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HomeMy WebLinkAbout2022-01-11; City Council; Resolution 2022-005RESOLUTION NO. 2022-005 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AN AFFORDABLE HOUSING AGREEMENT TO SATISFY THE AFFORDABLE HOUSING REQUIREMENT FOR THE PACIFIC WIND DEVELOPMENT (DEV 15-058) EXHIBIT :l WHEREAS, the developer of Pacific Wind Apartments has proposed to construct 89 apartment units affordable to lower-income households to satisfy their affordable housing obligation as required by Carlsbad Municipal Code Chapter 21.85 and Section 21.53.120; and WHEREAS, Planning Commission Resolution 7233 requires that the Developer shall enter into an Affordable Housing Agreement with the City to provide and deed restrict 92 dwelling units as affordable to lower-income households for 55 years, in accordance with the requirements and process set forth in Chapter 21.85 of the Carlsbad Municipal Code. Due to a lawsuit brought against the development and consistent with the related settlement agreement (dated, March 15, 2013) the project was subsequently reduced to 88 affordable apartments for lower income households (plus one on-site property manager unit). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the project is consistent with the goals and objectives of the City of Carlsbad's Housing Element, and the General Plan. 3. That the project will provide 88 apartment homes affordable to lower-income households (plus 1 non restricted manager's unit.) The project, therefore, can effectively serve the city's housing needs and priorities expressed in the Housing Element. 4. · That the Affordable Housing Agreement (Attachment A) is hereby approved. 5. That the City Council authorizes the City Manager, or designee, to prepare and execute - all documents related to the provisions of the Affordable Housing Agreement, subject to review and approval by the City Attorney. Jan. 11, 2022 Item #5 Page 6 of 21 RECORDING REQUESTED BY: City of Carlsbad WHEN RECORDED MAIL TO: City of Carlsbad Community Development Department I 200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: City Clerk This document is recorded at the r·equest and for the benefit of the City of Carlsbad, and isexempt from the payment of a recording fee pursuant to Government Code Sections 6103, 27383, and 27388.1 (Space above for Recorder's Use) AFFORDABLE HOUSING AGREEl\'IENT IMPOSING RESTRICTIONS ON REAL PROPERTY (DEVlS-058) This AFFORDABLE HOUSING AGREEMENT IMPOSING RESTRICTIONS ON REAL PROPERTY ("Agreement"), entered into this (<{&'-day of J~ · ~J.J-, by and between the CITY OF CARLSBAD, a municipal corporation ("City"), and HARDING STREET NEIGHBORS, LP, a California limited partnership ("Developer") is made with reference to the following: A. Developer is the owner of certain real property in the City of Carlsbad, in the Countyof San Diego, California ("Property") described in Exhibit "A", which is attached hereto and incorporated herein by this reference. B. Developer originally intended and received approval from the City to construct a total of 92 affordable apartments for lower income households on the Property ("Development"), plus a manager's unit on-site, which was subsequently reduced to 88 affordable apartments for lower income households (plus one on-site property manager unit) due to a lawsuit brought against the development on August 16, 2017 and related settlement agreement. The City originally approved the Site Development Plan (SDP 15-18) for the Development on April 19, 2017. The City issued the approval subject to certain conditions of approval ("Conditions of Approval"), including a condition that all units within the Development ( except for the on-site property manager unit) shall be affordable to lower income households which also satisfied the requirement for fifteen (15%) percent of the units in the Development to be affordable housing as required by the City's Inclusionary Housing Ordinance, Carlsbad Municipal Code ("CMC") Chapter 21. 85. C. Developer is required by the Conditions of Approval to enter into an Affordilble Housing Agreement as required and with the content specified by the City's Incfusi<:mary Housing Ordinance (CMC Chapter 21.85). This Agreement is that required Affordable 1603\11\3187955.5 . I CA 5/12/2011 Jan. 11, 2022 Item #5 Page 8 of 21 Housing Agreement pursuant to Section 21.85.140 of CMC Chapter 21.85, and shall be executed and recorded prior to the approval of any final or parcel map for the Property, or, where a map is not being processed, prior to issuance of building permits for any units in the Development. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. Satisfaction of Affordable Housing Obligation and Conditions of Approval. In order to satisfy the Conditions of Approval of Site Development Plan 15-18 (SDP 15-18), and the requirements of the City's Inclusionary Housing Ordinance (CMC Chapter 21.85) shall not be satisfied unless all of the units in the Development are constructed for the purpose of providing housi.Q.g to be affordable to lower-income households according to the schedule and terms contained herein ("Affordable Units"). A total of 89 Affordable Units will be constructed with approval of this Agreement. 2. Terms Governing Provision of Affordable Units. Provision of theAffordable Units shall be governed by the following terms: 2.1 Bedroom Count. The Affordable Units in the Development shall include 88 total units in the numbers and bedroom sizes indicated in "Exhibit B" to this Agreement. Not less than ten percent (10%) of all Affordable Units shall be three (3) bedroom units in compliance with CMC 21.85.010(A)(2). There shall be one additional unit for the on-site property manager; this unit is not an affordable unit. 2.2 Affordability Requirements. The Affordable Units shall be restricted to occupancy by households with incomes not exceeding 80% of the median incomefor San Diego County, adjusted for actual household size. Monthly rents of the Affordable Units shall not exceed 1/12 of 30% of 70% of the median household income for San Diego County, adjusted for assumed household size appropriate for the unit pursuant to this Agreement. For purposes of this Agreement, "Rent" shall include a utility allowance as established and adopted by the City of Carlsbad Housing Authority, as well as all requiredmonthly payments made by and on behalf of the tenant to the lessor in connection with use and occupancy of a housing unit and land and facilities associated therewith, including any separately charged fees, utility charges, or service charges assessed by the lessor and payable by the tenant (but notincluding fees or charges resulting from any default by the tenant or damage caused by thetenant, or fees or charges paid by the tenant to third party utilities or other providers). Median income figures shall be those determined by the United States Department of Housing and Urban Development from time to time, and as published by the California Department of Housing and Community Development. For the purposes of calculating the applicable rents, assumed household size shall be 2 persons for a I-bedroom unit; 3 persons for a 2-bedroom unit; and 5 persons for a 3-bedroom unit. With respect to each Affordable Unit, the affordability requirements of this Section 2.2 shall continue for 55 years from the date of issuance of a Certificate of Occupancy by the City for such unit. 1603\1 I\3187955.5 2 CA 5/i2i20 ii Jan. 11, 2022 Item #5 Page 9 of 21 3. Release of Building Permits. All of the building permits may be released at one time or in phased developed as determined by the Developer; all building permits are for affordable units plus one manager's unit, and there are no market rate units within the Development. 4. Compliance Report. Following completion of construction of the Affordable Units, a Compliance Report meeting the requirements of CMC Section 21.85.140 of the Inclusionary Ordinance, verifying compliance of all completed Affordable Units with the terms of this Agreement and certified as correct by a third-party, shall be submitted annually to the Housing and Homeless Services Director, commencing on the first Report Date that is twelve (12) months from the completion of construction of the Affordable Units. If similar reports on some or all of the Affordable Units are required for regulatory compliance with other financing programs, those reports may be deemed satisfactory for the purpose of this section by the Housing and Homeless Services _Director, with respect to the Affordable Units covered by such reports, provided that copies of those reports are provided on an annual basis to the Housing and Homeless Services Director with a third party certification addressed to the City. 5. :. Release of Subject Property from Agreement The covenants and conditions herein contained shall apply to and bind the Developer and its heirs, executors, administrators, successors, transferees, and assignees having or acquiring any right, title or interest in or to any part of Property and shall run with and burden the Property until terminated in accordance with the provisions of Section 12 hereof. The Developer shall expressly make the conditions and covenants contained in this Agreement a part of any deed or other instrument conveying any interest in such property. The burdens of this Agreement shall remain in full force and effect and recorded against theDevelopment for the 5 5-year duration of this Agreement. 6. Default Failure of the Developer to cure any default in the Developer's obligations under the terms of this Agreement within ninety (90) days after the delivery of a notice of default from the City (or where the default is of the nature which cannot be curedwithin such ninety (90) day period, the failure of the Developer to commence to cure such default within the ninety (90) day period or the Developer's failure to proceed diligently to complete the cure of such a default within a reasonable time period but in no event greater than one-hundred eighty (180) days) will constitute a failure to satisfy the Conditions of Approvalwith respect to the Property and the requirements of Chapter 21.85 of the CMC. The City may exercise any and all remedies available to it with respect to the Developer's failure to satisfy the Conditions of Approval and Chapter 21.85 of the CMC. 7. Appointment of Other Agencies. At its sole discretion, City may designate, appoint or contract with any other public agency, for-profit or non-profit organization to perform the City's obligations under this Agreement. 8. 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, actions, judgments and executions 1603\11\3187955.5 3 CA 5/12/2011 Jan. 11, 2022 Item #5 Page 10 of 21 for damages of any and every kind and by whomever and whenever made or obtained, allegedly caused by, arising out of or relating in any manner to Developer's actions or defaults pursuant to this Agreement except for Indemnitee's gross negligence or willful misconduct, and shall protect and defend Indemnitees, and any of them with respect thereto. This provision shall survive the term of this Agreement. 9. Insurance Requirements. Developer shall obtain, at its own expense, commercial general liability insurance for development of the Property naming Indemnitees as additional named insureds with aggregate limits of not less than two million dollars ($2,000,000), for bodily injury and death and property damage, including coverage for contractual liability and projects and completed operations, purchased by Developer or its successor or assigns from an insurance company duly licensed to engage in the business of issuing such insurance in the State, with a current Best's Key Rating of not less than A-:VII, such insurance to be evidenced by an endorsement which so provides and delivered to the Housing and Homeless Services Director prior to the issuance of any building permit for the Property. 10. Notices. All notices required pursuant to this Agreement shall be in writing and may be given by personal delivery or by registered or certified mail, return receipt requested, to the party to receive such notice at the addressed set forth below: TO THE CITY OF CARLSBAD: City of Carlsbad Housing and Homeless Services Department 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: Housing and Homeless Services Director Email: Housing@carlsbadca.gov . Fax: 760-720-2037 TO THE DEVELOPER: 1603\11\3187955.5 Harding Street Neighbors LP c/o Innovative Housing Opportunities, Inc. 501 N. Golden Circle, Suite 100 Santa Ana, CA 92705 Attn: President and CEO with a copy to: C&C Harding Street, LLC Attn: Todd Cottle 14211 Yorba Street Tustin, CA 92780 4 CA 5/12/2011 Jan. 11, 2022 Item #5 Page 11 of 21 EXIDBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CARLSBAD IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL A: LOTS 1 TO 9, INCLUSIVE, 11 TO 13 INCLUSIVE, AND 24 TO 33 INCLUSIVE, OF PALM VISTA IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE MAP NO. 2969, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 16, 1953. EXCEPTING THEREFROM THAT PORTION DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST NORTHERLY CORNER OF LOT 13 OF PAIM VISTA. ACCORDING TO MAP THEREOF NO. 2969~ THENCE ALONG THE EASTERLY LINE OF SAID LOT 13, soum 19°17'11" EAST 161.15 FEET TO THE SOUTHEASIBRLY CORNER OF SAID LOT 13, SAID POINT BEING ALSO THE EASIBRL Y CORNER OF SAID LOT 14; THENCEALONGTHESOUTHEASTERLYLINE OF SAID LOT 14, SOUTH61°51'52" WEST 68.06 FEET; TIIBNCE NORTH 08°26'25" WEST 42.85 FEET; TIIBNCE NORTH 14°49'18" WEST 95.30 FEET; THENCE NORTH 25°13'44" WEST 26.19 FEET TO A POINT IN THE NORTHWESIBRLY LINE OF SAID LOT 13, SAID POINT BEARS SOUTH 61°51'52" WEST 55.14 FEET FROM SAID MOST NORTHERLY CORNER; THENCE ALONG SAID NORTHWESTERLY LINE NORTH 61°51'52" EAST 55.14 FEET TO THE POINT OF BEGINNING. FURTHER EXCEPTING THEREFROM, 1HOSE PORTIONS OF LOTS 8, 9, 11 AND 12 AS CONVEYED TO THE STATE OF CALIFORNIA FOR HIGHWAY PURPOSES AS DESCRIBED IN DEED RECORDED AUGUST 24, 1967 AS FILE NO. 127829 OFFICIAL RECORDS OF SAID COUNTY. APN{S): {Lot 1); 204-292-01-00; 204-292-02-00 {LOT 2); 204-292-10-00 {LOT 3); 204-292- 11-00 (LOT 4); 204-292-12-00 {LOT 5); 204-292-13-00 {LOT 6); 204-292-14-00 (LOT 7); 204-292-17-00 {LOT 8); 204-292-18-00 (LOT 9); 204-292-20-00 (LOT 11); 204-292-21-00 (LOT 12); 204-292-22-00 (LOT 13); 204-291-27-00 (LOT 24); 204-291-26-00 (LOT 25); 204- 291-25-00 (LOT 26); 204-291-24-00 (LOT 27); 204-291-23-00 (LOT 28); 204-291-19-00 (LOT 29); 204-291-20-00 (LOT 30); 204-291-21-00 {LOT 31); 204-291-22-00 (LOT 32); 204- 291-14-00 (LOT 33) PARCELB: THAT PORTION OF LOT 236 OF THUM LANDS, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP NO. 1681, FILED IN 1603\11\3187955.5 7 CA2/5/2013 Jan. 11, 2022 Item #5 Page 14 of 21 THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, DECEMBER. 9, 1915, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE CENIBR LINE OF MAGNOLIA A VENUE, DISTANT THEREON sourn 61°21' WEST, 446.86 FEET FROM ITS INTERSECTION WITH THE CENTER LINE OF ADAMS S1REET, SAID POINT OF BEGINNING BEING THE MOST WESIBRL Y CORNER OF THE LAND CONVEYED BY THE SOUTII COAST LAND COMPANY TO DEAN F. PALMER, BY DEED DATED MAY 5, 1927, AND RECORDED IN BOOK 1335, PAGE 384 DEEDS, RECORDS OF SAID COUNTY; THENCE ALONG THE SOUTHWESTERLY LINE OF THE LAND AS CONVEYED TO SAID PALMER AND THE SOUTHEASIBRL Y PROLONGATION OF SAID LINE, SOUTII 28°39' EAST, A DISTANCE OF 487.47 FEET, MORE OR LESS, TO AN INIBRSECTION WITH THE NORTHEASIBRL Y PROLONGATION OF THE NORTHWESIBRL Y LINE OF THE LAND CONVEYED BY SOUTH COAST LAND COMPANY TO LAURA JONES BY DEED DATED MAY 14, 1929, AND RECORDED IN BOOK 1629, PAGE 431 DEEDS, RECORDS OF SAID COUNTY; THENCE ALONG SAID PROLONGATION AND THE NORTHWESTERLY LINE OF THE LAND SO CONVEYED TO SAID JONES, SOUTH 61 °21' WEST, A DISTANCE OF 536.38 FEET, MORE OR LESS, TO A POINT ON THE NORTHEASIBRL Y LINE OF THE LAND CONVEYED BY SOUTH COAST LAND COMPANY TO P.J. WHELDON AND MARY H. WHELDON BY DEED DAIBD JULY 7, 1926, AND RECORDED IN BOOK 1180, PAGE 463 DEEDS, RECORDS OF SAID COUNTY; THENCE ALONG THE SAID NORTHEASTERLY LINE OF THE LAND SO CONVEYED TO SAID WHELDON AND ALONG THE NORTHWESTERLY PROLONGATION THEREOF, NORTH 28°39' WEST, A DISTANCE OF 487.47 FEET, MORE OR LESS, TO A POINT ON THE CENIBR LINE OF MAGNOLIA A VENUE; THENCE ALONG SAID CENTER LINE NORTH 61 °21' EASTb A DISTANCE OF 536.3 8 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. EXCEPTING TIIEREFROM THAT PORTIONL YING NORTHEASIBRL Y OF TIIE FOLLOWING DESCRIBED LINE: BEGINNING AT A POINT IN THE NORTHWESIBRL Y BOUNDARY OF LOT 8 OF PALM VISTA, ACCORDING TO THE MAP THEREOF NO. 2969, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 16, 1953, SAID POINT BEARS SOUTII 61 °58'46" WEST, 71.99 FEET FROM THE MOST NORTHERLY CORNER OF SAID LOT 8; THENCE (1) NORTH 22°36'42" WEST, 3 59.22 FEET; THENCE (2) NORTII 18°34'28" WEST, 131.94 FEET TO A POINT IN THE CENTERLINE OF MAGNOLIA A VENUE, LAST SAID POINT BEARS NORTH 61 °54'01" EAST, 162. 74 FEET FROM THE INTERSECTION OF SAID CENTER LINE AN THE CENTER LINE OF HARDING S1REET, FORMERLY 5TH STREET, AS SAID STREET IS SHOWN ON THE RE-SUBDMSION OF A PORTION OF ALLES AVOCADO ACRES, ACCORDING TO THE MAP NO. 2027, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MAY 17, 1927. APN(S): 204-292-16-00 1603\11\3187955.5 8 CA2/5/2013 Jan. 11, 2022 Item #5 Page 15 of 21 PARCELC: LOT 10 OF PALM VISTA IN THE CI1Y OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP NO. 2969, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 16, 1953. EXCEPT THEREFROM THAT PORTION CONVEYED TO THE STATE OF CALIFORNIA, PER GRANT DEED RECORDED MAY 9, 1967 AS INS'IRUMENT NO. 64674 OFFICIAL RECORDS. APN(S): 204-292-19-00 . 1603\11\3187955.5 9 CA2/5/2013 Jan. 11, 2022 Item #5 Page 16 of 21 EXHIBITB BEDROOM COUNT AND NUl\'IBER OF UNITS Bedroom Size #ofUnits Total # Bedrooms 1 23 23 2 18 36 3 48 144 Total 89* 203 *Note: includes 1 3-bedroom unit for the on-site property manager 1603\11\3187955.5 IC CA2/5/2013 Jan. 11, 2022 Item #5 Page 17 of 21