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HomeMy WebLinkAbout1998-08-27; Housing Commission; MinutesMinutes of HOUSING COMMISSION Time of Meeting: 6:OO P.M. Date of Meeting: Place of Meeting: AUGUST 27, 1998 ClTY COUNCIL CHAMBERS CALL TO ORDER: Chairperson Wellman called the Regular Meeting to order at 6:08 p.m. PLEDGE OF ALLEGIANCE: Commissioner Escobedo led the pledge of allegiance. ROLL CALL: Present: Chairperson Wellman, Calverley, Escobedo, Latas, Noble, Scarpelli, and Walker Absent: Commissioner Rose Staff Present: Debbie Fountain, Housing and Redevelopment Director Bobbi Nunn, Housing Program Manager APPROVAL OF MINUTES: ACTION: Motion by Commissioner Walker, and duly seconded, to approve the Minutes of the Regular Meeting of July 9, 1998, as submitted. Calverley, Latas, Noble, Scarpelli, Walker, Wellman VOTE: 6-0- 1 AYES: NOES: None ABSTAIN: Escobedo COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no comments from the audience. NEW BUSINESS: 1. CU 98-08 - MEADOW VIEW TOWNHOMES - APPLICATION TO PURCHASE 1.94 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT. Debbie Fountain reviewed the background of the request and stated it involves 11 townhomes on approximately .75 acres on Romeria Street in the southeast quadrant of the City. The property owner is requesting to buy credits in the Villa Loma project to satisfy their requirement for affordable housing, which is 1.94 units. Staff is supporting the recommendation because the Villa Loma project was built to help smaller developers meet their requirement by buying housing credits. There are currently 139 units available that are still considered excess in the Villa Loma project, said Ms. Fountain. Chairperson Wellman invited the applicant to speak. The applicant was not present at the meeting. Chairperson Wellman opened the public testimony and issued the invitation to speak. There being no 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. HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 2 Chairperson Wellman asked how many units were being purchased. Ms. Fountain replied that the buyer pays 1.94 on the credit ($34,000 x 1.94) and it would probably be rounded off to two in terms of excess units unless somebody else comes in with an odd number. ACTION: Motion by Commissioner Scarpelli, and duly seconded, that the Housing Commission ADOPT Resolution No. 98-01 1, recommending that the City Council APPROVE a request by Shiu Fan to purchase 1.94 Affordable Housing Credits in the Villa Loma apartment project in order to satisfy the affordable housing obligation of the Meadow View Townhomes project under the City’s Inclusionary Housing Ordinance. Calverley, Escobedo, Latas, Noble, Scarpelli, Walker, Wellman VOTE: 7-0-0 AYES: NOES: None ABSTAIN: None 2. SDP 98-09 POINSETTIA PROPERTIES - REQUEST FOR RECOMMENDATION OF APPROVAL OF AN AFFORDABLE HOUSING AGREEMENT AND SITE DEVELOPMENT PLAN FOR CONSTRUCTION OF 92 AFFORDABLE APARTMENT UNITS TO SATISFY THE INCLUSIONARY HOUSING REQUIREMENT. Debbie Fountain reviewed the background of the request and stated that the Housing Commission reviewed the specific plan for the Poinsettia Properties project in October 1997. At that time, the original plan included 1,009 units, including 152 affordable units., In January 1998, the plan went to the City Council and was approved with a requirement to reduce the total number of units, which the applicant has done. Approximately 823 units total were approved with 123 of those units being affordable. Ms. Fountain explained that the request is for a total of 617 units with an affordable housing requirement of 92 units. The 92 units are proposed in an apartment project within Planning Area 5, which is at Avenida Encinas (see Exhibit 3). Ms. Fountain stated the apartment project will consist of seven separate residential structures with 36 one-bedroom, 44 two-bedroom, and 12 three-bedroom units. Amenities include washer and dryer hook-ups in each unit; a 2,500 sq. ft. community building; tot lot with playground equipment; swimming pool; private pedestrian trail system; and 192 parking spaces, which meets the standards required for the project. All units are proposed to be affordable to households at 60% of area median income. This is more affordable than required by the Inclusionary Housing Ordinance, which requires them to be affordable at 80% of area median income, she said. This project is going to be owned and operated by Bridge Housing Corporation, and will be financed through a private bond (Bank of America) and tax credits, she said. Ms. Fountain explained that the major issue of the Affordable Housing Agreement is the construction phasing. This is the only issue where the Staff recommendation and the developer recommendation are different. She said that once the developer receives approval of the Affordable Housing Agreement and Site Development Plan, they will be allowed to proceed with 230 building permits for the market rate units. After construction begins on the affordable housing units, builders will be allowed to obtain an additional 149 building permits released for the market rate units. After final inspection or Certificate of Occupancy is issued for the affordable project, the remaining 146 permits will be released for the market rate units. Staff believes that the phasing plan set forth within the Affordable Housing Agreement is also consistent with the Inclusionary Housing Ordinance which requires concurrent construction of the affordable housing units. HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 3 Ms. Fountain explained that the worst situation would be that for each six market rate units, the developer has to build one apartment unit, which is not realistic in terms of building an entire apartment project. Staff has tried to come up with another phasing plan that allows the developer to get a certain number of market rate units before they have to start the affordable, get the affordable going, then another set of building permits would be released. Once the affordable is complete, they would receive their final release. Ms. Fountain addressed the developer’s proposal, stating that at approval of the Affordable Housing Agreement and the Site Development Plan, 230 building permits would be released for market rate units, which is the same as Staffs recommendation. The difference is that once they transfer the affordable housing site to the City or Bridge (proposed affordable housing developer), they pay $900,000 in a subsidy and Bridge Housing records a construction loan for the affordable project; then all of the remaining building permits would be released for the market rate units up to 525 units. Ms. Fountain stated that there are a few,changes that need to be made to the language in the Agreement. A copy of the revised Agreement was submitted as Exhibit 2. Ms. Fountain said that the number 669 needs to be changed to 617 in Paragraph B on the first page of the Agreement. Paragraph C states 52 market rate apartments and then 9 affordable, but Staff would like to just include the total number in Planning Area 6. The reason for calling it out separately, is that it has already been decided that it would come under a separate agreement that the developer would negotiate later when they were ready to move forward, and the proposal is that they would have commercial below and residential above. There is a sentence to be added at the end which will state: “In addition, the developer shall be required to process an amendment to this Agreement to increase the total number of housing units which can receive final map approval up to the maximum approved by the City Council of 823 units for the Poinsettia Properties Specific Plan.” The reason for this is to recognize that they do have an approval for a larger number of units on the site, and if they want to get to that number they will have to come back and amend the Agreement. On page 2, there is another sentence that has been added, stating that if for some reason it is determined at a later date that this project actually provides surplus units, then those could be used to meet an obligation like Planning Area 6. In Condition 1 on page 2, where it talks about satisfaction of affordable housing obligations, Staff has added some language that states what these affordable housing units are being used to satisfy, which is the obligation for Poinsettia Properties. The Agreement is clear as to what Staff is talking about in terms of 525 market rate units and 92 affordable. These changes are basically clarification statements, Ms. Fountain said. Staff added clarifying statements as to how these apply in terms of final maps, and basically leaving it up to the developer’s discretion to determine which planning areas are going to move forward first with building permits. This is just general language restating what the numbers are, she said. Chairperson Wellman opened the item for discussion among the Commission members. Commissioner Scarpelli addressed Staff regarding their recommendation vs. developer’s recommendation to verify the designated area being Area 5 for all of the affordable units. Ms. Fountain stated that the developers might potentially have some affordable units in Planning Area 6 as well. Commissioner Scarpelli asked if 92 is the total number of affordable required. Ms. Fountain stated it would not be the total number if they did 823 units, where they would actually need 123 affordable units. With this agreement, Staff is allowing them to do a maximum of 617 units, which would meet the requirement and they would develop all the units in Planning Area 5. HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 4 Commissioner Latas asked for an explanation of the statement “the income shall not exceed 1/12 of 30% of 80%” which appears on page 2 of the Agreement, Paragraph 3.3 Affordabilitv Reauirements. Ms. Fountain stated that from the gross household income, the monthly expenses should not exceed 30% of 80%. The 1/12 is the annual gross household income, divided by 12, which is the 30% of the monthly income that is considered affordable. Commissioner Latas asked Bobbi Nunn the percentage of a median income for a Section 8 family of two. Ms. Nunn stated they are under 50% of the median income to initially get on the program. Commissioner Calverley referred to the 30% of the 80% and stated that she finds it too stringent and feels it should be raised, because the normal person would not qualify under these conditions. Commissioner Scarpelli stated that in the underwriting it would be 33% of loo%, which would only include principal, interest, taxes, and insurance. He asked for clarification on the 30%, making sure the qualification was for the housing expense, not the total expense. Ms. Fountain explained for a rental it would include rent payment and utilities. If it were a for-sale product, it would include a homeowner association fee, interest, and payment (total housing expense). Ms. Fountain stated that the 30% is State-regulated. Commissioner Calverley asked if there was any way to give some leeway. Ms. Fountain stated that it would be a legal issue that could be processed for the Commission if so desired by the Commission. Lydia Tan, Bridge Housing, San Francisco, explained that the rent the landlord can charge cannot exceed 30% of 80% of median income. This allows a resident to have a set low rental payment so they have enough money to spend on other things. As a matter of policy, Bridge allows residents to pay up to 35% of their income to live in the property, even though the rent is set up at 30%; therefore, they are able to reach lower income levels with this policy. Commissioner Scarpelli expressed his concern that there is a limit to how much one can earn to qualify for affordable housing, and asked about Bridge’s formula. Ms. Tan replied that their formula is 80% of median income. The maximum income and maximum rent are the two things to look at, she said. The Agreement states that maximum income is 80% of median income, and the maximum rent the landlord can charge is based on 30% of 80% of median income. Ms. Fountain said for a one-bedroom unit, based on a two-person household, the maximum annual income would be $32,500. The maximum monthly income would be $2,708. The maximum rent that could be charged based on that 30% figure would be $813. An utility allowance is also taken out, so the actual rent would be set at $797, and be capped at $797. There may be someone who may have to pay 35% of their income for rent, but they are helped because there is a cap on what the total rent is and what the 35% of income would get them in terms of the unit. Commissioner Wellman asked what their target is. Ms. Fountain replied that their target is 60%. HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 5 Commissioner Wellman asked about the breakdown of one, two, and three bedroom units; where these units are being plugged in; and if existing needs are being met, or if there a surplus in any of those categories. Ms. Fountain showed a chart exhibiting the City’s needs. She said that 5140% is considered low income; therefore, the 60% falls into the low-income category, making it more affordable than what the Inclusionary Housing Ordinance requires. Commissioner Latas asked why the Agreement states 1/12 of 30% of 80% rather than 60% of median income. Ms. Fountain explained that Staff usually puts the actual requirement into the Affordable Housing Agreement, which the Inclusionary Housing Ordinance says is 80%. Usually if Staff puts financial assistance into a project, then they get specific on what affordability levels they are expecting for that assistance. Basically, the policy has been that unless you are going below 80%, they are not going to provide financial assistance or recommend assistance, so the developer would have to go lower. Staff would put in the Financial Assistance Agreement that they are going lower. This leaves them some flexibility. At a later date, if for some reason this project does not work out, this basically outlines what the requirement is, but they could come in at a later date with a regulatory agreement that would pin that down to the 60%. Commissioner Scarpelli asked if this would allow assistance to Section 8 recipients. Ms. Nunn explained it would provide more units within Carlsbad that would meet the program requirements on the rent structure for Section 8. Ms. Fountain stated that it makes more units available that could participate in the program. There are still a limited number of certificates and vouchers, but this makes more units available in Carlsbad. With a project that is proposing to have 100% of the units at 60%, it definitely helps provide additional units, she said. Commissioner Scarpelli asked if the developer has offered the 60% to assist the City in providing more Section 8 availability. Ms. Fountain commented that they did not come to this 60% to help the Section 8 specifically, but it definitely provides a need. Chairperson Wellman invited the applicant to speak. Doug Avis, BenchMark Pacific, 5055 Avenida Encinas, Suite 210, Carlsbad, CA 92008, addressed the Commission and described the nature of the Poinsettia Properties project. The project will create some affordable housing opportunities, both market and subsidized. The product has three product types that are being developed ranging from 1,150 to 2,500 sq. ft., and the goal is to stay down into the $200,000 area. It is really a beach cottage community and the nature of the architecture of the affordable housing project blends in with that. The principal building is the two-story building. The idea of the project is to get garages off the street, with buildings on the outside and parking on the inside, and front doors and porches on the street. Mr. Avis explained that they have put together a team which includes Bridge Housing, starting four to five years ago, having worked consistently with Bridge all along. Eventually the property and development will be handed over to Bridge, including ownership of the land at the point that it is fully approved and fully financed. The affordable project needs to be ahead of the market project because it has to be proven that it is indeed an affordable housing project to get the market rate units released. Mr. Avis pointed out that there has been a desire in the past to separate the affordable housing, either off-site, in another part of the community, or in another corner of the project. The developer has purposely tried not to do that by making the affordable project part of the complete project. This is important, according to Mr. Avis, because the transit station, HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 6 which is just a short walk away, will target people who can work in Old Town, Sorrento Valley, and local golf manufacturers, giving them an opportunity to have a viable life without owning an automobile. One can walk a block to the beach from this site or to the Ralph’s shopping center. One can get on the train and virtually get anywhere in southern California very easily, he added. All of this leads to the opportunity of incorporating the affordable within the project, as opposed to sticking it somewhere else and hiding it. Mr. Avis described the two issues they have with the Agreement. The first being a minor issue, is that the developers would like the Housing Commission to give consideration to the idea that if the developer ends up with excess units, that those excess affordable units be allowed to mitigate Planning Area 6. Mr. Avis said that the second issue relates to the releases. He explained that he worked with the Laurel Tree project when they were managing the project for the Kaiser project. He explained how the process developed and stated that as the tax credit requirements changed and the 9% credits got much tougher, it took about a year for that project to get going. Mr. Avis stated that this project% a 4% tax credit and not a 9% tax credit. He said the developer is “being held hostage” under Staffs recommendation of waiting until the units have the Certificate of Occupancy because the developers will have to go to their lenders to borrow money for curbs, gutters, streets, etc. The lender would then need to know if the developer is in control of those things, and their response would be that they have no control over them. He said that if they cannot get all their units out, they may not get the first one out. What that means is that the project may not start until they get through the Certificates of Occupancy. In fact, the opportunity to be able to release the land and come up with a million dollars may not happen, he said. This causes a logjam of progress. Mr. Avis asked the Commission to give consideration to releasing the 230 units at the time that the Agreement is signed and the Site Development Plan is approved by the City Council. Once they stick the deed to the property with their check for the subsidy of the project, the balance of the units then would be released. The other point is the release of the first 230 units. For a couple of business reasons, they had originally planned those to be in area B and C, which is Planning Areas 7 and 8, rather than being at the developer’s discretion. The properties have since been sold to Shea and Magellan. This was how it was originally, and they are asking it go back to that again. Chairperson Wellman opened the item for discussion among the Commission members. Mr. Avis added that he believes the numbers are wrong on the handout Ms. Fountain gave him, explaining that he took the total number of units and multiplied it by 15% and he came up with 82 units. He believes the 230 is actually 232 in the original schedule. Ms. Fountain explained that she used the number 617, and 15% of that is 92. What is important to Staff is how many are being released at any given time, so the percentages are the key points, and if that works out to different numbers, then those numbers can be adjusted. Mr. Avis commented that if the City wanted to, they could escrow the deed and escrow the money as well. Chairperson Wellman stated there is a requirement for concurrent building of the affordable project and asked when the affordable project would be built. Mr. Avis explained that the definition of concurrent could be a lot of things. And it has already been determined that concurrent was sticking the money and the deed in. Mr. Avis said that Bridge is going to start with the affordable. They are going to give Bridge the deed and $1 million which is the subsidy, and then Bridge owns the property. Construction should start in April or May. The conditions of the project and the Site Development Plan allow the affordable housing project to be built on its own. It does not have to be tied to the other drainage facilities in all of Avenida Encinas. The reason for that is that they want it to be ahead of HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 7 the balance of the project. He feels they .me met their commitment to that project by putting the land and the money into the deal. John Gamlin, Vice President of Planning Development, Magellan Corporation, owner of Parcel B, stated that they were the owner until about one week ago. They sold that property to Shea, and Paul Barns is present from Shea. Mr. Gamlin wanted to echo his agreement with Mr. Avis’ requests relative to the release of Parcels B and C. Commissioner Scarpelli stated that this disagreement appears to be the actual building of the affordable housing and it appears from what he just heard that it is really going to be whether or not they get the 4% tax credits in November or January. It would appear that the City’s problem is whether the tax credits will be available and whether construction can start as immediately as possible. Ms. Tan responded that nothing is guaranteed; but given the Laurel Tree experience, they have designed a financing plan that does not rely on 9% tax credits. What they are actually doing is going in November for an allocation of bond authority. Once you have an allocation of bond authority, you automatically qualify for 4% tax credits, she said. Multi- family housing is the number one priority for allocating bond authority in the state, she said. The first round of bond authority for 1999 applications is due in November and is scheduled to be allocated in January. Once that happens, they will process an application for tax credits, which is automatic; and they will be issuing bonds in April, which means they will need to start construction right away. Commissioner Scarpelli asked if the 60% of median consideration was made to help assure getting the bond authority. Ms. Tan stated that it would help; however, there is no point system in allocating bonds. There is stated in the allocation plan a preference and priority for affordability. Bond authority for multi-family housing can be given to market-rate projects, down to affordable projects in terms of affordability. Having 100% affordable and 60% median income will help, she said. Commissioner Scarpelli asked if they will accomplish bond authority issuance in January. Ms. Tan replied that she feels good about it, and that the office of State Treasury is up for election in November. The existing Treasurer is running for Senate; therefore, there will be a new State Treasurer. The State Treasurer oversees both the bond allocation and the tax credit allocation process, she said. The new State Treasurer may want to take a look at the process for allocating bond authority. There is intense pressure to make sure the bond authority allocation process is a regular process and it usually happens every quarter. Chairperson Wellman asked if there is a lottery combined with that, like there is with a tax credit. Lydia Tan responded that it is first-come, first-served. Chairperson Wellman opened discussion among the Commissioners. Commissioner Noble explained how a Master Plan works. Chairperson Wellman asked Staff to explain the phasing issue. Ms. Fountain explained that Staffs logic behind the phasing is trying to control when the affordable housing comes on line. The problem it causes, is that if the developer has any restrictions on how their building permits can be released, they may have a problem with the whole project in terms of how they put in improvements, etc. What they are trying to do, she said, is figure out how many units they can get released to them so they can at least get started on their project to build some market rate units so there is some money to do the rest of their project, recover their costs for improvement, or whatever it might be. HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 8 Ms. Fountain explained that Staff has played with the numbers a lot to try to figure out what is appropriate, and this is similar to what they have done on other projects, such as with Rancho Carrillo and Kelly Ranch. The percentages may be played around with a little, but what Staff tried to do is get whole planning areas or villages that could be released at one time. Staff changed that structure a little to give the developer more flexibility, but they prefer to have it pinned down that Planning Areas 7 and 8 are going to go forward with these first set of permits. The developer has already identified for the Commission that their first set of building permits are going to go to those planning areas. Staffs concern is that if all the building permits are released for the market rate units, the affordable units may be the last component to get built; and the concern is then with all these market-rate houses in the area there may be opposition to the affordable project. What Staff was trying to do is make it more concurrent so that some of the market rate can get built, then some of the affordable, then the rest of the market rate. Both Mr. Avis and Staff hope that the affordable units will be built at the beginning of this project. Ms. Fountain added that Staff is trying to get some concurrency in there so it all moves along together. If the affordable housing project gets built first, then they will get all of the other units released rather quickly. If there is any hold up in the financing, that could hold up their building permits, and that is where the real concern is. She added that if the Commission desires to recommend something different to the City Council, that recommendation would be taken forward. Commissioner Latas asked if the Planning Commission has the same kind of ability to govern how the permits are pulled. Ms. Fountain responded that the Affordable Housing Agreement goes directly from the Housing Commission to the City Council; however, the Site Development Plan does go to the Planning Commission. Commissioner Scarpelli asked if Staff is not quite as confident as the developer that they will achieve the 4% tax credits. He said that he certainly could empathize with the developer’s point of view in that it is very difficult to get the financing under the conditions or restrictions that Staff is recommending. As a Commissioner, he cannot see why the City cannot let them go ahead and be able to move forward on the project if Staff believes that they will get the tax credits. Ms. Fountain explained that there are no guarantees of what will happen, but is confident that they will get the credits, so she does not see much of a concern on the release of the permits. Staffs recommendation gives the City some leverage to make sure that all of the market rate units do not get built before the affordable housing. Commissioner Scarpelli stated that it seems to him that they are looking at two pretty hard positions: Staffs recommendation and the developer’s. They are all assuming that the tax credits will be forthcoming, if not in January, then some time between January and the end of the second quarter of 1999. Commissioner Scarpelli suggested they come to some middle ground which would indicate, with the approval of the developer, if the tax credits are not achieved, then they go into a particular formulation. Commissioner Noble agreed with Commissioner Scarpelli, and referred to the Master Plan Aviara, where a lot of market-rate homes were built before the first affordable homes. Then the developer got permission to build Villa Loma off-site. Commissioner Noble pointed out that here is someone who is building 230 homes on-site, and if the bottom fell out and there was no more money available, no more homes would be built until somebody comes forward and puts in the number of homes. It may fall on the other developers, but still 15% of all those houses will be built as affordable units. There was discussion regarding a consideration to amend Staff‘s proposal. HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 9 Mr. Avis stated that with this condition, they would have difficulty financing their project. The only solution to meet this condition is to tell Bridge that this is not going to be a tax credit deal, put up $4 million of their own money in land and dollars, and build the project with a $4 million subsidy at 80% median income and own it as an asset. So the affordability of the project is lost by stopping the project from the beginning in the financing of it, he said. Commissioner Scarpelli stated that the project being offered at 60% of median income is extremely important because it would help the Section 8 housing problem. If the developer moves forward, they might end up with 80% housing. Commissioner Scarpelli stated he would like to encourage Staff not to approve this resolution as it stands right now. Commissioner Noble stated that he agreed with Commissioner Scarpelli. ACTION: Motion by Commissioner Latas, and duly seconded, that the Housing Commission ADOPT Resolution No. 98-012, recommending that the City Council APPROVE an Affordable Housing Agreement and Site Development Plan for the construction of 92 affordable apartment units in Planning Area 5 to satisfy the Inclusionary Housing requirements for the Poinsettia Properties Specific Plan. VOTE: 1-6-0 AYES: Wellman NOES: ABSTAIN: None Calverley, Escobedo, Latas, Noble, Scarpelli, Walker There was discussion about requiring Section 8 housing with this project. ACTION: Motion by Commissioner Noble, and duly seconded, that the Housing Commission ADOPT Resolution No. 98-012, recommending that the City Council APPROVE an Affordable Housing Agreement and Site Development Plan for the construction of 92 affordable apartment units in Planning Area 5 to satisfy the Inclusionary Housing requirements for the Poinsettia Properties Specific Plan with the developer’s recommendations as described by Ms. Fountain during; Staffs presentation. Calverley, Escobedo, Noble, Scarpelli, Walker VOTE: 5-2-0 AYES: NOES: Latas, Wellman ABSTAIN: None 3. RANCHO CARRILLO SECOND DWELLING UNITS - REQUEST FOR RECOMMENDATION OF APPROVAL OF AN AFFORDABLE HOUSING AGREEMENT AND SITE DEVELOPMENT PLAN FOR CONSTRUCTION OF 50 SECOND DWELLING UNITS TO SATISFY THE INCLUSIONARY HOUSING REQUIREMENT. Debbie Fountain reviewed the background of the request and stated that Staff originally had an Agreement developed with the Continental Homes Rancho Carrillo Master Plan, and it was initially limited by the City Council that they could not final maps for more than 775 housing units within the Master Plan area until they had provided additional Site Development Plans for the rest of their affordable housing. The first phase was to include 116 apartment units, with final maps on 775 units, and a phasing plan. The developer wants to increase that original 775 number by adding 50 second dwelling units to satisfy their affordable housing obligation. The Council approved that original Agreement on March 3, 1998. They have been moving forward with financing for that project. Staff wants a Site Development Plan that shows exactly what the developer is going to do, what the units look like, how big they are, etc. Ms. Fountain added that the Site Development Plan allows for an increase to 1,158 total housing units, with 992 of those being market-rate and 166 affordable, which includes the 50 second dwelling units and the 116 HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 10 apartment units. This would allow them to increase the number of building permits according to their phasing plan, which could be released initially and then in subsequent stages. Ms. Fountain explained that the second dwelling units are proposed for Villages G, H, J, K, M, Q, and R. The first 19 that have been proposed in H, J, and the first phase of Q (Q-l), are fixed locations with fixed designs, which means they have already identified builders for those second dwelling units. The builders have come up with a design for the units on their lots within their villages and they will range in size from 587 to 616 sq. ft. for studio and one-bedroom units. The second phase proposes a total of 3 1 second dwelling units in Villages G, K, M, Q-2, Q-4, and R. Anticipated locations and prototypical designs were provided. The builders have not been identified yet, so what Continental has tried to do is identify a number of different floor plans that could potentially be used by builders and put those together as prototypical, allowing builders to select any one of the floor plans A through F to put on their lots. Ms. Fountain said that the developer has also requested that they administratively be allowed to relocate 50% of the lots within each noted Village. They need a little flexibility because the builders have not been identified and may not like the exact lots that they get. If a Village.has four second dwelling units proposed for it, then they would not move more than two. These prototypical designs range in size from 323 to 640 sq. ft. and are studio and one-bedroom units. The chart on page 5 of Staffs report explains which floor plans will be included in the various Villages. Ms. Fountain said that the developer wants the Commission to be aware that the small units (323 sq. ft.) will be built on a limited basis only in Villages G and K, which are the Villages with smaller lots. According to the developer , larger units might also fit on Village K lots. Commissioner Scarpelli questioned the 50% adjustment that the developer is asking for, asking if they would move them from a specific lot to another lot in the same Village. Ms. Fountain explained that they still would have to amend their Site Development Plan, which attaches to the Affordable Housing Agreement, but they could do it administratively and not have to go back to the Housing Commission and the City Council for approval. Ms. Fountain discussed second dwelling unit amenities. Ms. Fountain stated that in terms of the affordability of the project, Staff is recommending that the developer comply with the Second Dwelling Unit Ordinance which basically states that if the units are rented, the rental price shall not exceed 30% of 80% of the area median income. They will have to deed restrict the units and have an Affidavit of Compliance that is signed by the property owner. Ms. Fountain explained that Staff and the developer did not get a chance to go over the Affordable Housing Agreement completely, and wanted to go over some of the changes. Going through the phasing plan, Ms. Fountain explained that this project is a little different than most because it includes both rental units in an apartment project and second dwelling units as rental units, making it harder on the phasing to figure out when construction should start. When the amended Affordable Housing Agreement and the Site Development Plan get approved, 400 building permits for market rate units will be released, which is an increase from the original 338. The percent stays the same at approximately 34 to 35%. They would be released to get an additional set of building permits after the apartment project is under construction, she said. Originally, Staff was trying to get the second dwelling units under construction, as well as the apartment units. Staff realized what they needed to do was have the developer built concurrently with the single-family homes. Basically, it still is the same as the Agreement, just taking out the reference to the second dwelling units having to be under construction. This change focuses on the rental apartment project being under construction, and having added language /- HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 1 1 that states the developer will build the second dwelling units as they build the single family homes consistent with their Site Development Plan on the lots that they said they will build. The second dwelling units will go along with the market rate permits that are being released. They can increase that number by each second dwelling unit that they move forward on, but that unit does not have to be under construction. They just have to receive the administrative permit approved and issued for the unit and then they would be able to get an additional seven houses released for market rate permits. Commissioner Scarpelli asked for further clarification in regard to an administrative permit. Ms. Fountain stated that an administrative permit it is the permit that is required for second dwelling units and it is processed administratively. It is part of the building permit process, and has an Affidavit of Compliance that comes with it that the property owner has to sign. Commissioner Scarpelli asked if it is processed at the same time that the building permit is processed. Ms. Fountain explained that the administrative permit could be acquired before the building permit, but usually they are received closely together. Ms. Fountain explained that in paragraph 4.5.3 of the Agreement the numbers are still the same as the original Agreement in terms of percentage, but the number of permits has been increased to 754. After the developer gets the apartment project under construction, which means the foundations have to be complete, inspected, and approved, then they can get building permits for the remainder of their market-rate units. The only thing that has changed in that paragraph is the reference to having the affordable housing second dwelling units under construction, which has been taken out. Ms. Fountain also explained the last sentence that was added on top of page 5 of the Agreement and pointed out that the number 323 on page 7 of the Agreement has been changed to 400. Ms Fountain stated that they are recommending approval of the second dwelling units for the Rancho Carrillo project with the changes to the Agreement to allow the developer to proceed and get 1,158 final maps and building permits at the end. Chairperson Wellman opened the item for discussion among the Commission members. Commissioner Scarpelli asked for clarification of item 6 of the Agreement. Ms. Fountain explained that it is basically stating that all the developer has to do is get the apartment units completed and then can get the release of their final units. Chairperson Wellman invited the applicant to speak. Mike Howes, Hofman Planning Associates, 2386 Faraday Avenue, Suite 120, Carlsbad, addressed the Commission and concurred with Staffs recommendation. Continental Homes has already received approval for 1 16 affordable apartment units in Phase I of Village B of the Master Plan. The approval requested represents a portion of the second phase of the overall Inclusionary Housing Program for the Master Plan. Mr. Howes described phasing as Ms. Fountain explained, and stated that the remaining portion of Rancho Carrillo’s inclusionary requirement will be fulfilled by a combination of two and three-bedroom ownership townhome units in Phase I1 of Village B. The Site Development Plan is being revised with hopes of submitting it before the Housing Commission before the end of this year. Mr. Howes explained that all but one of the units meets the 400-sq. ft. minimum. This one unit is slightly below the 400-sq. ft. (323) but does fulfill a need, and will only be used on Villages G and K, he said. HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 12 Chairperson Wellman opened discussion among the Commission. Commissioner Walker asked if only 323 sq. ft. units will fit on lots G and K. Mr. Howes explained that some of the other units would also fit on those lots. It is not clear yet about the product type in Villages G and K because they do not have any builders. However, due to the size, they are trying to have a little flexibility in case they have a unique product type that has trouble fitting on those lots. Commissioner Walker asked if 432-sq. ft. units could also fit on the lots. Mr. Howes stated positively. Commissioner Scarpelli stated that he is concerned about the size of the 323-sq. ft. units and asked how they came up with the 323-sq. ft., which is below the 400-sq. ft. minimum. Steve Wallet, Starck Architects, stated that the 323-sq. ft. unit is based on a Uniform Building Code minimum that has a minimum area of about 220-sq. ft., which does not include kitchen cabinets, bathrooms, closets, or washeddryer space. The 323-sq. ft. unit is an attempt to design the smallest unit possible to allow a builder maximum flexibility and would be limited to the smallest lots. However, if a builder feels they want to and can accommodate a larger unit, they will be encouraged to do so. All of the prototypes appear on Village K because the applicant does not know what will be built there or who will be building the units. The smaller units will be built only on Villages G and K. There was some discussion about the second dwelling unit guidelines in relation to size of units. Ms. Fountain said that the guidelines state that unless there is compelling evidence that a smaller unit is appropriate, that 400-sq. ft. is considered the minimum size. In some cases, a patio area could increase the usable area and could be included in the unit’s total square footage. There was extensive discussion about the variety of floor plans ranging from 323-sq. ft. to 532-sq. ft. There was also discussion regarding what makes a sufficient kitchen with appropriate appliances, and it was suggested that the architect take a look at the plans. The Housing Commission would like to see more of a kitchen than what is required by the Uniform Building Code for the one bedroom unit than exists now, and does not see a justification for going under 400-sq. ft. David Lother, Continental Homes, 1233 El Camino Real, Suite 300, San Diego, CA 92130, addressed the Commission and suggested that if the Commission has a problem with the 323-sq. ft. units, that they make a recommendation that it be redesigned and go to the 400-sq. ft. or whatever number the Commission feels is required. Paul Barnes of Shea Homes addressed the Housing Commission about the discussion about of what is considered to be a standard kitchen. He said that as opposed to a studio unit, people were actually getting a bedroom, and to accommodate that there was somewhat of a compromise on what might be considered a standard kitchen. He pointed out that the “kitchen” meets the requirements under the UBC code. Commissioner Scarpelli stated that the Commission is not favorably inclined toward the smaller units because the smaller the unit gets and the less efficient, there is concern they will not get rented and used as affordable housing. 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. HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 13 Chairperson Wellman stated she has reservations with the 323-sq. ft. unit, and feels it should be recommended that the units be a minimum of 400-sq. ft., which would not include staircases. Chairperson Wellman suggested that they modify the Resolution, making it mandatory that the second dwelling units be rented to people of 80% or less of median income. This will guarantee that there are 50 units dedicated for affordable, she said. Commissioner Scarpelli made the recommendation that the Commission specify what qualifies as a full kitchen. Commissioner Calverley stated that it is important to have a kitchen that can accommodate a family with an oven, four burners, sink, full refrigerator, dishwasher, etc. Ms. Fountain explained that the Inclusionary Housing Ordinance allows alternatives, and second dwelling units are considered alternatives. Staff has said consistently that if they are going to allow second dwelling units, they allow them under the Second Dwelling Ordinance, not putting additional restrictions on them, because for monitoring purposes it becomes a nightmare. If the Commission wants to make an additional recommendation to the Council that states they believe the units should be rented, should be income qualified, etc., they could make that recommendation to the Council. Legally, in terms of having to rent them, it has gone back and forth in the courts and there have been different decisions on whether or not you can require someone to rent the units. ACTION: Motion by Commissioner Noble, and duly seconded, that the Housing Commission ADOPT Resolution No. 98-013, recommending APPROVAL to the Planning Commission and City Council of the Rancho Carrillo Affordable Housing Agreement and Site Development Plan SDP 98-12 showing the locations and design of 50 affordable second units in the Rancho Carrillo Master Plan with the corrections outlined bv Ms. Fountain in Staffs presentation and with the exception of Floor Plan A (the 323-square foot second dwelling unit) Calverley, Escobedo, Latas, Noble, Scarpelli VOTE: 5-2-0 AYES: NOES: Walker, Wellman ABSTAIN: None ACTION: Minute Motion by Commissioner Calverley, and duly seconded, that the Housing Commission recommend to the City Council that second dwelling units contain full kitchens, i.e., kitchens with an oven, four-burner stove, sink, and space for a full-size refrigerator1 freezer unit. Calverley, Escobedo, Latas, Scarpelli, Walker, Wellman VOTE: 6- 1-0 AYES: NOES: Noble AB STAIN: None There was extensive discussion regarding the requirement of 50 affordable housing units being made available for rent on the open market. ACTION: Minute Motion by Chairperson Wellman, and duly seconded, that the Housing Commission recommend to the City Council that they amend Condition No. 2 on Page 2 of Resolution No. 98-013 to include the following: The affordable housing units be made available for rent on the open rental market. The gross household income of the tenant(s) may not exceed 80% of the San Diego Area Median Income. VOTE: 4-3-0 AYES: Calverley, Escobedo, Scarpelli, Wellman NOES: Latas, Noble, Walker HOUSING COMMISSION MINUTES AUGUST 27,1998 PAGE 14 ABSTAIN: None CONTINUED INFORMATIONAL ITEMS: Chairperson Wellman commented that the Continued Information Items would be carried over to next month. ANNOUNCEMENTS: Ms. Fountain announced that the next meeting would be on Tuesday, September 29, 1998, rather than Thursday. The October 8 meeting will need to be changed due to the Commissioners’ Appreciation Dinner at the Four Seasons. Ms. Fountain announced that Leilani Hines terminated her employment with the City of Carlsbad and has gone to the City of Chula Vista. Tony Espinosa is now the Housing Program Manager for National City. Maria Campo, Housing Assistant, did not return from maternity leave. Staff is in the process of recruiting, and hopes to be fully staffed in the next few months. ADJOURNMENT: By proper motion, the Regular meeting of August 27, 1998 was adjourned at 9:25 p.m. Respectfully submitted, n IE FOUNTAIN Housing and Redevelopment Director KATHY VAN PELT Minutes Clerk MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRI7TEN MINUTES ARE APPROVED. Tiifany Misenhunt 2290 Avenida Magnifica #C Carlsbad Ca 92008 July 9,1998 City of Carlsbad Housing Authority Counsel C/O Toni Espanosa @ City of Carlsbad Housing and Redevelopment Dear Sirs and Madams: My name is Tiffiny Whisenhunt and I am a single mother of one daughter, a full time student at Mira Costa College majoring in Child Development, and a part time student employee on campus. I am a Section 8 recipient. I have participated in the program for the last 2 X years. I am writing to you with my concerns about the recent increase of rental prices and aversion to Section 8 by Landlords and Companies owning apartments. My family and I have been living in Carlsbad for the last 9 X years we have enjoyed the people, the cleanness, the safety, and the location very much. We have decided to call Carlsbad our home. Now with the recent housing trends I am facing a difficult situation. To move or to stay and be in position I was once in before participating in the Section 8 program, which is paying half of my income to my rent. The treatment of Section 8 participants in the last year has been unfair. For example the enormous increase in rent, (in my case $150), and the non - acceptance of the Section 8 program by Managers and Companies owning apartment complexes in Carlsbad. Are we to feel that because we are struggling and or our income is lower than others that our families and our children can not live in Carlsbad? What an awful feeling to have when life at the present is so hard for so many. I do have deep respect for the City Counsel and all the hard work done in our behalf. I do feel this issue has to be taken seriously now that it is in a crisis like situation. I would hate to have to move. But being on my own, the struggle to make ends meet and provide a safe environment for my daughter will take a toll on myself and others that have found themselves in this situation this year. I would like to raise my daughter in Carlsbad. I would like to continue living near my parents. I would like to continue to have the right of being able to choose where I would like to live with my daughter. I do agree with self sufficiency and that is why I am working so hard through school, so that I will be a more active Carlsbad resident I believe that a great majority of the participants feel the same. I believe that a great majority of participants are very grateful, as I am, for the Section 8 program and it's Staff that works vety hard for all. Thank you for listening to this letter and please know that any endeavors to help this life altering situation will be vety much appreciated by myself and all involved. 0 Page1 C b .) John June 30, 199s RE: Dear Occupants(s): Our firm has been retained to proceed with the eviction rocess if you fail to comply with the notice that has been served. This process will begin wit R filing a lawsuit against you for Uii 1 aw h I Detainer . Please understand that we will commence court action against you without further notice. In proceeding against you, we shall seek the reasonable rental value of the premises, court costs, service of process costs, additional costs as incurred, and the statutory penalty provided by law of an additional six hundred dollars ($600.00) for the unlawfiil detention of the premises you no\v occupy. If we receive a judgment against you, the Marshal or Sheriff will remove you from the premises. Our client could also garnish your wages, levy on your bank accounts, and/or attach your non-exempt personal property for judicial sale in order to collect all liionies due. In the event you coni I with the terms of the notice within the time prescribed therein, If you desire to contact our firm regarding this matter, please communicate in writing only; we will not discuss this case with you over the telephone or in person. however, an unlawfii PB etainer lawsuit will not be filed based upon the notice served. Sincerely, KIMBALL, TI NOTICE OF’TERMINATION OF TENANCY TO : AND ALL OTHERS IN POSSESSION: NOTICE IS HEREBY GIVEN THAT, after service upon you of this NOTICE, namely, namely JULY 31, 1998, your tenancy at the below described real property shall be terminated. On JULY 31, 1998, you are hereby required to quit and deliver up possession of the hereinafter described premises to the undersigned or SCG REALTY :SERVICES, INC./CAMINO POINTE APARTMENTS who/which is authorized to receive the same:’ The owner is electing not to renew your lease and you are being served with this NOTICE pursuant to Title 42 United States Code Section 1437f (d) (1) (B) ii. The premises herein referred to are situated in the City of Carlsbad, County of San Diego, State of street number as m AwNIDA mGNIFICA, The undersigned does hereby elect to declare a forfeiture of ’ the lease agreement by which you hold possession of the subject premises. If you fail to comply with the terms of this notice legal proceedings will be instituted against you to declare the forfeiture of the lease or rental agreement under which you occupy the hereinbelow described property and to recover possession of said premises, to recover court costs, attorneyts fees as permitted by law, and may be liable for additional statutory damages of up to SIX HUNDRED DOLLARS ($600.00) in accordance with California Code of Civil Procedure Section 1174(b), as a result of your failure to comply with the terms of this notice. If such a judicial proceeding is commenced against you in State Court, you may present a defense in said action. DATED: June 30, 1998 ” @!Rib - * t CAMlN.0 POINTE VILLAGE Ilcnr - , Our records indicate tliiit yoti arc currently Icasiiig your npartiiieiit lioriie oil a iiiuiitli to i~ioi~tli basis. We would likc lo iiivitc you lo coiisiclcr ;I six, iiiiie or twelve iiioiitli lease aiid the atlvar1t:lges it will a%rd you. Oiie of tliese adv;iiitagcs is tlic “~IOIIIL‘ Uiqw’s Protectiori I%iri, ” It is aii excitiiig Custoiiier Scrvicc Prograiii, irlcnl iryou plnii to ptirclinse a lioriie in the iicnr future. 1f‘you decidc that ;i lease is riglit [or you,just call llic Lcnsiiig Ceiitcr, wc will cx1)editc tlic papcrwork aiitl scl aside s~iiie [iiiie to iiieet with you. ITor your coiivciiiciice, coiiipletc Icase rerieival iiil‘oriiiatioii is prcsciitcd iii tlic box bclow. 1’Ic:isI: coiitnct tis prior toq/l 5/98 aiid Ict tis hiow wliicli optioii you prcrcr. We look rorwartl [o lieariiig fioiii you vcry sooii. Ocarii Crcsl w Lease Rwiewil. Iiifoi-ilia lioii c The City of Celshad Housing & Rede‘rrelopment Department A REPORT TO THE HOUSING GOMMISSXON Staff: Craig D. Rllfi Management malyrt DATE: AUGUST 27,1998 SUBJECT: CT 98-08/CP 98-06 - MEADOW VIEW TOWNHOMES. - APPLICATION TO PURCHASE 1.94 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA APARTMENT PROJECT I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 98-01 1, recommending that the City Council APPROVE a request by Shiu Fan to purchase 1.94 Affordable Housing Credits in the Villa Loma apartment project in order to satisfy the affordable housing obligation of the Meadow View Townhomes project under the City’s Inclusionary Housing Ordinance. 11. BACKGROUND Ms. Shiu Fan is currently processing an application for tentative map (CT 98-08) to develop 11 townhomes on approximately .75 acres. The development of 11 townhomes will require the developer to provide 1.94 units of housing affordable to lower income households as required by the City’s Inclusionary Housing Ordinance. It is the applicant’s position that due to the small size of the development, and the subsidy amounts required to make the units affordable, it would be difficult to provide the affordable housing units on- site. Therefore, the applicant is requestingsto purchase Affordable Housing Credits (“Credits”) in the Villa Loma project in lieu of on-site construction. The City’s Inclusionary Housing Ordinance permits off-site satisfaction of an inclusionary requirement through participation in a Combined Inclusionary Housing Project (“Combined Project”) if the City Council determines that it is in the public interest. Purchase of credits in the Villa Loma project constitutes participation in a Combined Project. There are 139 Credits currently available for purchase (See Exhibit 4). Policies Regarding Off-Site Projects and Purchase of Affordable HousinP Credits The City Council has adopted two policies which deal with off-site or Combined Projects and the sale of Affordable Housing Credits. Council Policy 57 was developed to establish the criteria to be utilized in order to make the necessary finding that off-site satisfaction of an inclusionary housing requirement, when proposed through a Combined Project, is in the public interest. Council Policy 58 was established to determine the price of Credits and the mechanism to satisfy a developers obligation under the City’s Inc I usioiiary Housing Ordinance. . CT 98-08/CP 98-06 - MEADOW VIEW TOWNHOMES AUGUST 27, 1998 PAGE 2 DISCUSSION The Council Policies require staff to evaluate the request for off-site satisfaction of the inclusionary housing obligation and the purchase of Credits based upon three primary criteria. The criteria includes: 1) feasibility of on-site proposal; 2) relative advantagesldisadvantages of an off-site proposal; and 3) the advancement of housing goals and strategies. The following is a summary of staffs analysis of the criteria for the project. Fensibilitv of On-site Pronosal The applicant is proposing to develop a total of 11 townhome units on a .75 acre parcel. The small scale of the development, and the significant financial subsidy which would be necessary to develop affordable units on-site, make such development unfeasible. Relative AdvantaPeslDisadvantages of an Off-site Pronosal The participation in the off-site project will allow the City to recover the costs associated with the development of excess affordable housing units. 0 ’The Villa Loma project has locational advantages over the on-site project in terms of direct access to jobs, public transportation, schools, parks as well as other amenities and services. Advancing Housiw Goals and Stratepies The recovery of the City’s investment in the Villa Loma Project will provide for additional financial resources which are needed to further affordable housing development in the community. RECOMMENDATION Based upon the analysis of the above criteria, the Affordable Housing Policy (staff) Team believes that adequate justification has been provided ‘by the Developer to make the finding that the off-site satisfaction of the inclusionary housing requirement is in the public interest. Therefore, the staff team is recommending that the request to purchase Credits be recommended for approval by the Housing Commission. EXHIBITS 1. 2. 3. 4. 5. 6. Housing Commission Resolution No. 98-0 1 1 Draft Affordable Housing Agreement Applicant Request to Purchase Credits Credit Balance Chart Site Plan Vicinity Map . 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 _- e HOUSING COMMISSION RESOLUTION NO. 98-01 1 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, TO RECOMMEND THAT THE CITY COUNCIL APPROVE A REQUEST BY SHIU FAN TO PURCHASE 1.94 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE MEADOW VIEW TOWNHOMES PROJECT UNDER THE CITY’S INCLUSIONARY HOUSING ORDINANCE. APPLICANT: SHIU FAN. CASE NO: CT 98-08/CP 98-06 WHEREAS, Shiu Fan has made application for Tentative Map CT 98-08 within the City of Carlsbad for the development of a 11 unit residential townhome development; WHEREAS, the development of 11 residential townhomes requires the developer to provide 1.94 units of housing affordable to lower income households as required by Carlsbad Municipal Code Section 2 1.85 of the City’s Inclusionary Housing Ordinance; WHEREAS, the Villa Loma housing project was conceived and developed with City participation based on the creation of 184 excess affordable housing units which would be available to satisfy other developers inclusionary housing obligation; WHEREAS, Shiu Fan has requested to purchase Affordable Housing Credits as a means to satisfy their affordable housing obligations as permitted by Carlsbad Municipal Code Section 2 1.85 of the City’s Inclusionary Housing Ordinance and consistent with City Council Policies 57 and 58; WHEREAS, the request to purchase Affordable Housing Credits has been submitted to the City of Carlsbad’s Housing Commission for review and consideration; WHEREAS, said Housing Commission did, on the 27th day of August, hold a public meeting to consider said request for the purchase of Affordable Housing Credits by Shiu Fan; 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 application and request to purchase Affordable Housing Credits; . 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 NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. 2. 3. 4. 5. The above recitations are true and correct, The project is consistent with the goals and objectives of the City of Carlsbad's Housing Element and Consolidated Plan, the Inclusionary Housing Ordinance, and the Carlsbad General Plan. Based upon the analysis contained within the Housing Commission Staff Report, the Housing Commission finds that the off-site satisfaction of the inclusionary housing requirement is in the public interest. That based on the information provided within the Housing Commission Staff Report and testimony presented during the public meeting of the Housing Commission on August 27, 1998 the Commission recommends that the City Council APPROVE a request by Shiu Fan to purchase 1.94 affordable housing credits in the Villa Lorna housing project in order to satis@ the affordable housing obligation of the Meadow View Townhome Project under the City's Inclusionary Housing Ordinance. That the Housing Commission recommends that the Community Development Director be authorized to execute the Affordable Housing Agreement in substantially the form presented in Exhibit 2 to the Housing Commission Staff Report and to execute such other documents, or take other actions as may be necessary or appropriate to assist the developer in acquiring the Affordable Housing Credits. General Conditions: 1. Within sixty (60) days of the City Council approval of Developer's request to purchase Affordable Housing Credits, and prior to receiving Final Map approval, Developer shall execute this Agreement and purchase 1.94 Housing Credits. Execution of this Agreement by the parties and payment of the required fee to the City by the Developer shall fully satisfy the Developer's affordable housing obligation pursuant to Chapter 21.85 of the Carlsbad Municipal Code and the above-referenced conditions of approval. Upon execution of this Agreement and receipt of the above payment from developer, City will record an appropriate release of the developer's obligation. ... ... ... ... ... HC RESO. NO. 98-01 1 PAGE 2 1 i t z 1( 11 14 15 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 i the City of Carlsbad, California, held on the 27Ih day of August, 1998, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: KATHLEEN DUNN-WELLMAN, CHAIRPERSON CARLSBAD HOUSING COMMISSION .- PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission of DEBBIE FOUNTAIN HOUSING AND REDEVELOPMENT DIRECTOR IC RES0 NO. 98-01 1 'AGE 3 EXHIBIT 2 RECORDING REQUESTED BY: City of Carlsbad WHEN RECORDED MAIL TO: City of Carlsbad City Clerk‘s Office Attn: City Clerk 1200 Carlsbad Village Drive Carlsbad, California 92008 (Space above for Recorder k Use) AFFORDABLE HOUSING AGREEMENT THIS AFFORDABLE HOUSING AGREEMENT (“Agreement”) is entered into this day of , 1998, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to as the “City”), and Shiu Fan, (hereinafter referred to as the “Developer”), is made with reference to the following: RECITALS A. Developer is the owner of certain real property in the City of Carlsbad, County of San Diego, State of California, described in “Attachment A”, which is attached hereto and incorporated herein by this reference, and which is the subject of a Tentative Map (CT 98-08), which provides conditional approval of the construction of 1 1 residential townhomes (“Project”). B. Condition No. of Planning Commission Resolution No. , states that this Affordable Housing Agreement shall be entered into between the City and the Developer as a means of satisfying the Developers’ affordable housing obligation (“Affordable Housing Obligation”), as such is defined under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. provides that the Affordable Housing Obligation of one and ninety-four one hundredths (1.94) units will be satisfied by applying the requirements set forth in this Agreement. NOW, THEREFORE’ incorporating the foregoing Recitals and in consideration of the mutual covenants contained herein, the parties agree as follows: 1. THE RECITALS ARE TRUE AND CORRECT. 2. SATISFACTION OF AFFORDABLE HOUSING REQUIREMENTS THROUGH THE PAYMENT OF AFFORDABLE HOUSING CREDITS. (a) Performance under this Agreement satisfies the Developers’ obligation for affordable housing under Chapter 21.85 of the Carlsbad Municipal Code as applied to the land covered by Carlsbad Tract No. 98-08 by reason of the approvals of the Tentative Map of CT 98-08, including Condition No. I listed in Planning Commission Resolution No. and any other applicable approval. (b) The Developer shall pay for one and ninety-four one hundredths( I .94) Affordable Housing Credits as established by the City and as required by Condition No. - Planning Commission Resolution No. -. The fee shall be paid prior to the Developer receiving a building permit for the project. of 3. REMEDIES Failure by the Developer to perform in accordance with this Agreement will constitute failure Planning Commission Resolution No. . Such failure will allow the City to exercise any and all remedies available to it including but not limited to withholding the issuance of building permits for the lots shown on Carlsbad Tract No. 98-02. to satisfy the requirements of Chapter 21.85 of the Carlsbad Municipal Code and Condition No. - of 4. HOLD HARMLESS Developer will indemnity 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, obtained, allegedly caused by, arising out of or retaining in any manner to Developers’ actions or .. defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. Developer shall obtain, at its expense, comprehensive general liability insurance for development of the ($1,000,000) purchased by the Developer from an insurance company duly licensed to engage in the business of issuing such insurance in the State of California, 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 Project. 5. NOTICES All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registed or certified mail, return receipt requested to the party to receive such notice at the address set forth below: TO THE CITY: City of Carlsbad Housing and Redevelopment Department Attn: Housing & Redevelopment Director 2965 Roosevelt Street, Suite B Carlsbad, California 92008-2389 TO THE DEVELOPER: Shiu Fan P.O. Box 2202 La Jolla, CA 92038 Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above. . -_ 6. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. 7. DURATION OF AGREEMENT This Agreement shall terminate and become null and void upon the payment of the Affordable Housing Credits, or the repeal, termination, or modification of any applicable ordinance which act would render the Affordable Housing Obligation unnecessary or unenforceable. 8. SUCCESSORS This Agreement shall benefit and bind the Developer and any successive owners of Affordable Housing Lots. 9. SEVERABILITY In the event any provision contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction, the remaining provisions of this Agreement shall nevertheless, be and remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the day and year first above written. DEVELOPER CITY City of Carlsbad, a municipal corporation By: (Name) By: (Tit 1 e) By: MARTIN ORENYAK Community Development Director APPROVED AS TO FORM: RONALD R. BALL CITY ATTORNEY ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY DISCLOSURE STATEMENT L (Please Prrnt) The following information must be disclosed: 1. Applicant List the names and addresses of all persons having a financial interest in the application. 2. 3. 4. List the names and addresses of all any ownership interest in the property involved 5J(m.c nt 5 h!J c -FAN v sh J a II nfAj&~ - - __ fr, l-scv - dk/* I DL4 br 6 -2g- qf) If any person identified pursuant to (1) or (2) above is a corporation or partnership, list the names and addresses of all individuals owning more than 10% of the shares in the corporation or owning any partrarshp interest in the partnership. If any person identitied pursuant to (1) or (2) above is a non-profit organization or a trust, list the names ar;d addresses of any person serving as officer or director of the non-profit organization or as trustee or beneficiary of the trust. FRM00013 8/90 2075 Las Palmas Orive 0 Carlsbad. California 92009-4859 (619) 438-1161 Disclosure Statement 5. Have YOU had more than $250 worth Of business transacted wlth any member of Cily staff. ?:arc; Cornrnrssions. Committees and Council within the past twelve months? Yes - No - It yes, please indicate person(s) (NOTE: Attach additional pages as necessary.) Signature of Owner/date Signature of applicantldate Prit or type name of owner Print or type name of applicant FRM00013 8/93 OFF-SI7 IND COMBINED INCLUSIONARY HC 'NG PROJECT ASSESSMENT WORKSHEET BACKGROUND 1. Applicant Name and Address: 2. Off-site or Combined Project Name: 3. Description of Project with lncfusionary Housing Obligation: II ?-OldhCI~vu\XJ 4-w &s b4Rt e3 R--d I. Proposed On-site Project Description (i any): t.J IP ~ ~~ . Proposed off-site Project Descn'ption: Attachment "I" to Council Policy Statement No. 57 CITY OF CARLSBAD __ HOI I" YG COMMISSION REVIEW APE CATION Telephone No.: (61q) IT. GENERAL PROJECT INFORMATION - fiojd Name: Itlgadod V;ZJ I~~JH(~=YII~P~ Describe General Location of Project: Site Parcel No($.: 2 J 6- 2 40- ? 1 aAd 3 2 I.9cI Total Number of Affordable Units Required (if applicable): 1 . / Total Number of Affordable Units Proposed: N~~E oN-s [~c I I 9 q J2kJf-r- wfzCHns& / Type of Units (ie., garden apartments, detached, etc.): p&a&A, 7wfihO-J. Size (in square feet) of each Unit: 3 i3dVboMS Bedroom Size Distribution of Units: Describe any special featuredamenitis to be included within project: POkbLc 4'"1", Jt-@vpLPp-- cy-, ba rIztucrc3.ioM Lire r /dak, Housing Commission Review Application Page 1 It P 93 - IU. TElUIS OF AkTORDA - ITY FOR AFFORDABLE UNITS (ATTI NECESSARY) . ADDITIONAL LNFORMATION Targeted Income Levels (as %I of area median): 120 1304,- Target Population (ie., families, seniors, etc): b+J oq - syac Monthly Rent (by bdr. size) or Sales Price of Units: Term of Affordability (ie., 30 yrs, life of project, etc.): 3 0 “5, Projected Schedule for Construction of Affordable Housing Units: ?!!/A_:( p+f pkd45x 4 G$-f.,td4bI,e h“~“5:”9 cy.cA;+, If the affordable units are being constructed to satisfy the City of Carlsbad’s Inclusionary Housing requirement, how will they be phased with respect to construction of the market rate units? Please Explain Project Phasing: II ~~ ~ IV. FINANCIAL INFORMATION ON AFFORDABLE HOUSING PROJECT Please attach a copy of development and operating financial proformas showing sources and uses of funds to accomplish the affordable units proposed in this application. In the profomas, please identify your subsidy sources and appropriate justifications for use of these sources. Describe the local financial assistance or incentives, if any, including specific terms desired for the affordable housing project which you are, or will be, requesting from the City of Carlsbad: /k Identify any other project conditions which may be relevant to project feasibility: Housing Commission Review Applicadon Page 2 1218l.93 - V. REQUIRED A'ITACmlEh - TO APPLICATION The following items must be attached IO this application: e Site Development Plan for Affordable Housing Units; e Narrative describing how the project meets the Housing Needs and Priorities as expressed within the City of Carlsbad's Housing Element and Comprehensive Housing Affordability Strategy; Narrative on the project's consistency with the City of Carlsbad's Affordable Housing Policies as expr&ed in the Housing Element, Inclusionary Housing Ordinance, General Plan and other related documents; 0 Development and Operating Financial Proformas indicating sources and uses of funds for the project, including justification and identification of subsidy sources; e Complete description of financial assistance or incentives including specific terms that are, or will be requested from the City of Cadsbad for the project, if applicable; and, Completed Disclosure Statement of Ownership Interests within the project. VI. APPLICATION SIGNATURES Property Owner Name, Address and Telephone No.: 5h;u _L I-M ?-e Bw=02 / ~4 5La, CA 42.338 I, the undersigned, do hereby certify 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. I, the undersigned applicant, do hereby certify that I am the representative of the legal owner of the subject propem and that the above information is true and correct to the best of my knowledge. Applicant Signature: CAM(< Date THE BOX BELOW IS FOR CITY USE ONLY ~ ~~ Date Application Received: Application Received By: Staff Recommendation: Date of Housing Commission Review: Action on Application by Housing Commission: , Other Comments: Housina Commission Review Apdication Page 3- -. 1218 93 , 1 - WORKSHEET I ASSESSMENT CONCLUSION (Check appropriate box) - ~ I SUPPORTSOFF-SE OFF-SITE PRomsAL INCONCLUS~VE PROFQSAL DOES NOT SUPPORT 1. Feasibility of the On-site Proposal. a. Are there significant feasibility issues due to factors such as project size, site constraints, amount and availability of required subsidy, and competition from multiple projects that make an on-site option impractical? k 3. Will an affordable housing product be difficult to inteclrate into the proposed market development because of significant price and product type disparity? :. Does the on-site development entity have the capacitv to deliver the proposed affordable housing on-site? Brief Narrative: do. I. Relative Advantaaes/Disadvantaqes of the Off- site Proposal. I. Does the off-site option offer greater feasibility and cost effectiveness than the on-site alternative, particularly regarding potential local public assistance? 2 ASSESSMENT CONCLUSION (Check appropriate box) DOES NOT SUPPORT SUPPORTS OFF-Sm ASSESS- CRIER& OFF-SUE PROPOSAL INCONCLUSIVE PROPOSAL DOES NOT SUPPORT OFFSI-E pRomsAL I b. Does the off-site proposal have location advantaqes over the on-site alternative, such as proximity to jobs, schools, transportation, setvices; less impact on other existing developments, etc.? 3 ~ ~- INCONCLUWE __ Brief Narrative: c. Does the off-site option offer a development entity with the caDacitv to deliver the proposed project? % Brief Narrative: d. Does the off-site option satisfy multide x developer obliaations that would be difficult to satisfy with multiple projects? Brief Narrative: 3. Advancinq Housinq Goals and Strateqy a. Does the off-site proposal advance and/or support City housing goals and policies expressed in the Housing Element, CHAS and lnclusionary Housing Ordinance? Brief Narrative: SUMMARY SUPPORTS OFF-SllE mmw I I’ t 3 A Greystone Cove Exhibit 4 Beginning Balance 184 23 161 ? Marvista at La Costa Exhibit 4 Credit Balance Chart 2 I 159 I VILLA LOMA AFFORDABLE HOUSING CREDIT BALANCE I Ocean l6 I Colina Roble 4 139 143 z 4 IJ k w '0 \ m-- 1, Exhibit 6 The City of Cax-Isbad Wousins 8i; Redeuelopment Department AREPORT TO THE HOUSING COMMXSSXON Staff: Craig Rulz Manasement Malyrf DATE: AUGUST 27,1998 SUBJECT: POINSETTIA PROPERTIES - REQUEST FOR RECOMMENDATION OF APPROVAL TO THE CITY COUNCIL OF AN AFFORDABLE HOUSING AGREEMENT AND SITE DEVELOPMENT PLAN FOR THE CONSTRUCTION OF 92 AFFORDABLE APARTMENT UNITS IN PLANNING AREA 5 TO SATISFY THE INCLUSIONARY HOUSING REQUIREMENTS THE POINSETTIA PROPERTIES SPECIFIC PLAN I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 98-012, recommending that the City Council APPROVE an Affordable Housing Agreement and Site Development Plan for the construction of 92 affordable apartment units in Planning Area 5 to satisfy the inclusionary housing requirements for the Poinsettia Properties Specific Plan 11. PROTECT BACKGROUND The purpose of the Poinsettia Properties Specific Plan is to guide the orderly development of the property while preserving and enhancing the site’s unique amenities. For planning purposes, the Poinsettia Properties Specific Plan is divided into 8 individual residential, non- residential and open space areas (Planning Areas). The Specific Plan defines the allowable type and intensity of land uses in each Planning Area and provides general development and design standards, requirements, and the method by which the Poinsettia Properties Specific Plan will be implemented The Poinsettia Properties Specific Plan was previously reviewed by the Housing Commission on October 21,1997. At that time, the Commission reviewed the affordable housing component of the Plan, which included a total of 857 residential units. The proposal was to satisfy the project’s inclusionary housing obligation by providing 152 affordable units in a combination of second dwelling units, an apartment complex, and a potential mixed-use (1st floor commercial and second floor residential) development. .- POINSETTIA PROPERTIES AUGUST 27,1998 PAGE 2 On January 20, 1998, the City Council approved the Specific Plan to include a total of 669 residential units. With the reduction in total dwelling units, the affordable housing requirement was reduced accordingly. The project now consists of a 92 unit affordable apartment project within Planning Area 5 of the Specific Plan. Any second dwelling units wikhin the Project will not be utilized for inclusionary housing purposes. If the commercial development in Planning Area 6 is constructed with residential units, 15% of those units will be required to be affordable to low income households. Further, the mixed-use development will be the subject of a separate Site Development Plan and Affordable Housing Agreement. Pursuant to the City's Inclusionary Housing Ordinance, 15% of the base dwelling units in the Specific Plan must be provided for lower income households. The Affordable Housing Agreement for the Poinsettia Properties Specific Plan establishes the phasing and development of the inclusionary housing for the Specific Plan pursuant to Chapter 21.85 of the City of Carlsbad Zoning Ordinance. The applicant is currently processing a site development plan (98- 09) for the development of a 92 unit affordable apartment project which will ensure the development is consis tent with the applicable affordable housing agreement. 111. PROTECT DESCRIPTION A. Location The Specific Plan is located generally on the easterly side of Avenida Encinas, north of Poinsettia Lane and west of Carlsbad band west of Carlsbad Boulevard. The affordable units will be located in the northeast corner of the Specific Plan (See Exhibit 3). B. Unit Mix The proposed 92 unit affordable apartment project consists of seven separate residential structures. The proposed development includes 36 one bedroom (39%), 44 two bedroom (48%) and 12 three bedroom units (13%). C. Other Features and Amenities Within each unit, hook-ups for a washer and dryer will be provided. Also, the project will feature an approximately 2,500 square foot community building, community laundry facilities; a "tot-lot'' with playground equipment; a swimming pool; a private pedestrian trail system and 267 parking spaces. POINSETTIA PROPERTIES AUGUST 27,1998 PAGE 3 IV. DEVELOPMENT TEAM The Specific Developer for the Specific Plan has retained Bridge Housing Corporation (Bridge) to develop the affordable housing project. Bridge has developed and managed numerous affordable housing projects throughout the United States. Bridge has previous experience in the City of Carlsbad, having developed the highly successful 344 unit Villa Loma affordable apartment project. The Architect for the project is Brad Burke of Studio E Architects. The architect has designed several award winning projects throughout the State. V. SITE A. Site Control The site is currently owned by the partnership which is developing the Poinsettia Properties Specific Plan, The site will be contributed to the Bridge as part of the financial contribution to the affordable project by the master developer. B. Land Cost The site is currently valued at approximately $2.9 million. The cost of the land will be verified through an appraisal at a later date. C. Site Characteristics The entire Specific Plan area is currently vacant. Surrounding land uses include a mobile home park to the south, a car dealership, office uses and motels to the west, the Poinsettia Transit Station, a mobile home park and South Carlsbad State Beach to the west, and vacant land to the north. The proposed Specific plan is considered to be a transient orientated design. By this, it is intended that all residents of the Specific Plan will be able to take advantage of the close proximity to mass transit (bus and rail) and retail businesses, and automobile trips will be reduced. POINSETTIA PROPERTIES AUGUST 27,1998 PAGE 4 VI. AFFORDABILITY A. Rent and Income Levels Bridge Housing Corporation has elected to restrict the rent levels to all 92 affordable units to households with incomes not exceeding 60% of the area median (AMI). The affordable project will be financed in part through the use of tax credit bond issuance. The affordability requirements of the Tax Credit Allocation Committee (TCAC), which regulates tax credit bonds, are more stringent than the City’s Inclusionary Housing Ordinance. TCAC requires that 20% of the units be restricted to 50% of AMI, 40% of the units be restricted to at 60% of AMI, and the remaining units be restricted at 80% of AMI. Therefore, the project will ultimately be much more affordable than either the requirements of the City’s Inclusionary Housing Ordinance or TCAC. 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 sigruficant demand for affordable housing for families which will improve the jobs/housing balance. 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 Element/Consolidated 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 proposed project meets the priorities, goals and objectives of the City for affordable housing. VII. CONSTRUCTION PHASING The attached Affordable Housing Agreement has been drafted such that once the developer receives approval of the Affordable Housing Agreement and Site Development Plan the developer will be allowed to proceed with construction of 230 market rate housing units. The 230 market rate units represent 44% of the total number of market rate units (525) permitted to POINSETTIA PROPERTIES AUGUST 27,1998 PAGE 5 be constructed within the project as part of this agreement. This agreement does not include the market rate or affordable housing units related to Planning Area 6. Therefore, the total number of housing units covered by the attached affordable housing agreement is 617-525 market rate and 92 affordable. After the 230th market rate 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 of the foundations are complete for 92 apartment units. After construction begins on the affordable housing units, builders will be permitted to obtain building permits for an additional 149 market rate housing units before construction must be corydefe on the affordable housing project. The total number of building permits that may be issued before construction must be complete on the affordable housing project is 379, which represents 72% of the total number of market rate units permitted within the development and covered by this agreement. 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 146 market rate units (28% of total market rate units). The construction phasing noted above allows the developer 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 Affordable Housing Agreement is also consistent with the inclusionary housing ordinance which requires concurrent construction of the affordable housing units. VIII. ENTITLEMENTS The Specific Plan for the Poinsettia Properties development was approved by the City Council on January 20,1998. Subsequent to the Council's action, the project was approved, with minor modifications by the California Coastal Commission. The minor modifications must be approved by the Planning Commission and the City Council. The Planning Commission is scheduled to hear the amendments at their September 19,1998 meeting. The Council will hear the matter shortly thereafter. Future approval of the site development plan for this affordable apartment project 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 (92 units) is attached for review POINSETTIA PROPERTIES AUGUST 27,1998 PAGE 6 by the Housing Commission at this time. Staff is recommending that the Housing Commission recommend approval of the Site Development Plan to the City Council. IX. X. 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. 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 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. The developer 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 is a separate issue which will be addressed at a future date with the affordable housing developer, Bridge Housing Corporation. Any conditions of financial assistance provided to the affordable housing developer will be set forth in a separate agreement. POINSETTIA PROPERTIES AUGUST 27,1998 PAGE 7 Staff is recommending approval of the proposed affordable housing project, as presented, to satisfy the inclusionary housing obligation of the Specific Plan developer, HSL/ BP/ Magellan, LLC. As required by the Inclusionary Housing Ordinance, the developer and the City must enter into an Affordable Housing Agreement prior to recordation of a final map for development within the Poinsettia Properties Specific lan. As mentioned previously, the Affordable Housing Agreement presented for review and a 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 Poinsettia Properties affordable housing project and the related affordable housing agreement, in substantially the form presented at this time,. XI. EXHIBITS 1. Housing Commission Resolution No. 98-012 2. Draft Affordable Housing Agreement 3. Vicinity Map/Planning Area Map 4. Reduced Plan Exhibits 5. Full-Size Plan Exhibits 1 2 5 ‘C 4 c * E 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT HOUSING COMMISSION RESOLUTION NO. 98-012 REQUEST FOR RECOMMENDATION OF APPROVAL TO THE CITY COUNCIL OF AN AFFORDABLE HOUSING AGREEMENT AND SITE DEVELOPMENT PLAN FOR THE CONSTRUCTION OF 92 AFFORDABLE APARTMENT UNITS IN PLANNING AREA 5 TO SATISFY THE INCLUSIONARY HOUSING REQUIREMENTS FOR THE POINSETTIA PROPERTIES SPECIFIC PLAN APPLICANT: HSL/BP/MAGELLAN, L.L. C CASE NO.: SDP 98-09 WHEREAS, HSL/BP/Magellan, L.L.C, the developer of the Poinsettia Properties Specific Plan has proposed to construct 92 apartment units affordable to lower income households as a means to satisfy a portion of their affordable housing obligation as permitted by Carlsbad Municipal Code Section 21.85 of the City’s Inclusionary Housing Ordinance; and 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 27th day of August, 1998, hold a special public meeting to consider said proposal to construct 116 affordable housing apartment units; and WHEREAS, at said special 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. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. The project is consistent with the goals and objectives of the City of Carlsbads Housing Element, Consolidated Plan, the Inclusionary Housing ordinance, and the Carlsbad General Plan. 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 3. 4. 5. Conditions: The project will provide a total of 92, 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 August 27, 1998, the Housing Commission ADOITED Resolution No. 98-012 recommending APPROVAL to the City Council of 92 affordable apartment units in Planning Area 5 of the Poinsettia Properties Specific Plan in order to satisfy the requirements of the Inclusionary Housing Ordinance, and the related draft affordable housing agreement as proved by the applicant. That the Housing Commission recommends that the City Manager or his designee be authorized by the City Council to execute the Affordable Housing Agreement as presented by the applicant to the Commission on August 27, 1998, and subject to review and approval by the City Attorney. 1. Recommendation of approval is granted for Site Development Plan 98-09, incorporated by reference and on file in the Housing and Redevelopment Department. Development shall occur substantially as shown unless otherwise noted in the conditions of project approval by the City Council. 2. The affordable housing units shall be deed restricted for “the useful life of the project” which is a minimum of 55 years. 3. 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 by the applicant on August 27, 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. ... ... ... ... HC RES0 NO. 98-012 PAGE 2 # 4 i .i 1 5 E 7 e 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 20 PASSED, APPROVED, AND ADOPTED at a special meeting of the Housing Commission of the City of Carlsbad, California, held on the 27th of August, 1998, by the following vote, to wit: AYES NOES: ABSENT: ABSTAIN: KATHLEEN DUNN-WELLMAN, CHAIRPERSON CARLSBAD HOUSING COMMISSION DEBORAH K. FOUNTAIN HOUSING AND REDEVELOPMENT DIRECTOR HC RES0 NO. 98412 PAGE 3 EXHIBIT 2 RECORDING REQUESTED BY: City of Carlsbad WHEN RECORDED MAIL TO: City of Carlsbad City Clerk's Office Attn.: City Clerk 1200 Carlsbad Village Drive Carlsbad, California 92008 (Space above for Recorder S Use) AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY This AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY ("Agreement"), entered into this day of , 1998, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to as the "City"), and HSL/BP/Magellan, L.L.C. (hereinafter referred to as the "Developer"), is made with reference to the following: A. The Developer is the owner of certain real property in the City of Carlsbad, in the County of San Diego, California (hereinafter referred to as the "Subject Property") described in "Attachment A", which is attached hereto and incorporated herein by this reference. B. The Developer wishes to construct a total of 669 residential units (hereinafter referred to as the "Master Development") on the Subject Property. The City has approved the Poinsettia Properties Specific Plan (the "Specific Plan") for the Master Development. The City issued the approval subject to certain Conditions of Approval, including a condition requiring at least fifteen percent (1 5%) of the units in the Master Development to be affordable housing as required by the, City's Inclusionary Housing Ordinance (CMC Chapter 2 1.85). C. The Master Development will consist of 8 individual Planning Areas. Planning Area six will contain up to 52 apartment units. The inclusionary housing obligation for Planning Area 6 will be provided entirely within Planning Area 6. The developer of Planning Area 6 will be required to enter into a separate Affordable Housing Agreement prior to the issuance of a building permit. D. The Developer has indicated that it intends to meet its inclusionary housing requirement for Planning Areas 1,2,3,4,5,7 and 8 by constructing, or causing to be constructed, a minimum of 92 apartment units in Planning Area 5 of the Specific Plan and as further described in "Attachment C." E. The Developer is required by the Conditions of Approval to enter into an Affordable Housing Agreement as required and with the content specified by the City's Inclusionary Housing Ordinance, Carlsbad Municipal Code ("CMC") Chapter 2 1.85). This Agreement is an Affordable Housing Agreement pursuant to Section 21.85.020(b)(5) of CMC Chapter 2 1.85, and shall be executed and recorded 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. Satisfaction of Affordable Housing Obligation and Conditions of Approval. In order to satisfy the Conditions of Approval of (SP, CT. etc.), and the requirements of the City's Inclusionary Housing Ordinance (CMC Chapter 2 1.85), Developer shall cause a minimum of ninety-two (92) units of the Master Development to be affordable to lower-income households (the "Affordable Units"), according to the schedule and terms contained herein. 2. Number and Type of Affordable Units. Developer shall construct, or cause to be constructed, on the Subject Property at least ninety-two (92) apartment units (hereinafter referred to as the "Affordable Multifamily Units"). 3. Terms Governing Provision of Affordable Multifamily Units 3.1 Location of Multifamily Units. A minimum of ninety-two (92) of the Affordable Multifamily Units shall be constructed in Planning Area 5 of the Specific Plan. 3.2 Size and Bedroom Count. The Affordable Multifamily Units shall include one, two, and three bedroom units in the numbers and with the square footage indicated in "Attachment B" to this Agreement. 3.3 Affordability Requirements. The Affordable Units shall be available to households with incomes not exceeding 80% of the median income for San Diego County, adjusted for actual household size. Monthly Rents of the Affordable Units shall not exceed 1/12th of 30% of 80% of median income for San Diego County, adjusted for assumed household size appropriate for the unit. For purposes of this Agreement, "Rent" shall include a utility allowance as established and adopted'by the City of Carlsbad Housing Authority, as well as all monthly payments made by the tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities associated therewith, including and separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant. 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 upon request to the City of Carlsbad Housing and Redevelopment Department. With respect to each Affordable Unit, the affordability requirements of this Section 3.3 shall continue for fifty-five (55) years from the date of issuance of a Certificate of Occupancy by the City for such unit or another comparable unit based upon substitution provisions pursuant to the Regulatory Agreement. The affordability requirements of this Section 3.3 shall be set forth in the Regulatory Agreement between the Developer or its successor and the City, provided for below, which shall supersede this Agreement upon recordation of the Regulatory Agreement. -2- 3.4 Affordable Housing Developer. Developer has indicated it will contract with an affordable housing developer to develop and construct the portion of the Affordable Multifamily Units to be constructed in Planning Area 5. Developer shall obtain prior City approval of the affordable housing developer and proposed development agreement for these units (the "Affordable Housing Development Agreement") prior to execution. . 3.5 Schedule for Developing Affordable Multifamily Units. Developer shall provide the Affordable Multifamily Units pursuant to the following schedule and as described in Attachment C: 3.5.1 Prior to the approval of any Final Map for the Master Development, this Agreement shall be duly executed, and recorded immediately thereafter. 3.5.2 Prior to the issuance of any building permit within the Master Development, the Developer shall receive approval of a Site Development Plan for all of the Affordable Multifamily Units included in Planning Area 5. 3.5.3 Prior to the issuance of any building permit within the Master Development, the Developer shall record an executed Affordable Housing Agreement for the Affordable Multifamily Units in Planning Area 5, in a form approved by the City. 3.5.4 Developer has indicated it will contract with an affordable housing developer to develop the Affordable Multifamily Units to be constructed in Planning Area 5. 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. City Approval of Documents The following documents, to be approved in writing by the City, shall be used in connection with the rental of Affordable Units. 4.1 A marketing plan consistent with the terms of this Agreement, establishing the process for seeking selecting and 'determining the eligibility of tenants of the Affordable Units. 4.2 Form of Rental Agreement. 4.3 A Property Management Plan. 4.4 A Form of Regulatory Agreement between the Developer of the affordable project and City (the "Regulatory Agreement"), following the format designated by City. 5. Compliance Reports. Following completion of construction of any of the Affordable Multifamily Units, a Compliance Report meeting the requirements of Section 2 1.85.170 of the Inclusionary Ordinance, verifying compliance of all completed Affordable Multifamily Units with the terms of this Agreement and certified as correct by a third-party, shall -3- be submitted annually to the Housing and Redevelopment Director. If similar reports on some or all of 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 portion of the Affordable Multifamily Units covered by such reports, provided that copies are provided on an annual basis to the Housing and Redevelopment Director with a third party certification addressed to the City. 6. Release of Subiect Property 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 Subject Property and shall run with and burden the Subject Property until terminated in accordance with Section 13 hereof. Until portions of the Subject Property are released from the burdens of this Agreement pursuant to this Section 6, the 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 issuance of certificates of occupancy for all of the Affordable Multifamily Units, the entire Subject Property, with the exception of Planning Area 5, shall be released from the burdens of this Agreement. The burdens of this agreement shall remain in full force and effect and recorded against Planning Area 5or the 55 year duration of this agreement. 7. Default. Failure of the Developer to cure any default in the Developer's obligations under the terms of this Agreement within ninety (90) days after the delivery of a notice of default from the City (or where the default is of the nature which cannot be cured within such ninety (90) day period, the failure of the Developer to commence to cure such default within the ninety (90) day period or the Developer's failure to proceed diligently to complete the cure of such a default within a reasonable time period. but in no event not greater than 180 days, will constitute a failure to satisfy the Conditions of Approval with respect to the Subject Property and the requirements of Chapter 21.85 of the CMC and the City may exercise any and all remedies available to it with respect to the Developer's failure to satisfy the Conditions of Approval and Chapter 21.85 of the CMC, including but not limited to, the withholding of building permits for the market rate units within the Master Development. 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 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 -4- 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. The provisions of this section shall survive any release or termination of this Agreement. 10. Insurance Requirements. Developer shall obtain, at its expense, comprehensive ’ general liability insurance for development of the Subject Property naming Indemnitees as additional named insureds with aggregate limits of not less than five million dollars ($5,000,000), for bodily injury and death and property damage, including coverages for contractual liability and products and completed operations, purchased by Developer from an insurance company duly licensed to engage in the business of issuing such insurance in the State, with a current Best’s Key Rating of not less than A-V, such insurance to be evidenced by an endorsement which so provides and delivered to the City Clerk prior to the issuance of any building permit for the Subject Property. 1 1. Notices. All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registered or certified mail, return receipt requested, to the party to receive such notice at the addressed set forth below: TO THE CITY OF CARLSBAD: CITY OF CARLSBAD Housing and Redevelopment Department Attn: Housing and Redevelopment Director 2965 Roosevelt Street, Suite B Carlsbad, California 92008-23 89 TO THE DEVELOPER: HSL/B PlMagellan, L .L. C. Attn: Doug Avis 5055 Avenida Encinas, Suite 210 Carlsbad, California 92008 Any party may change the address to which notices are to be sent by notifying the other parties of the new’address, in the manner set forth above. 12. the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. Integrated Agreement. This Agreement constitutes the entire Agreement between 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. This Agreement, and any section, subsection, or covenant contained herein, may be amended only upon the written consent of Developer and the Community Development Director. 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. -3- 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 full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. DEVELOPER HSL/BP/MAGELLAN, L.L.C. CITY CITY OF CARLSBAD A Municipal Corporation By: By: DOUGLAS M. AVIS MARTIN ORENYAK Community Development Its: Director APPROVED AS TO FORM: Name: Title: RONALD R. BALL City Attorney -6- STATE OF CALIFORNIA 1 COUNTY OF -1 ) ss. On -> 199 , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) idare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hisherhheir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ' and, WITNESS my hand and oficial seal. Notary Public in and for said State -7- ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY -8- ATTACHMENT B LOCATION, SIZE, AND BEDROOM COUNT OF AFFORDABLE UNITS - 9- ATTACHMENT C BUILDING PERMT PHASING PLAN -10- . # of Building Permits & Type Released -. BUILDING PERMIT PHASING PLAN % of Total Permits for Project Phasing 230 market rate building permits. 92 affordable apartment units 149 market rate building permits 146 market rate building permits 617 Units Receive Approval of a Site Development Plan and the recordation of an Affordable Housing Agreement by City Council. All building permits issued and foundations complete, inspected and approved for 92 apartment units. 3 7% and 15% 24% 24% 100% Final Certificate of Occupancy must be issued for at least 92 rental units and rent restricted at the affordable rates. TOTAL Comments I Allowed to proceed with Planning Areas 5,7 & 8. Final maps allowed on all but Planning Area 6, or total of 52 units. At this point, there could be a total of 379 market rate units under construction which 61% of the total # of units w/in the project. All affordable units shall be complete prior the construction of the market rate development of the final Planning Area. Excludes Planning Area 6 which will have a separate affordable housing agreement. -11- I ltf. lo1 EXHIBIT 4 -- v I N u o j I i v 3 'a v e s i t~ v 3 311s navauojdv VIll3SNlOd - n R 2 a k z 3 5: 0 n m; OX 0 4 w', 2; i I VIll3SNlOd I I 59 P ad I I c\I Ea 3 3 a s 6 T T -. g. p. i. c- z t- >+ -I. W" 0 a- Wi J W - .. -_ The Cifv of Carlsbad Housing & Redevelopment Deparbnent A REPORT TO THE HOUSING COMMISSION Item No. 3 Stafl Debbie Fountain Housing & Redevelopment Director DATE: August 27,1998 SUBJECT: SDP 98-12 AFFORDABLE SECOND UNITS AT RANCHO CARRILLO - REQUEST FOR RECOMMENDATION OF APPROVAL TO THE PLANNING COMMISSION AND CITY COUNCIL OF A SITE DEVELOPMENT PLAN AND AFFORDABLE HOUSING AGREEMENT AMENDMENT FOR 50 AFFORDABLE SECOND UNITS IN THE RANCHO CARRILLO MASTER PLAN. I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 98-01 3, recommending APPROVAL to the Planning Commission and City Council of the Rancho Carrillo Affordable Housing Agreement and Site Development Plan SDP 98-1 2 showing the locations and design of 50 affordable second units in the Rancho Carrillo Master Plan. 11. PROJECT BACKGROUND The Rancho Carrillo Master Plan was approved by City Council on October 21, 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 identifies 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. The Rancho Carrillo Master Plan is estimated to include a total of 1,816 total housing units. Pursuant to the City's Inclusionary Housing Ordinance, 15% of these units must be affordable to households at 80% of the San Diego County Median Income. This means that if Continental Homes does eventually build a total of 1,816 units, 1,544 can be market rate units and 272 will need to be affordable units. This is the maximum number of units which could be constructed within the Master Plan. The exact number of market rate and affordable units may be less depending on the final number of units approved for development within the Master Plan. r_ Rancho Carrillo HC Repor August 27, 1998 Page 2 On March 3, 1998. the City Council approved SDP 97-15 along with an Affordable Housing Agreement with Continental Homes for a 1 16 unit affordable housing rental project in a portion of Village B. The 116 affordable rental units allow Continental Homes to construct a total of 775 housing units for Phase I in the Master Plan. Of these 775 units, 659 will be market rate units and 116 will be affordable to lower income households. The Rancho Carrillo Affordable Housing Agreement provides the required timing for construction of the 116 units of affordable housing in relation to the construction of the 659 market rate units. This current application proposes to identify the locations and general design of 50 second units which are scattered throughout the Master Plan area in a total of seven of the seventeen residential villages. This application also proposes that the 50 second units be counted toward Continental Homes’ inclusionary requirement for further development of market rate units in the Master Plan. At this time Continental Homes is going through the Preliminary Review process for the second half of Village B. The second half of Village B will be developed with approximately 127 one, two and three bedroom ownership townhomes. A portion of these units (approximately 84 total) will be made available to low income households to complete Rancho Carrillo’s Inclusionary requirement. The Site Development Plan for Phase I1 of Village B will be brought before the Housing Commission at a later date for review. At buildout as currently anticipated, the Rancho Carrillo Master Plan will provide approximately 250 Inclusionary units distributed as follows: . 116 one, two and three bedroom apartment units in Phase I of Village B 50 second dwelling units in Villages G, H, J, K, M, Q and R Approximately 84 one, two and three bedroom ownership units in Phase I1 of Village B. * * The exact number of Inclusionary units in Phase I1 of Village B will be worked out as a part of the future Site Development Plan. A future amendment to the Rancho Carrillo Affordable Housing Agreement will be processed concurrently with the future Site Development Plan for Phase TI of Village B. 111. PROJECT DESCRIPTION A. Location The second units are proposed for Villages G, H, J, K, M, Q, and R of the Rancho Carrillo Master Plan as shown on the accompanying Site Development Plan (Exhibit A).The first 19 second dwelling units will be constructed within Villages H, J, and the first phase of Village Q (Q-1). The builders of these units have already been identified and have agreed to the locations for the second dwelling Rancho Carrillo HC Repor August 27, 1998 Page 3 VILLAGE units as shown within the attached Site Development Plan. Therefore, the 19 second dwelling units in Villages H, J and Q-1 are fixed. These units range in size from 587 to 616 square feet, and provide for studio and one bedroom units. The floor plans and elevations for these units are shown on Exhibits B through R of the attached Site Development Plan LOCATIONS TOTAL NUMBER OF UNITS The second units in Villages G, K, My 4-2, 4-4, and R are proposed for later phases of development of the Rancho Carrillo Master Plan. These villages propose a total of 3 1 second dwelling units. Builders have not yet been identified for these 3 1 second dwelling units. Therefore, the locations of these 3 1 second units are anticipated to be as shown on the attached Site Development Plan (Exhibit A). Because the builders have not yet been selected for the second phase of development as related to the second dwelling units, the developer has requested some flexibility in locating the sites for the subject 31 second dwelling units. Therefore, with approval of this application, the developer/builder will be allowed to administratively relocate up to 50% of the second dwelling units within each identified Village in which they were originally approved. For example, four second units are proposed for Village G. This means that a total of four second units will be constructed in Village G. Two of the units will be mandated to be constructed on the lots shown within the approved Site Development Plan (Exhibit A), and the other two may be relocated within Village G, subject to the approval of the Planning Director. The Affordable Housing Agreement would be amended administratively and approved by the Community Development Director to reflect the relocation of the second dwelling unit sites, if deemed necessary. H J Q- 1 The following charts summarize the number and locations of the second units: LOTS 6,12,22,58, & 69 5 6,23,28,43,53, & 61 6 6, 12,30,44, 53,72,77, & 101 8 TOTAL 19 PHASE I FIXED LOCATIONS FOR ZND DWELLING UNITS - Rancho Carrillo HC Repor August 27, 1998 Page 4 VILLAGE LATER PHASES 50% OF THESE UNITS MAY BE RELOCATED WITHIN THE SAME VILLAGE I LOCATIONS G K TOTAL NUMBER OF UNITS LOTS 358,362,376, & 390 4 LOTS 84,93,96,102,109,128, 138, & 153 8 M 4-2 LOTS 245,258,262,283,290,300, & 307 7 LOTS 113, 137,144, & 157 4 I 4-4 1 LOTS 217,227,234 I 3 I R-3 ~ ~~~~ ~~ ~~~~ LOTS 166,187,190,197, & 204 5 TOTAL 31 As shown, 19 second units are proposed for Phase I and 3 1 second units are proposed for later phases of the Rancho Carrillo Master Plan for a total of 50 second units in the Master Plan. B. Unit Mix 1. Phase I of the Rancho Carrillo Master Plan (Second dwelling units for Villages H, J, and Q-1) The floor plans and elevations for the second units in Phase I (Villages H, J, and Q-1) are shown on Exhibits B through R. The second dwelling units proposed for Village H are 587 square feet studio units. The second dwelling units in Villages J and Q-1 are one bedroom units and range in size from 61 1 square feet to 616 square feet. The Planning Department has determined that the floor plans for these units are consistent with the City’s applicable Codes and Policies and that the architecture is consistent with the Rancho Carrillo Master Plan. The Housing and Redevelopment Department has determined that these units are consistent with the Housing Commission’s Guidelines for Second Dwelling Units. .. 11. Later Phases of the Rancho Carrillo Master Plan (Second dwelling units for Villages G, K, M, Q-2,4-4, and R-3) As noted previously, the guest builders have not yet been identified for the later phases of the Rancho Carrillo Master Plan. As such, it is not possible for the applicant to provide the exact floor plans and elevations for these second units. Therefore, prototypical floor plans as shown within the attached Site Development Plan on Exhibits S, T, and U have been -. Rancho Carrillo HC Repor August 27, 1998 Page 5 provided by the applicant. Six prototypical floor plans are proposed and range in size from 323 SF to 640 square feet. Both studio and one bedroom prototypical second unit floor plans are proposed. The smaller second units are anticipated to be developed on the smaller lots within the identified Villages. The following table shows which floor plans can be located in Villages G, K, M, 4-2, Q-4 and R-3: VILLAGES WHICH MAY UTILIZE IDENTIFIED FLOOR PLANS PLAN A 1 323 sf 1 GandK I G, M, 42, Q4 and R-3 E I 620sf 1 G, M, QZ, Q4 and R-3 F I 640sf It should be noted that not all of the prototypical floor plans approved with this application will necessarily be used by the applicant or guest builders. In other words, of the prototypical floor plans ultimately approved by the Planning Commission, it will be left to builder discretion as to the mix of the prototypicals used for the construction of the second dwelling units. The builders may choose to use a variety of the approved prototypical floor plans or they may choose to use only one of them according to the table noted above. If approved as presented, the developerhuilder has discretion to select one or more of the prototypical designs for the second dwelling units to construct a total of 3 1 second dwelling units in later phases of the Master Plan at the locations defined by the final approval. As presented, the Housing Commission will approve the prototypical floor plans for the 3 1 second dwelling units and allow the final plan to be selected by the builder and approved through the administrative second dwelling unit permit. As long as the permit application is consistent with one of the prototypical floor plans identified in the attached Site Development Plan, the Housing Commission would not review the units again. The Planning Department has determined that the prototypical floor plans proposed by the applicant at this time all meet existing development standards. Except for Prototypical Plan A (323 sf), which is below the desired 400 square feet, all of the prototypicals meet the Housing - Rancho Carrillo HC Repor August 27, 1998 Page 6 Commission Guidelines for development of second dwelling units. It should be noted again that the Prototypical Plan A will be allowed in Villages G and K only, which have smaller lots overall. The exterior elevations and architecture will be reviewed by the Planning Department when the Administrative Permits for these units are submitted. At that time, the Planning Department’s review will ensure that the architecture for these units are consistent with applicable codes as well as the Rancho Carrillo Master Plan. C. Second Unit Features and Amenities Although several different second units are proposed, including studios and one bedrooms, there are several features that all of the units provide. All units will have their own separate entrance exclusive of the main unit, a hook-up for a personal washer and dryer, a bathroom, kitchen area, some storage space, and off street parking. IV. DEVELOPMENT TEAM At this time, except for 50 lots owned by Shea Homes within Village J, Continental Homes is the owner of the entire Rancho Carrillo Master Plan area. Continental Homes will not however be the only developer of the Master Plan as guest builders will construct some of the villages. For the development of villages with second dwelling units in Phase I of the Master Plan, Toll Brothers will develop Village H, Shea Homes will develop Village J and a portion of Village Q- 1, and Monarch Communities will also be developing a portion of Village Q- 1. All of these companies are established builders in the development community . The guest builders for Phase I development of second dwelling units have already been identified as noted above. Therefore, they are already aware of their requirement to provide second dwelling units within their Villages and have provided the floor plans and design shown in the attached Site Development Plan. It is not yet known who will be the guest builders of the later phases of the Master Plan. Consequently, it will be the responsibility of the applicant, Continental Homes, to disclose to future guest builders the requirement to construct the second units consistent with the approved Site Development Plan. Planning Department Staff will review the administrative permits required for second dwelling units and will ensure that the units are constructed in compliance with this approval and in conjunction with the respective development of the market rate units. - Rancho Carrillo HC Repor August 27, 1998 Page 7 A. Site Control Except for the 50 lots owned by Shea Homes in Village J, the entire Rancho Carrillo Master Plan area is currently owned by Continental Homes. The second dwelling units may be developed by either Continental Homes or other guest builders. B. LandCost The value of the individual lots proposed for second units vary. C. Land Characteristics Rancho Carrillo is a 690 acre Master Plan located south of Palomar Airport Road, between El Fuerte Street and the City limits. The Master Plan area has already been graded as part of the mass grading permit previously issued by the City. The second dwelling units will be scattered throughout the Master Plan. All of the second units will be in close proximity (within approximately % mile) to an elementary school that will be constructed by the San Marcos School District in Village S which is located in the central portion of the Master Plan. The Carrillo Ranch Community Park is also located in the central portion of the Master Plan and is adjacent to the future school site. The Rancho Carrillo Master Plan is in close proximity of existing and future employment opportunities in the industrial corridor on the north side of Palomar Airport Road and future bus service on Melrose Drive. VI. AFFORDABILITY A. Rent and Income Levels As mandated by the Second Dwelling Unit Ordinance, if rented, the rental price of each second unit shall not exceed an amount equal to 30% of the gross monthly income of a low-income household, adjusted for household size, at 80% of the San Diego County median income. Second Dwelling Unit Affidavits of Compliance are required to be signed by the property owner prior to the issuance of the Second Dwelling Unit Administrative Permits. B. Target Population The affordable second dwelling 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 jobshousing balance. Since the second dwelling units are spread throughout the Master Plan, this will provide a good integration of affordable housing within the market rate development. -. Rancho Carrillo HC Repor August 27, 1998 Page 8 C. Terms of Affordability VII. As mentioned above, each second dwelling unit will require an Affidavit of Compliance establishing the maximum rental rate of each second unit. Concurrently with approval of the Site Development Plan, the applicant is applying for an amendment to the Rancho Carrillo Affordable Housing Agreement to give the developer affordable housing credits for these second dwelling units as related to the obligation set forth by the City’s Inclusionary Housing Ordinance . The Affordable Housing Agreement will ensure the affordability of the second dwelling units for the project’s useful life or 55 years. D. Housing Element Consistency In conjunction with the Rancho Carrillo Affordable Housing Agreement, the affordable housing in Rancho Carrillo 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). CONSTRUCTION PHASING The second dwelling units will be constructed concurrently with the market rate units in the villages in which they are proposed. It is likely that the first 19 second dwelling units within Villages H, J and Q-1 will be under construction within the next few weeks because they have already received approval of the required administrative second dwelling unit permits. However, Rancho understands that they will not actually receive credit for producing the second dwelling units to satisfy the Inclusionary Housing Obligation until the attached Site Development Plan and Amended Affordable Housing Agreement receive final approval. The market rate units within Villages H, J and Q-1 are currently allowed to be constructed in a manner consi’stent with the originally approved Rancho Carrillo Affordable Housing Agreement. The previously approved Affordable Housing Agreement describes the phasing of the development of 659 market rate units in Phase I of the Master Plan in conjunction with the 116 unit affordable housing project in Village B. Future amendments to the agreement will be required for the development of later phases of affordable housing for the Rancho Carrillo Master Plan. This application proposes an amendment to the Rancho Carrillo Affordable Housing Agreement and is for a Site Development Plan to identify the locations and design of the second dwelling units to be used to satisfy a portion of the Master Plan’s obligation under the City’s Inclusionary Housing Ordinance. _- Rancho Carrillo HC Repor August 27, 1998 Page 9 VIII. ENTITLEMENTS The Master Plan for the Rancho Carrillo development, as amended, was approved by the City Council on October 2 1 , 1997. Since the attached Site Development Plan provides for 50 or fewer units, it requires only Planning Commission approval. The Housing Commission will then be making a recommendation on the proposed Site Development Plan, which includes the locations of the 50 second units as well as floor plans and elevations, to the Planning Commission. The Site Development Plan is attached for review by the Housing Commission at this time. Staff is recommending approval of the proposed Site Development Plan for 50 second dwelling units of affordable housing. The Amended Affordable Housing Agreement requires final approval by the City Council. Therefore, on the Agreement, the Housing Commission will be making a recommendation to the City Council. Staff is recommending approval of the attached Amended Affordable Housing Agreement for Rancho Carrillo. ON-GOING REOUIREMENTS OF THE CITY The City will monitor the development of the project and its on-going management. Second Dwelling Unit Affidavits of Compliance will be required for each lot proposed for a second unit. The City requires that the affidavits be given to any perspective home buyer prior to entering into a sales contract for the property. SUMMARY AND RECOMMENDATIONS It is the role of the Housing Commission to make recommendations to the Planning Commission and/or City Council based on several considerations with respect to affordable housing projects. These are: a 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. a The proposal’s consistency with the City’s affordable housing policies and ordinances as expressed in the Housing Element, Inclusionary Housing Ordinance, Second Dwelling Unit Ordinance, etc. a 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 Second Dwelling Unit Site Development Plan for the Rancho Carrillo Master Plan will serve the needs and priorities set forth within the City’s Housing Element. It is also consistent with the City’s - Rancho Carrillo HC Repor; August 27, 1998 Page 10 Affordable Housing Policies and Second Dwelling Unit Ordinance. As shown by the attached floor plans and elevations, the Second Dwelling Units will produce affordable housing which will be desirable to live in. The applicant is requesting no financial assistance for the development of the subject units. In summary, Staff is recommending that the Housing Commission approve a recommendation to the City Council to approve the proposed amendment to the Rancho Carrillo Affordable Housing Agreement, and to the Planning Commission to approve Site Development Plan 98-12 for the design and location of affordable second dwelling units in the Rancho Carrillo Master Plan, in substantially the form presented at this time. The amendment to the Rancho Carrillo Affordable Housing Agreement will allow Continental Homes to receive inclusionary credits for the proposed second dwelling units and to final maps for an additional 333 housing units. XI. EXHIBITS 1. Housing Commission Resolution No. 98-0 13 2. Housing Commission Guidelines on Development of Second Dwelling Units 3. Amended Rancho Carrillo Affordable Housing Agreement 4. Site Development Plan - Exhibits A-U (Site Plan, Floor Plans & Elevations) 1 2 3 4 5 6 7 S 9 10 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 26 27 2s HuLJSING COMMISSION RESOLUTION NO. 98-013 THAT THE HOUSING COMMISSION RECOMMEND TO THE CITY COUNCIL APPROVAL OF AN AMENDED AFFORDABLE HOUSING AGREEMENT AND TO THE PLANNING COMMISSION APPROVAL OF A SITE CONSTRUCTION OF 50 AFFORDABLE SECOND DWELLING UNITS TO SATISFY A PORTION OF THE AFFORDABLE HOUSING REQUIREMENT FOR THE RANCHO CARRILLO MASTER PLAN PER THE CITY OF CARLSBAD’S INCLUSIONARY HOUSING ORDINANCE. APPLICANT: CONTINENTAL HOMES DEVELOPMENT PLAN SDP 98-12 FOR THE CASE NO.: SDP 98-12 WHEREAS, the developer of the Rancho Carrillo Master Plan has proposed to identify the locations and general design of 50 second dwelling units which are generally located throughout the Master Plan area in a total of seven of the seventeen residential villages; and WHEREAS, the developer of the Rancho Carrillo Master Plan has proposed an amendment to the Rancho Carrillo Affordable Housing Agreement which will allow Continental Homes to receive inclusionary credits for the proposed second dwelling units; and 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 27th day of August, 1998, hold a public meeting to consider said proposal to construct 50 second dwelling units to meet a portion of the affordable housing obligation for the Rancho Carrillo Master Plan; 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 factor relating to the proposal to construct said second dwelling units; and NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1 1 2 3 4 5 6 7 8 9 IO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1. 2. 3. 4. The above recitations are true 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 maximum of fifty (50) studio and one bedroom second dwelling units to satisfy the Inclusionary Housing obligation for the Rancho Carrillo Master Plan. The project, therefore, has the ability to effectively serve the City’s housing needs and priorities as expressed in the Housing Element and the Consolidation Plan. The amendment to the Rancho Carrillo Affordable Housing Agreement proposes that the fifty (50) second dwelling units be counted toward Continental Homes’ inclusionary requirement for further development of market rate units in the Rancho Carrillo Master 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 August 27, 1998, the Housing Commission ADOPTED Resolution No. 98-013, recommending APPROVAL to the City Council of an Amended Affordable Housing Agreement which will allow for fifty (50) second dwelling units to satisfy a portion of the Inclusionary Housing obligation for the Rancho Carrillo Master Plan, and recommending APPROVAL to the Planning Commission of the related Site Development Plan (SDP 98-12). Conditions: 1. 2. 3. 4. Recommendation of approval is granted for the Affordable Housing Site Development Plan 98-12, 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 final project approval by the Planning Commission or City Council. The affordable housing units shall be deed restricted for “the useful life of the project” which is a minimum of 55 years. Subject to the approval of the Planning Director, up to 50% of the second dwelling units in Villages G, K, M, 4-2, Q-4 and R of the Rancho Carrillo Master Plan may be relocated within the same village at the time of approval of the administrative Second Unit Permit, subject to compliance with all requirements of Section 21.10.015 of the Carlsbad Municipal Code and the Housing Commission’s Guidelines for Development of Second dwelling units. Second dwelling units must be dispersed throughout the Villages similar to the dispersal shown on Exhibit “A” of SDP 98-12. Revisions to the locations of second dwelling units may be administratively approved by the Planning Director. If the City determines that the proposed revision necessitates an amendment to the Rancho Carrillo Affordable Housing Agreement, then the proposed amendment, and any necessary modifications to exhibits to reflect the amendment, shall be administratively approved by the Community Development Director. An application 2 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 5. 6. for these types of revisions shall only require the signatures of the owner of the particular phase of a Village in which the revision will occur. Any proposed revision shall be in compliance with all requirements of Section 2 1.10.01 5 of the-Carlsbad Municipal Code and the Housing Commission Guidelines for Development of Second Dwelling Units. At the time of review of the administrative Second Dwelling Unit Permit applications, the Planning Director shall determine that all proposed second dwelling units in the Rancho Carrillo Master Plan are in conformance with the requirements of Section 2 1.10.15 of the Carlsbad Municipal Code and the Housing Commission’s Guidelines for Development of Second Dwelling Units. In addition, the second dwelling units in Villages H, J and Q-1 shall be developed as set forth in the approved SDP 98-12. The second dwelling units developed in Villages G, K, M, Q-2, Q-4 and R shall be compatible in design and appearance with the prototypical units approved by SDP 98-12. Each unit shall have its own separate entrance, have a hookup for a washer and dryer and have a minimum size of 323 square feet in Villages G and K only and a minimum size of 432 square feet in Villages M, Q2,Q4 and R. Upon final approval of said affordable housing project and prior to final map approval, the applicant shall execute the Amended Affordable Housing Agreement with the City of Carlsbad in substantially the form presented to the Housing Commission and provided in the staff report dated August 27, 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 special meeting of the Housing Commission of the City of Carlsbad, California, held on the 27th of August 1998, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: KATHLEEN DUNN-WELLMAN, CHAIRPERSON CARLSBAD HOUSING COMMISSION DEBORAH K. FOUNTAIN Housing and Redevelopment Director 3 EXHIBIT 2 City of Carlsbnd GUIDELINES ON DEYELOPMENT OF SECOND DWELLING UNITS I Approved: 5/8/97 Purpose of Guidelines: To assist the Housing Commission and City CounciVHousing and Redevelopment Commission or Planning Commission in review of projects which have proposed development of Second Dwelling Units to meet the requirements to produce affordable housing units under the City of Carlsbad’s Inclusionary Housing Ordinance. To assist housing developers to better understand the desires of the Housing Commission, and City CouncilMousing and Redevelopment Commission or Planning Commission to produce quality affordable housing which appropriately meets the needs of the Carlsbad community. To assist City staff as they work with housing developers to satisfy their affordable housing obligations under the Inclusionary Housing Ordinance Guidelines: The Guidelines developed by the Housing Commission and adopted by the City Council are as follows: 1. 2. 3. 4. Size Limits: The units shall be no larger than 640 square feet (per the Second Dwelling Unit Ordinance) and no smaller than 400 square feet, unless compelling evidence is presented by the developer which justifies a smaller size unit. Design Features: Same as those required by the Second Dwelling Unit Ordinance, with the addition that the second dwelling unit must provide a one (1) bedroom floor plan if the unit can be accessed directly from the main dwelling unit. Affordability: The affordability requirements shall be the same as those set forth within the Second Dwelling Unit Ordinance. Occupancy Restrictions: There shall be no restrictions on the total household income for occupancy purposes. If the unit is rented, however, the rent must be set at a rate which is affordable to households at 80% or below of the San Diego County Median Income. This is the same as the Second Dwelling Unit Ordinance. SDU Guidelines May 8,1997 Page 2 5. 6. 7. Form of Restrictions: The form of the restriction on the property shall be the same as that indicated within the Second Dwelling Unit Ordinance, with the addition that the Affordable Housing Agreement be recorded against the property as well. Monitoring: An annual review of the second dwelling units will be completed using a random sampling of existing units. It is anticipated that the sampling will include an appropriate representation (Le., 20% approximately) of the units which have been constructed as of the date of the review/monitoring visit. Other Limitations: As a general guideline, second dwelling units can be used to satisfy the entire affordable housing requirement for housing projects which have less than 100 units total. For projects which provide for 100 units or more, the general rule shall be that no more than 20% of the total inclusionary housing requirement may be satisfied through the development of second dwelling units. This guideline limit is in addition to the language in the Inclusionary Housing Ordinance which requires City Council/Housing and Redevelopment Commission and/or Planning Commission to give final approval to allow any use of second dwelling units as an alternative to otherwise required construction of new inclusionary units. ApDlicabilitv: As Guidelines, the above criteria have flexibility for application purposes. On a case by case basis, the City Council/Housing and Redevelopment Commission, Planning Commission and/or Housing Commission may consider projects for approval which are not entirely consistent with these guidelines, if the projects are otherwise deemed appropriate and consistent with the Second Dwelling Unit Ordinance. These guidelines do not amend any existing ordinance related to the Second Dwelling Units or Inclusionary Housing requirements. 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 - EXHIBIT 3 (ABOVE SPACE FOR RECORDER’S USE) FIRST AMENDED AND RESTATED AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY This FIRST AMENDED AND RESTATED AFFORDABLE HOUSING AGREEMENT IMPOSING RESI‘KLCTLONSUNAL PKOWKT Y (“Agreement”), entered into this day of , 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: 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. City and Developer have previously entered into that certain Affordable Housing I 2--- - Agreement Imposing Rest- tions on Real Property dated Febru , 1998 (“Initial Agreement”), which was recurded on , 1998, in the Official Records of San Diego County as Document No. 1998- . City and Developer want to amend and restate the Initial Agreement by this Agreement to provide for the orderly and efficient development of the Subiect Property in compliance with the Citv’s Inclusionary Housinq Ordinance. 41 C. Developer wishes to construct fX43 1,108 residential units and fifty (50) secondary dwelling un3s (“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 94-0 1, SDP 95-1 2 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 (15%) of the units in the Master Development to be affordable housing as required by the City’s Inclusionary Housing Ordinance, Carlsbad Municipal Code Chapter 2 1.85 (“CMC Chapter 2 1 .8511). 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. Q. Developer has indicated that it intends to meet its inclusionary housing requirement (IJ for Phase1 of the Master Development by constructing, or causing to be constructed, 116 units ;thin Village B of the Master Plan and (ii) for a portion of the balance of the Master Development by constructing. or causing to be constructed, 50 secondary dwelling units dispersed throughout the Master Development. -€E. 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 .S.@Q(S>{52 21.85.020(2), and shall be signed prior to the approval of additional Final Maps for the Subject Property. The Initial Agreement permitted the approval of Final Maps for 775 Awellinp units for the Subiect Propertv, which included 116 affordable housing rental units. This Agreement shall permit the approval of Final Maps for up to 1,158 dwelling units for the Subiect Property, which includes a total of 166 affordable housing rental units. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. Incorporation of Recitals: *Amendment and Restatement of Initial Agreement. The Recitals are hereby incorporated in this Agreement. The Initial Agreement is hereby superseded and amended and restated in its entirety by 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 tintative maps approve“ by the City within’the Master Plan, and’the requirements of CMC Chapter 21.85, Developer shall cause a minimum of one hundred sixteen (116) inultifaniilv dwelling units and a maximum of fifty (50) secondary dwelling units of Phase 1 of the Master Development to be ai-fordable to lower-income households (the “Afiordable Units”), according to the schedule and terms contained herein. 3. Number and Type of Affordable Units. Developer shall construct, or cause to be I constructed, one hundred sixteen (1 16) multifamily dwelling units (“Affordable Multifamily Units”) and a maximum of fifty (50) secondary dwelling units (“Affordable Second Dwelling Units”). I- 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. The Affordable Second Dwelling Units shall be constructed within Villages G. H. J, K, M, 0 and R 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. The Affordable Second Dwelling Units shall include studios and one bedrooms in the numbers and with the square footages indicated in ‘‘Attachment B” to this A rlreement . 4.3 Affordability 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 1/12‘” of 30% of the designated percentage of median income for San Diego County, adjusted for assumed household size appropriate for the unit. Second Dwelling Units are not required to be rented. However. if rented. the monthly rents (including utility allowance as published bv the United States DeDartment of Housinc and Urban Development) for the Affordable Second Dwellin? Units shall not exceed 1/12“’ of 30% of 80% of the 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 and Affordable Second Dwelling Unit, the affordability requirements of this Section 4.3 shall continue for fifty-five (35) 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. Developer or west builders shall construct the Affordable Second Dwellinrr, Units. Property owner must sign affidavits of compliance prior to the issuance of the required Second Dwelling Unit Administrative Permits. The affidavits shall be provided to all perspective home buyers prior to entering into a sales contract for the propertv. 4.5 Schedule for Developing Affordable Multifamily Units. Developer shall provide the Affordable Second Dwelling Units coiicurreiitly with the related single faniilv home construction. The Affordable Multifamily Units shall be develoDed pursuant to the following schedule: 4.5.1 Prior to the approval of any additional Final Map2 for the Master Development, the following shall be in place: - 4.5.1.1 This Agreement shall be duly signed and recorded against the Subiect ProDerty. 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. 4.5.1.3 Site Development Plan 98-12 shall be aDproved for the Phase 1 Affordable Second Dwelling Units. 4.5.2 After this Agreement is duly signed and recorded aeainst the Subiect Property, wbuilding permits shall not be issued for more than 5is 338. or 34%. of the total market rate units included in Phase 1 of the Master Development prior to the Phase 1 Affordable Multifamily Units (1 16 total) in Village B Phase 1 Affordable Second Dwelling Units (19 total) in Villages H. J and 01 be= under construction. For purposes ot 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 and the Phase 1 Affordable Second Dwelling Units. The 558 338. or 34%. of the total -building permits for market rate units included in Phase 1 of the Master Uevelopment may be allocated among the villages in Phase 1 of the Master Development in any combination as Developer determines in its sole discretion.- total number of building permits which may be issued for market rate units may be increased bv seven (7) permits for each additional one (1) Affordable Second Dwelling Unit under construction. which is greater than the nineteen [ 19) total Affordable Second Dwellinv Units noted above but less than the maximum permitted of fifty (50) Affordable Second Dwellinn Units. - 4.5.3 Building permits shall not be issued for more than 833 754, or 76%. of the total of the market rate units included in Phase 1 of the Master Development prior to completion of the construction of the Phase 1 Affordable Multifamily Units in Village B (1 16 units total) and the Phase 1 Affordable Second Dwellinrr Units (19 units total). After final inspection is complete by the Building Department and a final Certificate of Occupancy is issued, for the Phase 1 Affordable Multifamily Units (1 16 total) and the Phase 1 Affordable Second Dwelling Units (19 total), building permits may be obtained for the remaining 449 =market rate units in Phase 1 of the Master Development, for a total of 1,1588 dwelling units e€ in the Master Development (429 992 market rate units + 1466 Affordable Multifamily Units and Affordable Second Dwelling Units -L 333 mad& - _. . . .. .. .. ~ .. M). 1 hc total number 01 bulldine pcriiiits which mav be issued lor market - rate units mav be increased bv seven (7) permits for each additional one (11 Affordable Second Dwelling Unit under construction. which is greater than the nineteen ( 19) total Affordable Second Dwelling Units noted above but less than the maximum peiiiiitted of fiftv (50) Affordable Second Dwelling Units. 4.5.4 The Initial Agreement permitted the approval of a final map or maps for 775 dwelling units. After Site Development Plan 98-12 is approved for the Affordable Second Dwelling Units and this Agreement is duly sicwed and recorded against the Subiect Property, a final map or maps may be approved for 1.1588 dwelling units (992 market rate units + 166 affordable units, includinc a maximum 01'50 second dcvellinr! units). 4.5.5 Building permits shall not be issued for more than 1,1858 of the dwelling units of the Master Development prior to the Phase 2 Affordable Multifamily Units in Villme B being under construction. I 4.6 Compliance Report. Following completion of construction of the Phase 1 Affordable Multifamily Units, a Compliance Report meeting the requirements of CMC Section 21 35.180, 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 City Approval 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 se'eking, 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. Terms Regarding Provision of Affordable Second Dwelling Units. Provision of the Affordable Second Dwelling Units shall be governed bv the following terms: 5.1 Location of Units. The Affordable Second Dwelling Units shall be located in the villages of the Master Plan as approved in Site Development Plan 98-12. The lots identified as including an Affordable Second Dwellinp Unit shall be required to have an approved Administrative Permit in compliance with the requirements of CMC Section 2 1.10.0 15. unless otherwise approved bv the Community Development Director. prior to construction on the lot. 5.1.1 Subiect to the approval of the Planning Director, up to fifhr percent [50%) of the Affordable Second Dwelling Units in Villages G, K, M, 0-2, 0-4 and RS of the Master Development may be relocated within the same village at the time of approval of the Affordable Second Dwelling Unit Administrative Permit. subiect to compliance with all requirements of CMC Section 2 1.10.0 15 and the Housing Commission's Guidelines for Development of Second Dwellinc Units. Affordable Second Dwelling Units must be dispersed throughout the villages similarly to the dispersal shown on Exhibit "A" of Site Development Plan 98- 12. 5.1.2 If the City determines that the proposed revisions to the locations of Affordable Second Dwellinn Units necessitates an amendment to this Agreement, then the proposed amendment, and any necessary modifications to exhibits to reflect . the amendment. shall be administratively approved by the Community Development Director. An application for this tvpe of revision shall onlv weds rcciiiire the signature of the owner of the particular phase of a village in which the revision will occur. Anv proDosed revision shall be in compliance with all requirements of CMC Section 2 1.10.0 15 and the Housing Commission's Guidelines for Development of Second Dwelling Units. 5.1.3 At the time of review of the Affordable Second Dwelling Unit Administrative Permit, the Planning Director shall determine that all proposed Affordable Second Dwelling Units in the Master Plan are in conformance with the requirements of CMC Section 2 1.10.0 15 and the Housing Commission's Guidelines for Development of Second Dwellinri Units. In addition, the second dwelling units in Villalzes H. J and 0-1 shall be developed as set forth in the approved SDI' 95-12. Affordable Second Dwelling Units developed in Villages G. K. M, 0-2, 0-4 and R shall be compatible in design and appearance with the proto-tyDical units approved by Site Development Plan 98-12. Each unit shall have its own separate entrance, have a hookup for a washer and dryer and have a minin~un~ size of 323 square feet in Villages G and K onlv and a minimum size of432 square feet in Villaces M. 02. 04 and R. 5.2 . __ ... .. . .. 5.22 . Schedule of Development of Second Dwelling; Units. The Affordable Second Dwellinn Units shall be Constructed in the normal course of development with the market rate single-familv units included within the Master Development. The Affordable Second Dwelling Units shall be constructed according to the schedule for constructing the market rate single-family units; provided, however. the construction of the Affordable Second Dwelling Units shall be reasonably proportionate to the construction of the market rate single-family units. 1 6. Release of Subiect Property 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 225m I 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 aB - market rate units shall be released I from the burdens of this Agreement. Upon allocation by the Developer of the building permits for the 226ut’’ through Wm‘‘ market rate units among the villages in Phase 1 of the Master I Development, in any comKnation as Developer determines in its sole discretion, and after the Phase 1 Affordable Multifamily Units (1 16 total) in Village B and Phase 1 Affordable Second Dwelling Units ( 19 total) are under construction, then the 226~“‘ through Wmt” market rate units shall be released from the burdens of this Agreement. Afterfinal inspectioniscomplete, or a final Certificate of Occupancy is issued, for the Phase 1 Affordable Multifamily Units and Phase I Affordable Second Dwelling Units, then the remaining market rate units in Phase 1 of the Master Development shall be released from the burdens of this Agreement. Appropriate adiustments shall be made in the number of market rate units released from the burdens of this Agreement consistent with the increases in building permits pursuant to Subparagraph 4.5.3 above. - - _++ 2. Default. Failure of Developer to cure any default in Developer’s obligations under the terms orthis 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. -]E. Appointment 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. ----fs32. Hold Harmless. Developer will indemnify and hold harmless (without limit as to amount) Czy 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. -+5 lo. Insurance Requirements. Developer (or its successor or successors) shall obtain, at its (or theirTexpense, 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 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, - * 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 To the Developer: CONTINENTAL RANCH, INC. Attn: Dave Lother riqL I-" b 12230 El Camino Real, Suite 300 San Diego, California 92 130 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. Integrated Agreement. This Agreement constitutes the entire agreement between theTarties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. __flz) 13. following tlizate certificates of occupancy have been issued for all Affordable Units. Duration of Agreement. This Agreement shall remain in effect for 55 years -1 14. be recorded gainst the Subject Property in the Official Records of the County of San Diego. Recording of Agreement. The parties hereto shall cause this Agreement to - 15. Severability. In the event any limitation, condition, restriction, covenant or provision conxined 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. I 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: MAFClTN ORENYAK Community Development Director CONTINENTAL RANCH, INC., a Delaware corporation .- I ATTACHMENT “A” (Subject Property) I ATTACHMENT “B” phase 1 Multifamily Size and Bedroom Count) V il lage Locat ions - 1-1 Lots 6. 12.22,58 & 69 Lots 6,23. 28.43, 53 & - 61 QL Lots 6. 12,30,44. 53, 72.77 &lo1 Lots 358.362,376, & - G - 390 - J - - - K Lots 84,93.96, 102, 109. 128, 138,& 153 290,300 & 307 Lots 113, 137, 144, & - 157 Lots 166. 187, 190, 197 - - - M Lots 245,258,262,283, 0-2 0-4 Lots 2 17,227,234 - R-3 .. - Number of Square Footage Number of Bedrooms of Unit Units Size 5 587 square feet - 6 6 16 square feet - 8 61 1 square feet (5) 6 16 square feet (3) 4 323 to 640 square feet - 8 323 or 500 square feet - 7 432 to 640 square feet - 4 432 to 640 square feet - 3 432 to 640 square feet - 5 432 to 640 sqiiare feet Total Number - - - - - - - - - One 700 S.F. 12 Two 900 S.F. 48 Three 1100 S.F. 56 TOTAL: 116 SECOND DWELLING UNITS I The City of Cmlmbad Roumixqg & Redevelopment Depawtznent AREFORTTOTHE HOUSXNe CO~XSSXON DATE: JUNE 11,1998 - CONTINUED TO JULY 9,1998 - CONTINUED TO AUGUST 27,1998 SUBJECT: SECTION 8 RENTAL ASSISTANCE UPDATE I. RECOMMENDATION Informational item only. No action required. 11. BACKGROUND The City of Carlsbad Housing Authority (HA) administers the Section 8 Tenant-Based Rental Assistance program. This program is funded by the Housing and Urban Development Department (HUD). Current funding supports 503 units to assist very low-income households. 111. DISCUSSION Staff will provide the Housing Commission with a presentation on the rental assistance program. The presentation will give a general overview of the program; who we assist, statistical information, the Family Self-sufficiency component and challenges in the current rental market. I The CiCy of Carlrsbad Houeing & Redevelopment Department AREPORT TO THE HOUSING COMMISSXON Staff: Lsilarrl Hiner Management Andyd I xtem NO-5. DATE: JUNE 11,1998 - CONTINUED TO JULY 9, I998 - CONTINUED TO AUGUST 27,1998 SUBJECT: SAN DIEGO COUNTY REGIONAL MORTGAGE CREDIT CERTIFICATE PROGRAM - INFORMATIONAL REPORT I. RECOMMENDATION No action is required. Informational report only. 11. PROJECT BACKGROUND Since 1994, the City of Carlsbad has participated with the County of San Diego and other participating cities to form a Regional Mortgage Credit Certificate (MCC) Program for the purpose of increasing homeownership opportunities for low and moderate income households. As a participant in the San Diego County Regional MCC Program, the City will receive an MCC allocation each year the Regional MCC Program is successful in its application to the California Debt Limit Allocation Committee. 111. PROJECT DESCRIPTION The MCC Program, authorized in the Tax Reform Act of 1984, is a publicly-sponsored financial assistance program which provides assistance to first time home buyers in the purchase of single family housing. The MCC operates as an IRS tax.’credit. With an MCC, the qualified home buyer can take a federal income tax credit of twenty percent (20%) of the annual interest paid on the mortgage. The tax credit reduces the federal income taxes due to the federal government from the home buyer, resulting in an increase in the home buyer’s net earnings. Increased home buyer income results in increased buyer ability to qualify for a mortgage loan. In accordance with program regulations, a home buyer qualifies if their household income does not exceed $50,800 for. a family of one to two persons (100% of median San Diego County income) or $58,420 for a family of three or more persons (115% of median San Diego County income). A “qualified” home must have a purchase price at or below $149,933 for a new home and $167,232 for a previously occupied home (these prices represent 90% of the average San Diego County purchase price). An MCC can be used for new or existing single family homes throughout Carlsbad, including single family detached homes, condominiums, half plexes, or townhouses. The home buyer applies for an MCC through any of the participating lenders at the same time he/she makes a formal application for a mortgage loan. SAN DIEGO COUNTY REGIONAL MORTGAGE CREDIT CERTIFICATE PROGRAM - INFORMATIONAL REPORT JUNE 11, 1998 PAGE 2 1994 1995 Since 1994, the City has received a total of $1,098,190 in MCC credit to assist first time home buyers purchase a home in Carlsbad. As of May 31, 1998, 39 households, of which nine (9) were low income, received an MCC to assist them with the purchase of their home. The City has a remaining balance of $107,514 in MCC credit. It is anticipated that the balance remaining will assist approximately four (4) first time home buyers. 199,969 223,949.00 10 323,531 281,482.00 12 MCC Credit 1 MCzsCydit I I Year I Available MCCs Issued 1996 1997 304,880 343,776.00 13 176.772 141.469.00 4 Funding for this program has been significantly reduced each year. Funding for 1998 was reduced 47 percent from the prior year. It is unknown if the City of Carlsbad will continue to receive funding through the Regional MCC Program for first time home buyer assistance. IV. EXHIBITS 1. San Diego County Regional Mortgage Credit Certificate Program Summary L The City of C-lEbad JXousdng & Redevelopment Department A-PORT TO THE HOUSXNG COMMISSXON staii: lLeilarri niner Management Analy-t ltem~o. 6 JUNE 11,1998 - CONTINUED TO JULY 9,1998 L CONTINUED TO: I DATE: AUGUST 27,1998 SUBJECT: CITY OF CARLSBAD SINGLE FAMILY RESIDENTIAL REHABILITATION PROGRAM - INFORMATIONAL REPORT I. RECOMMENDATION No action is required. Informational report only. 11. PROJECT BACKGROUND Since 1994, the City of Carlsbad has provided loans and grants to low income households throughout the City to assist in the rehabilitation of owner-occupied single family or mobile homes. The City’s Single Family Residential Rehabilitation Program is administered by the County of San Diego Housing Authority on behalf of the City of Carlsbad and has been funded through the City’s Cominunity Development Block Grant (CDBG) and HOME Program 111. PROJECT DESCRIPTION The City offers four residential rehabilitation loadgrant programs to eligible property owners: 1) Below Market Interest Subsidy Loan for those able to qualify; 2) Zero Interest Deferred Loan; 3) Elderly/Handicapped Grant; and 4) Weatherization Grant. A summary of these loadgrant programs is attached as Exhibit 1. Eligible participants are limited to owner occupants of singe family dwellings or mobile homes with a gross houseliold income less than 80 percent of the San Diego County median income (low income households). Although the program is open to all eligible resident property owners, city-wide efforts will target those homes located in Census Tract 179.00, which includes the Barrio area. This census tract represents the highest concentration of lower income households in Carlsbad. The rehabilitation of owner occupied single family homes is funded entirely tlirougli the City’s Community Development Block Grant (CDBG) and HOME Program. Over the years, the City has allocated a total of $862,152 in CDBG and HOME funds for administration and implementation of the Single Family Residential Rehabilitation Program. As of May 3 1, 1998, the City has a remaining balance of $56 1,449 available. c Description CDBG HOME CITY OF CARLSBAD SINGLE FAMILY RESIDENTIAL REHABILITATION PROGRAM INFORMATIONAL REPORT JUNE 11, 1998 PAGE 2 Available Expended to Funding ($) Date ($1 Balance ($) 260,610.73 601 541 .OO Mobile homes (4) Administration TOTAL 1 ~~p I Single Family (14)l p250,511.85) 24,580.00 25,610.54 862.1 51.73 300.702.39 561 -449.34 To date, the City of Carlsbad has provided residential rehabilitation loans/grants to fourteen (14) single family home owners and four (4) mobile home owners, with approximately $275,092 in CDBG and HOME funds. of approximately twenty (20) single family dwellings and three (3) mobile homes. There are currently ten (IO) applicants on the City’s interest list and the County will begin processing the first three applicants by June 30, 1998. It is anticipated that the balance remaining will assist in the rehabilitation Rehabilitation of housing will preserve the integrity of single family homes in the community and provide a stable, safe and sanitary living environment for lower income residents. Additionally, the rehabilitation of housing will prevent the potential degradation of neighborhoods. N. EXHIBITS 1. City of Carlsbad Single Family Residential Rehabilitation Program Summary i The City of Carlsbad Houainsg dk Redeuelopment Department AREPORT TO THE HOUSXNG COMMXSSXON I Staff: CraigD.Ruiz J-j-ent 2Lnul-t ltem No. 7 DATE: JUNE 11,1998 - CONTINUED TO JULY 9,1998 - CONTINUED TO: AUGUST 27,1998 SUBJECT: AFFORDABLE HOUSING UPDATE I. RECOMMENDATION Informational item only. No action required. 11. DISCUSSION Since its inception, the Housing Commission has reviewed numerous affordable housing projects and programs. The Affordable Housing Project Status Chart (Exhibit No. 1) details the various affordable housing projects in the City. Staff will provide the Commission with an oral presentation regarding the affordable housing projects and programs contained in the Chart. LII. EXHIBITS 1. Affordable Housing Project Status Chart h m cu x Q) u 8 u J s? 3 3 n 0 -I 0 cn E Ctl 0 $1 C 2 5% 7- -u 0 a f 3 w a *e 1 $6 0 h LW os v1 .c, 7 cct 3; Y v, M oi CJ W 0 . Q c VI a, .- Y I 3 &n N r- r-4 CJ t: a, - cd E: a, Y .c z ZE sx" E a 0 $y ;a" (d 3 .Y I * c: c