123 million. The cost of the land will be verified
through an appraisal at a later date.
C. Site Characteristics
Village B is located in the Rancho Carrillo Master Plan adjacent to Palomar Airport
Road and the future Melrose Drive. Currently, the subject property and surrounding
property are vacant, but have been graded. The property to the south will be developed
with multifamily units, while the property to the east will be developed with duplex
units. Palomar Airport Road will separate this site from future non-residential
development to the north.
The proposed inclusionary units will be within close proximity (approximately !4 mile)
of an elementary school that will be constructed by the San Marcos School District in
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Village S. The Carrillo Ranch Community Park is located just to the south of the school.
Village B is also in close proximity of existing and future employment opportunities in
the industrial corridor on the north side of Palomar Airport Road. In addition, residents
of Village B will be able to utilize existing and future bus service on Palomar Airport
Road and Melrose Drive.
VI. AFFORDABILITY
A. Rent and Income Levels
The 116 affordable units in Village B will be restricted and affordable to households
with incomes not exceeding 80% of the area median (AMI). The affordable housing
developer, Carlsbad Family Housing Partnership, is seeking to finance the project in part
through the use of tax credit bonds issued by the California Housing Finance Agency
(CHFA). The affordability requirements of CHFA are more stringent than the City’s
Inclusionary Housing Ordinance. CHFA will require that 20% of the units be restricted
to 50% of AMI, 40% at 60% of AMI and 40% at 80% of AMI. Therefore, the project
will ultimately be much more affordable than required by the City’s Inclusionary
Housing Ordinance.
B. Target Population
The affordable units will be targeted to lower-income families. With a growing number
of lower-income jobs in Carlsbad, there is a significant demand for affordable housing
for families which will improve the jobdhousing balance. Approximately 56 (48%) of
the 116 units will be three bedroom units to serve the needs of larger low income
households.
C. Terms of Affordability
The Affordable Housing Agreement will be executed with the developer to ensure the
affordability for the project’s useful life or 55 years, as required by the City’s
Inclusionary Housing Ordinance.
D. Housing ElementlConsolidated Plan Consistency
The proposed 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 of Carlsbad’s Consolidated Plan identifies housing opportunities for
large, lower-income renter families as a top ranking priority. The proposed project meets
the priorities, goals and objectives of the City for affordable housing.
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VII. CONSTRUCTION PHASING
Approval of the Phase 1 Affordable Housing Agreement will allow Continental
Homes to final maps on villages within the Rancho Carrillo Master Plan which
will allow for the construction of a total of 775 housing units. The subject
agreement allows Continental Homes to build a maximum of 225 market rate
units within the Rancho Carrillo Master Plan before construction of the Phase I
affordable housing units must be initiated; this represents 34% of the total number
of market rate units (659) permitted to be constructed with development of the
116 unit affordable housing project. After the 22Sh building permit is approved,
no additional building permits will be available for market rate housing until the
affordable housing project is under construction. The term “under construction”
for the purpose of the agreement means that the building permits have been
approved and issued and the inspections for the foundation(s) are complete for
116 apartment units.
After construction begins on the affordable housing units, builders will be
permitted to obtain building permits for an additional 275 market rate housing
units before construction must be complete on the affordable housing project. The
total number of building permits that may be pulled before construction must be
complete on the affordable housing project (1 16 units) is 500, which represents
76% of the total number of market rate units permitted within the Phase 1
development.
After final inspection is complete, or final Certificate of Occupancy is issued, for
the affordable housing units, building permits may be obtained for the remaining
159 market rate units.
The construction phasing noted above allows Continental Homes to proceed with
construction of a reasonable number of the market rate homes before construction
must begin on the affordable housing units. Staff believes that the phasing plan set
forth within the agreement is also consistent with the inclusionary housing
ordinance which requires concurrent construction of the affordable housing units.
VIJI. ENTITLEMENTS
The Master Plan for the Rancho Carrillo development, as amended, was approved by the
’ City Council on October 21, 1997. The site development plan and related tentative map
will require approval by both the Planning Commission and City Council at a future
date. The site development plan, which includes elevations and floor plans, for the
affordable housing project (1 16 units) is attached for review by the Housing Commission
at this time. Staff is recommending approval of the site development plan.
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WII. ON-GOING REQUIREMENTS OF THE CITY
While the City will monitor the development of the project and its on-going
management, their will be a minimal long-term future role for the City. A Regulatory
Agreement will be required regarding affordability requirements, but monitoring
responsibilities are greatly reduced because of the stringent affordability requirements of
the tax credit program that are overlaid on the project.
m. SUMMARY AND RECOMMENDATIONS
It is the role of the Housing Commission to make recommendations to the Planning
Commission and City Council based on several considerations with respect to affordable
housing projects. These are:
0 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, Inclusionary Housing
Ordinance, Density Bonus Ordinance, etc.
0 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.
As indicated above, the proposed affordable housing project will serve the needs and
priorities set forth within the City’s Housing Element and Consolidated Plan. It is also
consistent with the City’s Affordable Housing Policies and ordinances. Continental
Homes has selected a development team which has experience in producing affordable
housing and presented a project which can be financed through various financing
sources. Consideration of financial assistance from the City for the subject affordable
housing project will be given at a later date. Financial assistance is a separate issue
which will be addressed at a future date with the affordable housing developer, Carlsbad
Family Housing Partnership. Any conditions of financial assistance provided to the
affordable housing developer will be set forth in a separate agreement.
Staff is recommending approval of the proposed affordable housing project, as
presented, to satisfy the inclusionary housing obligation of the Master Plan developer,
Continental Homes. As required by the Inclusionary Housing Ordinance, Continental
Homes and the City must enter into an Affordable Housing Agreement prior to
recordation of a final map for development within the Rancho Carrillo Master Plan. As
mentioned previously, the Affordable Housing Agreement presented for review and a
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recommendation of approval by the Housing Commission records specific requirements
of the Inclusionary Ordinance, including unit type, affordability levels and construction
timing.
In summary, staff is recommending that the Housing Commission approve a
recommendation to the Planning Commission and City Council to approve the subject
site development plan for the Phase 1 Rancho Carrillo Affordable Housing Project and
the related affordable housing agreement, in substantially the form presented at this time.
1. Housing Commission Resolution No. 98-00 1
2. Draft Affordable Housing Agreement
3. Reduced Plan Exhibits
HC RESOLUTION NO. 98-00 1
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a
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HOUSING COMMISSION RESOLUTION NO. 98-001
THAT THE HOUSING COMMISSION RECOMMEND TO
THE CITY COUNCIL APPROVAL OF AN AFFORDABLE
HOUSING AGREEMENT AND SITE DEVELOPMENT
TWO AND THREE BEDROOM AFFORDABLE
APARTMENT UNITS FOR A TOTAL OF 116
AFFORDABLE UNITS IN ORDER TO SATISFY THE
REQUIREMENTS OF THE INCLUSIONARY HOUSING
ORDINANCE FOR THE DEVELOPMENT OF 116
AFFORDABLE UNITS IN VILLAGE B OF THE RANCHO
CARRILLO MASTER PLAN.
APPLICANT: CARRILLO FAMILY HOUSING
PLAN SDP 97-15 FOR THE CONSTRUCTION OF ONE,
CASE NO.: SDP 97-1 5
WHEREAS, the developer of the Rancho Carrillo Master Plan has proposed to construct
16 apartment units affordable to lower income households as a means to satisfy a portion of
ieir affordable housing obligation as permitted by Carlsbad Municipal Code Section 21.85 of
le City’s Inclusionary Housing Ordinance; and
WHEREAS, the developer’s proposal to construct said units has been submitted to the
:ity of Carlsbad’s Housing Commission for review and consideration; and
WHEREAS, said Housing Commission did, on the 14th day of January, 1998, hold a
ublic meeting to consider said proposal to construct 1 16 affordable housing apartment units;
nd
WHEREAS, at said public meeting, upon hearing and considering all testimony, if any,
f all persons desiring to be heard, said Commission considered all factors relating to the
roposal to construct said affordable housing units.
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.
HC RESOLUTION NO. 98-00 1
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2
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2.
3.
4.
5.
Jonditions:
,.. ,.. .. .. .. .. .. ..
..
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.. .. .. ..
.. ..
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.
The project will provide a total of 116, one, two and three bedroom affordable
apartment units. 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.
That based on the information provided within the Housing Commission Staff
Report and testimony presented during the public meeting of the Housing
Commission on January 14, 1998, the Housing Commission ADOPTED
Resolution No. 98-001, recommending APPROVAL to the City Council of 116
affordable apartment units in Village B of the Rancho Carrillo Master Plan in
order to satisfy the requirements of the Inclusionary Housing Ordinance.
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 2 of the Housing Commission Staff
Report, subject to review and approval by the City Attorney.
Recommendation of approval is granted for Site Development Plan 97- 15, 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.
The affordable housing units shall be deed restricted for “the useful life of the project”
which is a minimum of 55 years.
HC RESOLUTION NO. 98-001
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, Upon final approval of said affordable housing project and prior to final map approval,
the applicant shall execute the Affordable Housing Agreement with the City of Carlsbad
in substantially the form presented to the Housing Commission in the staff report dated
January 14, 1998. The agreement is binding to all future owners and successors in
interest. The Affordable Housing Agreement shall include all terms and conditions of
said project approval required to comply with the City’s Inclusionary Housing
Ordinance.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing
ommission of the City of Carlsbad, California, held on the 14th of January, 1998, by the
dlowing vote, to wit:
AYES:
NOES:
ABSENT:
AB STAIN:
KATHLEEN WELLMAN, CHAIRPERSON
CARLSBAD HOUSING COMMISSION
EBORAH K. FOUNTAIN
cting Housing and Redevelopment Director
HC RESOLUTION NO. 98-001
EXHIBIT 2
RECORDING REQUESTED BY
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk’s Office
Atm: City Clerk
1200 Carlsbad Village Drive
Carlsbad, California 92008
(ABOVE SPACE 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 , 1998, by
and between the CITY OF CARLSBAD, a municipal corporation (“City”), and CONTINENTAL
RANCH INC,, a Delaware corporation (“Developer”), is made with reference to the following:
day of
A. Developer is the owner of certain real property in the City of Carlsbad, in the
County of San Diego, California (“Subject Property”) described in “Attachment A,” which is
attached hereto and incorporated herein by this reference.
B. Developer wishes to construct 775 residential units (“Phase 1 of the Master
Development”) on a portion of the Subject Property. The City has approved the Rancho Carrillo
Master Plan (“Master Plan”); Carlsbad Tract Map Numbers CT 93-01, CT 93-04, CT 93-07, CT
93-08 and CT 95-06; Planned Unit Development Numbers PUD 93-06, PUD 93-07, PUD 95-04
AND PUD 95-05; and, Site Development Plan Numbers SDP 94-01, SDP 95-12 and SDP 95-13
for the “Master Development” of the Subject Property. The City issued these approvals subject to
certain Conditions of Approval, including a condition requiring fifteen percent (1 5%) of the units
in the Master Development to be affordable housing as required by the City’s Inclusionary
Housing Ordinance, Carlsbad Municipal Code Chapter 21.85 (“CMC Chapter 21.85”). In that
regard, this Agreement, as supplemented and amended from time to time, is intended to
implement the requirements imposed by CMC Chapter 21.85 for these approvals and all future
City approvals of tentative maps, planned development permits and site development plans
pursuant to the Master Plan.
C. Developer has indicated that it intends to meet its inclusionary housing
requirement for Phase 1 of the Master Development by constructing, or causing to be
constructed, 1 16 units within Village B of the Master Plan.
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D. Developer is required by the Conditions of Approval to enter into an Affordable
Housing Agreement as required and with the content specified by CMC Chapter 21.85. This
Agreement is an Affordable Housing Agreement pursuant to CMC Section 21.85.020(b)(5), and
shall be signed prior to the approval of any Final Map for the Subject Property.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. Incorporation of Recitals. The Recitals are hereby incorporated in this
Agreement.
2. Satisfaction of Affordable Housing; Obligation and Conditions of Approval. In
order to satisfy the Conditions of Approval of CT 93-01, CT 93-04, CT 93-07, CT 93-08, CT 95-
06 and future tentative maps approved by the City within the Master Plan, and the requirements
of CMC Chapter 21.85, Developer shall cause a minimum of one hundred sixteen (1 16) units of
Phase 1 of the Master Development to be affordable to lower-income households (the
“Affordable Units”), according to the schedule and terms contained herein.
3. Number and Tvue of Affordable Units. Developer shall construct, or cause to be
constructed, one hundred sixteen (1 16) multifamily dwelling units (“Affordable Multifamily
Units”) .
4. Terms Governing; Provision of Affordable Multifamily Units. Provision of the
Affordable Multifamily Units shall be governed by the following terms:
4.1 Location of Multifamily Units. The Phase 1 Affordable Multifamily Units
shall consist of one hundred sixteen (1 16) units to be constructed within Village B of the Master
Development.
4.2 Size and Bedroom Count. The Phase 1 Affordable Multifamily Units shall
include one, two and three bedroom units in the numbers and with the square footages indicated
in “Attachment B” to this Agreement.
4.3 Affordabilitv Requirements. The Phase 1 Affordable Multifamily Units
shall be restricted to occupancy by households with incomes, at the time of initial occupancy,
that do not exceed 50%, 60%, or 80% of the median income for San Diego County, adjusted for
actual household size. Twenty percent (20%) of the Phase 1 Affordable Multifamily Units shall
be affordable to households with incomes, at the time of initial occupancy, that do not exceed
50% of the median income for San Diego County, adjusted for actual household size; forty
percent (40%) of the Phase 1 Affordable Multifamily Units shall be affordable to households
with incomes not exceeding 60% of the median income; and forty percent (40%) of the Phase 1
Affordable Multifamily Units shall be affordable to households with incomes not exceeding 80%
of the median income. Monthly rents (including utility allowance as published by the United
States Department of Housing and Urban Development) of the Affordable Multifamily Units
shall not exceed 1/12th of 30% of the designated percentage of median income for San Diego
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County, adjusted for assumed household size appropriate for the unit. Median income figures
shall be those published annually by the United States Department of Housing and Urban
Development. Assumed household size figures shall be provided to Developer by the City of
Carlsbad Housing and Redevelopment Department. With respect to each Affordable Multifamily
Unit, the affordability requirements of this Section 4.3 shall continue for fifty-five (55) years
from the date of issuance of a Certificate of Occupancy by the City for such unit. The
affordability requirements of this Section 4.3 shall be set forth in the Regulatory Agreement
between the Developer or its successor and the City, provided for in Section 4.7.4 below, which
shall supersede this Agreement with respect to the Phase 1 Affordable Multifamily Units upon
recordation of the Regulatory Agreement.
4.4 Affordable Housing. Developer. Developer has indicated it will contract
with an affordable housing developer to develop and construct the Phase 1 portion of the
Affordable Multifamily Units to be constructed in Village B. Developer shall obtain prior City
approval of the developer and proposed development agreement for the units (“Affordable
Housing Development Agreement”). The Affordable Housing Development Agreement shall
describe with particularity the financial arrangements for the construction of the Affordable
Multifamily Units, the restrictions applicable to the Affordable Multifamily Units and the record
keeping obligations for the management of the units.
4.5 Schedule for DevelopinP Affordable Multifamilv Units. Developer shall
provide the Affordable Multifamily Units pursuant to the following schedule:
4.5.1 Prior to the approval of any Final Map for the Master
Development, the following shall be in place:
4.5.1.1 This Agreement shall be duly signed and recorded against
the subject property.
4.5.1.2 A Site Development Plan shall be approved for the Phase 1
Affordable Multifamily Units. City hereby agrees to priority process the
Site Development Plan for the Phase 1 Affordable Multifamily Units.
4.5.2 Building permits shall not be issued for more than 225 of the
market rate units included in Phase 1 of the Master Development prior to the
Phase 1 Affordable Multifamily Units in Village B being under construction. For
purposes of this Agreement, “under construction” means approval and issuance of
the building permits and completion of inspection(s) for the foundation(s) for the
initial phase of the Phase 1 Affordable Multifamily Units. The 225 building
permits for market rate units included in Phase 1 of the Master Development may
be allocated among the villages in Phase 1 of the Master Development in any
combination as Developer determines in its sole discretion.
4.5.3 Building permits shall not be issued for more than 500 total of the
market rate units included in Phase 1 of the Master Development prior to
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completion of the construction of the Phase 1 Affordable Multifamily Units in
Village B. After final inspection is complete by the Building Department and a
final Certificate of Occupancy is issued, for the Phase 1 Affordable Multifamily
Units, building permits may be obtained for the remaining 159 market rate units
in Phase 1 of the Master Development.
4.6 Comdiance Report. Following completion of construction of the Phase 1
Affordable Multifamily Units, a Compliance Report meeting the requirements of CMC Section
2 1.85.180, verifying compliance of the completed Phase 1 Affordable Multifamily Units with the
terms of this Agreement and certified as correct by a third-party, shall be submitted annually to
the Housing and Redevelopment Director. If similar reports on the Phase 1 Affordable
Multifamily Units are required for regulatory compliance with other financing programs, those
reports may be deemed satisfactory for the purpose of this section by the Housing and
Redevelopment Director, with respect to the Phase 1 Affordable Multifamily Units covered by
such reports, provided that copies of those reports are provided on an annual basis to the Housing
and Redevelopment Director with a third party certification addressed to the City.
4.7 Citv Atmroval of Documents. The following documents, in form and
substance acceptable to the City, shall be used in connection with the rental of the Phase 1
Affordable Multifamily Units. Such documents shall be prepared by the Developer or its
successor and shall be submitted to the Housing and Redevelopment Director for review and
approval no later than the commencement of construction of the Phase 1 Affordable Multifamily
Units:
4.7.1 A marketing plan establishing the process for seeking, selecting
and determining the eligibility of tenants of the Phase 1 Affordable Multifamily
Units.
4.7.2 A form of Rental Agreement.
4.7.3 A property management plan.
4.7.4 A form of regulatory agreement between the Developer or its
successor and the City ("Regulatory Agreement").
5. Release of Subject Prouerty From Agreement. 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 the 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,
Developer shall expressly 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 single-family 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
01 106198 4
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. Upon allocation by the Developer of the
building permits for the first 225 market rate units among the villages in Phase 1 of the Master
Development, in any combination as Developer determines in its sole discretion, then those 225
market rate units shall be released from the burdens of this Agreement. Upon allocation by the
Developer of the building permits for the 226‘h through 500th market rate units among the
villages in Phase 1 of the Master Development, in any combination as Developer determines in
its sole discretion, and after the Phase 1 Affordable Multifamily Units in Village B are under
construction, then the 226‘” through 500th market rate units shall be released from the burdens of
this Agreement. After final inspection is complete, or a final Certificate of Occupancy is issued,
for the Phase 1 Affordable Multifamily Units, then the remaining 159 market rate units in Phase
1 of the Master Development shall be released from the burdens of this A, weement.
6. Default. Failure of Developer to cure any default in 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 a nature which cannot be cured within such ninety (90) day
period, the failure of Developer to commence to cure such default within the ninety (90) day
period or Developer’s failure to proceed diligently to complete the cure of such a default within a
reasonable time period) will constitute a breach of this Agreement and the requirements of
Carlsbad Municipal Code Chapter 21.85 and the City may exercise any and all remedies
available to it with respect to Developer’s failure to satisfy the Conditions of Approval and
Chapter 21.85 of the Carlsbad Municipal Code, including, but not limited to, the withholding of
building permits for the market rate units within the Master Plan.
7. Amointment of Other Agencies. At its sole discretion, the 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.
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 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.
9. Insurance Requirements. Developer (or its successor or successors) shall obtain, at
its (or their) expense, comprehensive general liability insurance for development of the Phase 1
Affordable Multifamily Units naming Indemnitees as additional named insureds with aggregate
limits of not less than Five Million Dollars ($5,000,000) for bodily injury, and death and
property damage, including coverage for contract liability and products and completed operations
purchased by Developer (or its successor or successors) from an insurance company duly
licensed to engage in the business of issuing such insurance in the State, with a current Best’s
01 I06198 5
.-.
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
Phase 1 Affordable Multifamily Units
10. 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, California 92008-2389
CONTINENTAL RANCH, INC.
Attn: Dave Lother
12636 High Bluff Drive, Suite 300
San Diego, California 92 130
To the Developer:
Any party may change its address to which notices are to be sent by notifying the
other party of the new address, in the manner set forth above.
1 1. 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.
12. Duration of Agreement. This Agreement shall remain in effect for 55 years
following the date certificates of occupancy have been issued for all Affordable Units.
13. 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.
14. 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.
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_.-
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as
of the day and year first above written.
CITY: CITY OF CARLSBAD, a municipal corporation
Approved as to form:
RONALD R. BALL,
City Attorney
DEVELOPER:
Delaware corporation
By:
MARTIN ORENYAK
Community Development Director
CONTINENTAL RANCH, INC., a
By:
01 106198
Its:
7
ATTACHMENT “A”
(Subject Property)
H:\ ... \ContHornes\RanchoCarrillo\Phasel AHA.vO1
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ATTACHMENT “B”
(Schedule and Sizes of Affordable Multifamily Units)
H:\ ... \ContHomes\RanchoCarrillo\Phase 1 AHA.vO1
12/31/97
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C.2 C' IC -...- / . .
Carlsbad \
IT
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.. ^. .
EXHIB
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