HomeMy WebLinkAbout2021-08-12; Housing Commission; Resolution 2021-004RESOLUTION NO. 2021-004
, A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD,
CALIFORNIA RECOMMENDING THAT THE CITY COUNCIL APPROVE A
$650,000 LOAN FROM THE HOUSING TRUST FUND TO USA PROPERTIES
FUND, INC. FOR THE MARJA ACRES SENIOR APARTMENTS (DEV 16-038)
EXHIBIT 1
WHEREAS, NUWI Carlsbad, LLC (New Urban West or NUW) sought the city's approval to build a
mixed-use project consisting of 248 townhomes, ~6 affordable senior apartments (plus an unrestricted
manager's unit) and 10,000 square feet for specialty commercial uses located on property commonly
known as Marja Acres, on the south side of El Camino Real just east of Kelly Road; and
WHEREAS, the City Council approved said development, including the affordable senior
apartments on Nov. 3. 2020; and
WHEREAS, USA Properties Fund, Inc. has partnered with NUW to build the Marja Acres
affordable senior apartments; and
WHEREAS, USA Properties Fund, Inc. applied to the City of Carlsbad for $650,000 in Housing
Trust Fund assistance in order to create additional public benefit by serving extremely low-income
seniors and improve project competitiveness for tax exempt bo.nd and tax credit equity financing; _and
WHEREAS, the city's Affordable Housing Policy Team evaluated the financial assistance request
on April 28, 2021, and recommended that it be forwarded to the Housing Commission for their
consideration and recommendation to the City Council; and
WHEREAS, the Housing Commission considered the financial assistance request, staff
evaluation and recommendation, and the testimony of all persons desiring to be heard on the matter
at their regular meeting on Aug. 12, 2021.
NOW, THEREFORE, BE IT RESOLVED by the Housing Commission of the City of Carlsbad,
California, as follows:
1. That the above recitations are true and correct.
2. That the request for financial assistance from USA Properties Fund, Inc. is consistent
with the goals, objectives and programs of the City of Carlsbad's Housing Element, City
Council Policy No. 90 guidelines, and the city's Housing Trust Fund underwriting
practices.
3. That the request for financial assistance will assist the affordable housing developer in
constructing a total of 46 apartment units affordable to extremely low, very low, and
EXHIBIT 1
low income senior households, plus one unrestricted manager's apartment. Specifically,
the assistance will result in deeper affordability levels by providing five extremely low-
income {30% AMI), 36 very low-income {50% AMI), and five low-income {60% AMI)
senior apartments.
4. That, based on information provided in the Housing Commission staff report and
considering testimony of all persons desiring to be heard at the Aug. 12, 2021 public
meeting, the Housing Commission hereby recommends that the City Council approve
$650,000 in financial assistance from the Housing Trust Fund to USA Properties Fund,
Inc., subject to the following conditions:
a. The financial assistance shall be in the form of a residual receipts loan for a term of
55 years at three percent simple interest per annum. Said loan shall be secured by a
promissory note and deed of trust.
b. The financial assistance is conditional and contingent upon USA Properties Fund, Inc.
receiving all other necessary funding commitments identified in the financial
assistance application including private loans, tax credit financing, master developer
contribution, and deferred developer fees.
c. The city's commitment of funds will be maintained for a period of twenty-four
months upon City Council's approval. The funding commitment will expire at the end
of this term unless developer has secured all other necessary funding, has executed
a loan agreement with the city, and the project is ready to construct; or unless a time
extension is granted by the City Council.
EXHIBIT 1
PASSED, APPROVED AND ADOPTED at a Meeting of the Housing Commission of the City of
Carlsbad on the 12th day of August, 2021, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
COLE, CORTES-TORRES, EVANS, MANZANO AND NGUYEN-CLEARY
NONE
NONE
o~~~
JO~NGUYEN-CLEARY, CHAIRPERSON
CARLSBAD HOUSING COMMISSION
ATTEST:
DAVID DE CORDOVA
Housing Services Manager