HomeMy WebLinkAbout2012-03-27; City Council; Resolution 2012-071EXHIBIT 1
1 RESOLUTION NO. 2012-071
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, ACCEPTING THE ANNUAL
3 HOUSING ELEMENT PROGRESS REPORT FOR JANUARY
2011 THROUGH DECEMBER 2011
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2. That the report is accepted and the City Planner is directed to submit the report
1^ to the California Office of Planning and Research, the California Department of Housing and
Community Development, and the San Diego Association of Governments.
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WHEREAS, the attached Annual Housing Element Progress Report has been
prepared to comply with Government Code Section 65400(a)(2), meet the grant funding
requirements of certain SANDAG and California Department of Housing and Community
Development (HCD) programs, and implement Housing Element Program 3.20. The purpose of
the report is to provide information to the City Council, the State Office of Planning and
Research, the State Department of Housing and Community Development and the public as to
the status of the Housing Element programs, as well as mark the City's progress in meeting its
share of the region's housing needs.
The City Council of the City of Carlsbad, California, does hereby resolve as
follows:
1. That the above recitation is true and correct.
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1 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
2 of the City of Carlsbad on the 27th day of March 2012, by the following vote to wit:
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AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard.
NOES: None.
ABSENT: None.
11 MATTf HALL, Mayor
ATTEST:
iRRAjNE M. WOOD, City Clerk
(SEAL)
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ANNUAL ELEMENT PROGRESS REPORT
Parf 1 - Housing Element Implementation
(CCR Title 25 §6202 )
Parti
page 1 of 3
Jurisdiction
Reporting Period
City of Carlsbad
01/01/2011 -12/31/2011
Table A
Annual Building Activity Report Summary - New Construction
Very Low-, Low-, and Mixed-Income Multifamily Projects
Housing Development Information
Housing with Financial Assistance
and/or
Deed Restrictions
Housing without
Financial Assistance
or Deed Restrictions
1 1 2 3 4 5 5a 6 7 8
Project Identifier
(may t>e APN No.,
project name or
Tenure
Affordability by Household Incomes
Total Units
per
Project
Assistance
Programs Deed
Restricted
Units
Note below the number of units
determined to be affordable without Project Identifier
(may t>e APN No.,
project name or
Unit
Category R=Renter Veiy Low-
:fistilS;Pliil
Low-Moderate-Moderate-
Income
Total Units
per
Project
Est.«Infill
ttaites*
for Each
Development
Deed
Restricted
Units financial or deed restrictions and
attach an explanation how Ihe
jurisdiction determined the units wera
aflordal>le. Refer to instructions. address) 0=Owner Income Income Income Moderate-
Income
Total Units
per
Project
See Instrucfions See Instnictions
financial or deed restrictions and
attach an explanation how Ihe
jurisdiction determined the units wera
aflordal>le. Refer to instructions.
CT 02-28 La Costa
Condominiums
2-4 & 5+
unit R 1 9 9 inc
SDP 06-12(A)
Tavarua Senior
Apartments
5+ unit R 35 15 50 RDA
Affordable
agreement
w/ city
recorded
Also see Part 2
Addendum
j j
1
(9) Total of IVIoderate and Above IVIoderate from Table A3 • ^ 56 200 256
(10) Total by incxDme Table A/A3 • • 35 24 56 200 315
(11) Total Extremely Low-Income Units* 10
* Note: These fields are voluntary m X
I
H
Is)
ANNUAL ELEMENT PROGRESS REPORT
Part 1 - Housing Element Implementation
{OCR Title 25 §6202 )
Parti
page 2 of 3
Jurisdiction
Reporting Period
City of Carisbad
01/01/2011 -12/31/2011
Table A2
Annual Building Activity Report Summary - Units Rehabilitated, Preserved and Acquired pursuant
to GC Section 65583.1 (c)(1)
Please note: Units may only be credited to the table below when a jurisdiction has included a program it its housing element to rehabilitate, preserve or acquire
units to accommodate a portion of its RHNA which meet the specific criteria as outlined in GC Section 65583.1(c)(1)
Activity Type
Affordability by Household Incomes
(4) The Description should adequately document how each unit complies with
subsection (c )(7) of Govemment Code Section 65583.1 Activity Type Extremely
Low-
Income*
Very Low- i Low- j TOTAL
Income Income | UNITS
(4) The Description should adequately document how each unit complies with
subsection (c )(7) of Govemment Code Section 65583.1
(1) Rehabilitation Activity 0
i ;
(2) Preservation of Units At-Risk \ 0
i 1
(3) Acquisition of Units ! • i 0
(5) Total Units by Income 0 0 0 i 0
1 1
Note: This field is voluntary
Table A3
Annual building Activity Report Summary for Moderate and Above Moderate-Income Units
(not including those units reported on Table A)
1.
Singie Family
2. 1 3.
2 - 4 Units 5+ Units
4.
Second Unit
5.
•Mobile Homes
6.
Total
7.
Number of
infill units*
No. of Units Permitted for
IModerate 21 28 7 56
No. of Units Permitted for
Above Moderate 194 6
1
200
Note: This field is voluntary
Parti
page 3 of 3
Jurisdiction
Reporting Period
City of Carlsbad
01/01/2011
ANNUAL ELEMENT PROGRESS REPORT
Part 1 - Housing Element Implementation
(OCR Title 25 §6202 )
12/31/2011
Table B
Regional Housing Needs Allocation Progress
Permitted Units iissued by Affordability
Enter Calendar Year starting with the first year of
the RHNA allocation period. See Example.
\ \
2003 2004 2005 2006 2007 2008 2009 2010 2011
Total Units
to Date
(all years)
Total
Remaining RHNA
by Income Level
Income Level
RHNA
Allocation by
Income Level
Year Year Year
1 ; 2 I 3
Year Year ' Year Year Year
4 5 6 7 8
i . : • 1
Year
9
Total Units
to Date
(all years)
Total
Remaining RHNA
by Income Level
Very Low
ueed
Restricted 1,922
85 100 i 11 35 231
1,691 Very Low Non-deed
restricted
1,922
85 i 11
1,691
Low
Deed
Restricted 1,460
336 200 70 89 10 96 12 4 23 840
619 Low Non-deed
restricted
1,460 1
200
i i 1 1
619
Moderate
Deed
Restricted 1,583
174 184 I
• i 1,165 Moderate Non-deed
restricted
1,583
174 184 I 1 2 2 56 418
1,165
Above Moderate 3,411 672 j 1092 1,330 306 i 358 147 1 163
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371 200 4,639 -1,228
Total RHNA by COG.
Enter allocation number: 8,376
1,267 1,476 1,400 495 1 368 256
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175 377 315 6,129
2.247 Total Units • • •
1,267 1,476 1,400 495 1 368 256
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175 377 315 6,129
2.247
Remaining Need for RHNA Period • • • • •
2.247
Note: units serving extremely low-income households are included in the very low-income pennitted units totals.
ANNUAL HOUSING ELEMENT PROGRESS REPORT
Part 2 - Program Implementation Status
January 2011 through December 2011
CODE KEY
Status: Department or Division:
C - Completed = One-time project for which all work has been completed
0 - Ongoing = Completed program, but one that requires recurring activity
1 - In Process = Staff work is well underway and program wil! be implemented soon
(including any necessary hearings)
P - Pending = Program for which preliminary work needs to be initiated, or program is in
early stages of work
D - Delete = Program that may no longer be necessary or relevant due to another
program, changed circumstances, or policy change
BCE - Building & Code Enforcement
CED - Community & Economic
Development
HNS - Housing & Neighborhood Services
P - Planning
F- Finance
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
Condominium
Conversion 1.1
The city will continue to discourage and/or restrict condominium
conversions when such conversions would reduce the number of low or
moderate income housing units available throughout the city. All
condominium conversions are subject to the city's Inclusionary Housing
Ordinance; the in-lieu fees or actual affordable units required by the
ordinance would be used to mitigate the loss of affordable rental units
from the city's housing stock.
0 P
The city considers condominium conversions
on a case by case basis. In 2011, the city
approved two projects that converted six rental
units to ownership units. One existing duplex
converted to zero lot line separate ownership
units, and a lot with four existing single family
homes was subdivided into four lots.
Mobile Home
Park
Preservation
1.2
The city will continue to implement the city's Residential Mobile Home
Park zoning ordinance (Municipal Code 21.37) that sets conditions on
changes of use or conversions of Mobile Home Parks.
The city will also assist lower income tenants to research the financial
feasibility of purchasing their mobile home parks so as to maintain the
rents at levels affordable to its tenants.
0 P, HNS The city continues to implement the mobile
home zoning ordinance.
The city will continue to provide assistance to preserve the existing
stock of low and moderate income rental housing, including:
Acquisition/
Rehabilitation
of Rental
Housing
1.3
• Provide loans, grants, and/or rebates to owners of rental
properties to make needed repairs and rehabilitation.
• Acquire and rehabilitate rental housing that is substandard,
deteriorating or in danger of being demolished. Set-aside at
least 20 percent of the rehabilitated units for very low income
households.
• Provide deferral or subsidy of planning and building fees, and
priority processing.
Priority will be given to housing identified by the Building Department as
being substandard or deteriorating, and which houses lower income
and in some cases moderate income households.
0 HNS,
BCE
Requests for acquisition/rehabilitation of rental
properties are considered on a case by case
basis.
Rehabilitation
of Owner-
Occupied
Housing
1.4
As the housing stock ages, the need for rehabilitation assistance may
increase. The city will provide assistance to homeowners to rehabilitate
deteriorating housing. Energy conservation improvements are eligible
activities under the city's rehabilitation assistance. Assistance will
include financial incentives in the form of low interest and deferred
payment loans, and rebates. Households targeted for assistance
include lower-income and special needs (disabled, large, and senior)
households.
0 HNS
The city has implemented a home repair
program for owner occupied properties that
provides loans which are forgiven after five
years. In 2011, the city aided two households
with home repair loans.
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Descriptton Status
Dept/
Div Comments
Preservation
of At-Risk
Housing
1.5
One project - Seascape Village - within the city may be considered as
at risk. This project has deed restrictions on 42 units that are set to
expire January 1, 2009. The city wili monitor the status of projects such
as Seascape Village that may be at-risk, ensure tenants receive proper
notification of any changes and are aware of available special Section 8
vouchers, and contact nonprofit housing developers to solicit interest in
acquiring and managing at risk projects.
O HNS
Notices to tenants at Seascape Village were
monitored and city staff worked with owners of
Seascape Village in an attempt to extend the
affordability restrictions. Property was sold and
new owners declined to work with the city
further.
Adequate
Sites 2.1
The city will continue to monitor the absorption of residential acreage in
all densities and, if needed, recommend the creation of additional
residential acreage at densities sufficient to meet the city's housing
need for current and future residents. Any such actions shall be
undertaken only where consistent with the Growth Management Plan.
In order to ensure that adequate residential acreage at appropriate
densities is available to meet the city's Regional Housing Needs
Assessment (RHNA) the city will implement the following objectives:
a. The city shall process a general plan amendment(s) to redesignate
a minimum net acreage of each site in Table 6-1 to RH and
require that the redesignated sites be developed at a minimum
density of 20 units per acre. As part of this program, the city shall
also process all necessary amendments to the Zoning Ordinance
and other planning documents, such as master or specific plans.
Table 6-1
General Plan Amendment (RH): Ponto and Quarry Creek
Property APN
Approximate
Minimum Acres
to be
Redesignated
toRH
Density
Yield
Ponto 216-140-17 6.4 128
Quarry
Creek
Portions of
167-040-21 15.0 300
Commercial
Mixed Use
Ponto
Portion of 216-
140-18 2.8 28
Please see the attached Addendum to Part 2
Program Implementation Status.
P, HNS
An application for a master plan was
submitted in 2010 for the Quarry Creek
site, which will implement Program 2.1.
The application proposes 290 units for
the RH designation and 366 for the RMH
designation, for a total of 656 units. This
exceeds the number of units anticipated
for Quarry Creek by Program 2.1.
O
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Adequate
Sites
(Continued)
Program
#
2.1
Description
b. The city shall process a general plan amendment(s) to
redesignate a minimum net acreage of each site in Table 6-2 to
RMH and require that the redesignated site be developed at a
minimum density of 12 units per acre. As part of this program, the
city shall also process all necessary amendments to the Zoning
Ordinance and other planning documents, such as master or
specific plans.
Table 6-2
General Plan Amendment (RMH): Quarry Creek
Approximate
Minimum Acres
to be
Property APN
Re-designated
to RMH
Density
Yield
Quarry
Creek
Portions of
167-040-21 17 200
The city shall process general plan amendments to establish
minimum densities of 12 units per aerie and 20 units per acre for
the RMH and RH land use designations, respectively, except for
those RH designated properties in the Beach Area Overlay Zone.
The city shall process amendments to the Village Redevelopment
Master Plan and Design Manual and/or other planning documents
as necessary to establish, for residential projects and mixed use
projects with residential components within the Village
Redevelopment Area, minimum densities equal to 80% of the
maximum of the density range. For land use districts 1 - 4 (density
range of 15 - 35 units per acre), as specified in the Carlsbad
Village Redevelopment Master Plan and Design Manual, 80%
shall be 28 units per acre. For land use districts 5 - 9 (density
range of 15 - 23 units per acre), 80% shall be 18 units per
acre. Furthermore, the city shall approve modifications to
development standards of the Carlsbad Village Redevelopment
Master Plan and Design Manual if a project satisfactorily
demonstrates as determined by the city that such modifications
are necessary to achieve the minimum densities.
Status
Dept/
Div Comments
P, HNS
b. See item "a" above.
c. The minimum densities zoning ordinance
amendment was recommended for
approval by the Planning Commission in
December 2011 and adopted by the City
Council in January 2012, and is currently
pending approval by the Coastal
Commission.
d. Amendments to the master plan are
currently in process.
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
Adequate
Sites
(Continued)
2.1
e. The city shall process amendments to the general plan and zoning
ordinance and process other planning documents as necessary to
establish and permit the minimum densities, areas, and land uses
as described in Section 3 and specified in Tables 3-4, 3-6 and 3-9
for the Barrio Area.
f. The city shall amend its zoning ordinance, general plan, and other
land use documents as necessary to permit residential in a mixed
use format on shopping center sites and commercial areas with a
General Plan designations of "CL" and "R" and zoning
designations of "C-L," "C-I" and "C-2," and/or other general plan
and zoning designations as appropriate. Mixed use residential on
shopping center and commercial sites shall be at a minimum
density of 20 units per acre.
g. The city will encourage the consolidation of small parcels in order
to facilitate larger-scale developments. Specifically, the city will
make available an inventory of vacant and underutilized properties
to interested developers, market infill and redevelopment
opportunities throughout the city, particularly in the Village
Redevelopment Area and proposed Barrio Area, and meet with
developers to identify and discuss potential project sites.
For the Barrio Area, incentives shall be developed to encourage
the consolidation of parcels and thus the feasibility of affordable
housing. These incentives shall include increased density and
other standards modifications.
To facilitate development in the Village Redevelopment Area,
modification of standards (including increased density) are
permitted for affordable housing, "green" buildings, and projects
which meet the goals and objectives of the Village (which include
residential and mixed use developments). In addition, the city
offers offsets to assist in the development of affordable housing
citywide. Offsets include concessions or assistance including, but
not limited to, direct financial assistance, density increases,
standards modifications, or any other financial, land use, or
regulatory concession which would result in an identifiable cost
reduction. The city will also encourage lot consolidation by
assisting in site identification.
P, HNS
This task will be completed as part of the
comprehensive general plan and zoning
ordinance update, which is cun-ently in
process and expected to be completed in
2013.
The mixed use zoning ordinance
amendment was recommended for
approval by the Planning Commission in
December 2011 and adopted by the City
Council in January 2012, and is currently
pending approval by the Coastal
Commission.
HNS maintains a monthly "Real Estate
Hot Sheet" that lists properties that are
available for lease and for sale within the
Village area. In 2011, two projects in the
Village designed to meet LEED Silver
certification were approved (one mixed
use with nine units, one non-residential)
that received modifications to standards.
For the Barrio Area, the city maintains an
inventory of vacant and underutilized
properties, which is available to
developers. The development of
incentives for lot consolidation will be
considered as part of the comprehensive
General Plan and Zoning Ordinance
update currently in process.
SO
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Dhf Comments
Flexibility in
Development
Standards
2.2
The Planning Department, in its review of development applications,
may recommend waiving or modifying certain development standards,
or propose changes to the Municipal Code to encourage the
development of low and moderate income housing.
O
The city considers waivers and modifications to
development standards to assist in the
development of affordable housing on a case by
case basis. In 2011, the Tavarua Senior
Apartments were approved by the Planning
Commission and building permits were issued.
The project was approved with (1) reduced
parking, (2) reduced building setbacks, and (3)
handicapped parking in the setbacks. In
addition, the project received a density increase
and has a project density of approximately 55
du/ac, which exceeds the project's allowed
density range (the project site is designated in
the General Plan as Residential Medium
Density, which allows a range of 4-8 du/ac).
Tavarua Senior Apartments project exceeds the
15% inclusionary housing requirement by
income restricting all 49 residential rental
units. Furthermore, the project exceeds the
inclusionary housing low-income affordability
requirement in that 10 of the apartments are
restricted to the extremely low income category,
25 are restricted to the very low income
category, and 14 are restricted to the low
income category. The project also exceeds the
general plan density ranges at a project density
of approximately 55 du/ac.
Mixed Use 2.3
The city will encourage mixed-use developments that include a
residential component. Major commercial centers should incorporate,
where appropriate, mixed commercial/residential uses. Major
industrial/office centers, where not precluded by environmental and
safety considerations, should incorporate mixed
industrial/office/residential uses.
• As described in Program 2.1, the city shall amend the zoning
ordinance and other necessary land use documents to permit
residential mixed use at 20 units per acre on shopping center sites
and commercial areas.
The mixed use zoning ordinance amendment
was recommended for approval by the Planning
Commission in December 2011 and adopted by
the City Council in January 2012, and is
currently pending approval by the Coastal
Commission.
GO
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
Energy
Conservation 2.4
The city of Carlsbad has established requirements, programs, and
actions to improve household energy efficiency, promote sustainability,
and lower utility costs.
• Enforce California building and subdivision requirements by
requiring compliance with state energy efficiency standards
(including adoption of the California Energy Code, 2007 Edition)
and state Subdivision Map Act energy conservation provisions
(Government Code section 66473.1). This latter code section
requires subdivision design to provide future homes with passive
or natural heating opportunities to the extent feasible through, for
example, lot orientation.
• Encourage solar water heating by requiring new residential
construction (ownership dwelling units only) to pre-plumb to
accommodate solar hot water systems. This requirement has
been in effect since 1981.
• Promote and participate in regional water conservation programs
that allow Carlsbad Municipal Water District (CMWD) residents to
receive rebates for water efficient clothes washing machines and
toilets, free on-site water use surveys, and vouchers for weather-
based irrigation controllers. The city publicizes these programs on
its website, www.carlsbadca.gov/water/ wdtips.html. CMWD
serves approximately 75 percent of the city.
O P, BCE
The comprehensive update to the landscape
manual to implement the Water Efficient
Landscape Ordinance was drafted in 2011 and
is scheduled for a City Council hearing in March
2012.
The 2010 Building Code, which includes the
Califomia Green Building Standards, was
adopted by the City Council in 2011.
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
Energy
Conservation
(Continued)
2.4
CMWD is also a signatory to the California Urban Water Conservation
Council Memorandum of Understanding ("MOU"). Signatories to the
MOU implement 14 Best Management Practices that have received a
consensus among water agencies and conservation advocates as the
best and most realistic methods to produce significant water savings
from conservation.
In 1991, Carlsbad adopted a five-phase Recycled Water Master Plan
designed to save potable water. The result is that CMWD has the
most aggressive water recycling program in the region when measured
in terms of percent of supply derived from recycled water. In its 2005
Urban Water Management Plan, CMWD estimates that in 2020 seven
percent of the water needs of the area it serves will be met by
conservation, 21 percent by recycled water usage, and 72 percent by
desalinated water.
• In the Village Redevelopment Area, encourage energy
conservation and higher density development by the modification
of development standards as necessary to:
o Enable developments to qualify for silver level or higher LEED
(Leadership in Energy & Environmental Design) Certification,
or a comparable green building rating, and to maintain the
financial feasibility of the development with such certification.
o Achieve densities at or above the minimum required if the
applicant can provide acceptable evidence that application of
the development standards precludes development at such
densities.
Modifications may include but are not limited to changes to density,
parking standards, building setbacks and height, and open space.
• Facilitate resource conservation for all households by making
available through a competitive process Community Development
Block Grants to non-profit organizations that could use such funds
to replace windows, plumbing fixtures, and other physical
improvements in lower-income neighborhoods, shelters, and
transitional housing.
O P. BCE
In 2011, two projects in the Village designed to
meet LEED Silver certification were approved
(one mixed use with nine units, one non-
residential), that received modifications to
standards.
8
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
Per General Plan policy, reduce fossil fuel consumption
pollution and improve residents' health by requiring:
and
Energy
Conservation
(Continued)
2.4
0 New development to provide pedestrian and bike linkages,
when feasible, which connect with nearby community centers,
parks, school, and other points of interest and major
transportation corridors.
3 Multi-family uses to locate near commercial centers,
employment centers, and major transportation corridors.
Designate "smart growth" areas in the city to help implement the
San Diego Association of Governments Regional Comprehensive
Plan vision for compact, sustainable growth.
Per the city's Growth Management Program:
o Facilitate development of higher density, affordable, and
compact development by allowing withdrawals from the city's
Excess Dwelling Unit Bank (see Section 4 for further details)
only for certain qualifying projects; these projects include
transit-oriented/smart growth developments, senior and
affordable housing, and density bonus requests.
o Encourage infill development in urbanized areas before
allowing extensions of public facilities and improvements to
areas which have yet to be urbanized.
O P, BCE
There are four areas in Carlsbad designated as
a "smart growth opportunity site" on SANDAG's
Smart Growth Concept Map: the Village and
Barrio areas. Plaza Camino Real, Quany Creek
and Ponto. Each of these areas was identified
in the 2005-2010 Housing Element Program 2.1
Adequate Sites program as contributing units
toward the RHNA. Land use planning for the
Banio is underway as part of the
comprehensive general plan and zoning
ordinance update, which is expected to be
completed in 2013. A master plan for Quarry
Creek, another designated potential smart
growth opportunity site, was submitted in late
2010 and is currently in review.
The city continues to make available excess
dwelling units for qualifying projects (also see
program 3.2 below).
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Inclusionary
Housing
Ordinance
Program
#
3.1
Description
The city will continue to implement its Inclusionary Housing Ordinance
that requires 15 percent of all residential units within any Master
Plan/Specific Plan community or other qualified subdivision (currently
seven units or more) be restricted and affordable to lower income
households. This program requires an agreement between all
residential developers subject to this inclusionary requirement and the
city which stipulates:
• the number of required lower income inclusionary units;
• the designated sites for the location of the units;
• a phasing schedule for production of the units; and
• the tenn of affordability for the units.
For all subdivisions of fewer than seven units, payment of a fee in lieu
of inclusionary units is permitted. The fee is based on a detailed study
that calculated the difference in cost to produce a market rate rental
unit versus a lower-income affordable unit. As of September 1, 2006,
the in-lieu fee per market- rate dwelling unit was $4,515. The fee
amount may be modified by the City Council from time-to-time and is
collected at the time of building permit issuance for the market rate
units. The city will continue to utilize inclusionary in-lieu fees collected
to assist in the development of affordable unjts.
The city will also continue to consider other in-lieu contributions
allowed by the Inclusionary Housing Ordinance, such as an
irrevocable offer to dedicate developable land.
Status
0
Dept/
Div
P, HNS
Comments
To comply with recent case law (Palmer/Sixth
Street Properties, L.P. v. City of Los Angeles),
the city amended its inclusionary housing
requirements. The amendment, which results
in only minor changes, is primarily needed to
clarify that inclusionary requirements apply to
rental projects only if the project developer
agrees by contract to limit rent as
consideration for a "direct financial
contribution" or any other forms of assistance
specified in density bonus law. Subject to the
limitations imposed by Palmer, the proposed
amendment does not interfere with the
ongoing implementation of inclusionary
housing requirements.
The city continues to implement its
Inclusionary Housing Ordinance. In 2011,
building permits for nine low income units
were issued as part of the La Costa
Condominiums project (CT 02-28), and the
City Council approved the Dos Colinas
project, which includes 20 future low income
units. Also, two projects receiving building
permits in 2011 purchased Inclusionary
Housing credits at existing affordable
apartments. CT 04-01 purchased 3 credits at
Villa Loma, and CT 05-10 purchased 5 credits
at Carlsbad Family Housing.
In 2011, the in-lieu fee per market rate
dwelling unit remained at $4,515.
10
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
Excess
Dwelling Unit
Bank
3.2
The city will continue to maintain, monitor and manage the Excess
Dwelling Unit Bank, composed of "excess units" anticipated under the
city's Growth Management Plan, but not utilized by developers in
approved projects. The city will continue to make excess units
available for inclusion in other projects using such tools as density
transfers, density bonuses and changes to the General Plan land use
designations per Council Policy Statement 43.
Based on analysis conducted in Section 4, Constraints and Mitigating
Opportunities, the city has adequate excess dwelling units to
accommodate the remaining RHNA of 2,395 units for lower and 1,171
units for moderate income households, which would require withdrawal
of 2,830 units from the Excess Dwelling Unit Bank.
O
Through its continued implementation of the
Growth Management Plan, the city tracks
development and the Excess Dwelling Unit
Bank in its monthly Development Monitoring
Report. According to the December 2011
report, the excess unit balance is 2,968 dwelling
units. These units are available for qualifying
projects, which include affordable housing and
density bonuses.
Density
Bonus 3.3
In 2004, the State adopted new density bonus provisions (SB 1818)
that went into effect on January 1, 2005. Consistent with the new
State law (Government Code sections 65913.4 and 65915), the city
will continue to offer residential density bonuses as a means of
encouraging affordable housing development. In exchange for setting
aside a portion of the development as units affordable to lower and
moderate income households, the city will grant a bonus over the
otherwise allowed density, and up to three financial incentives or
regulatory concessions. These units must remain affordable for a
period of 30 years and each project must enter into an agreement with
the city to be monitored by the Housing and Redevelopment
Department for compliance.
The density bonus increases with the proportion of affordable units set
aside and the depth of affordability (e.g. very low income versus low
income, or moderate income). The maximum density bonus a
developer can receive is 35 percent when a project provides 11
percent of the units for very low income households, 20 percent for low
income households, or 40 percent for moderate income households.
Financial incentives and regulatory concessions may include but are
not limited to: fee waivers, reduction or waiver of development
standards, in-kind infrastructure improvements, an additional density
bonus above the requirement, mixed use development, or other
financial contributions.
O P, HNS
11
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
City-Initiated
Development 3.4
The city, through the Housing and Redevelopment Department, will
continue to work with private developers (both for-profit and non-profit)
to create housing opportunities for low, very low and extremely low
income households.
0 P, HNS
The city continues to provide information and
work with developers to assist them in creating
additional housing opportunities for lower
income households.
The city uses Redevelopment Housing Set-Aside Funds and Housing
Trust Funds to offer a number of incentives to facilitate affordable
housing development. Incentives may include:
Affordable
Housing
Incentives
3.5
• Payment of public facility fees;
• In-kind infrastructure improvements, including but not limited to
street improvements, sewer improvements, other infrastructure
improvements as needed;
• Priority processing, including accelerated plan-check process, for
projects that do not require extensive engineering or
environmental review; and
• Discretionary consideration of density increases above the
maximum pemiitted by the General Plan through review and
approval of a Site Development Plan (SDP).
0 P, HNS,
F
The city continues to offer incentives to facilitate
affordable housing.
Land
Banking 3.6
The city will continue to implement a land banking program to acquire
land suitable for development of housing affordable to lower and
moderate income households. The Land Bank may accept
contributions of land in-lieu of housing production required under an
inclusionary requirement, surplus land from the city or other public
entities, and land otherwise acquired by the city for its housing
programs. This land would be used to reduce the land costs of
producing lower and moderate income housing by the city or other
parties.
The city has already identified a list of nonprofit developers active in the
region. When a city-owned or acquired property is available, the city
will solicit the participation of these nonprofits to develop affordable
housing. Affordable Housing Funds will be made available to facilitate
development and the city will assist in the entitlement process.
0 CED,
HNS
IE
12
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
Housing Trust
Fund 3.7
The city will continue to maintain the various monies reserved for
affordable housing, and constituting the Housing Trust Fund, for the
fiduciary administration of monies dedicated to the development,
preservation and rehabilitation of housing in Carisbad. The Trust Fund
will be the repository of all collected in-lieu fees, impact fees, housing
credits and related revenues targeted for proposed housing as well as
other local, state and federal funds.
0 HNS, F
The city continues to maintain the Housing Trust
Fund, which had an available balance of
approximately $14.7 million as of December 31,
2011.
Section 8
Housing
Choice
Vouchers
3.8
The Carisbad Housing Authority will continue to operate the city's
Section 8 Housing Choice Voucher program to provide rental
assistance to very low income households.
0 HNS The Housing Authority continues to operate
Section 8 Housing Choice Voucher Program.
Mortgage
Credit
Certificates
3.9
The city participates in the San Diego Regional Mortgage Credit
Certificate (MCC) Program. By obtaining a MCC during escrow, a
qualified homebuyer can qualify for an increased loan amount. The
MCC entitles the homebuyer to take a federal income tax credit of 20
percent of the annual interest paid on the mortgage. This credit
reduces the federal income taxes of the buyer, resulting in an increase
in the buyer's net earnings.
0 HNS The city continues to participate in MCC
Program with one certificate issued in 2011.
Senior
Housing 3.10
The city will continue to encourage a wide variety of senior housing
opportunities, especially for lower-income seniors with special needs,
through the provision of financial assistance and regulatory incentives
as specified in the city's Senior Housing Overiay zone. Projects
assisted with these incentives will be subjected to the monitoring and
reporting requirements to assure compliance with approved project
conditions.
In addition, the city has sought and been granted Article 34 authority by
its voters to produce 200 senior-only affordable housing units. The city
would need to access its Article 34 authority only when it functions as
the owner of the project, where the city owns more than 51 percent of
the development.
0 P, HNS
The city continues to encourage senior housing
opportunities through financial assistance and
regulatory incentives.
The city is providing a loan of $3.75 million to
assist in the development of the 50 unit Tavarua
Senior Apartments. Building pennits were
issued on 12/16/11. The apartments will be
affordable to seniors at 30%, 40%, 50% and
60% ofthe Area Median Income.
13
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
Housing for
Persons with
Disabilities
3.11
The city will adopt an ordinance to establish a formal policy on offering
reasonable accommodations to persons with disabilities with regard to
the construction, rehabilitation, and improvement of housing. The
ordinance will specify the types of requests that may be considered
reasonable accommodation, the procedure and reviewing/approval
bodies for the requests, and waivers that the city may offer to facilitate
the development and rehabilitation of housing for persons with
disabilities.
1 P, BCE
The zoning ordinance amendment to remove
the definition of "family" was adopted by the City
Council in 2010 and approved by the Coastal
Commission in 2011.
The reasonable accommodations zoning
ordinance amendment was recommended for
approval by the Planning Commission in
January 2011 and adopted by the City Council
in April 2011, and is currently pending approval
by the Coastal Commission.
Housing for
Large
Families
3.12
In those developments that are required to include 10 or more units
affordable to lower-income households, at least 10 percent of the lower
income units should have three or more bedrooms. This requirement
does not pertain to lower-income senior housing projects.
0 P The city continues to implement this program
as part of its inclusionary housing ordinance.
Farm Labor
Housing 3.13
Pursuant to the State Employee Housing Act, the city permits by right
employee housing for six or fewer in all residential zones where a
single-family residence is permitted. Farm labor housing for 12 persons
in a group quarters or 12 units intended for families is permitted by right
on properties where agricultural uses are permitted. In 2004, the city
amended the Zoning Code to conditionally permit farm labor housing for
more than 12 persons in a group quarters or 12 units/spaces for
households in the E-A, 0, C-1, C-2, C-T, C-M, M, P-M, P-U, O-S, C-F
and C-L zones.
1 CED, P
A zoning ordinance amendment to comply with
Health and Safety Code Sec. 17021.6 has been
drafted and is currently under internal review.
Staff anticipates that Planning Commission and
City Council hearings will occur in 2012.
14
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Housing for
the Homeless
Program
#
3.14
Description
Carisbad will continue to facilitate the acquisition, for lease or sale, of
suitable sites for emergency shelters and transitional housing for the
homeless population. This facilitation will include:
• Participating in a regional or sub-regional summit(s) including
decision-makers from North County jurisdictions and SANDAG for
the purposes of coordinating efforts and resources to address
homelessness;
• Assisting local non-profits and charitable organizations in securing
state and federal funding for the acquisition, construction and
management of shelters;
• Continuing to provide funding for local and sub-regional homeless
service providers that operate temporary and emergency shelters;
and
• Identifying a specific zoning district in the city where emergency
shelters will be permitted by right, with the following criteria:
o The appropriate zoning district will offer easy access to public
transportation and supportive services,
o The zoning district should also contain adequate vacant and
underutilized sites or building that can be converted to
accommodate emergency shelters.
Status
Dept/
Div
CED, P
Comments
A zoning ordinance amendment to permit
emergency shelters by right in the Planned
Industrial Zone has been drafted and is
currently under internal review. Staff anticipates
that Planning Commission and City Council
hearings will occur in 2012.
In 2010, the city received an application to
expand the existing La Posada de Guadalupe
homeless shelter from a temporary 50 bed
facility to a permanent 100 bed facility. The
application was recommended for approval by
the Planning Commission and approved by the
City Council in 2011. Building pennits are
anticipated for 2012. In addition, the city has
committed $2,000,000 in financial support for
the La Posada de Guadalupe expansion from
money collected through its Agricultural
Mitigation Fee program ($54,000 given to-date
for project design costs). Also, in Dec. 2011,
the city increased its total CDBG contribution to
$661,000 for this project.
15
Part 2 - Program implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
Housing for
the Homeless
(Continued)
3.14
o Besides being subject to the same development standards
applied to other development in the specified zoning district,
the city will establish objective development standards to
regulate the following: 1) the maximum number of
beds/persons permitted to be served nightly; 2) off-street
parking based on demonstrated need, but not to exceed
parking requirements for other residential or commercial uses
in the same zone; 3) The size/location of exterior and interior
onsite waiting and client intake areas; 4) The provision of
onsite management; 5) The proximity of other emergency
shelters, provided that emergency shelters are not required to
be more than 300 feet apart; 6) The length of stay; 7) Lighting;
and 8) Security during hours that the emergency shelter is in
operation.
1 CED, P
Transitional
and
Supportive
Housing
3.15
Currently, the city's Zoning Ordinance does not address the provision of
transitional housing and supportive housing. The city will amend the
Zoning Ordinance to cleariy define transitional housing and supportive
housing. When such housing is developed as group quarters, they
should be permitted as residential care facilities. When operated as
regular multi-family rental housing, transitional and supportive housing
should be permitted by right as a multi-family residential use in multi-
family zones.
P P
An ordinance amendment to address the
provision of transitional and supportive housing
was initiated in 2011 and is currently in process.
Staff anticipates that Planning Commission and
City Council hearings will occur in 2012.
Supportive
Services for
Homeless and
Special
Needs
Groups
3.16
The city will continue to provide CDBG funds to community, social
welfare, non-profit and other charitable groups that provide services for
those with special needs in the North County area.
Furthermore, the city will work with agencies and organizations that
receive CDBG funds to offer a City Referral Service for homeless
shelter and other supportive services.
0 HNS
In 2011, the city provided CDBG assistance to
12 social service providers in North County and
serves as a referral agency for homeless
shelters and support services.
16
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
Alternative
Housing
The city will continue to implement its Second Dwelling Unit Ordinance
(Section 21.10.015 ofthe Carlsbad Municipal Code) and will continue to
consider alternative types of housing, such as hotels and managed
living units.
3.17 P, HNS
The city continues to implement the Second
Dwelling Unit Ordinance and consider
alternative types of housing. In 2011, building
permits were issued for seven second dwelling
units.
An ordinance amendment to conditionally permit
and establish standards for managed living units
in certain districts of the Village area was
initiated in 2011 and is cun-ently in process.
Staff anticipates that Planning Commission and
City Council hearings will occur in 2012.
Military and
Student
Referrals
3.18
The city will assure that information on the availability of assisted or
below-market housing is provided to all lower-income and special needs
groups. The Housing and Redevelopment Agency will provide
information to local military and student housing offices of the
availability of low-income housing in Carisbad.
O HNS
The city provides information on assisted and
below market housing to individuals and groups
needing that information.
Coastal
Housing
Monitoring
3.19
As a function of the building process, the city will monitor and record
Coastal Zone housing data including, but not limited to, the following:
1) The number of new housing units approved for construction within
the coastal zone after January 1,1982.
2) The number of housing units for persons and families of low or
moderate income, as defined in Section 50093 of the Health and
Safety Code, required to be provided in new housing developments
within the coastal zone.
3) The number of existing residential dwelling units occupied by
persons and families of low or moderate income that are authorized
to be demolished or converted in the coastal zone pursuant to
Section 65590 of the Govemment Code.
4) The number of residential dwelling units occupied by persons and
families of low or moderate income as defined in Section 50093 of
the Health and Safety Code that are required for replacement or
authorized to be converted or demolished as identified above. The
location of the replacement units, either onsite, elsewhere within the
city's coastal zone, or within three miles of the coastal zone in the
city, shall be designated in the review.
0 CED
1) In 2011, building permits were issued for 29
dwelling units in the Coastal Zone.
2) In 2011, no building permits were issued for
dwelling units required to be affordable
(through Inclusionary or Density Bonus
requirements) in the Coastal Zone.
However, two projects receiving building
permits in 2011 purchased Inclusionary
Housing credits at existing affordable
apartments. Poinsettia Ridge (CT 04-01)
purchased three credits at Villa Loma, and
Poinsettia Property/The Tides (CT 05-10)
purchased five credits at Carisbad Family
Housing.
3) 0
4) 0
17
Part 2 - Program Implementation Status - January 2011 through December 2011
Table 2.1 CY 2011 Housing Element Program Implementation Status
HE
Program
Program
# Description Status
Dept/
Div Comments
Housing
Element
Annual Report
3.20
To retain the Housing Element as a viable policy document, the Planning
Department will undertake an annual review of the Housing Element and
schedule an amendment if required. As required, staff also monitors the
city's progress in implementing the Housing Element and prepares
corresponding reports to the City Council, SANDAG, and California
Department of Housing and Community Development annually.
0 P
With assistance from outside fair housing agencies, the city will continue
to offer fair housing services to its residents and property owners.
Services include:
Fair Housing
Services 4.1
• Distributing educational materials to property owners, apartment
managers, and tenants;
• Making public announcements via different media (e.g. newspaper
ads and public service announcements at local radio and television
channels);
• Conducting public presentations with different community groups;
• Monitoring and responding to complaints of discrimination (i.e. intake,
investigation of complaints, and resolution); and
• Referring services to appropriate agencies.
0 HNS
The city contracts with a fair housing agency to
provide their services to Carisbad residents and
property owners. Services include those listed
in the column to the left.
in 18
ANNUAL HOUSING ELEMENT PROGRESS REPORT
Addendum to Part 2 - Program Implementation Status
January 2011 through December 2011
Program 2.1 Comments
Housing Element Section 3, Resources Available, identifies how Carlsbad will meet its Regional Housing
Needs Assessment (RHNA) during the current housing cycle. "RHNA" is a forecast of the number of
housing units needed to accommodate projected growth by all income groups. As Section 3 explains,
Carlsbad meets its RHNA through a combination of development projects and city-initiated land use
changes. Whether proposed or approved, these projects and land use changes provide units and land
use designations at densities considered appropriate for each income group; the state considers higher
densities, for example, as critical to the success of affordable housing.
To meet RHNA forecasts for lower and moderate income housing. Section 3 and Program 2.1 focus
particularly on the housing needs of these two income groups. The state has identified minimum
densities of 12 and 20 dwelling units per acre as suitable for moderate and lower income families,
respectively. Program 2.1 identifies the land use changes the city proposes to achieve these densities
and implement its Housing Element, which it adopted in 2009. The present status of each change or
amendment is discussed below.
In Section 3, Housing Element Table 3-12 summarizes the projects and land use changes contemplated
to achieve the city's RHNA. "Achievement" is expressed in number of units for each income group. One
project discussed in Section 3 that contributes to the "Residential Sites" units reported in the table, the
76-unit Bridges at Aviara Affordable Housing Component, was withdrawn in 2010.
Factoring in the affordable units that would have been achieved by the Bridges project, Carlsbad had 50
units more than it needed to meet RHNA. The surplus was achieved by adding the "difference" numbers
(+644 and -594) at the bottom of the lov^er and moderate income columns in Table 3-12. The project's
withdrawal, however, left a 26 unit deficit; this shortage is realized simply by subtracting the Bridges' 76
units from the 50 unit surplus. When reviewing Table 3-12, please note that the surplus of lower
income units enabled by the Bridges project counted toward satisfying the deficit of moderate income
units. However, with the withdrawal of the Bridges project, the surplus is no longer adequate to cover
the shortage of moderate income units.
It is important for Carlsbad to meet its RHNA obligations throughout the current housing cycle.
Accordingly, the 26 unit deficit resulting from the Bridges' withdrawal is made up entirely by the Tavarua
Senior Apartments. The Tavarua project began construction in 2012 and will feature 49 apartments rent
restricted to occupancy by extremely low, very low, and low income seniors and a manager's unit (also
considered to be a low income unit due it being part of the managers compensation ). Originally
approved in 2008 as the "Harding Street Senior Project" (see Housing Element page 3-23), only 15 ofthe
original project's 50 units were counted as lower or moderate income housing in Table 3-12.
City-approved changes to the original Harding Street Senior Project in 2011 resulted in all ofthe Tavarua
units being affordable. After subtracting the 15 lower and moderate income units associated with the
original project, Tavarua's 50 affordable units result in a net gain of 34 lower income units not reflected
in Table 3-12. Carlsbad may count this gain toward RHNA and the deficit resulting from the Bridges
project withdrawal.
In addition to the Tavarua project and as discussed in the 2010 Annual Housing Progress Report, other
active projects contribute to satisfying RHNA; these include Dos Colinas and Quarry Creek. Dos Colinas,
approved by the city in 2012, is a 305-unit continuing care retirement community in the Sunny Creek
area. The City conditioned its approval of Dos Colinas to provide either 20 or 24 units affordable to
lower income persons within the project or offsite of it, respectively. Quarry Creek, the master planning
and environmental review of which is presently underway, has 656 units proposed. This is 156 more
units than anticipated in Program 2.1. While all of these additional units beyond the 500 called for in
Program 2.1 may not develop at densities appropriate for lower and moderate income housing, that
potential exists.
An updated Housing Element Table 3-12 is provided below and reflects the deletion of the Bridges at
Aviara and the addition of the Tavarua Senior Apartments and Dos Colinas projects.
P7
Table 3-12 {modified to show changes)
Adequacy of Sites in Meeting Remaining RHNA
Sites
Lower
Income
Moderate
Income
Above
Moderate
Income Total
Comments
Residential Sites 1T4?Q 1.394 569 1,675 3.638
"Residential Sites" change
reflects deletion of 76 units
proposed as part of Bridges
at Aviara (withdrawn).
Mixed Use Sites 1,473 1,473
Recently approved
Proposals with
Affordable
Components^
9 i6 08 34 9
"Lower Income" change
reflects deletion of 7 units
approved as part of
Harding Street Senior
Proiect (superseded by
Tavarua Senior
Apartments).
"Moderate Income"
change reflects deletion of
8 units approved as part of
Harding Street Senior
Project (superseded bv
Tavarua Senior
Apartments).
Second Units 80 80
Tavarua Senior
Apartments 50 50
Dos Colinas^ 20 20
Total 3^039
3.026 569 5'7"7 1,675
RHNA
Remaining 2,395 1,171 3,566
Difference
fsurplus or
deficit)
-1-644 631 -602 594 + 1,675 +4_^
1.704
Number of
surplus lower
income units^
29
^These projects, Identified in Table 3-11, are in addition to those found in tables 3-1 and 3-2 and represent
affordable housing approved since December 31, 2006.
^Dos Colinas lower income units reflect on-site unit requirement. If off-site units are proposed, 24 lower income
units are required.
-The 630 unit surplus of lower Income units mav be used to offset the 602 unit shortage of moderate income units.
Source: City of Cartsbad, May 2008 and February 2012.
EXHIBIT 3
ANNUAL HOUSING ELEMENT PROGRESS REPORT
Appendix A - Description of terms and methods
JANUARY 2011 THROUGH DECEMBER 2011
Regional Housing Needs - The determination of housing need for Carlsbad and all
other jurisdictions in California is derived from the Regional Housing Needs Assessment
(RHNA) prepared by the local regional councils of government (SANDAG) before the
beginning of each housing cycle. Based upon these assessments of need, the local
jurisdictions are required to adopt housing objectives in the housing elements of their
general plans.
A regional assessment of housing need is an estimate of the total need for new housing
construction throughout the region due to population growth forecasted to occur during
a specific time period. The overall housing need is then broken out by four income
groups: very low, low, moderate, and above-moderate (or upper-income) - all as
defined by the federal Department of Housing and Urban Development (HUD), and the
state Department of Housing and Community Development (HCD). The regional
housing needs are then allocated to the local jurisdictions on a "regional share" basis,
according to models and formulas designed by the SANDAG.
Table 1 shows Carlsbad's share of the current RHNA and is based upon housing
growth estimated by the State and SANDAG to occur in Carlsbad during the period
January 1, 2003 through April 30, 2013.
Table 1: Carlsbad's Share ofthe RHNA
January 1, 2003 through April 30, 2013*
Income Group Definition**
(%of AMI***)
New Construction
Needs
(in housing units)
Very Low 50% or under 1,922
Low 51 - 80 % 1,460
Moderate 81 -120% 1,583
Above-Moderate Over 120% 3,411
Totals 8.376
• Senate Bill 575 extended the current Housing Element period to no later than 18 months after
adoption of the Regional Transportation Plan (RTP), With the adoption of the RTP in October 2011,
the next Housing Element update will be due April 30, 2013,
** Definitions are from HUD, via the California Department of Housing and Community Development.
***AM1 is the Area Median Income. The 2011 AMI for San Diego-Carlsbad-San Marcos MSA for a
family of four is $74,900.
«P1
Definition of Income Groups - Table 1 defines each of the four income groups as a
percentage of the county area median income (AMI). HUD annually revises the AMI
based on cost of living issues such as the relationship of housing prices to income. For
2011, HUD established the AMI for San Diego County at $74,900. In addition to
establishing the AMI, HUD also establishes income limits for each of the four income
groups which are adjusted for family size so that larger households have higher income
limits (see Table 2 below).
Table 2: CY 2011 Qualifying Limits on Annual Income
By Household Size
Income Group Persons per Household
2 4 6 8
Very Low $ 33,000 $ 41,200 $ 47,800 $ 54,400
Low $ 52,750 $ 65,900 $ 76,450 $ 87,000
Moderate $ 71,950 $ 89,900 $ 104,300 $ 118,700
Above
Moderate >$ 71,950 >$ 89,900 >$ 104,300 >$ 118,700
Source: "2011 Household Income Limits," U.S. Department of Housing and Urban
Development (effective May 31, 2011)
Prices of Affordable Housing - Generally, the federal and state rule is that housing is
affordable to a given family if the family pays no more than 30% of its monthly income
for housing expenses that include the rent or mortgage payment, property taxes,
insurance, utilities, and the like. A determination of whether a housing unit is affordable
can be easily made for assisted public rental housing and other public housing
programs because documentation is maintained on both the individual household's
income and the actual cost of the unit in question (typically rental). Income group
determinations for income restricted (assisted) housing units shown in the tables of Part
1 were made by the Carlsbad Housing and Neighborhood Services Department.
To determine affordable housing expenses for rentals, the practice is to set thresholds
for each income group, using the 30% rule, with adjustments for the number of
bedrooms (a convention developed in 1993 by member agencies of the San Diego
Association of Governments assumes two persons per bedroom). An additional
adjustment is also made for utility allowance, as required by HUD. Table 3 provides the
resulting maximum market rate rental expenses (which include rent and a utility
allowance that increases with household size) for the very low, low, and moderate-
income groups for CY 2011.
3^
Table 3 CY 2011 Qualifying Rent and Utility Expenses
By Number of Bedrooms
Income Group Number of Bedrooms
1 2 3 4
Very Low $ 825 $ 1,030 $ 1,195 $ 1,360
Low $ 1,319 $ 1,648 $ 1,911 $ 2,175
Moderate $ 1,799 $ 2,248 $ 2,608 $ 2,968
Above
Moderate >$ 1,799 > $ 2,248 > $ 2,608 > $ 2,968
Source: "2011 Household Income Limits," U.S. Department of Housing and Urban
Development (effective May 31, 2011)
With regard to for-sale housing, there is no federal or state required formula to
determine the sales price that would be considered affordable. The only federal or state
requirement is that the mortgage amount (including taxes, insurance, utilities, etc.) must
not exceed 30% of the monthly income of the household (to be considered affordable to
a specific income group, see Table 2).
The varying factors (interest rates, closing costs, lending programs, etc.), which impact
the mortgage amount, make it difficult to specify certain sales prices that are considered
affordable to the various income groups. To simplify determining affordability for
reporting purposes, the city uses a rule-of-thumb formula similar to that employed by
many mortgage-lending institutions, which was reviewed and accepted by the SANDAG
and the California Department of Housing and Community Development. The rule-of-
thumb formula is as follows:
Affordable sales price = 3.0 x maximum-allowed-annual income for each class, adjusted
for bedroom count.
Based on this formula Table 4 gives the qualifying purchase price for housing for the
different income groups. The table illustrates that a three-bedroom house costing no
more than $312,900 would be the maximum affordable to a moderate-income family.
3!
Table 4: CY 2011 Qualifying Purchase Price
By Number of Bedrooms
Income Group Number of Bedrooms
1 2 3 4
Very Low $ 99,000 $ 123,600 $ 143,400 $ 163,200
Low $ 158,250 $ 197,700 $ 229,350 $ 261,000
Moderate $ 215,850 $ 269,700 $ 312,900 $ 356,100
Above
$ 269,700 $ 312,900 356,100
Moderate >$ 215,850 >$ 269,700 >$ 312,900 >$ 356,100
* 3X multiplier was developed by an ad hoc committee at SANDAG with subsequent
approval by the SANDAG Board in 1993. (There is no formula in state law). The rule
also assumes 2 persons per bedroom to provide a correspondence back to HUD
affordability rules based upon persons per household (as opposed to bedrooms).
Other terms - Definitions for terms used in this appendix as well as Part 1 of the report:
Assistance Programs/Assisted Units - units receiving financial assistance from
the city or other and/or other subsidy sources and have affordability deed
restrictions.
Deed Restricted Units - units considered affordable due to local program or
policy, such as inclusionary housing ordinance. These units may also be
assisted units.
Non-deed Restricted Units/Market Rate Units - Units that received no financial
assistance from the city and have no affordability restrictions.
Unit Category - SF (Single-family units), 2-4 (two to four unit structures), 5+
(five or more unit structures), SU (second-units), MH (mobile homes^.
Description of tiousing product types:
Single-family detacfied - A single home on a single lot, detached from any other
unit, except for an attached second dwelling unit.
Condominium - A detached or attached home on commonly owned property.
Apartment - A unit that can only be rented and not owned.
Duplex - Two units on a single lot. Units cannot be individually sold.
Second DwelUng Unit - A completely independent dwelling unit on the same lot
as a primary residence. A second dwelling unit may be attached to or detached
from the primary residence.
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