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HomeMy WebLinkAbout2002-11-14; Housing Commission; MinutesMinutes of: HOUSING COMMISSION Time of Meeting: 6:OO P.M. Date of meeting: November 14,2002 Place of Meeting: HOUSING AND REDEVELOPMENT DEPARTMENT OFFICE CALL TO ORDER Vice-chairman Scarpelli called the Regular Meeting to order at 6:07 p.m PLEDGE OF ALLEGIANCE Commissioner Smith led the Pledge of Allegiance. ROLL CALL Present: Staff Present: Commissioners: C. Charles Griffin Renee Huston Doris Ritchie Edward Scarpelli Bobbie Smith Management Analyst: Craig Ruiz Associate Planner : Scott Donnell APPROVAL OF MINUTES Vice-chairman Scarpelli inquired as to whether the $1,200,000 was approved or not. Craig Ruiz said the City Council did approve the Housing Commission’s recommendation. Minutes of September 12,2002, were approved as written. VOTE: 3-0-0 AYES: Griffin, Ritchie, and Scarpelli. NOES: None ABSTAIN: Huston and Smith COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA There was no audience in attendance, who wished to speak at this time. NEW BUSINESS Vice-chairman Scarpelli stated the Annual Housing Production Report Fiscal Year 2001 -2002 would be made by Scott Donnell and Craig Ruiz. Scott Donnell, Planning Department, gave a presentation regarding the Annual Housing Production Report, Fiscal Year 2001 -2002. Vice Chairman Scarpelli inquired as to any questions of Scott Donnell and his presentation. Commissioner Huston said that Mr. Donnell stated in the beginning there are housing needs and there is no penalty if we don’t meet the housing need. She asked if we don’t meet the housing needs often? Scott Donnell answered, yes it does. He said it is very likely we will not meet the housing needs. He doubts we will provide 1,400 units of very low-income housing. HOUSING COMMISSION MINUTES NOVEMBER 14,2002 PAGE 2 of 8 Commissioner Huston asked if most cities make their housing needs. Scott Donnell answered he does not think so. Commissioner Huston inquired as to the repercussion of that. Scott Donnell said the repercussion is that we do have to show that we have the land and the density available to provide all of those units. Actually, cities are only charged with making sure the land is provided, the zoning is there, and we are also charged with making sure our best effort is put forth through our policies and programs. It is recognized that those numbers probably won’t be achieved. The state has other numbers, which they have asked us to provide of what we think our achievable goals, and that is satisfactory to the state. Commissioner Huston stated, in our general plan there is the build out number, what if the needs assessment of SANDAG is not consistent with our general plan build out. What about that? Scott Donnell asked if in terms of the number of units, are the SANDAG growth projections higher? Commissioner Huston said if given a housing needs assessment, Carlsbad needs to build this many units, but yet our general plan only has build out for this amount. If those two numbers aren’t together what then? Scott Donnell answered that so far the city has not had to face that because the amount of vacant land has been plentiful, so it hasn’t been an issue. He continued he doesn’t think it will be an issue with the next housing cycle, 2004-2009, but perhaps after that it might be a an issue because Carlsbad is not the only city in the county now that is starting to realize there is only so much land left. He is unable to answer that question, because it hasn’t been faced yet. Another issue is that we also have caps in terms of how many units can ultimately be built in the city. We can’t exceed that without the vote of the public. Without answering the question, it is an issue that we may have to address. Commissioner Huston made an inquiry about when there is a granny flat, second unit dwelling, is it considered in the count for low-income housing. How does that stand now? Scott Donnell answered, it still goes into the count. Even though it might end up as just a granny flat or a game room for the kids. It is recognized as a low-income housing opportunity. Commissioner Huston stated she has two more questions. Where is Terraces at Sunnycreek, where is it located? Scott Donnell said it is on the eastside of El Camino Real; College and El Camino Real. Craig Ruiz stated that the single-family homes are right at the corner of El Camino Real and College. You actually have to go down College about a quarter of a mile to see the apartments. Vice-chairman Scarpelli asked if there are any further questions. Commissioner Ritchie commented that it looks like the future development will be 781 total units. Scott Donnell inquired if she was asking for affordable housing? HOUSING COMMISSION MINUTES NOVEMBER 14,2002 PAGE 3 of 8 Commissioner Ritchie agreed, yes for affordable housing. She asked if he anticipates the project to be done by June 30,2004? Scott Donnell answered a good chunk of it may be started and some of it may be completed as well. Typically with the large master plans, the affordable housing component goes in first. So for Kelly Ranch, for example, the 120 units might be complete in the next couple of years. Commissioner Ritchie continued asking if that will fulfill our obligation for required units. Scott Donnell said it will not meet our regional share needs assessment, the 1,400 units estimated for very low income, but it is felt that based on the inclusionary requirements, it is meeting that requirement. Commissioner Ritchie said her second question is, how is Carlsbad doing in relation to other cities? Scott Donnell answered that he does not know. Maybe Craig Ruiz has an answer to that. Craig Ruiz answered that Carlsbad is doing better then most cities. Commissioner Ritchie commented that is also her assessment. Scott Donnell said only a few cities actually have an inclusionary housing ordinance. Some cities have a policy and the city of San Diego just passed something to get going on that. Commissioner Ritchie thanked him. Commissioner Huston asked by having an inclusionary housing policy, what is the benefit to the city? Scott Donnell said it insures that affordable housing is built. Developers are required to provide affordable housing. Commissioner Huston said she thought by having that policy, we got something else from the state or the federal government. Scott Donnell answered he is not sure. It is certainly something we had to show the state that we had and that went a long way towards getting our housing element certified. Vice-chairman Scarpelli said the assistance we are receiving from the state and federal are funds made available for affordable housing to the cities and other municipalities. So we are able to take advantage of that because we are offering these projects, which are meeting both state and federal requirements for the funds that are coming into the city for that purpose. Vice-chairman Scarpelli continued, the way we are able to achieve affordable housing is through the inclusionary housing and again for the new member of the Housing Commission for understanding of inclusionary housing what that is referring to is that each builder who builds a unit must provide 15% of the total number of units provided must be affordable and fall in this affordable housing range. So the inclusionary simple refers to the fact they must be included in the project even though it is not required they be in the project such as our first project which was Villa Loma did not exist in the Aviara project, but exists at El Camino Real and Casia Road. HOUSING COMMISSION MINUTES NOVEMBER 14,2002 PAGE 4 of 8 He continued that one of the problems is the increased value of homes, which is attributed to the fact that there is shortage of supply. The developing community complains that a great deal of time is taken to develop a project and time is money in the development business. In addition to that is the amount of development cost per unit. Can you give us an idea of a typical 1800 square foot single-family detached unit in the city of Carlsbad, how long it takes to go through the development process to the permit process? Scott Donnell said that is a tough question. If it is part of a subdivision of 50 homes, typically the permits that would be required and the hearings required before the Planning Commission and the City Council for that number, the processing time would probably be on the order of four to eight months. Then there are a whole host of other issues such as it would have an affordable housing component. The financing or the assistance would need to go through the Housing Commission and then back to the City Council, but if they got through to the City Council on that initial stage, just the project itself, they could then submit the plan check, the construction drawings to build the homes, grade the lots. Vice-chairman Scarpelli said he is talking about the initial application to the city for the subdivision application to the point of pulling a building permit. He understands in the city of Carlsbad that could be well over a two-year time span. Scott Donnell answered that could be true or it could be less. There are so many variables involved. Vice-chairman Scarpelli said from the industry perspective, is what is causing some of the problem in not being able to provide affordable housing, because it is a costly factor. Those costs and time have to be applied to the actual cost to that home. He continued, the second part of that question was the total costs for development fee and assessment for an 1,800 square foot unit in Carlsbad. Can you give us a figure for all the fees and assessments? Scott Donnell said he is unable to give a figure. Vice-chairman Scarpelli said it is his understanding the city of Carlsbad probably fall in one of the highest categories and upwards of $40,000 which again, has to be added as a cost to the building of a home and therefore translates into non-affordable homes. Again, if we are going to be looking at affordable housing, the way we are able to achieve it is through subsidies made available not only through the city, but the state and the federal agencies. However, we need to continue to look at ways in which we can make things more affordable by expediency and possibly less burden on fees and assessments. Commissioner Ritchie asked whether or not we were looking at the needs for senior housing. Do we still own Tyler apartments? Craig Ruiz answered yes we do. Commissioner Ritchie inquired as to if it was working out? Craig Ruiz answered yes it is. Commissioner Ritchie asked if the city is going to continue to manage that? HOUSING COMMISSION MINUTES NOVEMBER 14,2002 , PAGE5of8 Craig Ruiz said there might come a point in the future where we look to sell that property to somebody experienced in owning and operating affordable senior housing and who would place covenants on the property to insure the affordability. A decision has not been made to sell it, but there certainly is the opportunity to do that. Commissioner Ritchie continued that most of our seniors are living alone, singles. They perhaps have special needs. Scott Donnell commented that we do have a senior housing project that has been submitted. Vice-Chairperson Scarpelli inquired as to where that is? Is it on Stiger? Is that going to be senior? Craig Ruiz answered no. That project has gone away. Vice-Chairperson Scarpelli commented that it is being graded now. There is some work going on now. It is between Jefferson and State. Craig Ruiz said it will be a 12-unit condominium project. The project Scott is referring to is further down Jefferson, north of Laguna. It is going to be a 51-unit senior for-sale project. A portion of it is going to be affordable to I ower i ncome and a portion is going to be affordable to moderate income and the remainder would be market rate housing. Commissioner Ritchie asked if it will be limited to over 55? Craig Ruiz said that is correct. Commissioner Huston asked where this is located? Craig Ruiz said it is on Jefferson Street, north of Laguna. The project Mr. Scarpelli is referring to is on Laguna Street between Jefferson and Roosevelt. Years ago there was an approval for 50 units of senior housing, but the entitlements expired and the owner sold the property and now they have new entitlements to build 12 units there. Vice-chairman Scarpelli asked about the discussion in previous times about the north end of State Street, particularly those very derelict properties. The ex-laundry mat, etc. Has anything else developed with our ability to get control of those properties for residential development, senior development? Craig Ruiz said a lot of developers have approached that property owner. The Redevelopment Agency does not have the ability to condemn the property through eminent domain. That ability was gone several years ago. Vice-chairman Scarpelli asked Mr. Ruiz to enlighten the commission on how the city loses its right to eminent domain? Craig Ruiz said the city itself has it. When we formed the Redevelopment Agency, one of the powers the Redevelopment Agency has is the power of eminent domain, to condemn property and purchase for its fair market value. When you initially establish a redevelopment plan, which we did in 1981, there is a limit on how long you can keep that eminent domain. There is a maximum period, and it is less then the term of the whole redevelopment plan. Our plan was for 25 years. It expires in 2006, but you only get to keep the eminent domain power for roughly half of that time, so you have to acquire property early on to do your redevelopment activities. HOUSING COMMISSION MINUTES NOVEMBER 14,2002 PAGE 6 of 8 Commissioner Huston said that in a new redevelopment plan we would reacquire the ability for eminent domain. Craig Ruiz answered that we have that ability in the coastal redevelopment area, but we no longer have it in the village area. Vice-chairman Scarpelli said the city still maintains its ability for eminent domain. It is finite. It doesn’t have any ending period. Craig Ruiz agreed. The city has it, but the city has to condemn it for a public purpose. Where the Redevelopment Agency theoretically can condemn a piece of property, sell it for less then market value to a developer to facilitate redevelopment. The city doesn’t have that same ability. It would have to be a public purpose like a road or a park. Vice-chairman Scarpelli stated that the candidates for City Council were discussing the $80,000,000 the city has available to spend. Maybe we need to dialogue with the city regarding that particular piece of property, maybe purchasing and bringing in someone to help develop it, not as a development but as a city. The other question was, there is a piece of property that we discussed a year or two ago also that was next to a commercial piece of property, Brittany, on Roosevelt, just south of Laguna. I noticed there is clearing on that property. Is that anything to do with redevelopment? Craig Ruiz said yes. The Redevelopment Agency is in escrow with the property owner. We are scheduled to close in the middle of January. Vice-chairman Scarpelli inquired as to the purpose of that piece of property. Craig Ruiz said the Redevelopment Agency will be able to develop eleven affordable apartment units there. It is just over half an acre. Vice-chairman Scarpelli said again as direction to staff is these close pieces of property are within walking distance to services and doctors and things of that nature; maybe again we need to be looking at that senior element in those particular location. Has that been discussed as to what type of low-income might be most suitable for that particular property? Craig Ruiz said there are a lot of ideas for that small project. Vice-chairman Scarpelli said he would like that senior element to be considered there because of its location and seniors could walk to most of the services they will need. He continued by thanking Mr. Donnell for his presentation. Next on the agenda is Craig Ruiz who will be presenting the housing resident survey. Craig Ruiz, Management Analyst, gave a presentation regarding the Affordable Housing Resident Survey performed by the Housing and Redevelopment Agency. Vice-chairman Scarpelli asked the Commissioners if anyone had any questions of Mr. Ruiz. Commissioner Huston reiterated that Craig Ruiz said 253 responded out of 710. She inquired as to whether or not he thinks that people who respond to a survey are in a different category then those who don’t? HOUSING COMMISSION mil'NUTES NOVEMBER 14,2002 PAGE 7 of 8 Craig Ruiz commented that one of the things done with this survey was an offer was given to those who responded would receive a $5 gift card from Blockbuster. The survey was anonymous. In addition, there was a drawing for all who filled out their address and we gave away 10 $20 gift certificates to be used at the Carlsbad Company Stores. Commissioner Huston continued, there are a lot of young families and it is very suitable for them to come up the career ladder. However, if they get in affordable housing, can they stay there indefinitely? Craig Ruiz answered no they cannot stay there indefinitely. It is tied to their income. The majority of them were tied into the tax credit program and they have their own set of regulations; it might be 50 to 60% of the median income and then you have to leave. There are other projects such as Sunnycreek that is not a tax credit project that has been capped at 90% of the medium income. Once their incomes reach 90%, then they would have to leave that project. There are other projects like that down the line. Commissioner Huston asked if that is evaluated every year, every other year? Craig Ruiz answered, correct. Once a person moves into an affordable complex, they are re- certified as to their income on an annual basis. Vice-Chairperson Scarpelli asked if there were any further questions. He commended Mr. Ruiz for a wonderful survey. He continued that the survey shows people who oppose affordable housing that the people who are living there are actually our schoolteachers, nurses, firemen and policemen. The survey was well done and to get that kind of response is excellent. He continued he would like to see the staff make such a presentation to the community such as service clubs, the High Noon Rotary, Carlsbad Evening Rotary, the Kiwanis, the Optimist, to educate people as to who the people are who need affordable housing in our community. Craig Ruiz explained that the Housing and Redevelopment staff does intend to give this presentations to the community. Commissioner Ritchie commented she has already brought Debbie Fountain, the Director of Housing and Redevelopment, to a couple of groups. Vice-chairman Scarpelli continued there are many groups to speak to. Craig Ruiz also commented that staff will be working on making this slide show into a brochure presentation. Commissioner Ritchie commented on her surprise of the higher level of education and felt there is a misconception about affordable housing. Vice-chairman Scarpelli continued that people think of Chicago and those have been horror stories. Those social experiments were terrible failures. Those are the kinds of things that people think about and those things have to be dispelled. I think the staff has been doing an excellent thus far in doing that. He continued that he encourages the Commission in doing its part in helping dispel those feelings. Do we have this presentation in some form for the Commission? HOUSING COMMISSION iviINUTES NOVEMBER 14,2002 PAGE 8 of 8 Craig Ruiz answered that is what he was referring to. Staff will be working on making this into a handout. Vice-chairman S carpelli said the n ext time people talk to the Commissioners about affordable housing, they will have some facts and details that can be expressed to educate people. DIRECTOR REPORT: In the absence of the Director, Debbie Fountain, Craig Ruiz announced we will not be having a meeting December 12,2002, and likely not January 9,2003, either. He continued when we do have our next meeting, one item on the agenda will be the election of a Chairperson and Vice-Chairperson. Roy Latas resigned last summer and Ed Scarpelli, as the Vice-Chairperson, has been filling in as the Chairperson. We have been waiting until we have a full Commission before we put that back on the agenda. ADJOURNMENT By proper motion, the meeting of November 14,2002 was adjourned at 7:11 p.m. Respectfully submitted, Debbie Fountain Housing and Redevelopment Director PATRICIA CRESCENT1 Minutes Clerk MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE APPROVED.