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Home My WebLink About1995-03-09; Housing Commission; MinutesMinutes of: HOUSING COMMISSION Time of Meeting: 6:OO P.M. Date of Meeting: Place of Meeting: CALL TO ORDER: Vice-chairman Calverley called the Regular Meeting to order at 6:02 p.m. PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Commissioner Scarpelli. ROLL CALL: Present: March 9, 1995 CITY COUNCIL CHAMBERS Vice-chairman Calverley, Commissioners Escobedo, Noble, Rose, Rombotis, Sato, Scarpelli, and Wellman Absent: Chairman Avis Staff Present: Evan Becker, Housing and Redevelopment Director Reggie Harrison, Housing Program Manager Debbie Fountain, Senior Management Analyst Leilani Hines, Management Analyst Clint Phillips, Senior Management Analyst COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no requests to address the Commission. APPROVAL OF MINUTES: ACTION: VOTE: AYES: NOES: ABSTAIN: NEW BUSINESS: Motion by Commissioner Scarpelli, and duly seconded, to approve the Minutes of the Regular Meeting of January 12, 1995, as submitted. Calverley, Rose, Rombotis, Sato, Scarpelli, Wellman None Escobedo, Noble 6-0-2 Vice-chairman Calverley stated that Chairman Avis is representing one of the applicants on the agenda tonight and would be seated in the audience. 1. AFFORDABLE HOUSING MITIGATION AGREEMENT - Request for approval of a recommendation to approve an Affordable Housing Mitigation Agreement between the City of Carlsbad and Bramalea California, Inc. Evan Becker, Housing and Redevelopment Director, stated that Agenda items #1 and #2 are interrelated and his report would be discussing both items together. He explained that Bramalea is required to provide 45 affordable units for their Mariner's Point project and Kaiza Poinsettia is required to provide 90 affordable units for their Poinsettia Shores project. Bramalea is calculated on a straight 15% while Kaiza Poinsettia has requested a density bonus, so a 20% calculation is HOUSING COMMISSION March 9, 1995 PAGE 2 required. Bramalea has an approved site plan which has been approved by the City Council. Kaiza Poinsettia's site plan has been approved by the Planning Commission but has not yet been seen by the Housing Commission. Mr. Becker stated the lnclusionary Housing Ordinance provides an option wherein some or all of the inclusionary units for one development may be produced and operated at an alternative site(s). Bramalea is proposing to shift to the Combined Project option by participating in a project known as Laurel Tree Apartments, located off Laurel Tree Lane and Palomar Airport Road. The off-site option of a combined project is a sensible choice for the City and developers and presents advantages in its location and feasibility, whereas an on-site project has certain disadvantages. He stated that affordable housing agreements establish the way in which developers will be satisfying their affordable housing requirements. Project approvals go through a different process than the affordable housing agreement, but both parts meet up when they go to the City Council for approval. If the Laurel Tree Apartments is not successful in obtaining its City approvals or necessary financing, the required purchase of credits in the La Terraza Affordable Housing Project shall be triggered as the method by which the affordable housing obligation will be satisfied by both Bramalea and Kaiza Poinsettia. Commissioner Escobedo was under the impression that affordable housing would be spread throughout the City rather than all together at one location. She does not like the concentration of affordable units at one site. Commissioner Wellman stated that she has been told over and over that the people who will occupy the affordable housing will not be the poorest of the poor. She thinks more consideration should be given to land if Laurel Tree fails. She doesn't like having La Terraza as a fall back position. Vice-chairman Calverley opened the public testimony and issued the invitation to speak. Doug Avis, 2300 Alga Road, Carlsbad, Project Director for Kaiza Poinsettia, addressed the Commission and explained the various methods which developers have at their disposal to satisfy the inclusionary housing requirement. He feels this joint project is the best alternative for the City and the developers. Furthermore, it is large enough to get tax credits. Small projects don't have a chance to get tax credits. Without tax credits, affordable housing becomes a very costly issue. Dorian Johnson, Vice President, Bramalea Planning, addressed the Commission and discussed the differences between this project and the La Terraza project. He stated that the Laurel Tree project is more economically feasible and he feels the final product will be superior to La Terraza. Commissioner Wellman is very concerned that there are still a number of things which could jeopardize this project (Laurel Tree) and cause it to not be built. She feels it is like a house of cards--if it fails, it creates a domino effect on other projects. She would like the developers to be more creative in fulfilling their inclusionary housing requirement. Mr. Johnson (Bramalea) replied that he sees no reason why Laurel Tree will not occur as planned. Sylvia Martinez, MAAC Project, addressed the Commission and stated that the Laurel Tree project will be more than just housing. The MAAC Project is a co-partner in this venture and will be the property managers of Laurel Tree. She noted that all MAAC projects provide special amenities such as child care and learning centers, where people can hone their job skills and become productive citizens. These amenities are not found in a typical apartment project. In order for the federal government to even consider funding for an affordable housing project, it requires significant support at the local level. The developer funds provide the needed local support. It shows that the City is serious about providing affordable housing. She noted that tax credits must be applied for in July but notification does not come HOUSING COMMISSION March 9, 1995 PAGE 3 until September. The tax credits are a big part of this project because they assist the developer in providing a quality project. She feels that when Laurel Tree is completed, it will make the City very proud. There being no other persons desiring to address the Commission on this topic, Vice Chairman Calverley declared the public testimony closed and opened the item for discussion among the Commission members. The Commissioners discussed the project in detail and staff responded to various questions regarding the agreements. In the end, Commissioner Wellman stated that she could not support the project because she is opposed to having La Terraza as a fall back position. She does not feel it is in the best interest of the citizens. She would like the land in Kaiza and Bramalea Master Plans to remain available for affordable housing and that units should be built on-site if the Laurel Tree project is not successful. ACTION: Motion was made by Commissioner Scarpelli, and duly seconded, to adopt Resolution No. 95-002 recommending approval of an Affordable Housing Mitigation Agreement between the City of Carlsbad and Bramalea California, Inc. which pertains to the requirement that Bramalea provide affordable housing in connection with its development commonly known as Mariner's Point (CT 91 -12) in the southwest quadrant of the City.. Calverley, Escobedo, Noble, Rose, Rombotis, Scarpelli VOTE: 6-2 AYES: NOES: Sato, Wellman ABSTAIN: None 2. AFFORDABLE HOUSING MITIGATION AGREEMENT - Request for approval of a recommendation to approve an Affordable Housing Mitigation Agreement between the City of Carlsbad and Kaiza Poinsettia Corporation. Since the Affordable Housing Mitigation Agreement for Kaiza Poinsettia and Bramalea are interrelated, the two staff reports and public testimony periods were combined. ACTION: Motion was made by Commissioner Rombotis, and duly seconded, to adopt Resolution No. 95-003 recommending approval of an Affordable Housing Mitigation Agreement between the City of Carlsbad and Kaiza Poinsettia Corporation which pertains to the requirement that Kaiza provide affordable housing in connection with its development commonly known as Poinsettia shores (MP-175D) in the southwest quadrant of the City. Calverley, Escobedo, Noble, Rose, Rombotis, Scarpelli VOTE: 6-2 AYES: NOES: Sato, Wellman ABSTAIN: None RECESS The Housing Commission recessed at 7:47 p.m. and reconvened at 754 p.m. INFORMATIONAL ITEMS 3. INCLUSIONARY HOUSING CALCULATION Evan Becker, Housing and Redevelopment Director, used an overhead chart and explained the calculation of the 15% inclusionary housing requirement. He showed examples of projects with and without density bonuses. A discussion period followed regarding the feasibility of interspersing low income units throughout a development. Commissioner Wellman is very opposed to the philosophy of having projects HOUSING COMMISSION March 9, 1995 PAGE 4 that are totally low income. Mr. Becker replied that low income housing is predominately rentals and it is not feasible to scatter low income rental units throughout a "for sale" market rate project. 4. FOUR BEDROOM HOUSING NEED Leilani Hines, Management Analyst, reviewed the results of the 1990 U. S. Census which shows there is a small surplus of three bedroom homes but a deficiency of four bedroom units. In most developments, the financing programs dictate the bedroom mix percentages. For instance, the requirement for three bedroom units is normally in the neighborhood of 10%. There is a need for affordable three and four bedroom units in Carlsbad. The construction of large family units is a priority within the City and is pursued by staff on an on-going basis. Ms. Hines stated that the 1990 Census results are well documented in the CHAS. 5. ASSESSMENT OF HOMELESS PROBLEMS AND NEEDS Leilani Hines, Management Analyst, reported that the 1990 U. S. Census identified a range of 941 - 1,213 homeless persons living in Carlsbad. There are 17 migrant camps in and around Carlsbad. Consequently, the majority of homeless fall into the Rural Homeless category, commonly used for migrant farm workers. Legal/illegal status was not considered when headcounts were taken in migrant camps. The census states that only 5% of the homeless in Carlsbad are classified as Urban Homeless. Carlsbad encourages non-profit agencies to provide shelter for the homeless. In 1994-95, the City spent approximately $92,500 to assist non-profit agencies in this effort. Non-profit agencies provide services for a variety of causes, including youth run-aways, mental illness, alcoholism, and those fleeing domestic violence. The only city in North County that provides temporary shelter for the homeless during inclement weather is Vista. Other cities are trying to work together on a regional approach to this issue. ADJOURNMENT: By proper motion, the Regular meeting of March 9, 1995 was adjourned at 8:27 p.m. Respectfully submitted, EVAN BECKER Housing and Redevelopment Director BETTY BUCKNER Minutes Clerk