HomeMy WebLinkAbout2021-11-18; Housing Commission; Resolution 2021-010RESOLUTION NO. 2021-010
A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD,
CALIFORNIA RECOMMENDING THAT THE CITY COUNCIL APPROVE A
$1,500,000 LOAN FROM THE HOUSING TRUST FUND TO CHELSEA
INVESTMENT CORPORATION FOR THE WEST OAKS AFFORDABLE
APARTMENTS (DEV 13-018)
WHEREAS, Integral Communities (Integral) sought the city's approval to build 192 apartments
located south of Palomar Airport Road and west of Palomar Oaks Way. The project will include 42
affordable apartments, consisting of 1, 2 and 3 bedrooms; and
WHEREAS, the City Council approved said development, including the affordable apartments
onJan.20.2021;and
WHEREAS, Chelsea Investment Corporation has partnered with Integral to build the West Oaks
affordable apartments; and
WHEREAS, Chelsea Investment Corporation applied to the City of Carlsbad for $1,500,000 in
Housing Trust Fund assistance in order to create additional public benefit by serving lower income
levels and improve project competitiveness for tax exempt bond and tax credit equity financing; and
WHEREAS, the city's Affordable Housing Policy Team evaluated the financial assistance request
on Nov. 18, 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 a special meeting on Nov. 18, 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 Chelsea Investment Corporation 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 42 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 five (5) extremely low-
income (30% AMI), five (5) very low-income (50% AMI), twenty-eight (28) low-income
(60% AMI), and three (3) low-income (70% 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 Nov. 18, 2021 public
meeting, the Housing Commission hereby recommends that the City Council approve
$1,500,000 in financial assistance from the Housing Trust Fund to Chelsea Investment
Corporation, 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 Chelsea Investment
Corporation 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.
PASSED, APPROVED AND ADOPTED at a Meeting of the Housing Commission of the City of
Carlsbad on the 18th day of November, 2021, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
EVANS, MANZANO, CORTES -TORRES, NGUYEN -CLEARY
NONE
COLE
JOHN NGUYEN-CLEARY, CHAIRPERSON
CARLSBAD HOUSING COMMISSION
ATTEST:
MANDY MILLS
Housing & Homeless Services Director