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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.