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HomeMy WebLinkAbout1995-09-12; City Council; 13309; AFFORDABLE HOUSING POLICY RECOMMENDATIONSL. .. . g h .: $ pc a c, a a 4 co In a, 0 a .rl 2 g u 0. g H u 4 i g u H o 5 B -,: DEPT. CITY OF CARLSBAD - AGEN a A BILL 0 AB# /!309 TITLE: AFFORDABLE HOUSING POLICY MTG. @5Ac RECOMMENDATIONS CITY 1 DEPT. HlRED CITY I RECOMMENDED ACTION: For City Council to receive information from staff on the status of affordable hous and related policy issues; and to adopt guiding future affordable haus implementation. (Policy Number 33' ). ITEM EXPLANATION: The Housing Element of the General Plan represents "a commitment by the City ' existing and future housing needs for all economic ranges". This document establ goals and objectives and an extensive set of policies and programs to aid in the Since the adoption of the Housing Element in 1991, numerous programs implemented, including the City's lnclusionary Housing Ordinance in 1993. With Element Annual Progress Report for 1994, the City Council received a status repoi 50 programs contained in the document. While implementation sf the City's housing programs and policies has been succ also raised questions as to the most appropriate and effective way to achieve the This is particularly true with respect to implementation of the lnclusionary Housir where this City has moved into new territory where there are few established guideli goal of this item to review the status of the Ci,ty's affordable housing effort and s from the City Council in several key areas. The Affordable Housing Agenda attached as Exhibit 1 covers 1) a brief review housing goals and programs, and 2) identification of several key affordable hou: implementation issues. Draft policies or options will be included in connection witt These may be used to guide the City Council in its discussion and in taking action The staff has developed the Affordable Housing Agenda with the expectation Council will consider the items over the course of two or more meetings, FISCAL IMPACT: Several of the policy issues and draft policy recommendations may have fi depending on the direction taken by the City Council. These potential impacts will I in future reports related to the specific policies or programs being recommended. EXHIBITS: 1. Affordable Housing Agenda 2. Summary of Housing Goals, Priorities and Programs (Presented at Meeting of August, 3. Status of City of Carlsbad Affordable Housing Projects and Programs (Presented at Meeting of August 8, 1995) 4. Draft Policy Entitled "Off-site and Combined lnclusionary Housing Projects" (Adopted 01 5. Affordable Housing Credits Pricing Options 6. Draft Policy Entitled "Sale of Affordable Housing Credits" (Policy No. 58) 7. Draft Policy Entitled "Financial Assistance Guidelines For Affordable Housing" (Futur 8 lnclusionary Housing In-lieu Fee Options (Futtrre Fieetirig) t; 0 0 CITY COUNCIL AFFORDABLE HOUSING AGENDA 1. Review Housing Goals, Priorities & Proqrams (Michael Holzmiller & Evan Beckc Presentation: Briefly review housing goals and priorities as they are CI established in the Housing Element and HUD Consolidated Plan (forme Comprehensive Housing Affordability Strategy or CHAS). Report on the status affordable and market residential development; and specific affordable t programs. (See Exhibits 2 and 3). 2. A. Off-site vs. On-site satisfaction of inclusionary requirements. (Evan Beck( (See Exhibit 4) Presentation: b b Review of the "Combined Project" provision of the lnclusionary Ordi Presentation of a proposed policy and procedure which will guide st City Council in determining the appropriateness of off-site pro1 including clarification of Planning Commission and Housing Comr roles in processing. Recommended Action: Adopt Policy Statement Sale of La Terraza Affordable Housing Credits. (Jim Elliott & Evan Beckc (See Exhibit 5) Presentation: Presentation of proposed policy and procedure which will sale. Recommended Action: Adopt Policy Statement. C. lnclusionary In-lieu Fees. (Jim Elliott & Evan Becker) B. staff and City Council in selecting purchase proposals and establishing tE (See Exhibit 6) Presentation: amending. Recommended Action: Direct staff to amend lnclusionary Housing Ordin; Presentation of existing In-lieu Fee provisions and optic 3. Financial Assistance for Affordable Proiects (Jim Elliott & Evan Becker) (See Exhibit 7) Presentation; projects Recommended Action: Adopt Policy Statement Presentation of proposed guidelines for assisting affordable h 0 "EXHIBIT a .. 7 . S v) a, Y ln . -. -. m - -. . A 3- 62 D rn 00 0 P - 50 2. 8 0 0 0 0 n -h -i ZT 0 c cn 9) 3 a, v) 2 b w J w L 5" > 0" 2 -h m rn CD 1 0 S v) S CQ I I. c) 5 Q ITI 0 3 CQ a 0 S cn I. 1 7 I. II. 0 1 I. 0 Page 1 of 4 .- Policy No. 58 Date Issued S eD t emb e 1: Effective Date Seutemb4 CITY OF CARLSBAD COUNCIL POLICY STATEMENT Cancellation Date AFFORDABLE HOUSING Sale of Affordable Housing Credits Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. To establish a policy to be followed by City Council and City staff in selling Affordable How housing pursuant to the City's Inclusionary Housing Ordinance (CMC Chapter 2 1.85) BACKGROUND In the development of the 344-unit affordable housing project known as Villa Loma in th Quadrant of the City, the developers and the City created a project which may be treated as Project as defined in the City's Inclusionary Housing Ordinance. With City Council approva Projects allow "some or all of the inclusionary units associated with one residential projec produced and operated at an alternative site". The "alternative site" becomes a Combined Prl Lorna was conceived and developed with City Participation based on the creation of 184 exces housing units which would be available to satisfy other developers' inclusionary housing obli making it a potential Combined Project. City financial participation in the project was also k concept of recovering costs through the sale of the excess units. Furthermore, Villa Loma was I give the City control of these units (Affordable Housing Credits or "Credits") and their sale Combined Project participants. Therefore, it is necessary to establish a policy to guide the effective implementation of these Affordable Housing Credit sales transactions. controlled by the City, to developers who will use the Credits to satisfy obligations to provid Two basic factors will be considered in a Credit sale transaction -- the financial aspect, which j pricing -- this determines cost to a purchaser and revenue to the City; and the affordable hou which is the use of this mechanism to satisfy a developer's obligation under the Inclusion2 Ordinance. Based on these considerations, the following will guide Credit sales: Page : 0 0 I- >. Policy No. 58 CITY OF CARLSBAD Date Issued Septembe Effective Date Septem Cancellation Date - Supersedes No. COUNCIL POLICY STATEMENT AFFORDABLE HOUSING Sale of Affordable Housing Credits Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File. b Price. The Credit price will be determined according to the following formula which dik financial contribution provided to the Villa Loma project by the total number of Crec The local financial contribution consists of all City financial assistance provided to the I as loans or expenditures for land including acxrued interest on such amounts for the F they are outstanding); and the local developer contribution to the project provided in 01 an affordable housing obligation): Affordable Housing Credit Pricinp Formula = Unit Price of Affc + Number of Affordable Housing Credits Local Financial Contribution Housing Credits Available to nearest $1 .Ol City Contribution $4.2 Million* Developer Contribution 184 $28,000* (Aviara Land Associates) ,9 TOTAL $5.1 Million * To be adjusted with the addition of interest. Terms of Purchase and Sale. The commitment to purchase and sell Credits will be ( through an Affordable Housing Agreement as required by the Inclusionary Housing Or( Agreement will contain tRe terms of the Credit sale and will acknowledge the satis affordable housing obligation through participation in a Combined Project (Villa Lorn Pa e 0 ,. >- Policy No. 58 CITY OF CARLSBAD Date Issued September Effective Date Septemk Supersedes No. COUNCIL POLICY STATEMENT Cancellation Date AFFORDABLE HOUSING Sale of Affordable Housing Credits 9 Department and Division Heads, Selection of Purchasers. The following procedure will apply to the selection of pu allocation of Credits: 1. IProiect Review. Staff, through the Cornbined Project Review Committee (see C No. 57) will review all applications andl approved projects with inclusionary requ determine which projects will be recommended to satisfy their obligations purchase of Credits. If the number of acceptable projects have afforda requirements which exceed the availaible number of Credits, projects will be allocated Credits accordingly. Projects will be reviewed and ranked using tl criteria: a) The immediacy of the need to satisfy an affordable housing obligation w the market rate project that is generating the obligation. b) The readiness and capacity of the developer to enter into an Afforda Agreement and perform under its terms. The acceptability of the Combined Project as an off-site option in satisfaction of the affordable housing obligation on-site with respect to th is generating the obligation (see Council Policy No. 57). c) 2, Electing to Purchase Credits. Developers will be notified of staff's recommendat the purchase of Credits and given the opportunity to accept or reject this optior Reservation of Credits. Developers wishing to use the option of purchasing Credj their projects approved with conditions allowing this option. In addition Commission approval, the recommendation of the Housing Commission will be e Inclusionary Housing Obligation. W Credit purchase condition, a reservati( 3, Pa8 0 0 .b .. Policy No. 58 CITY OF CARLSBAD Date Issued September Effective Date Septemk CQUNCIL POLICY STATEMENT Cancellation Date AFFORDABLE HOUSING Sale of Affordable Housing Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Affordable Housing Agreement in the form prescribed by the City with a nc deposit in an amount equal to 10% of the total Credit sale price. The Afforh Agreement will be scheduled for City Council consideration and, if and when a] be executed by the City. The Affordable Housing Agreement will require pa! balance of the purchase price upon execution and prior to fmal map or issuance 1 5. Failure of Develooper to Perform or Denial of Purchase Option. If the developer perform as required, or is denied the option of purchasing Credits, the Credits 1 available to another project(s), subject to this process. ahis policy is subject to all other requirements of the Inclusionary Housing Or( 6.