HomeMy WebLinkAboutDI 92-05; Aviara Affordable Housing Agreement; Discussion Item (DI) (2)AVIARA AFFORDABLE HOUSING
DEVELOPMENT AGREEMENT
BACKGROUND
THIS ITEM IS A REQUEST TO PROVIDE AN AFFORDABLE HOUSING
DEVELOPMENT AGREEMENT TO THE AVIARA MASTER PIAN IN
RETURN FOR THE ACCELERATED DEVELOPMENT OF THE
MASTER PIAN’S REQUIRED SHARE OF AFFORDABLE HOUSING.
LATE LAST YEAR, THE CITY COUNCIL APPROVED AN AGREEMENT WITH THE
DEVELOPER OF THE MASTER PIAN TO PROVIDE AFFORDABLE
HOUSING. BY ENTERING INTO THE AGREEMENT, THE
DEVELOPER ACCEPTED A 15% INCLUSIONARY HOUSING
REQUIREMENT EVEN THOUGH THE ORDINANCE TO
SPECIFICALLY MANDATE THE REQUIREMENT IS NOT YET
FORMALLY IN PLACE.
THE RESULT OF THE AGREEMENT APPROVED BY THE CITY COUNCIL IS THAT
A MINIMUM OF 160 UNITS OF AFFORDABLE, LOW INCOME
HOUSING WILL BE PROVIDED BY THE MASTER PIAN.
UNDER NORMAL INCLUSIONARY HOUSING REQUIREMENTS, THE 160 UNITS
COULD BE BUILT IN INCREMENTS OVER TIME IN PROPORTION
TO THE NUMBER OF MARKET RATE UNITS BEING
CONSTRUCTED. BASED UPON THE PROJECTED BUILDOUT OF
THE MASTER PIAN, THIS MEANS THAT IT COULD POTENTIALLY
TAKE 10 TO 15 YEARS BEFORE ALL OF THE REQUIRED 160
AFFORDABLE UNITS WOULD BE BUILT.
HOWEVER, ONE OF THE ALTERNATIVE PROPOSALS CONTAINED IN THE
AGREEMENT APPROVED BY THE COUNCIL LAST YEAR WAS TO
ACCELERATE THE DEVELOPMENT OF THE AFFORDABLE UNITS
AND HAVE THEM ALL BUILT AND AVAIIABLE AT ONE TIME
WITHIN A 3 YEAR TIME PERIOD.
THE MASTER PIAN DEVELOPER HAS NOW INDICATED THAT HE WISHES TO
PURSUE THIS ALTERNATIVE OF PROVIDING ALL THE
AFFORDABLE UNITS UP-FRONT, AT ONE TIME, RATHER THAN
WAITING FOR THE ENTIRE BUILD-OUT OF THE MASTER PIAN.
IN RETURN FOR THE ACCELERATED DEVELOPMENT OF THE AFFORDABLE
UNITS AND AS ALLOWED BY THE AGREEMENT APPROVED BY
THE CITY COUNCIL LAST YEAR, THE DEVELOPER IS REQUESTING AN
AFFORDABLE HOUSING DEVELOPMENT AGREEMENT WHICH WOULD
PROTECT THEM FROM FUTURE CHANGES OR FURTHER
REQUIREMENTS FOR AFFORDABLE HOUSING ONCE THE 160 UNITS
ARE CONSTRUCTED.
0 IN APPROVING THIS REQUEST FORA DEVELOPMENT AGREEMENT,
THERE ARE THREE THINGS THAT NEED TO BE CONSIDERED:
1) IS THERE A BENEFIT TO THE CITY IN TERMS OF COMPLYING
WITH ITS HOUSING ELEMENT IN HAVING THE ACCELERATED
DEVELOPMENT OF 160 AFFORDABLE HOUSING UNITS?
2) IS IT REASONABLE FOR THE DEVELOPER TO BE PROTECTED
FROM POTENTIAL, ADDITIONAL, FUTURE REQUIREMENTS
FOR AFFORDABLE HOUSING ONCE THEY HAVE MET THEIR
ONE TIME BASIS?
REQUIREMENT ON AN ACCELERATED, UP-FRONT, ALL AT
3) DOES APPROVAL OF THE DEVELOPMENT AGREEMENT
COMPLY WITH ALL APPLICABLE PROVISIONS OF THE
ZONING ORDINANCE SPECIFICALLY CHAPTER 21.70?
0 IN TERMS OF CONSIDERATION #I I STAFF BELIEVES THAT THERE IS A SIGNIFICANT BENEFIT TO THE CITY IN HAVING 160 UNITS OF
AFFORDABLE HOUSING BUILT UP FRONT, ALL AT ONE TIME BY
THE AVIARA MASTER PIAN DEVELOPER. THE CITY IS COMMITTED
BY ITS HOUSING ELEMENT TO ACTUALLY PRODUCING
AFFORDABLE UNITS WITHIN THE NEXT FIVE YEARS AND BY
HAVING ONE DEVELOPER BUILD 160 UNITS WITHIN THAT TIME
FRAME WILL SIGNIFICANTLY HELP THE CITY’S EFFORTS.
0 IN TERMS OF CONSIDERATION 442, STAFF BELIEVES THAT IT IS
VERY REASONABLE FOR THE DEVELOPER TO REQUEST THE TYPE
OF PROTECTION THAT IS PROVIDED BY A DEVELOPMENT
AGREEMENT IN RETURN FOR ACCELERATING THE DEVELOPMENT
OF THE AFFORDABLE UNITS. IT WOULD BE DIFFICULT FOR THE
AT ONE TIME AND THEN HAVE TO TAKE THE RISK OF HAVING
ADDITIONAL OR REVISED REQUIREMENTS PIACED ON THEM
LATER. THIS DEVELOPMENT AGREEMENT ONLY PROTECTS THE
DEVELOPER FROM FUTURE CHANGES HAVING TO DO WITH
INCLUSIONARY OR AFFORDABLE HOUSING REQUIREMENTS AND
NOT ANY OTHER STANDARDS OR REQUIREMENTS.
DEVELOPER TO MEET ITS TOTAL OBLIGATION UP-FRONT AND ALL
e IN TERMS OF THE 3RD CONSIDERATION, STAFF HAS REVIEWED
THE AGREEMENT IN LIGHT OF THE REQUIRED FINDINGS
CONTAINED IN SECTION 21.70. SOME OF THESE FINDINGS ARE
NOT SPECIFICALLY APPLICABLE BECAUSE A SPECIFIC LOCATION
FOR THE AFFORDABLE UNITS HAS NOT BEEN PROPOSED NOR IS
A SPECIFIC DEVELOPMENT PROJECT BEING REQUESTED AT THIS
TIME. HOWEVER, WITH RESPECT TO ALL THE APPLICABLE
FINDINGS, STAFF BELIEVES THAT THIS REQUEST COMPLIES AS
OUTLINED IN THE STAFF REPORT.
e THE PROPOSED DEVELOPMENT AGREEMENT WAS REVIEWED BY
THE HOUSING AND REDEVELOPMENT ADVISORY COMMITTEE
WHICH UNANIMOUSLY RECOMMENDED APPROVAL.
IT WAS ALSO REVIEWED BY THE CITY ATTORNEY’S OFFICE WHICH
DETERMINED THAT IT WAS IN COMPLIANCE WITH APPLICABLE
STATE LAWS AND LOCAL ORDINANCES.
e FOR ALL OF THESE REASONS, STAFF IS RECOMMENDING THAT
THE PLANNING COMMISSION APPROVE THIS ITEM AND FORWARD
IT TO THE CITY COUNCIL FOR ITS APPROVAL.