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HomeMy WebLinkAbout1995-01-12; Housing Commission; ; AFFORDABLE HOUSING PROJECT- RANCHO CARRILLO VILLAGES "F" "G" AND "P"STAFF REPORT DATE: JANUARY 12, 1995 TO: HOUSING COMMISSION FROM: HOUSING AND REDEVELOPMENT DEPARTMENT SUBJECT: AFFORDABLE HOUSING PROJECT- RANCHO CARRILLO VILLAGES "F". "G" AND "P"- Request for recommendation of approval of a proposed 120 unit Affordable Housing Project within the Rancho Carrillo Villages "F", "G" and "P". The project is part of the development related to CT 93-07/PUD 93- 06/SDP 94-01. I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 95-001 RECOMMENDING APPROVAL of the development of the proposed 120 unit affordable housing project within the Continental Rancho Carrillo Villages "F", "G" and "P". H. PROJECT BACKGROUND AND DESCRIPTION On January 4, 1995, Continental Homes received a recommendation from the Planning Commission for approval of a Tentative Tract Map, Planned Development Permit, and Site Development Plan for 117 single family lots, 5 open space lots and 1 multi-family lot for Villages "F", "G" and "P" of the Rancho Carrillo Master Plan. Continental Homes is also required to comply with the Inclusionary Housing Requirement which means that the applicant/developer must provide housing affordable to low income households. The applicant's affordable housing proposal indicates that Village "F" of the Carrillo Ranch Master Plan shall be the site for the affordable housing project. The project will contain 120 dwelling units in a four-plex (non-courtyard) design. There will be a mixture of two story townhome units and carriage units over private garages. The townhomes will range in size from approximately 980 to 1,214 square feet. The carriage units will be approximately 672 square feet. Thirteen of the units are identified as three (3) bedrooms, 83 are 2 bedroom units and 24 are 1 bedroom units. As required, these units will be sold at a price affordable to lower income households at 80% of the county median. The affordable housing project, as proposed, will meet the Applicant/Master Plan Developer's obligation under the City of Carlsbad's Inclusionary Housing Ordinance. As an additional note, the Applicant is also considering the possibility of constructing second dwelling units together with single family homes to be built in other Villages within the Rancho Carrillo Master Plan Community. If the Applicant does decide to build second dwelling units, the number of total low income affordable housing units to be located with Village F will be reduced by the number of second dwelling units constructed. For example, if the Applicant decides to build twenty (20) second dwelling units in another Village, the number of low income affordable units in Village F shall total 100 and the number of market rate units will be 20. The site plan for Village F, however, will probably not change. IH. APPLICANT/DEVELOPER TEAM INFORMATION The development team for the proposed affordable housing project is as follows: Applicant: Continental Homes Developer: Continental Homes Architect: Bowlus, Edinger, Starch Architects Engineers'): Rick Engineering IV. AFFORDABLE HOUSING PROJECT DESCRIPTION/LOCATION The project will be located in Village F of the Rancho Carrillo Master Plan Residential Community on a 12.7 acre site south of Palomar Airport Road about 3000 feet east of intersection of Melrose and Palomar Airport Road. As stated previously, the project will include a combination of 1, 2 & 3 bedroom dwelling units. The 2 and 3 bedroom units will have two car attached garages and the 1 bedroom units will have an attached one car garage (with an uncovered assigned additional space located within 100 feet of the unit). Special amenities of the project will include active and passive recreational facilities as required within the Planned Development Ordinance for the City of Carlsbad. This includes private patios or balconies and over 24,000 square feet of recreation space provided within 6 common recreation area. The Affordable Housing Project (Village F) proposed will actually satisfy the inclusionary housing requirements for Villages G, L, M, N, O, P, Q & R of the Rancho Carrillo Master Plan. The tentative maps for the noted Villages allow for a maximum of 791 dwelling units. The inclusionary housing requirement for these dwelling units is 118.6, or 119, total. Continental Homes has decided to meet its obligation for affordable housing by providing 120 units within Village F which will be sold at prices affordable to households with incomes at 80% of the San Diego County Median. The Inclusionary Housing Ordinance requires that 10% of the affordable units provide 3 bedrooms; this means that at least 11.8 of the units must have 3 bedrooms. Continental Homes has proposed to provide a total of 13 three bedroom units. V. TERMS OF AFFORDABILITY The Inclusionary Housing Ordinance requires that all affordable housing units remain affordable to low income households for a minimum of 55 years. After the initial sale of the inclusionary for-sale units to the designated low income group, inclusionary for-sale units shall remain affordable for their useful life (minimum 55 years). If the unit is subsequently sold at a market price to other than a targeted households, the sale shall result in the recapture of the City's interest in the units, for use in assisting other eligible households. The complete terms of affordability will be clearly identified in the affordable housing agreement to be approved by the City prior to approval of the final map for the project. The following chart provides a breakdown of bedroom sizes by income levels and projected sales price: Bedroom Size 1 2 3 Total 80% of median 24 83 13 120 Maximum Sales Price* $71,433 $91,966 $108,326 *The maximum sales price is based on iyy4 Median Income Data from the U.S. Department of Housing and Urban Development and assumptions made regarding property taxes, homeowner association fees, utility allowance, etc. If the median income or the assumptions change, the maximum sales price will change. VI. FINANCIAL INFORMATION ON/INCENTIVES FOR PROJECT At this time, it is assumed that the applicant intends to privately finance the construction of the 120 units of affordable townhome/carriage units and no request has been made for financial assistance from the City to construct the units. Due to the conceptual status of this affordable housing project, the Applicant did not submit a development or operating proforma. Therefore, information is not provided within this report regarding staffs analysis of the financial issues related to the project. Based on previous experience with affordable housing projects, it is staffs opinion that some type of subsidy will most likely be needed to finance the project. This will require the Applicant to research possible subsidy sources and possibly work with a non-profit organization to successfully complete the project. Since the applicant will be required to enter into an affordable housing agreement with the City of Carlsbad prior to Final Map approval, staff will have an opportunity at a later, more appropriate time to evaluate the financing for the project. The agreement will outline all final assumptions on cost for the project, financing mechanisms and set the sales price for the units. Although no financial assistance has been requested, the applicant has requested the following three incentives to assist in the development of the subject affordable housing project: 1. Delayed architectural review - After the project site plan has been approved, the Applicant will prepare the architectural drawings for the project. In an effort to save initial planning costs, the Applicant requested consideration of the site plan first before any additional funds are expended on design. If the site plan and conceptual project is approved, the architectural drawings will be prepared and submitted to the Planning and Housing Commission for review. 2. Parking Standard Modification - to allow the one bedroom units to have one covered and one uncovered parking space rather than two covered parking spaces. 3. Private Street Width Modification - to allow three small sections of 24' wide driveways (rather than the required 30' width). The above incentives/modifications were determined to be acceptable to staff as well as the Planning Commission. Vn. CONSISTENCY WITH HOUSING ELEMENT AND CHAS The proposed affordable housing project is consistent with the policies and programs of the Housing Element and the Zone 20 Specific Plan. The applicant has proposed to provide 120 units of affordable housing which meets the 15 % Inclusionary Housing Requirement for the market rate units and the number of 3 bedroom units (13 total) in the project meets the City's 10% requirement. The proposed affordable "for sale" housing project meets a "Priority 2" need, as outlined within the City of Carlsbad's 1993-98 Comprehensive Housing Affordability Strategy (CHAS). The level 2 priority indicates that there is a significant need for the proposed type of housing within the City of Carlsbad. Vm. SUMMARY The Rancho Carrillo Village F Affordable Housing Project, as proposed, is consistent with the Housing Element and meets the needs of lower income small and large families. Therefore, staff is recommending that the Housing Commission adopt a recommendation to the City Council for . approval of the subject affordable housing project. DC. EXHIBITS 1 - Housing Commission Resolution No. 95-001 adopting a recommendation to the City Council to approve the Rancho Carrillo Village F Affordable Housing Project. 2 - Housing Commission Review Application submitted by Continental Homes. 3 - Planning Commission Staff Report dated January 4, 1995. 4 - Site Development Plan for proposed Affordable Housing Project.