HomeMy WebLinkAbout2020-05-05; City Council; ; Initiation of a Gap Analysis of the City's lnclusionary Housing In-lieu Fee~ CITY COUNCIL
~ Staff Report
Meeting Date:
To:
From:
Staff Contact:
May 5, 2020
Mayor and City Council
Scott Chadwick, City Manager
Jeff Murphy, Community Development Director
Jeff.murphy@carlsbadca.gov, 760-602-2783
CA Review RK
Subject: Initiation of a Gap Analysis of the City's lnclusionary Housing In-lieu Fee
Recommended Action
Review and discuss the information in this staff report and if, the City Council determines that
an affordable housing gap analysis should be initiated, adopt a resolution authorizing the
issuance of a request for proposals for the professional consulting services necessary for the
preparation of an affordable housing gap analysis and authorizing the appropriation and
expenditure of $50,000 from the City Council's General Fund Contingency account for the
anticipated consultant costs.
Executive Summary
On Dec. 17, 2019, the City Council approved a minute motion (Exhibit 2) directing staff to return
with an item for discussion to consider the initiation of a "nexus study" of the inclusionary
housing in-lieu fee and affordable housing credit purchases. This study, if initiated, would offer
recommendations on an updated inclusionary housing in-lieu fee, calculation methodologies
and related inclusionary housing policy options. For reasons further explained in this report, city
staff is not recommending any amendments to the Affordable Housing Credit Purchase
Program.
This study could help facilitate discussions on two additional City Council minute motions in
which the City Council directed staff to return with a discussion item to consider options for an
update to the city's inclusionary ordinance and specific inclusionary housing policies for the
Village and Barrio area (Exhibits 3 and 4). The requested funding for the study, estimated at
$50,000, is based upon conversations with consulting firms that specialize in the affordable
housing field and have prepared similar analyses for other jurisdictions.
Discussion
Background
Carlsbad, like many coastal cities in California, struggles with both a housing shortage and
housing affordability. To help address this shortfall, the city's lnclusionary Housing Ordinance,
like most inclusionary programs found throughout California, regulates land use through
development standards to ensure that all new residential development provides a range of
housing opportunities for all identifiable economic segments of the population, including
households of lower and moderate income.
May 5, 2020 Item #11 Page 1 of 72
To ensure that the benefits of development are widely shared, the inclusionary ordinance,
which was adopted in 1993, requires new residential projects to designate at least fifteen
percent of the units within a 'project as affordable, that is, below the market rate. Projects with
six or fewer units are allowed to satisfy this requirement through the payment of an in-lieu fee.
Projects with seven or more units are required to construct the affordable units on-site. The
ordinance also allows other contributions in lieu of construction, such as dedication of
developable land, purchase of "affordable housing credits," rehabilitation and affordable sale
or rent restriction of existing units. (More information on the city's lnclusionary Housing
Ordinance is provided in Exhibit 5, the staff report prepared for the April 14, 2020 City Council
meeting.)
As noted above, the City Council approved a minute motion on Dec. 17, 2019, (Exhibit 2)
directing staff to present the council with a discussion item to consider the initiation of a "nexus
study" of the inclusionary housing in-lieu fee and affordable housing credit purchases. This
study, if initiated, would offer recommendations on an updated inclusionary housing in-lieu fee,
calculation methodologies and related inclusionary housing policy options. The following
sections provide a summary of the difference between a nexus study and gap analysis, the city's
existing housing in-lieu fee, and an overview of how a gap analysis can assist the city in
updating its inclusionary ordinance and the affordable housing credit purchase program.
Nexus study versus gap analysis
It is important to clarify the difference between a nexus study and gap analysis. Nexus studies
help determine the reasonable relationship or connection between new development and the
city's ability to exact the fee being charged. For projects with six or fewer dwelling units, the
affordable housing in-lieu fee is an alternative method for satisfying a project's inclusionary
housing requirements in lieu of the new construction of inclusionary units, the purchase of
affordable housing credits or some other approved method of satisfying the requirements. It is
not an "exaction" subject to the restrictions of the California Mitigation Fee Act1. As such, a
nexus study is not required for the establishment or adjustment of an in-lieu fee.
A housing affordability gap analysis, on the other hand, calculates the difference between the
cost of developing a market rate home, what a low-income family household can afford to pay
for housing and the costs of developing new, modest housing units for those households. The
analysis is very through, and investigates several cost and affordability functions. This analysis:
• Estimates affordable rents and housing prices for households in targeted income
groups
• Estimates development costs of building new, modest housing units, based on
current costs and additional market data
• Determines the difference between what renters and owners can afford to pay for
housing and the development costs of rental and ownership units
1 This act limits the conditions on development that local agencies can impose that divest the developer of money
or an ownership interest in a property. The applicable legal case is 616 Croft Ave., LLC v. City of West Hollywood
(2016) 3 Cal.App.5th 621.
May 5, 2020 Item #11 Page 2 of 72
lnclusionary housing in-lieu fee
The inclusionary housing ordinance provides that residential projects of six or fewer dwelling
units may, but are not required to, satisfy their inclusionary requirement through the payment
of the in-lieu fee (Carlsbad Municipal Code 21.85.110). When initially adopted in 1993, the in-
lieu fee was formulated using the affordability gap method, meaning that the in-lieu fee was
based on the typical difference in cost to produce a market rate unit versus that of a lower-
income affordable unit. The fee was initially set at $11,485 per market rate unit. The fee was
recalculated in 1996 based on 15 percent of the city's per unit subsidy for the Villa Loma
Apartment project, which was $30,100, resulting in a reduction of the fee to $4,515 per market
rate unit. The fee amount has remained unchanged since 1996. Through this fee, about $1.7
million has been deposited into the city's Housing Trust Fund over the past twenty years,
(through fiscal year 2018-19).
Gap analysis to update the city's inclusionary housing in-lieu fee
Ultimately, a gap analysis will help the city develop an in-lieu fee that will not exceed the cost of
providing affordable housing on-site, is economically feasible and will not pose a constraint on
the construction of housing in the city. As part of this effort, staff recommends that the analysis
include suggestions and options that will assist the City Council in updating and improving the
city's current inclusionary regulations, such as those listed below.
• Options for calculating in-lieu fees, including:
o Setting fees based on a per unit versus square footage basis
o increasing the new in-lieu fee beyond the affordability gap to incentivize
developers to provide on-site affordable housing
o Lowering the new in-lieu fee for providing options for developers while also
securing adequate funding that will finance off-site affordable housing
o Determining the effectiveness of providing affordable housing when the new in-
lieu fee is equivalent to the cost for developers to provide affordable units
• Options for a Village and Barrio-specific inclusionary fee and an associated policy
The final report will offer recommendations to ensure the inclusionary housing in-lieu fee
formula, policy options that provide adequate affordable housing in the city and/or an
adequate source of funding to support the development of affordable housing in Carlsbad.
Consultant assistance
Currently, the Community Development Department lacks the expertise needed to develop a
gap analysis, so outside consulting services are required. Initial research indicates that
development of an affordability gap analysis and inclusionary report will cost approximately
$50,000 and take two to three months to complete. Prior to selecting a consultant, a request
for proposal will be prepared. The request for proposal and contract award process will also
take approximately two to three months.
Once completed, the study will help facilitate the City Council's discussions on two additional
minute motions that directed staff to return with a discussion item considering options to
update the city's inclusionary ordinance and an inclusionary policy specific to the Village and
Barrio area (Exhibits 3 and 4).
May 5, 2020 Item #11 Page 3 of 72
Affordable housing credit purchases
The inclusionary housing ordinance also provides for the sale of inclusionary housing credits
when an affordable housing project is constructed and results in more affordable units than is
required by the ordinance (CMC 21.85.090). When the city participates financially in an
affordable housing project, such excess affordable units can be made available to other
developments in the form of affordable housing credit purchases, if approved by the City
Council.
The procedures for the sale of affordable housing credits was established by City Council Policy
No. 58. Consistent with the policy, the affordable housing credit purchase price for each project
is determined by dividing the city's total financial subsidy to the project by the number of
affordable units provided in excess of the inclusionary housing ordinance requirements for that
project. The affordable housing credit purchase price is annually adjusted for inflation or
accrued interest on the city loan. The credits are only available to be purchased by projects that
are located within the same quadrant or withiri a quadrant contiguous to the affordable
housing project site that generated the excess affordable units. The actual affordable housing
credit purchase price will vary, dependent upon the geographic location of the new
development and the project from which the credits are_purchased.
The authority to approve the establishment of a project providing affordable housing credits
lies solely with the City Council, as does the approval for a project to satisfy its inclusionary
housing requirement by purchasing affordable housing credits. To date, the City Council has
approved the establishment of affordable housing credits for only four projects: Villa Loma, ·
Cassia Heights, Roosevelt Gardens and Tavarua Senior Apartments. Currently, only two projects
in the city have affordable housing credits available for purchase:
• Cassia Heights Apartments -34 credits available for projects in the southwest and
southeast quadrants at $60,011 per credit
• Tavarua Senior Affordable Apartments -31 credits available for projects in the
northwest quadrant at $84,000 per credit
The purchase of affordable housing credits has resulted in about $8.6 million in deposits into
the Housing Trust Fund over the past 20 years (through fiscal year 2018-19).
The affordable housing credit purchase program, as authorized by the inclusionary housing
ordinance and City Council Policy No. 58, has served the city extremely well over the life of the
program. Given the structure and purpose of the program, city staff are not recommending any
amendments to the affordable housing credit purchase program at this time.
Fiscal Analysis
The consultant cost associated with the City Council's Dec. 17, 2019 Minute Motion will be paid
from the City Council's General Fund contingency account. If the City Council directs staff to
proceed with the housing affordability gap analysis, approximately $50,000 in funding would be
required.
Next Steps
Staff will develop and release a request for proposals for the professional services needed to
conduct the housing affordability gap analysis. Once the vendor is selected and the analysis is
May 5, 2020 Item #11 Page 4 of 72
completed, the report will be presented to the Housing Commission and the Planning
Commission for review and recommendations. The report will ultimately be presented to the
City Council for consideration, approval and direction. It is expected that the final report would
be before the City Council by the first quarter of 2021.
Environmental Evaluation (CEQA)
The proposed action is not a "project" as defined in California Environmental Quality Act
Guidelines Section 15378{b)(4) because it involves a request to solicit consulting services to
prepare a gap analysis for the city's lnclusionary Affordable Housing Ordinance. As such, this
activity is not subject to CEQA under §15060(c)(3).
Public Notification and Outreach
This item was noticed in accordance with the Ralph M. Brown Act and was available for viewing
at least 72 hours prior to the meeting date.
Exhibits
1. City Council resolution
2. City Council Minutes dated Dec. 17, 2019 (minute motion)
3. City Council Minutes dated Dec. 10, 2019 (minute motion)
4. City Council Minutes dated Aug. 20, 2019 (minute motion)
5. Staff report: lnclusionary Housing Ordinance, April 14, 2020 City Council meeting
May 5, 2020 Item #11 Page 5 of 72
RESOLUTION NO. 2020-081
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS
FOR PROFESSIONAL CONSULTING SERVICES NECESSARY FOR THE
PREPARATION OF AN AFFORDABLE HOUSING GAP ANALYSIS AND
AUTHORIZING THE APPROPRIATION AND EXPENDITURE OF $50,000 FROM
THE CITY COUNCIL'S GENERAL FUND CONTINGENCY ACCOUNT FOR
ANTICIPATED CONSULTANT COSTS.
WHEREAS, the City Council on Dec. 17, 2019, approved a Minute Motion directing staff to return
with a discussion item to consider the initiation of a nexus study of the inclusionary housing in-lieu fee
and affordable housing credits; and
WHEREAS, an affordable housing gap analysis (Study) would provide data necessary to ensure
that the city's affordable housing fees generate adequate affordable housing funding without
overburdening developers, property owners or negatively impacting the pace of development; and
WHEREAS, this Study will help facilitate two discussions on two additional City Council minute
motions where the City Council directed staff to return with a discussion item to consider solutions and
options for an inclusionary housing policy specific to the Village and Barrio area; and
WHEREAS, to obtain the professional services needed to conduct the Study would require staff
to issue a request for proposals in compliance with Carlsbad Municipal Code sections 3.28.060.A; and
WHEREAS, the consultant costs for the Study associated with City Council's Dec. 17, 2019
Minute Motion, which is estimated to be $50,000, will be paid from the City Council's General Fund
contingency account.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That staff is directed to develop a request for proposal for the initiation of an affordable
housing gap analysis study (Study).
3. That the Deputy City Manager, Administrative Services is hereby authorized to
appropriate $50,000 from the City Council's General Fund contingency account to the
Community Development Department operating budget to pay anticipated consultant
costs associated with the Study.
May 5, 2020 Item #11 Page 6 of 72
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 5th day of May, 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, Mayor
ll]w1{_t~
BARllARA ENGLESON, City Cle~
(SEAL)
May 5, 2020 Item #11 Page 7 of 72
Dec. 10, 2019 Carlsbad City Council Regular Meeting Page 11
This Item was moved to follow Item No. 16.
8. PLANNING COMMISSION WORK PLAN AND ORDINANCE AMENDMENTS -Adoption of
Resolution No. 2019-251 approving the Planning Commission Work Plan for FY 2019-20;
and
Introduction of Ordinance CS-367 amending Carlsbad Municipal Code Chapter 2.24
regarding the Planning Commission to be consistent with Chapter 1.20 Meetings and
Chapter 2.15 Boards and Commissions. (Staff contact: Don Neu, Community & Economic
Development)
City Manager's Recommendation: Adopt the Resolution and introduce the Ordinance.
Interim CED Director Mike Peterson and City Planner Don Neu presented the report and
reviewed a PowerPoint presentation (on file in the Office of the City Clerk).
In response to an inquiry by Council Member Schumacher, City Manager Scott Chadwick
explained his concern with cyber safety and training required if volunteers were issued city
email addresses.
Minute Motion by Council Member Schumacher, seconded by Mayor Pro Tern Bhat-Patel,
to include the addition of the inclusionary housing ordinance review and potentially any
revisions recommended to Council as well as the parking management plan review and
any potential revisions to Council. Minute Motion withdrawn.
In response to an inquiry from Council Member Blackburn, Planning Commission Chair
Luna explained a priority structure would be helpful for the commission to effectively
deliver. vetted documents and prevent further delay.
In response to an inquiry from Mayor Hall, City Planner Don Neu explained the current
timeline challenges and goals with various projects.
Assistant City Attorney Walter Chung titled the ordinance.
Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Blackburn, to adopt
Resolution No. 2019-251; and Introduction of Ordinance CS-367. Motion carried,
unanimously (4/0).
17. REPORT ON HOW TRANSPORTATION SYSTEM MANAGEMENT AND TRANSPORTATION
DEMAND MANAGEMENT PROGRAMS ADVANCE MOBILITYAND CLIMATE GOALS-Receive
an informational report on the use of transportation system management and
transportation demand management programs to advance the city's mobility and climate
goals. (Staff contact: Paz Gomez, Public Works and Gary Barberio, Community Services)
City Manager's Recommendation: Receive the report.
May 5, 2020 Item #11 Page 11 of 72
August 20, 2019 Carlsbad City Council Regular Meeting Page 7
for short-term vacation rentals. He also explained the differences, level of review, and past
streamlining efforts for projects in the Village and Barrio areas.
In response to an inquiry by Council Member Hamilton, City Planner Don Neu explained that
while a timeline target may be feasible, delays may occur due to certain items like
architectural design standards. He also shared staff would need further direction from
Council on what else they want to modify in the plan. Mr. Neu also shared an option on how
to process the amendments.
City Attorney Celia Brewer titled and introduced the Ordinance.
Motion by Council Member Blackburn, seconded by Council Member Schumacher, to
introduce Ordinance No. CS-357 acknowledging receipt of the California Coastal .
Commission's Resolution of Certification including suggested modifications for LCPA 14-01,
and approving the associated suggested modifications to the Village and Barrio Master Plan
and Local Coastal Program. Motion carried, 4/0/1 (Hall -Absent).
Minute Motion by Council Member Hamilton, seconded by Council Member Schumacher, to
direct staff to bring back for Council consideration in two months, a workplan that includes a
timeline to address the following amendment package for the Village and Barrio Master Plan:
1) Decision making authority for the entire Village.and Barrio Master Plan to City Council; 2)
Permitted uses vital to a live, work, play community; 3) Parking-in-lieu fees to be directed to
a specific area for parking and the potential for public/private partnerships for a specific
zoned parking structure; 4) Traffic impact analysis and mitigation fees specific to the Village
and Barrio Master Plan area and roadway conditions outside of the Coastal Zone; 5) Objective
architectural, historical and design standards within the Village and Barrio Master Plan area;
6) Solutions and options to avoid housing-in-lieu payments in the Village and Barrio area; 7)
Village and Barrio specific inclusionary policy; and to allow for general conversation regarding
additional components of the plan. Motion carried, 4/0/1 (Hall -Absent).
Mayor Pro Tern Bhat Patel announced that Item No. 10 will be continued to the City Council
meeting on August 27, 2019.
10. PURE PROJECT BREWERY AND TASTING ROOM-Adoption of a Resolution approving a Minor
Site Development Plan and Conditional Use Permit for a 2,206-square-foot brewery and
tasting room located at 2825 State Street in the Village Center District of the Village and .Barrio
Master Plan and within Local Facilities Management Zone 1; and,
Adoption of a Resolution approving a Parking In-Lieu F.ee Program Participation Agreement
between the City of Carlsbad and Russell Satterly, Susan Satterly and Lindo Mino, property
owners, for the project known as Pure Project Brewery and Tasting Room located at 2825
State Street in the Village Center District of the Village and Barrio Master Plan and within
Local Facilities Management Zone 1. Case Name: Pure Project Brewery and Tasting Room.
Case No.: SDP 2019-0002/CUP 2018-0021 (DEV2018-0196). (Staff contact: Shannon Harker,
Community & Economic Development)
May 5, 2020 Item #11 Page 13 of 72
6. City Council Policy 58 and Policy 57
7. Housing Trust Fund-assisted Affordable Housing projects
8. Aug. 20, Dec. 10 and Dec. 17, 2019 City Council minute motions
Anril 1 LI. Jn?Cl ltPm:tfq P::ia-P R nf c;q May 5, 2020 Item #11 Page 21 of 72
May 14, 2019 Carlsbad City Council Regular Meeting Page4
Community & Economic Development Director Debbie Fountain and Management Analyst
Nancy Melander presented the report and reviewed a PowerPoint presentation (on file in the
Office of the City Clerk).
Mayor Hall opened the duly noticed Public Hearing at 7:45 p.m.
Rebecca Palmer from Community Resource Center thanked the Council for past support of the
Community Resource Center and spoke regarding their application.
Seeing no one else wishing to speak, Mayor Hall closed the duly noticed Public Hearing at .
7:48 p.m.
Motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Blackburn, to adopt
Resolution No. 2019-066. Motion carried unanimously, 5/0.
DEPARTMENTAL AND CITY MANAGER REPORTS:
8. STATUS REPORT ON THE HOMELESS RESPONSE PLAN AND HOMELESS OUTREACH TEAM
EFFORTS -Receive an informational staff report on the Homeless Response Plan and
Homeless Outreach Team efforts. (Staff contact: Marie Jones-Kirk, Community & Economic
Development)
City Manager's Recommendation: Receive the report.
Community & Economic Development Director Debbie Fountain, Police Chief Neil Gallucci,
and Deputy City Attorney Marissa Kawecki presented the report and reviewed a PowerPoint
presentation ( on file in the Office of the City Clerk).
Greg Anglea, CEO of Interfaith Community Services, and Board President of the Alliance for
Regional Solutions, thanked staff and Council for the update and for the efforts the City is
taking.
Patty Xirogicinnis, landlord in Carlsbad, is seeking collaboration with the City so her properties
can house the homeless, along with the Landlord Liaison program.
Minute motion by Mayor Pro Tern Bhat-Patel, seconded by Council Member Hamilton, to
bring back as an agendized item drafting a letter of support for increased funding for
behavioral health services to the County of San Diego. Motion carried unanimously, 5/0.
Minute motion by Council Member Schumacher, seconded by Council Member Hamilton,
directing staff to agendize an action item to discuss the housing trust fund and potential
changing of the policy to a future agenda. Motion carried, 4/1 (Hall -No).
Minute motion by Council Member Schumacher, seconded by Council Member Hamilton, to
place on a future agenda an action item to discuss forming an ad-hoc committee of Council
and staff, in partnership with the Alliance for Regional Solutions, to reach out to neighboring
April 14. 2020 Item #9 Page 10 of 59 May 5, 2020 Item #11 Page 23 of 72
3/25/2020 Chapter 21.85 INCLUSIONARY HOUSING
Notwithstanding any contrary provisions of this chapter, at the sole discretion of the city council, the city may dete1n1ine
that an alternative to the construction of new inclusiona1y units is acceptable.
A. The city council may approve alternatives to the constrnction of new inclusionmy units where the proposed
alternative suppmts specific housing element policies and goals and assists the city in meeting its state housing
requirements. Such detennination shall be based on findings that new constrnction would be infeasible or present
unreasonable hardship in light of such factors as project size, site constraints, market competition, price and product
type disparity, developer capability, and financial subsidies available. Alternatives may include, but not be limited
to, acquisition and rehabilitation of affordable units, conversion of existing market-rate units to affordable units,
construction of special needs housing projects or programs (shelters, transitional housing, etc.), and the constrnction
of accessmy dwelling units.
B. Accessory dwelling units constructed to satisfy an inclusionaiy housing requirement shall be rent restricted to
affordable rental rates, and renters shall be income-qualified, as specified in the applicable affordable housing
agreement. In no event shall a developer be allowed to constrnct more than a total of fifteen accessmy dwelling units
in any given development, master plan, or specific plan, to satisfy an inclusiona1y requirement.
C. Contiibution to a special needs housing project or program may also be an acceptable alternative based upon
such findings. The requisite contribution shall be calculated in the same manner as an in-lieu fee per Section
f..!.:.?..?.: . .P.9: (Ord. CS-324 § 2, 2017; Ord. CS-109 § X, 2010; Ord. NS-535 § 1, 2000)
21.85.080 __ !;ombined _i_~dusionary housing projects.
An affordable housing requirement may be satisfied with off-site constrnction as follows:
A. When it can be demonstrated by a developer that the goals of this chapter and the city's housing element would
be better se1ved by allowing some or all of the inclusiona1y units associated with one residential project site to be
produced and operated at an alternative site or sites, the resulting linked inclusiona1y project site(s) is a combined
inclusionary housing project.
B. It is at the sole discretion of the city council to authorize the residential site(s) which fonn a cmnbined
inclusionaiy housing project. Such decision shall be based on findings that the combined project represents a more
effective and feasible means of implementing this chapter and the goals of the city's housing element. Factors to be
weighed in this detennination include: the feasibility of the on-site option considering project size, site constraints,
competition from other projects, difficulty in integrating due to significant price and product type disparity, and lack
of capacity of the on-site development entity to deliver affordable housing. Also to be considered are whether the
off-site option offers greater feasibility and cost effectiveness, particularly regarding potential local public assistance
and the city's affordable housing financial assistance policy, location advantages such as proximity to jobs, schools,
transportation, and services, diminished impact on other existing developments, capacity of the development entity
to deliver the project, and satisfaction of multiple developer obligations that would be difficult to satisfy with
multiple projects.
C. All agreements bet\veen parties to fonn a combined inclusiona1y housing project shall be made a part of the
affordable housing agreement required for the site(s), which affordable housing agreement(s) shall be approved by
council.
D. Location of the combined inclusionaiy housing project is limited to sites within the same city quadrant in
which the market-rate units are located, or sites which are contiguous to the quadrant in which the market-rate units
are proposed. (Ord. NS-535 § 1, 2000)
21.85.090 Creation of inclusionary units not required.
Inclusionaiy units created which exceed the final requirement for a project may, subject to city council approval in the
affordable housing agreement, be utilized by the developer to satisfy other inclusionaiy requirements for which it is
obligated or market the units to other developers as a combined project subject to the requirements of Section 21,.85.080.
(Ord. NS-535 § ·I, 2000)
21.85~100 ()ffsets to the cost of affordable housing development.
www.qcode.u.&1A9-1r~'ftlr','fflh ltPm #q P;::u,P 1 h nf c;q 6/10 May 5, 2020 Item #11 Page 29 of 72
a 0 EXH
1
2
3
4
RESOLUTION NO. 93-269
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA ESTABLISHING AN INCLUSIONARY HOUSING IMPACT FEE AND
FORMULA FOR CALCULATING THE IMPACT FEE
WHEREAS, the City of Carlsbad has adopted
5
that a minimum of fifteen percent (15%) of all residential u 9
WHEREAS, the Inclusionary Housing Ordinance mand 8
moderate-income units; and 7
of it's Regional Share housing objectives for lower-income 6
Inclusionary Housing Ordinance in order to enable the achieve
lo in any master plan, specific plan or residential subdivisio
11 reserved and affordable to lower-income households: and
12 WHEREAS, the Inclusionary Housing Ordinance speci
13 that all residential market rate dwelling units resulting fron
14 construction of rental or for-sale units shall be subjecl
15 inclusionary requirements; and
16
17
WHEREAS, based upon a comprehensive strategy formul
to address the City's affordable housing needs over the sho
imid-, and long-term buildout of the City, specific Inclusio
19 requirements (i.e.; construction of affordable units, paymen
20 in-lieu fees or payment of inclusionary housing impact fees)
21 been identified for various classes of residential projects;
22 WHEREAS, in order to be consistent with the Hou
23 Element of the General Plan and the Inclusionary Hou
24 Ordinance, the following classes of residential projects shal
25 eligible to satisfy Inclusionary housing requirements for 1
26 income households through the payment to the City of
27 Inclusionary Housing Impact Fee:
28
l8
~
(1) Residential projects, of any size, establis
individual lots or dwelling units (i.e.; tentative maps, tenta
/I May 5, 2020 Item #11 Page 34 of 72
0 0
maps for the conversion of apartments to air-space condomini
parcel maps, planned unit developments, site development pl
conditional use permits, residential mobile home park permits
redevelopment permits) , for which the application was accepted
1
2
3
4 deemed complete prior to the effective date of the Inclusio
Ordinance: 5
6 7 II (2) Single family residential projects, (i
tentative maps and parcel maps) of any size, for which
discretionary approvals, except site development plans,
granted on or before the effective date of the Inclusio
Ordinance and site development plans are subsequently require
a condition Of the prior approval, and are approved after
8
9
10
11
I.2 lleffective date of the Inclusionary Ordinance;
13
14
(3) A residential tentative map or parcel map revis
of any size, including a tentative map revision for the conver
l5 /of apartments to air-space condominiums, for which the applica
l6 //is deemed complete prior to the effective date of the Inclusio
17
18
Ordinance, and is approved on, before or after the effective
of the Inclusionary Ordinance:
19 11 I (4) Any residential tentative map or parcel map
2o
21
which the application is deemed complete prior to the effec
date of the Inclusionary Ordinance, which is approved on, be
“I/or after the effective date of the Inclusionary Ordinance, an
23
24 effective date of the Inclusionary Ordinance;
SubseWently approved for extension on, before or after
25 il (5) Any residential planned unit development,
26 Ildevelopment plan, conditional use permit, residential mobile
27 lipark permit, or redevelopment permit, for which the applicatic
28 I! II 2 May 5, 2020 Item #11 Page 35 of 72
II 0 0 /I //deemed complete prior to the effective date of the Inclusic
l IIOrdinance, which is approved on, before or after the effec
2
3
4
5
6
date of the Inclusionary Ordinance, and is subsequently app:
for amendment on, before or after the effective date of
Inclusionary Ordinance; and
WHEREAS, the impact fee to be paid for each market
dwelling unit would be equal to fifteen percent (15%) of
7 llsubsidy required to make affordable to a lower-income housc
8
9
10
the market-rate rent at a typical existing apartment for a pe
of thirty (30) years ; and
WHEREAS, this subsidy would be based upon the C:
11
12
13
determination of the average subsidy that would be require
make affordable, rents for typical one-, two-, three-, and j
bedroom apartments: and
14 11 WHEREAS, the average subsidy shall be weighted for
l5 llactual demand for housing, by number of bedrooms, as determine
16
17
18
I’ the InClUSiOnary Housing Impact Fee is included on Exhibit
20 land
the applications for lower-income affordable housing qualifiec
approved by the City; and
WHEREAS, the formula for calculating the dollar Val1
21 I1 WHEREAS, based upon this formula, and the CUI
22
the Inclusionary Housing Impact Fee would be $2,925.00 for fi 23
estimates of the variables contained therein, the dollar valu
assessed against all approved, but unbuilt market rate residen 26
WHEREAS, the Inclusionary Housing Impact Fee woul 25
year 1993-1994 (see Exhibit If3I1) ; and 24
27 Ilunits subject to this fee; and
28
3 May 5, 2020 Item #11 Page 36 of 72
0 0
WHEREAS, the Inclusionary Housing Impact Fee woul
required to be paid to the City, as an individual fee, on a 1
2
3
4
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6
market-rate dwelling unit basis at the time of building PC
issuance, or prior to the recordation of final map and/or issc
of certificate of compliance for conversions of exis
apartments to airspace condominiums; and
WHEREAS, consistent with the formula included on Ex1
7 11 tt211, the dollar value of the Inclusionary Housing Impact Fee P
8
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12
be adjusted yearly by resolution of the City Council: and
WHEREAS, the Inclusionary Housing Impact Fee(s) paj
the City would be deposited in a Housing Trust Fund and used
the purpose of providing funding assistance for the provisic
affordable housing and reasonable costs of administration.
13 11 NOW, THEREFORE, BE IT RESOLVED by the City Counci 1411 the City of Carlsbad as follows:
l5 Ii "1. That the method for calculating the dollar Val1
l6 11 the Inclusionary Housing Impact Fee, established by Municipal
17/1Title 21, Section 21.85.060 Inclusionary Housing Impact Fee, E
l8 1 be by the formula shown on Exhibit t121t, a copy of which is afi
19 i
2o 1 and made a part hereto; and
2. That the input values for the variables containc 211i the formula given in Exhibit I12lt shall be, and the resul
22
23
24 3. The formula, input values, and fee shall bc
25 effective 60 days after the adoption of this resolution: anc
26
Inclusionary Housing Impact Fee shall be, as shown in Exhibit
a copy of which is affixed and made a part hereto: and
...
27
28
I1 4
ll
May 5, 2020 Item #11 Page 37 of 72
I/ 0 e
4. That the input values for the variables of the for
and the Impact Fee would be updated annually by resolution of
City Council e #I
1
2
3 11 PASSED, APPROVED AND ADOPTED at a regular mee
*Ilof the City Council of the City of Carlsbad, California, on
5 /j 21st day of SEPTEMBER , 1993, by the following vote
6 Ilwit: -
7
a
9
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard
NOES: Council Member Finnila
ABSENT : None
10
11
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13
ABSTAIN:
l4 IJATTEST:
15 I
16 ALe m{TEelkrk
I"
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18
(SEAL)
I
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25 I1
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I1 5 May 5, 2020 Item #11 Page 38 of 72
0 0 I
INCLUSIONARY HOUSING IMPACT FEE FORMULAS
1. F = T (S, + S, + S, + S,) E
F = Dollar Value of Inclusionary Housing Impact Fee.
T = Unit Tenure of Affordability = 360 months (30 years).
s2 = Annual Rental Subsidy Required for a 2 Person Low Inco:
s3 = Annual Rental Subsidy Required for a 3 Person Low Inco
s4 = Annual Rental Subsidy Required for a 4 Person Low Inco
s, = Annual Rental Subsidy Required for a 5 Person Low Incol
Household.
Household.
Household.
Household.
E - - 15% Inclusionary Requirement = .15
2. s2 = H, (R, - 1,)
s3 = H, (R, - 13)
s4 = H3 (R3 - 1,J
s5 = H, (R4 - 1,)
% = Percent of Total Households on Carlsbad's Section 8 Waiting L Eligible for a 1 Bedroom unit.
H, = Percent of Total Households on Carlsbad's Section 8 Waiting L
Eligible for a 2 Bedroom Unit.
H3 = Percent of Total Households on Carlsbad's Section 8 Waiting L
Eligible for a 3 Bedroom Unit.
H, = Percent of Total Households on Carlsbad's Section 8 Waiting L
Eligible for a 4 Bedroom Unit.
Rl = Average Monthly Rental Rate in Carlsbad for a 1 Bedroom Apartme (HUD) Fair Market Rents for the San Diego MSA).
May 5, 2020 Item #11 Page 39 of 72
e 0
R, = Average Monthly Rental Rate in Carlsbad for a 2 Bedroom Apartm
(HUD) Fair Market Rents for the San Diego MSA).
R3 = Average Monthly Rental Rate in Carlsbad for a 3 Bedroom Apartm
R4 = Average Monthly Rental Rate in Carlsbad for a 4 Bedroom Apartm
12 = Monthly Rental Income Available for a 2 Person Low Incc
I3 = Monthly Rental Income Available for 3 Person Low Income Househ
I4 = Monthly Rental Income Available for a 4 Person Low Inco
1s = Monthly Rental Income Available for a 5 Person Low Inco
(HUD Fair Market Rents for the San Diego MSA).
(HUD Fair Market Rents for the San Diego MSA).
Household (HUD Income Limits for the San Diego MSA).
(HUD Income Limits for the San Diego MSA).
Household (HUD Income Limits for the San Diego MSA).
Household (HUD Income Limits for the San Diego MSA).
-2-
May 5, 2020 Item #11 Page 40 of 72
0 0 EXHIf
INPUTS TO IMPACT FEE FORMULA VARIABLES
FORMULA - 3L
S = H (R-I)
S = Rental Subsidy Required by Household Size.
H = % of Total Households on Carlsbad's Section 8 Waiting List Eligible fox
Bedroom (33%), 2 Bedroom (32Oh), 3 Bedroom (28%) or 4 Bedroom (7'
units.
R = Average Monthly Rent in Carlsbad for a 1 Bedroom ($556), 2 Bedroo
($695), 3 Bedroom ($966) and 4 Bedroom ($1139) Apartment (HUD F;
Market Rents for the San Diego Region - 1993).
I = Monthly Rental Income Available for a Low Income Household of 2 Perso.
($673), 3 Persons ($7461, 4 Persons ($834) and 5 Persons ($893) (HC
Income Limits for the San Diego MSA - 1993).
s2 - -33 ($556 - $673) - - - $38.61*
s3 - -32 ($695 - $746) - - - $16.32*
s, - -28 ($966 - $834) - - $36.96
SS - -07 ($1139 - $893) - - $1 7.22
-
-
-
-
FORMULA - 2
F = T (S, + S, + S, + S,) E
F = Dollar Value of Inclusionary Housing Impact Fee.
T = Unit Tenure of Availability - - 360 Months
- 15% Inclusionary Requirement = .15 E
360 ($.O + $.O + $36.96 + $17.22) .15 = $2925.72
F = $2925.72.
-
* hy rental subsidy which is less than or equal to $0 shall be equal to $8.
May 5, 2020 Item #11 Page 41 of 72
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0 0 EX1
RESOLUTION NO. 93-268
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA ESTABLISHING AN INCLUSIONARY HOUSING IN-LIEU FEE AND FORMULA FOR CALCULATING THE IN-LIEU FEE
WHEREAS, the City of Carlsbad has adopted
5
of it's Regional Share housing objectives for lower-income 6
Inclusionary Housing Ordinance in order to enable the achieve:
9
WHEREAS, the Inclusionary Housing Ordinance mand 8
moderate-income units; and 7
that a minimum of fifteen percent (15%) of all residential u
lo in any master plan, specific plan or residential subdivisio
11 reserved and affordable to lower-income households; and
12 WHEREAS, the Inclusionary Housing Ordinance speci
13 that all residential market rate dwelling units resulting fron
14 construction of rental or for-sale units shall be subjecl
15 inclusionary requirements; and
16
17
WHEREAS, based upon a comprehensive strategy formul
to address the City's affordable housing needs over the sho
Imid-, and long-term buildout of the City, specific Inclusio
requirements (i.e.; construction of affordable units, paymen
in-lieu fees or payment of inclusionary housing impact fees)
been identified for various classes of residential projects;
WHEREAS, in order to be consistent with the Hot
Element of the General Plan and the Inclusionary HOL
Ordinance, the following classes of residential project:
permits shall be eligible to satisfy Inclusionary hol
requirements for lower income households through the paymer
the City of an In-lieu Fee:
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28 (1) Any residential project (i.e. ; tentative
tentative map for the conversion of apartments to air-: May 5, 2020 Item #11 Page 42 of 72
ll 0 0
condominiums, parcel map, planned unit development, I
development plan, conditional use permit, residential mobile :
park permit or redevelopment permit) of six (6) dwelling unit
less, for which the application was deemed complete on or a
the effective date of the Inclusionary Ordinance, and is apprl
after the effective date of the Inclusionary Ordinance:
1
2
3
4
5
€5 7 I1 (2) Any residential tentative map or parcel
revision, including a tentative map revision for the conversio
apartments to air-SpaCe condominiums, of six (6) dwelling unit
less, for which the application was deemed complete on or a
the effective date Of the Inclusionary Ordinance, and is appr,
a
9
10
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12
13
~~
after the effective date of the Inclusionary Ordinance;
(3) Any residential tentative map or parcel map of
(6) dwelling units Or less, approved on or after the effec.
14
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date of the Inclusionary Ordinance, and is subsequently apprc
for extension after the effective date of the Inclusiol
Ordinance:
I
(4) Any residential planned unit development, !
development plan, conditional use permit, residential mobile 1
park permit or redevelopment permit for six (6) dwelling unit
less, approved on or after the effective date of the Inclusioi
Ordinance, and subsequently approved for amendment after
effective date of the Inclusionary Ordinance:
(5) Development of six (6) or fewer new mobile 1
24
27
WHEREAS, the in-lieu fee to be paid for each market : 26
date of the Inclusionary Ordinance. 25
pads in a mobile home park, approved on or after the effec.
dwelling unit would be equal to fifteen percent (15%) of
28 /I 11 2 May 5, 2020 Item #11 Page 43 of 72
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subsidy required to make affordable to a lower-income househ
1
attached housing unit; and 2
for a thirty (30) year tenure, one newly constructed, tyy
3 WHEREAS, the required subsidy is based upon the finc *
Housing1!, prepared by an ad hoc committee composed of City E !j
of a 1991 economic study, "Economics of Developing Afforc
and private for-prof it and non-profit developers; and 6
7 WHEREAS, the findings of this 1991 economic study
8 been updated for 1993; and
9 WHEREAS, the formula for calculating the dollar vali
10 the in-lieu fee is included on Exhibit 112"; and
11 WHEREAS, based upon this formula, and current estin
12
13
of the variables contained therein, the dollar value of thc
time to time by resolution of the City Council; and 16
112", the dollar value of the in-lieu fee would be adjusted 15
WHEREAS, consistent with the formula included on Exh 14
Lieu Fee would be $11,485.00 (see Exhibit 11311); and
17 WHEREAS, the in-lieu fee would be assessed against
18 ,market rate residential units subject to this fee: and
19 WHEREAS, the in-lieu fee would be required to be pa:
20
21
the City at the time of building permit issuance or prior tc
28
housing and reasonable costs of administration. 27
providing funding assistance for the provision of afforc 26
deposited in a Housing Trust Fund and used for the purpos 25
WHEREAS, the In-lieu Fee( s) paid to the City woul 24
condominiums: and 23
compliance for the conversion of existing apartments to air-s 22
recordation of a final map and/or issuance of certificat
3 May 5, 2020 Item #11 Page 44 of 72
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NOW, THEREFORE, BE IT RESOLVED by the City Council
City of Carlsbad as follows:
Ill. That the method for calculating the dollar vi
the Inclusionary Housing In-Lieu Fee, established by Municipi
Title 21, Section 21.85.050 In-Lieu Contributions, shall be
formula shown on Exhibit I12l1, a copy of which is affixed ar
a part hereto: and
2. That the input values for the variables contaj
the formula given in Exhibit 11311 shall be, and the reE
Inclusionary Housing In-Lieu Fee shall be, as shown in Exhib:
a copy of which is affixed and made a part hereto, and
3. The formula, input values, and fee shall
effective 60 days after the adoption of this resolution, ar
4. That the input values for the variables I
formula and the In-Lieu Fee would be reviewed annually and u
by resolution of the City Council."
PASSED, APPROVED AND ADOPTED at a regular meeting
City Council of the City of Carlsbad, California, on the 21s
of SEPTEMBER , 1993, by the following vote, to wit:
AYES : Council Members Lewis, Stanton, Kulchin, Nygaard, F
NOES : None
ABSENT : None
ATTEST:
1.4!c& A.L ALEITHA L. RAUTENKRANZ, City C*k
( SEAL) May 5, 2020 Item #11 Page 45 of 72
0 e E
M-LIEU FEE FORMULA
X - - CA+B+C+D)E
4
X - Dollar Value of In-Lieu Fee. -
A = The capital subsidy required to develop within the City of Carlsbad a
assisted 2 BR/1 BA, 850 sq. ft. condominium unit, and deed restrict the u
as affordable to a low income family of 3 for a 30 year tenure. *
B = The capital subsidy required to develop within the City of Carlsbad a
assisted 3 BR/2 BA, 1,100 sq. ft. condominium unit, and deed restrict 1
units affordable to a low income family of 4 for a 30 year tenure. *
C = The capital subsidy required to develop within the City of Carlsbad a
assisted 2 BW1 BA, 850 sq. ft. apartment unit, and deed restrict the unit
affordable to a low income family of 3 for a 30 year tenure. *
D = The capital subsidy required to develop within the City of Carlsbad b
assisted 3 BW2 BA, 1,100 sq. ft. apartment unit, and deed restrict the u:
as affordable to a low income family of 4 for a 30 year tenure. *
E - - 15% Inclusionary Requirement = .15
*I' Economics of the Development of Affordable Housing", City of Carlsbad, Decembl
1991.
May 5, 2020 Item #11 Page 46 of 72
e 0 E:
INPUTS TO IN-LIEU FEE FORMULA VARuiBLES
FORMULA:
X=(A+B+C+D)E
4
I.
TENANT SUBSIDY REQUIREMENTS BY UNIT SIZE FOR CARLSBAD
~~~
unit Capital Subsidy Required Income
Size Level For-Sale Units Rental Units II I I I i 2BR/SIZE/lBA
850 SQ.FT.
3BW2BA
1,100 SQ.FT.
$92,943 $62,977 Low
~ ~ ~ ~~~-
Low $86,843 $63,516
($63,516 + $62,977 + $86,843 + $92,9431.15 = $11,485.46
4
X = $11,485.46
May 5, 2020 Item #11 Page 47 of 72
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RESOLUTION NO. 9 6 - 2 6 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, ESTABLISHING AN
GRANTING A REFUND THEREOF.
INCLUSIONARY HOUSING IN-LIEU FEE AND
WHEREAS, the City of Carlsbad has adopted an Inclusionary Housing Ordinanc
order to enable the achievement of it's Regional Share housing objectives for lower-inc
units; and
WHEREAS, the Inclusionary Housing Ordinance mandates that a minimum of fiJ
percent (1 5%) of all residential units in any master plan, specific plan or residential subdivj
be reserved and affordable to lower-income households; and
WHEREAS, the Inclusionary Housing Ordinance specifies that all residential ma
rate dwelling units resulting from new construction of rental or for-sale units shall be subjel
inclusionary requirements; and
WHEREAS, based upon a comprehensive strategy formulated to address the C
affordable housing needs over the short-mid, and long-term buildout of the City, spel
inclusionary requirements @e., construction of affordable units, payment of in-lieu fee!
payment of inclusionary housing impact fees) have been identified for various classe:
residential projects; and
WHEREAS, the City Council is authorized by Carlsbad Municipal Code Sec
21 35.050 to establish the amount of the in-lieu fee from time to time by resolution; and
WHEREAS, the in-lieu fee to be paid for each market rate dwelling unit should be ec
to fifteen percent (15%) of the subsidy required to make affordable to a lower-incc
household, for a fifty-five (55) year tenure, one newly constructed, typical attached hou
1
May 5, 2020 Item #11 Page 48 of 72
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0 0
unit; and
WHEREAS, an appropriate measure of this subsidy is the actual local subsidy reqi
by the Villa Loma Affordable housing project to construct lower-income affordable units; a
WHEREAS, this required subsidy is also the cost of an Affordable Housing Cred
defined by the City Council in City Council Policy No. 58; and
WHEREAS, this required subsidy is currently approximately $30,100; and
WHEREAS, 15% of this required subsidy would currently result in an In-lieu Fe
approximately $4,5 15 per market rate unit; and
WHEREAS, pursuant to Carlsbad Municipal Code Section 21 35.050 the In-Lieu
will be applicable to and assessed against all market rate residential units which have bee
will be subject to this fee; and
WHEREAS, the In-Lieu Fee is required to be paid to the City at the time of buil
permit issuance or prior to the recordation of a final map and/or issuance of certificatt
compliance for the conversion of existing apartments to air-space condominiums; and
WHEREAS, the In-Lieu Fee paid to the City would be deposited in a Housing T
Fund and used for the purpose of providing funding assistance for the provision of afford,
housing and reasonable costs of administration, in accordance with the City’s General 1
Housing Element.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carls
as follows:
1. That the amount of the Inclusionary Housing In-Lieu Fee, established by Munic
Code Title 21, Section 21.85.050 In-Lieu Fee Contributions, shall be 15% of the cost oj
Affordable Housing Credit in the Villa Loma affordable housing project which is the sub!
2 May 5, 2020 Item #11 Page 49 of 72
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requirement to construct a low-income affordable housing unit; and
2. A refund of the In-lieu fee paid by Pacific Pointe (CT 94-02/PUD 94-01) on Jan1
18, 1995, under protest is hereby approved in the amount of $41,820 (the difference betv
the prior fee and the amount established by this action).
3. The In-Lieu Fee shall hereafter be updated as part of the annual adoption of 1
fees by resolution of the City Council.
4. This action results in a decrease of an existing development fee and shall be effec
immediately.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Counc
, 1996, by the following votl the City of Carlsbad, California, on the 23rd day of
wit:
JULY
AYES:
NOES: None
ABSENT: None
ABSTAIN: None
Council Members Lewis, Nygaard, Kulchin, Finnila, Hall
ATTEST:
&!&&x! QL-4- 7 ALETHA L. RAUTENKRANZ, City Clerk!
(SEAL)
3
May 5, 2020 Item #11 Page 50 of 72
l>
::i ::!. ....
i:,.
\,J
:::i \,J
:::i
:;:
i)
3
;I:
.D
,:i
ll
ti i)
J1 :::i
:) .....
J1 .D
Housing Trust Fund-assisted Housing
Year Development
New Construction
1999 Rancho Carlsbad
1999 Cherry Tree Walk
1999 Tyler Court
1999 The Cliffs
2000 Laurel Tree
2000 Poinsettia Station
2000 Rancho Carrillo
2001 Vista Las Flores
2001 Serrano
2004 Mariposa Apts
2005 La Costa Paloma
2005 Mulberry at Bressi Ranch
2005 Village by the Sea
2007 Cassia Heights
2007 The Bluffs
2008 Hunter's Point
2013 Laguna Point
2013 Rose Bay
2016 Juniper at me !-'reserve
Other
1997 La Posada de Guadalupe
1999 Various homeowners
2009 Various
2010-2019 Various homeowners
2012 NC Solutions for Change
2013 Carol & Harding
2014 NG ::;01ut1ons ror Gnange
Extremely
Type Low
22 homebuyers
Condos
Senior Apartments 37
Townhomes
Apartments
Apartments
Apartments
Apartments
Condos
Apartments 32
Apartments
Condos
Condos
Apartments
Condos
Apartments
1 homebuyer
. 1 homebuyer .
Apartments
Totals 69
Shelter
Downpayment assistance
Downpayment assistance
Minor home repair
Property Acquisition (Vista)
Property Acquisition
1-'roperty Acqu1s1t1on
Totals
Exhibit 7
Income Level
Housing Trust
Fund Amount
· Very Low Low Total (Fund 133)
22 22 $ 752,533
42 42 453,600
38 75 1,000,000
5 5 75,000
138 138 434,000
92 92 920,000
32 84 116 1,157,584
17 11 28 363,948
90 90 1,350,000
74 106 1,060,000
53 127 180 2,070,000
100 100 1,840,000
11 11 220,000
56 56 1,321,529
10 10 200,000
90 78 168 1,932,000
0 108,150
0 229,775
0 1,280,000
378 792 1,239 $ 16,768,119
50 beds $ 200,000
133 133 $ 1,680,000
22 22 255,518
12 12 32,877
780,000
44 44 7,408,000
16 16 2,646,000
227 227 $ 13,002,395
_ _. -· _. ____ -------_____ ,, __ ,,, ________ _ May 5, 2020 Item #11 Page 63 of 72
Jeff Murphy
Community Development Director
May 5, 2020
Gap Analysis for Inclusionary
Housing Fee
Council Direction
•December 17, 2019 Minute Motion
•Consider the initiation of study to update:
−Inclusionary housing in-lieu fee
−Affordable housing credit purchases
In-Lieu Fee
•Projects ≤6 units have option of paying a fee
in-lieu of building affordable units
•Fee is currently $4,515; last updated in 1996
•Generated roughly $1.7M
In-Lieu Fee
•Gap Analysis
−Recommendations on an updated fee
−Calculation methodologies
−Possible policy options
•Analysis will cost ~$50,000
In-Lieu Fee
•Helps address related Minute Motions
involving the inclusionary ordinance
−December 10, 2019
−August 20, 2019
Housing Credit Purchases
•Governed by Policy 58
•Purchase of surplus units in another project
•City must financially participate
•Housing credit purchase amount is based on:
−City’s total financial subsidy in the project
−Excess units in the project
Housing Credit Purchases
•Only two projects have units available
−Cassia Heights (34 credits at $60,011/unit)
−Tavarua Senior Apts. (31 credits at $84,000/unit)
•Credit prices will vary
•Units available only if project is in same quadrant
Housing Credit Purchases
•Program unique to Carlsbad
•Served the city extremely well over the years
(generated roughly $8.6M)
•Staff does not recommend any amendments to the
program at this time
Recommendation
•Consider the information presented
•If City Council determines that a gap analysis be
initiated, adopt the resolution
•Appropriate $50,000 from contingency account
Jeff Murphy
Community Development Director
May 5, 2020
Gap Analysis for Inclusionary
Housing Fee