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HomeMy WebLinkAbout1998-03-12; Housing Commission; MinutesMinutes of: HOUSING COMMISSION Time of Meeting: 6:OO P.M. Date of Meeting: March 12,1998 Place of Meeting: CITY COUNCIL CHAMBERS CALL TO ORDER: Chairperson Wellman called the Regular Meeting to order at 6:06 p.m. PLEDGE OF ALLEGIANCE: Commissioner Scarpelli led the pledge of allegiance. ROLL CALL: Present: Chairperson Wellman, Commissioners Calverley, Escobedo, Latas, Noble, Rose, Scarpelli, and Schlehuber Absent: Commissioner Walker Staff Present: Debbie Fountain, Housing and Redevelopment Director Craig Ruiz, Management Analyst Toni Espinoza, Housing Specialist I1 Bobbi Nunn, Housing Program Manager APPROVAL OF MINUTES: ACTION: Motion by Commissioner Rose, and duly seconded, to approve the Minutes of the Regular Meeting of February 12, 1998, as submitted. Calverley, Escobedo, Noble, Rose, Wellman VOTE: 5-0-3 AYES: NOES: None ABSTAIN: Latas, Scarpelli, Schlehuber COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no comments from the audience. NEW BUSINESS: 1. SDP 97-02 THE TERRACES AT SUNNY CREEK - Request for approval of a recommendation to the City Council of an affordable housing agreement and site development plan for the construction of 50 affordable apartments and 28 second dwelling units to satisfy the inclusionary housing requirements for the Terraces at Sunny Creek. Craig Ruiz reviewed the background of the request and stated that 30 percent of this project is affordable as opposed to the standard 15 percent minimum the Housing Commission typically has seen. Mr. Ruiz explained the City’s Growth Management Control Point, which sets the maximum number of residential units for each of the quadrants in the City. Most of the residential development that has occurred has not reached the “maximum allowable for each project”; resulting in an “excess dwelling bank.” Mr. Ruiz explained these as units that were not used that come below this cap. Some projects are eligible to receive units that were not used elsewhere in the quadrant for their projects, and this project is one of them, he said. In 1984 this project was approved as a commercial project; and when the Growth Management Ordinance was adopted, the maximum residential units established for this property was 22 units. What the applicant is requesting is to receive 228 units from the excess dwelling bank. HOUSING COMMISSION MINUTES MARCH 12,1998 Page 2 Mr. Ruiz explained Policy 43, which the City Council adopted to deal with excess dwelling units. He said this project meets two of the priorities. The first priority is housing development for lower income households. If the applicant was proposing to do the standard 15 percent affordable, they would be doing 37.5 units. In exchange for these excess dwelling units, the applicant will provide an additional amount of affordable units; hence they will be providing approximately 3 1 percent affordable. The other priority this project hits is the third priority--the lowest priority. Mr. Ruiz discussed projects proposing zone changes from non-residential to residential, and said the applicant meets the three criteria. The criteria include (1) property was zoned for other than residential on or before July 1986; (2) project is compatible for residential use without significant mitigation; and (3) the density does not exceed the growth management control points on any adjacent property. Mr. Ruiz discussed the single-family portion of the project and said it is proposed to be developed in 11 phases with the second dwelling units being spread out through the development. Mr. Ruiz described the second dwelling units as being over 600 square feet in size with private entrances, kitchens, and separate bedrooms. The second dwelling units will be developed in accordance with the City’s current Ordinance and will be rented at 80 percent of median income without rent restrictions. Mr. Ruiz showed the site plan for the 50-unit affordable apartment complex. He said it would be constructed in three buildings: Building A is 12 units, Building B is 8 units, and Building C is 30 units. The apartment complex will consist of studio units and I-, 2-, and 3-bedroom units and will be at 80 percent of median income. Some of the amenities include a tot lot, barbecue facilities, picnic area, and laundry facilities. Some of the units will have hook-ups for laundry units inside; and for those that do not have hook-ups inside, there is a common area for a laundry facility. Mr. Ruiz explained that the developer has had experience developing both commercial and residential projects, so the developer will also be the manager of the affordable project. The office for the manager will be adjacent to the project in the commercial facility. There is a state requirement that says that any project of greater than 16 units has to have an on-site manager as well; so there will be both on-site and off-site management of this property. One of the things required in the Affordable Housing Agreement is a management plan. What Staff will review in the management plan is how the manager will coordinate between the office being “next door” and the residential. Mr. Ruiz stated that at this time there is no request for financial assistance. Chairperson Wellman asked if there were any questions of Staff. There was some discussion about access to the main units from the second dwelling units and covered parking. Commissioner Calverley asked if the airplane noise was addressed. Mr. Ruiz responded that it was addressed in the environmental impact reports and in certain building code requirements. Commissioner Calverley asked if the potential residents would sign anything saying they are aware of the airport noise levels. Mr. Ruiz responded negatively. Commissioner Escobedo asked if the zoning has been changed. Mr. Ruiz responded that the applicant made an application to change the use of the property in 1997. The City Council will either approve or deny the zoning change. HOUSING COMMISSION MINUTES MARCH 12,1998 Page 3 Chairperson Wellman asked if the applicant is bound to the 30 percent affordable and asked if there was language stating such. Mr. Ruiz responded that Staff is proposing the following language: “The developer’s negotiated requirement for affordable housing is 30 percent of the total housing units to be produced. This results in a total affordable housing requirement of 78 units for the Terraces at Sunny Creek. Those units provided above the City’s 15 percent inclusionary housing requirement shall not be considered excess units and may not be sold as housing credits to an alternative affordable housing developer.” Chairperson Wellman invited the applicant to speak. Mike Howes, Hofman Planning Associates, 2386 Faraday Avenue, Suite 120, Carlsbad, 92008, addressed the Commission, and said this project is only the second affordable project in the northeast quadrant. He said the project is going to provide affordable rental units in close proximity to existing future jobs, shopping, and public recreational facilities. He added that residents would be able to walk to jobs at the future commercial center and to Taylor Made. He said that Russell Grosse, the project’s applicant, has already filed a site development plan for a 17-acre general commercial site. The applicant plans to develop the projects concurrently, and hopes to start construction in mid 1999. Mr. Howes added that the project is close to public transportation on El Camino. Mr. Howes addressed the inquiry about airport noise, and said this condition is generally a condition put on by the Planning Department when the project goes through the Planning Commission. If the project is within the airport influence area, the residents are put on notification. Residents will also have to sign a waiver that they are aware they are next to El Camino Real and College Avenue because they could be impacted by those noises as well. I Chairperson Wellman asked if there were any questions of Mr. Howes. There was some discussion of the extension of College. There was some discussion about the laundry facilities. Mr. Howes said that all the units, except the studios, would be set up to accept a washeddryer. In addition, there is a laundry facility at the end of Building C. Chairperson Wellman commented that Martha Anna Pillsbury did not sign the application. Mr. Howes responded that Ms. Pillsbury passed away last month and that her trustees are involved and are trying to get her estate settled. He added that if Ms. Pillsbury’s trustees pull out, the entire project might run into some difficulties. Chairperson Wellman expressed concern about the type of landscaping proposed near the uncovered vehicles. Chairperson Wellman commented that the plans show Units 6 and 4 with decks and patios, and asked if all the units will have decks and patios. Glenn Groth, Groth Architects, 708 Civic Center Drive, Oceanside, CA, addressed the Commission and stated as far as he knows all of the units will have either a deck or a patio. Second or third floor units will have a deck, and each one of the first floor units will have some sort of a small patio, he said. He added they might have mislabeled something in a given area (on the blue prints). Chairperson Wellman asked about child-proofing the windows in the second and third story units with iron railings. .- HOUSING COMMISSION MINUTES MARCH 12, 1998 Page 4 Mr. Groth responded that Fire Department regL.lions require the windows to be secondary exits from the building in the event of an emergency. There was some discussion about the construction of the stairs. Chairperson Wellman asked how the affordable apartments would blend with the housing track, Mr. Groth responded that they would try to pick up some of the French provincial-type detailing and have matching concrete slat roofs and colors with the housing project. Commissioner Latas asked about plumbing in the second dwelling units for washeddryer units. Mike O’Hara, Grosse Development, stated that the units would be plumbed for washeddryer units. Commissioner Schlehuber asked if the developer has experience managing affordable housing. Mr. O’Hara responded that Rusty Grosse would manage the site. Ms. Fountain asked Mr. Howes to explain how they selected the uncovered parking versus the covered parking. Mr. Howes responded it is a cost factor. He added they would like to make the project affordable and not have to ask for financial assistance. Chairperson Wellman asked about the projected square footage cost of building the affordable apartments. Mr. O’Hara responded that the cost is approximately $5O/square foot. 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. Commissioner Noble commented that this project meets all the requirements and City codes and added that it is not the job of the Housing Commission to negotiate with the developer on certain amenities, such as parking, etc. Chairperson Wellman recommended incorporating into the Resolution the paragraph Mr. Ruiz wrote clarifying there are no excess units that could be subject for sale later on. The applicant is in agreement with the finding Mr. Ruiz wrote. ACTION: Motion by Commissioner Scarpelli, and duly seconded, that the Housing Commission ADOPT Resolution No. 98-005 RECOMMENDING APPROVAL to the City Council of an Affordable Housing Agreement and Site Development Plan SDP 97-02 for the construction of 50 affordable apartment units and 28 second units in order to satisfy the requirements of the Inclusionary Housing Ordinance in the Terraces at Sunny Creek. Along with Resolution No. 98-005, it is recommended that the following language be incorporated, ‘The developer’s negotiated requirement for affordable housing is 30 percent of the total housing units to be produced. This results in a total affordable housing requirement of 78 units for the Terraces at Sunny Creek. Those units provided above the City’s 15 percent inclusionary housing requirement shall HOUSING COMMISSION MINUTES MARCH 12,1998 Page 5 not be considered excess units and may not be sold as housing credits to an alternative affordable housing developer.” Calverley, Escobedo, Noble, Rose, Scarpelli, Schlehuber, Wellman VOTE: 7- 1-0 AYES: NOES: Latas ABSTAIN: None Commissioner Latas stated that he voted “no” because of the lack of a laundry unit in the second dwelling units. He commented that the blue prints for Unit 4 show a pantry which could be made into a laundry facility, but would reduce the unit’s storage space. ACTION: Minute motion by Commissioner Noble, and duly seconded, that the Housing Commission RECOMMEND to the City Council that they take a new look at the requirements for covered parking for apartment units throughout the City. Calverley, Escobedo, Latas, Noble, Rose, Scarpelli, Schlehuber, Wellman VOTE: 8-0-0 AYES: NOES: None ABSTAIN: None ANNOUNCEMENTS: Ms. Fountain reminded the Commissioners that the April, and possibly the May, meeting will be held at the Safety Center. Ms. Fountain reported that Continental Homes (Rancho Carrillo project) got their applications in on time. They were supposed to get a lottery number either March 11 or 12, 1998, from the 9 percent tax credit. There were 180 applications, which is more than the applicant thought there would be. Ms. Fountain said that at either the April or May meeting Staff will be making a presentation on housing element reform and what has been happening with the sub-committee that has been working with SANDAG on housing element reform and self-certification. She added that each city has to prepare and get a housing element approved every five years, although the recent cycle was extended for two years. Staff will be working on their next housing element this year, and it has to be approved by 1999. For several years, there has been some work going on with housing element reform where cities can possibly self-certify their own housing element. What have come with this are some negotiations on what actually will count in meeting goals, and it will become stricter than it is currently in terms of what counts and what does not count. The cities will have to make a determination whether they want to self-certify or whether they want to go through the State. The City of Carlsbad has had difficulty in getting its housing elements approved by the State; so it is difficult to decide which is the best route. Dennis Turner of the Planning Department has been working with the SANDAG Committee, and Julie Nyguard is the Council representative on the Committee, and they currently have a draft plan prepared that cities were commenting on up to last Friday. At the April or May meeting Staff will make a presentation based upon the results of the sub-committee work and how that might effect what the City is doing. Ms. Fountain added that it does have some implications related to second dwelling units. Chairperson Wellman asked if there was a draft report available to the Housing Commissioners to review. Ms. Fountain responded that she could get a copy of what was sent out for comments. She added that the report would probably be revised based on the comments. Commissioner Rose asked for an update of groundbreaking dates. HOUSING COMMISSION MINUTES MARCH 12,1998 Page 6 Ms. Fountain responded that the Laurel Tree apartments will be breaking ground in June if everything goes well. The Rancho Carrillo project hopes to break ground this year, depending on when they get their financing. The Sambi project (the for-sale townhome project) is trying to get their financing right now and hopefully will break ground this year. Chairperson Wellman asked the Commissioners if they would like to be notified when the regulatory agreements are available in final draft form. The Commissioners responded that they should be notified that the agreements are available for review. There was some discussion about how people get on the list and apply for affordable housing. Ms. Fountain explained that the developers or builders have their own marketing plans on how they market the affordable units. Once units are available, they set up the rules on how people apply for the units. Ms. Fountain said that Staff reviews the marketing plans as they come out. The Housing and Redevelopment Department keeps a list of people who are interested in either rental or for-sale product; and once the units are available, Staff forwards the list to the developers or builders. Once the developer or builder starts their marketing plan, they will accept applications for affordable housing. Commissioner Scarpelli commented that the Terraces at Sunny Creek project is the first project in the City where a private developer is actually going to do the management of the affordable housing. He said one of the areas the Housing Commission is concerned about is that the management of the affordable housing be very tight mainly to avoid any backlash from the community about having affordable in their neighborhood. He recommended that the management plans be looked at closely since this is a much different situation than the City has had with Bridge Housing and W, for example. HAbc Commissioner Schlehuber announced his resignation from the Housing Commission. ADJOURNMENT: By proper motion, the Regular meeting of March 12, 1998 was adjourned at 7:12 p.m. Respectfully submitted, n v&- D BBIE FOUNTAIN Housing and Redevelopment Director KATHY VAN PELT Minutes Clerk MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE APPROVED. I me City of Cadsbad Housing & Redevelopment Department A REPORT TO THE HOUSING COMMISSION 1.1 Item No 1 Staf Craig D. Ruiz Management Anallist DATE: MARCH 12,1998 SUBJECT: SDP 97-02 THE TERRACES AT SUNNY CREEK - REQUEST FOR RECOMMENDATION OF APPROVAL TO THE CITY COUNCIL OF AN AFFORDABLE HOUSING AGREEMENT AND SITE DEVELOPMENT PLAN FOR THE CONSTRUCTION OF 50 AFFORDABLE APARTMENTS AND 28 SECOND UNITS TO SATISFY THE INCLUSIONARY HOUSING REQUIREMENTS FOR THE TERRACES AT SUNNY CREEK. I. RECOMMENDATION That the Hou’sing Commission ADOPT Resolution No. 98-005 RECOMMENDING APPROVAL to the City Council of an Affordable Housing Agreement and Site Development Plan SDP 97-02 for the construction of 50 affordable apartment units and 28 second units in order to satisfy the requirements of the Inclusionary Housing Ordinance in the Terraces at Sunny Creek. 11. PROJECT BACKGROUND In 1984, a Tentative Map and the Sycamore Creek Specific Plan were approved on this site which allowed for the development of a professional/office complex, hotel and tennis club. Several years later the Tentative Map was approved as a final map. Approval of the final map would allow for the development of the site at any time. Due to changing market conditions and the need for low and moderate priced housing in the City of Carlsbad, the applicant is proposing to change the site from non-residential uses to residential. The proposed project will provide two product types in the residential medium density and residential high density range. The Terraces at Sunny Creek will include a total of 250 housing units. Of these 250 units, a minimum of 37.5 units (15%) must be affordable to low income households per the requirements of Carlsbad’s Inclusionary Ordinance. Approval of the 50 unit affordable housing rental project (SDP 97-02) along with 28 second units will allow for the construction of the 250 housing units within the Terraces at Sunny Creek. Of these 250 units, 172 will be market rate units and 78 Terraces at Sunny Creek March 12,1998 * Pane 2 (3 1%) will be affordable to lower income households. The Affordable Housing Agreement with CanAm Properties, LLC, is attached for review by the Housing Commission. The applicant is providing twice the number of affordable units as a tradeoff for the allocation of 229 residential units to this site from the “excess unit bank” of the Northeast Quadrant of Carlsbad. The Approved Zone 15 Local Facilities Management Plan allocated a maximum of 2 1 residential units to this site. As proposed with 250 units, the project exceeds the Growth Management Control Point by 229 residential units. This density increase of 229 units may be approved by the City Council under City Council Policy 43. The transfer of 229 units to this site will leave 165 units in the City’s ‘excess dwelling unit bank’ for the Northeast Quadrant. As of January 1, 1997, there were 339 units in the “excess unit bank’’ according to the Growth Management Update Report. However this number did not take into account all of the excess units that were created by turning the 893 unit Carlsbad Highland residential project into a mitigation bank. In addition, it did not take into account excess units created by projects that were approved below their growth control points in the Northeast Quadrant of the City that had not obtained building permits. Furthermore, it is highly likely that a substantial number of additional excess units will be created when additional acreage in the Northeast Quadrant of the City is set aside for habitat corridors to complete Carlsbad’s Habitat Management Program. Therefore, staff believes that there are more than sufficient units in the “excess dwelling unit bank” in this quadrant to allow for the proposed residential density transfer to this site. The additional residential units are for the purposes of developing affordable as well as market rate units. The project is subject to the standard 15% inclusionary housing requirement on the total residential units proposed within the site. Staff supports the requested density increase as the project meets the First Priority for the allocation of excess dwelling units under Policy 43. As mentioned previously, the 50 multifamily units will be conditioned to be rented to low income households for the useful life of the structures. This represents 20% of the total units within the project. In addition, 28 of the single family homes will be developed with a second unit over the garage which will result in a total of 78 affordable housing units or 3 1% of the units in the project being affordable to a low income household. The number of affordable units being proposed by this project was based on extensive review of the project and negotiations between Housing and Redevelopment staff and the applicant. The Affordable Housing Agreement for the Terraces at Sunny Creek establishes the phasing and development of the inclusionary housing project pursuant to Chapter 21.85 of the City of Carlsbad Zoning Ordinance, Inclusionary Housing. The site development plan (97-02) ensures consistency with the applicable affordable housing agreement and provides the inclusionary housing for the development of the entire project. Terraces at Sunny Creek March 12,1998 I Page 3 111. IV. V. PROJECT DESCRIPTION A. Location The Terraces at Sunny Creek is located at the northeast intersection of El Camino Real and the future extension of College Boulevard. The affordable units will be located on Lot 173 as shown on the proposed Tentative Map CT 96-02 (See Exhibit 4). B. UnitMix The area designated for medium density development will consist of 172 single-family detached units ranging in size from 1,605 to 2,s 19 square feet. Twenty-eight of these units will be designed to accommodate 610 square foot one bedroom second units. As required by the Commission’s Second Dwelling Unit Policy, because there is direct access from the second unit to the main residence, a one bedroom floor plan has been provided. The 2.18 acre 50-unit affordable portion of the project will be developed with studio, 1,2 and 3.bedroom apartment units. The proposed development includes twelve 437 square foot &dio (24%), twelve 636 square foot one bedroom (24%), eight 8 1 1 and twelve 786 square foot two bedroom (40%) and six 1,106 square foot three bedroom units (1 2%). C. Other Features and Amenities The 50-unit affordable project will feature laundry facilities, a Tot Lot, BBQ and picnic areas, and 103 parking spaces. DEVELOPMENT TEAM CanAm Properties, LLC, and Russell W. Grosse Development Co., Inc., will construct and manage the affordable housing project. The Russell W. Grosse Development Co. has developed and managed numerous shopping centers and apartment buildings. The Architect for the project is Groth Architects. The engineer for the project is Manitou Engineering. SITE A. Site Control The site is currently owned by CanAm Properties, LLC and Martha Anne Pillsbury, c/o Marjess Evans. Terraces at Sunny Creek March 12,1998 I Page 4 Terraces at Sunny Creek March 12, 1998 , Page 5 ~ B. LandCost The 2.18 acre affordable housing site is valued at approximately $500,000.00. The value of the land will be verified through an appraisal at a later date. C. Site Characteristics Currently, the subject property is vacant and the surrounding property contains some scattered single family dwellings. The property to the south will be developed with single family homes. College Boulevard will separate this site from future non- residential development to the west. VI. AFFORDABILITY A. Rent and Income Levels The 50 affordable apartment units in the Terraces at Sunny Creek will be restricted and affordable to households with incomes not exceeding 80% of the area median income (AMI). The 28 second units, if rented, will be at rents not exceeding 80% of the AMI. The rental requirements are consistent with the requirements of Carlsbad Municipal Code Section 2 1.10, Second Dwelling Unit Ordinance. B. Target Population The affordable units will be targeted to lower-income households. With a growing number of lower-income jobs in Carlsbad, there is a significant demand for affordable housing for families which will improve the jobshousing balance. The affordable units in this project will be within close proximity of industrial jobs on the opposite side of El Camino Real and commercial jobs at the future shopping center to the west of the site. Six (12%) of the 50 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 usefid life or 55 years, as required by the City’s Inclusionary Housing Ordinance. D. Housing ElementIConsolidated Plan Consistency Terraces at Sunny Creek March 12,1998 Page 6 The proposed affordable housing supports several Housing Element Goals and objective, 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. . VII. CONSTRUCTION PHASING Approval of the Terraces at Sunny Creek Affordable Housing Agreement will allow CanAm Properties, LLC, to obtain a final map for The Terraces which will allow for the construction of a total of 250 housing units. Section 6 of the Affordable Housing Agreement sets forth the phasing requirements for the affordable units. In general, the developer will be allowed to obtain building permits for up to 38 single family homes (22% of the market rate units) prior to the start of construction of Building C of the affordable apartment project. Completion of Building C and the beginning of construction of Buildings A and B will be required prior to construction of the 92"d market rate unit (53% of the market rate units). Buildings A and B will be required to be complete prior to issuance of the 129* market rate building permit (74% of the market rate units). The second units will be evenly distributed throughout the development and will be constructed consistent with the phasing plan submitted for this project (See Exhibit 3). VIII. ENTITLEMENTS The site development plan, tentative map and related discretionary applications will require approval by both the Planning Commission and City Council. The site development plan, which includes elevations and floor plans for the affordable housing project (50 units) is attached for review by the Housing Commission at this time. Also attached are the floor plans and elevations for the 28 second units and an exhibit showing the lots upon which these units will be located. Prior to receiving a building permit for these 28 single family homes, the developer will be required to receive a second dwelling unit permit as required by Section 2 1.10 of the Carlsbad Municipal Code. Staff is recommending approval of the site development plan, the related Affordable Housing Agreement and the plans for the second dwelling units. c- Terraces at Sunny Creek March 12,1998 * Page 7 IX. ON GOING REOUIREMENTS OF THE CITY A Regulatory Agreement with the affordable housing developer will be required regarding affordability requirements. The applicant will be required to file an annual report indicating compliance with the requirements of the Affordable Housing Agreement and the Regulatory Agreement. While the City will monitor the development of the project and its on-going management, there will be a minimal long-term future role for the City. X. 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: 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. 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. If requested, financial assistance is a separate issue which will be addressed at a future date with the CanAm Properties, LLC. Any conditions of financial assistance provided to the affordable housing developer will be set forth in a separate agreement. At this time, the applicant is not requesting any financial assistance. Staff is recommending approval of the proposed affordable housing project, as presented, to satisfy the inclusionary housing obligation for The Terraces at Sunny Creek. As required by the Inclusionary Housing Ordinance, CanAm Properties, LLC, and the City must enter into an Affordable Housing Agreement prior to recordation of a final map for this project. As mentioned previously, the Affordable Housing Agreement presented for review and a recommendation of approval by the Housing Commission records specific Terraces at Sunny Creek March 12,1998 r Page 8 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 for the site development plan for the Terraces at Sunny Creek Affordable Housing Project and the related affordable housing agreement, in substantially the form presented at this time. XI. EXHIBIT 1. 2. Housing Commission Review Application 3. Draft Affordable Housing Agreement 4. Reduced Plan Exhibits Housing Commission Resolution No. 98-005 1 I 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. 98-005 THAT THE HOUSING COMMISSION RECOMMEND TO THE CITY COUNCIL APPROVAL OF AN AFFORDABLE HOUSING AGREEMENT AND . SITE RELATED PLANS FOR THE CONSTRUCTION OF STUDIO, ONE, TWO AND THREE BEDROOM AFFORDABLE APARTMENT UNITS FOR A TOTAL OF 50 AFFORDABLE APARTMENT UNITS AND 28 SECOND DWELLING UNITS TO SATISFY THE REQUIREMENTS OF THE INCLUSIONARY HOUSING ORDINANCE FOR THE TERRACES AT SUNNY CREEK. DEVELOPMENT PLAN SDP 97-02 AND OTHER APPLICANT: CANAM PROPERTIES, LLC CASE NO.: SDP 97-02 :WHEREAS, the developer of The Terraces at Sunny Creek, CANAM Propertyes, Inc. has proposed to construct 50 apartment units and 28 second dwelling units affordable to lower income households as a means to satisfy the affordable housing obligation as permitted by Carlsbad Municipal Code Section 2 1.85 of the City’s Inclusionary Housing Ordinance; and e WHEREAS, the developer’s proposal to construct said units has been submitted to the City of Carlsbad’s Housing Commission for review and consideration; and WHEREAS, said Housing Commission did, on the 12th day of March, 1998, hold a public meeting to consider said proposal to construct 50 affordable housing apartment units and 28 affordable second dwelling units; and 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 20 * NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. 2. 3. 4. t 5. Conditions: The above recitations are truk and correct. 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 50 studio, one, two and three bedroom affordable apartment units and 28 one bedroom second dwelling 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 Consolidation 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 March 12, 1998, the Housing Commission AdoDted Resolution No. 98-005, recommending APPROVAL to the City Council of 50 affordable apartment units and 28 affordable second dwelling units within the Terraces at Sunny Creek in order to satisfy the requirements of the Inclusionary Housing Ordinance. I That the Housing Commission recommends that the City Manager or his designee be authorized to execute the Affordable Housing Agreement in substantially the form presented in Exhibit 3 of the Housing Commission Staff Report, subject to review and approval by the City Attorney. 1. Recommendation of approval is granted for Site Development Plan 97-02, 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 Planning Commission City Council. 2. The affordable housing units shall be deed restricted for “the useful life of the project” which is a minimum of 55 years. Ill Ill Ill HC RES0 NO. 98-005 PAGE 2 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 r 3. Upon final approval of said affordable housing project and prior the 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 March 12, 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 Commission of the City of Carlsbad, California, held on the 12th of March, 1998, by the following vote, to wit: AYES: NOES: ABSENT: :ABSTAIN: KATHLEEN WELLMAN, CHAIRPERSON CARLSBAD HOUSING COMMISSION DEBORAH K. FOUNTAIN Housing and Redevelopment Director HC RES0 NO. 98-005 PAGE 3 Exhibit 2 Hofrnan Planning Associates Planning Project Management Fiscal Analysis February 26, 1998 Debbie Fountain City of Carlsbad Housing and Redevelopment Department 2965 Roosevelt Street, Suite B Carlsbad, CA 92008 SUBJECT: Inclusionary Housing - The Terraces at Sunny Creek Dear Debbie: The purpose of this letter is to demonstrate how the proposed project fulfills the need for affordable housing in compliance with the requirements of Carlsbad’s Housing Element and Inclusionary Ordinance. The proposed inclusionary housing units within The Terraces at Sunny Creek 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 Policy 3.6b 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. The Terraces at Sunny Creek will provide 50 multi family units and 28 second units, resulting in a total of 3 1% of the units in the project being affordable to a low income household. Approximately 12% of the 50 multi family units will be three bedroom units to serve the needs of larger low income households. This project will provide low income housing to meet the unmet housing needs of the community as expressed in Objective 3.9 of the Housing Element. With a growing number of lower income jobs in Carlsbad, there is a significant demand for affordable housing for families. This project is in compliance with Objective 4.1 of the Housing Element by improving the jobshousing balance. The affordable units will be within walking distance of industrial jobs on the opposite side of El Camino Real and commercial jobs at the future shopping center to the west of the site. In closing, the proposed project meets the priorities, goals and objectives of the City for affordable housing. Mike Howes 2386%&&&knue Suite 120 Carlsbad CA 92008 (619) 438-1465 Fax: (619) 438-2443 --I rn HOUSING .- COMMISSION REVIEW APPL'=GTION I. APPLICMfUDEVELOPMENT TEAM INIWRMATION Name of AppIlcant: 'CanAm Properties I L L. C. - MaiIingAddtess: 5850 Avenida Encinas, Suite A, Carlsbad, CA 92008 Teleohone No.: (760) 435-31 41 c Identify Dcrdopment Team (IC, developer, builder, architect, -1: CanAm Properties, L.L,C. (developer/builder); Manitou Engineering; Groth Architects; Hofman Planning Associates; Bassenian / Lagoni Architects XI. GENERAL PROJECT INFORMATION .. bjectNamr . The Terraces at Sunny Creek Describe Cenval Location of Pmjca: Northeast intersection of El Camino Real and College Boulevard. RojedAddmt: N/A No(s)*: 209-060-597 209-090-1 2 and 209-090-1 0 Total Number of AZTortiabIt Units RequM (if appiicabfe): Total Number of Atfordable Units Roped: Type of Units (i~, garden apartments, detached, de.): 3 1 78 50 apartment units and 28 second units ~~(~n~~-ftet),,td~d~ Studio = 437 sq. ft.; One bedroom = 636 sq. ft. Two bedroom = 811 sq. ft, and 786 sq, f.t.; Three bedroom = 1,106 sq. ft- s' Pistriipnof Second units = 610 sq. ft. one%&oomf 20 two bedroom; 6 three bedroom; 28 sec ndary BvYt1310; uni?s Desm'be any spedal featuncslmenitfa to be induded withim project: This project will feature a Tot Lot and BBQ and picnic areas, NECESSARY) ~ -- donthly Rent (by bdr. Size) or Sales Rice of Units: , ~ Per City requirements for households earning 80% of the area's - median income. rum of Affordability (le., 30 yn, life of project, etc.): Life of pro3ect . hjeded Schedule for Construction of Affordable Housing Units: Construction to start in late 1998. V the affordable units are being constructed to Satisfy the City of Carisbad's Inciuionary Housing requirement, how will they be phased with respect to aonstrudon of the market rate units? Please Explain Project Phasing: The secondary units will be built concurrently with the market rate units. Construction of the affordable multi family project will start prior to the issuance of the 38th building permit for the single family portion of the project. Once construction of the multi family portion of the site commences, it will continue to keep pace with the W. FINANCIAL DNFORMATKON ON AFFORDABLE HOUSING PRWCT Rcare attach a copy of devdopmcnt and operating Rnanci?l proformas showing sources and uies of funds to Pccompltsh the affordable unitr proposed in this applidom In the proformas, please identify your subsidy sources and appropriate justifmltorrr for use of these sources. Dcscriie the local financial prdstlncc or indws, if any, including specific terms desired for the affordable housing pmjcct which you are, or nin be, westing from the City of Carisbad: No financial assistance or incentives will be requested from the City of Carlsbad at'this time. Identify any other project conditions which may be relevant to project feasibility: -- 1 Housing Coduion Review Application Rgc 2 1211.93 v . KUJUIRED A'ITAC"TS TO APPLICATION The following item must be atlacha -3 this application: 0 Site Development Plan for Affordable Housing Units; 0 Narmive describing how rhe projca mcc~ the Housing Needs and Priorities as expressed within the City of Carisbad's Housing Element md Comprehensive Housing Affordability Strategy; Narrative on the projca's consistency with the City of Carlsbad's Affordable Housing Policies as expr&d in &e Housing Element, Inclusionary Housing Ordinance. General Plan and other related documnu; 0 0 Development and Operating Financial Proformaj indicating sources and US# of hds for the project, including justification and identification of subsidy sources; Complete description of financial assistance or incentives including specific tern that arc, or will be requested from the City of Carlsbad for the project, if applicable; ad, 0 0 Completed Disclosure Statement of Owaership Interens within the project. VI. APPLICATION SIGNATURES Property Owner Name, Address and Telephone No.: I, the unddgaed, do hereby certify that 1 am the legal owner of the subject property and that the above Information is tnre and correct to the best of my knowledge. SlgTIatUrt Date I, the undersigned applicant, do hereby certify that I am the representative of the legal owner of the subject property and that the above information is trae and cocrcd to tbe best of my knowledge. THE BOX BELOW IS FOR ClTY USE ONLY Date Application Rdved: Application Received By: Staff Recommeodation: Due of Housing Commission Review: Aaion on Application by Housing Commission: . other Commmu: Housing Commission Review Appliudon Page 3 1218 93 ' Housing Commission Review Application The Terraces at Sunny Creek Supplemental Page 4 VI. APPLICATION SIGNATURES Property Owner Name, Address and Telephone No.: I, the undersigned, do hereby certifjr that I am the legal owner of the subject property and that the above information is true and correct to the best of my knowledge. Signature Date Martha Anna Pillsbury I, the undersigned, do hereby cert~ that I am the representative of the legal owner of the subject property and that the above information is true and correct to the best of my knowledge. Applicant Signature: CanAm Properties, L.L.C. DISCL.OSURE STATEMENT b (Please Print) .. The following information must be discfosed: 1. Aoolicant List the names and addresses of al persons having a financial interest in the application. CanAm Properties, L.L. (L . 5850 Avenida Encinas Suite A Carlsbad, CA 92008 2. Owner List the names and addresses of all persons having any ownership interest in the property involved. CanAm Properties, L.L.C. Martha Anna Pillsbury 5850 Avenida Encinas CLO marjess Evans Suite A 4429 Ohio Street CA 9 2008 San Diego, CA 92116 3. If any person identified pursuant to (1) or (2) above is a corporation or partnership, list the nm anc addresses of all indiiduafs owning more than 1096 of the shares in the corporation or owning any parz?erst?:p interest in the partnership. 4. If any person identMed pursuant to (1) or (2) above is a non-profit organization or a trust, list the namts afid addresses of any person serving as officer or dlrector of the non-profit organization or as trustee or benefiaary of the trust. FRM00013 8/90 2075 Las Palmas Onve Carlsbad. California 92009-4859 0 (819) 438-1161 Otsclosura Statement 5. Have you had more than 3250 worth Of business transacted with any member of CiQ statr. ecarc Commissions. Commitfees and Council within the pas! twelve months? Yes - No - H yes, please indicate person(s) Print or type name d owner Print or type name of applicant Signature of.Owner/date Signature of applicant/date Print or type name of owner Print or type name of applicant Exhibit 3 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 (ABOVE SPACE FOR RECORDER’S USE) AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY This AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON , 1998, by REAL PROPERTY (“Agreement”), entered into this and between the CITY OF CARLSBAD, a municipal corporation (“City”), and (“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 172 residential units (“Development”), 50 Affordable Multi-Family Units, and 28 Second Dwelling Units on the Subject Property. The City has approved Carlsbad Tract Map Number CT 96-02, Planned Unit Development Number PUD 96-02, Site Development Plan Number SDP 97-02, General Plan Amendment Number GA96-01, Zone Change Number ZC96-01, Specific Plan Amendment Number SP .190(B) and Special Use Permit Number 96-01 for the 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 its development by constructing, or causing to be constructed, 50 Affordable Multi-Family Units and 28 Second Dwelling Units within the development. 03/03/98 1 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 ADDroval. In order to satis@ the Conditions of Approval of CT 96-02 and the requirements of CMC Chapter 21.85, Developer shall cause a minimum of fifty (50) affordable multi-family units and 28 Second Dwelling Units to be affordable to lower-income households (the “Affordable Units”), according to the schedule and terms contained herein. 3. Number and TvDe of Affordable Units. Developer shall construct, or cause to be constructed, fifty (50) multifamily dwelling units (“Affordable Multifamily Units”) and 28 Second Dwelling 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 Affordable Multifamily Units shall consist of fifty (50) units to be constructed within the boundaries of the Development. 4.2 Size and Bedroom Count. The Affordable Multifamily Units shall include studio, 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 Affordable Multifamily Units shall be restricted to occupancy by households with incomes, at the time of initial occupancy, that do not exceed 80% of the median income for San Diego County, adjusted for actual household size. 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 1/121h of 30% of the designated percentage of median income for San Diego 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 Affordable Multifamily Units upon recordation of the Regulatory Agreement. 4.4 Affordable Housing Develouer. Developer has indicated it will develop and construct the Affordable Multifamily Units. Should the Developer, at a future date, select a separate affordable housing developer, the Developer shall obtain prior City approval of the affordable housing 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 Developing Affordable Multifamily 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 Affordable Multifamily Units. 4.5.2 Building permits shall not be issued for more than 38 of the market rate units included in Development prior to Building C of the Affordable Multifamily Units being under construction. For purposes of this Agreement, l’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 Affordable Multifamily Units. 4.5.3 Building permits shall not be issued for more than 91 of the market rate units prior to completion of the construction of Building C and a final Certificate of Occupancy is issued for the Affordable Multifamily Units. 4.5.4 Building permits shall not be issued for more than 105 of the market rate units included in Development prior to Buildings A & B of the Affordable Multifamily Units 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 Affordable Multifamily Units. 4.5.5 Building permits shall not be issued for more than 128 of the market rate units prior to completion of the construction of Building C and a final Certificate of Occupancy is issued for the Affordable Multifamily Units. 03/03/98 3 4.6 Compliance Report. Following completion of construction of the Affordable Multifamily Units, a Compliance Report meeting the requirements of CMC Section 21 .85.180, verifying compliance of the completed 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 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 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 City ADproval of Documents. The following documents, in form and substance acceptable to the City, shall be used in connection with the rental of the 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 Affordable Multifamily Units: 4.7.1 A marketing plan establishing the process for seeking, selecting and determining the eligibility of tenants of the Affordable Multifamily Units. 4.7.2 A form of Rental Agreement. 4.7.3 A property management plan. 4.7.4A form of regulatory agreement between the Developer or its successor and the City ("Regulatory Agreement"). 5. Terms Regarding Provision of Affordable Second Dwelling: Units. Provision of the Affordable Second Dwelling Units shall be governed by the following terms: 5.1 Location of Units. The Affordable Second Dwelling Units shall be as shown on Planned Unit Development No. 96-02, and as shown on Exhibit 3 of this agreement. 5.2 Size and Bedroom Count. The Affordable Second Dwelling Units shall meet the requirements of CMC Section 21.10.01 5 and City policies relating thereto on the date of this Agreement, as respects use of a secondary dwelling unit to fulfill affordable housing requirements. Further, the Second Dwelling Units shall be consistent with Planned Unit Development No. 96-02. 5.3 Affordabilitv of Second Dwelling Units. Affordable Second Dwelling Units shall be provided in accordance with the requirements of CMC Section 21.10.015. Affordable Second Dwelling Units may be, but are not required to be, rented. If an Affordable Second Dwelling Unit is rented, the monthly rent (including utility allowance) shall not exceed 1/12th of 30% of 80% of median income in Sari Diego County, adjusted for assumed household size appropriate for the unit, as required pursuant to CMC Section 2 1.10.01 5(P). 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 Department of Housing and Community Development. The affordability requirements of this Section 5.3 shall continue for the useful life of the Affordable Second Dwelling Units, which is assumed to be not less than 55 years from the date of completion of original construction. I 5.4 Schedule of DeveloDment of Second Dwelling Units. The Affordable Second Dwelling Units shall be constructed consistent with the approved phasing plan for the project and as shown in Attachment "D" of this agreement. 5.5 Permit Reauirements. Prior to receiving a building permit for the single family homes which have been identified to include second dwelling units, the developer, or their sucessor in interest, shall file and receive approval for a Second Dwelling Unit Permit, as required by Section 2 1.10 of the Carlsbad Municipal Code . 6. Release of Subject ProDerty 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 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 38 market rate units among the villages in of the Master Development, in any combination as Developer determines in its sole discretion, then those 38 market rate units shall be released from the burdens of this Agreement. Upon allocation by the Developer of the building permits for the 39* through 9lSt market rate units among the Development, in any combination as Developer determines in its sole discretion, and after the Building C of the Affordable Multifamily Units is under construction, then the 39* through 91'' market rate units shall be released from the burdens of this Agreement. After fmal inspection is complete, or a final Certificate of Occupancy is issued for Building C for the Affordable Multifamily Units, then the next 37 market rate units in of the Master Development shall be released from the burdens of this Agreement. Upon allocation by the Developer of the building permits for the 39* through 91'' market rate units among the Development, in any combination as Developer determines in its sole discretion, and after the Buildings A and B of the Affordable Multifamily Units are under construction, then the 9Td through 128' 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 Affordable Multifamily Units, then the remaining 44 market rate units in the Master Development shall be released from the burdens of this Agreement. 03/03/98 5 c 7. 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 satisfl 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. 8. 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. 9. Hold Harmless. Developer will indemnifl 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 +y manner to Developer’s actions or defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them, with respect thereto. 10 Insurance Reauirements. Developer (or its successor or successors) shall obtain, at its (or their) expense, comprehensive general liability insurance for development of the 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 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 Affordable Multifamily Units 11. 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 03/03/98 6 To the Developer: ConAm Properties L.L.C. Attn:. 5850 Avenida Encinas, Suite. A Carlsbad , California 92008 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. 12. Intemated Aaeement. 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. 13. 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. 14. 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. 15. 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. 1 7 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the day and year first above written. CITY: . r CITY OF CARLSBAD, a municipal corporation By: MARTIN ORENYAK Community Development Director Approved as to form: RONALD R. BALL, City Attorney DEVELOPER. ConAm Properties L.L.C. By: Its: 8 I ATTACHMENT “A” (Subject Property) H:\.. .\ContHomes\RanchoCarrillo\Phasel AHA.vO 1 12/31/97 ATTACHMENT “B” (Schedule and Sizes of Affordable Multifamily Units) H:\. . .\ContHomes\RanchoCarrillo\Phasel AHA.vO 1 12/31/97 ATTACHMENT “C” (Location of Second Dwelling Units) H:\ ... \ContHornes\RanchoCarrillo\Phasel AHA.VO1 1213 1197 ATTACHMENT “D” (Phasing Plan) H:\ ... \ContHomes\AanchoCarrillo\Phasel AHA.vO1 12131197 - Exhibit 4 -/ I I I I I I I i \' . p - Oceanside .._.._..-.*-*+- ..-..-..-..-..- I-..-..-..-..- Encinitas ! t NORTH tmw won. ML LOU^ MWIOXYITE mi Hofman Planning =AS s o c i a t e s Project Location Map . . I. . -.