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HomeMy WebLinkAbout2023-12-14; Housing Commission; Resolution 2023-012RESOLUTION NO. 2023-012 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, RECOMMENDING A GREATER MINIMUM AFFORDABILITY REQUIREMENT TO APPLY TO DEVELOPMENT OF RESIDENTIAL UNITS ON CITY-OWNED PARCELS AND ALL OTHER PARCELS IDENTIFIED TO IMPLEMENT THE PROGRAMS OF THE HOUSING ELEMENT AND ASSIST THE CITY IN M EETING ITS REGIONAL HOUSING NEEDS ASSESSMENT (RHNA) CASE NAME: HOUSING ELEMENT IMPLEM ENTATION AND PUBLIC SAFETY ELEM ENT UPDATE CAS E NO: GPA 2022-0001/ZC 2022-0001 (PUB 2022-0010) Exhibit 1 WHEREAS, the City Council of the City of Carlsbad, California approved the 2021-2029 Housing Element on April 6, 2021, and the state Department of Housing and Community Development found it substantially compliant with state Housing Element law on July 13, 2021; and WHEREAS, the approved Housing Element provides an assessment of both current and future housing needs and constraints in meeting these needs and provides a strategy that establishes housing goals, policies, and programs; and WHEREAS, Housing Element programs, primarily Program 1.1, require the city to provide adequate sites to meet its Regional Housing Needs Assessment (RHNA), which is an estimate of the number of new homes needed to accommodate population growth in Carlsbad through 2029; and WHEREAS, to meet its RHNA and implement Program 1.1 and other Housing Element programs, the city has proposed to rezone or has identified 18 sites throughout Carlsbad to provide opportunities for new housing; and WHEREAS, these sites include non-residential and residential properties owned privately and by public agencies, including the City of Carlsbad, that would be rezoned to permit residential or permit density increases; the sites also include properties that already permit residential development and do not need rezoning; and WHEREAS, the Planning Commission on July 24, 2015, as part of the 2015 General Plan Update, adopted Planning Commission Resolution 7114, recommending that the City Council approve density increases on certain residential properties and on non-residential properties rezoned to residential; and WHEREAS, the Planning Commission recognized the density increases provided through Resolution 7114 were "substantial" and constituted an "offset" as defined by Carlsbad Municipal Code (CMC) Section 21.85.020; and WHEREAS, accordingly, and in exchange for such an offset, the Planning Commission recommended any residential development (rental or for-sale) on those certain properties provide a minimum 20% of the total housing units on site as affordable to very low and low (collectively, "lower") income households unless the city, at its sole discretion, approved an alternative to satisfy the lower income affordable housing requirement; and WHEREAS, on Oct. 11, 2022, the City Council, as part of a report on possible programs to help entry-level homebuyers, directed staff by minute motion to apply the "increased inclusionary housing requirements" from Planning Commission Resolution 7114 to the rezone sites; and WHEREAS, as part of its Oct. 18, 2023, action to rezone sites, the Planning Commission recommended approval to the City Council that any residential development (rental or for-sale) on the properties that have received residential designations and density increases, pursuant to this project, enter into an affordable housing agreement with the City of Carlsbad to provide a minimum of 20% of the total housing units on the site of the residential development as affordable to lower income households as defined by California Health & Safety Code unless the city, at its sole discretion and for non-city-owned properties only, approved an alternative to satisfy the lower income affordable housing requirement; and WHEREAS, Housing Element Program 1.1, objective f., requires residential development on city- owned sites incorporate "a high level of affordable housing (at least 20% of residential units);" furthermore, Program 2.4, objective e., states "for properties where the city has an ownership interest, the city will leverage this ownership to negotiate a higher percentage of lower income units than would be required under current city code;" and WHEREAS, the North County Transit District (NCTD) transit stations are two of the 18 sites identified by the city, and objective g. of Program 1.1 directs the city to "work collaboratively with the North County Transit District on the redevelopment of Carlsbad Village Station ... that includes construction of market rate and affordable housing units adjacent to transit services. As part of the redevelopment, seek a high level of affordable housing." Further, while no Housing Element program addresses the Poinsettia Station specifically, the site is being rezoned to permit residential and a goal of NCTD's redevelopment at both stations is to "contribute to regional housing needs through facilitating the construction of market rate and affordable housing;" and WHEREAS, the Housing Commission on Dec. 14, 2023, held a duly noticed public meeting as prescribed by law to consider said request; and WHEREAS, at said public meeting, upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, the Housing Commission considered all factors relating to establishing a greater lower-income affordability requirement to development of residential units on city-owned parcels and all other parcels identified or rezoned to implement the programs of the Housing Element and assist the city in meeting its Regional Housing Needs Assessment (RHNA); and WHEREAS, if the amount of affordable housing for low and very low income is achieved within the sixth cycle, the City Council may consider reducing the inclusionary requirement to 15%. 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. For properties that are not city-owned, including the NCTD Poinsettia Station, and that are identified or rezoned to implement the programs of the Housing Element and assist the city in meeting its RHNA, the Housing Commission adopts this resolution, recommending that the City Council (1) find the designation of residential land uses or density increases for such properties are substantial and constitute an "offset" as defined by Carlsbad Municipal Code (CMC) 21.85.020 and further (2) require, in accordance with CMC Section 21.85.100, any residential development (rental or for- sale) enter into an affordable housing agreement with the City of Carlsbad to provide a minimum of 20% of the total housing units on the site of the residential development as affordable to lower income households as defined by California Health & Safety Code. Further, this affordable housing requirement may also be satisfied by the following alternatives (at the sole discretion of the City of Carlsbad and following completion of an alternate public benefit analysis): (1) A minimum of 15% of the total projects housing units shall be affordable to lower income households and an additional 10% shall be affordable to moderate income households as defined by California Health & Safety Code; or (2) A minimum of 15% of the total project housing units shall be affordable to very low-income households as defined by California Health & Safety Code. 3. For the NCTD Carlsbad Village Station, the Housing Commission adopts this resolution, recommending that the City Council (1) find a 20% minimum affordability requirement implements objective g. of Housing Element Program 1.1, which states in part "as part of the redevelopment [of the Carlsbad Village Station] seek a high level of affordable housing" and (2) require, in accordance wit h CMC Section 21.85 .100, any residential development (rental or for-sale) enter into an affordable housing agreement with the City of Carlsbad to provide a minimum of 20% of the total housing units on the si t e of the resident ial development as affordable to lower income households as defined by California Health & Safety Code. Further, this affordable housing requirement may also be satisfied by the following alternatives (at the sole discretion of the City of Carlsbad and following completion of an alternate public benefit analysis): (1) A minimum of 15% of the total projects housing units shall be affordable to lower income households and an additional 10% shall be affordable to moderate income households as defined by California Health & Safety Code; or (2) A minimum of 15% of the total project housing units shall be affordable to very low-income households as defined by California Health & Safety Code. 4. For properties that are city-owned and that are identified or rezoned to implement the programs of the Housing Element and assist the city in meeting its RHNA, the Housing Commission adopts this resolution, recommending that the City Council require a greater lower-income minimum affordability requirement of 40% of the total residential units restricted for lower income housing as defined by the California Health and Safety Code . 5. For properties that are identified to implement the programs of the Housing Element and assist the city in meeting its RHNA, the Housing Commission adopts this resolution, recommending that the City Council include the following language in all affordable housing agreements "The affordable requirement applies to all residential units being provided on identified parcels, including any accessory units or additional units received through a request for density bonus. Affordable units will be provided in the same unit mix as the market rate mix on identified parcels to meet the diverse housing needs of the City of Carlsbad." Findings: 1. The proposal to establish a greater lower-income affordability requirement complies with state Housing Element law and the programs of the city's Housing Element in that it enhances the production of lower-income housing by requiring more affordable housing than would otherwise be required per the city's lnclusionary Housing Ordinance. 2. The proposal is consistent with City Council action on Oct. 11, 2022, to direct staff to apply the "increased inclusionary housing requirements" from Planning Commission Resolution 7114 to the rezone sites. 3. A greater lower-income affordability requirement on city-owned properties is appropriate as the city's ownership provides leverage to require the greater affordability and as it may enable the city to declare such properties as "Surplus Land" or "Exempt Surplus Land," which it must do before it can dispose of the properties and enable their development residentially to help meet Housing Element programs and the city's RHNA. 4. A greater lower-income affordability requirement on properties that are not city-owned is appropriate as the designation of residential land uses or density increases for such properties are substantial and constitute an "offset" as defined by Carlsbad Municipal Code 21.85.020. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the Housing Commission of the City of Carlsbad on the 14th day of December, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Ydigoras, Horton, Chang, Berger. Collins. None. None. TY),E'R COLLINS, Chair MANDY MILLS, Director