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.