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HomeMy WebLinkAbout2004-03-11; Housing Commission; MinutesMinutes of: Time of Meeting: Date of Meeting: Place of Meeting: HOUSING COMMISSION 6:OO P.M. March 1 1,2004 CITY COUNCIL CHAMBERS CALL TO ORDER Chairperson Scarpelli called the Meeting to order at 6:OO p.m PLEDGE OF ALLEGIANCE Commissioner Smith led the Pledge of Allegiance. ROLL CALL Present: Commissioners: Renee Huston Dons Ritchie Edward Scarpelli Margaret Schraml Bobbie Smith Staff Present: Housing and Redevelopment Director: Debbie Fountain Housing Program Manager: Bobbi Nunn Management Analyst: Craig Ruiz APPROVAL OF MINUTES Minutes of September 11, 2003, were approved with a change to be made on Page 3, Paragraph 5; “trustee” is to be changed to “trust deed.” VOTE: 4-0 AYES: 4-0 NOES: None ABSTAIN: Huston (absent September 11,2003) COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA There was no audience in attendance, who wished to speak at this time. NEW BUSINESS Chairperson Scarpelli stated there will be a presentation of the Annual Housing Production Report for the year 2002-2003. There is a staff recommendation to approve, and Scott Donnell is going to present. Mr. Scott Donnell, an Associate Planner in the Planning Department, working in Advanced Planning monitors the City’s growth and development. One of his duties is to keep up with housing production. He is bringing this report to the Commission. He will also be involved in the Housing Element update this coming year. This is the report for the previous fiscal year from July 1,2002 through June 30,2003. It focuses on the production of new housing in the City. This report is done on an annual basis to comply with State law. California State law requires all jurisdiction cities or counties to prepare a report each year to bring to their councils that summarizes the number of new homes that have been built, the affordability of those homes, and also how the city or county is malung progress towards its regional shared housing needs assessment. Regional shared needs assessment is an estimate of the number of homes needed to accommodate growth for a region. Every five years our local council of government, SANDAG, and the State determine the number of homes necessary to accommodate growth in the region. That regional figure is then broken down by jurisdiction. Carlsbad has an estimate of the number of homes needed, as well as Oceanside and Encinitas, etc. These numbers are produced on a five-year housing cycle. The HOUSING COMMISSION MINUTES MARCH 11, 2004 PAGE 2 of 14 current housing cycle we are in began in 1999 and was supposed to have ended ths June 30", but has been extended a year. The estimate of growth is figured for the four income groups: very low, low, moderate, and other or upper. The next slide breaks down the number of homes estimated to be needed for each income group. It is estimated that more homes are needed for families with very low incomes then with any other income. The total number is 6,214. That is the estimate of the number of homes Carlsbad needs to produce from 1999 to 2004 to accommodate the growth. We are not penalized if we do not produce this number of homes or if we do not provide the homes estimated for each category. Cities do have to show they have adequate land to accommodate all of the homes. Last year was a slow year in terms of the production of new homes built compared to previous years. Carlsbad produced or developers built 725 homes in the previous fiscal year. Most of those were single-family detached homes, followed by condominiums, and finally apartments. Also built, were 17 second-dwelling units. Nine percent of the 725 homes were considered affordable to low-income families. The 725 units built the previous fiscal year were half of what was built in the fiscal year prior to that. Chairperson Scarpelli said to Mr. Donnell that it is the Commission's understanding we should be at 15% on the low-income units to the number of units built. Why are we at 9%? Mr. Donnell asked if he was referring to the inclusionary housing as 15% of all housing produced? Chairperson Scarpelli said correct. Mr. Donnell replied that he does not have the complete answer for that question, but part of the answer is that projects are approved with 15% inclusionary don't get built necessarily in a certain year. They are built over a period of time, and that may contribute to why some years are lower then other years. Later in the presentation we will look at the housing production over the previous four years, we are at about 11% of what we built in total. That is to say, very low and low-income housing is about 11% of total production. Chairperson Scarpelli explained that the reason the Commission is raising this question is because the roll of this Commission is to see to it the affordable housing requirements are being maintained, which is at 15% inclusionary, but it should be 15% of total housing. What can we do within the calendar year 2002-2003 with 725 units being built, that we maintain an aggregate of 15% of that. Again, that is affordable housing that this Commission is responsible to see is happening. Debbie Fountain, Director of Housing and Redevelopment, added that part of the problem is that in all developments we require 15% to be affordable, but this is done on an annual basis. Many affordable projects take anywhere from 18 months or longer once they get into the construction period. Part of the problem is that we are requiring it in all of the developments, but it is a timing issue as to when this report is prepared and when those units come on line. If units are constructed after the fiscal year, they are not counted in this report. It is a July 1 to June 30" reporting period so it is not counted until actual construction; not just starting construction, but actually they completed construction during that period. The projects are getting approved, but they aren't always built neatly within that year period. Commissioner Huston asked what is the threshold when the inclusionary kicks in. Is it 30 units? Ms. Fountain answered it is seven units or more and they have to build affordable housing. Commissioner Huston asked in Carlsbad do people build six units just to avoid the inclusionary? Ms. Fountain said no that does not happen often. Chairperson Scarpelli asked Mr. Donne11 to repeat that 11%. What period or aggregate is that for? HOUSING COMMISSION MINUTES MARCH 1 1 , 2004 PAGE 3 of 14 Mr. Donnell answered from July 1, 1999 through June 30,2003. The slide will be presented. Chairperson Scarpelli said okay. Mr. Donnell continued, looking at the housing produced the past fiscal year by income group in the City in fiscal year 2002-2003, there was not any production of units affordable to very low income families, but we did produce 69 units affordable to low income families. Moderate income housing, the developers did not produce any moderate- income housing. Most of the housing in the City would be considered affordable to other or upper income families. For example, for a family of four an upper income family would be one earning more then $72,100. For a family of four to be considered very low income in 2003, they would not earn an income of more then $31,900. Mr. Donnell presented a chart showing the break down of production over the past fiscal year. - The building of low-income housing came via the Sunnycreek Apartment Project; 50 apartments built affordable and restricted to low-income families. In addition, there were 17 second-dwelling units built. These are considered to be affordable to low-income families. Most of the affordable housing for low income was built due to inclusionary requirements and built with assistance from the City in terms of financial assistance. To determine the prices and the affordability of housing in which the City participates financially like Sunnycreek is easier. For market rate housing, however, we have to send out surveys to developers to find out what the sales prices were, review the internet, go to the assessors website to determine what sales prices were to produce these next figures and these figures reflect the prices of the new housing built the previous fiscal year. Overall, the median price for all for-sale market rate housing was about $574,000, that is a 25% increase, $1 16,000 increase over the previous fiscal year. The figures are similar when we break down that overall figure by single-family detached homes, median price, $650,000, and finally condominiums that experienced the largest price increase up to $458,000, that was the median price reported by developers and through research of the assessors website for condominiums in Carlsbad built the previous fiscal year. Looking at production over the entire four years since July 1, 1999, the City has completed almost 6,200 homes. Our regional share estimate for the number of homes necessary to accommodate growth was just over that, 6,214. About 720 of the almost 6,200 homes were apartments, 1,220 were condominiums, and almost 4,000 were single- family detached homes. Of those 63% were apartments, and 25% or 178 of the units were considered affordable to very low-income families. If we look at affordability of the production of those homes, 178 units were built affordable to very low-income families, 492 to low-income families, for moderate-income developers produced 21 1 units, and for other income 5,288 units were built. Of those almost 6,200 homes, 670 were lower income units. Chairperson Scarpelli asked if Mr. Donnell was not including moderate and lower income households? Mr. Donnell said he is not including moderate. Moderate is its own category. For lower, he is just including low and very low. Chairperson Scarpelli asked when we say affordable housing, don’t we include moderate in our IS%? Mr. Donnell said no. Chairperson Scarpelli asked if it is just low and very low? Again, he raised the question to Ms. Fountain that this is a four-year period and it is 11%. Is there anythmg we can do to get us closer to the 15%? Ms. Fountain answered it is still a ti+ng issue because it is hard to get a project approved, financed and constructed in these neat little time periods. Projects take anywhere from three to four years to actually get through the approval HOUSING COMMISSION MlNUTES MARCH 11 , 2004 PAGE 4 of 14 process, get their financing through tax credit applications and actually get it physically constructed. When put into periods of time, there will be a lag because there is a lag in the whole process. Unless we can figure out a way to make all of that move faster, the 15% is still going to lag because there are market rate units getting constructed as part of the whole process because the low income housing is built concurrently with the market rate housing. Sometimes you will have market rate housing-still out ahead of the affordable. Though it is improving, there is always going to be some type of lag when you try to neatly fit it into a four-year period or a five-year period because it is the actual construction of the units that are counted. Chairperson Scarpelli commented that in this particular slide, aren’t we talking about completed units? In the total number, are we talking completed units? Ms. Fountain answered yes. Chairperson Scarpelli pointed out they are not being processed in the same time. Is there any way we can get the affordable housing units built ahead of the other? Ms. Fountain said the City tries to have the affordable built ahead of the market rate, but they are allowed to build one-third of the market rate units before they have to start the affordable. Then they get the next release of market rate, and then they get their final release of market rate once the affordable house has received a certificate of occupancy. In some cases we have had the affordable built right up front, but typically the developer needs to start selling some of the market rate units to be able to have the money to assist in building the affordable because of the expense. They have already had to put in roads and other infrastructure so we try to do it up front, but with the reality that they need to start making some money on the market rate to be able to finance all of these infrastructure requirements that we have. The only other way we could do this would be to require the affordable to go in first, but we just haven’t thought that was a reasonable position to take just to try to help the developer to keep it going concurrently. Chairperson Scarpelli asked if Ms. Fountain was saying that staff is doing all that it can, being reasonable in trying to get as much built up front as we can. Ms. Fountain answered, right. Chairperson Scarpelli commented they are making a conscious effort. Ms. Fountain said staff tries to move them along as quickly as possible. Some of the unknowns are really the fmancing of the projects because if they go after tax credits to help finance the affordable, it may take two or three cycles to actually get the tax credits or get other financing they are askmg for through the State. Every project tries to move as quickly as it can, and each project is going to be unique in what its individual situation is. A lot of it will depend on when the market rate developer decides to move forward on their projects. We have been fortunate in some cases where we have had it up front, and those are the units you are going to see coming on line. If it is done concurrently and done with one-thwd, one-third, one-third split, it is going to be more time consuming. Chairperson Scarpelli asked if anyone had any further questions on this issue? Commissioner Huston asked if he was going to be talking a little bit more about second-dwelling units or not? The question is: In regards to second-dwelling units, when first coming to th~s Commission it was something that I raised because a lot of the large luxury homes were building maid’s quarters or mother-in-law quarters, did that go into the count? Mr. Donne11 said yes it is in the count. HOUSING COMMISSION MINUTES MARCH 11,2004 PAGE 5 of 14 Commissioner Huston commented that at that time, it was a gray area because it could not be substantiated. So those hurdles have been crossed? Mr. Donnell said he is not sure of the answer to that. Second-dwelling units are seen as affordable housing opportunities, and when they are built, the homeowners are required to sign an affidavit stating if they do rent them, they will be rented to people of low or very low income. I think beyond that, simply because of their small size, they are seen as something affordable to a college student or someone who doesn’t have a high income. Commissioner Huston commented there were 17-second dwelling units and that appears to be a big part of that 9%. Mr. Donnell said out of the total 69 that were built, Commissioner Huston is correct, it is a good percentage. Commissioner Ritchie asked Mr. Donnell if he said this five-year cycle has been extended a year to a six year cycle? Mr. Donnell said yes, that is correct, through June 30, 2005. Commissioner Ritchie asked if it would throw the statistics off! Mr. Donnell answered that it hasn’t been announced yet, whether they will extend the number of homes expected to be built or if we will just keep the same numbers. We don’t have the answer. Commissioner Ritchie said her second question is, Mr. Donnell said we have to assure the State we have land available for what we are required to build. How do you do that assessment? Mr. Donnell replied that the 6,200 units estimated to be needed here in Carlsbad is done through a vacant land survey, analyzing the land that is available for housing and the density that is allowed on those lands. It is simply adding up and seeing how many units can be built on the land remaining. That will be more of an issue with this next housing element, because of course, Carlsbad is building out. The City still believes there is adequate land. Commissioner Huston asked about the two apartments that are on here. Were those the two apartments that we talked about a couple of meetings ago where we took it out of that Jefferson and two units off Monroe or something like that? Mr. Donnell answered that he cannot disclose the location because we try to keep it more generic, but they were not those. These were just two market rate units, and the rent reported by the developer simply met the low-income requirements. It was in the village area. Mr. Donnell continued with his presentation. Production for the past fiscal year compares to previous fiscal years. Carlsbad reached its peak around 1999 and 2000 and has been declining since then. It appears that maybe this fiscal year’s numbers might match the previous fiscal years in terms of overall production. The numbers are expected to go up due to the different projects that have been approved in town. Following are different projects that you will see or are seeing under construction today. The first is an apartment project, 140 units, known as the Summit. This is a project that is east of El Camino Real in the vicinity of Plaza Camino Real. Along with a 140 units, 29 of those units are considered to be affordable to very low-income households. The next project is Phase Two of Calavera Hills. Th~s is under construction today. In total it consists of 730 units, slightly more then 100 of those units are affordable. In addition ,there is a large project, the Second Phase of Kelly Ranch. This project consists of over 800 units, approximately 100 of those units, all apartments, will be rent restricted to low and very low-income families. HOUSING COMMISSION MINUTES MARCH 11,2004 PAGE 6 of 14 Another project is Bressi Ranch. This is the project that is being graded at the comer of El Camino Real and Palomar Airport Road. It will feature 620 units total, over 100 of those units will be set aside for low-income families. They will be condominiums. In addition, there is another apartment project just north of the Dove Library that is under construction now, Manzanita. There are 167 apartments, 24 of those will be set aside for low-income families. Another project is Waters End. This is a single family project west of 1-5, which consists of 220 homes. Then there is the Thompson Tobata project with approximately 200 homes, 24 of those are set aside as low-income condominiums. Chairperson Scarpelli asked if Mr. Donnell could go back to six (Waters End). What about the affordable units on that one? Mr. Donnell apologized for not having the breakdown for that particular project. Ms. Fountain commented the Waters End requirement was met with the Poinsettia Station Apartments. That was 92 units and it has already been built. Chairperson Scarpelli thanked Ms. Fountain for reminding him of that. Mr. Donnell continued that the next three are the Villages of La Costa Project, which is 2,400 units total. It will feature 350 affordable units, 180 of those affordable units are already under construction today, just east of El Camino Real on Alga in the La Costa Greens neighborhood of the Villages of La Costa. With those projects, the City will see the construction of over 5,000 units. All of these projects represent approved projects. All, except for one the Summit, are under construction today. There are also a couple of projects in the pipeline. There is also Robertson Ranch, which is in the very early planning stages that represents 1,100 homes. Another is CantaridHolly Springs, which is just going through the review process and should come to public hearing this summer. That will add 230 homes. He did not have a break down of the affordable component of either of those projects. In summary, we have approved or are seeing now under construction, 5,300 units. In the planning stages, we have an additional 1,300 units. Lookmg at the units that have been approved, 700 plus of those 5,300 units will be set aside for lower income homes. Chairperson Scarpelli asked Mr. Donne11 to back up to the map he had shown earlier. He asked Ms. Fountain, of those we are looking at, other then Robertson Ranch and Cantarini/Holly Springs, have we approved all the affordable elements on all of them? Ms. Fountain answered yes. The only one, Villages of La Costa, the second part that Mr. Donnell was talking about. The first phase is under construction. The second phase is noted in their master plan, but we haven’t approved the affordable housing agreement, but it is noted in their master plan that they will do that. All of these projects have outlined how their affordable element will be met. Robefison Ranch and CantaridHolly Springs are still being worked on so we don’t have exact numbers on those projects. All of the other affordable housing is either under construction or pending construction. Chairperson Scarpelli reiterated that the question is, our Commission has already seen all of the affordable on everything except Robertson Ranch and Canterini/Holly Springs? HOUSING COMMISSION MINUTES MARCH 11,2004 PAGE 7 of 14 Ms. Fountain said right. The Commission has addressed it in some way. The Commission doesn’t review all of the projects anymore with the affordable, but if they require financial assistance, the Commission has seen it. Chairperson Scarpelli said okay. He asked if we would anticipate the 15% of the 1,100 and 230? We would be talking 15% of 1,330 homes for the future development of affordable housing? Ms. Fountain answered we require 15%. Again, there will be a timing issue as to whether or not all that gets constructed in the next year. A number of those projects are under construction now, Calavera Hills, Villages of La Costa and Bressi Ranch are under construction. Whether or not they will actually be completed with those projects by the’time we take the next count is a question because there is a long construction period on many of these projects. Commissioner Ritchie asked Mr. Donnell with regard to the Summit. Is that the area that is being graded now that is behind the strip mall on Maron Road on top of the hill? Mr. Donnell answered yes. Commissioner Ritchie continued that is a 140 homes? Mr. Donnell said correct, apartments. Ms. Fountain continued that their affordable is included within that apartment project. Commissioner Ritchie said.thank you. Mr. Donnell continued that some of these projects are so large like Villages of La Costa, it will take years to build them out so the 700 plus affordable units that will be built won’t be seen in the next reporting period. It will take some time to see all of the affordable. Projects you might see in this next report might be the affordable component of Kelly Ranch and maybe the apartments being built as part of Villages of La Costa. Although the timeline for that is summer or fall of 2004. Commissioner Huston asked if this was the build out of Carlsbad or is this just what is on the books now? Mr. Donnell answered this is the last big wave of construction so once this is done, Robertson Ranch and all of the other projects, yes that generally represents the build out. There will certainly be other smaller projects and projects that aren’t reflected on this report, such as the mixed retail condominium development that is occurring in the village now, 65 units, 1 1 of which are considered affordable. It is not included here because it is smaller then several of the others. It is estimated that the majority of residential construction in Carlsbad will be complete over the next ten years. That concludes the presentation. Chairperson Scarpelli asked for an approval to accept the Annual Housing Production Report 2002-2003, Commissioner Ritchie accepted and Commissioner Smith seconded the approval. VOTE: 5-0-0 AYES: NOES: None ABSTAIN: None Huston, Ritchie, Scarpelli, Schraml, and Smith Ms. Bobbi Nunn, Housing Program Manager, presented the last Annual Plan of the Five Year Plan that was submitted in 2000. This is the Carlsbad Public Housing Agency Annual Plan for Fiscal Year 2004. HOUSING COMMISSION MINUTES MARCH 11,2004 PAGE 8 of 14 A little background, Carlsbad is required pursuant to the Quality Housing and Work Responsibility Act of 1998 to submit a five-year Annual Plan. The Annual Plans must be adopted by the Housing and Redevelopment Commission and a copy with required certifications are submitted to the U.S. Department of Housing and Urban Development or HUD. The five-year plan for the City of Carlsbad for 2000 to 2004 was adopted by the Housing and Redevelopment Commission on January 9,2001. In our Annual Plan, the Public Housing Agency has to address the housing needs of families, financial resources, eligibility, selection and admission policies, rent determination policies, operations and management policies, grievance procedures, homeownership programs, community service and self-sufficiency programs, the civil rights certifications, and fiscal audit. To recap some of the progress that has been made in meeting the goals of the five-year plan, the first goal to expand the supply of assisted housing since the fiscal year 2000, we have received 125 additional vouchers. Since fiscal year 2000, there has been approximately 443 units of affordable housing built through the inclusionary housing requirement. In our goal to leverage private or other public finds, areas that this has been done is through the process in development or approval of the La Costa Paloma Apartments, which is 180 units, the Mariposa Apartments, which is 106 units, the Manzanita Apartments, which is 157 units, and the Pacific View Apartments, which are 111 units. The Redevelopment Agency also purchased .58 acre parcel within the redevelopment area and that parcel will be available to develop eleven affordable rental units. Chairperson Scarpelli asked if that was the piece on Jefferson? Ms. Nunn answered it is on Roosevelt. Chairperson Scarpelli asked how far along we are on that project? Ms. Fountain replied that the developer, Wakeland Housing, is going to be doing that project, and they have submitted application for their land use permit. They are in that process right now so it is moving forward. Chairperson Scarpelli apologized to Ms. Nunn for interrupting. Ms. Nunn continued, the for-sale affordable units that are in the process of development or approval are the Village by the Sea condos, which will have 11 affordable units, Rosebay Town homes, which will have 24 units, Laguna Point condos, which will have 3 units, and the Bressi Ranch, which will have 100 units. For the Housing Agency goal to improve the quality of assisted housing in 2001, the Housing Agency was ranked as a high performer. In 2002 and 2003 our rahg did go down to standard performer as a result of the lease rate. Our Housing Agency is recognized as providing excellent customer service. We have developed a rental property owner survey, and we will be sending that out to the owners in order to get feedback on ways we can streamline our programs, change our policies within regulations in order to make the program more rental-owner friendly. Again, we did streamline the lease process already and our owner payments are now mailed within two weeks of the effective date. The waiting time for our high priority applicants has been reduced to between six months to a year and a half. That would be for an applicant who applies on our waiting list that has the three highest preferences in that they are a residence or working in Carlsbad, they are extremely low income, which means they are under 30% of the median income, and they either fall in the category of being a family, elderly or a person with disabilities. Then someone who has those three priorities and is also a veteran most likely will be assisted withm six months. In our goal to increase assisted housing choices, we still are working with other agencies to provide voucher mobility counseling and we still work as a consortium with other housing agencies to conduct rental property workshops. We still are keeping our payment standards at 110% of the fair market rent which means the fair market rent is what is HOUSING COMMISSION MINUTES MARCH 1 1,2004 PAGE 9 of 14 actually published by the Department of Housing and Urban Development on what they feel is a fair rent for the area of San Diego County and because of the higher rents here in Carlsbad, we do have the ability to raise those rents up to a 110% of that amount which we have done to open the market more for our clients. As of today’s date, we have recruited 26 new owners for this year alone. Chairperson Scarpelli asked of those 26, are many of those multiple units or are they single units? Ms. Nunn said it is probably about 60 to 70% single units and the rest are multiple units. We have seen a lot more of individual owners that are renting their properties and our clients are finding and are able to get them to cooperate and work with the program. Ms. Nunn continued that another Public Housing Agency goal is to promote self-sufficiency. We continue to voluntarily administer a family self-sufficiency and we have approximately 26 people on the program at this point. We try to stay between 25 and 30. We maintain ongoing communications and relationships with agencies and non- profits that provide services to persons with disabilities. We also provide information on homeownership opportunities. To insure equal opportunity in housing for all Americans, the City of Carlsbad Housing Department contracts with Heartland Human Relations and the Fair Housing Association to provide services to clients to relate to Fair Housing. That same organization also trains staff and participants on fair housing, and as part of our contract, they provide workshops to our owners and to our participants under the program on what their fair housing responsibilities and rights are. We also provide information on agencies that assist persons with disabilities. The supporting documents to the Annual Plan are the regional analysis of impediments to fair housing choice in the San Diego area, the City of Carlsbad Consolidated Plan, the Administrative Plan for the Section 8 Tenant Based Rental Assistance Program, the City of Carlsbad’s Family Self-Sufficiency Action Plan, and the City of Carlsbad Single Audit Report on Federal Award Programs. Public participation is required. There is a reviewing comment period for 45 days of the plan before its submittal. The public is entitled to make comments on the proposed annual plan. Any oral communication will be recorded at public hearings, and the next public hearing is anticipated to be April 13,2004, when it will go before the Housing and Redevelopment Commission. All comments are then addressed in the final plan. Basically, it is a response to the comments. As of today’s date, we have not received any comments from the public. That concludes my presentations. Are there any questions? Codssioner Huston had one question, for those individuals who are renting affordable housing, is there a time period for them? After they have residency for three or five or six or seven years where they move out and someone else has the opportunity then to partake of that savings? Ms. Nunn answered the Rental Assistance Program is considered tenant based so when someone is eligible, they take the voucher with them and move it as they go to different places. Once we are no longer making a payment on their behalf based on a calculation that we use, then they are still on the program for six months, but if after that six months they are still able to maintain that income level where there would be no payment on their behalf, they would then be terminated or released from the program. At that point, those funds would be available for someone else on the waiting list. Commissioner Huston stated she was speaking to the inclusionary housing, not the Section 8 Program. Ms. Fountain stated on the affordable units, there is not a limit on how long they could potentially live in one. As long as they qualify, there is annual recertifications to make sure they still qualify for the program. There is not a maximum time that they could do that. HOUSING COMMISSION MINUTES MARCH 11,2004 PAGE 10 of 14 Commissioner Huston continued that otherwise it becomes a permanent subsidy rather then assistance to help them get on their feet and then allow someone else to have the benefit of that. Ms. Fountain commented the ideal approach in the hope of providing affordable housing is if they are only spending 30% of their income on rent, they will be able to use that money to improve their life and maybe go back to school, get a better job, do those types of things. But it is not a mandatory requirement under inclusionary housing that the people living there have to do that. Through the Family Self-Sufficiency Program, our hope is to eventually have people improve their quality of life and they can move on into a home ownership opportunity or something like that. In Carlsbad, our goal is to provide a diversity of product so there can be some moving around, but there isn’t a maximum time fiame for which they can live at the unit. As long as they continue to qualify, they can continue to live at the unit. Commissioner Huston continued, so the Department of Labor dictates that’s how it is laid out; there is no mandatory time limit or anything like that. Ms. Fountain stated that it isn’t the Department of Labor that would be setting those regulations. We just don’t have regulations that say how long they can live there. Commissioner Huston asked if Carlsbad can add a regulation like that? Ms. Fountain answered we could, but she’s not sure how that is totally beneficial. There are situations where we have seniors living on fixed incomes and we have the disabled living on fixed incomes so you could actually harm that group by setting a regulation like that. When you have families, the hope is that ultimately they will improve their situation and be able to move out of the units, but if for some reason they are not able to, it probably is not reasonable to say that. What we found when we were doing our surveys with who are living in the affordable housing units through the inclusionary requirement, is that single moms with one or two children that are living in those complexes hopefully if they are able to improve their life or they maybe get married at some point and they will have double income you might see them moving out and then new families moving in. It is real situational because each person has a different reason why they might be in that low income category. Commissioner Smith said she would like to say something. I am a Section 8 recipient. It has enabled me to care more for myseIf When I received Section 8, at that time I was teaching school. I was very ill and I hew that I needed to come home, but I could not afford to come home because I had to pay my rent. Once I received the Section 8 voucher, I was able to pay less rent and I was able to care for myself better meaning that I could buy the food that I needed to buy because of the diet that I had to be on. A lot of my medication I had to pay for that. It is not because we are lazy, it is not because we don’t want to work. Commissioner Huston exclaimed she did not mean that. Commissioner Smith continued that a lot of people have gone to college and are in that low income where they cannot get out there on their own. I just want to thank the staff for having a program like this. When I was in Gary, Indiana, I worked for the Gary Housing Authority and at that time, it was called Leased Housing, it wasn’t Section 8, later on it was Section 8, but I never thought that I would be a recipient of the Section 8 Program. God knows it has really helped me a lot and I want to thank the staff because you have worked hard in order to keep this program going. Commissioner Ritchie said she thinks it was explained once before, how this works for home ownership. If the recipient of a subsidy sells the house, what happens? Can they sublease it in rent? I don’t know how that works when ownership involved. Ms. Fountain asked if she was talking about the Inclusionary Housing Program still not the Section 8 Program. HOUSING COMMISSION MINUTES MARCH 1 1 , 2004 PAGE 11 of 14 Commissioner Ritchie said yes, the Inclusionary Housing Program. Ms. Fountain answered in the Inclusionary Housing Program, when we there is a for-sale product, currently our regulations say that during the first fifteen years of that, if the person sells, they have to sell it to another low-income person at the low-income price. After fifteen years, sixteen years on, they could sell it to a non-low-income person and then what we do is we recapture our subsidy in the project. We share in the contingent interest so we share in some appreciation of the project. That money comes back to the City that we can then use to help subsidize another project. During the first fifteen years, they have to sell it to another low-income person. Commissioner Ritchie said thank you that’s what she needed to know. Chairperson Scarpelli stated that we know what is happening in our city, we are going to built out in 2010, our pricing is not going to go down, it is going to continue to go up, the median price of a home in the City of Carlsbad is $500,000. We are going to have a problem with Section 8 working in as much as getting participants from the owners of apartments because I can see what apartment rates are going to be in the City once you are built out. There is no more room to build so your inventory is not stagnant. I suspect we will continue with the high demand. He wondered if it was going to cause a problem to get participant owners to be involved with Section 8 because the rents they will be able to achieve are going to be greater then we will be able to do so the question is, is there any thinking outside the box right now on how we are going to handle the future for Section 8 participants in Carlsbad? Is there anything going on there where we are initiating any, I know it is Federal and we are going to have to deal with our Federal representatives, but is there anythmg happening within the City of Carlsbad to try and initiate what I think is coming, and that is a more and more dificult time for Section 8 housing in the city? Ms. Nunn replied that the agency has a very good rapport with a lot of owners and even when we had the less then a half percent vacancy rate at one time a few years ago, we were still able to maintain our lease rate because of the relationships we have with the owners and property management groups here in Carlsbad. As far as the rents continually rising, as long as the Federal government is still doing accurate surveys on what the rental markets are in the area, we should be able to maintain payment standards that would reflect what the market is and be able to assist clients in units in Carlsbad. Legislatively, our agency does belong to several larger organizations that do get together as a collaborate group and address legislative issues with HUD on changes that we think need to be made in order to continue working with changing times and with escalating costs. Chairperson Scarpelli asked Ms. Nunn if she could tell the Commission what the main focus of that group is right now? Ms. Nunn answered that right now the main focus is that we are successful in combating some of the changes that they were planning on making in fiscal year 2004. There was proposals out there to do a Federal block grant of the program and to actually have it run through the states, and because the letter that agencies have written to representatives we were able to combat that and keep the program as it stands now. Our biggest fear right now is in fiscal year 2005 they are once again talking about doing a type of a block grant program. However, they are considering doing a block grant directly to the agency instead of through the state which is a little bit more palatable, but the concern that we have is that they are also talking about doing a straight line administrative earning calculation where we would only earn 7% of our contracted funds that we receive every year. When we calculate that, it is about a 32 or 39 percent reduction in what we currently earn under the current formula for assistance. Chairperson Scarpelli asked if that was earning to the municipality to admimster to the program? Ms. Nunn said right. It is to cover our administrative costs. That is what we are focusing on right now, the changes they are proposing to make for fiscal year 2005. Chairperson Scarpelli thanked Ms. Nunn. Another question is, we’ve been dealing with the second dwelling unit as an inclusive unit in the affordable housing element requirement, and I have always been supportive of it because I HOUSING COMMISSION MINUTES MARCH 1 1,2004 PAGE 12 of 14 felt it was as the City has felt and the Council has felt. I am wondering now if we are looking at the future build out by 2010, have we looked at our experience with the second dwelling unit to determine that we are making effective use of that allowance. In other words, our roll here is to make sure we get as many affordable units in the City as we can get and with number of units, it appears that we will be at build out in 2010, should we now start looking at disallowing the second dwelling as a unit and get a real unit that we know will be in that category. Has there been any discussion or concern about that by staff or Council? Ms. Fountain answered that a few years ago, this was a really big issue with the Planning Commission, Housing Commission and City Council on whether or not we allow second dwelling units. So in 2000 when we revised the Inclusionary Housing Ordinance, we actually became more restrictive on when you can use a second dwelling unit to meet the requirements. One of the discussions that we had with the Planning Commission and the Housing Commission, was recommending to the City Council that they not allow second-dwelling units to meet the inclusionary requirement. By state law, we have to allow second-dwelling units. If the single family homeowner wants to build a second-dwelling unit, we have to be able to allow them to do that. We don’t necessarily allow them to use it to meet the inclusionaxy requirement, but when we were having that discussion with the City Council, the concern was there are some very small projects, because if they are seven units or more, they have to provide an affordable housing unit, so that may be that they only have a one or two unit requirement so the Council concerned about taking away the ability to build second dwelling units because those small developments didn’t meet the requirements; especially in the northeast and the northwest quadrant where there is not a combined project where they can buy into like there is in the southeast and the southwest. In the southeast and the southwest, they can buy credit through the Villa Loma Project if they are a small project. In most cases we have allowed them to do that to satisfy the inclusionary rather then doing it in a second dwelling unit. The Council said in light of that fact, we are going to still allow second-dwelling units. If they do provide the unit, they not only have to make the rent affordable, they have to income qualify the tenant. If you have your mother-in- law or maid living there, they have to qualiQ as low income where before we didn’t have that requirement. They could choose not to charge any rent if they have their grandmother or another family member. It is an ongoing debate whether or not they really meet a need. I think one of the reasons that we have been supportive from a housing standpoint is they are restricted to being 640 square feet or smaller so the goal was that by being that small, they are going to be affordable. The problem is we can’t make a single-family homeowner rent their unit. We actually did do a survey to try to find out how they are being used. In a lot of cases, they are not being rented but used for a family purpose. They are not actively on the rental market. That was a concern that the Planning Commission and the Housing Commission had. In most cases they are only used as a solution for the small projects; those that have less then five unit requirement. In other cases, we are trying to have the developer participate in a combined project or some other type of product that would allow it. When they are really small, you can’t really build an apartment project of four or five units. We are even finding it hard on the eleven unit project we are working on so that it is not a really high per unit cost because of land costs. The Council could make a policy decision again not to allow them. It is a tough position when it is mandatory to build the units. We don’t allow them to buy out of building the units with a fee. When the ordinance was revised, it basically made it an alternative. So every second-dwelling unit project that goes forward now has to go all the way to the Council to say yes we are going to allow the second dwelling units in this case. It is an option just like the option that you saw of the gentleman who purchased two condo units off-site, and he had a small development so we got creative and let him go off site to buy two town home units. Because in his particular case, he was building a town home product, the second-dwelling unit doesn’t work well with the town home product. It works well with the single family home product, so the Council took your recommendation and said that was a good solution to the problem. Actually, the Council commented it was a creative approach and we should encourage this more often. We try to work with the developer and see if there are other solutions to it, but when there doesn’t seem to be another good solution, then the second-dwelling units is an alternative. Chairperson Scarpelli thanked Ms. Fountain. He commented that it is not an easy out. They are going to have to qualify first to give them the opportunity. HOUSING COMMISSION MINUTES MARCH 11,2004 PAGE 13 of 14 Ms. Fountain agreed. Chairperson Scarpelli asked if there are any further questions. It was moved to adopt the resolutions approving the Public Housing Agency Plan that was presented this evening, and Commissioner Smith seconded. VOTE: 5-0-0 AYES: NOES: None ABSTAIN: None Huston, Ritchie, Scarpelli, Schrarnl, and Smith CHAIRPERSON’S REPORT No report other than thanking the staff for the excellent job that they do. It is appreciated that the staff takes the time to present to the Commission what is happening in affordable housing. DIRECTOR REPORT: Mr. Craig Ruiz, Manager in Housing and Redevelopment, presented pictures to the Commission on projects currently being built. He presented a picture of the La Costa Project showing the progress. This will be a 180 unit apartment project called La Costa Paloma. This project is scheduled to be completed or at least the first move-ins in January of 2005. The rains we recently had moved the project back. He showed another picture of a project up in Calavera Hills, now known as the Mariposa Apartments. College Avenue is now being built west towards El Camino Real. Chairperson Scarpelli asked if they were building lists now for the tenants or is it still too early? Mr. Ruiz answered for Calavera Hills, they have a phone number, anybody calling our ofice, we can give them that number. It is also on the City’s website, the Department of Housing and Redevelopment has its own page. You can call and get on their interest list. Towards the end of April they will start the prequalification process. People can also call our ofice to add them to our interest list that we will give to the builder. Chairperson Scarpelli asked about the La Costa Paloma. Can you remind us again who the management people in each of these as you go along? Mr. Ruiz said he would. This project, the Calavera Project, is being built by a group called Chelsea Development Corporation and they are in Solana Beach. They have their own in-house management company. Chairperson Scarpelli asked if we have them doing any other projects? Mr. Ruiz said this is the first one in Carlsbad. The previous project, La Costa Paloma, is being built by Community Housing Works. They have offices in Escondido and San Diego. They are working with a company called the John Stewart Company. They are a large properly management company so they will be the on-site managers through a contract with Community Housing. Because this project is not far enough along, they have a recording that you can call for construction updates, but it probably won’t be until the summer that they start taking names. Again, people can call our office as well. Back to the Mariposa Apartments, this will be in July. Kelly Ranch is another project that will have 11 1 unit project. There are 400 apartments total, out of that 11 1 will be affordable. We are going to have the first move-ins in that project in April. That project is at the comer of Cannon and Faraday. That concludes my report. HOUSING COMMISSION MINUTES MARCH 11,2004 PAGE 14 of 14 Ms. Fountain thanked Mr. Ruiz. She continued there is quite a bit under construction now, but some of these larger projects take much longer to construct. One thing I wanted to follow up on that Mr. Ruiz said, our website has a lot of good information about affordable housing on it. The website also has existing projects and if anyone wants information or to apply for those existing projects, they can actually go on-line under the Housing and Redevelopment Department and it gives information on existing projects. They can get a phone number, they can see a picture of the project. We also have a list for future projects. If the developer is starting to take names and keep an interest list, then that phone number will be on there. If they haven’t started that yet, they can get on our interest list, and then we turn that over to the developers when the developers are ready to start renting the units or accepting applications. We also have the rules related to our inclusionary housing program for developers. Also on the City’s website under the Planning Department, they have construction updates where you can go online and find out about projects that are under construction, what stage they are at. It is usually larger, significant projects, not single family homes. If people don’t have access to the computer in their home, they can use the computers at the library. Chairperson Scarpelli asked Ms. Nunn if Section 8 people can qualify for the affordable housing units as well? Ms. Nunn answered yes. Chairperson Scarpelli asked if anyone else had anything. ADJOURNMENT By proper motion, the meeting of March 1 1,2004 was adjourned at 7: 14 p.m Respectfblly submitted, Debbie Fountain Housing and Redevelopment Director PATRICIA CRESCENTI Minutes Clerk MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE APPROVED. ITEM NO. 1 NOVEMBER 6.2003 TO: CITY MANAGER VIA: Planning Director FROM: Associate Planner ANNUAL HOUSING PRODUCTION REPORT - FISCAL YEAR 2003 This document constitutes the tenth annual report describing the City’s progress in producing housing. It describes our progress during the previous fiscal year (July 1, 2002 to June 30, 2003, or FY 2003) in meeting, through the construction of new homes, Carlsbad’s estimated share of the region’s forecasted growth for the four income groups identified in state law. Purpose - The Annual Housing Production Report is prepared pursuant to California Government Code Section 65400 (b)(l) which in part requires an agency to report annually to its legislative body on the progress in meeting its share of regional housing needs. Reporting Period - The report covers housing production in FY 2003, which marks the fourth year of what was originally intended to be a five-year Housing Element cycle. By state law, this cycle began July 1, 1999, and was to end June 30, 2004. However, legislation signed by Governor Davis in 2003 has added a sixth year to the cycle, extending it through June 30, 2005. Format - The City’s production and progress during FY 2003 is reported with data contained in the following nine tables: 0 0 Table 1 defines the four income groups. Tables 2 - 4 set out the qualifying income levels for the four income groups and the corresponding rents and sales prices considered affordable to the income groups during the reporting period. Table 5 provides the counts of new housing built, by income group and housing type. Table 6 highlights the low-income housing built. Tables 7 and 8 provide price information on the market rate homes built. Tables 9 and 10 compare our progress so far to the current housing cycle objectives. 0 0 0 0 Regional Share Needs - The determination of housing need for Carlsbad and all other jurisdictions in California is derived from the Regional Housing Needs Statements prepared by the regional councils of government (COG) before the beginning of each housing cycle. Based upon these assessments of need the local jurisdictions are charged to adopt housing objectives in the housing elements of their general plans. A regional assessment of need is an estimate of the total need for new housing construction throughout the region due to growth forecasted to occur during the five-year cycle. The overall housing need is then broken out by four income groups: very low, low, rnoderafe, and other (or above moderate or upper-income) - all as defined by the federal Department of Housing and Urban Development, or HUD, and the state Department of Housing and Community Development, or HCD. CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Page 2 Table 1 shows the regional share estimate of need prepared for Carlsbad for the current housing cycle. It is based, in part, upon the growth that the San Diego Association of Governments (SANDAG), the region's COG, estimated for the City in its 2020 Regional Growth Forecast. This forecast was prepared in 1998. The combined very low and low-income ("lower"- income) estimate of need is 3,187 units. This equals 51% of the total need for housing through June 2004. As mentioned earlier, the state has extended the housing cycle through June 2005. It is unknown if The regional needs are then allocated to the local jurisdictions on a "regional share" basis, according to models and formulas designed by the COG. Table Carlsbad's Regional Share Need Estimates For Housing Cycle 1999-2005 Definition' (% of New Construction Needs Group AMI*") (in housing units) Very Low 50% or under 1,770 Low 51 -80% 1,417 Moderate 81 - 120% 1,436 Other Over 120% 1,591 6,214 Definitions are from HUD, via the California Department of Housing and Community Development. '*AMI is the County Area Median Income. The 2003 San Diego County Area Median Income for a familyof fowis $60,100. Definitions of Income Groups - Table 1 also defines each of the four income groups with reference to a percentage of the county area median income (AMI). Defined as the median income for a family of four in a specific geographic area, the AMI changes over time and with location. HCD annually revises the AMI based on HUD data and cost of living issues such as the relationship of housing prices to income. In 2003, however, HCD kept the AMI for San Diego County at $60,100, the same amount as in 2002, after making adjustments based on Census 2000 data. By comparison, the AMI in 2001 was $56,900. Additionally, the area median income is modified to reflect the differences in costs of living throughout California, as the following 2003 AMI information for different counties shows: 0 San Diego: $60,100 0 Orange: $75,600 Shasta: $45,400 Santa Clara: $105,500 Some regions of California, including San Diego County, have high housing costs relative to incomes. In recognition of this factor, HUD increased the income limits in 2003 for the very low and low-income groups in these regions. This potentially enables a larger group of people to qualify for lower-income housing. However, these changes did not have an effect on housing built in Carlsbad; they did not cause the affordability of any housing produced in FY 2003, for example, to change from one income group to another. Furthermore, the housing in the City that was specifically built for low-income families was already restricted to occupancy by that income group. CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Page 3 larger households have higher income limits. Table 2 shows the FY 2003 income limits for very low, low, moderate, and other-income groups households. The income limits in Table 2 correspond to the standard percentages stated in Table 1, with a for 2, 4, 6, 8, and 10 person few adjustments made necessary to recognize our region's housing costs Table 2: FY 2003 Qualifying Limits On Annual income By Household Size Persons Per Household 2 4 6 8 10 Income Group VeryLow $25,500 $31,900 $37,000 $42,100 $47,204 LOW $40,850 $51,050 $59,200 $67,350 $75,518 Moderate $57,700 $72,100 $83,650 $95,150 $106,700 >$57,700 >$72,100 ~$83,650 >$95.150 >$106,700 Other relative to incomes. By way of $51,050 is considered to have a lowjncome, even though the amount is 85% of AMI, or five percent more than the upper limit for low-income families shown in Table 1. Limits are not shown and are not applicable for the other-income group as any income greater than the moderate-income limits would apply. Thus, as shown in Table 2, an upper-income or other four-person household would earn any amount above $72,100 a year. Source: "2003 Income Limits," state Department of Housing and Community Development, April 9,2003 (Numbers based on HUD income date effective February 20,2003). Prices of Affordable Housing - Generally, the federal and state rule is that housing is affordable to a given family if the family pays less than 30% of its monthly income for housing expenses that include the rent or mortgage payment, property taxes, insurance, utilities, and the like. A determination of whether a housing unit is affordable can be easily made for assisted public rental housing and other public housing programs because documentation is maintained on both the individual household's income and the actual cost of the unit in question (typically a rental). A determination of whether market rate housing is affordable according to the 30% rule, on the other hand, presents some challenges. Builders of market rate rental and for-sale housing do not set prices based upon an individual buyer's ability to pay. Rather, the rentdprices are set to what the market will bear. Further, rents and prices do not generally vary with the number of people in the household. For example, market rent for a two-bedroom apartment will remain constant no matter if it is being rented to a I-, 2-, 3-, 4, or 5-person household. So the challenge is how to determine to what income qrouD (as opposed to an individual household) a given market rate house is affordable, and to do so based upon the number of bedrooms it has (as opposed to persons). A convention developed in 1993 by member agencies of the San Diego Association of Governments assumes two persons per bedroom. Thus, a two-bedroom unit is assumed to house four people. To determine affordable housing expenses for rentals, the practice is to set thresholds for each income group, using the 30% rule, with adjustments for the number of bedrooms. An additional adjustment is also made for a utility allowance, as required by HUD. Table 3 provides the resulting maximum market rate rental expenses (which include rent and a $28-$54 utility allowance that increases with household Table 3: FY 2003 Qualifying Rent and Utility Expenses I BY Number of Bedrooms I Number of bedrooms 1 2 3 4 Income Group $925 $1,053 Very Low $638 $798 $1.021 $1,276 $1,480 $1,684 Low Moderate $1,442 $1,803 $2,091 $2,379 Other >$I ,442 >$I ,802 >$2,091 >$2,379 Source: "2003 Income Limits," state Department of Housing and Community Development, April 9, 2003; and Carlsbad Housing Authority table on "Lower and Moderate Income Rental Rate Calculations." CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Page 4 size) for the very low, low, and moderate-income groups for FY 2003. To illustrate, the table shows that for a couple earning $25,500 annually (considered a very low-income per Table 2), a one- bedroom apartment would be considered affordable to them only if the rent and utility expenses combined did not exceed $638 per month, or 30% of their income. For-sale market rate housing is even more complicated for purposes of determining affordability. Neither state nor federal regulations provide a formula to determine affordability. A multitude of factors are potentially involved. First, buyers don’t pay the full price of a house in cash. Instead, they take out one of many types of mortgages, subject to many variables (fixed or variable interest rate, down payment, pay-back period, mortgage insurance, loan origination fees, etc.). In addition, other housing costs must be factored in, including property taxes, insurance, utilities, and homeowners’ association dues. All of these factors are recognized “housing costs” and indirectly affect how much a family can pay each month under the 30Y0-of-income rule. Only the principal and down payment, however, relate directly to the sales price of the house. All the others are related to financing and operating a home. Lacking guidance from state or federal law, SANDAG member agencies developed a simple formula in 1993 for use in determining the affordability of market rate for-sale houses. The formula, provided below, follows a rule-of-thumb used by many mortgage lending institutions. As with the rental formulas discussed earlier, it was subsequently reviewed and accepted by the SANDAG Board and the California Department of Housing and Community Development. Affordable sales price = 3.0 X maximum-allowed-annual-income for each class, adjusted for bedroom count. I Table 4: FY 2003 Qualifying Purchase Price, By Number of Bedrooms I I 1 2 3 4 5 Number of Bedrooms Income Group ~ Very Low $76,500 $95,700 $111,000 $126,300 $141,612 Low $122,550 $153,150 $177,600 $202,050 $226.554 Moderate $173,100 $216,300 $250,950 $285,450 $320,100 Other >$173,110 >$216,300 >$250,950 >$285,600 >$320,250 3X multiplier was developed by an ad hoc committee at SANDAG with subsequent approval by the SANDAG Board in 1993. (There is no formula in state law.) The rule also assumes 2 persons per bedroom to provide a correspondence back to HUD affordability rules based upon -per household (as opposed to bedrooms). Since HUD tables do not provide for 12 or more person households, homes with more than 5-bedrooms are treated as if they were 5- bedroom homes. Based upon this formula, Table 4 gives the qualifying purchase price for housing for the different income groups. The table illustrates that a two-bedroom house costing no more than $95,7000 would be the maximum affordable to a very low- income family. This price is three times the $31,900 annual income limit for a very low-income family of four as shown on Table 2. On the other hand, a two-bedroom home costing more than $216,300 would be affordable only to families in the other-income group since the price is more than 120 percent of median income. Determining Affordability - Based on the above information, two variables must be known about a housing unit to determine its affordability: a) the sales price or rent, and b) the number of bedrooms. Staff must collect this information for each individual housing unit. For housing created under one of the City’s housing assistance programs this is relatively easy, as we get the data via the program. On the other hand, for new market rate rentals and for-sale homes, staff must obtain the sales price or rent information directly from the builders. Staff performs this task once a quarter via a voluntary CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6, 2003 Page 5 survey of all newly constructed units. Most builders are cooperative and provide the information we need. A few are not. If the builder is not responsive, staff attempts additional contacts by mail and phone. Regis Homes and Centex Homes are two developers from which staff was unable to obtain any price information. If necessary, we also research Building Department records and County Assessor's data, the latter on the Internet, for any missing information on bedroom counts and sales prices. Due to the research and delays involved in documenting prices and rents and assembling data, this report trails the end of the reporting period by a few months. For this reporting period, staff obtained with the quarterly survey and additional research sales prices and rents for all but a few homes. Housing Activity and Affordability in FY 2003 - Table 5 and the information below summarize and expand on housing completed in FY 2003. Definitions of terms used in the table and the remainder of the report are as follows: Market Rate Units - Units that received no financial assistance from the City and have no affordability restrictions. Assisted Units - Units that received financial assistance from the City and/or other subsidy sources and have affordability restrictions. Single-family detached - A single home on a single lot, detached from any other unit, except for an attached second dwelling unit. Condominium - A detached or attached home on commonly owned property. Apartment - A unit that can only be rented and not owned. Duplex - Two units on a single lot. Units cannot be individually sold. Second Dwelling Unit - A completely independent dwelling unit on the same lot as a primary residence. A second dwelling unit may be attached to or detached from the primary residence. I Table 5: Affordability of Housing Units Constructed in FY 2003 Make t Rate Duplex Single Family Condo- Apart- Detached minium ment Income Group Very Low 0 0 0 0 Low 0 0 2 0 Moderate 0 0 0 0 Other 462 192 0 0 Unknown' 0 0 0 2 Assisted Apartment 0 50 0 0 0 Second Totals Dwelling Unit 0 0 17 69 0 0 0 654 0 2 Totals 462 192 2 2 50 17 725 'Since the rents charged for two duplex units could not be obtained, these units were placed in the "unknown" category. I CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Page 6 Occupancy Restrictions Comments on Housing Production in FY 2003 City Assistance 0 0 Developers built 725 new homes in Carlsbad, compared to 1,460 units built in FY 2002 and 2,097 units completed in FY 2001. The decline in production can be traced to the completion of large developments such as Rancho Carrillo and the lack of new communities where more sizeable development could occur. This will change in FY 2004. 0 Single-family detached dwellings accounted for 66% of the fiscal year’s production, condominiums 26%, and apartments 8%. Available only to persons and families with low incomes. There are no occupancy restrictions with these market rate units. If rented, second dwelling units must be affordable to low- income persons. Comments on Housing Affordability in FY 2003 None None None 0 0 Most (90%) of the housing built was affordable to upper-income households only. New housing for households earning low incomes accounted for 9% (69 units) of production, with the majority of it made possible by the City’s inclusionary housing requirements. No very low or moderate-income housing was constructed. Table 6 highlights Carlsbad’s newest lower-income housing built. ’O 2 Project ~ Apartments, ranging from studio to three-bedroom units, built to partially satisfy a project‘s inclusionary housing requirements. Two-bedroom apartments with rents affordable to low-income persons. The units were not built to satisfy inclusionary housing requirements. Sunny Creek Market rate units Second Dwelling Units Location Sunny Creek Northwest Quadrant Throughout Carlsbad Table 6: Low-Income Housing Built in FY 2003 Number of Units I Description 17 Small, independent living units located on property with a larger, primary residence. Many of the 17 units built partially satisfied the inclusionary housing requirements of developers. I CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Page 7 Housing Units Built FY2000 FY 2001 FY 2002 FY 2003 Total Income Group Very Low 23 138 17 0 178 Low 159 158 106 69 492 Moderate 42 94 75 0 21 1 Other 1,679 1,700 1,255 654 5,288 Unknown" 11 7 7 2 27 Totals 1.914 2,097 1.460 725 6,196 Medians and Extremes - Table 7 compares the median price for for-sale, market rate housing built in FY 2003 and FY 2002. Table 8 provides high and low sales prices during FY 2003. Housing Units Needed Objective Percentage of Objective Achieved 1,770 10% 1,417 35% 1,436 15% 1,591 332% n.a. n.a. 6,214 99.7% Table 7: Comparisons of Median Sales Prices PI 2002 vs. FY 2003 (Market Rate Units Only) I Median Sales Prices Structure Type FYm IT2003 change SingleFamily Detached $525,200 $65o,OOO $124,800 23.8% Condominium $322,745 $458,250 $135,505 42.0% I Table 8: Low and High Sales Prices Structure Type High (SingleFamily Detached $379,961 $1,995,859 Condominium $265,500 $1,430,000 Progress Toward Housing Cycle Objectives - Table 9 below provides the number of dwellings completed during the first four years of the current housing cycle. The table also shows the cumulative progress achieved during those years toward meeting the new housing needs (from Table 1 ) estimated for the housing cycle over its original five-year term (1 999-2004). Comments on Overall Production during the Housing Cycle 0 0 0 The City has already exceeded by over three times its estimated need of other-income units for the entire 1999-2004 housing cycle. Single-family detached dwellings accounted for 63% of all new construction, condominiums 19%, and apartments 12%. In the first four years of the cycle, 720 apartments have been built; more than half (59%) are restricted to occupancy by very low and low-income households. CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6,2003 Page 8 Comments on Lower-Income Production during the Housing Cyde 0 Nearly 700 units have been completed, which is more than 10% of all housing built during the cycle. About 75% of the lower-income housing was produced for low-income households and 25% for very low-income households. Apartments accounted for nearly two-thirds of the lower-income housing built. Most lower-income housing built resulted from lnclusionary Housing Ordinance requirements and required city financial assistance. 0 0 Table 10 breaks down the types of affordable housing built in the current Housing Cycle. Table IO: Types of Lower-Income Housing Built First Three Years of Current Housing Cycle Second Type of Unit Number of Units Apartments 426 Condominiums 95 Single-family Attached 24 Second Dwelling Units 125 Totals 670 Apartm ents 63% Condominiums I Conclusions As this report demonstrates, Carlsbad has seen significant results from its commitment to the development of housing affordable to lower-income families. This commitment is evidenced in its policy framework, the allocation of its own resources, and its efforts to pursue creative partnerships with the private sector in all aspects of housing production. While the City has made positive strides in producing lower-income housing, the need for housing affordable to very low, low, and moderate-income families continues to exceed the community’s collective ability to produce it. At the same time, total production of new homes affordable to upper- income groups remains dominant. Clearly, Carlsbad’s private sector continues to produce primarily up-scale housing. A number of factors contribute to this trend: Demand for higher-end housing remains strong; tax incentives for producing more affordable housing are few; land costs are high; and, despite lower, relatively stable or declining interest rates in recent years, per-square-foot production costs remain substantial, so that profit margins on more affordable housing are low. Additionally, when the City considered including a moderate-income requirement as part of its inclusionary housing ordinances in the early 199Os, the requirement was set aside when the private sector assured the City that it would produce moderate-income housing without inclusionary CITY MANAGER HOUSING AFFORDABILITY REPORT FY 2003 NOVEMBER 6, 2003 Paae 9 requirements. Based upon this assurance, the City made a conscious decision to focus its own resources and efforts on lower-income housing. The industry’s production of moderate-income housing, averaging about 4.5% of annual housing output since July 1994, does not stand up well to its earlier assurances. The fact that the market continues to strongly support the development of housing primarily affordable to upper-income households is a key reason as to why the City must continue its commitment to fully implement the lnclusionary Housing Ordinance. Testimony to this is the 69 low- income units produced during FY 2003, most of which were completed because of Carlsbad’s inclusionary requirements. Through the remainder of the current housing cycle, inclusionary requirements will continue to produce more new housing affordable to lower-income families. Examples of inclusionary projects that will add significantly to the City’s lower-income housing stock in the remainder of the housing cycle are: 0 0 0 0 0 0 La Costa Greens - 180 apartments Calavera Hills - 106 apartments Ke//y Ranch - 11 1 apartments Bressi Ranch - 100 condominiums Rose Bay - 24 condominiums Village by the Sea - 11 condominiums Because of these projects, Carlsbad will add over 500 lower-income homes and continue to make significant progress toward its estimated regional share needs. SCOTT DONNELL Citv of Carlsbad Housina and RedeveloDment DeDartment I usina Commission 8 Staff Roberta "Bobbirr Nunn Housincl Pmram Manaaer ITEM NO. 2 DATE: MARCH 11,2004 SUBJECT: CARLSBAD PUBLIC HOUSING AGENCY ANNUAL PLAN 1. RECOMME" That the Housing Commission ADOPT Resolution No. 2UU4-UO1, REGQMMENDlNG that the Housing and Redevelopment Commission APPROVE, the Carlsbad Public Housing Agency (PHA) Annual Plan for Fiscal Year 2004 for submission to the U.S. Department of Housing and Urban Development. II. BACKGROUND The Housing and Redevelopment Department administers the federally funded Section 8 Tenant-Based Rental Assistance P rogram for the Public Housing Agency i n C arlsbad, which is more specifically known as the Carlsbad Housing Agency. Pursuant to federal regulations, Public Housing Agencies (PHA) are required to submit a 5-Year Plan which describes the PHAs mission, long term goals, and strategy for accomplishing the goals. In addition, an Annual Plan is required that provides comprehensive and specific information about the PHAs operations, policies, strategies, and resources. The Housing and Redevelopment Commission approved the 2000-2004 5-Year Plan on January 9, 2001. The PHA Annual Plan is required to be available for public review and comment prior to a Public Hearing and adoption by the Housing and Redevelopment Commission. The public review period will end on April 12, 2004 and the Public Hearing is tentatively scheduled for April 13, 2004. ' CARLSBAD PUBLIC HOUSING AGENCY PLAN March 11, 2004 Page 2 For general information, the following documents are referenced in the Plan and are incorporated as exhibits to the Plan: Document A - PHA Certifications of Compliance with the PHA Plans and Related Regulations: Board Resolution to Accompany the Streamlined Annual PHA Plan. Document B - Certification of PHA Plans Consistency with the Consolidated Plan Document C - Regional Analysis of Impediments to Fair Housing Choice in the San Diego Area, October 2000 Document D - City of Carlsbad Consolidated Plan, July 1,2003 to June 30, 2004 Document E - Administrative Plan for Section 8 Tenant-Based Rental Assistance under the Certificate and Voucher Programs, Revised March 1999 Document F - City of Carlsbad Family Self-Sufficiency Action Plan, December 1993 Document G - City of Carlsbad Single Audit Report on Federal Award Programs, Year ended June 30,2003 Document H - Results of latest Section 8 Management Assessment System (S EMAP) IV. RECOMMENnATIOM Staff recommends that the Housing Commission adopt Resolution No. 2004-001, recommending that the Housing and Redevelopment Commission approve the PHA Annual Plan for Fiscal Year 2004 for submission to the U.S. Department of Housing and Urban Development. EXHlBlTS 1. 2. 3. Housing Commission Resolution No. 2004-001 Annual PHA Plan for Fiscal Year 2004 with Attachments Exhibits A-H to PHA Plans (on file at: City Hall - City Clerk’s Office, Community Development Department - Planning Counter, and Housing and Redevelopment Department - Lobby) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HOUSING COMMISSION RESOLUTION NO. 2004-001 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING APPROVAL OF THE CARLSBAD ANNUAL PUBLIC HOUSING AGENCY (PHA) PLAN FOR FISCAL YEAR 2004 AND AUTHORIZATION TO SUBMIT TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the Housing and Redevelopment Department administers the Section 8 Tenant-Based Rental Assistance Program for the City of Carlsbad’s Public Housing Agency (P”; and WHEREAS, the U.S. Department of Housing and Urban Development (HUD) has issued regulations requiring PHAs to submit 5-Year and Annual Plans consistent with the City of Carlsbad’s Consolidated Plan and local objectives; and WHEREAS, federal regulations provide that the 5-Year and Annual Plans must be adopted by the Board of Commissioners of the Housing Agency and submitted to the U.S. Department of Housing and Urban Development. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. That based on the information provided within the Housing Commission Staff Report, the Housing Commission ADOPTS Resolution No. 2004-001, recommending to the Housing and Redevelopment Commission APPROVAL of the Carlsbad Annual PHA Plan for Fiscal Year 2004 and authorization to submit to the U.S. Department of Housing and Urban Development. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3. The Housing Commission hereby recommends that the Housing and Redevelopment Director be authorized to execute all appropriate documents required for the submittal of said Annual PHA Plan. PASSED, APPROVED, AND ADOPTED, at a meeting of the Housing Commission of the City of Carlsbad, California, held on the 11th day of March 2004, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: EDWARD SCARPELLI, CHAIRPERSON CARLSBAD HOUSING COMMISSION DEBORAH K. FOUNTAIN HOUSING AND REDEVELOPMENT DIRECTOR HC RESO. NO. 2004-001 PAGE 2 PHA Plans U.S. Department of Housing and Urban Development OMB No. 2577-0226 (exp. 05/3 1/2006) Streamlined Annual Version Housing Office of Public and Indian This infomation collection is authorized by Section 51 1 of the Quality Housing and Work Responsibility Act, which added a new section 5A to the U.S. Housing Act of 1937 that introduced 5-vear and annual PHA Plans. The full PHA Dlan Drovides a ready source .~ for interested parties to locatebasic PHA policies, rules, and requirements concerning the PHA’S operations, programs, and services, and informs HUD, families served by the PHA, and members of the public of the PHA’s mission and shategies for serving the needs of low-income and very low-income families. This form allows eligible PHAs to make a streamlined annual Plan submission to HUD consistent with HUD’L efforts to provide regulatory relief for certain types of PHAs. Public reporting burden for this information collection is estimated to average 11.7 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect this information and respondents are not required to complete this form, unless it displays a currently valid OMB Control Number. Privacy Act Notice. The United States Department of Housing and Urban Development, Federal Housing Administration, is authorized to solicit the information requested in this form by virtue of Title 12, U.S. Code, Section 1701 et seq., and regulations promulgated there under at Title 12, Code of Federal Regulations. Information in PHA plans is publicly available. Streamlined Annual PHA Plan for Fiscal Year: 2004 PHA Name: Carlsbad Housing Agency NOTE: This PHA Plan template (HUD-50075-SA) is to be completed in accordance with instructions contained in previous Notices PIH 99-33 (HA), 99-51 (HA), 2000-22 (HA), 2000-36 (HA), 2000-43 (HA), 2001-4 (HA), 2001-26 (HA), 2003-7 (HA), and any related notices HUD may subsequently issue. form HUD-50075-SA (4/30/2003) PHA Name: Carlsbad Housing Agency HACode: CA077 Streamlined Annual Plan for Fiscal Year 2004 Streamlined Annual PHA Plan Agency Identification PHA Name: Carlsbad Housing Agency PHA Number: CA077 PHA Fiscal Year Beginning: (mdyyyy) 07/2004 PHA Programs Administered: OPublic Housing and Section 8 Number of public housing units: Number of S8 units: [XISection 8 Only OPublic Housing Only Number of S8 units: 703 Number of public housing units: UPHA Consortia: (check box if submitting a joint PHA Plan and complete table) PHA Plan Contact Information: Name: Roberta “Bobbi” Nunn Phone: 760/434-2816 TDD: 760/434-8113 Email (if available): bnunn@ci.carlsbad.ca.us Public Access to Information Information regarding any activities outlined in this plan can be obtained by contacting: (select all that apply) PHA’s main administrative office 0 PHA’s development management offices Display Locations For PHA Plans and Supporting Documents The PHA Plan revised policies or program changes (including attachments) are available for public review and inspection. IXI Yes 0 No. If yes, select all that apply: 0 PHA development management ofices Main administrative office of the PHA - 2965 Roosevelt Street, Suite B, Carlsbad Main administrative office of the local, county or State government PHA website - www.ci.car1sbad.ca.us City of Carlsbad, City Clerk - 1200 Carlsbad Village Drive, Carlsbad Georgina Cole Library - 1250 Carisbad Village Drive, CarIsbad Main Library - 1775 Dove Lane, Carlsbad IXI Public library Page 2 of 18 form HUDb0075SA (04/30/2003) PHA Name: Carlsbad Housing Agency HACode: CAO77 Streamlined Annual Plan for Fiscal Year 2004 Other (list below) 0 0 Senior Center - 799 Pine Avenue, Carlsbad Faraday Center, Planning Department - 1635 Faraday Avenue, Carlsbad PHA Plan Supporting Documents are available for inspection at: (select all that apply) 0 PHA development management offices Main business office of the PHA- 2965 Roosevelt Street, Suite B, Carlsbad Other (list below) 0 0 City of Carlsbad, City Clerk - 1200 Carlsbad Village Drive, Carlsbad Faraday Center, Planning Department - 1635 Faraday Avenue, Carlsbad Page 3 of 18 form HUD-5007SSA (04/30/2003) PHA Name: Carlsbad Housing Agency HACode: CA077 Streamlined Annual Plan for Fiscal Year 2004 1. 2. 3. 4. 5. 6. 7. 8. Streamlined Annual PHA Plan Fiscal Year 2004 [24 CFR Part 903.12(c)] Table of Contents [24 CFR 903.7(r)] Provide a table of contents for the Plan, including applicable additional requirements, and a list of supporting documents available for public inspection. Table of Contents Pape # Site-Based Waiting List Policies NIA Capital Improvement Needs NIA Section 8(y) Homeownership NIA 10 10 NIA NIA Project-Based Voucher Programs 9 PHA Statement of Consistency with Consolidated Plan. Supporting Documents Available for Review Capital Fund Program Annual Statement/Performance and Evaluation Report Capital Fund Program 5-Year Action Plan Attachments Attachment 1 - PHA Management Organizational Chart Attachment 2 - Carlsbad Housing and Redevelopment Department Strategic Assessment Report - Attachment 3 - City of Carlsbad Housing and Redevelopment Department Mission Statement Executive Summary Page 4 of 18 form HUD-50075SA (04/30/2003) PHA Name: Carlsbad Housing Agency HACode: CAO77 Streamlined Annual Plan for Fiscal Year 2004 A. PHA PLAN COMPONENTS 0 0 0 0 IXI IXI 0 0 1. Site-Based Waiting List Policies 903.7(b)(2) Policies on Eligibility, Selection, and Admissions 2. Capital Improvement Needs 903.7(g) Statement of Capital Improvements Needed 3. Section 8(y) Homeownership 903.7(k)(l)(i) Statement of Homeownership Programs 4. Project-Based Voucher Programs 5. PHA Statement of Consistency with Consolidated Plan. Complete only if PHA has changed any policies, programs, or plan components &om its last Annual Plan. 6. Supporting Documents Available for Review 7. Capital Fund Program and Capital Fund Program Replacement Housing Factor, Annual Statemenflerformance and Evaluation Report 8. Capital Fund Program 5-Year Action Plan B. SEPARATE HARD COPY SUBMISSIONS TO LOCAL HUD FIELD OFFICE Form HUD-50076, PHA Certifications of Compliance with the PHA Plans and Related Remilatiom: Board Resolution to Accomuanv the Streamlined Annual Plan identifjrlng policies or programs the PHA has revised since submission of its last Annual Plan, and including Civil Rights certifications and assurances the changed policies were presented to the Resident Advisory Board for review and comment, approved by the PHA governing board, and made available for review and inspection at the PHA’s Form HUD-50070, Certification for a Drug-Free Workplace; Form HUD-50071 , Certification of Pavments to Influence Federal Transactions; and Form SF-LLL &SF-LLLa, Disclosure qf Lobevina Activities. Page 5 of 18 form HUDSOO7SISSA (04/30/2003) PHA Name: Carlsbad Housing Agency HACode: CA077 Streamlined Annual Plan for Fiscal Year 2004 1. Site-Based Waiting Lists (Eligibility, Selection, Admissions Policies) [24 CFR Part 903.12(c), 903.7@)(2)] Exemptions: Section 8 only PHAs are not required to complete this component. A. Site-Based Waiting Lists-Previous Year ~- 1. Has the PHA operated one or more site-based waiting lists in the previous year? If yes, complete the following table; if not skip to B. Development Information: Site-Based Waiting Lists Date Initiated Initial mix of Racial, Ethnic or Disability ~ Demographics Current mix of Racial, Ethnic or Disability Demographics since Initiation of SBWL Percent change between initial and current mix of Racial, Ethnic, or Disability demographics I I I I I I 2. What is the number of site based waiting list developments to which families may apply at one time? 3. How many unit offers may an applicant turn down before being removed fi-om the site- based waiting list? 4. Yes No: Is the PHA the subject of any pending fair housing complaint by "D or any court order or settlement agreement? If yes, describe the order, agreement or complaint and describe how use of a site-based waiting list will not violate or be inconsistent with the order, agreement or complaint below: B. Site-Based Waiting Lists - Coming Year If the PHA plans to operate one or more site-based waiting lists in the coming year, answer each of the following questions; if not, skip to next component. 1. How many site-based waiting lists will the PHA operate in the coming year? 2. 0 Yes No: Are any or all of the PHA's site-based waiting lists new for the upcoming year (that is, they are not part of a previously-HUD-approved site based waiting list plan)? If yes, how many lists? Page6of18 form HUD-50075-SA (04/30/2003) PHA Name: Carlsbad Housing Agency HACode: CA077 Streamlined Annual Plan for Fiscal Year 2004 3. Yes No: May families be on more than one list simultaneously If yes, how many lists? 4. Where can interested persons obtain more information about and sign up to be on the site- based waiting lists (select all that apply)? PHA main administrative ofice All PHA development management offices Management offices at developments with site-based waiting lists At the development to which they would like to apply Other (list below) 0 0 0 0 0 2. Capital Improvement Needs [24 CFR Part 903.12 (c), 903.7 (g)] Exemptions: Section 8 only PHAs are not required to complete this component. A. Capital Fund Program 1. 0 Yes 0 No Does the PHA plan to participate in the Capital Fund Program in the upcoming year? If yes, complete items 7 and 8 of this template (Capital Fund Program tables). If no, skip to B. 2. Yes 0 No: Does the PHA propose to use any portion of its CFP funds to repay debt incurred to finance capital improvements? If so, the PHA must identify in its annual and 5-year capital plans the development(s) where such improvements will be made and show both how the proceeds of the financing will be used and the amount of the annual payments required servicing the debt. (Note that separate HUD approval is required for such financing activities.). B. Applicability: All PHAs administering public housing. Identify any approved HOPE VI andor public housing development or replacement activities not described in the Capital Fund Program Annual Statement. HOPE VI and Public Housing Development and Replacement Activities (Non- Capital Fund) 1. 0 Yes 0 No: Has the PHA received a HOPE VI revitalization grant? (if no, skip to #3; if yes, provide responses to the items on the chart located on the next page, copying and completing as many times as necessary). 2. Status of HOPE VI revitalization grant(s): Page 7 of 18 form HUD-50075SA (04/30/2003) PHA Name: Carlsbad Housing Agency HACode: CA077 Streamlined Annual Plan for Fiscal Year 2004 HOPE VI Revitalization Grant Status a. Development Name: b. Development Number: c. Status of Grant: ORevitalization Plan under development ORevitalization Plan submitted, pending approval ORevitalization Plan approved OActivities pursuant to an approved Revitalization Plan underway 3. 0 Yes 0 No: Does the PHA expect to apply for a HOPE VI Revitalization grant in the Plan year? If yes, list development name(s) below: 4. 0 Yes No: Will the PHA be engaging in any mixed-finance development activities for public housing in the Plan year? If yes, list developments or activities below: 5. Yes 0 No: Will the PHA be conducting any other public housing development or replacement activities not discussed in the Capital Fund Program Annual Statement? If yes, list developments or activities below: 3. Section 8 Tenant Based Assistance--Section 8(v) Homeownership Program able 3.7( 1. Yes No: Does the PHA plan to administer a Section 8 Homeownership program pursuant to Section 8(y) of the U.S.H.A. of 1937, as implemented by 24 CFR part 982 ? (If “No”, skip to the next component; if “yes”, complete each program description below (copy and complete questions for each program identified.) 2. Program Description: a. Size of Program Yes 0 No: Will the PHA limit the number of families participating in the Section 8 homeownership option? If the answer to the question above was yes, what is the maximum number of participants this fiscal year? b. PHA-established eligibility criteria Yes No: Will the PHA’s program have eligibility criteria for participation in its Section 8 Homeownership Option program in addition to HUD criteria? If yes, list criteria: Page 8 of 18 form HUD-50075SA (04/30/2003) PHA Name: Carlsbad Housing Agency HACode: CA077 Streamlined Annual Plan for Fiscal Year 2004 c. What actions will the PHA undertake to implement the program this year (list)? 3. Capacity of the PHA to Administer a Section 8 Homeownership Program: The PHA has demonstrated its capacity to administer the program by (select all that apply): 0 Establishing a minimum homeowner down payment requirement of at least 3 percent of purchase price and requiring that at least 1 percent of the purchase price come from the family’s resources. Requiring that financing for purchase of a home under its Section 8 homeownership Will be provided, insured or guaranteed by the state or Federal govement; comply with secondary mortgage market underwriting requirements; or comply with generally accepted private sector underwriting standards. Partnering with a qualified agency or agencies to administer the program (list name@) and years of experience below): Demonstrating that it has other relevant experience (list experience below): 0 [7 4. Use of the Proiect-Based Voucher Program Intent to Use Project-Based Assistance Yes No: Does the PHA plan to “project-base” any tenant-based Section 8 vouchers in the coming year? If the answer is “no,” go to the next component. If yes, answer the following questions. 1. Yes 0 No: Are there circumstances indicating that the project basing of the units, rather than tenant-basing of the same amount of assistance is an appropriate option? If yes, check which circumstances apply: 0 other (describe below:) low utilization rate for vouchers due to lack of suitable rental units access to neighborhoods outside of high poverty areas o Ensure and maintain financial feasibility of affordable developments o Maintain affordability of Senior affordable apartment complex 2. Indicate the number of units and general location of units (e.g. eligible census tracts or smaller areas within eligible census tracts): 0 Approximately 50 units within the 179.00 census tract - 3363 Tyler Street, Carlsbad - 2578 Roosevelt Street, Carlsbad Page 9 of 18 form HUD-50075SA (04/30/2003) PHA Name.: Carlsbad Housing Agency HACode: CA077 Applicable Supporting Document & On Streamlined Annual Plan for Fiscal Year 2004 Related Plan Component 5. PHA Statement of Consistency with the Consolidated Plan Display NIA Document A Document B Document C [24 CFR Part 903.151 For each applicable Consolidated Plan, make the following statement (copy questions as many times as necessary) only if the PHA has provided a certification-listing program or policy changes from its last Annual Plan submission. PHA Certifications of Compliance with the PHA Plans and Related Regulations and Board Resolution to Accompany the Standard Annual, Standard Five- Year, and Streamlined Five-YearIAnnual Plans; PHA Certifications of Compliance with the PHA Plans and Related Regulations and Board Resolution to Accompany the Streamlined Annual Plan Certification by State or Local Oficial of PHA Plan Consistency with Consolidated Plan. Plans Fair Housing Documentation Supporting Fair Housing Certifications: Records reflecting that the PHA has examined its programs or proposed programs, 5 Year and Annual Plans Streamlined Annual P~s 5 Year and standard Annual 5 Year and Annual Plans 1. Consolidated Plan jurisdiction: (provide name here) 0 City of Carlsbad 2. The PHA has taken the following steps to ensure consistency of this PHA Plan with the Consolidated Plan for the jurisdiction: (select all that apply) IXI IXI 0 Other: (list below) The PHA has based its statement of needs of families on its waiting lists on the needs expressed in the Consolidated Plan/s. The PHA has participated in any consultation process organized and offered by the Consolidated Plan agency in the development of the Consolidated Plan. The PHA has consulted with the Consolidated Plan agency during the development of this PHA Plan. Activities to be undertaken by the PHA in the coming year are consistent with the initiatives contained in the Consolidated Plan. (list below) 3. The Consolidated Plan of the jurisdiction supports the PHA Plan with the following actions and commitments: (describe below) Allocation of CDBG and HOME funds in support of Affordable Housing development and increasing the available affordable housing in the jurisdiction. Provides funding to numerous non-profit agencies to support a variety of Continuum of Care services. 0 0 6. Supporting: Documents Available for Review for Streamlined Annual PHA - Plans PHAs are to indicate which documents are available for public review by placing a mark in the “Applicable & On Display” column in the appropriate rows. All listed documents must be on display if applicable to the program activities conducted by the PHA. Page 10 of 18 form HUD-50075SA (04/30/2003) PHA Name: Carlsbad Housing Agency HACode: CA077 Applicable 8~ On Display Streamlined Annual Pian for Fiscal Year 2004 Supporting Document identified any impediments to fair housing choice in those programs, addressed NIA NIA Document D NIA Public Housing Admissions and (Continued) Occupancy Policy (A&O/ACOP), which includes the Tenant Selection and Assignment Plan [TSAP] and the Site- Based Waiting List Procedure. Deconcentration Income Analysis housing that require the PHA’s involvement. Housing Needs Statement of the Consolidated Plan for the jurisdiction(s) in which the PHA is located and any additional backup data to support statement of housing needs for families on the PHA’s public housing and Section 8 tenant- based waiting lists. Most recent board-approved operating budget for the public housing program NIA Any policy governing occupancy of Police Officers and Over-Income Tenants in Public Housing. Check here if included in the public housing A&O Policy. Document E NIA NIA Document E NIA N/A , NIA Section 8 Administrative Plan Public housing rent determination policies, including the method for setting public housing flat rents. [7 Check here if included in the public housing A & 0 Policy. Schedule of flat rents offered at each public housing development. 0 Check here if included in the public housing A & 0 Policy. Section 8 rent determination (payment standard) policies (if included in plan, not necessary as a supporting document) and written analysis of Section 8 payment standard policies. Check here if included in Section 8 Administrative Plan. Public housing management and maintenance policy documents, including policies for the prevention or eradication of pest infestation (including cockroach infestation). Results of latest Public Housing Assessment System (PHAS) Assessment (or other applicable assessment). Follow-up Plan to Results of the PHAS Resident Satisfaction Survey (if Document H Results of latest Section 8 Management Assessment System (SEMAP) Related Plan Component Document E NIA Document E NIA NIA NIA NIA Annual Plan: Housing Needs Any policies governing any Section 8 special housing types IXI Check here if included in Section 8 Administrative Plan Public housing grievance procedures 0 Check here if included in the public housing A & 0 Policy Section 8 informal review and hearing procedures. Check here if included in Section 8 Administrative Plan. The Capital FundIComprehensive Grant Program Annual Statement /Performance and Evaluation Report for any active grant year. Most recent CIAP BudgetfProgress Report (HUD 52825) for any active CIAP grants. Approved HOPE VI applications or, if more recent, approved or submitted HOPE VI Revitalization Plans, or any other approved proposal for development of public housing. Self-evaluation, Needs Assessment and Transition Plan required by regulations Annual Plan: Financial Resources Annual Plan: Eligibility, Selection, and Admissions Policies Annual Plan: Eligibility, Selection, and Admissions Policies Annual Plan: Eligibility, Selection, and Admissions Policies Annual Plan: Eligibility, Selection, and Admissions Policies Annual Plan: Rent Determination Annual Plan: Rent Determination Annual Plan: Rent Determination Annual Plan: Operations and Maintenance Annual Plan: Management and Operations Annual Plan: Operations and Maintenance and Community Service & Self- Sufficiency Annual Plan: Management and Operations Annual Plan: Operations and Maintenance Annual Plan: Grievance Procedures Annual Plan: Grievance Procedures Annual Plan: Capital Needs Annual Plan: Capital Needs hnual Plan: Capital Needs ~~~ Annual Plan: Capital Needs Page 11 of 18 form HUD-50075SA (04/30/2003) PHA Name: Carlsbad Housing Agency HACode: CA077 Supporting Document Streamlined Annual Plan for Fiscal Year 2004 Related Plan Component Applicable & On Display I imulementing Section 504 of the Rehabilitation Act and the Americans with NIA NIA NIA NIA NIA NIA NIA NIA Document F NIA NIA Document G NIA NIA Disabilities ict. See PIH Notice 99-52 (HA). Approved or submitted applications for demolition and/or disposition of public housing. Approved or submitted applications for designation of public housing (Designated Housing Plans). Approved or submitted assessments of reasonable revitalization of public housing and approved or submitted conversion plans prepared pursuant to section 202 of the 1996 HUD Appropriations Act, Section 22 of the US Housing Act of 1937, or Section 33 of theUSHousing Act of 1937. Documentation for required Initial Assessment and any additional information required by HUD for Goluntary Conversion. Approved or submitted public housing homeownership programdplans. Policies governing any Section 8 Homeownership program (Section of the Section 8 Administrative Plan) Public Housing Communiw Service PolicyPromams 0 Check hereif included in Public Housing A& 0 Policy Cooperative agreement between the PHA and the TANF agency and between the PHA and local employment and training service agencies. FSS Action Plan(s) for public housing and/or Section 8. Section 3 documentation required by 24 CFR Part 135, Subpart E for public housing. Most recent self-sufficiency (ED/SS, TOP or ROSS or other resident services grant) grant program reports for public housing. Policy on Ownership of Pets in Public Housing Family Developments (as required by regulation at 24 CFR Part 960, Subpart G). 0 Check here if included in the public housing A & 0 Policy. The results of the most recent fiscal year audit of the PHA conducted under the Single Audit Act as implemented by OMB Circular A-133, the results of that audit and the PHA’s response to any findings. Other supporting documents (optional) (list individually; use as many lines as necessary) Consortium agreement(s) and for Consortium Joint PHA Plans Q&: Certification that consortium agreement is in compliance with 24 CFR Part 943 pursuant to an opinion of counsel on file and available for inspection. Annual Plan: Demolition and Disposition Annual Plan: Designation of Public Housing Annual Plan: Conversion of Public Housing Annual Plan: Voluntary Conversion of Public Housing Annual Plan: Homeownership Annual Plan: Homeownership Annual Plan: Community Service & Self-Sufficiency Annual Plan: Community Service & Self-Sufficiency Annual Plan: Community Service & Self-sufficiency Annual Plan: Community Service & Self-Sufficiency Annual Plan: Community Service & Self-sufficiency Annual Plan: Pet Policy Annual Plan: Annual Audit (specify as needed) Joint Annual PHA Plan for Consortia: Agency Identification and Annual Management and Operations form HUD-50075SA (04/30/2003) Page 12 of 18 n u Y u c, c o 6 .. ATTACHMENT 1 0' 3; 8 cn U "1 2 - - r------- D cz 3 3. -. 2 $ 'p 0 Y I I f3 0 0 A M E' 0 e m City of Carlsbad ATTACHMENT 2 Housing and Redevelopment Department HELPING PEOPLE TO ACHIEVE THEIR DREAMS BUSINESS & PROPERTY DEVELOPMENT 1 ENHANCED QUALITY OF LIFE STRONG COMMUNITY SPIRIT STRATEGIC ASSESSMENT REPORT MAY 2003 HOUSING AND REDEVELOPMENT DEPARTMENT STRATEGIC ASSESSMENT A Note from the Director ... For the Housing and Redevelopment Department, helping people is the most important and rewarding part of the job. We help people by promoting business and property development, providing affordable housing, enhancing opportunities for improvements to quality of life, and assisting to create a strong community spirit. To ensure that we are helping people to the best of our abilities and resources, the Department completed a Strategic Assessment in 2002/2003. Our goal was to evaluate our current efforts and then to identify priorities for action today as well as to develop a plan for future years. The Department felt that this was important to ensure that staff is/will be spending its time on appropriate activities/programs that best meet the quality of life needs of our customers, or stakeholders. All staff within the Housing and Redevelopment Department participated in this Strategic Assessment. The completion of the Assessment also involved a spirit of cooperation between Department Staff and representatives of its stakeholder groups. It was an interesting and inspiring process of discovery. The following report outlines the results of our Strategic Assessment as well as the manner in which the Carlsbad Housing and Redevelopment Department intends to continue its efforts to implement its programs and remain successful in its achievements. In our Vision for the future, the Carlsbad Housing and Redevelopment Department is recognized by the community and industry as a highly effective and compassionate organization that makes a difference in people's lives. This statement of our future will inspire us to truly be the best that we can be and to provide the very best to the Carlsbad community through our efforts. DEBBIE FOUNTAIN Strategic Assessment Page 2 Housing and Redevelopment Department May, 2003 CARLSBAD HOUSING AND REDEVELOPMENT DEPARTMENT STRATEGIC ASSESSMENT EXECUTIVE SUMMARY Vision : Mission : Values: Target Iss u es : The Carlsbad Housing and Redevelopment Department is recognized by the community and industry as a highly effective and compassionate organization that makes a difference in people’s lives. The Carlsbad Housing and Redevelopment Department helps people to achieve their dreams by partnering with the community to provide excellent places to live, operate a business, receive services, shop and enjoy a top quality lifestyle. The following seven (7) qualities are what we value most in the delivery of services from the Department: . Compassion rn Integrity/Accountability . Respect . Team-orientation rn Empowerment . Fairness . Fostering Positive Result The key target issuesheeds identified for each of the stakeholder focus groups are illustrated below. /----.. revitalization of redevelopment assistance REDEVELOPMENT DEPARTMENT Strategic Assessment Page 4 Housing and Redevelopment Department May, 2003 Top Priority Strategic Goals and Focused Initiatives: GoaYInitiative #1: Continue efforts to establish Carlsbad Village as a quality shopping, living and working environment. la. Encourage/facilitate private development within Village through streamlined redevelopment permit process. 1 b. Focus marketing and other actions on redevelopment/revitalization of North State Street. 1 c. Prepare and initiate implementation of Redevelopment Operations Strategy to address “life” after expiration of Village Redevelopment Plan. 1 d. Increase city-owned public parking facilities. GoaVInitiative #2: Eliminate blighting influences and facilitate revitalization of South Carlsbad Coastal Redevelopment Area. 2a. Complete and initiate Land Use Strategy and Vision Statement for Ponto Area/Planning Area 3. 2b. Process amendment to SCCRA Redevelopment Plan to allow for construction of desalination plant within boundaries of area. GoaVInitiative #3: Increase inventory and/or opportunities for affordable housing within Carlsbad for low income households. 3a. Enhance Housing and Redevelopment’s role in processing of affordable housing projects to facilitate faster processing and construction of additional affordable housing units. 3b. Identify new opportunities for increasing affordable housing opportunities through acquisition and rehabilitation, new construction, or other programs. 3c. Continue efforts to streamline Rental Assistance Program to more fully utilize existing vouchers. GoaVInitiative #4: Meet basic needs of low income households through partnerships with outside social service agencies. 4a. Continue implementation of CDBGHOME Program to provide funding to social service agencies and housing programs. 4b. Ensure completion of CDBG/HOME projects in timely manner to maintain full compliance with program regulations/mandates. Strategic Assessment Housing and Redevelopment Department May, 2003 Page 5 Goannitiative #5: Identify best practices in management and implementation of Department 5a. 5b. 5c. 5d. 5e. 5 f. Programs to ensure highly effective and efficient operations. Provide time management training to staff to allow for more effective and efficient operation of Department programs/projects. Provide training to staff to help with customer service issues of concern. Assist staff to develop enhanced skills for providing information and responding to inquiries in a more time efficient manner. Enhancehncrease use of technology for efficiency purposes and to provide better information to customers. Implement program for cross training staff. Revise referral procedures to enhance customer service while reducing staff time requirements. Enhance communication with stakeholders. Key Success Factors: + New developmentlredevelopment projects are approved for the Village Area, and stakeholders report high levels of satisfaction with the processing of related permits. Vision and marketing efforts result in new developer contacts for potential redevelopment projects in the North State Street area of the Village. + Redevelopment Operations Strategy is adopted and implementation is initiated to allow for smooth transition to new “life” after expiration of Village Redevelopment Plan. + New public parking opportunities are provided which increase the total number of parking spaces available within the Village Area. + Completion of an economic analysis indicates improvements to the redevelopment areas (i.e., decreasing commercial vacancy rates, increasing property values). + New Land Use Strategy and Vision Statement for South Carlsbad Coastal Redevelopment Area and related implementation activities result in proposals for new development projects. City has its financial and water reliability needs met through negotiations for construction of new desalination plant in South Carlsbad Coastal Redevelopment Area. + Stakeholders report high level of satisfaction with efforts to process permits for new affordable housing projects in Carlsbad. Strategic Assessment Page 6 Housing and Redevelopment Department May, 2003 + New feasible opportunities are identified for increasing affordable housing opportunities. + The Rental Assistance Program receives a “high performer” assessment by the US Department of Housing and Urban Development by more fully utilizing all of its existing vouchers and maintaining at least a 95% lease-up rate, as well as maintaining full compliance with all applicable program regulations. + Participants report a high level of satisfaction with the difference made in their lives as a result of their receipt of assistance through one or more Department programs. + Stakeholders report high level of satisfaction with administration of the City’s CDBG/HOME Program, and US Department of Housing and Urban Development finds that City is in full compliance with all applicable regulations for program, including the timely expenditure of funds. Staff report increased sense of accomplishment with the services they provide, and acquisition of skills necessary to more effectively and efficiently provide Department services. City Manager and City Council both report a sense of accomplishment with programs administered by the Department: Strategic Assessment Page 7 Housing and Redevelopment Department May, 2003 ATTACHMENT 3 City of Carlsbad Housing and Redevelopment Department * Rental Assistance *Homebuyers Assistance * New Construction * Rehabilitation *Social Services * Family Self-Sufficiency *Career Development En Hun cing Opportunities *New Products *State Funds *Federal Funds --- rr..