HomeMy WebLinkAbout1998-12-10; Housing Commission; Minutes.- e
Minutes of HOUSING COMMISSION
Time of Meeting: 6:OO P.M.
Date of Meeting: DECEMBER 10,1998
Place of Meeting: CITY COUNCIL CHAMBERS
CALL TO ORDER:
Chairperson Wellman called the Regular Meeting to order at 6:08 p.m.
PLEDGE OF ALLEGIANCE:
Chairperson Wellman led the pledge of allegiance.
ROLL CALL:
Present: Chairperson Wellman, Commissioners Escobedo, Latas, Noble, and Walker
Absent: Commissioners Calverley, Rose, and Scarpelli
Staff Present: Debbie Fountain, Housing and Redevelopment Director
Craig Ruiz, Management Analyst
APPROVAL OF MINUTES:
ACTION: Motion by Commissioner Walker, and duly seconded, to approve the Minutes of the Special
Meeting of November 19, 1998, as submitted.
Escobedo, Latas, Noble, Walker, Wellman
VOTE: 5-0-0
AYES:
NOES: None
ABSTAIN: None
COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA:
There were no comments from the audience.
NEW BUSINESS:
1. CT 98-05 - ARIE DE JONG, JR.. FAMILY TRUST - APPLICATION TO PURCHASE 4.2 AFFORDABLE
HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT FOR THE AIRE DE JONG, JR.,
FAMILY TRUST.
Craig Ruiz reviewed the background of the request as described in the Staff Report and stated that there is an SDG&E
easement on the property.
Mr. Ruiz described the feasibility of the on-site proposal; the relative advantages and disadvantages of an off-site
proposal; and how this project advanced the City’s Housing Goals and Strategies.
Mr. Ruiz stated that Staff recommends this project with two slight changes to the Housing Agreement as follows:
> Delete the words “Western Pacific Housing” from the fist paragraph of the Affordable Housing Agreement
(Exhibit 3 in the Staff Report).
Delete the last sentence in the “Hold Harmless” section that reads, “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,
>
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HOUSING COMMISSION MINUTES
December 10,1998
Page 2
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.”
Mr. Ruiz said that this sentence pertains to insurance for affordable housing, which the applicant does not need to
provide since they are not building affordable units.
Chairperson Wellman asked if there were any questions of Staff.
Commissioner Escobedo asked if this site is close to Laurel Tree.
Mr. Ruiz responded that it is relatively close.
Chairperson Wellman asked who within the City determines what the developer will pay.
Mr. Ruiz responded that the Finance Department sets the fee using a formula that is determined on the lst of July each
year.
Chairperson Wellman opened the item for discussion among the Commission members. There was no discussion.
Chairperson Wellman invited the applicant to speak.
Mr. Jack Henthorn, Jack Henthorn & Associates, 5375 Avenida Encinas, Suite D, Carlsbad, 92008, addressed the
Commission and stated that he is the representative for the Arie de Jong, Jr. Family Trust. He said that he is in
agreement with Staffs recommendation with the two proposed changes mentioned by Mr. Ruiz.
Chairperson Wellman asked if there were any questions for Mr. Henthorn. There were none.
Chairperson Wellman opened the item for discussion among the Commission members.
Commissioner Noble pointed out that this project will help to get Poinsettia completed quicker.
Chairperson Wellman opened the public testimony and issued the invitation to speak.
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.
ACTION: Motion by Commissioner Noble, and duly seconded, that the Housing Commission ADOPT
Resolution No. 98-9 16, recommending that the City Council APPROVE a request by THE
ARE DE JONG, JR. FAMILY TRUST, to purchase 4.2 Affordable Housing Credits in the
Villa Lorna housing project in order to satisfy the affordable housing obligation of the Aire
de Jong project under the City’s Inclusionary Housing Ordinance with the corrections
presented by Staff.
Escobedo, Latas, Noble, Walker, Wellman
VOTE: 5-0-0
AYES:
NOES: None
ABSTAIN: None
ANNOUNCEMENTS:
Ms. Fountain announced that Craig Ruiz has been working hard on the Laurel Tree and Carillo Ranch projects. She
added that the Laurel Tree project should close on Tuesday.
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HOUSING COMMISSION MINUTES
December 10,1998
Page 3
Ms. Fountain stated that the next meeting would be January 14,1999. She added that the Housing Element workshop
would probably be held in January.
Commissioner Escobedo mentioned that she received a phone call from a woman named Lisa from Oceanside. Lisa
expressed extreme concern for the plight of the homeless in Oceanside and the lack of affordable housing for low-
income folks. Apparently Lisa would like to contact all levels of government about this problem. Commissioner
Escobedo gave Lisa several phone numbers of individuals to address Lisa’s concerns.
Ms. Fountain stated that concerns of this sort could be sent to the City of Carlsbad’s Housing and Redevelopment
Department. Staff will direct the person(s) to the correct resource, she said.
Commissioner Noble suggested holding a workshop or brainstorm session to discuss the wants and desires of the
Housing Commission after one of the Housing Commission meetings. He would like to see the results of the workshop
forwarded to the City Council.
Ms. Fountain responded that this would be accomplished at the Housing Element workshop that will probably be held
in January.
ADJOURNMENT:
By proper motion, the Regular meeting of December 10, 1998 was adjourned at 6:3 1 p.m.
Respectfully submitted, n
DEBBIE FOUNTAIN
Housing and Redevelopment Director
KATHY VAN PELT
Minutes Clerk
MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE APPROVED.
I The City of Carlsbad Housing & Redeuelopxnent Deparfment
AREPORT TO THE
HOUSING CO~XSSXON
Btafi: craig D. ~lliz
Management malm
DATE: DECEMBER 10,1998
SUBJECT: CT 98-05 - ARIE DE JONG, JR. FAMILY TRUST -
APPLICATION TO PURCHASE 4.2 AFFORDABLE HOUSING
CREDITS IN THE VILLA LOMA HOUSING PROJECT
I. RECOMMENDATION
That the Housing Commission ADOPT Resolution No. 98-016, recommending that the City
Council APPROVE a request by THE ARIE DE JONG, JR. FAMILY TRUST, to purchase
4.2 Affordable Housing Credits in the Villa Loma housing project in order to satisfy the
affordable housing obligation of the Arie de Jong project under the City's Inclusionary
Housing Ordinance.
11. BACKGROUND
The applicant, the Arie de Jong Family Trust, is currently processing an application for a
tentative map (CT 98-05) to develop 28 single family homes on approximately 33.4 acres.
Due to the environmental and topographical constraints of the site, approximately 64% of the
site will remain as open space. The project consists of home sites with parcel sizes ranging
from 7,500 to of 18,500 square feet. The development of 28 homes will require the developer
to provide 4.2 units of housing affordable to lower income households as required by the City's
Inclusionary Housing Ordinance.
It is the applicant's position that there are significant economic burdens on the site which
would make it difficult to provide the affordable housing units on-site. Therefore, the
applicant is requesting to purchase Affordable Housing Credits ("credits") in the Villa Loma
project in lieu of on-site construction. The City's Inclusionary Housing Ordinance permits off-
site satisfaction of an inclusionary requirement through participation in a Combined
Inclusionary Housing Project ("Combined Project") if the City Council determines that it is in
the public interest. Purchase of credits in the Villa Loma project constitutes participation in a
Combined Project. There are 126 credits currently available for purchase.
CT 98-05 - DE JONG
DECEMBER 10,1998
PAGE 2
Policies ReFardinp Off-Site Proiects and Purchase of Affordable Housing Credits
The City Council has adopted two policies which address 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 Inclusionary Housing Ordinance.
111. DISCUSSION
The Council Policies, as noted above, 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
advantages/disadvantages 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.
Feasibility of On-site ProDosal
The small size of the developable area, the physical constraints caused by the large
slope areas and a 100 foot wide San Diego Gas and Electric easement which bisects
the property and the on-site environmentally sensitive areas limit the ability to
produce on site affordable units due to restrictions on project yield. Also, the small
scale of the affordable housing project makes the development economically
unfeasible due to the significant financial subsidy which would be required for the
project. Further, the small scale of the affordable housing project makes it unlikely
that the project will generate interest fiom available finding sources.
Relative AdvantaPes/Disadvantapes of an Off-site Proposal
Participation in the off-site project will allow the City to recover the costs
associated with the development of excess affordable housing units in the Villa
Loma Project . .
The Villa Loma Apartment Complex has locational advantages over the on-site
project in terms of direct access to jobs, public transportation, schools, parks as
well as other amenities and services due to the complex being located directly on a
major thoroughfare.
Advancing HousinP Goals and Stratepies
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.
CT 98-05 - DE JONG
DECEMBER 10,1998
IV. 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.
V. EXHIBITS
1.
2.
3. Draft Affordable Housing Agreement
Housing Commission Resolution No. 98-016
Applicant Request to Purchase Credits
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HOUSING COMMISSION RESOLUTION NO. 98-016
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY
OF CARLSBAD, CALIFORNIA, TO RECOMMEND THAT THE CITY
COUNCIL APPROVE A REQUEST BY THE AIUE DE JONG, JR.
FAMILY TRUST, TO PURCHASE 4.2 AFFORDABLE HOUSING
CREDITS IN THE VILLA LOMA HOUSING PROJECT IN ORDER TO
SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE DE
JONG PROJECT UNDER THE CITY'S INCLUSIONARY HOUSING ORDINANCE.
APPLICANT: ARIE DE JONG, JR. FAMILY TRUST
CASE NO: CT 98-05
WHEREAS, THE ARIE DE JONG, JR. FAMILY TRUST, has made application for
Tentative Map CT 98-05 within the City of Carlsbad for the development of a 28 unit residential
subdivision;
WHEREAS, the subdivision of land for 28 residential units requires the developer to provide
4.2 units of housing affordable to lower income households as required by Carlsbad Municipal Code
Section 21.85 of the City's Inclusionary Housing Ordinance;
WHEREAS, the Villa Loma housing project was conceived and developed with City
participation based on the creation of 184 excess affordable housing units which would be available to
satisfy other developers inclusionary housing obligation;
WHEREAS, THE ARIE DE JONG, JR. FAMILY TRUST, 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 10'" day of December, 1998, hold a public
meeting to consider said request for the purchase of Affordable Housing Credits by THE ARIE DE
JONG, JR. FAMILY TRUST;
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;
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City
of Carlsbad, California, as follows:
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1. The above recitations are true and correct.
2. The project is consistent with the goals and objectives of the City of Carlsbad's Housing
Element and 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 December
10, 1998, the Commission recommends that the City Council APPROVE a request by
THE ARIE DE JONG, JR. FAMILY TRUST to purchase 4.2 affordable housing
credits in the Villa Loma housing project in order to satisfy the affordable housing
obligation of the De Jong 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 3 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.
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5.
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 prior to the issuance of a building permit purchase 4.2
Housing Credits. Execution of this Agreement by the parties and payment of the required
fee to the City by the Developer shall hlly 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.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission of
the City of Carlsbad, California, held on the 10th day of December, 1998, by the following vote, to
wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
KATHLEEN DU"-WELLMAN, CHAIRPERSON
CAFZSBAD HOUSING COMMISSION
DEBBIE FOUNTAIN
HOUSING AND REDEVELOPMENT DIRECTOR
HC RES0 NO. 98-016 -2-
- Exhibit 2
Arie de Jong 622 East Mission Road San Marcos, Calajbrnia 92069
' October 15, 1998
his. Deborah K. Fountaiq
Housing and Redevelopment Director
City of Carlsbad ' .
2965 Roosevelt Street, Suite B ,
Cdsbad, CA 92008~2389 '.
Subject: de Jig Property'- Request to Purchase Off-site' Afford'able Housing Credits ... ... ... . __ . .. 1
...
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_I .. . , ._ ' Deal. 'Mi.' Fount
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This lctter r..;'' sehes I, ,-..>,,+ as .-. \--.. a formal -7:- ,l\.,.. .request by the Arie de Jong, 'Jr. &imily Trust to purchase off-site
(CT 98-05} %clL6ona$ houih@o6l;gatio& '.XSr''uest %''in komplimce tvith.actions previously
affior&&&m@~ .. '&;&e yiah&a de$&$mht $0 &fisfy .&& & $i>ng 'property. @&~sion's , . .:<... .-., r' I.. (*''-' pa,*..;; ,-.,, a
, ... I. ,, ,, .. taken by the City Council: ' : " . .:- . *. . ; ! :. .1,.. .;*.. .,
,
The City's inclusionary Ho&g Ordinance (CMC Chapter 21.85) establishes
certain requirements under which residential developers must provide housing
thrit is affordable to lower-income households,as a condition of project approvaI
an@ permit isstlance. The ordin,ance provides that "circumstances may arise' in
which the public .interest would be served by,al'locving some or all ,of the
inclusionary &its associated .I with one project &et0 be prodiiced at an alternative .
site or sites.''
The two inclusionary'h6using options that are available to a developer are that
the developer s&ll either 1) enter into an agreement with the Citi to purchase
affordable credits from ,Villa Lorna; or 2) participate in an off-site combined
'
er.21.85'0ftbe Carlsbad.:.
..
est Quadrant and as appfipriate, in
mniission,that projected the inclusi
he Southwest Quadrant of the Ci
examined whether projected development of the Quadraxit could result in a demand for off-site credits.
exceeding the nurnkr of available credits in the Villa Lorna project. The analysis showed that there
are sufficient excess units (credits) to satisfy the potential demandof the Quadrant.
Printed on Recycled Paper
?
In the case of the de Jong project, there are particular circumstances that wmt the provision of the
inclusionary units off-site in combipation with the existing Villa Lana Apartment project, pursuant
to Council Policy 57 criteria. Significant feasibility issues affect the development of this project on-
site. Contribution to the existing off-site project versus providing a, small (4 unit) low-income
apartment complex on-site will result in increased public benefit, by returning funding currently tied
up in the Villa Loma project for use in other affordable housing activity,
We understand tlis request will be evaluated by a Staff Project Review Committee to determine
compliance with the citeria defrned in Policies 57 and 58. It is also understood that staff will then take *
the Committee’s recommendation to the Housing Commission md City Council.
Please call if you need additional information or if we may be of ahy other assistance.
I
’
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Mr. fuieYde Jong
Tnistee
Arie de Jong, Jr. Family Trust ,
Epc 10s Lire
cc: Mr. Jack Henthorn, Jack Henthorn & Associates
Mr. Craig Ruiz; Housing and Redevelopment Department
.
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DE JONG
COMPARATIVE
PRO FORMA
REVENUE ANALYSIS
1 BEDROOM
2 BEDROOM
3 BEDROOM
RENT UNITS REVENUE
$695 1 $695
$888 2 $1,776
$1,062 1 $1,062
4 $3,533
95% OCCUPANCY $3,356
OPERATING COSTS @ 30% ($1,007)
NET OPERATING INCOME $2,349
DEBT SERVICE INCOME (1.2) $1,958
* Note: The remainder unit obligation of .2 will be met by purchase of offsite credits in the Villa Lorna project.
INCOME SUPPORTED DEBT
LAND DEVELOPMENT COSTS
LAND
ONSITE IMPS
OFFSITE POINSETTIA LANE
PUBLIC FEES
DESlGNlCONSULTANTS
IMPROVED SITE COST
LAND CARRY 18M0
LAND DEVELOPMENT COST
UNIT CONSTRUCTION COSTS
UNIT SIZE
SQUARE FEET (project)
STRUCTURE COST $45.00
ON SITE INDIRECTS 10% STRUCT.
OVERHEAD .04
MARKETING .02
CONSTRUCTION COSTS
LOAN FEES .02
CONST FINANCING
SUBTOTAL FINANCING
PROJECT COST
GAP
$222,992
# lots 2 1 $194,000
$106,000
$25,600
$78,000
$35,000
$438,600
$29,100
$467,700
1 BR 2 BR 3BR
725 1700 1100 3525
$32,625 $76,500 $49,500 $158,625
$12,338
$17,544
$8,772
$1 97,279 $197,279
$4,460
$9,864
$1 4,324 $1 4,324
$664,979 $664,979
$441,986 $441,986
Developer land contribution $194,000
NET GAP Page 1 $247,986
1
PER UNIT NET GAP
PER UNIT GROSS SUBSIDY
DE JONG
COMPARATIVE
PRO FORMA
$61,997
$1 10,497
10120198
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Page 2
DE JONG PROPERTY
OFF-SITE AND COMBINED INCLUSIONARY HOUSING PROJECT
ASSESSMENT WORKSHEET -- BACKGROUND
The following background information is provided to assist you in your assessment.
Own e r/A p p I i ca n t I n f o rm a t i o n :
Owner/Applicant:
Arie de Jong, Jr. Family Trust
Attn: Mr. Arie de Jong
622 E. Mission Road
c/o Hollandia Dairy
San Marcos, CA 92069
760-744-3222
Applicant’s Representative:
Jack Henthorn & Associates
Attn: Mr. Jack Henthorn
5375 Avenida Encinas
Suite D
Carlsbad, CA 92008
760-438-4090
Off-sitelcombined Project Name:
VILLA LOMA APARTMENTS
Description of Project with lnclusionary Housing Obligation:
De Jong Property, CT 98-05, is a proposed 30-lot, 28-unit, single family development located on
a 33.4 gross-acre parcel with a 4.2-unit affordable housing obligation.
On-site Affordable Housing Description:
The de Jong Property Affordable Housing project would be a 4-unit multi-family, apartment
project occupying two lots with units ranging from 1 to 3 bedrooms. The units would be offered
in a maximum rent range which is affordable to households earning incomes of 80% of the Area
Median Income. To achieve financial feasibility, the project would require a net subsidy of
almost $248,000 (even assuming a fully constructed pad is provided by the developer and unit
revenues are based on a 95% occupancy rate factor).
Proposed Off-site Project Description:
The Villa Loma project is a 344-unit apartment development in which all units are restricted and
affordable to households with incomes not exceeding 60% of the San Diego County Median.
Villa Loma was developed by La Terraza Associates, with Bridge Housing Corporation as the
Managing General Partner. The complex contains 1 , 2, 3 &4 bedroom units.
Villa Loma was financed with assistance from the City of Carlsbad and the Carlsbad
Redevelopment Agency. The assistance was structured in such a way as to create affordable
units which would be marketed exclusively by the City to “other developers” in order to satisfy an
affordable housing obligation. The Villa Loma Apartment complex is a Combined Project
according to the lnclusionary Housing Ordinance, and developers may participate in this as an
“off-site” method of satisfying their affordable housing obligation. (This is also an approved site
for the Greystone Cove and Ocean Bluff projects.)
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Participation in Villa Loma Apartments by the applicant would be in the form of a purchase of
Affordable Housing Credits (Credits) under terms established by City Council Policies Numbered
57 and 58. If the applicant is afforded the opportunity to purchase Credits, the de Jong Property
tentative map would require the purchase of 4.2 Credits to satisfy its inclusionary housing
requirement.
6. Description of On-site Project Constraints:
Specific constraints exist which would affect an on-site affordable apartment project's feasibility.
These include the uneconomical small scale of the affordable project, the inconsistency in land
use adjacent to single family detached residential uses, and a significant product type difference
between the affordable rental units and the proposed single-family market units that will be
developed in this project.
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DE JONG PROJECT
OFF-SITE AND COMBINED INCLUSIONARY HOUSING PROJECT
ASSESSMENT WORKSHEET --WORKSHEET
1. Feas ibility of the On-site Proposal
. a. Are there significant feasib'lity I issues due to factors such as project size, site constraints,
amount and availability of required subsidy, and competition from multiple projects that make an
on-site option impractical?
0 The on-site affordable project is not of sufficient size to be a viable apartment project. Given the
small size of the project and its restricted rental structure, onsite management and maintenance will
be difficult.
The small scale of the affordable housing project also makes it unlikely that the project will generate
interest from funding sources.
The market units in this project would be required to absorb over $6,900 per unit so that land value
could be contributed by the developer. This figure would rise to almost $15,800 per unit if the
applicant is required to build the units on site and close the post land development gap of almost
$248,000.
Based on the estimated restricted rental prices of the affordable units the applicant will be facing an
average subsidy requirement of approximately $62,000 per unit, beyond land contributions. This
would result in each unit being subsidized with approximately $1 10,500.
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b. Will an affordable housing product be difficult to intearate into the proposed market development
because of significant price and product type disparity?
0 Price disparities will be substantial between the low-income rental apartment units restricted at $695-
$1,062 rent and the approved higher-end single-family detached homes which have an estimated
base price range of $350,000 to $400,000.
The integration of 4 affordable apartment units, sized at 725 to 1,100 sq. ft., into the single-family
subdivision with homes of 3,000 to 3,500 square feet on 7,500 to 18,500 sq. ft. lots will result in major
product type disparity on-site. The surrounding area will also be built-out with low density, single-
family detached products consistent with the existing RLM land use designation and market demand.
The on-site project would, therefore, also result in substantial product disparity with the surrounding
development character.
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c. Does the on-site development entity have the capac itv to de liver the proposed affordable housing
on-site?
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The applicant is not experienced in the development of affordable housing.
Affordable housing developers have advised the applicant that it is unlikely that this size of project will
generate interest from funding sources.
2. Relative AdvantaaeslDisadvantaaes of the Off -site Proposa 1,
a. Does the off-site option offer greater feasibilitv and cost effectiveness than the on-site alternative,
particularly regarding potential local public assistance?
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Villa Loma is built and has proven its feasibility; no additional assistance is required.
The applicant's participation in Villa Loma would permit the intended recovery of City investment
provided to the project through utilizing "excess units". These funds could then be used to provide
additional affordable housing. Conversely, the developer's on-site project would create the demand
for additional new subsidy.
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C.
d.
3.
a.
0 The small size of the on-site project could result in additional future subsidy requests related to
operating costs.
Does the off-site proposal have location advantaaes over the on-site alternative, such as
proximity to jobs, schools, transportation, services; less impact on other existing developments,
etc.?
0 The location of the Villa Loma development has advantages over the on-site project in terms of
access to employment in the nearby industrial parks, public transportation, a library, schools, parks,
as well as, other amenities and services due to being located directly on the major thoroughfare, El
Camino Real.
Villa Lorna is a self-contained affordable development in an area designated for higher density
residential development such as condominiums and townhomes.
The on-site proposal could be a source of land use conflicts that typically occur when higher density
development is permitted adjacent to larger lot single family development.
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Does the off-site option offer a development entity with the capac itv to de liver the proposed
project?
The Villa Lorna project is an existing project, developed and managed by a highly experienced and
specialized affordable housing developer.
Does the off-site option satisfy flultiple deve toper ob liaations that would be difficult to satisfy
with multiple projects?
0 Villa Loma project was originally established as a Combined Project, specifically to address this
purpose.
The proposed on-site project would be one of several projects in the southwest quadrant competing
for scarce financial assistance. Villa Loma has already been financed and built and thus, would not
be competing for subsidy financing.
Advancina Housina Goals and St rategy
Does the off-site proposal advance andlor support City housing goals and policies expressed in
the Housing Element, CHAS and lnclusionary Housing Ordinance?
General Plan Housing Element and CHAS Goals:
Villa Loma Apartment affordable project is targeted to the highest priority need identified, larger rental
units for low income households.
The recovery of the City's investment in the Villa Lorna Project through the applicant's participation
will provide for additional resources which are needed to further affordable housing development.
Villa Loma provides a large quantity and diversity of affordable housing stock with its 344 units,
including a generous supply of different size units to meet various housing needs of the community.
lnclusionary Housing Ordinance Policies:
Consistent with the City and public interests to use existing "excess" affordable units before
supporting additional new construction.
In conjunction with the combined Villa Lorna project, the De Jong project will provide for 15% of the
total units for affordable (lower income) residential units. The project also complies with the
lnclusionary requirements as contained in the General Plan Housing Element.
Growth Management Zone, Ord. No. NS-257 Guidelines:
Villa Lorna is coordinated with surrounding properties by providing direct access to a major
Circulation Element Roadway, El Camino Real, as well as circulation and pedestrian access to pbblic
facilities.
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TENTATIVE TRACT MAF DEJONG
CITY OF CARLSBAD, CALIFORNIA
RANCHO AgUA FDIONDA
APN 216-08[
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MAP NO. 823
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APN 216-080-22 APN 216-080-04 SEE SHT. 3 FOR POlNSETnA LANE NOTES THlS AREA
:ET 3
KEY MAP
SCALE: 1”= 150’
Exhibit 3
RECORDING REQUESTED BY:
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk's Office
Attn: Citv Clerk
1200 Carlsbad Village Drive
Carlsbad, California 92008
(Space above for Recorder's Use)
AFFORDABLE HOUSING AGREEMENT
THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this 10* day
of December, 1998, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter
referred to as the "City"), and Western Pacific Housing for the AFUE DE JONG, JR. FAMILY
TRUST., (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 98-05), which provides
conditional approval of the construction of 28 single family dwelling units (Troject").
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 four and two tenths (4.2)
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. 98-05 by reason of the approvals of the Tentative Map of CT 98-05, including and
any other applicable Condition No. listed in Planning Commission Resolution No.
approval.
(b) The Developer shall pay for four and two tenths (4.2) Affordable Housing Credits as
established by the City and as required by Condition No. - of Planning Commission Resolution
No. . The fee shall be paid prior to the Developer receiving a building permit for the project.
3. REMEDIES
Failure by the Developer to perform in accordance with this Agreement will constitute failure
to satisfy the requirements of Chapter 21.85 of the Carlsbad Municipal Code and Condition No. -
of
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. 98-05.
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 registered 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:
Arie de Jong, Jr. Family Trust.
Attn: Arie de Jong
c/o Hollandia Dairy
622 E. Mission Road
San Marcos, California 92069
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.
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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. SEVERABIlLITY
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
Arie de Jong, Jr. Family Trust
By:
(Name)
By:
(Title)
APPROVED AS TO FORM:
City’of Carlsbad, a municipal
corporation
MARTIN ORENYAK
Community Development Director
RONALD R. BALL
CITY ATTORNEY
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ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY