HomeMy WebLinkAbout2022-10-11; City Council; Resolution 2022-244RESOLUTION NO. 2022-244
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING AN INCREASE OF $65,000 IN THE LOAN AMOUNT
FROM THE HOUSING TRUST FUND TO USA PROPERTIES FUND FOR THE
MARJA ACRES SENIOR APARTMENTS AFFORDABLE HOUSING PROJECT (DEV
16-038)
WHEREAS, NUWI Carlsbad, LLC (New Urban West or NUW) sought the city's approval to build a
mixed-use project consisting of 248 town homes, 46 affordable senior apartments (plus an unrestricted
manager's unit) and 10,000 square feet for specialty commercial uses located on property commonly
known as Marja Acres, on the south side of El Camino Real just east of Kelly Road; and
WHEREAS, the City Council approved said development, including the affordable senior
apartments on Nov. 3. 2020; and
WHEREAS, USA Properties Fund, Inc. has partnered with NUW to build the Marja Acres
affordable senior apartments; and
WHEREAS, USA Properties Fund requested financial assistance from the City of Carlsbad for the
construction of 46 apartment homes to be affordable to extremely low, very low, and lower-income
senior households; and
WHEREAS, the request for financial assistance was submitted to the City of Carlsbad's Housing
Commission for review and consideration at their public meeting on Aug. 12, 2021, on which date said
Commission recommended that the City Council approve the requested financial assistance in the
amount of $650,000; and
WHEREAS, the City Council approved $650,000 in Housing Trust Fund assistance on Oct. 12,
2021, in order to create additional public benefit by exceeding the units required by the density bonus,
serving five extremely low-income seniors and improve project competitiveness for tax exempt bond
and tax credit equity financing; and
WHEREAS, the city's Affordable Housing Policy Team evaluated the subsequent financial
assistance request on Aug. 2, 2022, and recommended that it be forwarded to the Housing Commission
for their consideration and recommendation to the City Council; and
WHEREAS, the Housing Commission considered the subsequent financial assistance request,
staff evaluation and recommendation, and the testimony of all persons desiring to be heard on the
matter at their regular meeting on Sept. 8, 2022, on which date the Housing Commission recommended
that the City Council approve an increase in the loan amount of $65,000 from the Housing Trust Fund;
. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That the request for $65,000 in additional financial assistance from USA Properties Fund,
Inc. is consistent with the goals, objectives and programs of the City of Carlsbad's
Housing Element, City Council Policy No. 90 guidelines, and the city's Housing Trust Fund
underwriting practices.
3.That the request for $65,000 in additional financial assistance will assist the affordable
housing developer in constructing a total of 46 apartment units affordable to extremely
low, very low, and low income senior households, plus one unrestricted manager's
apartment. Specifically, the assistance will result in deeper affordability levels by
providing five extremely low-income (30% AMI), 36 very low-income (50% AMI), and five
low-income (60% AMI) senior apartments.
4.That the City Council authorizes the Deputy City Manager, Administrative Services, to
assign and appropriate an additional amount of $65,000 from the Housing Trust Fund
to provide a total loan amount of $715,000 to USA Properties Fund for the Marja Acres
Senior Apartments, subject to the following conditions:
a.The financial assistance shall be in the form of a residual receipts loan for a term of
55 years at three percent simple interest per annum. Said loan shall be secured by a
promissory note and deed of trust.
b.The financial assistance is conditional and contingent upon USA Properties Fund, Inc.
receiving all other necessary funding commitments identified in the financial
assistance application including private loans, tax credit financing, master developer
contribution, and deferred developer fees.
c.The city's commitment of funds will be maintained for a period of twenty-four
months upon City Council's approval. The funding commitment will expire at the end
of this term unless developer has secured all other necessary funding, has executed
a loan agreement with the city, and the project is ready to construct; or unless a time
extension is granted by the City Council.
5.That the City Council authorizes the City Manager, or designee, to prepare and execute
all documents related to the provision of the city loan, subject to review and approval
by the City Attorney.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 11th day of October, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Norby.
None.
Hall.
tv' MATT HALL, Mayor
� �FAVIOLA MEDINA, City Clerk Services Manager
(SEAL)
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