Loading...
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.