HomeMy WebLinkAbout1994-06-28; Housing & Redevelopment Commission; 251; Laurel Tree Apartments Affordable Housing ProjectHOUSING AND.‘EDEYELOPMENT COMMIS-3N - AGbidd ‘EhLL
hB# Lw TITLE: AUTHORIZE THE APPROPRIATION OF $500,000 IN REDEVELOPMENT
LOW AND MODERATE INCOME HOUSING SET-iiSIDE FUNDS TO PROVIDE DEPT. H Q
MTG. 6/B/94 FINANCIAL ASSISTANCE TO THE PROPOSED LAUREL TREE APARTMENTS
AFFORDABLE HOUSING PROJECT IN CARLSBAD AND TO SUPPORT AN % CIM An7/
DEPT. RED. APPLICATION FOR HOME FUNDS FROM THE STATE OF CALIFORNIA. CITY MGR.m
RECOMMENDED ACTION:
Adopt Housing and Redevelopment Commission Resolution No. d to APPROVE the
appropriation of $500,00Oin Redevelopment Low and Moderate Income Housing Set-aside
Funds to provide financial assistance to the proposed Laurel Tree Apartments Affordable
Housing Project and to support an application by the. MAAC Project to the State of
California for $500,000 in 1994 Federal HOME Investment Partnership Program Funds
related to the subject project.
ITEM EXPLANATION:
HOME PROGRAM
The National Affordable Housing Act of 1990provides Federally administered block grants
to the nation’s states, cities and counties. One of the major programs funded under the
noted housing act is the HOME Investment Partnerships Program. The purpose of the
HOME program is to assist in the acquisition, development, construction, or rehabilitation
of housing affordable to persons or families of low income and to provide direct assistance
to low income families in the form of tenant-based rental assistance.
HOME funds were allocated by a formula to eligible participating jurisdictions, state and
local governments, throughout the United States. Cities and counties, such as Carlsbad,
which are not participating jurisdictions and not participating in Urban County agreements
and/or Community Housing Development Organizations (CHDOs) are eligible to apply for
funds through the State of California Department of Housing and Community Development.
The intent of the HOME program is 1) to expand the supply of decent, safe, sanitary and
affordable housing, primarily rental housing; 2) to strengthen the abilities of state and local
governments to provide housing; 3) to assure that federal housing services, financing, and
other investments are provided to state and local governments in a coordinated, supportive
fashion.
For fiscal year 1994, the State was allocated $28.4 million for the HOME program to
distribute statewide. The Department of Housing and Community Development has
prepared regulations to operate the State’s HOME program and is making those funds
available through a Notification of Funding Availability (NOFA) process. Individual
applications are limited to $1 million, per agency/CHDO, and can include the entire range
of activities that are eligible under HOME or can be restricted to one activity.
HOME APPLICATION
In the past two years, the City of Carlsbad has applied for HOME funds to expand the
existing Rental Assistance Program to very low income households. To date, however, the
City has not been successful with its applications. Staff believes that new construction
projects tend to compete better in the process. In addition, new construction of rental units
for very low income households is a high priority in terms of the City’s Comprehensive
Housing Affordability Strategy and Housing Element. Therefore, for program year 1994,
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staff is recommending that the City support a HOME application by the Metropolitan Area
Advisory Committee, known as the MAAC Project, for a proposed new construction
affordable housing project in Carlsbad.
MAAC PROJECT
The MAAC project is a non-profit organization which will be eligible as a CHDO to apply
for HOME funds through the State of California. MAAC has been serving low income
people of San Diego County since 1965. The organization’s Community Development
Division is dedicated to building multi-income, multi-ethnic, service enhanced, yet self-
sufficient communities in San Diego County. MAAC’s most recent project is an affordable
housing project known as the Mercado Apartments in the Logan Heights neighborhood of
the City of San Diego. This project was the result of a successful public-private
development effort similar to the model which the City has implemented with the Villas at
El Camino Real.
PROJECT DESCRIPTION
The Laurel Tree Affordable Housing Project proposed for Carlsbad consists of 152 rental
apartments on an 8.5 acre site located south of Palomar Airport Road at College Boulevard.
The project will include a mixture of 1, 2, 3 and 4 bedroom units and will be affordable to
households with gross incomes not to exceed fifty percent (50%) of the Area Median
Income. It is contemplated at this time that additional project amenities will include
facilities to provide recreation, daycare, after-school programs and job training/education.
The development team consists of the following members: Dwight Spiers (property owner);
MAAC Project (non-profit developer); Jack Henthorn and Associates (Land Planner); and,
Steve Kuptz, of Sentre Partners (Financial Consultant). The development team has
considerable development experience from both the private and non-profit standpoint. In
particular, they have developed quality projects and attracted significant subsidy capital
to insure affordability.
The development team intends to apply for tax credits, a private bank loan, a Federal
Home Loan Bank loan and State HOME funds to assist in financing the project. A private
bank has tentatively committed to providing funding for pre-development costs. Staff’s
review of the project’s preliminary financial proforma indicates that the project will also
require financial assistance from the City of Carlsbad in order to leverage substantial
additional subsidy from other programs. Although the subject project must still go through
the City’s comprehensive land use review process, staff feels that it is appropriate to take
action to commit funding to the project at this time to assist with the development team’s
application for HOME and other affordable housing funds.
HOME MATCHING FUNDS
The MAAC Project will actually prepare the HOME application as a CHDO and submit it to
the State of California for consideration. The HOME regulations require a matching funds
commitment with the application which is due no later than July 12, 1994. Since staff
believes that the benefits of the subject project warrant City financial participation, the
recommendation is to commit $500,000 from the Redevelopment Low and Moderate
Income Housing Fund to the Laurel Tree Apartments Affordable Housing Project. The
commitment of funds would be contingent upon the project’s successful completion of the
PAGE3-AB# as/
City’s land use review process and award of HOME funds by the State of California. Staff
further recommends that the funds be provided on a $1 for $1 basis. If the MAAC Project
receives a full $500,00Ofrom the State, then the City will provide $500,000. If the award
is for only $250,000, the City will provide only $250,000. Ultimately, if the project is
approved and receives tax credits and other funds, the City funds will be highly leveraged
in achieving these affordable housing units.
HOUSING COMMISSION RECOMMENDATION
The Housing Commission considered this matter at their meeting held on June 9, 1994.
The Commission approved a recommendation to the City Council/Housing and
Redevelopment Commission to appropriate $500,000 from the Redevelopment Low and
Moderate Income Housing Fund for the subject project and to support submission of the
HOME application by the MAAC Project.
FISCAL IMPACT:
Staff is recommending that $500,000 in Redevelopment Low and Moderate Income
Housing Funds be committed at this time to the proposed Laurel Tree Apartments
Affordable Housing Project.
As of this date, the Redevelopment Low and Moderate Income Housing Fund has a balance
of approximately $1,415,000, which includes one reimbursement payment from the
Community Development Block Grant (CDBG) Fund for property acquisition related to the
Villas at El Camino Real. An additional reimbursement payment of $1.2 million from CDBG
funds is anticipated by August, 1994. At the time of the second payment, the Low and
Moderate Income Fund will have a balance of approximately $2,615,000.The Agency will,
therefore, have adequate funds available to make the previously approved loan of $2
million for the Villas and pay for administrative costs of the Agency, as well as make an
additional loan of $500,00Oto the Laurel Tree Apartment Project as recommended within
this report.
Property acquisition, site improvements and/or construction are eligible uses of the
Redevelopment Low and Moderate Income Housing Funds. In addition, the Commission
can make the appropriate findings to allow the expenditure of these funds outside the
Village Redevelopment Area. The findings of benefit to the Village Redevelopment Area are
outlined within the project summary provided as Exhibit 2 to this report.
EXHIBITS:
1. Housing and Redevelopment Commission Resolution No. 2 4 1 authorizing
appropriation of $500,00Oin Redevelopment Low and Moderate Income Housing
Funds for the Laurel Tree Affordable Housing Project.
2. Summary of Laurel Tree Affordable Housing Project.
3. Housing Commission Resolution No. 94-01 1 approving a recommendation to
authorize appropriation of $500,00Ofor the Laurel Tree Affordable Housing Project.
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HOUSING & REDEVELOPMENT COMMISSION RESOLUTION NO. 248
A RESOLUTION OF THE HOUSING AND REDEVELOPMENT
COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA TO
APPROVE THE APPROPRIATION OF $500,000 IN
REDEVELOPMENT LOW AND MODERATE INCOME
HOUSING SET-ASIDE FUNDS FOR AN AFFORDABLE
HOUSING PROJECT KNOWN AS THE LAUREL ‘TREE APARTMENTS PROJECT AND TO SUPPORT AN
APPLICATION BY THE MAAC PROJECT FOR HOME FUNDS
FROM THE STATE OF CALIFORNIA.
WHEREAS,the Redevelopment Agency of the City of Carlsbad, hereinafter referred
to as “Agency”,is a Community Redevelopment Agency organ&d and existing under the Community
Redevelopment Law, Health and Safetv Code Section 33000, et.seq., hereinafter referred to as the
“Act” ; and
WHEREA!$the Agency is author&d to implement the Redevelopment Plan for the
Carlsbad Village Redevelopment Project Area; and
WHEREAS, Section 33334.2 of the Act requires that not less than twenty percent
(20%) of all taxes which are allocated to the Agency be used for purposes of increasing and
improving the community’s supply of low and moderate income housing; and
WHEREAS, pursuant to Section 33334.2(g) of the Act, the Agency may use these
funds inside our outside the project area upon a resolution of the Agency and the legislative body
that the use will be of benefit to the project. This determination shall be final and conclusive as to
the issue of benefits to the project area; and
. . . .
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HRC RESOLUTION NO. 241
PAGE 2
WHEREAS, to carry out the purposes of increasing and improving the
community’s supply of low and moderate income housing, Section 33334.2 (e) of the
Act states that the Agency may exercise any or all of its powers, including without limitations,
acquiring land or building sites, improving land or building sites with onsite or offsite
improvements, donating land to private or public persons or entities, constructing buildings or
structures, acquiring buildings or structures, providing subsidies to, or for the benefit of, very
low income households, lower income households, or persons or families of low and moderate
income, or other powers to carry out the purposes of the Act; and
WHEREAS, the Housing and Redevelopment Commission APPROVES the
expenditure of $500,000 from the Carlsbad Redevelopment Agency’s Low and Moderate
Income Housing Set-aside Fund outside the Redevelopment Project Area for the purposes of
providing financial assistance for construction of new affordable rental housing units within
the proposed Laurel Tree Apartments Project.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing and
Redevelopment Commission of the City of Carlsbad, California, as follows:
1. The above recitations are true and correct.
2. That the expenditures of monies from the Carlsbad Redevelopment Agency’s
Low and Moderate Income Housing Fund for the purposes of providing financial
assistance to a new rental housing construction project affordable to very low
income households outside the Redevelopment Project Area, in which such
funds are generated, are and will be of benefit to the respective Project Area.
3. The Housing and Redevelopment Commission authorizes the Agency to expend
a maximum of $500,00Ofrom the subject Low and Moderate Income Housing
Set-aside Fund for the purposes of providing new housing rental units for very
low income households within the Laurel Tree Apartments Affordable Housing
Project.
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HC RESOLUTION NO. 241
PAGE 3
. . . .
. . . .
4. That the subject Low and Moderate Income Housing Set-Aside Funds will be
used in combination with Federal Home Investment Partnership Program Funds
(HOME) to finance the costs of acquiring property and/or constructing new
affordable housing units within the Laurel Tree Apartments Affordable Housing
Project.
5. The Housing and Redevelopment Commission hereby authorizes the Finance
Director to appropriate $500,00Ofrom the Redevelopment Low and Moderate
Income Housing Set-aside Funds to financially assist with site development
and/or construction of the subject affordable housing units outside the Village
Redevelopment Area but within the City of Carlsbad.
PASSED, APPROVED, AND ADOPTED at a special meeting of the Housing and
Redevelopment Commission of the City of Carlsbad, California, held on the 28th day of June,
1994, by the following vote, to wit:
AYES: Commissioners Stanton, Kulchin, Nygaard, Finnila
NOES: None
ABSENT: Commissioner Lewis
ABSTAIN: None
ATTEST:
Chairperson TANTON, Vice Chair
RAYMOND R. PATCHETT, Secretary FRANK MANNEN, Assistant Secretary
6
EXHIBIT 2
LAUREL TREE APARTMENTS
AFFORDABLE HOUSING PROPOSED PROJECT
SUMMARY
PRODUCT.
The proposed project consists of 152 rental apartments with a mixture of one, two, three and
four bedroom units. It is contemplated that additional amenities will include facilities for
recreational activities as well as daycare, after school and job training/education programs.
DEVELOPMENT TEAM.
The Development Team shall consist of the following members:
0 Landowner/Developer: Dwight Spiers
a Non-Profit Developer: Metropolitan Area Advisory Committee (MAAC Project)
0 Land Planner: Jack Henthorn and Associates
a Architect: Lorimer-Case (tentative)
0 Financial Consultant: Steve Kuptz, Sentre Partners
a General Contractor: to be determined
0 Lender/Tax Credit Investor: to be determined
The team possesses considerable development experience from both the private and non-profit
standpoint. The MAAC Project has recently completed a 144-unit affordable housing
development within the City of San Diego. This project has already been highly acclaimed for
its design quality, affordability and as a successful public-private development effort.
SITE/LAND USE.
The Laurel Tree Apartments Project is proposed for an approximately 8.5 acre site located
South of Palomar Airport Road at College Boulevard. The site is currently designated for office
and will require a rezoning and General Plan Amendment. The project proposal is currently at
a preliminary stage. The project will need to be processed through the City’s Comprehensive
Land Use Review Process prior to final approval by the City Council.
AFFORDABILITY.
The project is proposed to be affordable to households with incomes not to exceed fifty
percent (50%) of the Area Median Income. Based on current income levels provided by the
U.S. Department of Housing and Urban Development, the range of incomes for the project
shall be approximately $16,000 to $30,000 based on household size. Consistent with the
requirements of the tax credit program, the units would remain affordable for a minimum of
fifty-five (55) years.
The level and term of affordability, particularly for larger size units, meets the highest priority
need for the City of Carlsbad as outlined with the City’s approved Comprehensive Housing
Affordability Strategy (CHASI. Also, the number of units will assist the City in meeting a
portion of the goal (1400 units) for providing new units as outlined within the Carlsbad
Housing Element.
FINANCING.
As with nearly all affordable housing projects, the financing for the Laurel Tree Apartments
Affordable Housing Project will be accomplished through a variety of sources. A preliminary
7
II summary of sources and uses of funds for the project is as follows:
USES. d
Total Projected Development Costs
$12,819,969
SOURCES:
Tax Credit Equity
Private Bank Loan
Federal Home Loan Bank - Affordable
Housing Program Loan
Developer(s) Contribution
State HOME Funds
City Assistance
Total Sources of Funds
$ 5,954,303 (46%)
$ 3,521.873 (27%)
$ 836,000 I 7%)
$ 1,507,793 (I 2%)
$ 500,000 I 4%)
$ 500,000 ( 4%[
$12,819,969
At this early stage in the development of this project, these proforma numbers must be viewed
as preliminary. This financing structure is typical of Tax Credit projects in terms of the multiple
sources of subsidy required to achieve the desired level of affordability. As with most projects
of this type, the project will support a relatively small private bank loan (approx. 27% of total
need). Therefore, nearly one-half of the total development costs must be financed by Tax
Credit equity. As noted in the chart above, almost 30% of the funds needed to finance the
project must come from other subsidy sources, including the City of Carlsbad.
CtTY FINANCIAL ASSISTANCE TO PROJECT.
Staff of the Carlsbad Redevelopment Agency will recommend that $500,000 be contributed
from the Low and Moderate Income Housing Set-Aside Fund to this project to assist in the
financing. Although this project is actually located outside the Village Redevelopment Area,
the attached facts are presented to reflect the benefit of the project to the Redevelopment
Area. In addition to the attached facts, the State Legislature has found and declared that “the
provision and improvement of affordable housing outside of redevelopment project areas can
be of direct benefit to those projects in assisting the accomplishment of project objectives
whether or not those redevelopment projects provide for housing within the project area.” The
legislature encourages the use of the Redevelopment Low and Moderate Income Housing
Funds both inside and outside the Redevelopment Project Area for affordable housing because
it has a statewide benefit as well as a local benefit.
ATTACMENTS:
A- Brochure information on the MAAC Project.
B- Article regarding Sentre Partners.
C- Facts regarding benefit of project to Redevelopment Area.
- ATTACHMENT A
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ATTACHMENT 6
,GREATER SAN DIEGO CHAMBER OF COMMERCE BWNESS ACTION - JUNE 1994
P
1 SMALL BUSINESS OF THE MONTH
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$EyTRE PARfN”s ’ The market& are changing... I . und so cue we?
BY STEVE CAHFOWJCH Brie & Asdares
Arthur Banker, co-founder of
Coldwell Banker would be proud
of his grandson, Stephen B. Will=
jams, ,Not because he chose a
similar profession, but becauseof
the entrepreneurial spirit and high
standards he and his assoclales
briun to SENTRE .Partners, the
1 SBJL? Small Business of
the Month for J&c,
The San Diego-based . . real eslate managemenl
and investment company
manages 3 million square
feet of commercial space
with a portfoR value of
$250 million. SENTRE
Partners (pronounced
‘sentry”) formed earlier
this year with the merger
of Williams Partnets, The
Spathas Co. and The
Wakeland Group.
Williams, and his partners, 1.
Cole Fran&, Michael P. Peckham,
John F. McCall, Matthew T.
Spathas and Stephen L Kuptz of-
fer more than SO Yeats of collec- live experience in assel manage-
ment, leasing and rtai eslate in-
vest.mcnts for a variety of clients
Today, SENTRE Parlners em-
ploys more Ihan 30 people in of-
fices of downtown San Diego,
Mission Valley, Sorrento Mesa,
Keamy Mesa and San Francisco.
The firm’s inslilutional clients in-
clude ‘Bank 61 America, Gensia
Pharmaceutical,GECapilalCorp.,
John Hancock Mutual Life Insur-
ance Co. and Rockefeller & Asso-
ciates.
Currently, SENTRE Partners
handles teasing at One American
Plaza, as well as management and
leasin
Tech te
at 600 B Street, San Diego
n&r and the Pacific Gale-.
way high-rise in downlown San
. Francisco.
Psrtners was created reflects the
partners’ entrepreneurial bent.
“We were doing just .fine before
the merger, but we saw an oppor-
tunity to gain strength through di-
versity,” Williams said. ‘The for-
mation of SENTRY Partners en-
ables us to better meet our clients’
expanding real estate needs.”
The company’s name steq~s di-
rectly from its parlners’
shared values and vision.
First, they believe in be.
inggood stewards of real
estate. Next, they have
an entrepreneurial vision
and their expertise lies in
real estate, This syner-
gistic relationship makes
them partners in every
sense of the word.
As for the future,
SENTRE Partners is fo-
cused on more than just
the bottom Rne. “We’re
interested in the top line.” Will-
iams said,.“which is building last-
ing relationships through trust and
confidence.”
Small Bustness Development
Ceater located at: 427s Execu-
the Square, Suite 920; La Jolla, CA 92037. Pbone: (619) 45%
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1’ 1 a in S‘an Diego and San VFrancisco, The way in which SENTRE 9388; FAX: 450-1997.’ ,’ -i
? June 17, 1994
ATTACHMENT C
TO: CITY MANAGER
FROM: HOUSING AND REDEVELOPMENT DIRECTOR
FACTS ON RECORD WHICH SUPPORT THE USE OF LOW/MODERATE INCOME HOUSING
SET-ASIDE FUNDS OUTSIDE THE VILLAGE REDEVELOPMENT AREA
In order to expend Low and Moderate Income Housing Set-Aside Funds for Affordable Housing Projects
outside the Village Redevelopment Area, the Redevelopment Agency should find that the proposed project
benefits the Redevelopment Area. The Agency has found that the proposed Laurel Tree Apartments
Affordable Housing project will, in fact, benefit the Village Redevelopment Area based on the following
finding :
a The Village Redevelopment Area currently consists of a number of restaurants, hotels, time-share
projects and small retail operations which depend on and offer employment at low to moderate
income wages. The proposed housing project offers affordable housing opportunities with
restricted rents affordable to low and very low income households. This type of restricted rental
housing project offers opportunities which are currently not available to employees working
within the Village Redevelopment Area.
Additional information on specific facts related to the above finding is attached for review by the Housing
and Redevelopment Commission/City Council.
In addition to the above finding, Section 33334.6 of the Health and Safetv Code states that the legislature
has declared that the provision of housing is itself a fundamental purpose of the Community
Redevelopment Law and that a generally inadequate statewide supply of decent, safe and sanitary housing
affordable to persons and families of low or moderate income threatens the accomplishment of the
primary purposes of redevelopment. The legislature has, therefore, found and declared that the provision
and improvement of affordable housing outside of redevelopment project areas can be of direct benefit
to those project areas in assisting the accomplishment of redevelopment objectives.
Based on the findings noted above and the fact that the proposed housing project promotes the City of
Carlsbad’s housing goals and satisfies specific requirements of the Community Redevelopment Law to
expend a portion of its tax increment to produce affordable housing opportunities for low and moderate
income persons, Agency staff recommends APPROVAL of the use of set-aside funds for the affordable
housing project known as Laurel Tree Apartments.
ATTACHMENT:
Summary on jobs/employment opportunities within the Village Redevelopment Area.
r
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CITY OF CARLSBAD
LAUREL TREE APARTMENTS
VILLAGE REDEVELOPMENT AREA RECORD OF FACTS
The facts outlined within this report were considered and evaluated in the Agency’s decision to
use Village Redevelopment Low and Moderate Income Housing Set-Aside Funds on the
proposed Laurel Tree Apartments Affordable Housing Project which is located outside the
Redevelopment Area.
A 1992 study on employment trends completed by Keyser Marston Associates, Inc. for the
Village Redevelopment Area highlights the following statistics on jobs/employment opportunities
(non-government) within the employment sectors noted below. There are approximately:
0 41 jobs in Agriculture, Forestry, Fishing & Mining;
0 399 jobs in Construction;
0 145 jobs in Manufacturing;
0 106 jobs in Transportation, Communications, & Utilities; I
0 180 jobs in Wholesale Trade;
0 1606 jobs in Retail Trade;
0 609 jobs in Finance, Insurance and Real Estate; and,
0 2,164 jobs in Services Employment Sector.
As reflected above, the largest Village employers fall within the Retail Trade; Finance,
Insurance and Real Estate Trade (F.1.R.E); and, Services Sector.
The employers include Carl’s Junior, Jack in the Box, Kentucky Fried Chicken, Denny’s
Restaurant, Neiman’s Restaurant, Coyote Bar and Grill, antique dealers, children’s wear, apparel
and beach wear, handicraft and gift shops, four service stations, Big Bear Supermarket, a
pharmacy, liquor stores, a clock repair shop, donut shops/bakeries, delicatessens, small pubs,
cleaners, etc. Professional Office Buildings, within the Village, are comprised of smaller
professional tenants such as medical, chiropractor, dentist, legal, financial, insurance and real
estate tenants.
In a July, 1989 study conducted by Keyser Marston Associates for the City of San Diego, a
conclusion was reached which indicated that a “nexus can be established between the employees
of the various commercial and industrial buildings and the number of lower income households
associated with the buildings. ” Carlsbad Staff has applied some of the findings of Keyser
Marston’s study to Village statistics on employment to provide a rough estimate of the number
of lower income employees which will benefit from affordable housing inside or outside the
Village Redevelopment Area:
Employment Sector
Manufacturing
Total # of % of Lower Income Est. # of lower income
Jobs Employees employees
145 25.2% 36
Retail Trade I 1606 I 27.6% I 443
Office (F.1.R.E) I 609 I 18.7% I 114
Service I 2,164 I 32.9% I 712
Total 4,524 1,305
The conservative estimates noted above indicate clearly that there is a substantial number of
lower (below 80% of median) income employees within the Village Redevelopment Area which
can benefit from the Laurel Tree Apartments Affordable Housing Project. Due to the “mom and
pop” nature of the businesses in the Village, it is probably safe to assume that the actual number
of lower income employees is much larger than the above figure of 1,305.
On a related note, the conclusions of Keyser Marston’s 1992 Housing Survey for the Village
Redevelopment Area indicates that household income levels in the Village are substantially lower
than in the City or County as a whole. The median income was approximately $23,000. Almost
one third of households in the downtown area earn less than $15,000 annually. The detailed
housing survey concluded that more than three-fifths of renters in the downtown area make total
housing payments in excess of 30% of income. Based on these survey findings, current residents
of the Village Redevelopment Area also have a need for more affordable housing. Since there
is currently no “restricted rent” housing available within the Village Area, the Laurel Tree
Apartment project will provide a new affordable housing opportunity for current residents of the
area as- well as employees who may or may not live in the Village.
The attached chart provides a breakdown of selected job classifications which can be found in
the various employment sectors located within the Village Redevelopment Area. Although we
do not have precise figures on the actual number of people within each job classification, based
on staff’s experience in working with the employers/employees within the Village, we believe
it is reasonable to assume that a majority of the subject employees have positions similar to those
outlined and are receiving comparable compensation.
As a final note, the Redevelopment Agency proposes to expend a maximum of $500,000 on a
permanent basis of Redevelopment Low and Moderate Income Housing Set-Aside funds for the
subject project. This amount represents four percent (4%) of the total sources of funds needed
for the project.
CITY OF CARLSBAD
VILLAGE REDEVELOPMENT AREA
SELECTED JOB CLASSIFICATIONS AND WAGE INFOFtMATION
JOB TITLE
I
ANNUAL EARNINGS’
I
INCOME
LEVEL’
Preschool Teacher III I $16,800 ] Very Low
Purchasing Agent III $27,360 LOW
Tax Interview/Preparer III $28,800 LOW
Food Service Manager III
Lodging Manager III
Computer Operator III
Account Clerk III
General Clerk III
Secretary III
$19,680
$24,960
Very Low
LOW
$23,856 LOW
$20,160 LOW
$17664 very Low
$23,808 LOW
Switchboard Operator/Receptionist
Hotel Desk Clerk III
Medical Secretary III
Cashier III
Stock Clerk, Stockroom/Warehouse III
$14,400
$14.409
$19,680
$12,960
$13,440
Very Low
Very Low
Veiy Low
Very Low
Vety Low
HairlCosmotology III
Janitor/Cleaner III
Maid/Housekeeping III
Medical Assistant III
$19,200
$15,360
$11,040
$17,280
Very Low
Very Low
Very Low
Very Low
Sales Agent, Advertising III $20,640 LAW
Sales Person, Retail III
Electrical Installer/Repairer III
$12,480
$23.520
Very Low
LOW
General Maintenance $17,760 Very Low
Maintenance Electrician - Manufacturing I $29,088 I LOW II
Maintenance Mechanic - Machinery
Maintenance Mechanic - Motor Vehicle
$27,379 LOW
$29,760 LOW
Tire Repairers/Changers III
Driver, Sales Worker
Offset Litho Press Setter/Operator III
$15,360
$14,880
$26,880
Very Low
Very Low
LOW
Truckdrivers - Service Products
Carpenter II
Lather II
$19,200 I Very Low II
$28.320 LOW
$26,429 LOW
. 1. Sources: “Annual Planning Information, San Diego Metropolitan Statistical Area”, June 1992,
State Employment Development Department, Labor Market Information Division, and
“Occupational Compensation Survey: Pay Only, San Diego, Ca. Metropolitan Area”, October,
1991, U.S. Department of Labor, Bureau of Labor Statistics
2. Assumptions: Family Size is equal to 2.59 or three (3) persons; single wage earner
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EXHIBIT 3
HOUSING COMMISSION RESOLUTION NO. 94-011
A RESOLUTION OF THE HOUSING COMMISSION OF THE
CITY OF CARLSBAD, CALIFORNIA RECOMMENDING
APPROVAL OF CITY/REDEVELOPMENT AGENCY
FINANCIAL ASSISTANCE TO AN AFFORDABLE HOUSING
PROJECT WHICH WILL PROVIDE A TOTAL OF 152 RENTAL
UNITS FOR LOWER INCOME HOUSEHOLDS TO BE
LOCATED WITHIN THE SOUTHWEST QUADRANT OF THE
CITY.
CASE NAME: LAUREL TREE AFFORDABLE HOUSING PROJECT
WHEREAS, the City of Carlsbad has identified a need to provide at least 1400
housing units affordable to households of low and very low income by 1996; and
WHEREAS, a project, known as the Laurel Tree Project, has been proposed for
construction which will provide 152 residential apartments on an 8.5 acre parcel located south
of Palomar Airport Road, at Laurel Tree Lane, which will be affordable to lower income
1 households; and
~ WHEREAS, the City of Carlsbad’s preliminary financial analysis of the project
concludes that city financial participation in the project will be necessary and appropriate due to
the public benefit received by the City; and
. . . .
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HC RESO. NO. 94-011
PAGE 2
. . . .
. . . .
WHEREAS, the affordability level and the unit mix of the proposed project are
consistent with the City of Carlsbad’s Housing Element objectives, Comprehensive Housing
Affordability Strategy, Inclusionary Housing Ordinance, and Density Bonus Ordinance.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission as
follows:
1. That the foregoing recitations are true and correct.
2. That the Housing Commission recommends to the City Council/Housing and
Redevelopment Commission of the City of Carlsbad approval of financial
assistance to the proposed affordable housing project known as the Laurel Tree
Affordable Housing Project on Laurel Tree Lane, south of Palomar Airport Road
in the following form:
A cash contribution of up to $500,000 from the Redevelopment Low and
Moderate Income Housing Fund to be provided for the purposes of property
acquisition for the Laurel Tree Affordable Housing Project. These funds shall be
provided on a $1 .OO for $1 .OO matching basis according to the amount of Federal
assistance HOME funds received from the State of California. Provision of the
City/Redevelopment Agency funds shall be contingent upon approval of a HOME
funds application to be submitted by the project development team and final
approval of the housing project by the City Council of the City of Carlsbad.
3. That the Housing Commission recommends that the development team for the
subject affordable housing project shall enter into appropriate agreements with the
City of Carlsbad which outline the terms of City financial participation in the
project and the conditions to be met prior to commitment of City assistance to the
subject project.
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_-
HC PESO. NO. 94-011
PAGE 3
. . . .
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4. That the Housing Commission recommends that the City of Carlsbad support the
application for HOME funds to be submitted to the State of California by the
development team for the subject project, which includes the non-profit multi-
purpose agency known as the Metropolitan Area Advisory Committee (MAAC
Project).
PASSED, APPROVED, AND ADOPTED at a regular .meeting of the Housing
Commission of the City of Carlsbad, California, held on the 9th day of June, 1994 by the
following vote, to wit:
Si, Sato, Calverley, Escobedo AYES: Commissioners: Scarpel
& Noble.
NOES: None.
ABSENT: Commissioners:
ABSTAIN: Commissioner Avis.
ATTEST: iv
EVAN BECKER
Housing and Redevelopment Director
21
c . A
l I
RCU c . F;?:xEROx TELECOPIER 7010 ; 6-28-94 5: 15PM :619 722 0549 + 7202037; # 2
FROM : Legal Qid Society - Oceanside TEL: 619 722 0549 JUN. 28.1994 5:12 PM P 2
LI%GAL AID SOCIIETY OF SAN DIEGO, l[NC, O~ca of & Public A~~rmsv l 216 S. T~nmone St-t ’ Ocean&,, CA 32064 (619) 724-2740 (61.9) 722-1936
June 28, 1994
CLAHB MAUDSLEY Pm~~h, l&d OI Dinohm QRWXtY B. KNOLJ, BrewLive Dirbd&&J GuamI
FAXED TO 720-2037
Claude A. Lewis, Chairperson Bousring t Pedevelopmsnt Commission 1200 Car.lsbad Village Drive Carlsbad, CA 92008
Re: Use of LOW L Moderate Income ~ousing..Punds to Provide Financial AesistancE: to the Propsed ‘i;aurel Tree Apartments Afformusjng Project
Dear Mr. Lewis:
Fi.rst, Legal Aid Society, on behalf of its very-low incOaae client&, iz extremely supportive of the City of Carlebad’s plan to apply for HOME Punds for the purpose of building# affordable rental units. Having been unsuccessful in its application for HOME Funds to expand Carlsbad’s Existing Rental Assistance Program, this represents a more aggressive propoeal in an attempt to get Carlabad’s share of the state- wide HOME Funds. The need for very-low income affordable housing in Carlsbad is great; we hope your application for these funds is successful.
The Laurel Tree project has much to recommend it. Of the 152 units proposed, there will be a mix of bedroom sizes: 38 one- bedroom; 29 two-bedrooms 70 three-bedroom; and 15 four- bedroom units are proposed. The emphasis on the three and four-bedroom unit sizes recognizes the greatest affordable housing need in Carlsbad. A commitment that 100% of the units be affordable to households making at or below 50% of the area median alao places Carlebad’e priorities where they should be, providing affordable houeing for individuals and families most in need. Should tax credits be part of the financial. package for Laurel Tree, then the minimum durations of affordability under that program, 55 yearzr would coincide with Carlsbad’s lnclu0ionary Ordinance. Last but not least, this proposal represents Grlsbad’s Staffs’ ability to bring together an effective development team which consist8 of a qualified non- profit, thus enabling the City to highly leverages its local
-4 . r
:
. . RC; cay: XEROX TELECOPIER 7010 ; 6-28-94 5:16PM ;619 722 0549
FROM : Legal Rid Society - Oceanside TEL: 619 722 0549
+ 7202037: # 3
JUN. 28.1994 5: 12 PM P 3
Claude A. Lewis June 28, 1994
_Page 2
housing funds.
Legal Aid 8oci;;y has but two reservations wfth regard to the proposal. the site is a bit isolated. Groceries and
other necesearie; are about one mile from the site, more or less, and there is no mass transit that services this area. fn order to Access the downtown arear residents that do not have cars or merely opt to use public transport, must walk to Paseo De1 Norte and Palomar Airport Road to catch the No. 321 bus. Although this bus takes only twelve minutes to teach downtown Carlsbad at Washington and Grand, it only runs every 70 minutes. To head north or south along El. Camino Real, residents must walk to Yarrow Drive and Palomar Airport Road and catch the No. 309.
Given the relative inaccessibility to public transit anb its distance f ram the project area, the Agency’s proposed finding that Rousing Fund expenditures on Laurel Tree will “benefit@@ the project arear become increasingly strained. The bacrisl for this benefit finding is that there are a significant number of 1 ow,-payi.ng jobs, but no housing units within the project area, affordable to these service and retail industry employees. Therefore, so the argument goeel providing housing outside the project area which will be affordable to employees who work within it will benefit the project area. Yet it is just as much, if not more likely, that Laurel Tree will provide affordable housing for those employed outside the project area. And it its truer atill to say that aEfordable housing within the project area is more likely to provide housing opportunities by those employed within the project area at or near minimum wage.
The Legislature mandated the housing set-aside to assure that
the Agency would have monies available to fulfil1 its replacement and inclueionary housing requirements within the project area I and that the project area contains a balance of commercial and residential development,
While the Cit of Carlsbad has the laudible objective of dis- -3 tributing af ordable housing opportunities throughout the City, the Redevelopment Agency must be predominantly concerned with the success and legitimacy of its redevelopment project. The etate required expenditures for housing within the project area, because the Legislature saw the very goals of redevelop- ment imperiled when redevelowent activities consisted of com- mercial projects projects as well. unaccoIapanied by inclusionary residential
The Laurel Tree project represents the second proposed use of half-a-million of Housing Fund dollars outside the projeat
RCV BY:KEROX TELECOPIER 7tUk3 ; 6-28-94 5: 17PM ; 619 722 054’.-- -9 7202037: # 4 .
r FROM : Legal Aid Society - Oceanside TEL: 619 722 0549 JUN. 28.1994 5:13 PM P 4 - . ,
Claude A. Lewis June 28, %N4 3 Page
area. The first was Aviara’s project, The Villas.
Lastly, the citation to the Health 6 Safety Code referenced in Paragraph 4 of Proposed Resolution No. 241 is incorrect. Health & Safety Code S 33334.6(a) does not apply to CarXebad. That section applies only to project areaL) for which redeve- lopment plane were adopted belot January 1, 1977. Section 33334.6(b). Inatead, S 33334,2(g) applies. Subdivision (9) states “The agency may only we theee funds outeide the project area upon a rwolution of the agency and the legis- lative body that the use will be of benefit to the project”.
Legal Aid Society urges the Agency to apportion more Boueing Fund dollars and accord greater priority to affordable housing pro-jecte within the Village Redevelopment Project Area.
Sincerely, LEGAL AID SOCLETY OF’SAN DIEGO, INC.
CATHJZRINE A. RODMAN Attorney at Law CAR/b
cm City Council Carlsbad Rouging L Redevelopment Commission Even E. Becker, Housing L Redevelopment Director Glen W. Wasserman of Kane, Ijaumer, & Berkman