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HomeMy WebLinkAbout1998-11-19; Housing Commission; MinutesMinutes of HOUSING COMMISSION Time of Meeting: 6:OO P.M. Date of Meeting: NOVEMBER 19,1998 Place of Meeting: CITY COUNCIL CHAMBERS CALL TO ORDER: Chairperson Wellman called the Special Meeting to order at 6:07 p.m. PLEDGE OF ALLEGIANCE: Commissioner Walker led the pledge of allegiance. ROLL CALL: Present: Chairperson Wellman, Commissioners Calverley, Escobedo, Noble, Rose, and Walker Absent: Commissioners Latas and Scarpelli Staff Present: Debbie Fountain, Housing and Redevelopment Director Craig Ruiz, Management Analyst APPROVAL OF MINUTES: ACTION: Motion by Commissioner Rose, and duly seconded, to approve the Minutes of the Regular Meeting of September 28, 1998, as submitted. Escobedo, Noble, Rose, Walker, Wellman VOTE: 5-0-1 AYES: NOES: None ABSTAIN: Calverley COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA: There were no comments from the audience. NEW BUSINESS: 1. CT 97- 15 - WESTERN PACIFIC HOUSING FOR LAMCO HOUSING, INC. - APPLICATION TO PURCHASE 10.95 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT FOR THE LOHF PROPERTY. Craig Ruiz reviewed the background of the request and stated that the applicant, Western Pacific Housing, is currently processing a tentative map that will allow for the development of 73 single family homes on approximately 36.5 acres, known as the LOHF project. The development is going to be a typical single-family home with 10,000 square feet parcels, located at the intersection of the future extension of Poinsettia Lane and El Camino Real. The development of 73 homes will require the developer to approve 10.95 units of affordable housing, affordable to lower income households as required by the City’s Inclusionary Housing Ordinance. Mr. Ruiz explained that due to the environmental constraints of the site, approximately 25% of the site would remain as open space. Mr. Ruiz stated that it is the applicant’s position that there are significant economic burdens on the site that would make it difficult to provide the affordable housing units on-site. The developer is therefore requesting to satisfy their inclusionary housing obligation by purchasing credits in the Villa Loma project. Mr. Ruiz explained the feasibility of an on-site proposal; the advantages and disadvantages of an off-site proposal; and the advancement of housing goals and strategies as stated in Staffs report. Mr. Ruiz said that this small project, with its environmental and topography constraints, would require a large amount of subsidy. HOUSING COMMISSION MINUTES November 19, 1998 Page 2 Mr. Ruiz mentioned the developer’s proforma, which was included in Staffs report. The subsidy amount that would be required, according to the proforma, for this project works out to roughly $65,000 per unit, with land kicked in by the developer valued at $300,000, reducing the net subsidy down to approximately $35,000 per unit. Mr. Ruiz stated that the selling of credits allows the City to recoup its investment in Villa Loma. The purpose of providing the extra units was to recoup the City’s costs from the projects that were not able to develop on-site, and then use that money to provide other housing opportunities in the City, which would further advance the City’s Housing Goals and Strategies. Based on the analysis of the criteria provided by the applicant, Staff has reviewed the request and feels that the findings have been made satisfactorily to allow the off-site alternative to the inclusionary housing requirement. Chairperson Wellman opened the item for discussion among the Commission members. There was no discussion. Chairperson Wellman invited the applicant to speak. Jack Henthorn, Jack Henthorn & Associates, 5375 Avenida Encinas, Suite D, Carlsbad, CA 92008, representing Western Pacific Housing, developer of the LOHF property, addressed the Commission. He explained that the developer has to deal with significant environmental issues and a large portion of this site has been set aside as open space. They have also been required to undertake a significant off-site burden relating to Poinsettia Lane and connecting that to El Camino Real to the east, he said. Mr. Henthorn stated that when they began to evaluate the affordable housing, they looked at on-site options with a 10-unit project; however, the feasibility criteria did not make any sense. They talked with some nonprofits to see if they could interest them in the project, but they could not; therefore, the developer is requesting to purchase credits in Villa Loma. There was discussion about Poinsettia Lane and Aviara Parkway. Mr. Henthorn explained that the City is trying to get the environmental agencies to allow them to begin construction with City funding to connect Palomar Airport Road down to Poinsettia. All of the plans are ready to go, but it is hung up with federal and state wildlife agencies. Poinsettia is currently under construction from where it ends presently to Black Rail Road. The piece in the middle could be as far off as I8 months to 3 years because it crosses a creek, he said. Commissioner Rose asked if Mr. Henthorn believes that Aviara Parkway may start in the next 3 months. Mr. Henthorn stated yes and added that the City wants to see the road built. The City and developer, whom Mr. Henthorn also represents, are now negotiating with the wildlife agencies to try to get approval to get started. If the City, Western Pacific, and the wildlife agencies could come to an agreement tomorrow, they would be moving dirt very quickly, he said. Commissioner Escobedo asked Mr. Henthorn why the nonprofits were not interested in helping. Mr. Henthorn stated that the principal reason is that the economics are not there. On a 10- unit project in this type of location, unless they have other things going on in the area, it does not make sense from a management standpoint for them to do a small deal. Mr. Henthorn mentioned the Mariano project, stating that 25 units seems to be the breaking point. Chairperson Wellman asked if they had contacted Bridge Development and MAAC. Mr. Henthorn stated that they had talked with Bridge in regard to this project, as well as the Mariano project, and they are not interested. He said that the MAAC people have their hands full and that they also contacted North County Housing. HOUSING COMMISSION MINUTES November 19, 1998 Page 3 Chairperson Wellman stated that in the past the City has contributed approximately $10,000 per unit, and asked if this was the figure they were giving to the nonprofits. Mr. Henthorn stated no that the nonprofits looked at the “package they had on the table.” Mr. Henthorn mentioned the quadrant analysis that was completed a few months back and presented to the Commission. The analysis included this project as one to buy into Villa Loma. The conclusion in that survey was that if the project was fewer than 25 units, there were sufficient units in Villa Loma to purchase credits. Mr. Henthorn added that most for-profit developers do not feel confident dealing with the affordable housing site production. Most of them do not manage apartments, and they specifically do not manage affordable housing projects. Scot Sandstrom, Director, Western Pacific Housing, 2385 Camino Vida Roble, Suite 107, Carlsbad, CA 92008, stated that he is present to support Mr. Henthorn and his presentation. He thanked the Commission for their time and Staff for their hard work. There being no other persons desiring to address the Commission on this topic, Chairperson Wellman declared the public testimony closed and opened the item for discussion among the Commission members. ACTION: Motion by Commissioner Noble, and duly seconded, to ADOPT Resolution No. 98-015, recommending that the City Council APPROVE a request by Western Pacific Housing, to purchase 10.95 Affordable Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the LOHF project under the City’s Inclusionary Housing Ordinance. Calverley, Escobedo, Noble, Rose, Walker, Wellman VOTE: 6-0-0 AYES: NOES: None ABSTAIN: None ANNOUNCEMENTS: Ms. Fountain stated there would be a Thursday, December 10, 1998 meeting. There was discussion regarding the possibility of a special meeting December 17. ADJOURNMENT: By proper motion, the Special meeting of November 19, 1998, was adjourned at 6:34 p.m. ectfully submitted, DEBBIE FOUNTAIN Housing and Redevelopment Director KATHY VAN PELT Minutes Clerk MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE APPROVED. The City of Caslsbad Housing & Redevelopment Department AREPORTTOTHE HOUSING GOMMXSSION XtemNo. 1 DATE: NOVEMBER 19,1998 SUBJECT: CT 97-15 - WESTERN PACIFIC HOUSING FOR LAMCO HOUSING, INC. - APPLICATION TO PURCHASE 10.95 AFFORDABLE HOUSING CREDITS IN THE VILLA LOMA HOUSING PROJECT I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 98-015, recommending that the City Council APPROVE a request by Western Pacific Housing, to purchase 10.95 Affordable Housing Credits in the Villa Loma housing project in order to satisfy the affordable housing obligation of the LOHF project under the City's Inclusionary Housing Ordinance. 11. BACKGROUND Western Pacific Housing, is currently processing an application for tentative map (CT 97- 15) to develop 73 single family homes on approximately 36.7 acres. Due to the environmental and topographical constraints of the site, approximately 25% of the site will remain as open space. The project consists of home sites with a minimum parcel size of 10,000 square feet and includes the construction of the eastern portion of Poinsettia Lane connecting to El Camino Real. The development of 73 homes will require the developer to provide 10.95 units of housing affordable to lower income households as required by the City's Inclusionary Housing Ordinance. It is the applicant's position that there are significant economic burdens on the site which would make it difficult to provide the affordable housing units on-site. Therefore, the applicant is requesting to purchase Affordable Housing Credits ("credits") in the Villa Loma project in lieu of on-site construction. The City's Inclusionary Housing Ordinance permits off-site satisfaction of an inclusionary requirement through participation in a Combined Inclusionary Housing Project ("Combined Project") if the City Council determines that it is in the public interest. Purchase of credits in the Villa Loma project constitutes participation in a Combined Project. There are 137 credits currently available for purchase. CT 97-15 - WESTERN PACIFIC HOUSING NOVEMBER 19,1998 PAGE 2 Policies Reparding Off-Site Proiects and Purchase of Affordable Housing Credits The City Council has adopted two policies which address off-site or Combined Projects and the sale of Affordable Housing Credits. Council Policy 57 was developed to establish the criteria to be utilized in order to make the necessary finding that off-site satisfaction of an inclusionary housing requirement, when proposed through a Combined Project, is in the public interest. Council Policy 58 was established to determine the price of credits and the mechanism to satisfy a developers obligation under the City's Inclusionary Housing Ordinance. 111. DISCUSSION The Council Policies require staff to evaluate the request for off-site satisfaction of the inclusionary housing obligation and the purchase of credits based upon three primary criteria. The criteria includes: 1) feasibility of on-site proposal; 2) relative advantageddisadvantages of an off-site proposal; and 3) the advancement of housing goals and strategies. The following is a summary of staffs analysis of the criteria for the project. Feasibilitv of On-site Proposal . The small scale of the developable area, the physical constraints caused by the large slope areas necessary for the construction of Poinsettia Lane and the on-site environmentally sensitive areas limit the ability to produce on site affordable units due to restrictions on project yield. Also, the small scale of the affordable housing project makes the development economically unfeasible due to the significant financial subsidy which would be required for the project. Further, the small scale of the affordable housing project makes it unlikely that the project will generate interest from available funding sources. Relative AdvantageslDisadvantages of an Off-site Proposal . The participation in the off-site project will allow the City to recover the costs associated with the development of excess affordable housing units. . The Villa Lorna project has locational advantages over the on-site project in terms of direct access to jobs, public transportation, schools, parks as well as other amenities and services due to the being located directly on a major thoroughfare. This project's connection to El Camino Real will not occur until approximately 60% of the project is built. CT 97-15 - WESTERN PACIFIC HOUSING NOVEMBER 19,1998 PAGE 3 Advancing Housiny Goals and Strategies . The recovery of the City's investment in the Villa Loma Project will provide for additional financial resources which are needed to further affordable housing development in the community. IV. RECOMMENDATION Based upon the analysis of the above criteria, the Affordable Housing Policy (staff) Team believes that adequate justification has been provided by the Developer to make the finding that the off-site satisfaction of the inclusionary housing requirement is in the public interest. Therefore, the staff team is recommending that the request to purchase credits be recommended for approval by the Housing Commission. V. EXHIBITS 1. Housing Commission Resolution No. 98-01 5 2. Applicant Request to Purchase Credits 3. Draft Affordable Housing Agreement Western pacific Housing Exhibit 2 IAN Dl800 DlVlllON" October 15, 1998 Ms. Deborah K. Fountain Housing and Redevelopment Director City of Carlsbad 2965 Roosevelt Street, Suite B Carlsbad, CA 92008-2389 Subject: Lohf Property - Request to Purchase Off-site Affordable Housing Credits Dear Ms. Fountain: This letter serves as a formal request by Western Pacific Housing to purchase off-site affordable housing credits in the existing Villa Loma development to satisfy the inclusionary housing obligations of the Lohf Property subdivision (CT 97-15). This request is in compliance with actions previously taken by the City Council: The City's lnclusionary Housing Ordinance (CMC Chapter 21.85) establishes certain requirements under which residential developers must provide housing that is affordable to lower-income households as a condition of project approval and permit issuance. The ordinance provides that "circumstances may arise in which the public interest would be served by allowing some or all of the inclusionary units associated with one project site to be produced at an alternative site or sites." The two inclusionary housing options that are available to a developer are that the developer shall either 1) enter into an agreement with the City to purchase affordable credits from Villa Loma; or 2) participate in an off-site combined inclusionary project within the southwest quadrant and as appropriate, in accordance with the requirements set forth in Chapter 21.85 of the Carlsbad Municipal Code and City Council Policies 57 and 58 dated September 12, 1985. A report has been reviewed by the Housing Commission that projected the inclusionary housing requirements of undeveloped property within the Southwest Quadrant of the City. The report examined whether projected development of the Quadrant could result in a demand for off-site credits exceeding the number of available credits in the Villa Lorna project. The analysis showed that there are sufficient excess units (credits) to satisfy the potential demand of the Quadrant. 1 2385 Carnino Vida Roble, Suite 107,CarIsbad, California 92009 760.929.1600 Fax 760.929.1601 In the case of the Lohf project, there are particular circumstances that warrant the provision of the inclusionary units off-site in combination with the existing Villa Loma Apartment project, pursuant to Council Policy 57 criteria. Significant feasibility issues affect the development of this project on-site. Contribution to the existing off-site project versus providing a small (IO unit) low-income apartment complex on-site will result in increased public benefit by returning funding currently tied up in the Villa Loma project, for use in other affordable housing activities. We understand this request will be evaluated by a staff Project Review Committee to determine compliance with the criteria defined in Policies 57 and 58. It is also understood that staff will then take the Committee’s recommendation to the Housing Commission and City Council. Please call if you need additional information or if we may be of any other assistance. Sincere I y , Enclosure cc: Mr. Jack Henthorn, Jack Henthorn & Associates Mr. Craig Ruiz, Housing and Redevelopment Department 2 2385 Camino Vida Roble, Suite 107,Carlsbad, California 92009 760.929.1600 Fax 760.929.1601 LOHF PROPERTY OFF-SITE AND COMBINED INCLUSIONARY HOUSING PROJECT ASSESSMENT WORKSHEET -- BACKGROUND The following background information is provided to assist you in your assessment. I. 2. 3. 4. 5. OwnerlApplicant Information: Owner/Applicant: Western Pacific Housing Attn: Mr. Scot Sandstrom 2385 Camino Vida Roble Suite 107 Carlsbad, CA 92009 760-929-1 600 Applicant’s Representative: Jack Henthorn & Associates Attn: Mr. Jack Henthorn 5375 Avenida Encinas Suite D Carlsbad, CA 92008 760-438-4090 Off-sitelcombined Project Name: VILLA LOMA APARTMENTS Description of Project with lnclusionary Housing Obligation: Lohf Property, CT 97-15, is a proposed 76-lot, 73-unit, single family development located on a 36.7-acre parcel with a 10.95-unit affordable housing obligation. On-site Affordable Housing Description: The Lohf Property Affordable Housing project would be a 10-unit multi-family, apartment project occupying three lots with units ranging from 1 to 3 bedrooms. The units would be offered in a maximum rent range which is affordable to households earning incomes of 80% of the Area Median Income. To achieve financial feasibility, the project would require a net subsidy of $352,971 (even assuming a fully constructed pad is provided by the developer and unit revenues are based on a 95% occupancy rate factor). Proposed Off-site Project Description: The Villa Loma project is a 344-unit apartment development in which all units are restricted and affordable to households with incomes not exceeding 60% of the San Diego County Median. Villa Loma was developed by La Terraza Associates, with Bridge Housing Corporation as the Managing General Partner. The complex contains 1, 2, 3 & 4 bedroom units. Villa Loma was financed with assistance from the City of Carlsbad and the Carlsbad Redevelopment Agency. The assistance was structured in such a way as to create affordable units which would be marketed exclusively by the City to “other developers” in order to satisfy an affordable housing obligation. The Villa Loma Apartment complex is a Combined Project according to the lnclusionary Housing Ordinance, and developers may participate in this as an “off-site” method of satisfying their affordable housing obligation. (This is also an approved site for the Grevstone Cove and Ocean Bluff Droiects.) 3 2385 Camino Vida Roble, Suite 107,Carlsbad, California 92009 760.929.1600 Fax 760.929.1601 Participation in Villa Loma Apartments by the applicant would be in the form of a purchase of Affordable Housing Credits (Credits) under terms established by City Council Policies Numbered 57 and 58. If the applicant is afforded the opportunity to purchase Credits, the Lohf Property tentative map would require the purchase of 10.95 Credits to satisfy its inclusionary housing requirement. 6. Description of On-site Project Constraints: Specific constraints exist which would affect an on-site affordable project’s feasibility. These include the uneconomical small scale of the affordable project and a significant product type difference between the affordable rental units and the proposed single-family market units that will be developed onsite. 4 2385 Carnino Vida Roble, Suite 107,Carlsbad. California 92009 760.929.1600 Fax 760.929.1601 LOHF PROJECT OFF-SITE AND COMBINED INCLUSIONARY HOUSING PROJECT ASSESSMENT WORKSHEET -- WORKSHEET I. Feasibilitv of the On-site Proposal a. Are there significant feasibilitv issues due to factors such as project size, site constraints, amount and availability of required subsidy, and competition from multiple projects that make an on-site option impractical? 0 The on-site affordable project is not of sufficient size to be a viable apartment project. Given the small size of the project and its restricted rental structure, on site management and maintenance will be difficult. The small scale of the affordable housing project also makes it unlikely that the project will generate interest from funding sources. The market units in this project would be required to absorb $4,100 per unit so that land value could be contributed by the developer. This figure would rise to over $8,900 per unit if the applicant is required to build the units on site and close the post land development gap of close to $353,000. Based on the estimated restricted rental prices of the affordable units the applicant will be facing an average subsidy requirement of approximately $35,300 per unit, beyond land contributions. This would result in each unit being subsidized with approximately $65,300. 0 b. Will an affordable housing product be difficult to intearate into the proposed market development because of significant price and product type disparity? Price disparities will be substantial between the low-income rental apartment units restricted at $695- $1,062 rent and the approved higher-end single-family detached homes which have an estimated base price range of $350,000 to $395,000. The integration of 10 affordable apartment units, sized at 725 to 1,100 sq. ft., into the single-family subdivision with homes of 2,800 to 3,300 square feet on 7,500 to 37,500 sq. ft. lots will result in major product type disparity on-site. The surrounding area will also be built-out with low density, single- family detached products consistent with the existing RLM land use designation and market demand. The on-site project would, therefore, also result in substantial product disparity with the surrounding region. c. Does the on-site development entity have the capacity to deliver the proposed affordable housing on-site? The applicant is not experienced in the development of affordable housing. Affordable housing developers have advised the applicant that it is unlikely that this size of project will generate interest from funding sources. 2. Relative AdvantaaeslDisadvantages of the Off-site Proposal. a. Does the off-site option offer greater feasibility and cost effectiveness than the on-site alternative, particularly regarding potential local public assistance? Villa Lorna is built and has proven its feasibility; no additional assistance is required. The applicant's participation in Villa Loma would permit the intended recovery of City investment provided to the project through utilizing "excess units". These funds could then be used to provide additional affordable housing. Conversely, the developer's on-site project would create the demand for additional new subsidy. 5 2385 Camino Vida Roble, Suite 107,Carlsbad. California 92009 760.929.1600 Fax 760.929.1601 The small size of the on-site project could result in additional future subsidy requests related to operating costs. b. Does the off-site proposal have location advantaaes over the on-site alternative, such as proximity to jobs, schools, transportation, services; less impact on other existing developments, etc.? The Villa Loma development is located within close vicinity of jobs (in the nearby business parks and shopping centers), public transportation, schools, parks, as well as, other amenities and services due to being located along the major thoroughfare, El Camino Real. Villa Loma is a self-contained affordable development in an area designated for higher density residential development such as condominiums and townhomes. The on-site proposal could be a source of land use conflicts that typically occur when higher density development is permitted adjacent to larger lot single family development. c. Does the off-site option offer a development entity with the capacitv to deliver the proposed project? 0 The Villa Loma project is an existing project, developed and managed by a highly experienced and specialized affordable housing developer. d. Does the off-site option satisfy Jnultiple developer obliuations that would be difficult to satisfy with multiple projects? Villa Loma project was originally established as a Combined Project, specifically to address this purpose. The proposed on-site project would be one of several projects in the southwest quadrant competing for scarce financial assistance. Villa Loma has already been financed and built and thus, would not be competing for subsidy financing. 3. Advancina Housing Goals and Strateav a. Does the off-site proposal advance andlor support City housing goals and policies expressed in the Housing Element, CHAS and lnclusionary Housing Ordinance? General Plan Housing Element and CHAS Goals: Villa Loma Apartment affordable project is targeted to the highest priority need identified, larger rental units for low income households. The recovery of the City's investment in the Villa Loma Project through the applicant's participation will provide for additional resources which are needed to further affordable housing development. Villa Loma provides a large quantity and diversity of affordable housing stock with its 344 units, including a generous supply of different size units to meet various housing needs of the community. lnclusionary Housing Ordinance Policies: Consistent with the City and public interests to use existing "excess" affordable units before supporting additional new construction. In conjunction with the combined Villa Loma project, the Lohf property will provide for 15% of the total units for affordable (lower income) residential units. The project also complies with the lnclusionav requirements as contained in the General Plan Housing Element. Growth Management Zone, Ord. No. NS-257 Guidelines: Villa Loma is coordinated with surrounding properties by providing direct access to a major Circulation Element Roadway, El Camino Real, as well as circulation and pedestrian access to public facilities. 6 2385 Camino Vida Roble, Suite 107,Carlsbad, California 92009 760.929.1600 Fax 760.929.1601 LOHF Revised 1011 5/98 COMPARATIVE PRO FORMA REVENUE ANALYSIS REVENUE RENT UNITS $695 3 $2,085 $888 6 $5,328 $1,062 1 $1,062 10 $8,475 1 BEDROOM 2 BEDROOM 3 BEDROOM 95% OCCUPANCY $8,051 OPERATING COSTS @ 30% ($2,415) NET OPERATING INCOME $5,636 DEBT SERVICE INCOME (1.2) $4,697 Note: The remainder unit obligation of .95 will be met by purchase of offsite credits in the Villa Lorna project. $534,916 INCOME SUPPORTED DEBT LAND DEVELOPMENT COSTS $300,000 $1 50,000 $195,000 $50,000 $695,000 $45,000 LAND (3 lots) ON SITE IMPS (3 lots) PUBLIC FEES (10 dub) DES I G N/CONS U LTANTS IMPROVED SITE COST (subtotal) LAND CARRY 18M0 $740,000 LAND DEVELOPMENT COST UNIT CONSTRUCTION COSTS 1 BR 2 BR 3BR 2175 5100 1100 8375 $97,875 $229,500 $49,500 $376,875 $29,313 $27,800 $1 3,900 UNIT SIZE SQUARE FEET (project) STRUCTURE COST $45.00 ON SITE INDIRECTS 10% STRUCT. OVERHEAD .04 MARKETING .02 $447,888 $447,888 CONSTRUCTION COSTS $1 0,698 $22,394 $33,093 $33,093 LOAN FEES .02 CONST FINANCING SUBTOTAL FINANCING $1 ,i 87,888 $1,187,888 PROJECT COST $652,971 $652,971 GAP $300,000 Developer land contribution $352,971 NET GAP Page 1 LOHF COMPARATIVE PRO FORMA PER UNIT NET GAP PER UNIT GROSS SUBSIDY Revised 1011 5/98 $35,297 $65,297 Page 2 RECORDING REQUESTED BY: City of Carlsbad WHEN RECORDED MAIL TO: City of Carlsbad City Clerk's Office Ann: City Clerk 1200 Carlsbad Village Drive Carlsbad, California 92008 (Space above for Recorder's UJe) AFFORDABLE HOUSING AGREEMENT THIS AFFORDABLE HOUSJNG AGREEMENT ("Agreement") is entered into this 19th day of November, 1998, by and between the CITY OF CARLSBAD, a municipal corporation (hereinafter referred to as the "City"), and Western Pacific Housing for LAMCO Housing Inc., (hereinafter referred to as the "Developer"), is made with reference to the following:, RECITALS A. Developer is the owner of certain real property in the City of Carlsbad, County of San Diego, State of California, described in "Attachment A", which is attached hereto and incorporated herein by this reference, and which is the subject of a Tentative Map (CT 97-15), which provides conditional approval of the construction of 73 single family dwelling units ("Project"). states that this Affordable Housing Agreement shall be entered into between the City and the Developer as a means of satisfying the Developers' affordable housing obligation ("Affordable Housing Obligation"), as such is defined under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. provides that the Affordable Housing Obligation of ten and ninety-five one hundredths (10.95) units will be satisfied by applying the requirements set forth in this Agreement. B. Condition No. of Planning Commission Resolution No. NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the mutual covenants contained herein, the parties agree as follows: 1. THE RECITALS ARE TRUE AND CORRECT. 2. SATISFACTION OF AFFORDABLE HOUSING REOUIREMENTS THROUGH THE PAYMENT OF AFFORDABLE HOUSING CREDITS. (a) Performance under this Agreement satisfies the Developers' obligation for affordable housing under Chapter 2 1.85 of the Carlsbad Municipal Code as applied to the land covered by Carlsbad Tract No. 97-15 by reason of the approvals of the Tentative Map of CT 97-15, including and any other applicable Condition No. listed in Planning Commission Resolution No. approval. 1 (b) The Developer shall pay for ten and ninety-five one hundredths (10.95) Affordable Housing Credits as established by the City and as required by Condition No. - of Planning Commission Resolution NO. The fee shall be paid prior to the Developer receiving a building permit for the project. . 3. REMEDIES Failure by the Developer to perform in accordance with this Agreement will constitute failure to Planning Commission Resolution No. - . Such failure will allow the City to exercise any and all remedies available to it including but not limited to withholding the issuance of building permits for the lots shown on Carlsbad Tract No. 97-15. satisfy the requirements of Chapter 21.85 of the Carlsbad Municipal Code and Condition No. - of 4. HOLD HARMLESS Developer will indemnity and hold harmless (without limit as to amount) City and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as "Indemnitees"), and any of them, from and against all loss, all risk of loss and all damage (including expense) sustained or incurred because of or by reason of any and all claims, demands suits, actions, obtained, allegedly caused by, arising out of or retaining in any'manner to Developers' actions or defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. Developer shall obtain, at its expense, comprehensive general liability insurance for development of the (% 1,000,000) purchased by the Developer from an insurance company duly licensed to engage in the business of issuing such insurance in the State of California, with a current Best's Key Rating of not less than A-V, such insurance to be evidenced by an endorsement which so provides and delivered to the City Clerk prior to the issuance of any building permit for the Project. 5. NOTICES All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registered or certified mail, return receipt requested to the party to receive such notice at the address set forth below: TO THE CITY: City of Carlsbad Housing and Redevelopment Department Attn: Housing & Redevelopment Director 2965 Roosevelt Street, Suite B Carlsbad, California 92008-23 89 TO THE DEVELOPER: Western Pacific Housing for LAMCO, Housing Inc. 23 85 Camino Vida Roble, Suite 107 Carlsbad, California 92009 Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above. 2 6. ENTIRE AGREEMENT This Agreement constitutes the entire greement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. 7. DURATION OF AGREEMENT This Agreement shall terminate and become null and void upon the payment of the Affordable Housing Credits, or the repeal, termination, or modification of any applicable ordinance which act would render the Affordable Housing Obligation unnecessary or unenforceable. 8. SUCCESSORS This Agreement shall benefit and bind the Developer and any successive owners of Affordable Housing Lots. 9. SEVERABI ILITY In the event any provision contained in this Agreement is to be held invalid, void or unenforceable by any court of competent jurisdiction, the remaining provisions of this Agreement shall nevertheless, be and remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed as of the day and year first above written. DEVELOPER Western Pacific Housing for LAMCO Housing, Inc. City of Carlsbad, a municipal corporation By: By: (Name) MARTIN OWNYAK Community Development Director By: (Tit le) APPROVED AS TO FORM: RONALD R. BALL CITY ATTORNEY 3 ATTACHMENT A LEGAL DESCRIPTION OF SUBJECT PROPERTY PARCEL A: PARCEL 2 IN COUNTY OF SAN DIEGO, STATE OF CALIFORNIA AS SHOWN ON PARCEL MAP NO. 2244, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JANUARY 10, 1974. PARCEL B: THE SOUTH HALF OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 12 SOUTH, RANGE 4 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF. TENTATIVE TRACT MAP LOHF,PROPERTY City Of Carlsbad, California ‘Z