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HomeMy WebLinkAbout2022-02-10; Housing Commission; Minutes MEETING OF: HOUSING COMMISSION DATE OF MEETING: FEBRUARY 10, 2022 TIME OF MEETING: 6:00 P.M. PLACE OF MEETING: VIA ZOOM CALL TO ORDER: Chairperson John Nguyen-Cleary called the Meeting to order at 6:25 p.m. ROLL CALL was taken as follows: Present: COMMISSIONER COLE COMMISSIONER MANZANO CHAIR NGUYEN - CLEARY Absent: COMMISSIONER TORRES- CORTES APPROVAL OF MINUTES: Chair recommends for amendment of September 9, minutes to reflect the full motion that was voted on by City Council. On a motion by Commissioner Cole and Seconded by Chair Nguyen – Cleary the amended minutes of the following meeting were unanimously approved: Minutes of the Special Meeting held September 9, 2021. Minutes of the Meeting held November 18, 2021 PUBLIC COMMENT: None PUBLIC HEARINGS: 1. APPROVAL OF THE CARLSBAD PUBLIC HOUSING AGENCY (PHA) ANNUAL PLAN FOR FISCAL YEAR 2022-23 Staff Recommendation: Approve. PUBLIC COMMENT: None FEBRUARY 10, 2022 HOUSING COMMISSION Page 2 Mandy Mills, Director of Housing & Homeless Services, gave a brief explanation and introduced Todd Henderson, Interim Housing Services Manager, to give the presentation. The Commissioners asked questions of staff, then discussed the request. ACTION: On a motion by Chair Nguyen – Cleary to adopt resolution recommending community development commission accept the staff report AYES: COLE, MANZANO AND NGUYEN-CLEARY NAYS: NONE ABSENT: CORTES-TORRES 2. RECOMMMENDING APPROVAL OF 2021 HOUSING COMMISSION WORK PLAN ANNUAL REPORT AND 2022 HOUSING COMMISSION WORK PLAN Staff Recommendation: Approve. PUBLIC COMMENT: None Interim Housing Services Manager Todd Henderson gave the presentation. The Commissioners discussed: Director Mills clarified that the work plan and annual report is asked by the City Council to confirm alignment with City Council strategic goals. Commission requested discussion in advance of future work plans. The Commission is interested in educational seminars, community engagement and public forums. Amendments to the work plan are allowed if something comes up. ACTION: On a motion to approve the work plan and approve annual report that recommend the 2022 work plan to City Council. AYES: COLE, MANZANO AND NGUYEN-CLEARY NAYS: NONE ABSENT: CORTES-TORRES FEBRUARY 10, 2022 HOUSING COMMISSION Page 3 3. APPROVAL OF THE PROPOSED REVISIONS TO THE CITY’S INCLUSIONARY HOUSING POLICIES AND IN-LIEU FEE Director Mandy Mills introduced Community Development Director Jeff Murphy and consultant Paul Marra. The was split up into two segments based on the amount of content. Part one: Inclusionary Housing Program Public Comment: Kelly Batten representing the Building Industry of San Diego spoke. The BIA was generally supportive of the revised alternative means of compliance language, however, there were a few areas they had concerns, relating to offsite compliance, and other alternative mean of compliance They also asked for a five-year phase in of new regulations and fees. Commissioners discussed: Chair Nguyen - Cleary suggested they discuss part one into two segments. First, they addressed the single unit recommendation and moved to the per square foot recommendation. Director Murphy explained why we did not recommend a different fee for the Village-Barrio area. Then Director Murphy confirmed, this is increasing the 1996 rate to make it current based on costs and gaps. There were questions and a robust discussion related to the choice of CPI as the preferred escalator factor. Commissioners discussed the CPI and how relevant it is to just housing. Chair Nguyen - Cleary, had an issue with the choice of the CPI as the escalating measure, the general inflation rate is far reduced compared to the actual increase in cost of housing over time and he is concerned that using the CPI is the incorrect exculpatory measure to be used. He asked if there are any alternative measures. Mr. Marra explained they did a study that summarized a history of the building cost index BCI, construction costs index, CCI and consumer price index CPI. They were very similar on an annual average. The City's view is the escalator needs to be basic metrics, so the fee does not become stale. Chair Nguyen- Cleary expressed concern that the CPI is sufficient as a measure and is not inclined to support this recommendation. Chairman shared a report by the Center for Economic and Policy Research and recommended using more specifically the shelter component of the CPI. Mr. Marra explained it will not reflect Carlsbad housing cost increases since it is countywide. Chair Nguyen - Cleary still would like measures in place that are more representative of the increased cost of housing over CPI alone. Commissioner Manzano thinks this resolution is a reasonable solution and takes care of both residents, people who need housing and developers. In developing a Commission recommendation, Chair Nguyen-Cleary raised concern about the staff recommendation of $15/square foot as too minimal. He recommended a phased in rate from $15-$20/square foot over five years, then increased annually by a chosen escalator factor to be chosen by the City Council. FEBRUARY 10, 2022 HOUSING COMMISSION Page 4 ACTION: As discussed: The Commission was fine with the recommended amount in the single-family rate, but wanted the City Council to consider an appropriate escalator annually (#3, Part A), and decided to amend #3, B of the Resolution be modified such that the per market unit rate be established at $20 per square foot of net building area for each market unit with a five-year phase-in with the City Council to consider an appropriate escalator annually thereafter AYES: COLE, MANZANO AND NGUYEN-CLEARY NAYS: NONE ABSENT: CORTES-TORRES The Commission asked questions and discussed thresholds for paying an in-lieu fee. Because lowering the threshold requires a Municipal Code change, it will not be a part of the current set of recommendations. Director Jeff Murphy gave the next segment of the presentation, which covered policies that address the alternative means of compliance. The commissioners discussed each enumerated item. Item one-On the ability to provide an ADU on a single-family lot, staff clarified that the minimum affordability restriction in the Municipal Code is 30 years. Item two -On the inclusionary affordability requirement and credit adjustment. Commissioners had general questions which were all thoroughly answered by both Directors Mills and Murphy. Item three - Use of accessory dwelling units. Commissioners had a brief discussion agreeing with staff recommendations. Item four- Combined inclusionary housing offsite compliance. Commissioners agreed with staff recommendations. Number five - Affordable housing credit purchase program. Commissioners had a robust conversation about how and why credits are determined. There was clarifying discussion around the original intent and credit price calculation. Director Mills and Murphy answered questions and concerns. Chair Nguyen – Cleary has an alternative to the credit amount to tie the dollar amount, more to the gap analysis. Number six and seven, the alternative means of compliance. Commissioners had a brief conversation and agreed with staff recommendation. ACTION: Motion to recommend to counsel adoption of the staff recommendation, with a follow up recommendation that when there is an ordinance modification to the eligibility for participation in the in-lieu fee that projects up to 20 units be able to pay. The modification to the credit bank purchase values be established at $177,000 per unit across all available credit bank units, as supported by the Kaiser Marston gap analysis.