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Home My WebLink About2021-10-12; City Council; Resolution 2021-231RESOLUTION NO. 2021-231 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE PURCHASE OF TWO AFFORDABLE HOUSING CREDITS AND APPROVAL OF AN AFFORDABLE HOUSING AGREEMENT TO SATISFY THE INCLUSIONARY HOUSING REQUIREMENT FOR THE OCEAN VIEW POINT PROJECT EXHIBIT 1 WHEREAS, Rincon Homes is under contract to build a thirteen-home subdivision, known as Ocean View Point, and is conditioned to provide two units affordable to low income households; and WHEREAS, the Planning Commission approved a Tentative Map for said development on June 19,2019;and WHEREAS, the home builder is seeking to satisfy the inclusionary housing requirement through the purchase of two affordable housing credits as opposed to building on site, and WHEREAS, Carlsbad Municipal Code Chapter 21.85 allows the city to determine that an alternative to the construction of new inclusionary units is acceptable when it can be demonstrated by a developer that the city's housing goals would be better served by an alternative method; and WHEREAS, affordable housing credits from the Tavarua Apartments project in the northwest quadrant are available to purchase for this project; and WHEREAS, the city's Affordable Housing Policy Team reviewed the request on July 28, 2021, to discuss the request and consider options, prior to presenting it to the Housing Commis~ion for their consideration and recommendation to the City Council; and WHEREAS, the Housing Commission considered the request, staff evaluation and recommendation, and the testimony of all persons desiring to be heard on the matter at a special meeting on Sept. 9, 2021, and recommended that the City Council approve the request to purchase two affordable housing credits to satisfy their inclusionary housing requirement; and WHEREAS, the Housing Commission makes recommendations to the City Council for projects that alternatively meet inclusionary housing requirements set forth in 21.85 of the Carlsbad Municipal Code;and WHEREAS, Carlsbad Municipal Code Chapter 21.85 requires the developer of a project to receive approval of an Affordable Housing Agreement which details how the requirements of the lnclusionary Housing Ordinance shall be met. The City Council is the final decision maker of agreements when there is a request to satisfy the requirement through alternative methods. Oct. 12, 2021 Item #3 Page 5 of 53 Recording Requested by: City of Carlsbad When Recorded Mail to: City of Carlsbad City Clerk's Office Attn: City Clerk 1200 Carlsbad Village Drive Carlsbad, California 92008 (Space above for Recorder’s Use) AFFORDABLE HOUSING AGREEMENT (Purchase of Credits) THIS AFFORDABLE HOUSING AGREEMENT ("Agreement") is entered into this ______ day of ___________, 2021, by and between the CITY OF CARLSBAD, a municipal corporation (“City”) and RREG Investments Series LLC Series I045. (“Developer”), a California Limited Liability Corporation, with reference to the following: RECITALS A.Developer is the owner of certain real property in the City of Carlsbad, County of SanDiego, State of California, described in “Exhibit A”, which is attached hereto and incorporated herein by this reference, and which is the subject of a Tentative Map (CT15-07), which provides conditional approval of the construction of thirteen (13) single family dwelling units (“Project”). B.Chapter 21.85 of the Carlsbad Municipal Code requires that this Agreement shall beentered into between the City and the Developer as a means of satisfying the Developer’s affordable housing obligation, as such is defined under Chapter 21.85 of the Carlsbad Municipal Code. Planning Commission Resolution No. 7339 provides that the Affordable Housing Obligation of two (2) units (“Affordable Housing Obligation”) will be satisfied by the construction of the affordable housing obligation on the project site and concurrent with the project’s market rate units. Subsequent to approval of the project by the Planning Commission on June 19, 2019 and City Council on August 20, 2019, the City Council considered and approved a request on October 12, 2021 from the new property owner and developer (RREG Investments Series LLC Series I045) to purchase two (2) affordable housing credits in a combined, off-site affordable housing development (Tavarua Affordable Development) within the northwest quadrant of the city, as provided for in Chapter 21.85, Section 21.85.080, as an alternative to construction of the affordable housing obligation on the site of the market rate units. NOW, THEREFORE, incorporating the foregoing Recitals and in consideration of the mutual covenants contained herein, the parties agree as follows: 1.The Recitals are true and correct. Attachment A Oct. 12, 2021 Item #3 Page 7 of 53 2. THAT SATISFACTION OF DEVELOPER’S AFFORDABLE HOUSING REQUIREMENT WILL BE BY THE PURCHASE OF AFFORDABLE HOUSING CREDITS. (a) Performance under this Agreement satisfies the Developers’ obligation for affordable housing under Chapter 21.85 of the Carlsbad Municipal Code as applied to the land covered by Carlsbad Tract No.15-07 (CT15-07) by reason of the approvals of the Tentative Map of CT 15-07, including Condition No. 15 of Planning Commission Resolution No. 7339, and any other applicable approval. (b) The Developer shall purchase two (2) affordable housing credits in the Tavarua Affordable Housing development (within the Northwest Quadrant of the City of Carlsbad), based on availability, for an amount established by resolution of the City Council and as required by Condition No. 15 of Planning Commission Resolution No. 7339 no later than two (2) years following City Council approval of this Agreement. The credit fee shall be paid prior to the Developer receiving any building permits for the project. The subject housing credits will be reserved for said Developer for no longer than (2) years following City Council approval of this Agreement. If the Developer does not purchase the subject credits within two (2) years of the date of this Agreement, the City shall make the credits available to one or more alternate developers and the Developer for this Agreement shall then be required to satisfy its inclusionary obligation through alternate methods as approved by the City. 3. REMEDIES Failure by the Developer to perform in accordance with this Agreement will constitute failure to satisfy the requirements of Chapter 21.85 of the Carlsbad Municipal Code and Condition No. 15 of Planning Commission Resolution No. 7339. Such failure will allow the City to exercise any and all remedies available to it including but not limited to withholding the issuance of building permits for the lots shown on Carlsbad Tract No. 15-07 (CT15-07). 4. HOLD HARMLESS Developer will indemnify and hold harmless (without limit as to amount) City and its elected officials, officers, employees and agents in their official capacity (hereinafter collectively referred to as “Indemnitees”), and any of them, from and against all loss, all risk of loss and all damage (including attorneys’ fees and expenses) sustained or incurred because of or by reason of any and all claims, demands, suits, or actions, obtained, allegedly caused by, arising out of or pertaining in any manner to Developer’s actions or defaults pursuant to this Agreement, and shall protect and defend Indemnitees, and any of them with respect thereto. This provision shall survive the term of this Agreement. 5. NOTICES All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registed or certified mail, return receipt requested to the party to receive such notice at the address set forth below: TO THE CITY: City of Carlsbad Housing & Homeless Services Department Attn: Housing & Homeless Services Director 1200 Carlsbad Village Drive Carlsbad, California 92008 Oct. 12, 2021 Item #3 Page 8 of 53 TO THE DEVELOPER: RREG Investments Series LLC Series I045 Attn: Cameron St. Clair, Principal 5315 Avenida Encinas, Suite 200 Carlsbad, Ca. 92008 Any party may change the address to which notices are to be sent by notifying the other parties of the new address, in the manner set forth above. 6. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between the parties and no modification hereof shall be binding unless reduced to writing and signed by the parties hereto. 7. DURATION OF AGREEMENT This Agreement shall terminate and become null and void upon the payment of the affordable housing credits, or the repeal, termination, or modification of any applicable ordinance which act would render the Affordable Housing Obligation unnecessary or unenforceable. 8. SUCCESSORS This Agreement shall benefit and bind the Developer and any successive owners of affordable housing lots. THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK Oct. 12, 2021 Item #3 Page 9 of 53 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY Lots 1 through 7, inclusive, of City of Carlsbad Tract No. CT 02-06, in the City of Carlsbad, County of San Diego, State of California, according to map thereof No. 16265, filed in the Office of the County Recorder of San Diego County on April 27, 2018. Oct. 12, 2021 Item #3 Page 11 of 53