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HomeMy WebLinkAbout1995-10-12; Housing Commission; Minutes-. Minutes of: HOUSING COMMISSION Time of Meeting: 6:OO P.M. Date of Meeting: October 12,1995 Place of Meeting: CITY COUNCIL CHAMBERS CALL TO ORDER: Chairman Avis, called the Regular Meeting to order at 6:07 p.m. PLEDGE OF ALLEGIANCE: The pledge of allegiance was led by Chairman Avis. ROLL CALL: Present: Chairman Avis, Commissioners Calverley, Escobedo, Noble, Rose, Sato, Scarpelli, and Schlehuber Absent: Commissioner Wellman Staff Present: Evan Becker, Housing and Redevelopment Director Reggie Harrison, Housing Program Manager Leilani Hines, 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: Motion by Commissioner Scarpelli, and duly seconded, to approve the Minutes of the Regular Meeting of September 12, 1995, as submitted. Escobedo, Noble, Rose, Sato, Scarpelli, Schlehuber VOTE: 6-0-2 AYES: NOES: None ABSTAIN: Avis, Calverley NEW BUSINESS: 1. LAUREL TREE APARTMENTS - GPA 95-01 ;ZC 95-01/LFMP 87-05(B)/SDP 95-01/HDP 95-01 - Request for approval of a recommendation of support to the City Council to approve an affordable housing project. Chairman Avis stated that he had a conflict of interest and could not participate on this item. He left the room at 6:ll p.m. Vice-chairman Calverley went on to conduct the meeting. Evan Becker, Housing and Redevelopment Director, reviewed the background of the request and stated that the Laurel Tree Apartments is a proposed affordable housing project to satisfy the affordable housing obligations of the Poinsettia Shores and Mariner's Point developments. The two developers will be contributing approximately $2.8 million in subsidy to the project. The City of Carlsbad has committed $500,000 to the project, contingent upon the project's receipt of entitlement approvals and other subsidy financing. Using an overhead projector, Mr. Becker reviewed the project characteristics, development team, site, affordability criteria, land use, project management, ongoing requirements of the City, and the risks and conditions of the project. 1 .. HOUSING COMMISSION October 12, 1995 PAGE 2 Vice-chairman Calverley opened the public testimony and issued the invitation to speak. Roger Cazares, 22 West 35th Street, Suite 100, National City, addressed the Commission and stated that he is the PresidenuCEO of the MAAC Project. The MAAC Project will be leasing and managing the project after it is completed. Sylvia Martinez, also of the MAAC Project, will be addressing various aspects of the project after Mr. Henthorn's presentation. Jack Henthorn, 5431 Avenida Encinas, Suite J, Carlsbad, addressed the Commission and showed slides of the site. He stated that there are 8,000 existing jobs within 1.5 miles of the project. He reviewed the project in detail discussing recreational amenities, public transportation, environmental issues, and the overall economic feasibility of the project. He stated that the Laurel Tree project will begin construction in June 1996. Sylvia Martinez, 1770 Fourth Avenue, San Diego, addressed the Commission and stated that she is the Project Manager for MAAC. She reviewed the history of MAAC which provides housing opportunities to families with incomes between $12,000 and $30,000. They support working families with children and provide on-site child care. She has contacted many of the employers in the area and there is a significant interest in the project because many local employees live outside Carlsbad and must commute to work. She stated that MAAC provides on-site management, a Head Start program, and an on-site Community Services Coordinator. Residents must be employed. Full-time college students are not allowed. MAAC estimates that 90% of their residents will have their own vehicles so the need for public transportation is minimal. Steve Kuptz, Catellas Development, 1262 Kettner Boulevard, San Diego, addressed the Commission and stated that he is the financial consultant to the MAAC Project. Mr. Kuptz reviewed the financial considerations of the proposed project and the highlights of the project since its inception. He stated that the City of Carlsbad committed the first $500,000 as a loan to get the project started. Then in 1994, Bank of America committed $2.6 million in construction and permanent financing. In February 1995, the Laurel Tree team approved the inclusionary housing agreements with Bramalea and Kaiza Poinsettia, which resulted in an additional $2.8 million of commitments. In June 1995, the Housing Commission approved those inclusionary housing agreements. Also, in June 1995, the Federal Home Loan Bank approved an allocation of $550,000 in additional funds. This was the only San Diego project to receive such an allocation. The application was particularly noted for the innovative financing structure involving Bramalea and Kaiza Poinsettia and the way $500,000 of local funds was leveraged into $2.8 million of private funding commitments. In September 1995, the City Council approved the inclusionary housing agreements and two weeks ago he filed the HOME application with the State of California for an additional $550,000 in project funding. Everything is now in place and the only items left are the land use approvals, which are required in order to file the tax credit application. He urged the Commission's approval tonight in order to meet the stringent time schedules needed to file the competitive tax credit application in December 1995. 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. Various aspects of the project were discussed by the Commission. In response to questions, members of staff and the development team gave the following responses: * The MAAC Project is a highly rated non-profit in the affordable housing business. If tax credits are not received, there would be no project. The City is not obligated if the tax credits are not received. *h HOUSING COMMISSION n October 12,1995 PAGE 3 Although there is no public transportation which serves the project, most residents will have their own vehicles. Residents will also be living close to their jobs. The MAAC Project is committed to making transportation available to those residents who don't have vehicles. They are also lobbying with NCTD to provide public transportation. Vans will be available 24 hours a day to provide transportation to residents without vehicles who may need to go grocery shopping or to the doctor; the vans hold 15 persons. Laundry facilities are located throughout the project. One bedroom units are not segregated from larger units because experience has shown that most seniors without children like to be integrated into the community. This project has rents based on 30% of a family's income. The Section 8 voucher program has a fixed payment standard. Staff is attempting to ensure that there is no double subsidy in this project because the rents in this project are already reduced. All tenants are carefully screened before a lease is signed. The leases are very strict and tenants are not allowed to double-up. If the tenant violates the lease requirements, they would be evicted. Developers are required to demonstrate that with the windows closed, the interior noise level meets 45 CNEL. There is no covered parking because it would significantly increase the development costs. Security for tenants can be maintained because there is only a single entrance into the project from A Street. There are also two managers on site at all times; the managers live in the project. Although this is a limited partnership, the California Equity Fund is very experienced in this type of project and they take a very active role. If the MAAC Project fails to perform satisfactorily, another non-profit organization would be brought in by California Equity to run the project. The project will pay a one time fee for Alga Road improvements of $3,000 per unit. Several Commissioners were concerned that the resolution drafted by staff did not state that the City of Carlsbad's financial commitment was conditional and is contingent upon the project receiving all entitlement approvals and other subsidy financing. ACTION: Motion was made by Commissioner Scarpelli, and duly seconded, to approve Housing Commission Resolution No. 95-01 0 recommending approval of Laurel Tree Apartments as recommended by the Planning Commission and as proposed by the developer, as an affordable housing project consisting of 138 residential apartments restricted and affordable to low and very-low income households, with one change, Le. that the word "conditional" be added on page 1, line 21, and on page 2, line 5, to indicate that the City's contribution of $500,000 is a conditional commitment, contingent upon the project receiving all entitlement approvals and other subsidy financing. Calverley, Escobedo, Noble, Rose, Sato, Scarpelli, Schlehuber VOTE: 7-0 AYES: NOES: None ABSTAIN: None Chairman Avis returned to the meeting at 755 p.m. HOUSING COMMISSION October 12,1995 PAGE 4 ANNOUNCEMENTS: Chairman Avis reported that Ex-officio Commissioner Noble had been reappointed by the Planning Commission to serve on the Housing Commission for another year. Evan Becker, Housing and Redevelopment Director, announced that there would be a workshop on October 25, 1995 featuring experts in the affordable housing field. The Commission was polled about attendance and it appears that a majority of the Commissioners may attend the workshop. Chairman Avis stated that at the November meeting there will be an election of new officers for 1996. ADJOURNMENT: By proper motion, the Regular meeting of October 12, 1995 was adjourned at 8:07 p.m. Respectfully submitted, L- EVAN BECKER Housing and Redevelopment Director BETTYBUCKNER Minutes Clerk