HomeMy WebLinkAbout2024-05-21; City Council; Resolution 2024-113RESOLUTION NO. 2024-113
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, DECLARING THE PROPERTY LOCATED AT 945 CHESTNUT
AVENUE AS EXEMPT SURPLUS LAND IN ACCORDANCE WITH CALIFORNIA
GOVERNMENT CODE SECTIONS 54221(F)(l)(A) AND 37364
WHEREAS, in 2014, the City of Carlsbad provided a $2.6 million loan to Solutions for Change,
LLC, which is a subsidiary of Solutions for Change, Inc. (collectively Solutions for Change) to acquire the
0.77 acre, 16-unit property at 945 Chestnut Avenue in Carlsbad (Property) to provide permanent
affordable housing for homeless families; and
WHEREAS, Solutions for Change has been unable to secure funding to complete the project, is
looking to end its ownership of the Property and is proposing to transfer the Property to the city for
continued use as an affordable housing project in exchange for loan forgiveness; and
WHEREAS, the city intends to acquire the Property and continue to provide housing affordable
to households of low or moderate income; and
WHEREAS, city staff intend to issue a Request for Proposals to identify a new owner to acquire
the property and either rehabilitate the existing affordable units or demolish and rebuild a new
affordable housing project with potentially more units.
WHEREAS, the Request for Proposals identifies minimum affordability requirements for the
Property and will require a new regulatory agreement be recorded against the Property restricting
income and rents at levels with at least 20% of the units affordable to low-income households, at least
20% of the units affordable to very low-income households, and 50% of the units affordable to at least
moderat e-income households; and
WHEREAS, the Surplus Land Act (SLA, or the Act), as set forth in Government Code Section
54220 and following, was amended to promote affordable housing development on unused or
underutilized public land throughout the state to respond to the affordable housing crisis and now
requires public agencies to follow certain procedures to purchase or dispose of "surplus land" or to
declare land to be "exempt surplus land " at a regular public meeting prior to disposition.
WHEREAS, under California Government Code Section 54221(f)(l)(A), "exempt surplus land"
includes land that is transferred pursuant to California Government Code Section 37364, which
authorizes a city to, subject to certain conditions, purchase, sell, lease, exchange, quitclaim, convey, or
otherwise dispose of real property to provide housing affordable to persons and families of low or
moderate income; and
WHEREAS, the exemption in California Government Code Section 54221(f)(l)(A) applies to
property that is transferred for affordable housing and satisfies the requirements of California
Government Code Section 37364; and
WHEREAS, the City Council has reviewed the Request for Proposals and its proposed minimum
affordability requirements for the Property in compliance of California Government Code Sections
54221(f)(l)(A) and 37364; and
WHEREAS, the city is not required to provide written notice of the property's availability for
open space purposes because the property is not within a coastal zone, adjacent to a historical unit of
the State Parks System, listed on, or determined by the State Office of Historic Preservation to be
eligible for, the National Register of Historic Places, or within the Lake Tahoe region; and
WHEREAS, the City Council has considered the acquisition of the Property for affordable
housing, and the testimony of all persons desiring to be heard on the matter at their regular meeting
on May 21, 2024; and
WHEREAS, the City Planner, through the process outlined in Carlsbad Municipal Code Section
19.04.060, has determined that this action is categorically exempt from the California Environmental
Quality Act pursuant to CEQA Guidelines Section 15326 (Acquisition of Housing for Housing Assistance
Programs). Any future change to the Property will be evaluated for any necessary environmental review
and approval. No appeals of this determination were received in accordance with Carlsbad Municipal
Code Section 21.54.140.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.
2.
That the above recitations are true and correct.
The City Council makes the following findings under California Government Code
Sections 54221(f)(l)(A) and 37364:
a. Not less than 80% of the area of the Property to be disposed will be used for the
development of housing, because the Property will only be used for housing as
identified in the Request for Proposals.
b. Not less than 40% of the total number of those housing units developed on the
Property shall be affordable to households whose incomes are equal to, or less than,
75% of the maximum income of lower income households, and at least half of which
shall be affordable to very low income households, because at least 20% of the units
on the Property will be restricted to use by low income households and at least 20%
of the units will be restricted to use by very low income households as identified in
the Request for Proposals and a 55-year city regulatory agreement to be recorded
on the property.
c. The dwelling units produced at the Property will be restricted by a city regulatory
agreement to remain continually affordable to those persons and families for not
less than 55 years; such covenants and conditions of the agreement will be binding
upon successors in interest of the housing sponsor; and such agreement will be
recorded by the San Diego County Recorder in the granter-grantee index.
3. Based upon the evidence presented, the City Council declares the Property to be exempt
surplus land pursuant to California Government Code Section 54221(f)(l)(A) as property
planned to be purchased and transferred pursuant to California Government Code
Section 37364.
4. That the City Manager or a designee is authorized to act on behalf of the City of Carlsbad
in all future actions necessary to be compliant with the Surplus Land Act for the
Property.