HomeMy WebLinkAbout2007-05-08; City Council; 18986; Seacrest Ridge Affordable Housing AgreementCITY OF CARLSBAD - AGENDA BILL
AB# 18,986
MTG. 05/08/07
DEPT. HRED
SEACREST RIDGE AFFORDABLE
HOUSING AGREEMENT
DEPT. HEAD %%&> %&
CITYATTY. d^"
CITY MGR. "3&£>
2007-104 APPROVING an Affordable Housing Agreement
RECOMMENDED ACTION:
ADOPT Council Resolution No. _
with Cyril and JoAnne Kellett, to allow a housing alternative to satisfy the Inclusionary Housing
requirement for the Seacrest Ridge Minor Subdivision.
ITEM EXPLANATION:
The Inclusionary Housing Ordinance allows the Council to approve a housing alternative when that
alternative supports specific housing policies and goals. Alternatives include, but are not limited to,
acquisition and rehabilitation of affordable units, conversion of existing market units to affordable
units, construction of special needs housing projects or programs (shelters, transitional housing, etc.),
and the construction of second dwelling units.
The Seacrest Ridge project (MS 01-07) is located on Ridgecrest Drive and Seacrest Drive, north of
Hillcrest Circle. Cyril and JoAnne Kellett obtained a Minor Subdivision Map for the project and paid a
$18,060 Housing In-Lieu Fee to proceed with their project. The Kelletts requested that they be
allowed to obtain a refund of the $18,060 fee they paid by entering into an Affordable Housing
Agreement with the City to build a second dwelling unit on one of the four lots in the subdivision, and
meeting all requirements of the agreement. City staff indicated that they could support refund of the
fee once the second dwelling was constructed, and that the Council would need to approve the
alternative. The attached Affordable Housing Agreement requires that, prior to obtaining a refund of
the subject fee, the Kelletts must provide proof to the Housing and Redevelopment Director that a
deed restriction has been placed on the property regarding rental of the unit to lower income persons.
RECOMMENDATION
Staff recommends that the City Council approve the proposed affordable housing agreement to allow
a second dwelling unit as an alternative to satisfy the inclusionary housing requirement for the
Seacrest Ridge Minor Subdivision. If approved by the Council, the property owners will receive a
refund of previously paid Housing In-Lieu Fee in exchange for the production of an affordable housing
unit within the subject development in the form of a second dwelling unit.
ENVIRONMENTAL REVIEW
The Planning Director has determined that the project is categorically exempt from the requirements
of the California Environmental Quality Act pursuant to Sections 15315 and 15332. No further
environmental review is required as part of the approval of the alternative to satisfy the City's
Inclusionary Housing Ordinance.
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
H'
D
D
D
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
D
D
D
D
FISCAL IMPACT
A refund of the $18,060 Housing In-Lieu Fee will not substantially impact the Housing Trust Fund's
unreserved cash balance, which is over $10,458,000.
EXHIBITS
1. City Council Resolution No. 2007-104 approving an affordable housing agreement with
Cyril and JoAnne Kellett allowing a housing alternative to satisfy the Inclusionary Housing requirement
for the Seacrest Ridge Minor Subdivision.
2. Affordable Housing Agreement.
DEPARTMENT CONTACT: Frank Boensch, (760) 434-2818, fboen@ci.carlsbad.ca.us
1 CITY COUNCIL RESOLUTION NO. 2007-104
2 APPROVAL OF AN AFFORDABLE HOUSING AGREEMENT WITH CYRIL AND
JOANNE KELLETT TO ALLOW A HOUSING ALTERNATIVE THROUGH THE
3 CONSTRUCTION OF A SECOND DWELLING UNIT TO SATISFY THE
4 INCLUSIONARY HOUSING REQUIREMENT FOR THE SEACREST RIDGE MINOR
SUBDIVISION..
5
6 WHEREAS, Cyril and JoAnne Kellett have obtained a Minor Subdivision for the
7 Seacrest Ridge Minor Subdivision and propose to meet the project's Inclusionary Housing
o0 Ordinance requirement with an alternative housing solution which would result in providing one
9 second dwelling unit which will be affordable to low income households; and
10
WHEREAS, the Inclusionary Housing Ordinance allows, at the discretion of the City
11
Council, a housing alternative when the proposed alternative supports specific housing policies
12
and goals; and
WHEREAS, the City Council did hold a public meeting to consider the developer's
j 5 request to approve an affordable housing agreement to allow one second dwelling unit to satisfy
16 the inclusionary housing requirement for the Seacrest Ridge Minor Subdivision; and
17 WHEREAS, upon hearing and considering all testimony, if any, of all persons desiring
18 to be heard, said City Council considered all factors relating to the proposed inclusionary
19 housing alternative.
20 NOW, THEREFORE, BE IT HEREBY RESOLVED that the City Council of the City
21 of Carlsbad, California, does hereby find as follows:
22
1. The above recitations are true and correct.
23
2. The proposal to provide one second dwelling unit affordable to low income
households as an alternative to paying a Housing In-Lieu Fee to satisfy the
25 inclusionary housing requirement for the Seacrest Ridge Minor Subdivision is
consistent with the goals and objectives, and serves the priorities of, the City of
26 Carlsbad's Housing Element, Consolidated Plan, the Inclusionary Housing
Ordinance, and the Carlsbad General Plan.
27
3. That based on the information provided within the City Council staff report and
28 testimony presented during the public meeting of the City Council, the City Council
3
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hereby approves an Affordable Housing Agreement, in substantially the form
presented and subject to final approval by the City Attorney, to allow one second
dwelling unit as an acceptable housing alternative to paying a Housing In-Lieu Fee to
satisfy the Inclusionary Housing requirement for the Seacrest Ridge Minor
Subdivision.
4. That the Community Development Director or his or her designee is authorized by
the City Council to execute all documents related to approval of the subject
alternative inclusionary housing proposal, including but not limited to an Affordable
Housing Agreement in substantially the form presented to the City Council and
subject to final approval by the City Attorney.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of
the City of Carlsbad, California, held on the stb day of May a 2007, by the
following vote, to wit:
AYES: Council Members Lewis, Kulcbin, Hall, Packard and
Nygaard
NOES: None
ABSENT: None
ABSTAIN:
ATTEST:
LplAINE M. OOD, City Clerk
(SEAL)
DQC# 2007-0328039
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
MAY 14, 2007 4'59 PM
OFFICIAL RECORDS
SAN DIEGO COUNT ,' RECORDER'S OFFICE
GREGORY,I SMITH COUNT, RECORDER
FEES 000
PAGES 9
(Space above for Recorder's Use)
AFFORDABLE HOUSING AGREEMENT
THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this ff^day of
_,2007, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter
referred touas "City"), and CYRIL AND JOANNE KELLETT, (hereinafter referred to as "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 has paid Housing In-Lieu Fees of $18,060 to satisfy the Inclusionary Housing Ordinance
requirement on a four (4) lot minor subdivision (Project).
B Developer had the option of paying an Inclusionary Housing In-Lieu Fee or constructing a
Second Dwelling Unit as a means of satisfying the Developer's affordable housing obligation ("Affordable
Housing Obligation"), as such is defined under Chapter 21 85 of the Carlsbad Municipal Code Developer
agreed to pay the Housing In-Lieu Fee prior to obtaining a building permit for construction of any
residential units in the Project, with the understanding that the Housing In-Lieu Fee would be refunded if a
Second Dwelling Unit was constructed on one (1) lot ("Affordable Housing Lot") The Affordable
Housing Lot which is subject to this Agreement is
APN 167-053-21, 3455 Ridgecrest Drive in the City of Carlsbad, County of San Diego,
State of California
. C Developer has now constructed a Second Dwelling Unit to satisfy requirements of the
Inclusionary Housing Ordinance for the Project on the property described above and more fully in the
Legal Description of subject property attached as "Attachment A" The Affordable Housing Lot shall be
subject to this Agreement and this Agreement shall be recorded on the Affordable Housing Lot
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.
AB 18,986
Reso 2007-104
SATISFACTION OF AFFORDABLE HOUSING REQUIREMENTS MAY BE
MET THROUGH CONSTRUCTION OF A SECOND DWELLING UNIT IF
APPROVED BY THE CITY COUNCIL.
L-
Performance under this Agreement satisfies the Developer's obligation for affordable housing
under Chapter 21 85 of the Carlsbad Municipal Code as applied to the land described in Exhibit A
Housing In-Lieu Fees previously paid to satisfy the Developer's obligation shall be refunded after
satisfying requirements in Section 3 of this agreement to the satisfaction of the City's Housing and
Redevelopment Director
3. SECOND DWELLING UNITS.
(a) Construction of Second Dwelling Unit Developer has constructed a Second Dwelling Unit on
the Affordable Housing Lot as defined under and subject to the requirements contained in Municipal Code
Section 21 85 070
(b) Restriction on Rental of Second Dwelling Unit The maximum monthly rent for the Second
Dwelling Unit, subject to this Agreement, which becomes rented or leased shall not exceed an amount of
thirty percent (30%) of 1/12th of the gross annual income of a low-income household, adjusted for
household size, at seventy percent (70%) of the San Diego County median income, as such median income
is published by the United States Department of Housing and Urban Development from time to time For
purposes of this Agreement, "Rent" shall include a utility allowance as established and adopted by the City
of Carlsbad Housing Authority, as well as all required 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 any separately charged fees, utility charges, or service charges assessed by the lessor and payable
by the tenant (but not including fees and charges resulting from any default by the tenant or damage caused
by the tenant, or fees or charges paid by the tenant to third party utilities or other providers) A sample
schedule showing the calculation of the maximum rental amount for 2006 is attached to this Agreement as
"Attachment B"
(c) Restriction on Tenant Income The Affordable Unit shall be available to households with
incomes not exceeding 80% of the median income for San Diego County, adjusted for actual household
size
(d) Declaration Developer shall require the purchaser from Developer of the Affordable Housing
Lot upon which the Second Dwelling Unit has been constructed to sign an affidavit or declaration under
penalty of perjury, in a form prescribed by the City Housing and Redevelopment Director, which states
that if the Second Dwelling Unit on the affordable housing lot is rented that it shall be rented at a monthly
rental rate not to exceed the rate set forth in paragraph 3(b) Developer shall forward the original
declaration to the City Housing and Redevelopment Director for maintenance in the City's files, and retain
a copy for its own files in the event proof becomes necessary Developer shall sign an affidavit or
declaration to meet requirements of this agreement if the Affordable Housing Lot is not sold and
Developer intends to occupy the single family residence on the Affordable Housing Lot
(e) Deed Restriction Prior to the sale of the affordable housing lot, and prior to Developer
obtaining a refund of Housing In-Lieu Fees, the Developer shall provide proof to the City Housing and
Redevelopment Director that the language contained in "Attachment C", Deed Restriction, has been
included on the Affordable Housing Lot deed and will run with the land so as to restrict subsequent
transfers
' 4. REMEDIES
Failure by 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 Such failure will allow the City
to exercise any and all remedies available to it including but not limited to withholding the issuance of a
final building inspection for any single family residence in the Project
5.' 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
"Indemmtees"), and any of them, from and against all 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,
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 Indemmtees, and any of them with respect
thereto
6. 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
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 DEVELOPERS:
Cyril and Joanne Kellett
3455 Ridgecrest Drive
Carlsbad, CA 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
7. 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
8. DURATION OF AGREEMENT
This Agreement shall terminate and become null and void upon repeal, termination, or modification
of any applicable ordinance which act would render the Affordable Housing Obligation unnecessary or
unenforceable. The restriction set forth in Paragraph 3(b) above shall terminate as to the Affordable
Housing Lot at such time as the Second Dwelling Unit on the Affordable Housing Lot has reached the end
of its useful life, which is assumed to be not less than 55 years from the date of completion of original
construction
9. SUCCESSORS
This Agreement shall benefit and bind Developers and any successive owners of Affordable
Housing Lot
10. 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 • Cyril and Joanne Kellett CITY
City of Carlsbad, a Municipal corporation
By.
By
Cyril Kellett
Owner
Jcxarine Kellett
Owner
•fl By
Sandra L Holder
Community Development Director
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.
Chairman,
President, or
Vice-President
**Group B.
Secretary,
Assistant Secretary,
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
By.
Mobaldi, Assistant City Attorney
Acknowledgment
STATE OF CALIFORNIA }
}SS.
COUNTY OF SAN DIEGO }
On March 27, 2007, before me, Michael P McCarthy, a Notary Public for the
State of California, personally appeared Cyril F. Kellett and Jo Anne D. Kellett, known
to me or proved to me on the basis of satisfactory evidence to be the persons whose
names are subscribed in the Low Income Housing Agreement with the City of Carlsbad
instrument, and acknowledged to me that they executed the same in their authorized
capacities, and that by their signatures on the instrument the persons or the entity upon
behalf of which the persons acted, executed the instrument.
Witness my hand and seal on the above date.
Michael P. McCarthy
/iTcHAELp."MCCARTHY" i
COMM #1521906 z
Notary Public - California §
San Diego County -»
My^Comm Expires OctJ?4,2Q08f
ATTACHMENT A
LEGAL DESCRIPTION OF SUBJECT PROPERTY
LOT 25 IF SEACREST ESTATES UNIT NO. 1, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO,
STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 3906, FILED IN THE OFFICE OF THE
COUNTY RECORDER OF SAN DIEGO COUNTY, JUNE 10, 1958.
EXCEPTING THEREFROM THAT PORTION DESCRIBED AS FOLLOWS:
BEGINNING AT THE MOST NORTHWESTERLY CORNER OF SAID LOT 25, THENCE ALONG THE
NORTHERLY LINE THEREOF SOUTH 80°I8'00" EAST 500 FEET; THENCE LEAVING SAID NORTHERLY
LINE SOUTH 8°36'20" EAST 62.70 FEET; THENCE SOUTH 64°03'50" WEST 85.75 FEET TO A POINT IN
THE WESTERLY LINE OF SAID LOT 25; THENCE ALONG SAID WESTERLY LINE NORTH 9°42'00"
EAST 109.49 FEET TO THE POINT OF BEGINNING.
ATTACHMENT B
SAMPLE OF MAXIMUM MONTHLY RENTAL AMOUNTS
County of San Diego Metropolitan Statistical Area
Household Income Limits^ >
Note The following household income limits are adjusted for a high cost area as
per the Federal Housing Act of 1937 and calculated using HCD methodology to
comply with Health and Safety Code Sections 50052 5 and 50093
2006
San Diego MSA Median Income $ 64,900
U S Department of Housing and Urban Development
EFFECTIVE March 8, 2006
Hshold
Size
ONE
TWO
THREE
FOUR
FIVE
SIX
SEVEN
EIGHT
30%
Annual Monthly 30 00%
Income Income Monthly
$14,500
$16,550
$18,650
$20,700
$22,350
$24,000
$25,650
$27,300
$1,208
$1,379
$1,554
$1,725
$1,863
$2,000
$2,138
$2,275
$363
$414
$466
$518
$559
$600
$641
$683
35%
Annual Monthly 30.00%
Income Income Monthly
$16,900
$19,300
$21,750
$24,150
$26,100
$28,000
$29,950
$31,900
$1,408
$1,608
$1,813
$2,013
$2,175
$2,333
$2,496
$2,658
$423
$483
$544
$604
$653
$700
$749
$798
40%
Annual Monthly 30 00%
Income Income Monthly
$19,300
$22,100
$24,850
$27,600
$29,800
$32,000
$34,200
$36,450
$1,608
$1,842
$2,071
$2,300
$2,483
$2,667
$2,850
$3,038
$483
$553
$621
$690
$745
$800
$855
$911
Very Low Income
50%
Annual Monthly 30 00%
Income Income Monthly
$24,150
$27,600
$31,050
$34,500
$37,250
$40,000
$42,800
$45,550
$2,013
$2,300
$2,588
$2,875
$3,104
$3,333
$3,567
$3,796
$604
$690
$776
$863
$931
$1,000
$1,070
$1,139
Hshold
Size
ONE
TWO
THREE
FOUR
FIVE
SIX
SEVEN
EIGHT
60%
Annual Monthly 30 00%
Income Income Monthly
$29,000
$33,100
$37,250
$41,400
$44,700
$48,000
$51,350
$54,650
$2,417
$2,758
$3,104
$3,450
$3,725
$4,000
$4,279
$4,554
$725
$828
$931
$1,035
$1,118
$1,200
$1,284
$1,366
65%
Annual Monthly 30.00%
Income Income Monthly
$31,400
$35,900
$40,350
$44,850
$48,450
$52,050
$55,600
$59,200
$2,617
$2,992
$3,363
$3,738
$4,038
$4,338
$4,633
$4,933
$785
$898
$1,009
$1,121
$1,211
$1,301
$1,390
$1,480
70%
Annual Monthly 30 00%
Income Income Monthly
$33,800
$38,650
$43,450
$48,300
$52,150
$56,050
$59,900
$63,750
$2,817
$3,221
$3,621
$4,025
$4,346
$4,671
$4,992
$5,313
$845
$966
$1,086
$1,208
$1,304
$1,401
$1,498
$1,594
Low Income
80%
Annual Monthly 30 00%
Income Income Monthly
$38,650
$44,150
$49,700
$55,200
$59,600
$64,050
$68,450
$72,850
$3,221
$3,679
$4,142
$4,600
$4,967
$5,338
$5,704
$6,071
$966
$1,104
$1,243
$1,380
$1,490
$1,601
$1,711
$1,821
Hshold
Size
ONE
TWO
THREE
FOUR
FIVE
SIX
SEVEN
EIGHT
100%
Annual Monthly 30 00%
Income Income Monthly
$45,450
$51,900
$58,400
$64,900
$70,100
$75,300
$80,500
$85,650
$3,788
$4,325
$4,867
$5,408
$5,842
$6,275
$6,708
$7,138
$1,136
$1,298
$1,460
$1,623
$1,753
$1,883
$2,013
$2,141
115%
Annual Monthly 30 00%
Income Income Monthly
$52,250
$59,700
$67,150
$74,650
$80,600
$86,600
$92,550
$98,500
$4,354
• $4,975
$5,596
$6,221
$6,717
$7,217
$7,713
$8,208
$1,306
$1,493
$1,679
$1,866
$2,015
$2,165
$2,314
$2,463
Moderate Income
120%
Annual Monthly 30 00%
Income Income Monthly
$54,500
$62,300
$70,100
$77,900
$84,100
$90,350
$96,550
$102,800
$4,542
$5,192
$5,842
$6,492
$7,008
$7,529
$8,046
$8,567
$1,363
$1,558
$1,753
$1,948
$2,103
$2,259
$2,414
$2,570
140%
Annual Monthly 30 00%
Income Income Monthly
$63,600
$72,700
$81,750
$90,850
$98,150
$105,400
$112,650
$119,950
$5,300
$6,058
$6,813
$7,571
$8,179
$8,783
$9,388
$9,996
$1,590
$1,818
$2,044
$2,271
$2,454
$2,635
$2,816
$2,999
Note Income levels 80% and below are adjusted by a HUD high cost area allowance
This general income information is calculated from the U S Department of Housing and Urban
Development (HUD) income figures Specific program requirements may vary
Projected rental rates should be based on the following household sizes
Studio = 1 person
1 bedroom = 15 persons
2 bedrooms = 3 persons
3 bedrooms = 5 persons
4 bedrooms = 7 persons
ATTACHMENT C
DEED RESTRICTION
A Second Dwelling Unit has been constructed as part of this property, and shall be maintained
and utilized in accordance with the requirements of Carlsbad Municipal Code Section 21.85 070
for the useful life of the main structure (estimated to be 55 years). The maximum monthly rent
for the Second Dwelling Unit, if rented or leased, shall not exceed an amount equal to thirty
percent (30%) of the gross monthly income of a low-income household, adjusted for household
size, at seventy percent (70%) of the San Diego County median income as such median income is
published by the United States Department of Housing and Urban Development from time to
time. 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. Pnor
to subsequent transfers of the property, seller shall require the purchaser to submit a signed
affidavit or declaration under penalty of perjury on a form satisfactory to the City Planning
Director, to the Planning Department, which acknowledges that the purchaser has read and
understand the restrictions as they relate to the Second Dwelling Unit.