HomeMy WebLinkAbout2020-01-17; Housing Commission; Resolution 2020-001RESOLUTION NO. 2020-001
A.RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD,
CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL APPROVE
$4,043,392 IN ADDITIONAL FINANCIAL ASSISTANCE TO AFFIRMED HOUSING
(DBA CARLSBAD VETERAN HOUSING, LP.) TO CONSTRUCT FIFTY (SO)
AFFORDABLE APARTMENT UNITS RESTRICTED FOR HOMELESS AND LOWER
INCOME VETERAN FAMILIES, AS WELL AS PEOPLE EXPERIENCING
HOMELE:SSNESS WITH SEVERE MENTAL ILLNESS, ON PROPERTY AT 3606-
3618 AND 3630 HARDING STREET AND 965-967 OAK AVENUE
WHEREAS, Affirmed Housing has proposed to construct 50 apartment homes to be affordable
for very low and extremely low-income homeless veterans and veteran . families, and people
· experiencing homelessness with severe mental illness (SMI), on two noncontiguous sites located at
3606-3618 and 3630 Harding Street and 965-967 Oak Avenue in the city's northwest quadrant, and has
requested financial assistance from the City of Carlsbad to assist in the financing of said affordable
housing project; and
WHEREAS, the first request for financial assistance was submitted to the City of Carlsbad's
Housing Commission for review and consideration at their public meeting on July 14, 2016, on which
date said Commission recommended that the City Council approve the requested financial ass~1st~aiiin~cee~=--
in the amount of $4,250,000; and
WHEREAS, the Planning Commission approved said affordable housing development, now
known as Windsor Pointe Apartments, on Jan. 18, 2017; and
WHEREAS, at a public meeting on Feb. 14, 2017, the City Council reviewed the financial
assistance request and after considering staff and Housing Commission recommendations, and all
testimony of all persons desiring to be heard, approved the financial cash assistance in the amount of
$4,250,000 from Carlsbad's Housing Trust Fund (City Council Resolution No. 2017-030); and
WHEREAS, subsequent to the project and city financial assistance approvals, Affirmed Housing
has diligently pursued financing from other sources, which have been partly successful to date,
including the commitment of funding from the County of San Diego; and
WHEREAS, despite the additional funding secured and anticipated, due to high construction
costs and the complexities of creating financially feasible supportive housing, there remains a funding
ga·p for the Windsor Pointe Apartments; and
WHEREAS, in a letter dated Dec. 20, 2019, Affirmed Housing made a second request to the City
of Carlsbad for additional financial assistance in the amount of $4,043,392 to close the funding gap;
and
WHEREAS, the Housing Commission held a special meeting on Jan. 17, 2020 to consider the
financial assistance request, staff evaluation and recommendation, and the testimony of all persons
desiring to be heard on the matter.
NOW, THEREFORE, BE IT RESOLVED by the Housing Commission of the City of Carlsbad,
California, as follows:·
1. That the above recitations are true and correct.
2. That the request for financial assistance from Affirmed Housing is consistent with the
goals and objectives and programs of the City of Carlsbad's Housing Element,
Consolidated Plan, and other priority policy initiatives such as the Homeless Response
Plan.
3. That the request for financial assistance will assist the affordable housing developer in
constructing a total of 50, studio, one, two and three-bedroom affordable apartment
units for homeless veterans and lower income veteran families, as well as people
experiencing SMI, on two noncontiguous sites located at 3606-3618 and 3630 Harding
Street and 965-967 Oak Avenue in the city's northwest quadrant. The apartment units
will be affordable to households ranging from 25% to 50% of area median income for
San Diego County. The project, therefore, can effectively serve the city's housing needs
and priorities as expressed in the General Plan Housing Element and the Consolidated
Plan, and to meet the housing and service needs of the special needs population of
homeless military veterans and lower income military veterans and their families, as
well as people experiencing homelessness with SMI.
4. That, based on information provided in the Housing Commission staff report and
considering testimony of all persons desiring to be heard at the Jan. 17, 2020 public
meeting, the Housing Commission hereby recommends that the City Council approve
$4,043,392 in additional financial assistance to Affirmed Housing (dba Carlsbad Veteran
Housing, L..P.) from the city's affordable housing funds for the construction of fifty (SO)
Apartments sites to Affirmed Housing, and a residual receipts loan. The source of funds
shall be the city's affordable housing trust funds.
6. That Community Development Block Grant (CDBG) funds, to the extent they are
available within the project development timeline, may be used towards the property
acquisition, with a corresponding reduction to affordable housing trust funds assistance.
7. That the deputy city manager, administrative services shall appropriate funds necessary
to purchase the land at an agreed-upon price up to its fair market value, and shall
appropriate $50,000 from the Housing Trust Fund for costs related to the property
acquisition and execution of documents, including market appraisal services, relocation
consultant services, outside legal counsel and other related transaction costs.
8. That the City Council authorizes the real estate manager to negotiate with Affirmed
Housing (dba Carlsbad Veteran Housing, LP.) to acquire property at 3606-3618 and 3630
Harding Street and 965-967 Oak Avenue at an amount not to exceed the appraised fair
market value, and to lease back said property to Affirmed Housing (dba Carlsbad
Veteran Housing, LP.) at $1 per year.
9. That the City Council authorizes the city manager or designee to execute all documents
related to provision of the city assistance in the form of a residual receipts loan,
including but not limited to a Financial Assistance Loan Agreement, Note, Deed of Trust,
and Regulatory Agreement, subject to review and approval by the City Attorney.
10. That this financial commitment is conditional and contingent upon Affirmed Housing
receiving all necessary third-party funding commitments, including tax credits and
successful negotiation of all required property transfers, loan documents and legal
instruments to effectuate the transaction and implement development. The city's
commitment of funds, including the previous commitment approved on Jan. 17, 2017,
shall be maintained until Aug. 16, 2021, or three tax credit funding rounds, whichever
occurs ear.lier, but may be withdrawn at any time if satisfactory progress is not
demonstrated.
11. That a preference shall be given to Carlsbad residents for tenancy at Windsor Pointe
Apartments.
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Housing Commission of the City
of Carlsbad on the 17th day of January 2020, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
NGUYEN-CLEARY, COLE, CORTES-TORRES, MANZANO
NONE
EVANS
~~~~ HNNGYUEN-CLEARY, Chairperson
CARLSBAD HOUSING COMMISSION
ATTEST:
DAVID DE CORDOVA
Principal Planner