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Home My WebLink About2020-01-28; City Council; Resolution 2020-032RESOLUTION NO. 2020-032 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE REAL ESTATE MANAGER TO NEGOTIATE WITH AFFIRMED HOUSING (DBA CARLSBAD VETERAN HOUSING, LP.) TO ACQUIRE PROPERTY AT 3606-3618 AND 3630 HARDING STREET AND 965- 967 OAK AVENUE, AND APPROVING $4,043,392 IN ADDITIONAL FINANCIAL ASSISTANCE TO CONSTRUCT FIFTY (SO) AFFORDABLE APARTMENT UNITS RESTRICTED FOR HOMELESS AND LOWER INCOME VETERAN FAMILIES, AS WELL AS PEOPLE EXPERIENCING HOMELESSNESS WITH SEVERE MENTAL ILLNESS WHEREAS, Affirmed Housing has proposed to construct 50 apartment homes to be affordable to for very low and extremely low-income homeless veterans and veteran families, and people experiencing homelessness with severe mental illness (SMI}, on two noncontiguous sites located at 3606-3618 and 3630 Harding Street and 965-967 Oak Avenue in the city's northwest quadrant, and has requested financial assistance from the City of Carlsbad to assist in the financing of said affordable housing project; and WHEREAS, the first request for financial assistance was submitted to the City of Carlsbad's Housing Commission for review and consideration at their public meeting on July 14, 2016, on which date said Commission recommended that the City Council approve the requested financial assistance in the amount of $4,250,000; and WHEREAS, the Planning Commission approved said affordable housing development, now known as Windsor Pointe Apartments, on Jan. 18, 2017; and WHEREAS, at a public meeting on Feb. 14, 2017, the City Council reviewed the financial assistance request and after considering staff and Housing Commission recommendations, and all testimony of all persons desiring to be heard, approved the financial cash assistance in the amount of $4,250,000 from Carlsbad's Housing Trust Fund (City Council Resolution No. 2017-030); and WHEREAS, subsequent to the project and city financial assistance approvals, Affirmed Housing has diligently pursued financing from other sources, which have been partly successful to date, including the commitment of funding from the County of San Diego; and Jan. 28, 2020 Item #18 Page 10 of 65 WHEREAS, despite the additional funding secured and anticipated, due to high construction costs and the complexities of creating financially feasible supportive housing, there remains a funding gap for the Windsor Pointe Apartments; and WHEREAS, on Dec. 20, 2019, Affirmed Housing made a second request to the City of Carlsbad for additional financial assistance in the amount of $4,043,392 to close the funding gap; and WHEREAS, the Housing Commission held a special meeting on Jan. 17, 2020 to consider the financial assistance request, staff evaluation and recommendation, and the testimony of all persons desiring to be heard on the matter, and upon which the Housing Commission recommended approval of the additional financial request in the amount of $4,043,392. 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 the request for financial assistance from Affirmed Housing is consistent with the goals and objectives of the City of Carlsbad's Housing Element, Consolidated Plan, and other priority policy initiatives such as the Homeless Response Plan. 3. That the city's acquisition of property located at 3606-3618 and 3630 Harding Street and 965-967 Oak Avenue is in conformance with the Carlsbad General Plan in that the proceeds from the acquisition will provide financial assistance to Affirmed Housing to construct Windsor Pointe Apartments, a SO-unit residential project on two non- contiguous sites. The property is designated for residential use by the General Plan Land Use map, and the city's purchase of the property will not change its intended residential use. Furthermore, the intended use of the property is consistent with General Plan goals and programs, including: a. Land Use and Community Design Element Goal 10-G.3, "Promote infill development that makes efficient use of limited land supply, while ensuring compatibility and integration with existing uses. Ensure that infill properties develop with uses and development intensities supportive a cohesive development pattern." Jan. 28, 2020 Item #18 Page 11 of 65 b. Housing Element Goal 10-G.3, "Sufficient new affordable housing opportunities in all quadrants of the city to meet the needs of current lower and moderate income households and those with special needs, and a fair share proportion offuture lower and moderate income households." c. Housing Element Program 3.4 City-initiated Development, "The city, through the Housing and Neighborhood Services division, will continue to work with private developers (both for-profit and non-profit) to create housing opportunities for low, very low, and extremely low-income households." 4. That the request for financial assistance will assist the affordable housing developer in constructing a total of 50, studio, one, two and three-bedroom affordable apartment units for homeless veterans and lower income veteran families, as well as people experiencing SMI, on two noncontiguous sites located at 3606-3618 and 3630 Harding Street and 965-967 Oak Avenue in the city's northwest quadrant. The apartment units will be affordable to households ranging from 25% to 50% of area median income for San Diego County. The project, therefore, can effectively serve the city's housing needs and priorities as expressed in the General Plan Housing Element and the Consolidated Plan, and to meet the housing and service needs of the special needs population of homeless military veterans and lower income military veterans and their families, as well as people experiencing homelessness with SMI. 5. That the City Council hereby approves the additional financial assistance in the amount of $4,043,392 from the city's affordable housing funds to Affirmed Housing (dba Carlsbad Veteran Housing, LP.) for the construction of fifty (50) affordable apartment units on two noncontiguous sites located at 3606-3618 and 3630 Harding Street and 965-967 Oak Avenue in the city's northwest quadrant, for homeless military veterans and lower income military veterans and their families, including homeless veterans, as well as people experiencing homelessness with SMI. This additional assistance shall be combined with the $4,250,000 previously approved on Feb. 14, 2017, for a total financial assistance amount of $8,293,392. The assistance shall be provided as a combination of property acquisition by the City of Carlsbad and lease-back of the Windsor Pointe Jan. 28, 2020 Item #18 Page 12 of 65 Apartments sites to Affirmed Housing, and a residual receipts loan. The source of funds shall be the city's affordable housing trust funds. 6. That Community Development Block Grant (CDBG) funds, to the extent they are available within the project development timeline, may be used towards the property acquisition, with a corresponding reduction to affordable housing trust funds assistance. 7. That the deputy city manager, administrative services shall appropriate funds necessary to purchase the land at an agreed-upon price up to its fair market value, and shall appropriate $50,000 from the Housing Trust Fund for costs related to the property acquisition and execution of documents, including market appraisal services, relocation consultant services, outside legal counsel and other related transaction costs. 8. That the City Council authorizes the real estate manager to negotiate with Affirmed Housing (dba Carlsbad Veteran Housing, LP.) to acquire property at 3606-3618 and 3630 Harding Street and 965-967 Oak Avenue at an amount not to exceed the appraised fair market value, and to lease back said property to Affirmed Housing (dba Carlsbad Veteran Housing, LP.) at $1 per year. 9. That the City Council authorizes the city manager or designee to execute all documents related to provision of the city assistance in the form of a residual receipts loan, including but not limited to a Financial Assistance Loan Agreement, Note, Deed of Trust, and Regulatory Agreement, subject to review and approval by the City Attorney. 10. That this financial commitment is conditional and contingent upon Affirmed Housing receiving all necessary third-party funding commitments, including tax credits and successful negotiation of all required property transfers, loan documents and legal instruments to effectuate the transaction and implement development. The city's commitment of funds, including the previous commitment approved on Jan. 17, 2017, shall be maintained until Aug. 16, 2021, or three tax credit funding rounds, whichever occurs earlier, but may be withdrawn at any time if satisfactory progress is not demonstrated. Jan. 28, 2020 Item #18 Page 13 of 65 11. That, to the extent consistent with applicable law, a preference shall be given to Carlsbad residents, and/or households with an individual that works in Carlsbad, for tenancy at Windsor Pointe Apartments. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 28th day of January, 2020, by the following vote, to wit: AYES: Hall, Blackburn, Bhat-Patel, Shumacher NAYS: None ABSENT: None ~cc-lcrtfomez,, BARBARA ENGLESON, City Clerk Dtp,v:J (SEAL) C;-:!j CJerJt" Jan. 28, 2020 Item #18 Page 14 of 65