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HomeMy WebLinkAbout2011-05-24; City Council; 20557; CASSIA HEIGHTS INCLUSIONARY HOUSINGCITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 20,557 5/24/11 HNS DESIGNATION OF CASSIA HEIGHTS APARTMENTS AS A COMBINED INCLUSIONARY HOUSING DEVELOPMENT AND APPROVAL OF PRICE AND PURCHASE OF CREDITS BY THE TIDES PROJECT DEPT. DIRECTO CITY ATTORNEY CITY MANAGER RECOMMENDED ACTION: That the City Council ADOPT Resolution No.2011-108 APPROVING the Cassia Heights Apartment as a combined project under the City's Inclusionary Housing Ordinance and setting the housing credit price, and authorizing the sale of housing credits within the project to private housing developers within the Southeast and Southwest Quadrants of the City to satisfy inclusionary housing requirements, with said participation subject to separate approval by the City Council. That the City Council ADOPT Resolution No. 2011-109 APPROVING a request by K. Hovnanian at Carlsbad, LLC to purchase five (5) affordable housing credits in the Villa Loma or Cassia Heights combined housing project in order to satisfy the affordable housing obligation of the Poinsettia Property - Tides subdivision (CT 05-10X2) project under the City's Inclusionary Housing Ordinance, based on availability of credits. ITEM EXPLANATION: In 2007, the Cassia Heights Apartment development was constructed and units were leased to low income households at affordable rates. The City of Carlsbad financially participated in the project and owns the land upon which the development was constructed. The total financial assistance provided by the City was approximately $2,783,300 or $49,700 per unit, which includes the property acquisition costs. At the time financial assistance was approved for this project, the City Council indicated its intent to establish the development as a combined project for inclusionary housing purposes once Villa Loma credits had all been sold. At this time, the 1 84 housing credits available in the Villa Loma combined project have been either sold or reserved by private housing developers to satisfy inclusionary housing requirements for their projects. Therefore, it is an appropriate time to approve the Cassia Heights Apartments as a combined project for inclusionary purposes, and to set the housing credit price. Pursuant to the Inclusionary Housing Ordinance (CMC 21 .85.080), the City Council has sole discretion to authorize a residential site to be designated as a combined inclusionary housing project. The Council also has sole discretion as to which private developments may satisfy their inclusionary housing obligations by financially participating in an off-site combined housing project. An action at this time to designate the Cassia Heights Apartments as a combined housing project does not concurrently approve any specific projects for financial participation. Separate action is required to approve the specific projects to purchase credits and financially participate in the noted combined project. DEPARTMENT CONTACT: Debbie Fountain 760-434-2935 debbie.fountain® carlsbadca.gov FOR CITY CLERKS USE O/VL Y. COUNCIL ACTION:APPROVED DENIED CONTINUED WITHDRAWN AMENDED D D D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D SEE MINUTES Page 2 As noted within this agenda bill, a separate action is being requested to approve a purchase of credits by K. Hovnanian in Villa Loma or Cassia Heights, if Cassia Heights is designated as a combined site. Housing credits in Villa Loma are currently not available due to past purchases and/or reservations. Therefore, it is necessary to obtain approval for the noted project to purchase credits in the Cassia Heights combined project, if so designated. Housing Credit Price On September 12, 1995, the City Council adopted Council Policy No. 58. This policy sets forth a framework for setting the credit price for city-sponsored combined housing projects and the policy for selling those credits. The policy is broad-based and intended to apply to all future combined projects where the City intends to sell housing credits. The Villa Loma project, which was the first combined inclusionary housing project approved within the City of Carlsbad, is used as the example for how to calculate the housing credit price under the policy. The policy indicates that the price should be set by dividing the local financial contribution by the total credits available. The local financial contribution is to consist of all City financial assistance (including land, loans, etc). For example, the total financial contribution for Villa Loma was $5.1 million. The total number of housing credits available was 184. Using the policy calculation, the credit price was originally equal to $28,000. It was then adjusted annually with the addition of interest. The current price is $49,000. Through application of City Policy No. 58, staff is recommending that the credit price for Cassia Heights be initially set at $55,900 and that it be increased annually by 3% hereafter. In 2007, the financial assistance from the City was provided to the Cassia Heights project in the amount of $49,700 per unit. The loan/ground lease accrues interest at 3% per year, if no surplus cash payment is made. The developer has not yet had adequate surplus cash to make a payment on the loan or ground lease, which is not uncommon in the first 5 years. Therefore, it is accruing interest at 3% per year. As a result, staff is recommending that the initial subsidy be increased by the interest due (4 years @ 3% interest per year), and that the credit price be set at $55,900 for the first year. Credit Purchase by Poinsettia Properties - The Tides The Poinsettia Properties/ The Tides was originally approved by the Planning Commission on May 17, 2006, and the tentative tract map approval was extended in 2009 to expire on May 17, 2012. The project is a subdivision of 5.12 acres into 29 small-lot, single family residential lots that are a minimum of 5,000 square feet in size, the creation of 2 open space lots, 1 private street lot, and ultimately the development of 27 single family homes. As a condition of approval, the project was required to purchase five (5) credits within the Villa Loma development to satisfy its inclusionary housing obligation. This credit purchase, however, has not yet been approved by the City Council as required by the inclusionary housing ordinance. Therefore, the developer request is being submitted to the City Council at this time for approval. Additionally, staff has recently determined that the previously approved housing credits in Villa Loma (184 total) have either been purchased or reserved and may not be available to this project. Therefore, staff is requesting that the project be approved to purchase in either Villa Loma or Cassia Heights to preserve this opportunity for the noted development. Page 3 The proposed project is a small subdivision. Therefore, it would be difficult to physically or financially integrate the required affordable housing units within the market rate subdivision. As a result, the developer 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) and the Planning Commission have made recommendations to the City Council to approve the purchase of credits based on the criteria set forth within the noted policies. Staff Recommendations Staff recommends the following actions by the City Council: 1. Approve the attached resolution to designate the Cassia Heights Apartments as a combined project for inclusionary housing purposes. 2. Approve the attached resolution to set the housing credit for Cassia Heights Apartments at $55,900, with a 3% increase in the price of the credit per year. 3. Approve the attached resolution and agreement to allow the developer of the Poinsettia Properties/The Tides project (CT 05-10) to purchase five (5) credits within either the Villa Loma or Cassia Heights development, depending on the availability of credits at the time said developer receives building permits and pays said fee. FISCAL IMPACT: No funding is requested at this time. Other than staff time to process the changes to the developer fee schedule, there are no other anticipated costs for the proposed actions. If approved, the housing credit price for the combined project known as Cassia Heights Apartments will be $55,900 per credit for fiscal year 2011-12. It will increase by 3% every year thereafter until such time as all of the credits are sold to private developers. The minimum amount of revenue anticipated is $3.1 million. The housing credits for Poinsettia Property/The Tides will be purchased at the time building permits are obtained from the City. The price for said credits will be that which is in place at the time the building permits are approved for the proposed development. As noted above, the current credit price for Villa Loma is $49,000 and the initial price suggested for Cassia Heights is $55,900. ENVIRONMENTAL IMPACT: City Council's action to designate an existing affordable housing development as a combined project for inclusionary housing purposes, to set the housing credit price, and 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 Page 4 a project that would have a significant environmental effect nor commit the City to approve any such project. EXHIBITS: 1. City Council Resolution No. 2011-108 APPROVING the Cassia Heights Apartment as a combined project under the City's Inclusionary Housing Ordinance and setting the housing credit price, and authorizing the sale of housing credits within the project to private housing developers within the Southeast and Southwest Quadrants of the City to satisfy inclusionary housing requirements, with said participation subject to separate approval by the City Council. 2. City Council Resolution No. 2011-109 APPROVING a request by K. Hovnanian at Carlsbad, LLC to purchase five (5) affordable housing credits in the Villa Loma or Cassia Heights combined housing project in order to satisfy the affordable housing obligation of the Poinsettia Property - Tides subdivision (CT 05-10X2) project under the City's Inclusionary Housing Ordinance, based on availability of credits. 3. Affordable Housing Agreement between the City of Carlsbad and K.Hovnaninan Companies (with signatures from the appropriate representatives of K.Hovnanian Companies) 1 CITY COUNCIL RESOLUTION NO. 2011-108 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, TO APPROVE THE DESIGNATION OF THE CASSIA HEIGHTS 3 AFFORDABLE APARTMENTS AS A COMBINED PROJECT UNDER THE CITY OF CARLSBAD'S INCLUSIONARY HOUSING ORDINANCE, AND AUTHORIZE THE 4 SALE OF HOUSING CREDITS WITHIN THE PROJECT TO OTHER HOUSING DEVELOPERS WITH PROJECTS WITHIN THE SOUTHWEST OR SOUTHEAST 5 QUADRANTS OF THE CITY, SUBJECT TO FINAL APPROVAL BY THE CITY COUNCIL. 6 7 WHEREAS, in 1993, the City of Carlsbad adopted an Inclusionary Housing Ordinance, 8 Chapter 21.85 of the Carlsbad Municipal Code, which requires all housing developers to provide 9 at least 15% of the housing units they construct to be affordable to lower income households; and, 10 WHEREAS, pursuant to Chapter 21.85.080 of the Carlsbad Municipal Code, the City 11 has sole discretion to authorize a residential site to be designated as a combined inclusionary 12 housing proj ect; and, 13 WHEREAS, the City Council also has sole discretion as to which housing developments 14 may satisfy their inclusionary housing obligations by financially participating in an off-site 15 combined project; and 16 WHEREAS, the City of Carlsbad has previously partnered with Affirmed Housing 17 Group to construct a total of fifty-six (56) apartment units affordable to low and very low income 18 households on property owned by the Agency and located at 2029 Cassia Way, at the corner of 19 Cassia and El Camino Real and on the border of the Southeast and Southwest Quadrants of the 20 City of Carlsbad; and 21 WHEREAS, said units are excess units in that they were not be provided to meet the 22 inclusionary requirement of a specific master housing development or other subdivision but may 23 be used to do so if approved by the City Council; and 24 WHEREAS, the City Council has previously expressed a desire to sell the excess 25 housing credits produced by said project, Cassia Heights Apartments, at 2029 Cassia Way to 26 housing developers with a small inclusionary housing requirement for developments located 27 within the Southwest and/or Southeast Quadrants of the City; and 28 1 WHEREAS, the City Council has an interest in providing a second combined project 2 within the Southeast/Southwest Quadrant to assist small housing developers in their effort to 3 satisfy their inclusionary housing requirements due to the fact that the first combined project, 4 known as Villa Loma, has sold or reserved all of the 184 affordable housing credits it had 5 available for purchase. 6 NOW, THEREFORE , BE IT HEREBY RESOLVED by the City Council of the City 7 of Carlsbad, California, as follows: 8 1. The above recitations are true and correct. 2. The City Council hereby designates the fifty-six (56) unit Cassia Heights Affordable Rental development which has been previously constructed in partnership with the City of Carlsbad on property located at 2029 Cassia Way as a combined housing project pursuant to Carlsbad Municipal Code 21.85.080. 3. The City Council hereby authorizes the sale of fifty-six (56) affordable housing credits within the project to one or more small housing developers to assist them in their effort to satisfy their inclusionary housing obligations, subject to final financial participation approval by the City Council. 14 4. The City Council reserves its sole discretion to decide which private housing , <- developments within the Southeast or Southwest Quadrants will be permitted to satisfy their inclusionary housing obligations by financially participating in an off- ,, site combined housing project. 17 5. The City Council hereby sets the housing credit purchase price for said combined project at $55,900. This housing credit purchase price has been calculated based on the subsidy provided per unit by the City of Carlsbad in 2007 ($49,700/unit) for property acquisition and construction, plus interest accrued over the past four (4) years calculated at three (3) percent per year. This fee shall be increased by the consumer price index (CPI) per year until such time as all of the credits have 20 been purchased by approved developers or builders, unless the City Council approves an alternate interest rate through separate action. 21 6. The Housing Credit Purchase Price is not a development impact fee. Therefore, it 22 is not subject to the requirements of California Government Code Sections 66001 and/or 66006. 23 24 25 26 //// 27 //// 28 //// 1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council 2 of the City of Carlsbad on the 24th day of May , 2011, by the following vote to wit: 3 .. AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard. 4 " 5 NOES: None. 6 7 ABSENT: None. 8H 9 10 11 12 13 14 15 LOTfRAINE M. WOOD, City Clerk 16 (SEAL) 17 18 19 20 21 22 23 24 25 26 27 28 / /.i/-^,"""' J—•* 1 CITY COUNCIL RESOLUTION NO. 2011 -109 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING A REQUEST BY 3 K.HOVNANIAN AT CARLSBAD, LLC TO PURCHASE FIVE AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA OR CASSIA HEIGHTS AFFORDABLE HOUSING PROJECTS, AS 5 CREDITS ARE AVAILABLE, IN ORDER TO SATISFY THE AFFORDABLE HOUSING OBLIGATION OF THE POINSETTIA 6 PROPERTIES/THE TIDES SUBDIVISION PROJECT UNDER THE CITY'S EXCLUSIONARY HOUSING ORDINANCE. 7 APPLICANT: POINSETTIA PROPERTIES/THE TIDES CASE NO: CT 05-10 WHEREAS, K. Hovnanian at Carlsbad, LLC has received approval of Tentative Map CT 05- 1 0 for the development of a 27 unit residential development; and 12 WHEREAS, K.Hovnanian at Carlsbad, LLC has requested approval from the City of 1 3 Carlsbad City Council for the purchase of five affordable housing credits in the Villa Loma or Cassia Heights affordable housing projects, as credits are available, to satisfy the inclusionary housing requirement of Tentative Map CT 05-10; and WHEREAS, the City Council did hold a public meeting to consider said request for the 17 purchase of Affordable Housing Credits by K.Hovnanian, 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. 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 5 6 7 8 9 10 11 12 13 14 15 16 III 17 I/I 18 III 19 20 '" 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 III 28 4. That based on the information provided within the City Council Staff Report and testimony presented during the public meeting of the City Council, the City Council hereby APPROVES a request by K.Hovnanian at Carlsbad, LLC to purchase five affordable housing credits in the Villa Loma or Cassia Heights affordable housing projects, as credits are available, in order to satisfy the affordable housing obligation of the Poinsettia Properties/The Tides subdivision project under the City's inclusionary housing ordinance. 5. That the City Council hereby authorizes the Assistant City Manager to execute the Affordable Housing Agreement in substantially the form presented to the City Council as Exhibit 3 of the City Council Staff Report and to execute such other documents, or take other actions as may be necessary or appropriate to assist the developer in acquiring the Affordable Housing Credits. 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 24th day of May , 2011, by the following vote to wit: AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard. NOES: None. ABSENT: None. MATT HA'LL, Mayor ATTEST: (SEAL) M. WOOD, City Clerk Recording Requested by: City of Carlsbad yyhen 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 THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this "2^? day of &>/ , 2011, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to as the "City"), and_K.HOVNANIAN AT CARLSBAD, LLC., a California limited liability company (hereinafter referred to as the "Developer"), is made with reference to the following: RECITALS A. Developer is the owner of certain real property in the City of Carlsbad, County of San Diego, State of California, described in "Attachment A", which is attached hereto and incorporated herein by this reference, and which is the subject of a Tentative Map (CT05-10), which provides conditional approval of the construction of twenty-seven (27) single family dwelling units ("Project"). B. Chapter 21.85 of the Carlsbad Municipal Code requires that this Affordable Housing Agreement shall be entered into between the City and Developer as a means of satisfying Developer's affordable housing obligation ("Affordable Housing Obligation"), as such is defined under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. 6096 provides that the Affordable Housing Obligation of five (5) units 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 covered by Carlsbad Tract No. CT05-10 by reason of the approvals of the Tentative Map of CT 05-10, including Condition No. 15 listed in Planning Commission Resolution No. 6096, and a Planned Unit Development (PUD 05-08), and any other applicable approval. (b) Developer shall purchase five (5) Affordable Housing Credits for an amount established by resolution of the City Council and as required by Condition No. 15 of Planning Commission Resolution No.6096. The fee shall be paid prior to Developer receiving any building permits for the Project. Approved 2/17/11 3. REMEDIES Failure by 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. 15 of Planning Commission Resolution No. 6096. Such failure will allow the City to exercise any and all remedies available to it including but not limited to withholding the issuance of building permits for the lots shown on Carlsbad Tract No. 05-10. 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 Developers' actions or defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. 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 and Redevelopment Department Attn: Housing & Redevelopment Director 2965 Roosevelt Street, Suite B Carlsbad, California 92008-2389 TO THE DEVELOPER: K. Hovnanian at Carlsbad, LLC Attn: Chief Legal Officer 1500 S. Haven Ave., Suite 100 Ontario, California 91761 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. Approved 2/17/11 8. SUCCESSORS This Agreement shall benefit and bind Developer and its successors and assigns. . 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 CITY K. Hovnanian at Carlsbad, LLC a California limited liability company City of Carlsbad, a municipal corporation By: K. Hovnanian Companies of California, Inc. a California Corooratic By: Name Shane Maloney Title Vice President of Oerations By: John Coates, Assistant City Manager By: "" Proper notarial acknowledgment of execution by Developer must be attached. If a Corporation, Agreement must be signed by one corporate officer from each of the following two groups. * Group A. ** Group B. Chairman, Secretary, President, or Assistant Secretary, Vice-President CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: RONALD R. BALL, City Attorney Bv: Jane Mobaldi, Assistant City Attorney ¥ Approved 2/1 7/11 CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT State of California county of On Mfl\J 2W2fll before me, _ personally appeared 0 D C (I ler'S'insert name and title of the officer) WITNESS my hand and official seal. Signature of Notary Public (Notary b 18442 K MORGEN FRY Commission* 1918442 Notary Public - California z San Die8° CountyvC0mm.ExDiresDec24.2014 iiMp^qpV^W^^ who proved to me on the basis of satisfactory evidence to be the person(^whose name^s) is/are~subscribed to the within instrument and acknowledged to me that he/sko/they executed the same in his/her/their authorized capacity(4esr), and that by his/her/their 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. ADDITIONAL OPTIONAL INFORMATION DESCRIPTION OF THE ATTACHED DOCUMENT (Title or description of attached document) (Title or description of attached document continued) Number of Pages Document Date (Additional information) CAPACITY CLAIMED BY THE SIGNER^ D Individual (s) D Corporate Officer (Title) D Partners), D Attonie5Hn-Fact n 'Other INSTRUCTIONS FOR COMPLETING THIS F( Any acknowledgment completed in California must contain v^rmage exactly as appears above in the notary section or a separate acknoyKagment form must be properly completed and attached to that document^Jne only exception is if a document is to be recorded outside ofCalifornia^nsuch instances, any alternative acknowledgment verbiage as may be printed^on such a document so long as the verbiage does not require the notary tojm something that is illegal for a notary in California (i.e. certifying the authored capacity of the signer). Please check the document carefully for proper notarial wording and attach this form if required. • State and County Ljrffjfmation must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. « Date ofpofarization must be the date that the signer(s) personally appeared which rrmsfaTso be the same date the acknowledgment is completed, fhe notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). Print the name(s) of document signer(s) who personally appear at the time of notari nation. Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. he/she/they, is /are ) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording The notary seal impression must be clear and photographically reproducible Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area permits, otherwise complete a different acknowledgment form Signature of the notary public must match the signature on file with the office of the county clerk •;• Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. * Indicate title or type of attached document, number of pages and date. * Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary) Securely attach this document to the signed document 2008 Version CAPA v!2.10 07 800-873-9865 www.NotaryClasses.com CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of "Z74K* On ftlArch fa Date personally appeared before me,nOA rM Here Inlert Name and Title ojfthe Officer (s) o( Sigiiei'(s) CATHIE ZHOU Commission # 1819063 Notary Public • California San Bernardino County My Comm. Expires Oct 21,2012 who proved to me on the basis of satisfactory evidence to be the persorj^sfwhose namej(£J£lf2afe' subscribed to the within instrument and acknowledged to me that ^Aihtf/ll rey executed the same ir^lTJ^hef/their authorized capacityj^ieefrand that bvC^henttielr signature^on the instrument the persop^e^for 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, Place Notary Seal Above Signature OPTIONAL - 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: n-TTV Document Date: fourth )(*, 20/1 rh. Number of Pages:. iiQner(s) Other Than Named Above: Capacity(ies) Clairned by Signer(s) Signer's Name: H_i^_ D Individual D Corporate Officer —Title(s): D Partner — D Limited D General D Attorney in Fact D Trustee D Guardian or Conservator D Other:. RIGHTTHUMBPRINT OF SIGNER Top of thumb here Signer's Name: . ,-^ D Individual _-" D Corporate^Otficer — Title(s): — D Limited D General p^ArtoYney in Fact D Trustee D Guardian or Conservator D Other:. RIGHTTHUMBPRINT OF SIGNER Top of thumb here ©2007 National NotaV Association • 9350 De Soto Ave., P.O. Box 2402 • Chatsworth, CA 91313-2402• www.NationalNotary.org Item #5907 Reorder: CallToll-Free 1 -800-876-6827 ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY Lot 171, of Carlsbad Tract No. 73-24, in the City of Carlsbad, County of San Diego, State of California, according to Map thereof No 7996, filed in the Office of the County Recorder of San Diego County, August 2, 1974. Approved 2/17/11 Lisa Hildabrand All Receive-Agenda Item #.."- For the Information of the: OITJ¥ OOimoiL From: Sent: To: Subject: Debbie Fountain Monday, May 23, 2011 12:14 PM Lisa Hildabrand; Ron Ball Follow Up on Council question Asst. p3 City Manager ^ Hi Lisa. As a follow up to a councilmember question on the proposed amount for the increase of the housing credit price per year, the following additional information is provided. The current Council policy which was originally established for Villa Loma indicates the following formula for setting the housing credit price: Local fina ncial contribution (see definition below) divided by the number of affordable housing credits = unit price of affordable housing credit* The unit price is to be adjusted with the addition of interest. (This requirement could be interpreted to mean that accrued interest is added to the total financial contribution and adjusted accordingly each year only if there is accrued interest — as is done for Villa Loma; or, that the unit price is adjusted each year with the addition of interest at a designated rate - as proposed for Cassia Heights). Local financial contribution is to consist of all city financial assistance provided to the project (either as loans or expenditures for land including accrued interest on such amount for the period of time they are outstanding) as well as the local developer contribution to the project provided in order to satisfy an affordable housing obligation. In the case of the local developer contribution, there were $0 for the Cassia Heights project. Staff has suggested a set interest rate equal to the loan interest rate of 3%. Other options for adjusting the unit price with interest added include: 1. Determine the interest rate to be equal to CPI (which will vary each year) 2. Determine the interest rate to be equal to the City's investment rate in the prior annual period (which will vary each year) 3. Determine interest rate according to Council's desire for an appropriate return on investment Let me know if the Council would like to discuss these additional options Debbie Fountain Housing and Neighborhood Services Director 2965 Roosevelt Street, Suite B Carlsbad, Ca. 92008 Website: www.carlsbadca.gov P:(760)434-2935-Direct P:(760) 434-2811-Office F:(760) 720-2037 - Fax E: debbie.fountain@carlsbadca.gov Date:_ Distribution: City Clerk Asst. City Clerk Deputy Clerk Book CASSIA HEIGHTS –CREDIT PRICETHE TIDES –CREDIT PURCHASEDEBBIE FOUNTAINMAY24,2011MAY 24, 2011 BackgroundBackground•CassiaHeightsApartments–constructed2007Cassia Heights Apartments constructed 2007•Combined Project for InclusionaryCifi i llii didld•City financially participated; acquired land•Total contribution = $2,783,300 ($49,700/unit)•56 units/credits•VillaLomacredits(184)soldorreservedVilla Loma credits (184) sold or reserved Cassia Heights Apartments ­affordableEl Camino Real and Cassia –border of southwest & southeast quadrants3 CombinedProjectCombined Project •CouncilhassolediscretiontodesignateaCouncil has sole discretion to designate a combined inclusionary development•Councildecideswhichprojectscanpurchase•Council decides which projects can purchase creditsDiCiHihA•Designate Cassia Heights Apartments as a combined inclusionary development; allow hdlhdiother developers to purchase credits4 AffordableHousingCreditPriceAffordable Housing Credit Price•CityCouncilPolicyNo58City Council Policy No. 58 •To set price: Divide total local financial contributionbytotalcreditsavailablecontribution by total credits available•$2,783,300 / 56 credits = $49,700 (2007)• No loan payments yet; accrues interest at 3%• Suggested price: $55,900; includes addition of interest of 3% per year (4 py (years) 5 Future Increases to Credit Price•Credit price to be adjusted with the addition ofinterest,perpolicyof interest, per policy•Simple interpretation of policy; set interest rateequaltoloanrate(3%)rate equal to loan rate (3%)•Staff recommendation: set 3% increase to ditihi hiltit tcredit price per year, which is equal to interest rate on loan for Cassia Heights6 Alternative –Price & AdjustmentjTotal contribution + accrued interest/credits available for purchase (e.g. Villa Loma; avg4% increase; 18yrs)p(g;g;y)Year Contribution Accrued Interest Credits Price/Increase2007 $2,783,300 $0 56 $49,700/NA2008 $2,783,300 $83,499 56 $51,200/3%2009 $2,866,799 $86,003 56 $52,700/3%2010 $2,952,802 $88,584 56 $54,300/3%2011 $3,041,386 $91,242 56 $55,900/3%2012 $3,132,628 $93,978 52 $62,000/11%2013$3 226 606$96 79850$67 000/8%2013$3,226,606$96,79850$67,000/8%2014 $3,323,404 $0 46 $72,000/7.5%7 TheTidesCreditPurchaseThe Tides Credit Purchase•Projectoriginallyapprovedin2006;mapProject originally approved in 2006; map extended 2009•LocatedinSouthwestQuadrant;I5&•Located in Southwest Quadrant; I‐5 & PoinsettiaTbild27h•To build 27 homes•Conditioned to purchase 5 housing credits•Requires approval of City Council to proceed8 RecommendedActionsRecommended Actions•CityCouncilapproveResolutionNo2011‐108toCity Council approve Resolution No. 2011108 to designate Cassia Heights Apartments as a combined inclusionary project & to set the ypjhousing credit price at $55,900 (with a set annual increase of 3%)•City Council approve Resolution No. 2011‐109 to allow K.Hovnanian to purchase 5 credits in the pVilla Loma or Cassia Heights, based on availability9