HomeMy WebLinkAbout2021-08-12; Housing Commission; Resolution 2021-005RESOLUTION NO. 2021-005
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD,
CALIFORNIA RECOMMENDING THAT THE CITY COUNCIL APPROVE A
$3,100,000 LOAN FROM THE HOUSING TRUST FUND TO BRIDGE HOUSING
FOR THE AVIARA APARTMENTS AFFORDABLE HOUSING PROJECT (DEV 2017-
0033)
EXHIBIT 2
WHEREAS, Summerhill Apartment Communities (Summerhill) sought the city's approval to build
a mixed-use project consisting of a total of 329 apartments, including 81 apartments affordable to
extremely low, low and moderate income households, on property commonly known as Aviara Farms
on an existing parcel at 1205 Aviara Parkway, south of Palomar Airport Road, north of Laurel Tree Lane,
and is bisected by Aviara Parkway, creating a west site and an east site; and
WHEREAS, the Planning Commission approved said development on Dec. 16, 2020, including
the 70-unit affordable apartments on the east site; and
WHEREAS, BRIDGE Housing has partnered with Summerhill to build the east site Aviara
affordable apartments; and
WHEREAS, BRIDGE Housing applied to the City of Carlsbad for $3,100,000 in Housing Trust Fund
assistance in order to improve project competitiveness for tax exempt bond and tax credit equity
financing, and to realize additional community benefits of the project by creating additional affordable
housing with deeper affordability than otherwise required by the city's inclusionary housing ordinance;
and
WHEREAS, the city's Affordable Housing Policy Team reviewed the financial assistance request
on July 28, 2021 to receive a presentation by Summerhill and BRIDGE representatives, discuss the
request and consider options. Subsequent discussions took place between staff and the development
team to discuss concerns and arrive at a mutually-supportable subsidy request, prior to presenting it
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.
EXHIBIT 2
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 BRIDGE Housing 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 69 apartment units affordable to extremely low, very low, and
low income households, plus one unrestricted manager's apartment. Specifically, the
assistance will result in _deeper affordability levels by providing seven extremely low
income (30% AMI), seven very low-income (50% AMI), and fifty-five low-income {60%
AMI) 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
$3,100,000 in financial assistance from the Housing Trust Fund to BRIDGE Housing,
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 BRIDGE Housing
receiving all other necessary funding commitments identified in the financial
assistance application including private loans, tax credit financing, master developer
con_tribution, 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 2
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
� � &-<-<S2--.-JO �GUYEN-CLEARY, CHAIRPERSON CARLSBAD HOUSING COMMISSION
ATTEST:
DAVID DE CORDOVA Housing Services Manager