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HomeMy WebLinkAbout2011-09-13; City Council; 20670; AFFORDABLE CREDITS VILLA LOMA AND CASSIA HEIGHTSCITY OF CARLSBAD - AGENDA BILL AB# 20,670 MTG. 9/13/n DEPT. HNS PURCHASE OF AFFORDABLE CREDITS IN THE VILLA LOMA HOUSING AND/OR CASSIA HEIGHTS COMBINED PROJECTS FOR THE MUROYA SUBDIVISION (CT 06-27) DEPT. DIRECTO CITY ATTORNEY CITY MANAGER (p—- RECOMMENDED ACTION: ADOPT Council Resolution No. 2011-208 APPROVING a request by Taylor Morrison of California to purchase seven (7) Affordable Housing Credits in the Villa Loma and/or Cassia Heights combined housing projects, based on the availability of credits, in order to satisfy the affordable housing obligation of the Muroya Subdivision (CT 06-27) project under the City's Inclusionary Housing Ordinance. ITEM EXPLANATION: The Muroya Subdivision was approved by the Carlsbad Planning Commission on April 1, 2010 allowing for the subdivision of an approximately 20 acre parcel of land located north of Aviara Parkway, south of Corte Orchidia, east of Towhee Lane, and west of Black Rail Road. The subdivision will result in 37 detached air-space condominium one-family dwelling units. The applicant is requesting to purchase seven (7) affordable housing credits in the Villa Loma or Cassia Heights Projects, depending on availability of credits, to satisfy the project's inclusionary housing obligation. The City Council is the approval body for the purchase of affordable housing credits. The project is a small subdivision with only 37 units. Due to the small size of the project, it would be difficult to financially integrate the required affordable housing units within the market rate subdivision. Therefore, the developer has submitted a request to purchase housing credits rather than construct affordable units within their development. The City Council has adopted Policies 57 & 58 that govern the sale of affordable housing credits. The policies examine the feasibility of an on-site proposal, the advantages and disadvantages of an off-site proposal, and whether the off-site project advances the City's housing goals and strategies. In reviewing the applicant's request, the Affordable Housing Policy Team (staff) has utilized the criteria contained in the noted policies and has made a recommendation to the City Council to approve the purchase of the credits. This option for satisfying the inclusionary obligations also has a recommendation for approval from the Planning Commission. FISCAL IMPACT: The Affordable Housing Credit at Villa Loma is currently $49,000 per unit, and the credit at Cassia Heights has recently been set at $55,900. The purchase of 7 credits will result in a payment of $343,000 (Villa Loma) or $391,300 (Cassia Heights), based on the current credit purchase prices. Upon receipt by the City, the funds will be deposited to the City's Housing Trust Fund, and shall be used to create additional affordable housing opportunities within Carlsbad. DEPARTMENT CONTACT: Debbie Fountain 760-434-2815; debbie.fountain@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED * D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D Daa Page 2 ENVIRONMENTAL IMPACT: City Council's action to allow the purchase of credits is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061(b)(3) "General Rule", as it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment and that said actions would not authorize, permit or guarantee the construction of a project that would have a significant environmental effect nor commit the City to approve any such project. EXHIBITS: 1. City Council Resolution No. 2011'208 2. Affordable Housing Agreement - Muroya Development 2 1 CITY COUNCIL RESOLUTION NO. 2°11-208 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A REQUEST BY TAYLOR 3 MORRISON OF CALIFORNIA, LLC TO PURCHASE SEVEN AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA AND/OR CASSIA HEIGHTS AFFORDABLE HOUSING PROJECTS, 5 AS CREDITS ARE AVAILABLE, IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE MUROYA 6 SUBDIVISION PROJECT UNDER THE CITY'S INCLUSIONARY HOUSING ORDINANCE. 7 APPLICANT: MUROYA SUBDIVISION/TAYLOR MORRISON CASE NO; CT 06-27 WHEREAS, Taylor Morrison of California, LLC has received approval of Tentative Map 1 CT 06-27 for the development of a 37 unit residential development; and 12 WHEREAS, Taylor Morrison of California, LLC has requested approval from the City of 13 Carlsbad City Council for the purchase of seven affordable housing credits in the Villa Loma 14 and/or Cassia Heights affordable housing projects, as credits are available, to satisfy the inclusionary housing requirement of Tentative Map CT 06-27; and WHEREAS, the City Council did hold a public meeting to consider said request for the 17 purchase of Affordable Housing Credits by Taylor Morrison of California, LLC; and 18 WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of 19 all persons desiring to be heard, said Council considered all factors relating to the application and 20 request to purchase Affordable Housing Credits: 22 NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of 23 Carlsbad, California, as follows: 24 1 . That the above recitations are true and correct. 25 2. The project is consistent with the goals and objectives of the City of Carlsbad's *"} (\Housing Element, the Inclusionary Housing Ordinance, and the Carlsbad General Plan. 27 28 3. Based upon the analysis and recommendations of the Housing Policy Team and the Planning Commission, the City Council finds that the off-site satisfaction of the inclusionary housing requirement is in the public interest. 4 4. That based on the information provided within the City Council Staff Report and 5 testimony presented during the public meeting of the City Council, the City Council hereby 6 APPROVES a request by Taylor Morrison of California, LLC to purchase seven affordable 7 housing credits in the Villa Loma and/or Cassia Heights affordable housing projects, as8 „ credits are available, in order to satisfy the affordable housing obligation of the Muroya Subdivision project under the City's inclusionary housing ordinance. 11 5. That the City Council hereby authorizes the Housing and Neighborhood Services 12 Director to execute the Affordable Housing Agreement in substantially the form presented to the City Council as Exhibit 2 of the City Council Staff Report and to execute such other 14 documents, or take other actions as may be necessary or appropriate to assist the developer in acquiring the Affordable Housing Credits. 16 17 18 19 20 '" 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 13th day of September 2011, by the following vote to wit: AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard. NOES: None. ABSENT: None. MATT HALL, Mayor CAORRAINE M. WOOb, city Clerk (SEAL) Recording Requested by: City of Carlsbad When Recorded Mail to: City of Carlsbad City Clerk's Office Attn: City Clerk 1200 Carlsbad Village Drive Carlsbad, California 92008 (Space above for Recorder's Use) AFFORDABLE HOUSING AGREEMENT (Purchase of Credits) THIS AFFORDABLE HOUSING AGREEMENT ('Agreement") is entered into this /5 day o&Je*l<'20// , by and between the CITY OF CARLSBAD, a municipal corporation ("City") and_Taylor Morrison of California, LLC. ("Developer"), a California Limited Liability Company^ 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 "Exhibit A", which is attached hereto and incorporated herein by this reference, and which is the subject of a Tentative Map (CT 06-27), which provides conditional approval of the construction of 37 detached air-space condominiums single-family dwelling units ("Project"). B. Chapter 21.85 of the Carlsbad Municipal Code requires that this Agreement shall be entered into between the City and the Developer as a means of satisfying the Developer's affordable housing obligation, as such is defined under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. 6686 provides that the Affordable Housing Obligation of seven (7) units ("Affordable Housing Obligation") will be satisfied by the purchase of affordable housing credits, as provided for in Chapter 21.85, Section 21.85.080. 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. THAT SATISFACTION OF DEVELOPER'S AFFORDABLE HOUSING REQUIREMENT WILL BE BY THE PURCHASE 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 Project by reason of the approvals of the Tentative Map of CT 06-27, including Condition No. 13 of Planning Commission Resolution No. 6686, and any other applicable approval. 1 CA 5/12/2011 (b) The Developer shall purchase seven (7) affordable housing credits in the Villa Loma and/or Cassia Heights Affordable Housing developments (within the Southwest/Southeast Quadrant of the City of Carlsbad), based on availability, for an amount established by resolution of the City Council and as required by Condition No. 13 of Planning Commission Resolution No. 6686 no later than two (2) years following City Council approval of this Agreement. The credit fee shall be paid prior to the Developer receiving any building permits for the project. The subject housing credits will be reserved for said Developer for no longer than (2) years following City Council approval of this Agreement. If the Developer does not purchase the subject credits within two (2) years of the date of this Agreement, the City shall make the credits available to one or more alternate developers and the Developer for this Agreement shall then be required to satisfy its Affordable Housing Obligation through alternate methods as approved by the City. 3. REMEDIES Failure of 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. 13 of Planning Commission Resolution No. 6686. 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 Project. 4. HOLD HARMLESS Developer will indemnify and hold harmless (without limit as to amount) City and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as "Indemnitees"), and any of them, from and against all loss, all risk of loss and all damage (including attorneys' fees and expenses) sustained or incurred because of or by reason of any and all claims, demands, suits, or actions, obtained, allegedly caused by, arising out of or pertaining in any manner to Developer's actions or defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. This provision shall survive the term of this Agreement. 5. NOTICES All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registed or certified mail, return receipt requested to the party to receive such notice at the address set forth below: TO THE CITY: City of Carlsbad Housing & Neighborhood Services Department Attn: Housing & Neighborhood Services Director 2965 Roosevelt Street, Suite B Carlsbad, California 92008-2389 TO THE DEVELOPER: Taylor Morrison of CA, LLC Attn: April Tornillo 8105 Irvine Center Drive, Suite 1450 Irvine California 92618 CA 5/12/2011 Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above. 6. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. 7. DURATION OF AGREEMENT This Agreement shall terminate and become null and void upon the payment of the affordable housing credits, or the repeal, termination, or modification of any applicable ordinance which act would render the Affordable Housing Obligation unnecessary or unenforceable. 8. SUCCESSORS This Agreement shall benefit and bind the Developer and any successive owners of affordable housing lots. 9. SEVERABILITY In the event any provision contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction, the remaining provisions of this Agreement shall nevertheless, be and remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the day and year first above written. DEVELOPER tau/6.r fV)6YmeP/?^i.&rvvui(L ^ CITY OF CARLSBAD ^ """" **"""" "~ * By: yT7""" _ By: x | T f\ [ L. Debbie Fountain, Housing and N 1C/-A ft&Q/fU Neighborhood Services Directo Dated: Name:"!'"v" Title:\|\(_/ Dated: (Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant treasurer must sign for corporations. Otherwise, the corporation must attach a resolution certified by the secretaiy or assistant secretary under corporate seal empowering the office(s) signing to bind the corporation.) (If signed by an individual partner, the partnership must attach a statement of partnership authorizing the partner to execute this instrument.) CA 5/12/2011 STATE OF CALIFORNIA COUNTY OF _ On _<5\?\U2?D -.30 1\ Public, personally appeared )SS , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to instrument and acknowledged to me that / ' and that by^Whefyttieir signature(^) on the person(s/acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. •^ -uMy Commission Expires: '"" r Notary Name:. Notary Registration Number:. This area for official notarial seal Notary Phone:_ County of Principal Place of Business:. LORI MICHEL | CO MM #1858495 m Notary Pub)(c-Callfomia 52 ORANGECOUNTY •* My Comm. Exp. JULY 20,2013 » CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ) County of On Notary Public, personally appeared before me, who proved to me on the basis of satisfactory evidence to be the person(s$ whose subscribed to the within instrument and acknowledged to me thatll&ferie/they executed the same in(his)hef/tfeeir authorized capacity(io's'), and that by (nrafhet/iheir signature^ on the instrument the person(s), or the entity upon behalf of which the person(s^ acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS mvjhand and official seal. Signature LORI MtCHEL COMM #1858495 rn Notaty Pubtto-Caiifomla S2 ORANGE COUNTY My Cpmm. E*p. JULY 20. Z)13> ^ (Seal) (Proper notarial acknowledgment of execution by Contractor must be attached.) APPROVED AS TO FORM: Ronald R. Ball, City Attorney By:Dated: Jane. Mobaldi, Assistant City Attorney CA 5/12/2011 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY The East One-Half of the Northeast Quarter of the Northwest Quarter, Section 27, Township 12 South, Range 4 West, San Bernardino Base and Meridian, in the City of Carlsbad, County of San Diego, State of California, According to United States Government Survey. CA 5/12/2011 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 State of California±LCounty of. BlisLLLOn 'Date personally appeared before me,A - ^AJJLU^r~ff, tiuuf Here Insert Name and/fjtle of (fie Officer / V Name(s) of Signer(s) SHERRY A. FREISINGER | Commission # 1923590 t Notary Public - California 1 San Diego County g My Cornm. Expires Feb25.2015i who proved to me on the basis of satisfactory evidence to be the person^ whose name^) is/a/6 subscribed to the within instrument and acknowledged to me that h^/she/th^y executed the same in hi^/her/th^ir authorized capacity(ie^), and that by hi^/her/thefr signature(^) on the instrument the person(s}, or the entity upon behalf of which the person(s^ acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my h Place Notary Seal Above Signature: OPTIONAL —4)Signature of Notary Publi©- Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date:Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: D Corporate Officer — Title(s):. H D Partner — D Limited LJ General D Attorney in Fact D Trustee D Guardian or Conservator D Other: Signer Is Representing: Top of thumb here Signer's Name: D Corporate Officer — Title(s): D Individual D Partner — D Limited O General D Attorney in Fact D Trustee D Guardian or Conservator D Other: Signer Is Representing: RIGHT THUMBPRINT OF SIGNER Top of thumb here i I II ^^Z^s*^*^*^^^© 2010 National Notary Association • NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907