HomeMy WebLinkAbout1998-12-01; City Council; 14955; Poinsettia Gardens Affordable Apartment ProjectCITY OF CARLSBAD -AGENDA BILL IAAB
AB# )f ? 5 5 TITLE: REQUEST FOR APPROVAL OF AN AFFORDABLE DEPT. HD.
HOUSING AGREEMENT FOR THE CONSTRUCTION OF 92
,,,,TG. /a - I- $ & AFFORDABLE APARTMENT UNITS IN PLANNING AREA 5 CITY ATJ-y
TO SATISFY THE INCLUSIONARY HOUSING .
DEPT. H/RED I
REQUIREMENTS FOR THE POINSETTIA PROPERTIES
SPECIFIC PLAN SP-a IO I
RECOMMENDED ACTION:
That the City Council ADOPT Resolution No. 98-393 , APPROVING the Affordable Housing
Agreement for the construction of 92 Affordable Apartment Units in Planning Area 5 to satisfy the
lnclusionary Housing requirements for the Poinsettia Properties Specific Plan.
ITEM EXPLANATION:
On November 10, 1998, the City Council reviewed the Affordable Housing Agreement recommended
by staff for the property located within the Poinsettia Properties Specific Plan (SP210). The
Affordable Housing Agreement, as recommended by Staff, included a phasing plan for release of
building permits which was consistent with other agreements recently approved by the City Council,
but was not acceptable to the developer. The Developer proposed an alternate phasing plan during
the Council meeting on November 10th. The alternate phasing plan was supported by the City Council
(3-1, Kulchin - No). The Council requested that the agreement presented by staff on November 10th
be revised to reflect the developers proposal and then returned for final approval. Staff has revised
the agreement as directed and is now returning it to the City Council for final approval.
Under the revised agreement, the phasing plan allows the Developer to receive a release of building
permits for a total of 230 market rate units and 92 affordable units upon approval of the affordable
housing agreement, approval of the related Site Development Plan (SDP) and recordation of the
Final Map. Once building permits have been issued and the foundations for 92 apartment units are
complete, inspected and approved, the remaining building permits (295 total) for market rate units
can be released. Under the revised agreement, there is no requirement to hold a portion of the
building permits for market rate development until the affordable housing units are complete.
ENVIRONMENTAL REVIEW:
An Environmental Impact Report was approved by the City Council for the entire Specific Plan area
on January 20, 1998 (EIR 96-01). No further environmental review is required as part of the approval
of the Affordable Housing Agreement
FISCAL IMPACT:
No fiscal impact is anticipated as a result of approval of the Affordable Housing Agreement.
EXHIBITS:
1. City Council Resolution No. 98 -393
2. Affordable Housing Agreement (Revised)
f
CITY COUNCIL RESOLUTION NO. 98-393
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, TO APPROVE AN
AFFORDABLE HOUSING AGREEMENT FOR THE
CONSTRUCTION OF 92 AFFORDABLE APARTMENT
UNITS IN PLANNING AREA 5 TO SATISFY THE
INCLUSIONARY HOUSING REQUIREMENTS OF THE
POINSETTIA PROPERTIES SPECIFIC PLAN
APPLICANT: HSL\BPWICHAN, L.L.C
CASE NO: SDP 98-09
WHEREAS, HSL/BP/Michan, L.L.C, is the developer of the Poinsettia Properties Specific
Plan, and is seeking approvals to develop 617 residential units within the Poinsettia Properties
Specific Plan development; and
WHEREAS, the development of 617 residential units will require the development of 92
residential units affordable to low income households as required by Carlsbad Municipal Code
Chapter 21.85 of the City’s Inclusionaty Housing Ordinance; and
WHEREAS, Carlsbad Municipal Code Chapter 21.85 requires the developer of a
residential development to receive approval of an Affordable Housing Agreement which details how
the requirements of the Inclusionary Housing Ordinance shall be met; and
WHEREAS, the developer is processing a Site Development Plan which proposes to
construct 92 apartment units affordable to lower income households as a means to satisfy their
affordable housing requirement as permitted by Carlsbad Municipal Code Section 21.85 of the City’s
Inclusionary Housing Ordinance; and
WHEREAS, the City Council did hold a public meeting to consider the developer’s request
to approve the Affordable Housing Agreement, with a revised phasing plan; and
WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all
persons desiring to be heard, said Council considered all factors relating to the agreement.
CC RESO. NO. 98-393
PAGE2
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. The above recitations are true and correct.
2. Approval of the Affordable Housing Agreement is consistent with the goals and
objectives of the City of Carlsbad’s Housing Element, the Consolidated Plan, the
Inclusionary Housing Ordinance, and the Carlsbad General Plan.
3. The project will provide a total of 92 apartment units which will be rented at levels
affordable to low income households. The project, therefore, has the ability to
effectively serve the City’s housing needs and priorities as expressed in the Housing
Element and the Consolidated Plan.
4. That based on the information provided to the City Council by staff, the Housing
Commission and the Developer, the City Council hereby APPROVES the
Affordable Housing Agreement, as revised, to allow for the development of a 92
unit apartment project within the Poinsettia Properties Specific Plan to satisfy the
developer’s obligation under the City’s Inclusionary Housing Ordinance.
5. That the City Council authorizes the Community Development Director or the City
Manager to execute the Affordable Housing Agreement in substantially the form
presented to City Council and attached hereto, subject to review and approval by the
City Attorney.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City
December
Council of the City of Carlsbad, California, held on the 1st day of / , 1998, by the
following vote, to wit:
AYES: Council Members Lewis, Finnila C Hall
NOES: Council Members Kulchin & Nygaard
ABSENT: None
ABSTAIN: None
ATTEST:
- , ALETHA L. RAUTENI&ANZ, City Clerkj
3
. -
MEMO
December 14,1998
TO: NOTE TO FILE
FROM: Kathleen D. Shoup, City Clerk’s Office, Ext. 5106
SUBJECT: AFFORDABLE HOUSING AGREEMENT
Approved in “concept” by the City Council.
The actual agreement will be processed at a much later date by staff in the
Housing & Redevelopment Department.
e EXHIBIT 2
RECORDING REQUESTED BY:
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk’s Office
Ann.: City Clerk
1200 Carlsbad Village Drive
Carlsbad, California 92008
(Space above for Recorder’s Use)
AFFORDABLE HOUSING AGREEMENT
IMPOSING RESTIUCTfONS ON REAL PROPERTY
This AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON
REAL PROPERTY (“Agreement”), entered into this day of , 1998, by and between
the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to as the “City”), and
HSL/BP/Michan, L.L.C. (hereinafter referred to as the “Developer”), is made with reference to
the following:
A. The Developer is the owner of certain real property in the City of
Carlsbad, in the County of San Diego, California (hereinafter referred to as the “Subject
Property”) described in “Attachment A”, which is attached hereto and incorporated herein by this
reference.
B. The Developer wishes to construct a total of 617 residential units
(hereinafter referred to as the “Master Development”) on the Subject Property. The City has
approved the Poinsettia Properties Specific Plan (the “Specific Plan”) for the Master
Development. The City issued the approval subject to certain Conditions of Approval, including
a condition requiring at least fifteen percent (15%) of the units in the Master Development to be
affordable housing as required by the City’s Inclusionary Housing Ordinance (CMC Chapter
21.85).
C. The Master Development will consist of 8 individual Planning Areas.
Planning Area six will contain up to 61 apartment (or live/work) units. The inclusionary housing
obligation for Planning Area 6 will be provided entirely within Planning Area 6. The developer
of Planning Area 6 will be required to enter into a separate Affordable Housing Agreement prior
to the issuance of a building permit. In addition, the developer shall be required to process an
amendment to this Agreement to increase the total number of housing units which can receive
final map approval up to the maximum approved by the City Council of 823 units for the
Poinsettia Properties Specific Plan.
Revised: 11 /17/98
Page 1
D. The Developer has indicated that it intends to meet its inclusionary
.housing requirement for Planning Areas 1,2,3,4, 5, 7 and 8 by constructing, or causing to be
constructed, a minimum of 92 apartment units in Planning Area 5 of the Specific Plan and as
further described in “Attachment C.” If it is determined at a later date that a surplus of units are
provided within the subject affordable housing project within Planning Area 5, the surplus units
may be used at a later date to satisfy the affordable housing obligation for Planning Area 6 or
other Planning Areas within the Poinsettia Properties Specific Plan Area, subject to approval by
the City of Carlsbad.
E. The Developer is required by the Conditions of Approval to enter into an
Affordable Housing Agreement as required and with the content specified by the City’s
Inclusionary Housing Ordinance, Carlsbad Municipal Code (“CMC”) Chapter 21.85). This
Agreement is an Affordable Housing Agreement pursuant to Section 21.85.020(b)(5) of CMC
Chapter 2 1.85, and shall be executed and recorded prior to the approval of any final map for the
Subject Property.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as
follows:
1. Satisfaction of Affordable Housing Obligation and Conditions of Approval. In
order to satisfy the Conditions of Approval of (SP, CT, etc.), and the requirements of the City’s
Inclusionary Housing Ordinance (CMC Chapter 2 1.85), Developer shall cause a minimum of
ninety-two (92) units of the Master Development to be affordable to lower-income households
(the “Affordable Units”), according to the schedule and terms contained herein. These units shall
satisfy the obligation for a portion of the Poinsettia Properties Specific Plan Area. A total of 525
market rate units and 92 affordable units may be constructed with approval of this agreement. An
amendment to this agreement will be required to receive final, map approval for additional
housing units within the Specific Plan Area, above the subject 6 17 total housing units.
? -. Number and Tvpe of Affordable Units. Developer shall construct, or cause
to be constructed, on the Subject Property at least ninety-two (92) apartment units (hereinafter
referred to as the “Affordable Multifamily Units”).
-4 -. DLrns Governing Provision of Affordable Multifarnilv lJ&
3.1 bgtion of MuWamily Units. A minimum of ninety-two (92) of the
Affordable Multifamily Units shall be constructed in Planning Area 5 of the Specific Plan.
3.2 Size and Bedroom Count. The Affordable Multifamily Units shall include
one, two, and three bedroom units in the numbers and with the square footage indicated in
“Attachment B” to this Agreement.
3.3 Affordability Requirements. The Affordable Units shall be available to
households with incomes not exceeding 80% of the median income for San Diego County,
adjusted for actual household size. Monthly Rents of the Affordable Units shall not exceed
1112th of 30% of 80% of median income for San Diego County, adjusted for assumed household
Revised: 1 l/17/98
Page 2
5
size appropriate for the unit. For purposes of this Agreement, “Rent” shall include a utilit!,
allowance as established and adopted by the City of Carlsbad Housing Authority, as well as all
monthly payments made by the tenant to the lessor in connection with use and occupancy of a
housing unit and land and facilities associated therewith, including and separately charged fees,
utility charges, or service charges assessed by the lessor and payable by the tenant. Median
income figures shall be those published annually by the United States Department of Housing
and Urban Development. Assumed household size figures shall be provided to Developer upon
request to the City of Carlsbad Housing and Redevelopment Department. With respect to each
Affordable Unit, the affordability requirements of this Section 3.3 shall continue for fifty-five
(55 j years from the date of issuance of a Certificate of Occupancy by the City for such unit or
another comparable unit based upon substitution provisions pursuant to the Regulatory
Agreement. The affordability requirements of this Section 3.3 shall be set forth in the
Regulatory Agreement between the Developer or its successor and the City, provided for below,
which shall supersede this Agreement upon recordation of the Regulatory Agreement.
3.4 Affordable Housing Developer. Developer has indicated it will contract
with an affordable housing developer to develop and construct the portion of the Affordable
Multifamily Units to be constructed in Planning Area 5. Developer shall obtain prior City
approval of the affordable housing developer and proposed development agreement for these
units (the “AffordabIe Housing Development Agreement”) prior to execution.
3.5 Schedule for Develop& Affordable Multifamily Units. Developer shall
provide the Affordable Multifamily Units pursuant to the following schedule and as described in
Attachment C:
3.5.1 Prior to the approval of any Final Map for the Master
Development, this Agreement shall be duly executed, and recorded immediately thereafter.
3.5.2 Prior to the issuance of any building permit within the Master
Development, the Developer shall receive approval of a Site Development Plan for al.1 of the
Affordable Multifamily Units included in Planning Area 5.
3.5.3 Developer has indicated it will contract with an affordable housing
developer to develop the Affordable &iultif&ily Units to be constructed in Planning Area 5. -
Developer shall obtain prior City approval of the developer and proposed development
agreement for the units (“Affordable Housing Development Agreement”). The Affordable
Housing Development Agreement shall describe with particularity the financial arrangements for
the construction of the Affordable Multifamily Units, the restrictions applicable to the Affordable
Multifamily Units and the record keeping obligations for the management of the units.
3.5.4 Upon satisfying the conditions stated in Sections 3.5.1 through
Section 3.5.3, building permits can be released for a total of 230 market rate units and for the 92
unit affordable project.
Revised: 1 l/17/98
Page 3
6
3.5.5 Once building permits have been issued and the foundations for the
92 affordable apartment units are complete, inspected and approved, 211 remaining building
permits for 295 market rate housing units may be released.
4. City Approval of Documents The following documents, to be approved in writing
by the City, shall be used in connection with the rental of Affordable Units.
4.1 A marketing plan consistent with the terms of this Agreement, establishing
the process for seeking selecting and determining the eligibility of tenants of the Affordable
Units.
4.2 Form of Rental Agreement.
4.3 A Proper*ty Management Plan.
4.4 A Form of Regulatory Agreement between the Developer of the affordable
project and City (the “Regulatory Agreement”), following the format designated by City.
5. Compliance Retorts. Following completion of construction of any of the
Affordable Multifamily Units, a Compliance Report meeting the requirements of Section
2 1.85.170 of the Inclusionary Ordinance, verifying compliance of all completed Affordable
Multifamily Units with the terms of this Agreement and certified as correct by a third-party, shall
be submitted annually to the Housing and Redevelopment Director. If similar reports on some or
all of the Affordable Multifamily Units are required for regulatory compliance with other
financing programs, those reports may be deemed satisfactory for the purpose of this section by
the Housing and Redevelopment Director, with respect to the portion of the Affordable
Multifamily Units covered by such reports, provided that copies are provided on an annual basis
to the Housing and R.edevelopment Director with a third party certification addressed to the City.
6. Release of Subiect Property From Ameement. The covenants and conditions
herein contained shall apply to and bind the heirs, executors, administrators, successors,
transferees, and assignees of all the parties having or acquiring any right, title or interest in or to
any part of Subject Property and shall run with and burden the Subject Property until terminated
in accordance with Section 13 hereof. Until portions of the Subject Property are released from
the burdens of this Agreement pursuant to this Section 6, the Developer shall expressly make the
conditions and covenants contained in this Agreement a part of any deed or other instrument
conveying ariy interest in the Subject Property. Notwithstanding anything to the contrary set
forth in this Agreement, individual purchasers of single-family units pursuant to an approved
public report in compliance with the California Subdivided Lands Act, and mortgage lenders
holding deeds of trust on such individual units after sale to such purchasers, shall not be subject
to the terms of this Agreement; and the terms of this Agreement shall be of no further force or
effect with respect to such completed unit on the date of the recordation of a deed to the
individual purchaser. Upon issuance of certificates of occupancy for all of the Affordable
Multifamily Units, the entire Subject Property, with the exception of Planning Area 5, shall be
released from the burdens of this Agreement. The burdens of this agreement shall remain in full
force and effect and recorded against Planning Area 5or the 55 year duration of this agreement.
Revised: 11/17/9X
Page 3
7
7. Default. Failure of the Developer to cure any default in the Developer’s
obligations under the terms of this Agreement within ninety (90) days after the delivery OF a
notice of default from the City (or where the default is of the nature which cannot be cured
within such ninety (90) day period, the failure of the Developer to commence to cure such default
within the ninety (90) day period or the Developer’s failure to proceed diligently to complete the
cure of such a default within a reasonable time period. but in no event not greater than 180 days,
will constitute 2 failure to satisfy the Conditions of Approval with respect to the Subject Property
and the requirements of Chapter 21.85 of the CMC and the City may exercise any and all
remedies available to it with respect to the Developer’s failure to satisfy the Conditions of
Approval and Chapter 2 1.85 of the CMC, including but not limited to, the withholding of
building permits for the market rate units within the Master Development.
8. Appointment of Other Agencies. At its sole discretion, the City may designate,
appoint or contract with any other public agency, for-profit or non-profit organization to perform
the City’s obligations under this Agreement.
9. Hold Harmless. Developer will indemni& 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 211 loss,
all risk of loss and all damage (including expense) sustained or incurred because of or by reason
of any and all claims, demands, suits, actions, judgments and executions for damages of any and
every kind and by whomever and whenever made or obtained, allegedly caused by, arising out of
or relating 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. The provisions of
this section shall survive any release or termination of this Agreement.
10. Insurance Requirements. Developer shall obtain, at its expense, comprehensive
general liability insurance for development of the Subject Property naming Indemnitees 2s
additional named insureds with aggregate limits of not less than five million dolfars
($5,000,000), for bodily injury and death and property damage, including coverages for
contractual liability and products and completed operations, purchased by Developer from an
insurance company duly licensed to engage in the business of issuing such insurance in the State,
with 2 current Best’s Key Rating of not less than A-V, such insurance to be evidenced by an
endorsement which so provides and delivered to the City Clerk prior to the issuance cf any
building permit for the Subject Property.
Revised: 11117198
Page 5
11. Notices. All notices required pursuant to this Agreement shall be in writing and
may be given by personal delivery or by registered or certified mail, return receipt requested, to
the party to receive such notice at the addressed set forth below:
TO THE CITY OF CARLSBAD:
CITY OF CARLSBAD
Housing and Redevelopment Department
Attn: Housing and Redevelopment Director
2965 Roosevelt Street, Suite B
Carlsbad, California 92008-2389
TO THE DEVELOPER:
HSWBPMichan, L.L.C.
Attn: Doug Avis
5055 Avenida En&as, Suite 210
Carlsbad, California 92008
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.
12. Integrated 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.
13. Duration of Agreement. This Agreement shall remain in effect for 55 years
following the date certificates of occupancy have been issued for all Affordable Units. This
Agreement, and any section, subsection, or covenant contained herein, may be amended only
upon the written consent of Developer and the Community Development Director.
14. Recordinrr of Agreement. The parties hereto shall cause this Agreement to be
recorded against the Subject Property in the official Records of the County of San Diego.
Revised: 1 l/17/98
Page 6
P
15. Severabilitv. In the event any limitation, condition, restriction, covenant, or
provision contained in this Agreement is to be held invalid, void or unenforceable by any court
of competent jurisdiction, the remaining portions 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 executed
as of the day and year first above written.
DEVELOPER
HSL/BP/MICHAN, L.L.C.
CITY
CITY OF CARLSBAD
A Municipal Corporation
By: By:
DOUGLAS M. AVIS MARTIN ORENYAK
Community Development
Its: Director
Name:
APPROVED AS TO FORM:
Title: RONALD R. BALL
City Attorney
Revised: 1 l/l 7/98
Page 7
- A
STATE OF CALIFORNIA >
> ss.
COUNTY OF -1
On --.2199 , before me, personally appeared
and, personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Notary Public in and for said State
(SEAL)
Revised: 11/17/9X
Page 8
ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
(This attachment will be provided once the parcel
for the Affordable Housing has been legally created)
Revised: 1 l/17/98
Page 9
-
ATTACHMENT B
LOCATION, SIZE, AND BEDROOM COUNT
OF AFFORDABLE UNITS
(This attachment will be added once thefinal SDP is approved
for the project.)
Revised: 1 l/17/98
Page 10
13
h
ATTACHMENT C
BUILDING PERMT PHASING PLAN
Action Reyuired/
Phasing
Receive Approval of an SDP for
the affordable housing project,
and execute and record the
Affordable Mousing Agreement
approved by City Council.
All building permits issued and
foundations complete, inspected
and approved for 92 apartment
units.
TOTAL
# of Building
Permits & Type
Released
230
market rate
building permits.
92
affordable
apartment units
295
market rate
building permits
617 Units
% of Total
Permits for
Project
37%
and
15%
48%
Comments
Final maps allowed for a
total of 6 17 units only.
Building permits will be
used for development of
Planning Areas 5, 7 & 8. A
total of 322 building permits
could be issued at this point
in time; 52% of total
permits.
At this point, all of the
market rate units could be
under, or begin, construc-
tion. The market rate units
will be single family homes.
Allows for a total of 525
market rate and 92
affordable units.
Revised: 11117198
Page 12
December 4, 1998
TO: Housing and Redevelopment Director
FROM: City Attorney
AMENDMENT TO AFFORDABLE HOUSING AGREEMENT IMPOSING
RESTRICTIONS ON REAL PROPERTY FOR THE POINSETTIA PROPERTIES
SPECIFIC PLAN
Please amend paragraph 3.4 Affordable Housina Developer as requested by the City
Council as follows:
“Developer has indicated that it will contract with the Bridge Housing
Corporation to develop and construct the portion of the Affordable
Multifamily Units to be constructed in Planning Area 5. The City Council
has relied on that representation in approving this agreement. Developer
shall obtain prior approval by the City Council of any other affordable
housing developer and shall obtain City Council approval for the proposed
development agreement for these units (the “Affordable Housing
Development Agreement”) prior to execution.”
I respectfully request that you amend the contract to include this provision and deliver it
to the City Clerk for presentation to the Mayor for signature and filing.
Should you have any questions regarding the above, please do not hesitate to contact
me.
0 .
RONALD R. BALL
City Attorney
rmh
c:
City of Carlsbad
December 7,1998
HSL/BP/Michan, L.L.C.
Attn: Doug Avis
5055 Avenida Encinas, Suite 210
Car&bad, CA 92008
RE: AFFORDABLE HOUSING AGREEMENT - POINSETTIA PROPERTIES
Enclosed for your records are copies of Agenda Bill No. 14,955 and Resolution
No. 98-393, which went before the Carlsbad City Council on December 1, 1998,
where the resolution was approved.
Also enclosed is a copy of the Affordable Housing Agreement for construction of
92 Affordable Housing Units in Planning Area 5, satisfying the lnclusionary
Housing requirements for the Poinsettia Properties Specific Plan No. 210.
This agreement was attached to the Agenda Bill but was approved in concept
only by the City Council. When the amended version is approved by the
Carlsbad City Attorney, your office will be provided with signe 7 %greement.
If you have specific questions regarding this agreement please call Ms. Debbie
Fountain, Housing & Redevelopment Director, at (760) 434-2935.
Kathleen D. Shoup
Sr. Office Specialist
1200 Carlsbad Village Drive - Carlsbad, CA 92008-l 989 - (760) 434-2808 a9