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HomeMy WebLinkAboutHolly-Seacliff Affordable Housing Plan for Development Proje 03/01/99 -Councillgency Agenda - Page 15 execution by the Mayor and City Clerk. (Original Agreement entered into between City Attorney and Ferguson, Praet& Sherman on July 23, 1998). (CITY COUNCIL) APPROVED HOLLY-SEACLIFF AFFORDABLE HOUSING PLAN AMENDMENT NO (430.50) The City Council considered a communication from the Planning Director transmitting for Council consideration a request by PLC Land Company to amend the Holly-Seacliff Affordable Housing Plan to allow rental units at the median income level to meet affordable housing goals. The Affordable Housing Plan currently allows for Moderate income level (120 percent of County Median income)for-sale units only. No change is proposed to the for-sale provisions. The Planning Commission denied the request and is recommending denial (Recommended Action- A) because the cost of rental units at Median income limits are comparable to market rents and ,4 would not be"affordable." Staff is recommending approval with modifications to limit the rents to Low and Very low income levels (Recommended Action-B) because the allowance of affordable rental units is consistent with City goals and policies. Earlier in the meeting, the City Clerk had announced that the following communication on this item had been provided to the City Council. Communication from William Holman, PLC Land Company dated March 1, 1999 requesting to amend the Affordable Housing Plan to allow rental or apartment units constructed within the Holly-Seacliff Specific Plan area to count toward the 15% affordable housing requirement of the Specific Plan. Planning Director Zelefsky presented a staff report using the slide show presentation titled Holly-Seacliff Affordable Housing Plan Amendment No. 1. A motion was made by Garofalo, second Julien to defer consideration of the Holly-Seacliff Affordable Housing Plan Amendment No. 1 for 30 days, with Councilmember Bauer, Councilmember Dettloff, and Councilmember Sullivan appointed to a sub-committee on this subject. Discussion was held between the City Councilmembers and Planning Director Zelefsky regarding aspects of the matter. Councilmember Sullivan stated that this subject literally begs for a little history. He stated that he has spoken with Grace Winchell, former Councilmember, on this subject. He reviewed the history and requested correction if the history he is presenting is in error. Councilmember Sullivan stated the reasons why he believes this proposal from PLC is insulting, as to the fulfillment of their affordable housing requirement should not be done by rentals that are above market value. Councilmember Bauer spoke regarding the requirement known as (ARENA). Planning Director Zelefsky stated that Holly-Seacliff has a stand-alone requirement. The motion made by Garofalo, second Julien failed by the following roll call vote: AYES Julien, Garofalo, Green NOES: Dettloff, Harman, Sullivan, Bauer ABSENT: None City of Huntington Beach 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF COMMUNITY DEVELOPMENT Building 536-5241 Planning 536-5271 STAFF'S RECOMMENDATION PROPOSED AMENDMENT Holly-Seacliff Specific Plan Affordable Housing Plan For Seacliff Partners Properties Approved by City Council - February 28, 1994 I. INTRODUCTION & BACKGROUND A. Purpose & Intent This Affordable Housing Plan has been prepared by Seacliff Partners in compliance with the affordable housing requirements of the Holly-Seacliff Specific Plan. The intent of this Affordable Housing Plan is to preserve and provide--Awsa housing opportunities for very low, low and moderate income persons and households in furtherance of the goals, policies and programs of the Housing Element of the City of Huntington Beach General Plan, and consistent with other City-adopted plans and project approvals. B. Background The Holly-Seacliff planning area encompasses a total of 768 acres of land within the central part of the City of Huntington Beach. The following is a summary of pertinent City-adopted plans and project approvals affecting the development of housing within the Holly-Seacliff planning area: 1. Holly-Seacliff General Development Plan: (General Plan Amendment No. 89-1) Adopted January 1990. Adopted a master plan of land use, circulation, open space, public facilities and community theme for the 768-acre Holly-Seacliff area(including the Ellis-Goldenwest Specific Plan). The Holly-Seacliff Master Plan allows for the development of a maximum 4,410 residential units at densities ranging for 3 to 25 dwelling units per gross acre. Final Environmental Impact Report No. 89-1 was certified to contain mitigation measures for General Plan Amendment No. 89-1. I (k1038) 2. City of Huntington Beach 1989 Housing Element Update: Adopted July 1990. Identifies local housing needs, opportunities and constraints, and establishes goals, policies and programs for the attainment of decent housing for households of all socioeconomic, racial and ethnic groups, the provision of a variety of housing opportunities and types, and the development of a balanced community. The Housing Element includes a regional assessment of needs by varying income groups. 3. Holly-Seacliff Development Agreement 90-1: Adopted December, 1990. Vested Seacliff Partners' right to develop 3,780 residential dwelling units within the Holly- Seacliff area in accordance with existing City policies and regulations for a period of 15 years in exchange for accelerated park dedications and citywide public infrastructure improvements, neighborhood park improvements and payment of special traffic impact and public facility fees. 4. Holly-Seacliff Specific Plan: Adopted April 1992. Adopted zoning and comprehensive development standards for a total of 3,845 residential units within the Holly-Seacliff area. (The total number of residential units was subsequently amended to 3,895 by the adoption of Code Amendment No. 91-12 in May 1992.) The Holly Seacliff Specific Plan contains the following affordable housing requirement: "All developers of residential projects shall be required to submit an affordable housing plan in conjunction with any subdivision in accordance with the City's adopted Housing Element. An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: a. Fifteen(15)percent of the total units proposed shall be for households earning less than 120% of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. c. The estimated applicable sales price and rental rate of the units. d. Residential projects for households earning less than 80% of the Orange County Median Income may request a subsidy by one or more of the following: (1) Direct financial assistance. (2) Reduction in fees and/or exaction's. (3) Deviations from specific development standards of the Holly-Seacliff Specific Plan. 2 (k1038) C. Definitions The following definitions apply to terms used in this plan: "Affordable Housing" - A residential unit that is affordable to households earning less than 120% of the County Median Income. "City" - The City of Huntington Beach, California. "County" - The County of Orange, California. "Developer" - Where capitalized, means Seacliff Partners, a joint venture between U.W.C. Development corp. and Pacific Coast Homes, or their successors or assigns. "Development Agreement" - Development Agreement No. 90-1 for the Holly-Seacliff area. "Low Income Household" - A household with a total annual gross income of between 50 - 80% of the Median Income as defined below. "Median Income" - The most current median income figure for Orange County as published by the United States Department of Housing and Urban Development. "Moderate Income Household" -A household with a total annual gross income of between 80 - 120% of the Median Income as defined above. "Plan" - Where capitalized, means the Holly-Seacliff Affordable Housing Plan. "Specific Plan" - The Holly-Seacliff Specific Plan as it may be amended from time to time. "Very Low Income Household" - A household with a total annual gross income of less than 50% of the Median Income as defined above. I 3 (k1038) II. Plan In accordance with the Specific Plan requirements, this section identifies the number, location, type, size,phasing and estimated sales prices of the affordable units to be preserved or constructed by the Developer. A. Number of Affordable Units The approved total number of residential units in the Specific Plan is 3,895 units. The properties to be developed by the Developer within the Specific Plan are approved for 3,537 residential units. Developer's Specific Plan affordable housing requirement is 531 moderate income units (15%x 3,537 total units). If fewer than 3,537 units are actually built by Developer within the Specific Plan area, then the required number of affordable units required will be reduced proportionally. B. Location, Type and Size of Affordable Units The following table identifies a menu of proposed locations ,types and sizes of affordable housing units to be constructed within the Specific Plan area. The Table sets forth the maximum possible number of units within each planning area. The ultimate mix and number of units to be built will be at the discretion of the Developer. Each project providing affordable housing shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. Table I Maximum roposect � 3 � ft Number,of Location° acreage s Estimated Es mated Units"',_ ,, lanning Unit) (bprox) NTy e ze Sale _Prue' 170 II-4 9.5 Flats 500-1050 SF $136,685 to Studio, 1&2 BR $182,900 150 II-5, -6 8 Flats 500-900 SF $136,685 to Studio, 1&2 BR $182,900 575 IV-1 16 Flats 500-900 SF $136,685 to IV-2 8 Studio, 1&2 BR $182,900 IV-4 53 Note: Sources: City of Huntington Beach,Affordable Housing Price/Income Guidelines updated February 1, 1992 (for sales prices). The estimated sales prices are as of February 1, 1992 and are subject to adjustment in proportion to increases or decreases in Orange County median income as published by HUD. 4 (klo3a) C. Additional provisions 1. Other Units construction by Developer Any other affordable housing units other than those affordable units listed in Table I constructed by Developer ° =oi Af nrrar within the Specific Plan area shall be counted towards the required total number of units. Developer shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. 2. Units Constructed by Others Any affordable housing units constructed by others within the Specific Plan under contract or agreement with Developer may be used to satisfy Developer's requirements. The affordable housing credit provisions of such contract or agreement shall be approved by the Director of Community Development prior to satisfaction of Developers requirement. Units which have received City financial subsidy or other incentives of equal financial value shall not be eligible. 3. Preservation of At-Risk Units Although it is not the present intent of the City to allow such credit, the Developer may apply to the City Council for credit for preserving at-risk low or moderate income housing units through buy downs, financing, refinancing, or other means. Such applications cannot be approved without a separate amendment to the Holly- Seacliff Specific Plan. Any credit received may be applied towards the Developer's affordable housing requirement only on the basis approved by the Council. 4. Rental Units If rental units are used to meet the affordable housing requirement, the following shall be required: a. A minimum of 50 percent of the units shall be rented at the very low income level, and b. The remaining 50 percent of the units shall be rented at levels that do not exceed low income. 5 (k1038) • • D. Incentives and Standards Consistent with the concept of the adopted Housing Element and Affordable Housing Task Force Report, the city should implement incentives, flexible development standards and otherwise provide encouragement in order to facilitate the construction of affordable housing. The following shall apply to the affordable housing units required under the Specific Plan: 1. Other Incentives and Standards Any incentives, standards or programs adopted as part of a City-wide affordable housing program may apply to the Developer. E. Phasing The provisions of the affordable housing units shall be phased with the occupancy of the market rate units in accordance with the following phasing plan. g Column A� Coiaimn B CumulahveCumulat><ve I 500 75 I1 1000 150 III 1500 225 IV 2000 300 V 2750 375 VI 3250 total remainder 1. Within four months of the issuance of the Certificate of Occupancy of the cumulative market rate unit in Column A, Developer must have submitted tentative tract map and conditional use permit applications for the cumulative affordable units in Column B. (for example, within 4 months of issuance of the Certificate of Occupancy, for the 500th market rate unit, Developer must apply for permits for a cumulative total of 75 affordable units.) 2. Developer must be under construction with, or have completed, the total cumulative affordable units in a phase prior to issuance of the Certificate of Occupancy of the last cumulative market rate unit in the next phase. (for example, Developer must be under construction, or have completed, 75 affordable units prior to issuance of the Certificate of Occupancy of the 1000th market rate unit.) 6 (k1038) C. Additional provisions 1. Other Units construction by Developer Any other affordable housing units other than those affordable units listed in Table I constructed by Developer and sold to persons or families earning between 80% - 120% of OCMI within the Specific Plan area shall be counted towards the required total number of units. Developer shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. 2. Units Constructed by Others Any affordable housing units constructed by others within the Specific Plan under contract or agreement with Developer may be used to satisfy Developer's requirements. The affordable housing credit provisions of such contract or agreement shall be approved by the Director of Community Development prior to satisfaction of NEW Developers requirement. Units which have received City financial subsidy or other incentives of equal financial value shall not be eligible. 3. Preservation of At-Risk Units Although it is not the present intent of the City to allow such credit, the Developer may apply to the City Council for credit for preserving at-risk low or moderate income housing units through buy downs, financing, refinancing, or other means. Such applications cannot be approved without a separate amendment to the Holly- Seacliff Specific Plan. Any credit received may be applied towards the Developer's affordable housing requirement only on the basis approved by the Council. D. Incentives and Standards Consistent with the concept of the adopted Housing Element and Affordable Housing Task Force Report,the city should implement incentives, flexible development standards and otherwise provide encouragement in order to facilitate the construction of affordable housing. The following shall apply to the affordable housing units required under the Specific Plan: Delete 1. Par-king Tandem paFking shall bea, ffill-e-vied-for-the residents (nen guests)pafk4fig F-�qtfiferaefit Delete 2. open spaGe A fainimum of 150 square feet of eemmen epen spaeo per-dwelling tmit .04R11 ho 6 (k1038) Delete - Fees • • l este -e e�t3�ei=elepme t** These fees inelude but afe not limited to: ,.heek .mit and; erat r foes, 4. Other Incentives and Standards Change Any incentives, standards or programs adopted as part of a City-wide affordable housing program shall may apply to the Developer. E. Phasing The provisions of the affordable housing units shall be phased with the occupancy of the market rate units in accordance with the following phasing plan. »:::::::: ....::::>::::>::::>::::>:::<::«<:::......... . apt... ..............................::.::::::::::::::::::::::: ...:.................::::::. 1 500 75 II 1000 150 III 1500 225 IV 2000 300 V 2750 375 VI 3250 total remainder 1.. Within four months of the issuance of the Certificate of Occupancy of the cumulative market rate unit in Column a, Developer must have submitted tentative tract map and conditional use permit applications for the cumulative affordable units in Column B. (for example, within 4 months of issuance of the Certificate of Occupancy, for the 500th market rate unit, Developer must apply for permits for a cumulative total of 75 affordable units.) 2. Developer must be under construction with, or have completed,the total cumulative affordable units in a phase prior to issuance of the Certificate of Occupancy of the last cumulative market rate unit in the next phase. (for example, Developer must be under construction, or have completed, 75 affordable units prior to issuance of the Certificate of Occupancy of the 1000th market rate unit.) 7 (k103 8) 3. The Cityshall uss best efforts to process all tentative Atma an f tr pp d final act map applications in a timely manner. If a final tract map containing designated affordable housing units is not approved within 18 months of submittal of the tentative tract map by Developer, the above construction obligation for those affordable units shall be tolled based on the processing delay. 4. During the last phase of affordable units (affordable unit number 376 and beyond), building permits will be issued on a one-for-one basis with the last phase of market rate units (market rate unit 3251 and beyond) until the Developer's total obligation of affordable units (15% of the total units built)has been met. 5. Developer may bond for the construction of the required.affordable units in Column B not under construction or completed, at the rate of$40,000/unit(adjusted yearly based on CPI). 8 (M038) "-OX. CASTLE & NICHOLSON PHILUP R. NICHOLSON' .ices R.DANS91 A PARTNCRSHIP INCLUDIND ROFESSIONAL CORPORATIONS OCORGE M.COK 1.AWRENCC TEPLIN OREOORY J.KARNS (RETIRED) RONALD 1_SILVERMAN* 0. SCOTT TURNER LA E RS MARIO CAMARA !LA MUEL N. GRUENBAUM " GCOROE 0.CALKINS.11 SANORA C.STEWART 9049 CCNTU Y PAPIK EASY RICMARO M.CASTLE JOHN H. KUHL MATMEW A.WYMAN 1181C•190N ARTHuR O.SPAVLDINO,JR. HCROERT J. KLCIN TWENTY-[I HTH FLOOR J CrrREY LAPOTA DONNA J.CHRISTENSCN OF COUN9c4 DAVID A. LCIP2IOER KENNCTM WILLIAMS L.OS ANOELE$, CALI 0RNIA 90067-3204 STERNEN 0.SIIAPIAO J OHN S. MILLER. JR. LAUREL BALLARD BRYAN JAMES G VARNETT Kr,NNETN B- BLEY MATHRYN M. LybDAN I ELF-PHONE 10) 217-4224 NOWAIM OOLOSYCIN 112A J.WALDMAN CARLISLE G.PACKARD COWARD C.DYOKRT JONN F. NICHOLSON DAVID S. AOSENBERO KEITH G "RICH LHARLCS E.NONEMAN CAROA K.RYMAL FACSIMILE, 1 10) 277-7889 KEITH 8.AAROCLLINI WILLIAM KAMSR MICHAEL L.TIOU9 VIANt MLCNC 0.OOOOFRAEb LCSLIF M.BAKER RAN AR p,GALFA9 BAARY P,JABLON H. MARK MCRSCL RAN P.ORLIR JCrTREY 0.MASTERS OIANC c.TIBEREN)a ~� R08ERT O. INFLJJGC LISA A.WEINBQRG ORANGE COUNTY OFFICE EOWARD O.9NIRLEY SCOTT O,BROOKS 19809 MACARTHUR SOULEVARO BRADLEY D. FRAZIER GARY P.DOWNS TAMAR C.STSIN VALERIE. L.FLORMI SUITE q00 CDYTHE L.BRONSTON SHARON L.TAMIYA IRVINE,CALIFORNIA 92716.24JS CAROL M LIFLANO AMY N.WELL'J (7141 47e4N1•13101 294-EIA1 OOUGLAS P.4 $eptember 20,MODFRT L BCNVN , 1993 ,AC{HM1LE(7111 ATCf 0259 CARY A GLICK MITCHELL L IWAOER LORA LLC MOORE STATHI G.MARCOPULOS LEWIB G.F"NIAN MARK A.REZAC F. JEROLD WAI AH MARK MOORE OUR FILE NO: MARK P. MCCLANATMAH PAUL J.TITCHER . JONN A, KINCANNON TINA R.AKLLRAO STAMLEY W. LAMPORT CAMELLIA IWO 20371�T RANDALL W. BLACK STEPMANIE A.SCNROE DER YL MCUM UNES MARK "LAMMAS WRITER'S DIRECT DIAL NUMBER-I R FEg '/O.MOCCIARO MARIA K.SARKISIAN r�KRTe6LGKM ceK.oKLTpK 310/2 8 4-2 2 54 BY FAX Thomas A. Zanic, Vice President Director of Forward Planning and Governmental Affairs Urban West Communities 520 S. Broadway, Suite 100 Santa Monica, CA 90401 Re: Change in Affordable Ho sing Requirement Dear Tom: IN RO U ION You have told me that the Ho ly Seacliff Specific Plan requires that 15% of the housing 1"n the Specific Plan area be sold to buyers earning less than 20% of the Orange County Median Income. You have also told me th t a member of Huntington Beach's City Council wants the C' y to add the requirement that the earnings of the buyers of the affordable housing average no more than 100% of the Orange Count Median Income. You have asked me whether the City can do at in light of the protection provided by the Holly Seacliff Development Agreement. S Y The City has no right to impo a an additional requirement that the average household earning- level of buyers eligible to purchase affordable housing units n the Specific Plan area be 100% of the Orange County Median I come. ~4 AC�fENT NO. Mr. Thomas A. Zanic September 20, 1993 Page 2 IS ION "Paragraph 12 .a. of the Holl Seacliff Specific Plan deals with affordable housing and requ res that an Affordable Housing Plan must be prepared and that i must provide that: "Fifteen (15) per ent of the total units proposed shall be for ouseholds earning less than 120% of the arang County Median Income. " The recitals contained in the Development Agreement state that it is the Cityjs intention hat the Developer be able to develop the property subject to he Development Agreement consistent with a number of iden ified documents "and upon adoption, consistent with the pa meters of the proposed Holly-- Seacliff Specific Plan. " (Devel ment Agreement at 2-3 . ) Paragraph 1 of the Developee t Agreement defines "Existing Land use Regulations" as those in existence as of the "Effective Date" of the Development Agreemen ; that same paragraph defines 'Subsequent Land Use Regulations" as those which are adopted after the Effective Date. Paragraph 2.3 . 4 of the Devel pment Agreement provides protection against changes in the law because it states that: ". . .no additional Subse uent Land Use Regulation shall apply o the Development of the Property. " There is, however, an except on: ". . .the Existing Land U e Regulations shall be those set forth in t e Holly-Seacliff Specific Plan in additi n to those other Existing Land Use Regulations not modified by the Holly-Seacliff Spec fic Plan. " (Development Agreement aragraph 2 . 4. 1. ) As noted above, the SpecificiPlan imposes a requirement only with respect to "households earning less than 120% of the Orange County Median Income. " This, in turn, is reflected in paragraphs I.R.2 . and I.C. of the AffordablelHousing Plan submitted by Seacliff Partners. Requiring that the affordable housing units be sold to those with households earning an average of less than 100% of the Orange County Median Income would be a modification Mr. Thomas A. Zanic September 20, 1993 Page 3 of the Specific Plan which would be a violation of both the letter and the spirit of the Development Agreement. Moreover, every affordable housing unit sold means a lower profit to Seacliff partners. The effect of such a sale is a subsidy by Seacliff Partners of t ose eligible to buy affordable housing units. This, in turn, is another form of exaction which is also prohibited by the Develop ent Agreement. See the discussion in my letter of July 25, 1993, to you concerning the dedication requirement which the ity was considering as a condition for. the approval of Tentative Tract No. 14661. CONCLUSION I believe that you should to I the City of the results of my analysis. I would hope that, one the facts and law have been brought to the City's attention, he upper limit for those eligible to buy affordable housin units will remain at 120% of the Orange County Median Income with no additional conditions or limitations. Please call me if I can be oE any further assistance. V ry truly yours, K n th B. Sley KBB/kb (1119031 CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Howard Zelefsky, Planning Director FROM: Gail Hutton, City Attorney DATE: October 22, 1993 SUBJECT: Holly-Seacliff Affordable Housing Plan RLS 93-657 BACKGROUND The Holly-Seacliff Specific Plan requires each developer to submit an affordable housing plan ("the housing plan"). Among other things,the housing plan must provide that fifteen percent (15%) of the total units proposed shall be for households earning less than 120%of the Orange County median income. (Holly-Seacliff Specific Plan, Section III(C)(12)(a). ISSUE May a housing plan include a provision that the affordable housing be for households that earn, on average, 100% of the Orange County median income? ANSWER Yes. A housing plan may provide for units that are affordable to households that earn, on average, 100% of the Orange County median income. However, a housing plan which provides 15%.of its total units to households earning less than 120%of the Orange County median income is legally sufficient. The phrase "less than 120%" of median income referenced in the Specific Plan should be viewed as providing the maximum allowed income level. ANALYSIS The requirement at issue is found in Section III(C)(12)(a), of the Specific Plan. It states: Fifteen(15)percent of the total units proposed shall be for households earning less than 120% of the Orange County Median Income. Howard Zelefsky October 22, 1993 Page 2 The key phrase is "less than 120%." It provides the maximum allowable income level for a legally sufficient housing plan. Please note that this language allows a housing plan to provide for any level of affordability less than 120%of Orange County median income, such as the one suggested by a 100% of median average affordability. However, a housing plan is legally sufficient under the Specific Plan so long as 15% of the proposed units are affordable to households earning less than 120%of the Orange County median income. Gail Hutton City Attorney cc: Ray Silver, Acting Director, Community Development CITY OF HUNTINGTON BEACH Ira INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: HOWARD ZELEFSKY, Planning Director FROM: GAIL HUTTON, City Attorney DATE: November 29, 1993 SUBJECT: Holly-Seacliff Affordable Housing Plan QUESTION Does the City Council have the unilateral authority to impose a condition requiring an "average affordability of 100% of median income" on the Holly Seacliff Affordable Housing Plan submitted by Seacliff Partners? ANSWER No. ANALYSIS The Legislature established the property development agreement procedure in an attempt to provide a greater sense of certainty in the development process. Generally, a developer will enter into a development agreement to insure that the city's land use regulations will not change for the duration of major project. A city enters into the agreement to obtain guarantees from the developer regarding the installation of infrastructure and other public works. Thus, unless otherwise provided in the development agreement, the rules, regulations, and official policies governing permitted uses, density, design, improvements, and construction are those in effect when the agreement is executed. (Cal. Gov't Code Section 65866; City of West Hollywood v. Beverly Towers, Inc., 52 Cal. 3d 1184, 1 193 (1991).) Accordingly, the Holly-Seacliff Development Agreement, adopted November 5, 1990, provides that "no additional Subsequent Land Use Regulations shall apply to the Development of the Property." (Development Agreement, Section 2.3.4.) The important exception to this statement is the Holty-Seacliff Specific Plan, which was adopted after the Development Agreement on April 20, 1992, and has since been twice amended. Pursuant to the Development Agreement, the Specific Plan must be mutually agreeable to both the Developer and the City. (Development Agreement, Section 2.4.) 4\11/25/93 ATTACHMENT NO. L-5b_ Howard Zelefsky Holly-Seacliff Affordable Housing Plan; RLS # 93-747. Page Two The Holly-Seacliff Specific Plan regulates affordable housing in Section III(C)(12). It requires all developers of residential. projects to submit an affordable housing plan in conjunction with any subdivision in accordance with the City's adopted Housing Element. The contents of the affordable housing plan shall include the following: "Fifteen (15) percent of the total units proposed shall be for households earning less than 120% of the Orange County Median Income." (Holly-Seacliff Specific Plan, Section III(C)(12)(a).) We have previously determined that an affordable housing plan that meets the minimum affordability standard of "less than 120%" is legally sufficient under the requirements of the Specific Plan. (See memorandum from Gail Hutton to Howard Zelefsky dated October 22 1993, copy attached.) If a more restrictive affordable housing regulation is desired for the Holly-Seacliff project, like "average affordability of 100% of median income," the Council may request that the Developer agree to a change in the project or the land use regulations: The Parties acknowledge that during the term of this Agreement either party may request that the other Party agree to a change to the Project or the existing Land Use Regulations. In the event Developer and City determine that a change in the Project or to any Existing Land Use Regulations is desirable, the Developer shall file an application with the City to effectuate the desired change in the Project or Existing Land Use Regulations and City shall process and act on such application. . . (Holly-Seacliff Development Agreement, Section 2.4.1 .) CONCLUSION The Council may not unilaterally change the affordable housing requirements of the Holly-Seacliff Specific Plan and apply the new regulation to the Holly-Seacliff developer. Development agreements are one of the few ways that a developer can gain vested rights, i.e., a right to proceed with development in accord with an 4\11/25/93 Howard Zelefsky Holly-Seacliff Affordable Housing Plan; RLS # 93-747 Page Three established set of land use regulations. (California Government Code Section 65864 et seq.) Since the Holly-Seacliff Development Agreement limits the land use regulations to those in effect at the time of its adoption, plus those regulations adopted in a mutually agreeable specific plan, and the Holly-Seacliff Specific Plan as adopted was mutually agreeable, the land use regulations governing affordable housing are those contained therein. GAIL HUTTON, City Attorney 4\1 1/25/93 Pr` Sacliff Partners • • January 28, 1994 Linda Moulton-Patterson Mayer CITY OF HUX71 NGT ON BEACH 2000 Main Street Huntington Beach, CA 92648 Res Holly Seacliff Affordable Housing Plan City Council Agenda of February 7th Dear Mayor Moulton-Patterson; We are writing to you concerning the above item on your agenda. As you know, since the Planning Commission approved this Affordable Housing Plan in May 1993 we have received comments and concerns from individual Councilmembers and have revised the Commission-approved document substantially in an attempt to reach a mutually acceptable Plan. We are in agreement with the materials before you except for the recent recommended staff changes to the document. We request that the revised Affordable Housing Plan be approved without the changes recommended by staff. Our request is summarized on the following page; i 320 Broadway.Suite 100,Santa Nlc Jca.CA 90401 (310" 394-33 9 F z.310?39-�-6872 2124 Main St..quite 200.Huntin;,n Beach.CA 92646 (7141 960-a3>i Fay:(71_�374-0520 s Plan Staff Applicant's Reason for Item Recommendation Request Applicant Request Page 2. Add, Information Eliminate from Plan Not part of Holly Background regarding Ellis Seacliff Specific Goldenwest Specific Plan; subject to Plan (Tr. #ts 14007 & different 14009) units requirements Page 6.C.2. Add: "Units which Eliminate added Additional language Units Constructed by have received City language is confusing and Others financial subsidy or unmeasurable; a other incentives of goal should be to equal financial encourage affor- value shall not be dable housing. eligible. " Page 6.D.1-3 Delete: Incentives Include proposed City should en- Incentives & regarding parking, incentives except courage affordable Standards open space and fees. for reduced fees. housing thru actions of no cost to City. Page 6.D.4. Change: "Any incen- Retain word "shall" Any future City- Incentives & ti ves, standards or wide incentive Standards programs adopted as programs should part of a City-wide apply City-wide to affordable housing all property. program sheii My apply to Developer. " Therefore, our request is to approve the revised Holly Seacliff Affordable Housing Plan without the staff-recommended changes. Sincerely, S RCLIFP PARTIES By: Urban West Communities Tom Zanic Vice President cc: Members of the City Council Ray Silver, Acting Director of Comm. Dev. Howard Zelefsky, Planning Director Gail Hutton, City Attorney TY .( Cliff Parme i:. uLERh I •• t NUAITft IlY 1F �,tiQ� f! _ ,IAA C,4 TT,,/ January 28, -1994 Linda Moulton-Patterson Mayor CITY of HtJN XAk M BMW 2WO Main 8trest Huntington Beach, CA 92648 Rer Holly 8eecliff Affordable Housing Plan City Council Agenda of February 7th Dear Mayor Moulton-Patterson, We are writing to you concerning the above item on your agenda. As you know, since the Planning Commission approved this Affordable Housing Plan In May.1993 we have received comments and concerna from .individual Councilmembers and have revised the Commission-approved document substantially in an attempt to reach a mutually acceptable Plan. We are in agreement with the materials before you except for the recent recommended staff changes to the document. We request that the revised Affordable Housing Plan be approved without the changes rwcommended by staff. Our request is summarized on the following page, PT- ,'•41110 Il'tf• ( A�0-1 !1 11tII i,)•I 1 i,{) l,n t 1101 iU! w4i) [.j . 1�'� ��alli•'rl ,'`llll !tl(1 1 Illlkl Ilh;l,tll Ik'rn.'l ,1, 1 J,..'Irlr'i 1! I'i l .!tq1•I 'il I 1 1>,1!1'I I f I'1 11'>,!1) nu.InMllw•r•.YW+•IYwn+.YWYWYwpnN.nI1Nw11/+I.wYI�IYYI wwlnWmNIYUMYWIxvIWrY W4M.Yluu1.YYY1Mr,rnIrYIW1iWYYwNW nMYrrvlMnulrwlw•.rIYY4YYWIWIY...........YrM,nMYr.nwl..uYIIIY IIW441.I......rIvWl+r..wYwwYYwYYWYw.NMn Plan Staff Applicant's Reason for Item Recommendation Request Applicant Request W IYWIUMIIvI IYr.rYWWWWW.WwWWwrMl.nww•.wwwvn..y.l.xx rYuuul.Y..uwI.WYYululrwu uwrwWlrN.w W.wuWu.YNnnlw•IrwVM1YW.I . wnruWlWwruuunWMln.IlrM.l.nlM1l.nvnyW YYW.nIuxWWnMMw. uMMrY1YlYM.•uwuw.wY.uI.M1I.Wr Page 2. Add, Information Eliminate from Plain Not part of Holly BaG=W_d regarding Ellis Seacliff Specific Goldenwest Specific Plant subject to Plan (Tr. 4s 14W7 & different 14009) units requirements Page 6.C.2. Addr "Units which Eliminate added Additional language Units Qasggg ted Aty have received City language is confusing and financial subsidy or unmeasurablej a other ln2gaLLves of goal should be to eglol, financial encourage affor- vaigg Mhall not be dable housing. eligible. " .Page 6.D.1-3 Deleter Incentives Include proposed City should en- Incentives & regarding parking, incentives except courage affordable S� open space and fees. for reduced fees. housing thru actions of to City. Page 6.D.4. Changer "Any incen- Retain word "shall" Any future City- Incentives & tivms, standards or wide incentive Standards programs adopted as programs should part of a City-wide apply City-vide to affordable housing all property. program eheii mm apply to Developer. " IwW.W.Y1...I,IrIMnYMMI.w.1111/wMIM.YMW4Y.IW,ri.®r ..O..rgIAN,I..W.M...uwMlnnw.wln.—WMYMYYYWYYI YOM.MI,nM.n,n.nwr�.MrAx�YWrwrIMIW.YYYwW.YI...YWM. YY..�YMII.rYIY Therefore, our request is to approve the revised Holly Beacliff Affordable hrousIng Plan without the staff-recomended changes. Sincsx�e.i y, SSl1Q.l'W PARBOW Syr Urban West Communities Tom genic Vice President CCr Members of the City Council Ray SIIV*r, Acting Director of Comm. Dev. Howard Selefsky, Planning Director Gail Hutton, City Attorney REQUEST FOR CITY COUNCIPACTION Date August 2, 1993 Submitted to: Honorable Mayor and City Council Memb s Submitted by: Michael T. Uberuaga, City Administrator �t Prepared by: Michael Adams, Director of Community Developme Subject: HOLLY SEACLIFF AFFORDABLE HOUSING PLAN 0)'J k/l(pI93 7)e4;4.;A 77C) Cp//(./V A V7/9 3 Consistent with Council Policy? Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: 02y STATEMENT OF ISSUE• Transmitted for the City Council consideration is the Holly-Seacliff Affordable Housing Plan. The Holly-Seacliff Specific Plan requires all developers of residential projects to submit an affordable housing plan in conjunction with any subdivision. RECOMMENDATION• Motion to: "Approve Seacliff Partners Affordable Housing Plan as amended by the Planning Commission. " ANALYSIS• Planning Commission action on May 18, 1993 : ON A MOTION BY RICHARDSON, SECOND BY BOURGUIGNON, THE PLANNING COMMISSION RECOMMENDED APPROVAL OF THE HOLLY-SEACLIFF AFFORDABLE HOUSING PLAN AS AMENDED BY THE COMMISSION, BY THE FOLLOWING VOTE: AYES: Cook, Bourguignon, Biddle, Richardson, Inglee NOES: Dettloff, Gorman ABSENT: None ABSTAIN: None MOTION PASSED In April 1992, the City adopted the Holly-Seacliff Specific Plan which allows up to 3, 895 dwelling units . As part of the Specific Plan requirements developers of residential property had the following obligation with respect to affordable housing: PIO 5/85 • "All developers of residential projects shall be required to submit an affordable housing plan in conjunction with any subdivision in accordance with the City' s adopted Housing Element. An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: a. Fifteen (15) percent of the total units proposed shall be for households earning less than 120% of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. c. The estimated applicable sales price and rental rate of the units . d. Residential projects for households earning less than 80% of the Orange County Median may request a subsidy by one or more of the following: 1. Direct financial assistance. 2. Reduction in fees and/or exactions . 3 . Deviations for specific development standards of the Holly-Seacliff Specific Plan. Exception: An In-Lieu Fee may be applied on small projects . Parcels one (1) acre in size or less may pay a fee established by the City Council in lieu of providing on-site affordable housing units . " On March 8, 1993, Seacliff Partners submitted an Affordable Housing Plan in an effort to comply with the Specific Plan requirement. The Planning Commission amended the affordable housing plan by adding language that would clarify the document ' s interest . FUNDING SOURCE: Not applicable. ALTERNATIVE ACTION: The City Council may modify the Holly-Seacliff Affordable Housing Agreement as deemed appropriate. ATTACHMENTS: 1. Holly-Seacliff Affordable Housing Agreement MTU:MA:HZ :kjl RCA - 8/2/93 -2- (7231d) HOLLY-SEACLIFF SPECIFIC PLAN AFFORDABLE HOUSING PLAN FOR SEACLIFF PARTNERS PROPER TIES I . INTRODUCTION & BACKGROUND A. Purpose & Intent This Affordable Housing Plan has been prepared by Seacliff Partners in compliance with the affordable housing requirements of the Holly-Seacliff Specific Plan, and conditions of approval for Tentative Tract Maps 14007 and 14009 located within the Ellis-Goldenwest Specific Plan. The intent of this Affordable Housing Plan is to preserve and provide housing opportunities for moderate income persons and households in furtherance of the goals, policies and programs of the Housing Element of the City of Huntington Beach General Plan, and consistent with other City-adopted plans and project approvals . B. Background The Holly-Seacliff planning area encompasses a total of 768 acres of land within the central part of the City of Huntington Beach. The following is a summary of pertinent City-adopted plans and project approvals affecting the ,development of housing within the Holly-Seacliff planning area : 1. Ellis-Goldenwest Specific Plan: adopted June 1988 . Established zoning and development standards and requirements for "Estate Residential" uses (less than or equal to 4 units per acre) within a 160-acre area within the north-central portion of the Holly-Seacliff planning area. The Ellis-Goldenwest Specific Plan permits a minimum residential for size of 8, 000 square feet and a maximum density of 3 dwelling units per acre. 2 . Holly-Seacliff General Development Plan: (General Plan Amendment No. 89-1) adopted January, 1990 . Adopted a master plan of land use, circulation, open space, public facilities and community theme for the 768-acre Holly-Seacliff area (including the Ellis-Goldenwest Specific Plan) . The Holly-Seacliff Master Plan allows for the development of a maximum of 4,410 residential units at densities ranging from 3 to 25 dwelling units per gross acre. Final Environmental Impact Report No. 89-1 certified to contain mitigation measures for General Plan Amendment No. 89-1. ATTACHMENT NO. 3 . City of Huntington Beach 1989 Housing Element Update: adopted July, 1990 . Identifies local housing needs, opportunities and constraints, and establishes goals, policies and programs for the attainment of decent housing for households of all socioeconomic, racial and ethnic groups, the provision of a variety of housing opportunities and types, and the development of a balanced community. The Housing Element includes a regional assessment of needs by varying income groups . 4 . Holly-Seacliff Development Agreement No. 90-1: adopted December, 1990 . Vested Seacliff Partners ' right to develop 3, 780 residential dwelling units within the Holly-Seacliff area in accordance with existing City policies and regulations or a period of 15 years in exchange for accelerated park dedications and city-wide public infrastructure improvements, neighborhood park improvements and payment of special traffic impact and public facility fees. 5 . Tentative Tract Maps 14007 and 14009 : approved September, 1991. Subdivision of 31 acres within the Ellis-Goldenwest Specific Plan into 141 - 8, 000 square foot minimum, single family lots . As a condition of approval, Seacliff Partners was required to submit an affordable housing plan to provide 20 percent of the total residential units for moderate income households, either within the tract or at an off-site location within the City. Through a subsequent agreement, the Huntington Beach City School District has agreed to acquire a site within Tract 14009 for a new elementary school, reducing the total number of units to 109 . This Affordable Housing Plan addresses providing the 20 percent requirement (22 units) for these tracts. 6 . Holly-Seacliff Specific Plan: adopted April, 1992 . Adopted zoning and comprehensive development standards for a total of 3, 845 residential units within the Holly-Seacliff area. (The total number of residential units was subsequently amended to 3, 895 by the adoption of Code Amendment No. 91-12 in May, 1992 . ) The Holly-Seacliff Specific Plan contains the following affordable housing requirements : "All developers of residential projects shall be required to submit an affordable housing plan in conjunction with any subdivision in accordance with the City' s adopted Housing Element . An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: -2- (1940D) a. Fifteen (15) percent of the total units proposed shall be for households earning less than 120 percent of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. c. The estimated applicable sales price and rental rate of the units . d. Residential projects for households earning less that 80 percent of the Orange County Median Income may request a subsidy by one or more of the following: 1. Direct financial assistance. 2 . Reduction in fees and/or exactions . 3 . Deviations from specific development standards of the Holly-Seacliff Specific Plan. Exceptions : An In-Lieu Fee may be applied on small projects . Parcels 1 acre in size or less may pay a fee established by the City Council in lieu of providing on-site affordable housing units . " C. Definitions The following definitions apply to terms used in this plan: "Affordable Housing" - A residential unit that is affordable to households earning less than 120 percent of the County Median Income. "City" - The City of Huntington Beach, California. "County" - The County of Orange, California . "Developer" - Where capitalized, means Secliff Partners, a joint venture between Urban West Communities and Pacific Coast Homes, or their successors or assigns . "Development Agreement" - Development Agreement No. 90-1 for the Holly-Seacliff area. "Median Income" - The most current median income figure for Orange County as published by the United States Department of Housing and Urban Development. -3- (1940D) "Moderate Income Household" - A household with a total annual gross income of between 80 and 120 percent of the Median Income as defined above. "Plan" - Where capitalized, means the Holly-Seacliff Affordable Housing Plan. "Specific Plan" - The Holly-Seacliff Specific Plan as it may :be amendment from time to time. II . PLAN In accordance with the Specific Plan requirements, this section identifies the number, location, type, size, phasing and estimated sales prices of the affordable units to preserved or constructed by the Developer. A. Number of Affordable Units The approved total number of residential units in the Specific Plan is 3, 895 units . The properties to be developed by the Developer within the Specific Plan are approved by 3 , 537 residential units . Developer' s Specific Plan affordable housing requirement is 531 moderate income units (15% x 3, 537 total units) . If fewer than 3, 537 units are actually built by Developer within the Specific Plan area, then the required number of affordable units required will be reduced proportionally. Additionally, the Developer has been required to provide affordable housing units as part of approved Tentative Tract Maps 14007 and 14009 . The tract requirement is 22 moderate ,income units (20% x 109 total units) . B. Location, Type and Size of Affordable Units The following table identifies a menu of proposed locations, types and sizes of affordable housing units to be constructed within the Specific Plan area. The table sets forth the maximum possible number of units built will be at the discretion of the Developer. For the purposes of satisfying the affordable housing condition for Tentative Tract Maps 14007 and 14009, the location of the required units will be in Holly-Seacliff Specific Plan, in Planning Units II-4, II-5 or II-6 . Each project providing affordable housing shall enter into an affordable housing agreement with the City that assures continued affordability through the use of a covenant on the property. -4- (1940D) TABLE I Maximum Proposed Estimated Number Location Acreage Estimated Sales Price of Units (Planning Unit) (Approx. ) Type Size Rental Rate* 170 II-4 9 . 5 Flats 500-1, 050 SF $136, 685 to Studio, $182, 900 1 & 2 BR 150 II-5, 6 8 Flats 500-900 SF $136, 685 to Studio, $182, 900 1 & 2 BR 475 IV-1 16 Flats 500-900 SF $136, 685 to IV-2 8 Studio, $182, 900 IV-4 1 & 2 BR 40 I-2,3 & 42 Second 400-650 SF Rental units TTM 14007 & 41 Units Studio, sold with 14009 1 & 2 BR primary units (estimated rents are $530-$740 per month) NOTE: * Sources : City of Huntington Beach, Affordable Housing Price/Income Guidelines updated February 1, 1992 (for sales prices) and City of Huntington Beach, Housing Element (for rental rates) . The estimated sales prices and rental rates are as of February 1, 1992 and are subject to adjustment in proportion to increases or decreases in Orange County median income as published by HUD. -5- (1940D) C. Additional Provisions 1. Second Units Up to a total of 40 "second units" within Planning units 1-2 and 1-3 of the Specific Plan and/or Tracts 14007 and 14009 shall be allowed under existing requirements to satisfy Developer ' s affordable housing requirements . No age restrictions shall apply to occupancy of such units, however the eligible units would be required to covenant that the units will be occupied by persons of moderate or low income. The form of such covenant shall be approved by the Director of Community Development . Such units shall be allowed without a conditional use permit as long as all other zoning standards are met. 2 . Other Units Constructed by Developer Any other affordable housing units other than those affordable units listed in Table I constructed by Developer and sold to persons or families earning between 80 percent - 120 percent of OCMI within the Specific Plan area shall be counted towards the required total number of units . 3 . Units Constructed by Others Any affordable housing units constructed by others within the Specific Plan under contract or agreement with Developer may be used to satisfy Developer ' s requirements . The affordable housing credit provisions of such contract or agreement may be approved by the Director of Community Development prior to satisfaction of Developer' s requirement. Units which have received City financial subsidy or other incentives of equal financial value shall not be eligible. D. Incentives and Standards Consistent with the concept of the adopted Housing Element and Affordable Housing Task Force Report, the City should implement incentives, flexible development standards and otherwise provide encouragement in order to facilitate the construction of affordable housing. The following shall apply to the affordable housing units required under the Specific Plan: 1. Other Incentives and Standards : Any incentives, standards or programs adopted as part of a City-wide affordable housing program may apply to the Developer. -6- (1940D) • E. Phasing The provisions of the affordable housing units shall be phased with the occupancy of the market rate units in accordance with the following phasing plan: MARKET AFFORDABLE PHASE RATE UNITS (1) UNITS (2) I 501 75 II 11001 150 III 1, 501 225 IV 2,001 300 V 2, 501 375 VI 3, 001 450 VII 3, 501 total remainder Developer is required to: a) apply for tentative tract maps and any necessary conditional use permits for 75 affordable units within 4 months of issuance of the certificate of occupancy for the last corresponding market rate unit within each phase; b) submit tract map to the City within 2 years from tentative tract map approval; c) commence construction of such affordable units within 3 months of recordation of the affordable units final tract map(s) ; and d) complete all affordable units within 18 months of commenced construction date. The time for completion of construction shall be extended for the period that construction is interrupted due to any delay caused by acts of god, construction moritoriums of any kind, lack of availability of materials, damage to improvements, riots or civil disturbance or any other condition beyond the control of the developer . (1) Cumulative units within the Holly-Seacliff and/or Ellis-Goldenwest Specific Plans area. (2) Cumulative units in any location permitted under the Affordable Housing Plan. -7- (1940D) APPENDIX It is recognized that the City of Huntington Beach may wish to allow other options for satisfying the Developer' s affordable housing obligation. Some of these options may require an amendment to the Specific Plan and can include the following: a. Developer may receive one to one unit credit for preserving existing at-risk low or moderate income housing units through buy downs, financing, refinancing or other means approved by the City. Such units preserved by Developer shall be counted towards the Developer ' s total affordable housing requirement on a one-for-one basis . b. Developer may satisfy up to one-third of the total affordable housing requirement through an in-lieu fee. c. Any affordable housing units provided by Developer and sold to households earning less than 120 percent of OCMI outside of the Specific Plan area within the City may be counted towards the required total number of units . -8- (1940D) 09i10i93. 11 : 53 a 13103945872 URBAN WEST COMM. 01 S- mcff P=ers .. ;:,.,.!:, I, .IIL,ua•...a.Jlih.lnllrll,,;;:um,:n. Post-it"brand fax transmittal memo 7671 x or pe0*•• � o Fro - L September 10, 1993 � 0 co. lV C Dept. v Phone N eK k er N Mr. Howard Zelefsky fu L — bs 'D Planning Director City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, Ca 92648 Re: Holly Seacliff Affordable Housing Plan Dear Howard: We request continuance of the hearing on the Holly Seacliff Affordable Housing Plan at the City Council to October 4, 1993. Yours truly, Seacliff Partners By: Urban West Communities. Tom Zanic Vice President 100.'.,;111 \{,.I Ilt.1.1. :�,)1,.{lll ( il,�l 4.)•{-li•i ) I.,.� IIIIIV iV'I•(d?'!,� - - L_] 08i25i93 11:09 $ 13103946872 URBAN WEST COMM. Seachff Partn.-...--. ..� ,e P.,,.I.; t u:o-t{h�tn�.u:,�l tl+.+q'.1'c•r t„�.u�+nn;��„' - .. August 25, 1993 Mr. Howard Zelefsky Planning Director CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach, CA 92648 Re: Affordable Housing Plan Holly Seacliff Specific Plan Dear Howard: This letter is to request a continuance on the above referenced item from the City Councils- September 7th agenda to September 20th. If you should have any questions, please let me know. ISincerely, SEACLIFF PARTNERS By: Urban West Communities Tom Zanic Vice President ,.t;li )Ilk,-:+ia:, .. .•t)1,..,.l .�."llltll t t{. 1.{.Sittt I';I�1 ;1411 j�l{..t'.t<,!. .'l).'i �.6,�n •d ..., _'l't` .�..;,!tt., n lt;:.n 1,. . ..ti)I';P4 Seachff Partners A 1ohit%Vn,VV of Nci-Ja Cosa Hamel and V.%V.0 Develonasui Corp. January 18, 1994 i Honorable Linda Moulton-Patterson, Mayor - Huntington Beach City Council i 2000 Main Street f Huntington Beach, CA 92648 Subject: City Council Agenda Item F-3 Seacliff Partners' Affordable Housing Plan for Holly Seacliff Area Mayor Moulton-Patterson and Council Members: Urban West Communities' offices in Santa Monica sustained considerable damage in yesterday's earthquake. As a result, I will be unable to attend this evening's City Council meeting, and respectfully request that the above agenda item be continued to your regular meeting on February 7, 1994. I apologize for any inconvenience this may create. Sincerely, SEACLIFF PARTNERS By: Urban West Communities 10M 27 VIce President cc: Michael Uberuaga, City Administrator Ray Silver, Deputy City Administrator Howard Zelefsky, Planning Director 520 Broadway, Suite 100, Santa Monica, CA 90401 (3.10) 394-3379 Fax (310) 394-6872 23 Corporate Plaza, Suite 230, NTewport Beach, CA 92660 (714) 721-9777 Fax(714) 729-121.4 Page 16 - Council/Agency Minutes—03/01/99 • Further discussion was held between the City Councilmembers and Planning Director Zelefsky. Councilmember Sullivan commented on the fact that the vote to deny the Holly-Seacliff Affordable Housing Plan Amendment No. 1 was approved by the Planning Commission on a six zero vote. A motion was made by Sullivan, second Harman to approve Alternative Action No. 2 to continue the Holly-Seacliff Affordable Housing Plan Amendment No. 1 and direct staff accordingly. A motion was made by Sullivan, second Harman to change the previous motion and to approve the Planning Commission recommendation to deny the Holly-Seacliff Affordable Housing Plan Amendment No. 1. Planning Director Zelefsky stated that the applicant can build apartments at market rate but that the apartments would not apply to the affordable housing requirement. Bill Holman, representing PLC Land Company, informed Council of what had been the intent of PLC Company in this issue. Planning Director Zelefsky explained the option that the staff recommends, but that the developer may not wish to do. City Administrator Silver responded to Councilmember Garofalo's question as to whether the staff and developer could come to a compromise in 30 days. In response to City Administrator Silver, Planning Director Zelefsky stated that there is no date set for the affordable housing ordinance to return to the City Council; that the affordable housing ordinance has to be presented to the Planning Commission and that should be in about 60 days. Planning Director Zelefsky stated the Holly-Seacliff Development Agreement has its own obligations to meet and it stands alone. Bill Holman, representing PLC Land Company, stated that they are looking for direction from Council as to what would be acceptable. He stated that he believes the Council does not favor subsidizing, using density bonuses, etc. The motion made by Sullivan, second Harman as revised, carried by the following roll call vote: AYES: Bauer, Green, Dettloff, Harman, Sullivan NOES: Julien, Garofalo ABSENT: None A motion was made by Sullivan, second Dettloff to approve the staff recommendation and to approve the Holly-Seacliff Affordable Housing Plan Amendment No. 1 with modifications set forth in Attachment No. 1 to the Request for Council Action dated March 1, 1999 as follows: Page 1, I. INTRODUCTION & BACKGROUND, A. Purpose & Intent, 2nd paragraph. Changes are the strike-through on the first line, and the bold text in the larger font on the second line: The intent of this Affordable Housing Plan is to preserve and provide 19F sale' housing opportunities for very low, low and moderate income persons and 03/01/99 - Councilogency Agenda - Page 17 households in furtherance of the goals, policies and programs of the Housing Element of the City of Huntington Beach General Plan, and consistent with other City-adopted plans and project approvals. Page 3, C. Definitions: Change is inserted as the 6th definition after"Development Agreement:" "Low Income Household" —A household with a total annual gross income of between 50 - 80% of the Median Income as defined below. Page 3, C. Definitions: Change is inserted as the 11th and last definition: "Very Low Income Household" —A household with a total annual gross income of less than 50% of the Median income as defined above. Page 5, C. Additional provisions, 1. Other Units construction by Developer, Vt paragraph: Change is the strike-through on lines 2 and 3: Any other affordable housing units other than those affordable units listed in Table I constructed by Developer a+ ° ° within the Specific Plan area shall be counted towards the required total number of units. Page 5, C. Additional provisions: Change is the following 4th and last paragraph: 4. Rental Units If rental units are used to meet the affordable housing requirement, the following shall be required: a. A minimum of 50 percent of the units shall be rented at the very low income level, and b. The remaining 50 percent of the units shall be rented at levels that do not exceed low income. Planning Director Zelefsky informed Council of what this motion accomplishes. The motion made by Sullivan, second Dettloff carried by unanimous vote. (CITY COUNCIL) APPROVED CONTRACT WITH WAVE IMAGING CORPORATION FOR PURCHASE AND IMPLEMENTATION OF THE CITY'S PHASE I ELECTRONIC DOCUMENT IMAGING, RETRIEVAL, AND RECORDS MANAGEMENT SYSTEM &APPROVED WAIVER OF PROFESSIONAL LIABILITY/INSURANCE REQUIREMENTS (600.10) The City Council considered a communication from the Fire Chief informing Council that the city staff has completed the vendor selection and contract negotiation process with Wave Imaging Corporation for the City-wide Electronic Document Imaging, Retrieval, and Records Management Systems project and transmitting a Professional Services Contract Between The City And Wave Imaging Corporation For Electronic Document Imaging Retrieval And Records Management System. z L�.CGSir�-ALANIV j a/ Council/Agency Meeting Held: �30•� Deferred/Continued to: O ❑ Approved ❑ Conditionally Appro ednDenied kEPv Iry n k's Signature Council Meeting Date: October 5, 1998 Department ID Number: CD98-38 CITY OF HUNTINGTON BEACH REQUEST FOR ACTION " SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS f, rY,, r.. SUBMITTED BY: RAY SILVER, City Administrator L?T� PREPARED BY: HOWARD ZELEFSKY, Planning Director 4 v SUBJECT: HOLLY SEACLIFF AFFORDABLE HOUSING PLAN AMENDMENT NO. 1 } Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis, Environmental Status,Attachment(s) Statement of Issue: Transmitted for your consideration is a request by PLC Land Company to amend the Holly Seacliff Affordable Housing Plan to allow rental units at the Median income level to meet affordable housing goals. The Affordable Housing Plan currently allows for Moderate income level (120 percent of County Median income) for-sale units only. No change is proposed to the for-sale unit provisions. The Planning Commission denied the request and is recommending denial (Recommended Action - A) because the cost of rental units at Median income limits are comparable to market rents and would not be "aff is recommending approval with modifications to limit the rents to Low and Very Low income levels (Recommended Action - B) because the allowance of affordable rental units is consistent with City goals and policies. Funding Source: Not applicable. Recommended Action: A. PLANNING COMMISSION RECOMMENDATION: Motion to: "Deny Holly Seacliff Affordable Housing Plan Amendment No. 1." REQUEST FOR ACTION 0 MEETING DATE: October 5, 1998 DEPARTMENT ID NUMBER: CD98-38 Planning Commission Action on July 28, 1998: THE MOTION MADE BY BIDDLE, SECONDED BY KERINS, TO DENY HOLLY SEACLIFF AFFORDABLE HOUSING PLAN AMENDMENT NO. 1 CARRIED BY THE FOLLOWING VOTE: AYES: CHAPMAN, BIDDLE, INGLEE, KERINS, TILLOTSON, SPEAKER NOES: NONE ABSENT: LIVENGOOD ABSTAIN: NONE MOTION PASSED B. STAFF RECOMMENDATION: Motion to: "Approve Holly Seacliff Affordable Housing Plan Amendment No. 1 with modifications (Attachment No. 1)." Alternative Action(s): The City Council may make the following alternative motion(s): 1. "(Applicant's Request)Approve Holly Seacliff Affordable Housing Plan Amendment No. 1 (ATTACHMENT NO 2)." 2. "Continue Holly Seacliff Affordable Housing Plan Amendment No. 1 and direct staff accordingly." Analysis: A. PROJECT PROPOSAL: Applicant: PLC Land Company, 23 Corporate Plaza, Ste. 250, Newport Beach, CA 92660 Location:Holly Seacliff Specific Plan area PLC's request is to amend the Holly Seacliff Affordable Housing Plan (Attachment No. 2) as follows: • Page 1 - Eliminate the words "for sale" and add the word median to the second paragraph. • Page 5— Eliminate the reference to moderate income households in section 1 and add reference to median income rental units. The purpose of the amendment request is to allow rental units to meet affordable housing goals in addition to the for-sale units currently required by the Affordable Housing Plan. PLC has requested that the rental units be available at Median income levels in lieu of the Moderate income levels allowed for the for-sale units. CD98-38 -2- 09/24/98 2:49 PM REQUEST FOR ACTION MEETING DATE: October 5, 1998 DEPARTMENT ID NUMBER: CD98-38 B. BACKGROUND The Holly Seacliff Specific Plan (HSSP) requires that 15 percent of the units built within the Specific Plan area be restricted to Moderate income households for a period of 30 years. The HSSP allows such units to be for-sale or rental. It requires that each developer submit an "affordable housing plan" for City approval (Attachment No. 3). In 1994, the City Council approved an Affordable Housing Plan (AHP) for Seacliff Partners properties which covered almost all of the Holly Seacliff residential area (448 of the total 565 acres in Holly Seacliff). These properties were acquired by PLC and MS Vickers II, LLC in May 1996. Notwithstanding the allowance of rental units in the HSSP, the AHP specifies that all of its affordable units be for-sale. C. PLANNING COMMISSION MEETING AND RECOMMENDATION: The Planning Commission considered this item on July 28, 1998. The Planning Commission expressed concern that rental units at Median income levels would not be more afforadable than market rate units. The Planning Commission voted unanimously to deny the applicant's request. D. STAFF ANALYSIS AND RECOMMENDATION: Staff concurs with the Planning Commission that the applicant's request would not result in "affordable" rental units. However, staff recommends that the City Council approve the use of rental units with the requirement that the units be restricted to the Low and Very Low income levels. Staffs recommendation is based on two factors: 1) the current HSSP and 2) rent data. Current HSSP The proposed amendment to allow rental units to meet affordable goals is consistent with the general provisions of the HSSP which allow for affordable rental housing (Attachment No. 3). The HSSP also states that Low or Very Low income projects (for households earning less than 80 percent of the Median) may request "subsidies" which would improve the economic feasibility of a project. These subsidies include: 1) direct financial assistance, 2) reduction in fees and/or exactions, and 3) deviations from specific development standards. The use of these provisions would be evaluated on a project-by-project basis by City staff. However, the possibilty of one or more of these subsidies may reduce any perceived economic burden associated with staffs recommendation for Low and,Very Low rental units. CD98-38 -3- 09/24/98 2:49 PM REQUEST FOR ACTION •MEETING DATE: October 5, 1998 DEPARTMENT ID NUMBER: CD98-38 Rent Data A comparison of rents for a three bedroom unit (family of four) is provided in the table below for staffs recommendation and the applicant's request. Maximum monthly rent figures are provided for two categories of development: projects assisted with public monies (e.g. redevelopment) and privately funded (i.e. no public assistance) development. The publicly assisted category is included because a developer could request an agreement with the City's Redevelopment Agency pursuant to the HSSP or seek financial assistance from another public source for an affordable housing project. If the City were to approve such an arrangement, the maximum allowable rents would be more restricted. There is no requirement that a developer use redevelopment funds or any other public assistance to develop an "affordable" project. For these "Privately-Funded" projects, the potential maximum affordable rents are significantly higher. RENTAL COMPARISONS FOR THREE BEDROOM UNIT/FAMILY OF FOUR Staff Recommendation PLC's Average (Half of Each Request Market Rate Income Category) Income Level Very Low Low 7 Median na (50% of (80% of Median) Median) Maximum Annual Income $32,900 $45,300 $65,800 Maximum Monthly Rent Privately-Funded Project $9161 $1,2771 $1,875 1 $1,145— 1,209 Publicly-Assisted Project 775 939 1 1,565 The applicant's request would allow a three bedroom unit to rent for approximately $1,500 to $1,900 per month and qualify as affordable. Alternatively, staffs recommendation would yield affordable three bedroom units at approximately $800 to $1,300 monthly rent levels. For comparison purposes, the average fair market rent for a three bedroom unit in Huntington Beach in 1998 was estimated at $1,193 by HUD. REALFACTS, a service which provides information for rental complexes of 100 units or more, reports that of June 1998 average rents for three bedroom units were $1,145 and $1,209 depending on bathroom count. The data show that PLC's proposal would allow "affordable" rents that exceed current market averages. A Low income project without public assistance could also be rented at a level greater than average rents in the city. Based on this data, staff believes that its recommendation for half of the units to be rented at Very Low income rents and half at Low income would provide a reasonable affordable housing alternative that does not represent an economic burden for a developer. CD98-38 -4- 09/24/98 2:49 PM • • REQUEST FOR ACTION MEETING DATE: October 5, 1998 DEPARTMENT ID NUMBER: CD98-38 Staff recommends the mix of Very Low and Low income rental units because it furthers the goals of the City's Housing Element, is consistent with City requirements in other parts of the city, and would provide greater flexibility in meeting the City's housing objectives. Should the City Council not support the restriction of Low and Very Low income levels for rental units, staff does not recommend any change to the Affordable Housing Plan. Staff believes that if a developer chooses to build an apartment project which will rent at market levels (i.e. Median levels), the City should not then credit that developer for meeting affordable housing goals. Environmental Status: The proposed project is exempt pursuant to Section 15061(b)(3) of the California Environmental Quality Act which states that a project shall be extempt if it does not have the potential for causing a significant effect on the environment. Moreover, the subject site is covered by Environmental Impact Report No. 89-1 which was certified by the City Council on January 8, 1990. Section 2.5.1 of Development Agreement No. 90-1 for the Holly Seacliff area states: "City agrees that no subsequent or supplemental environmental impact report shall be required for any development approval unless the anticipated environmental impacts to any proposed project exceeds the level of impact indicated in Final Environmental Impact Report No. 89-1." Attachment(s!: City Clerk's Page Num ber No. Description 1. Holly Seacliff Affordable Housing Plan (Staff Recommendation) 2. Holly Seacliff Affordable Housing Plan (Applicant's Request) 3. Holly Seacliff Specific Plan Affordable Housing Section 4. Planning Commission Report dated July 28, 1998 CD98-38 -5- 09/24/98 2:49 PM � � ����«2: - w - : « x: y��« - .��r ,, _ _ � � _a 2:�y %���y:: � �J � © . »�«��2���m � . � s :: `��A� : \ , � � � < � `�\ � �� � -�� �[ \� � ��% - < �\�: «} w. � ° {3 : - ; � ..��®�° �\�:® ^ 3 �:\ �� , ����\��� : \ - /d�:���� - � 5 > �> � . . . �>�<� a�:w m � x .yam « : . . �������\»wpm<� � ������� �\��� 3. The City shall use its best efforts to process all tentative tract map and final tract map applications in a timely manner. If a final tract map containing designated affordable housing units is not approved within 18 months of submittal of the tentative tract map by Developer, the above construction obligation for those affordable units shall be tolled based on the processing delay. 4. During the last phase of affordable units (affordable unit number 376 and beyond), building permits will be issued on a one-for-one basis with the last phase of market rate units (market rate unit 3251 and beyond) until the Developer's total obligation of affordable units (15%of the total units built)has been met. 5. Developer may bond for the construction of the required affordable units in Column B not under construction or completed, at the rate of$40,000/unit(adjusted yearly based on CPI). 7 (M038) � 2'TT \ / .\ .7 , ��/ �: �� ^Aff.- . � < � »- + 2_ - m© »��� - - � = . \dMW . :\ \ City of Huntington Beach 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF COMMUNITY DEVELOPMENT Building 536-5241 Planning 536-5271 APPLICANT'S REQUEST PROPOSED AMENDMENT Holly-Seacliff Specific Plan Affordable Housing Plan For Seacliff Partners Properties Approved by City Council -February 28, 1994 I. INTRODUCTION & BACKGROUND A. Purpose & Intent This Affordable Housing Plan has been prepared by Seacliff Partners in compliance with the affordable housing requirements of the Holly-Seacliff Specific Plan. The intent of this Affordable Housing Plan is to preserve and provide moo"housing opportunities for median and moderate income persons and households in furtherance of the goals, policies and programs of the Housing Element of the City of Huntington Beach General Plan, and consistent with other City-adopted plans and project approvals. B. Background The Holly-Seacliff planning area encompasses a total of 768 acres of land within the central part of the City of Huntington Beach. The following is a summary of pertinent City-adopted plans and project approvals affecting the development of housing within the Holly-Seacliff planning area: 1. Holly-Seacliff General Development Plan: (General Plan Amendment No. 89-1) Adopted January 1990. Adopted a master plan of land use, circulation, open space, public facilities and community theme for the 768-acre Holly-Seacliff area(including the Ellis-Goldenwest Specific Plan). The Holly-Seacliff Master Plan allows for the development of a maximum 4,410 residential units at densities ranging for 3 to 25 dwelling units per gross acre. Final Environmental Impact Report No. 89-1 was certified to contain mitigation measures for General Plan Amendment No. 89-1. 1 (k1038) 2. City of Huntington Beach 1989 Housing Element Update: Adopted July 1990. Identifies local housing needs, opportunities and constraints, and establishes goals, policies and programs for the attainment of decent housing for households of all socioeconomic, racial and ethnic groups, the provision of a variety of housing opportunities and types, and the development of a balanced community. The Housing Element includes a regional assessment of needs by varying income groups. 3. Holly-Seacliff Development Agreement 90-1: Adopted December, 1990. Vested Seacliff Partners' right to develop 3,780 residential dwelling units within the Holly- Seacliff area in accordance with existing City policies and regulations for a period of 15 years in exchange for accelerated park dedications and citywide public infrastructure improvements, neighborhood park improvements and payment of special traffic impact and public facility fees. 4. Holly-Seacliff Specific Plan: Adopted April 1992. Adopted zoning and comprehensive development standards for a total of 3,845 residential units within the Holly-Seacliff area. (The total number of residential units was subsequently amended to 3,895 by the adoption of Code Amendment No. 91-12 in May 1992.) The Holly Seacliff Specific Plan contains the following affordable housing requirement: "All developers of residential projects shall be required to submit an affordable housing plan in conjunction with any subdivision in accordance with the City's adopted Housing Element. An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: a. Fifteen(15)percent of the total units proposed shall be for households earning less than 120% of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. c. The estimated applicable sales price and rental rate of the units. d. Residential projects for households earning less than 80% of the Orange County Median Income may request a subsidy by one or more of the following: (1) Direct financial assistance. (2) Reduction in fees and/or exaction's. (3) Deviations from specific development standards of the Holly-Seacliff Specific Plan. 2 (k1038) C. Definitions The following definitions apply to terms used in this plan: "Affordable Housing" - A residential unit that is affordable to households earning less than 120% of the County Median Income. "City." - The City of Huntington Beach, California. "County" - The County of Orange, California. "Developer" - Where capitalized, means Seacliff Partners, a joint venture between U.W.C. Development corp. and Pacific Coast Homes, or their successors or assigns. "Development Agreement" - Development Agreement No. 90-1 for the Holly-Seacliff area. "Median Income" - The most current median income figure for Orange County as published by the United States Department of Housing and Urban Development. "Moderate Income Household" - A household with a total annual gross income of between 80 - 120% of the Median Income as defined above. "Plan" - Where capitalized, means the Holly-Seacliff Affordable Housing Plan. "Specific Plan" - The Holly-Seacliff Specific Plan as it may be amended from time to time. 3 (k103&) II. Plan In accordance with the Specific Plan requirements, this section identifies the number, location, type, size,phasing and estimated sales prices of the affordable units to be preserved or constructed by the Developer. A. Number of Affordable Units The approved total number of residential units in the Specific Plan is 3,895 units. The properties to be developed by the Developer within the Specific Plan are approved for 3,537 residential units. Developer's Specific Plan affordable housing requirement is 531 moderate income units (15%x 3,537 total units). If fewer than 3,537 units are actually built by Developer within the Specific Plan area, then the required number of affordable units required will be reduced proportionally. B. Location, Type and Size of Affordable Units The following table identifies a menu of proposed locations ,types and sizes of affordable housing units to be constructed within the Specific Plan area. The Table sets forth the maximum possible number of units within each planning area. The ultimate mix and number of units to be built will be at the discretion of the Developer. Each project providing affordable housing shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. Table I M axamun Proposed Num er:af Locahon = acreage a x shmated EWin' d A = ! T e Size r:. Sales rice _TJnits & (Plann>tn Umt) (E1p>rox 170 II-4 9.5 Flats 500-1050 SF $136,685 to Studio, 1&2 BR $182,900 150 II-5, -6 8 Flats 500-900 SF $136,685 to Studio, 1&2 BR $182,900 575 IV-1 16 Flats 500-900 SF $136,685 to IV-2 8 Studio, 1&2 BR $182,900 IV-4 53 Note: Sources: City of Huntington Beach,Affordable Housing Price/Income Guidelines updated February 1, 1992 (for sales prices). The estimated sales prices are as of February 1, 1992 and are subject to adjustment in proportion to increases or decreases in Orange County median income as published by HUD. 4 (k1038) • • C. Additional provisions 1. Other Units construction by Developer Any other affordable housing units other than those affordable units listed in Table I constructed by Developer aad said to p r&4mflies o g between 900 =oi Agorr rr within the Specific Plan area shall be counted towards the required total number of units. Developer shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. 2. Units Constructed by Others Any affordable housing units constructed by others within the Specific Plan under contract or agreement with Developer may be used to satisfy Developer's requirements. The affordable housing credit provisions of such contract or agreement shall be approved by the Director of Community Development prior to satisfaction of Developers requirement. Units which have received City financial subsidy or other incentives of equal financial value shall not be eligible. 3. Preservation of At-Risk Units Although it is not the present intent of the City to allow such credit,the Developer may apply to the City Council for credit for preserving at-risk low or moderate income housing units through buy downs, financing, refinancing, or other means. Such applications cannot be approved without a separate amendment to the Holly- Seacliff Specific Plan. Any credit received may be applied towards the Developer's affordable housing requirement only on the basis approved by the Council. 4. Rental Units If rental units are used to meet the affordable housing requirement, they shall be provided at the Median income level or below. 5 (k1038) • • D. Incentives and Standards Consistent with the concept of the adopted Housing Element and Affordable Housing Task Force Report, the city should implement incentives, flexible development standards and otherwise provide encouragement in order to facilitate the construction of affordable housing. The following shall apply to the affordable housing units required under the Specific Plan: 1. Other Incentives and Standards Any incentives, standards or programs adopted as part of a City-wide affordable housing program may apply to the Developer. E. Phasing The provisions of the affordable housing units shall be phased with the occupancy of the market rate units in accordance with the following phasing plan. e column ` Column B° ` � y llmUlatlVC s, � � �C11111UlatIVC �� Phase �'� �� � 1VIar txRat IJnits � � g `��Afforr3a e nits( . I 500 75 II 1000 150 III 1500 225 IV 2000 300 V 2750 375 VI 3250 total remainder l. Within four months of the issuance of the Certificate of Occupancy of the cumulative market rate unit in Column A, Developer must have submitted tentative tract map and conditional use permit applications for the cumulative affordable units in Column B. (for example, within 4 months of issuance of the Certificate of Occupancy, for the 500th market rate unit, Developer must apply for permits for a cumulative total of 75 affordable units.) 2. Developer must be under construction with, or have completed, the total cumulative affordable units in a phase prior to issuance of the Certificate of Occupancy of the last cumulative market rate unit in the next phase. (for example, Developer must be under construction, or have completed, 75 affordable units prior to issuance of the Certificate of Occupancy of the 1000th market rate unit.) 6 (k1038) 3. The City shall use its best efforts to process all tentative tract map and final tract map applications in a timely manner. If a final tract map containing designated affordable housing units is not approved within 18 months of submittal of the tentative tract map by Developer, the above construction obligation for those affordable units shall be tolled based on the processing delay. 4. During the last phase of affordable units (affordable unit number 376 and beyond), building permits will be issued on a one-for-one basis with the last phase of market rate units (market rate unit 3251 and beyond) until the Developer's total obligation of affordable units (15% of the total units built)has been met. 5. Developer may bond for the construction of the required affordable units in Column B not under construction or completed, at the rate of$40,000/unit(adjusted yearly based on CPI). 7 (M038) • • �, �q� �- �- � �- t ,. � .��, 0 •.. b. Me rship shall be mandatory for each buyer and any successive buyer. C. The open space res 'ctions shall be permanent. d. Provisions to prohibit parki upon other than approved and . developed parking spaces shall written into the covenants; conditions and restrictions for each p 'ect. e. If the development is constructed in increme or phases which require one or more final maps, reciprocal coven ts, conditions, or restrictions, reciprocal management and mainten "' greements shall be established which will cause a merging of incre ents as they are completed, and embody one homeowners' associa ' n with common areas for the total development. 12. Affordable Housing All developers of residential projects shall be.required to submit an affordable housing plan in conjunction with any subdivision in accordance with the City's adopted Housing Element. An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: a. Fifteen (15)percent of the total units proposed shall be for households earning less than 120%of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. C. The estimated applicable sales price and rental rate of the units. -d. Residential projects for households earning less than 80%of the + Orange County Median Income may request a subsidy by one or more of the following: 1. Direct financial assistance. 2. Reduction in fees and/or exactions. 3. Deviations from specific development standards of the Holly- Seacliff Specific Plan. Exception: An In-Lieu Fee may be applied on small projects. Parcels one (1) acre in size or less may pay a fee established by the City Council in lieu of providing on-site affordable housing units. III-8 (hssp97) ATTACHMENT 4 ; ��� � ,�Huitin ton Beacham�e4�artment�of�C umuni De elo- ment�- � � �� .�- TO: Planning Commission FROM: Howard Zelefsky, Planning Director BY: Mary Beth Broeren, Senior Plann re—_� DATE: July 28, 1998 SUBJECT: HOLLY SEACLIFF AFFORDABLE HOUSING PLAN AMENDMENT NO. 1 (CONTINUED FROM JUNE 9, 1998 MEETING) LOCATION: Holly Seacliff Specific Plan Area STATEMENT OF ISSUE: The amendment to the Affordable Housing Plan would allow rental units to meet affordable housing goals in addition to for-sale units. This request was continued from the June 9, 1998 Planning Commission meeting to allow for additional analysis. The applicant initially requested that the rental units be allowed at Moderate income levels, but has indicated acceptance of a restriction at the Median income level. Staff supports the applicant's request for affordable rental units because the allowance of affordable rental housing is consistent with the Holly Seacliff Specific Plan and the goals of the General Plan Housing Element. However, staff recommends the Planning Commission approve the allowance for rental units at an equal mix of Very Low and Low income levels because : ♦ It is consistent with staff recommendations for affordable housing in other areas of the City; ♦ The maximum affordable Low and Very Low rents allowed for privately-funded develoment are comparable with average market rents for the city; and ♦ The Holly Seacliff Specific Plan allows for"subsidies" if a developer builds a Low or Very Low income project. These include: 1) direct financial assistance, 2)reduction in fees and/or exactions, and 3) deviations from specific development standards. Should the Planning Commission not support the restriction of Low and Very Low income levels for rental units, staff does not recommend any change to the Affordable Housing Plan. RECOMMENDATION: Motion to: "Approve Holly Seacliff Affordable Housing Plan Amendment No. 1 and forward to the City Council for approval (Attachment No. 1)." ALTERNATIVE ACTION(S): The Planning Commission may take alternative actions such as: A. "Deny Holly Seacliff Affordable Housing Plan Amendment No. L" B. "Continue Holly Seacliff Affordable Housing Plan Amendment No. 1 and direct staff accordingly." I Q� W fI -I am JOR ;� 1�. ;;--►1"awn +'1�±r,. -ICE. 1 e na r no 111�uu"q l RiRs'w3F893R�91R3&�`� I m:uuuonu► _ _ IIW11111�1111111Hitt flllllllllalllllllllll 01111N 8�d8I8 + 1 • Illulllll YIIIIIIII!III IIIII► � Iz L'RHr ■■■,� JIIIIIIII:IRIIIIII tllltllllllll► ��' ;r v♦,K IIIIIIIIII IIIIIIIIIIII'IIIIIIIII P1III� INN till 11 nll llll 11 IIIIIIIIIIII Illllffllll 1111 ��n „ � IIII III�Illlllllillpllll �—, R� � r IIIIIIIIIIiII IIIIIIIIIIII - � r���nuu ulln,ucuao ut;Il�I�al,Imu�Rl =��I�s■�..�,� �• / /I�,■■.� 'III6fll dil;llll IIIIITD�lilim6��� 1 ®�■��� �•:. ■■d■■■■M� Irl. � Ilul Iiulll lu' 11 ••nl ■�uu �as� ,. Bliiiilil 0 J 1119W 11 llh III IJP■IIII�1II'111-!�1\ �� •■��-■` .,t �M_ F,.soon ■■■� / ■ II + tl dll.11l' IGhI. IIIII R' ;) VC 111J Flf10 lilllllll�•JIII011'■1'�111111 /1`at'tl 1&�'■■■ 1!7 C • �111 WII I JILIWWI�' I 1 (� I ■ �'!� ,IIIIIIIIIIII IIIIIIIIIIIL=_ 1111■I II 1- I IIIII I � �. r(111111gIull�!Iwl- l uuuu uuul/_ i ■I� ��� plllllll^11III1111�IIIIIIII'=:Illlllllllsl N111 IIIIIIIII, i,�Yuri. ' �.���1':'�■1 = �, ip�I��L^�III'•1■�II� {IJl�,un�l ullll:' ' j 4� �'-■■■■■■■■■� sIcM IIIIS,, '�mod■■Illy=��\. - ■■■■ ■�' o.Icn ■■,1■�L�■11'llllll'llllll-'■LZ� •' I®'III�"```1�� .� `\NONE■ ■ GENERAL INFORMATION: APPLICANT: Bill Holman, PLC Land Company, 23 Corporate Plaza, Ste. 250,Newport Beach, CA 92660 REQUEST: To amend the Affordable Housing Plan to allow rental units to meet affordable housing goals. PROJECT PROPOSAL: Affordable Housing Plan Amendment No.I represents a request to amend the Holly Seacliff Affordable Housing Plan (Attachment No. 1) as follows: • Page 1 - Eliminate the words"for sale" from the second paragraph. The purpose of the amendment request is to allow rental units to meet affordable housing goals in addition to the currently allowed moderate for-sale units. Since PLC initially submitted their request for this amendment, they have indicated that they would be agreeable to having the rental units at Median income levels in lieu of the Moderate income levels. ISSUES: General Plan Conformance: The request is consistent with the following goals, policies and objectives of the City's General Plan Housing Element. Policy 2.0: To ensure adequate provision of housing for all economic segments of the community, the City of Huntington Beach shall encourage the provision and continued availability of a range of housing types throughout the community,with variety in the number of rooms and level of amenities. Policy 3.4.2.5.1: To provide and maintain a quality living environment so that members of all economic, social, and ethnic groups may reside in Huntington Beach by providing a variety of housing types in all areas of the City. Zoning Compliance: : Not applicable. Environmental Status: The proposed project is exempt pursuant to Section 15061(b)(3)of the California Environmental Quality Act which states that a project shall be extempt if it does not have the potential for causing a significant effect on the environment. Moreover,the subject site is covered by Environmental Impact Report No. 89- 1 which was certified by the City Council on January 8, 1990. Section 2.5.1 of Development Agreement No. 90-1 for the Holly Seacliff area states: "City agrees that no subsequent or supplemental environmental impact report shall be required for any development approval unless the anticipated environmental impacts to any proposed project exceeds the level of impact indicated in Final Environmental Impact Report No. 89-U' Staff Report—7/28/98 2 (98SR50) Coastal Status: A small portion of the Holly Specific Plan Area is located within the Coastal Zone; however, the proposed project is exempt pursuant to Section 989.5.2 of the Huntington Beach Ordinance Code. Redevelopment Status: Not applicable. Design Review Board: Not applicable. Subdivision Committee:.Not applicable. Other Departments Concerns: There are no concerns from City Departments. ANALYSIS: The HSSP requires that 15 percent of the units built within the Specific Plan area be restricted to moderate income households earning no more than 120 percent of the County median income for a period of 30 years. The HSSP allows such units to be for-sale or rental. It requires that each developer submit an "affordable housing plan" for City approval (Attachment No. 2). In 1994, the City Council approved an Affordable Housing Plan(AHP) for Seacliff Partners properties which covered almost all of the Holly Seacliff residential area(448 of the total 565 acres in Holly Seacliff) (Attachment No. 1). These properties were acquired by PLC and MS Vickers II, LLC in May 1996. Notwithstanding the allowance of rental units in the HSSP,the AHP specifies that all of its affordable units be for-sale and be located within Holly Seacliff.. Based on current County Median income figures, a$300,000 three bedroom home sold to a four-person household earning no more than $78,960 would meet the affordable income and sales criteria of the AHP. The proposed amendment would make the AHP consistent with the general provisions of the HSSP which allows affordable rental units. Initially,the applicant proposed that the rental units be moderate income level, similar to the for-sale units. In response to staff s June 9`h recommendation that a minimum of half of the rental units be restricted to very low income households (50 percent of County median income) and that none of the rental units exceed the low-income category (80 percent of County median),the applicant modified their request to indicate acceptance of the rental units at median income levels. A comparison of the recommendation/requests is provided in the table below for a three bedroom unit/family of four. Staff Recommendation PLC's PLC's (Half of Each Modified Initial Income Category) Request Request Income Level Very Low Low Median Moderate (50 %of (80 %of (120 % of Median) Median) Median) Maximum Annual Income ($) 32,900 45,300 65,800 78,960 Maximum Monthly Rent($) Redevelopment-Assisted Development 775 939 1,565 1,762 Privately-Funded Development 916 1,277 1,875 2,259 Note: Annual Income and Monthly Rent based on a three bedroom unit and four person household after utilities allowance. See discussion of redevelopment-assisted development on the next page. Staff Report—7/28/98 3 (98SR50) The maximum monthly rent figures in the table are provided for two categories of development: projects assisted with redevelopment monies and privately funded (i.e. no public assistance) development. The Redevelopment category was included because it is possible that a developer could enter into an agreement with the City's Redevelopment Agency for an affordable housing project within the Holly Seacliff area. As such,the maximum allowable rents would be more restricted. However,there is no requirement that a developer to use redevelopment funds or any other public monies/assistance to develop an"affordable"project. For these "Privately-Funded"projects, the potential maximum affordable rents are significantly higher as shown in the bottom row of the table. Using the figures from the table,the applicant's modified request would allow a three bedroom unit to rent for approximately $1,500 to $1,800 per month and qualify as affordable. Alternatively, staffs recommendation would yield affordable three bedroom units at approximately $800 to $1,200 monthly rent levels. For comparison purposes, the average market rent for a three bedroom unit in Huntington Beach in 1996 was estimated at$1,197 by HUD. Adjusting for the modest inflation of the last two years yields a 1998 average market rent of approximately $1,250. Thus, only the Very Low Income rents and the Low Income Redevelopment rent would be below the average market rent. Staff recommends the mix of Very Low and Low income rental units because it furthers the goals of the City's Housing Element and is consistent with City requirements in other parts of the city. Indeed, for non-Holly Seacliff projects, staff typically recommends a mix of Very Low and Low income affordable housing units, and moderately priced units are not accepted as affordable. Staff does not believe that these income restrictions are overly burdensome because: ♦ The maximum affordable Low and Very Low rents allowed for privately-funded develoment are comparable with average market rents for the city; and ♦ The Holly Seacliff Specific Plan(Attachment No. 2) allows for"subsidies" if a developer builds a Low or Very Low income project. These include: 1) direct financial assistance, 2)reduction in fees and/or exactions, and 3) deviations from specific development standards. Should the Planning Commission not support the restriction of Low and Very Low income levels for rental units, staff does not recommend any change to the Affordable Housing Plan. ATTACHMENTS: 1. Holly Seacliff Affordable Housing Plan 2. Holly Seacliff Specific Plan Affordable Housing Section SH:MBB:kjl Staff Report—7/28/98 4 (98SR50) f 9� c, ty ADM,w. UIL Ic bAVk140 RE CI`Ivt1; CITY OF HUNTINGTO;ii PFACfi, CA 1W NOV -Q P b: 3q November 4, 1998 Honorable Shirley Dettloff, Mayor Huntington Beach City Council 2000 Main Street Huntington Beach, CA 92648 Subject: Amendment to 1994 Affordable Housing Plan for Seacliff Partners' Holly Seacliff Properties Mayor Dettloff and City Council Members: PLC is requesting City Council approval of an amendment to the Affordable Housing Plan (AHP) for Seacliff Partners' Properties, which was approved by the City Council in February, 1994, in conformance with the affordable housing requirements of the Holly Seacliff Specific Plan. (This AHP is applicable to properties within the Holly Seacliff Specific Plan acquired by PLC, MS Vickers II LLC and Shea Vickers Development in 1996). Simply stated, our request is to amend the AHP to allow rental or apartment units constructed within the Holly Seacliff Specific Plan area to count toward the Specific Plan's 15 percent moderate income housing requirement. Section III.C.12 of the Specific Plan allows both for sale and rental units to count toward the 15 percent requirement, however, the 1994 AHP was approved with language allowing only for sale units to count toward this requirement. The attached Table 1 presents a comparison of what is allowed under the adopted Specific Plan, the existing AHP, PLC's requested amendment, and staff s recommendation. Table 2 presents 1998 maximum income and rent figures for the various income levels and an estimate of current market rents in Huntington Beach. As indicated in Table 1, we are not asking to amend the AHP to be less restrictive than the adopted Specific Plan. The request is entirely consistent with the Specific Plan affordable housing requirement. Staff s recommendation, however, is significantly more restrictive than both the existing AHP and the Specific Plan. Staff s recommendation to restrict income levels on apartment projects to only the "low" and "very low" income levels would be economically infeasible for the private sector unless the City were to permit density increases or deviations PLC Land Company 23 Corporate Plaza,Suite 250 714. 721.9777 Telephone Newport Beach,California 92660 714, 729. 1214 Facsimile POIC from adopted development standards, or provide some form of financial subsidy to offset land and development costs, none of which PLC is requesting or advocates in the Holly Seacliff area. We believe there is a strong demand for apartments in the Holly Seacliff area and that new, well- designed rental housing would expand housing opportunities and help the City to meet its affordable housing objectives. PLC owns several smaller properties that are well-suited for apartment development. We are amenable to placing covenants on rental units restricting rents to the median income level, which would allow such units to be conventionally financed and constructed by the private sector without requests for City subsidies, density bonuses or deviations in development standards. We feel the staff-recommended income limitations, in the absence of subsidies, are too restrictive and self-defeating. In reviewing the action of the Planning Commission on July 28, 1998, you will note that no straw vote was taken on PLC's amendment request as submitted; only a motion to deny the amendment as modified by staff was made and approved. We are asking the City Council to approve Alternative Action #1, with language as provided in Attachment 2 to the staff report, or such other alternative that is mutually acceptable. Thank you for your consideration of our request. Very truly yours, William D. Holman Planning & Government Relations Attachments cc: Howard Zelefsky,Planning Director Mary Beth Broeren, Senior Planner Connie Brockway, City Clerk Ron Metzler, Shea Homes TABLE 1 HOLLY SEACLIFF AFFORDABLE HOUSING PLAN Requirement Holly Seacliff Seacliff Partners PLC Amendment Staff Recommendation Specific Plan Affordable Housing Plan Request April, 1992 February, 1994 October, 1997 Inclusionary Percentage 15 percent 15 percent 15 percent 15 percent Type of Unit • For Sale Units Very Low (< 50% MFI) Permitted * Permitted * Permitted * Permitted * Low (< 80% MFI) Permitted * Permitted * Permitted * Permitted * Median (<100% MFI) Permitted Permitted Permitted Permitted Moderate (< 120% MFI) Permitted Permitted Permitted Permitted Rental Units Very Low (< 50% MFI) Permitted * Not Permitted Permitted * Required - 50% of total Low (< 80% MFI) Permitted * Not Permitted Permitted * Required - 50% of total Median (<100% MFI) Permitted Not Permitted Permitted Not Permitted Moderate (< 120% MFI) Permitted Not Permitted Not Permitted ** Not Permitted Affordability Covenant 30 years 30 years 30 years 30 years * City Financial Subsidy, Reduction in Fees or Exactions, or Deviation from Development Standards may be requested ** PLC proposal as agreed to in June 5, 1998 letter TABLE 2 AFFORDABLE HOUSING 1998 INCOME AND HOUSING PAYMENT DATA Very Low Income Low Income Median Income Moderate Income HB Market Rates < 50% OCMFI <80%OCMFI or 100%NatIMFI < 80% OCMFI < 100% OCMFI < 120% OCMFI (Estimated) Household Unit Maximum Maximum Maximum I Maximum Maximum Maximum Maximum Maximum Maximum Maximum Typical $1.00- Size Size Income Rent Income` Rent Income" Rent Income Rent Income Rent Sq. Ft. $1.25 1 person Studio $ 23,050 $ 644 $ 31,700 $ 897 $ 36,840 $ 1,046 $46,050 $ 1,315 $ 55,250 $ 1,583 600 SF $600-• 750 2 persons 1 bedroom $ 26,300 $ 736 $ 36,250 $ 1,026 $ 42,120 $ 1,197 $ 52,650 $ 1,505 $ 63,150 $ 1,811 800 SF $800- 1,000 3 persons 2 bedrooms $ 29,600 $ 822 $ 40,750 $ 1,148 $ 47,360 $ 1,340 $ 59,200 $ 1,686 $ 71,050 $ 2,031 1,000 SF $1,000- 1,250 4 persons 3 bedrooms $ 32,900 $ 912 $ 45,300 $ 1,273 $ 52,640 $ 1,487 $ 65,800 $ 1,871 $ 78,950 $ 2,255 1,200 SF $1,200- 1,500 Income figures based on 1998 Orange County Median Family Income of$65,800 Income listed is lesser of 80% OCMFI or 100% National MFI ** Actual 80% OCMFI Rent formula=Annual Income/ 12 x 35% allocation for housing expenses, minus Utilities Allowance • (Utilities Allowance= $28/mo. for Studio, $31/mo. for 1 br, $41/mo. for 2 br, $48/mo. for 3 br) Source: City of Huntington Beach Housing & Community Development Staff 11/4/98 10/01/98 08:45 V71 1214 PLC LAND COMPANY 121 002/002 I October 1, 1998 Mr. Howard Zelefsky,Planning Director Planning Department 2000 Main Street Huntington Beach, CA 92648 Subject: Request for Continuance Holly Seacliff Affordable IIousing Plan Amendment Dear Howard: I would like to request that the above item be continued from the meeting of October 5, 1998 to November 16, 1998. Very truly yours, William D. Holman Planning &Government Relations cc: Mary Beth Broeren, Senior Planner Connie Brockway, City Clerk x mar" ;c c-� .9 P-- PLC land Company 23 Corporate Plaza,Suite 250 714 0.9777 Telephone Newport Beach,Cal ifomia 92560 714.729 1214 Facsimile CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Honorable Mayor and City Council Member FROM: Howard Zelefsky, Planning Director VIA: Ray Silver, City Administrator SUBJECT: ITEM F-2,HOLLY SEACLIFF AFFORDABLE HOUSING PALN AMENDMENT DATE: October 5, 1998 PLC has requested continuance of Item F-2 on tonight's City Council agenda. Staff concurs with the continuance and recommends that the item be continued to the November 16, 1998 City Council meeting. 0 x c�-s —Cc)7 CACO�t-.,- N D c 1 2EL.EsIC�� PIL AY)n Bje02keA) - f4*r)ninG Council/Agency Meeting Held: #0 y30.50 Deferred/Continued to: ?A ��o\%DLO onditionally Approved ❑ Denied CPv ty lerk's Signature Council Meeting Date: March 1, 1999 Department ID Number: CD,P-1.2- CITY OF HUNTINGTON BEACH QYJ REQUEST FOR ACTION CV ,- SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS " 77 C) SUBMITTED BY: RAY SILVER, City Administrators PREPARED BY: HOWARD ZELEFSKY, Planning Director SUBJECT: APPROVE HOLLY SEACLIFF AFFORDABLE HOUSING PLAN AMENDMENT NO. 1 [Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment Statement of Issue: Transmitted for your consideration is a request by PLC Land Company to amend the Holly Seacliff Affordable Housing Plan to allow rental units at the Median income level to meet affordable housing goals. The Affordable Housing Plan currently allows for Moderate income level (120 percent of County Median income) for-sale -units only. No change is proposed to the for-sale unit provisions. The Planning Commission denied the request and is recommending denial (Recommended Action - A) because the cost of rental units at Median income limits are comparable to market rents and would not be "affordable." Staff is recommending approval with modifications to limit the rents to Low and Very Low income levels (Recommended Action - B) because the allowance of affordable rental units is consistent with City goals and policies. Funding Source: Not applicable. Recommended Action: A. PLANNING COMMISSION RECOMMENDATION: - r Motion to: "Deny Holly Seacliff Affor able Housing Plan Ame�6)` ent No. 1.1' ,jh6lwll �}PpPo✓t-n v'=� (JZ1%en j �j,�OFA,40 1 Apppeov�n P��nninG C0 rn�n�ss� iQc�pm/'Y12�/J 19'770��5 . )eEc_e„P_ 77) REQUEST FOR ACTION MEETING DATE: March 1, 1999 DEPARTMENT ID NUMBER: CD99-12 " Planning Commission Action on July 28, 1998: THE MOTION MADE BY BIDDLE, SECONDED BY KERINS, TO DENY HOLLY SEACLIFF AFFORDABLE HOUSING PLAN AMENDMENT NO. 1 CARRIED BY THE FOLLOWING VOTE: AYES: CHAPMAN, BIDDLE, INGLEE, KERINS, TILLOTSON, SPEAKER NOES: NONE ABSENT: LIVENGOOD ABSTAIN: NONE MOTION PASSED B. STAFF RECOMMENDATION: Motion to: "Approve Holly Seacliff Affordable Housing Plan Amendment No. 1 with difications (Attachment No. -Ah4 �ej oast F5t a0l)ei/ f-ef� da �47 9 PPR_01/_D 7-O <Thi� basi` also dented Alternative Action(s): 7Z) 1,40cc>)PP-0 ZEI_�kV, The City Council may make the following alternative motion(s): 1. "(Applicant's Request) Approve Holly Seacliff Affordable Housing Plan Amendment No. 1 (ATTACHMENT NO 2)." 2. "Continue Holly Seacliff Affordable Housing Plan Amendment No. 1 and direct staff accordingly." Analysis: A. PROJECT PROPOSAL: Applicant: PLC Land Company, 23 Corporate Plaza, Ste. 250, Newport Beach, CA 92660 Location: Holly Seacliff Specific Plan area PLC's request is to amend the Holly Seacliff Affordable Housing Plan (Attachment No. 2) as follows: • Page 1 - Eliminate the words "for sale" and add the word median to the second paragraph. • Page 5 -.Eliminate the reference to moderate income households in section 1 and add reference to median income rental units. CD99-12 -2- 02/10/99 10:14 AM • REQUEST FOR ACTION • MEETING DATE: March 1, 1999 DEPARTMENT ID NUMBER:_ CD99-12 The purpose of the amendment request is to allow rental units to meet affordable housing goals in addition to the for-sale units currently required by the Affordable Housing Plan. PLC has requested that the rental units be available at Median income levels in lieu of the Moderate income levels allowed for the for-sale units. B. BACKGROUND The Holly Seacliff Specific Plan (HSSP) requires that 15 percent of the units built within the Specific Plan area be restricted to Moderate income households for a period of 30 years. The HSSP allows such units to be for-sale or rental. It requires that each developer submit an "affordable housing plan" for City approval (Attachment No. 3). In 1994, the City Council approved an Affordable Housing Plan (AHP) for Seacliff Partners properties which covered almost all of the Holly Seacliff residential area (448 of the total 565 acres in Holly Seacliff). These properties were acquired by PLC and MS Vickers II, LLC in May 1996. Notwithstanding the allowance of rental units in the HSSP, the AHP specifies that all of its affordable units be for-sale. C. PLANNING COMMISSION MEETING AND RECOMMENDATION: The Planning Commission considered this item on July 28, 1998. The Planning Commission expressed concern that rental units at Median income levels would not be more afforadable than market rate units. The Planning Commission voted unanimously to deny the applicant's request. D. STAFF ANALYSIS AND RECOMMENDATION: Staff concurs with the Planning Commission that the applicant's request would not result in "affordable" rental units. However, staff recommends that the City Council approve the use of rental units with the requirement that the units be restricted to the Low and Very Low income levels. Staffs recommendation is based on two factors: 1) the current HSSP and 2) rent data. Current HSSP The proposed amendment to allow rental units to meet affordable goals is consistent with the general provisions of the HSSP which allow for affordable rental housing (Attachment j No. 3). The HSSP also states that Low or Very Low income projects (for households earning less than 80 percent of the Median) may request "subsidies" which would improve the economic feasibility of a project. These subsidies include: 1) direct financial assistance, 2) reduction in fees and/or exactions, and 3) deviations from specific development standards. The use of these provisions would be evaluated on a project-by-project basis by City staff. However, the possibilty of one or more of these subsidies may reduce any CD99-12 -3- 02/10/99 10:14 AM L, • REQUEST FOR ACTION • MEETING DATE: March 1, 1999 DEPARTMENT ID NUMBER: CD99-12 perceived economic burden associated with staffs recommendation for Low and Very Low rental units. Rent Data A comparison of rents for a three bedroom.unit (family of four) is provided in the table below for staffs recommendation and the applicant's request. Maximum monthly rent figures are provided for two categories of development: projects assisted with public monies (e.g. redevelopment) and privately funded (i.e. no public assistance) development. The publicly assisted category is included because a developer could request an agreement with the City's Redevelopment Agency pursuant to the HSSP or seek financial assistance from another public source for an affordable housing project. If the City were to approve such an arrangement, the maximum allowable rents would be more restricted. There is no . requirement that a developer use redevelopment funds or any other public assistance to develop an "affordable" project. For these "Privately-Funded" projects, the potential maximum affordable rents are significantly higher. RENTAL COMPARISONS FOR THREE BEDROOM UNIT/FAMILY OF FOUR Staff Recommendation PLC's Average (Half of Each Request Market Rate Income Category) Income Level Very Low Low Median na (50% of (80% of Median) Median) Maximum Annual Income $32,900 145,300 165,800 Maximum Monthly Rent Privately-Funded Project $9161 $1,2771 $1,875 $1,145— 1,209 Publicly-Assisted Project 775 939 1,565 The applicant's request would allow a three bedroom unit to rent for approximately $1,500 to $1,900 per month and qualify as affordable. Alternatively, staffs recommendation would yield affordable three bedroom units at approximately $800 to $1,300 monthly rent levels. For comparison purposes, the average fair market rent for a three bedroom unit in Huntington Beach in 1998 was estimated at $1,193 by HUD. REALFACTS, a service which provides information for rental complexes-of 100 units or more, reports that of June 1998 average rents for three bedroom units were $1,145 and $1,209 depending on bathroom count. The data show that PLC's proposal would allow "affordable" rents that exceed current market averages. A Low income project without public assistance could also be rented at a level greater than average rents in the city. . Based on this data, staff believes that its CD99-12 -4- 02/10/99 10:14 AM • REQUEST FOR ACTION • MEETING DATE: March 1, 1999 DEPARTMENT I.D.NUMBER: CD99-12 recommendation for half of the units to be rented at Very Low income rents and half at Low income would provide a reasonable affordable housing alternative that does not represent an economic burden for a developer. Staff recommends the mix of Very Low and Low income rental units because it furthers the goals of the City's Housing Element, is consistent with City requirements in other parts of the city, and would provide greater flexibility in meeting the City's housing objectives. Should the City Council not support the restriction of Low and Very Low income levels for rental units, staff does not recommend any change to the Affordable Housing Plan. Staff believes that if a developer chooses to build an apartment project which will rent at market levels (i.e. Median levels), the City should not then credit that developer for meeting affordable housing goals. Environmental Status: The proposed project is exempt pursuant to Section 15061(b)(3) of.the California Environmental Quality Act which states that a project shall be extempt if it does not have the potential for causing a significant effect on the environment. Moreover, the subject site is covered by Environmental Impact Report No. 89-1 which was certified by the City Council on January 8, 1990. Section 2.5.1 of Development Agreement No. 90-1 for the Holly Seacliff area states: "City agrees that no subsequent or supplemental environmental impact report shall be required for any development approval unless the anticipated environmental impacts to any proposed project exceeds the level of impact indicated in Final Environmental Impact Report No. 89-1." Attachment(s): City Clerk's • - Number No. Description 1. Holly Seacliff Affordable Housing Plan (Staff Recommendation) 2. Holly Seacliff Affordable Housing Plan (Applicant's Request) 3. Holly Seacliff Specific Plan Affordable Housing Section 4.7 Planning Commission Report dated July 28, 1998 CD99-12 -5- 02/10/99 10:14 AM � � . � _ � �������\«�d�§����2 7 �+�`«` � _ ~� W�\ ��: ( � \ ` �� . . - - �����������®��_���/% ~ - �, }dam` ���� \ :n . . . � , ���a—>. . . . �. :��«».y . :� +z , . . . 9 w:, ���» —���s������y�§� �<�w.���A _ ������Sz � s City of Huntington Beach 2000 MAIN STREET CALIFORNIA 92648 ; s DEPARTMENT OF COMMUNITY DEVELOPMENT �-. Building 536-5241 Planning 536-5271 STAFFS RECOMMENDATION PROPOSED AMENDMENT Holly-Seacliff Specific Plan Affordable Housing Plan For Seacliff Partners Properties Approved by City Council - February 28, 1994 I. INTRODUCTION & BACKGROUND A. Purpose & Intent This Affordable Housing Plan has been prepared by Seacliff Partners in compliance with the affordable housing requirements of the Holly-Seacliff Specific Plan. The intent of this Affordable Housing Plan is to preserve and provides housing opportunities for very low, low and moderate income persons and households in furtherance of the goals,policies and programs of the Housing Element of the City of Huntington Beach General Plan, and consistent with other City-adopted plans and project approvals. B. Background The Holly-Seacliff planning area encompasses a total of 768 acres of land within the central part of the City of Huntington Beach. The following is a summary of pertinent City-adopted plans and project approvals affecting the development of housing within the Holly-Seacliff planning area: 1. Holly-Seacliff General Development Plan: (General Plan Amendment No. 89-1) Adopted January 1990. Adopted a master plan of land use, circulation, open space, public facilities and community theme for the 768-acre Holly-Seacliff area(including the Ellis-Goldenwest Specific Plan). The Holly-Seacliff Master Plan allows for the development of a maximum 4,410 residential units at densities ranging for 3 to 25 dwelling units per gross acre. Final Environmental Impact Report No. 89-1 was certified to contain mitigation measures for General Plan Amendment No. 89-1. 1 (k1038) 2. City of Huntington Beach 1989 Housing Element Update: Adopted July 1990. Identifies local housing needs, opportunities and constraints, and establishes goals, policies and programs for the attainment of decent housing for households of all socioeconomic,racial and ethnic groups,the provision of a variety of housing opportunities and types, and the development of a balanced community. The Housing Element includes a regional;assessment'of needs-by varying:income groups. 3. Holly-Seacliff Development Agreement 90-1: Adopted December, 1990. Vested Seacliff Partners'.right to develop 3,780 residential dwelling.units within the Holly- Seacliff area in accordance with existing City policies and regulations for a period of 15 years in exchange for accelerated park dedications and citywide public infrastructure improvements, neighborhood park improvements and.payment of special traffic impact and public facility fees. 4. Holly-Seacliff Specific Plan: Adopted April 1992. Adopted zoning and comprehensive development standards for a total of 3,845 residential units within the Holly-Seacliff area.. (The total.number of residential units was subsequently..amended to 3,895 by the adoption of Code Amendment No. 91-12 in.May 1992.) The Holly Seacliff Specific Plan contains the following affordable-housing requirement: '.'All developers of residential.projects shall be required to submit an affordable housing plan in conjunction with any,subdivision in accordance with the City's adopted Housing Element. An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: a. Fifteen(15)percent of the total units proposed shall be for households earning less than 120% of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. c. The estimated applicable sales price and rental rate of the units. d. Residential projects for households earning less than 80% of the Orange County Median Income may request a subsidy by one or more of the following: (1) Direct financial assistance. (2) Reduction in fees and/or exaction's. (3) Deviations from specific development standards of the Holly-Seacliff Specific Plan. 2 (k1038) C. Definitions The following definitions apply to terms used in this plan: "Affordable Housing" -A residential unit.that is affordable to households earning less than 120% of the County Median.Income. "City" - The City of Huntington Beach, California. "County" - The County of Orange, California. "Developer" - Where.capitalized, means Seacliff Partners, a joint venture between U.W.C. Development corp.-and Pacific Coast Homes, or their successors or assigns. "Development Agreement" - Development Agreement No. 90-1 for the Holly-Seacliff area. "Low Income Household" -A household with a.total annual gross income of between 50 - 80%.of the Median,Income as defined below. "Median.Income" - The most current-median�income.figure for Orange County as published by the United States Department of Housing.and Urban Development. "Moderate Income Household" -A household with a total annual gross income of between 80 - 120% of the Median Income as defined above. "Plan" - Where capitalized, means the Holly-Seacliff Affordable Housing Plan. "Specific Plan" - The Holly-Seacliff Specific Plan as it may be amended from time to time. "Very Low Income Household" - A household with a total annual gross income of less than 50% of the Median Income as defined above. 3 (k103a) II. Plan In accordance with the Specific Plan requirements,this section identifies the number, location, type, size,phasing and estimated sales prices of the affordable units to be preserved or constructed by the Developer. A. Number of Affordable Units The approved total number of residential units in the Specific Plan is 3,895 units. The properties to be developed by the Developer within the,Specific Plan-are approved for 3,537 residential units. Developer's Specific Plan affordable housing requirement is 531 moderate income units (15%x 3,537 total units). If fewer than 3,537 units are actually built by Developer within the Specific Plan area,then the required number of affordable units required will be reduced proportionally. B. Location, Type and Size of Affordable Units The following table identifies a menu of proposed locations ,types and sizes of affordable housing units to be constructed within the Specific Plan area. The Table sets forth the maximum possible number of units within each planning area. The ultimate mix and number of units to be built will be at the discretion of the Developer. Each project providing affordable housing shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. Table I q ax><mum Propose MwmAcreageEstuna um.)R.)� $, .Size SalesyPr>ce* 170 II-4 9.5 Flats 500-1050 SF $136,685 to Studio, 1&2 BR $182,900 150 II-5, -6 8 Flats 500-900 SF $136,685 to Studio, 1&2 BR $182,900 575 IV-1 16 Flats 500-900 SF . $136,685 to IV-2 8 Studio, 1&2 BR $182,900 IV-4 53 Note: Sources: City of Huntington Beach,Affordable Housing Price/Income Guidelines updated February 1, 1992 (for sales prices). The estimated sales prices are as of February 1, 1992 and are subject to adjustment in proportion to increases or decreases in Orange County median income as published by HUD. 4 (k1038) C. Additional provisions 1. Other Units construction by Developer Any other affordable housing units other than those affordable units listed in Table I constructed by Developer ° 1'fnoi ,.�nrr rr within the Specific Plan area shall be counted towards the required total number of units. Developer shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. 2. Units Constructed by Others Any affordable housing units constructed by others within the Specific Plan under contract or agreement with Developer may be used to satisfy Developer's requirements. The affordable housing credit provisions of such contract or.agreement shall be approved by the Director of Community Development prior to satisfaction of Developers requirement. Units which have received City.financial subsidy or other incentives of equal financial value shall not be eligible. 3. Preservation of At-Risk Units Although it is not the present intent of the City to allow such credit, the Developer may apply to the City Council for credit for preserving at-risk low or moderate income housing units through buy downs, financing, refinancing, or other means. Such applications cannot be approved without a separate amendment to the Holly- Seacliff Specific Plan. Any credit received may be applied towards the Developer's affordable housing requirement only on the basis approved by the Council. 4. Rental Units If rental units are used to meet the affordable housing requirement, the following shall be required: a. A minimum of 50 percent of the units shall be rented at the very low income level, and I b. The remaining 50 percent of the units shall be rented at levels that do not exceed low income. 5 (k1038) D. Incentives and Standards Consistent with the concept of the adopted Housing Element and Affordable Housing Task Force Report, the city should implement incentives, flexible development standards and otherwise provide encouragement.in order to facilitate the construction of affordable housing. .The following shall apply to.the.affordable-housing units required under-the Specific Plan: 1. Other Incentives and Standards Any incentives, standards or programs adopted as part of a City-wide affordable housing program may apply to the Developer. E. Phasing The provisions of the affordable housing units shall be phased with the occupancy of the market rate units in accordance.with the following:phasing plan. COIumII;�� I 500 75 II 1000 150 III 1500 225 IV 2000 300 V 2750 375 VI 3250 total remainder 1. Within four months of the issuance of the Certificate of Occupancy of the cumulative market rate unit in Column A, Developer must have submitted tentative tract map and conditional use permit applications for the cumulative affordable units in Column B. (for example, within 4 months of issuance of the Certificate of Occupancy, for the 500th market rate unit,Developer must.apply for permits for a cumulative total of 75 affordable units.) 2. Developer must be under construction with, or have completed,the total cumulative affordable units in a phase prior to issuance of the Certificate of Occupancy of the last cumulative market rate unit in the next phase. (for example, Developer must be under construction, or have completed, 75 affordable units prior to issuance of the Certificate of Occupancy of the 1000th market rate unit.) 6 (M038) 3. The City shall use its best efforts to process all tentative tract map and final tract map applications in a timely manner. If a final tract map containing designated affordable housing units is not approved within 18 months of submittal of the tentative tract map by Developer,the above construction obligation for those affordable units shall be tolled based on the processing delay. 4. During the last phase of affordable units (affordable unit number 376 and beyond), building permits will be issued on a one-for-one basis with the last phase of market rate units.(market rate unit 3251 and beyond) until.the.Developer's total:obligation of affordable units (15% of the total units built)has been met. 5. Developer may bond for the construction of the required affordable units in Column B not under construction or completed, at the rate of$40,000/unit(adjusted yearly based on CPI). 7 (M038) M-EN . . � . City Huntington of Hunti ton Beach �+�r stF Ty ^'�°r.�yd'�::1 2000 MAIN STREET CALIFORNIA 92648 g = Y DEPARTMENT OF COMMUNITY DEVELOPMENT Building 536-5241 Planning 536-5271 APPLICANT'S REQUEST PROPOSED AMENDMENT Holly-Seacliff Specific Plan Affordable Housing Plan For Seacliff Partners Properties Approved by City Council -February 28, 1994 I. INTRODUCTION& BACKGROUND A. Purpose & Intent This Affordable:Housing:Plan has:been prepared by Seacliff Partners in.compliance with the affordable housing requirements of the Holly-Seacliff Specific.Plan. The intent of this Affordable Housing Plan is to preserve and provides housing opportunities for median and moderate income persons and households in furtherance of the goals,policies and programs of the Housing Element of the City of Huntington Beach General Plan, and consistent with other City-adopted plans and project approvals. B. Background The Holly-Seacliff planning area encompasses a total of 768 acres of land within the central part of the City of Huntington Beach. The following is a summary of pertinent City-adopted plans and project approvals affecting the development of housing within the Holly-Seacliff planning area: 1. Holly-Seacliff General Development Plan: (General Plan Amendment No. 89-1) Adopted January 1990. Adopted a master plan of land use, circulation, open space, public facilities and community theme for the 768-acre Holly-Seacliff area(including the Ellis-Goldenwest Specific Plan). The Holly-Seacliff Master Plan allows for the development of a maximum 4,410 residential units at densities ranging for 3 to 25 dwelling units per gross acre. Final Environmental Impact Report No. 89-1 was certified to contain mitigation measures for General Plan Amendment No. 89-1. I (W038) 2. City of Huntington Beach 1989 Housing Element Update: Adopted July 1990. Identifies local housing needs, opportunities and constraints, and establishes goals, policies and programs for the attainment of decent housing for households of all socioeconomic,racial and ethnic groups,the provision of a variety of housing opportunities and types, and the development of a balanced.,community.. The.Housing Element includes a regional assessment of needs by varying income groups. 3... ,.Holly-Seacliff Development Agreement 90-1: Adopted December, 1990. Vested Seacliff Partners'right to develop 3,780 residential dwelling units within the Holly- .Seacliff area in accordance with existing City policies and regulations for a period of 15 years in exchange for accelerated park dedications and citywide public infrastructure improvements,neighborhood park improvements and payment of special traffic impact and public facility fees. .4. Holly-Seacliff Specific Plan: Adopted April 1992. Adopted zoning and comprehensive development standards for a total of 3,845 residential units within the Holly-Seacliff area.: (The total.number.of residential units was.subsequently amended to 3,895 by the adoption of Code Amendment No. 9142 in May 11992.) .The Holly Seacliff Specific Plan contains the following affordable housing requirement: "All developers of residential projects shall be required to submit.an affordable housing plan in conjunction with any subdivision in accordance with the City's adopted Housing Element. An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: a. Fifteen(15)percent of the total units proposed shall be for households earning less than 120%of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. c. The estimated applicable sales price and rental rate of the units. d. Residential projects for households earning less than 80% of the Orange County Median Income may request a subsidy by one or more of the following: (1) Direct financial assistance. (2) Reduction in fees and/or exaction's. (3) Deviations from specific development standards of the Holly-Seacliff Specific Plan. 2 (k1038) C. Definitions The following definitions apply to terms used in this plan: "Affordable Housing".--A residential unit that is affordable._to.households earning less than 120% of the County Median-Income. "City" -The City of Huntington Beach, California. "County" - The County of Orange, California. "Developer" - Where capitalized, means Seacliff Partners,a joint venture between U.W.C. Development corp. and Pacific Coast Homes, or their successors or-assigns. "Development Agreement" -.Development Agreement No. 90-1 for the Holly-Seacliff area. "Median Income" -The most current median income•figure for Orange County as published by the United States-Department of Housing and Urban Development. "Moderate Income Household".-A household with.a total-annual gross income of between 80 - 120% of the Median Income as defined above. "Plan" - Where capitalized,means the Holly-Seacliff Affordable Housing Plan. "Specific Plan" -The Holly-Seacliff Specific Plan as it may be amended from time to time. 3 (k1038) II. Plan In accordance with the Specific Plan requirements, this section identifies the number, location, type, size, phasing and estimated saes prices of the affordable.units to be preserved or constructed by the Developer. A. Number of Affordable Units The approved total number of residential units in the Specific Plan is 3,895 units. The properties to be developed by the Developer within the Specific Plan are approved for 3,537 residential units. Developer's Specific Plan affordable housing requirement is 531 moderate income units (15%x 3,537 total units). If fewer than 3,537 units are actually built by Developer within the Specific Plan area, then the required number of affordable units required will be reduced proportionally. B. Location,Type and Size of Affordable Units The following table.identifies a menu of proposed locations ,types.and sizes of.affordable housing units to be constructed within the Specific Plan area. The Table,sets forth the maximum possible number of units within each planning area. •The ultimate mix and number of units to be built will be at the.discretion of the Developer. Each project providing affordable housing shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. Table I tlViax><inun ��= .f Pro o"sed x$ -: � .: � � ---�� ���`�' `2� P � Number of a< Location�v creag4 siimated�r ` 3Estmatecl 5 n>fts (Flanm_ng °nit) Appro )a �:ypet F _S>tz Sales Price .k s .. - .� 170 I1-4 9.5 Flats 500-1050 SF $136,685 to Studio, 1&2 BR $182,900 150 II-5, -6 8. Flats 500-900 SF $136,685 to Studio, 1&2 BR $182,900 575 IV-1 16 Flats 500-900 SF $136,685 to IV-2 8 Studio, 1&2 BR $182,900 IV-4 53 Note: Sources: City of Huntington Beach,Affordable Housing Price/Income Guidelines updated February 1, 1992 (for sales prices). The estimated sales prices are as of February 1, 1992 and are subject to adjustment in proportion to increases or decreases in Orange County median income as published by HUD. 4 (k1038) • • C. Additional provisions 1. Other Units construction by Developer Any other affordable housing units other than those affordable units listed in Table I constructed-by Developer�aa seld to per-seas of:A--dies; ea=iag betw. een 80,0 1200,4999 rT Within the Specific Plan area shall be counted towards the required total number of units. Developer shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. 2. Units Constructed by Others Any affordable housing units constructed by others within the Specific Plan under contract or agreement with Developer may be used to satisfy Developer's requirements:-The affordable housing credit provisions of.such contractor agreement shall be approved by the Director of Community Development prior to satisfaction of Developers requirement. Units which have received City,financial subsidy or other incentives of equal financial value shall not be eligible. 3. Preservation of At-Risk Units Although it is not the present intent of the City to allow-such credit,the Developer may apply to the City Council for credit for preserving at-risk low or moderate income housing units through buy downs, financing, refinancing, or other means. Such applications cannot be approved without a separate amendment to the Holly- Seacliff Specific Plan. Any credit received may be applied towards the Developer's affordable housing requirement only on the basis approved by the Council. 4. Rental Units If rental units are used to meet the affordable housing requirement, they shall be provided at the Median income level or below. 5 (k1038) D. Incentives and Standards Consistent with the concept of the adopted Housing Element and Affordable Housing Task Force Report,the city should implement incentives, flexible development standards and otherwise provide encouragement in order to facilitate the construction of affordable housing. The following shall apply to the affordable-housing units required under the Specific Plan: 1. Other Incentives and Standards Any incentives, standards or-programs adopted as part of a City-wide affordable housing program may apply to the Developer. E. Phasing The provisions of the affordable housing units shall be phased with the occupancy of the market rate units in accordance with the following phasing plan. �Cotvmn has . ' gMar eR >lln (1 ordable nits..(' _ I 500 75 II 1000 150 III 1500 225 IV 2000 300 V 2750 375 VI 3250 total remainder 1. Within four months of the issuance of the Certificate of Occupancy of the cumulative market rate unit in Column A, Developer must have submitted tentative tract map and conditional use permit applications for the cumulative affordable units in Column B. (for example, within 4 months of issuance of the Certificate of Occupancy, for the 500th market rate unit, Developer must apply for permits for a cumulative total of 75 affordable units.) 2. Developer must be under construction with, or have completed, the total cumulative affordable units in a phase prior to issuance of the Certificate of Occupancy of the last cumulative market rate unit in the next phase. (for example, Developer must be under construction, or have completed, 75 affordable units prior to issuance of the Certificate of Occupancy of the 1000th market rate unit.) 6 (M038) 3. The City shall use its best efforts to process all tentative tract map and final tract map applications in a timely manner. If a final tract map containing designated affordable housing units is not approved within 18 months of submittal of the tentative tract map by Developer,the above construction obligation for those affordable units shall be tolled based on the processing delay. 4. During the last phase of affordable units.(affordable unit number 3.76.and-beyond), building permits will be issued-on a one-for-one basis with the last.phase of market rate-units (market,rate unit 3251-and beyond)until the Developer's.total obligation of affordable units (15%.of the total units built)has been met. 5. Developer may bond for the construction of the required affordable units.in Column B not under construction or completed; at the rate of$40,000lunit(adjusted yearly based on CPI). 7 (M038) • • I �. � '�` �;� � _� n � - � r � Y =_ � � b. Me rship shall be mandatory for each buyer and any successive buyer. C. The open space res 'ctions shall be permanent. d. Provisions to prohibit parki upon other than approved and . developed parking spaces shall written into the covenants; conditions and restrictions for each p 'ect: e. If the development is constructed in increme or phases which require one or more final maps, reciprocal coven ts, conditions, or restrictions, reciprocal management and maintenanc greements shall be established which will cause a merging of incre ents as they are completed, and embody one.homeowners'.associa ' n with common areas-for the total development. 12. Affordable Housing All developers of residential projects shall be required to.submit an affordable housing plan in conjunction with anyy subdivision in accordance with the City's adopted Housing Element. An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: a. Fifteen(15)percent of the total units proposed shall be for households earning less than 120%of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. C. The estimated applicable sales price and rental rate of the units, d. Residential projects for households earning less than 80%of the Orange County Median Income may request a subsidy by one or more of the following: 1. Direct financial assistance. 2. Reduction in fees and/or exactions. 3. Deviations from specific development standards of the Holly- Seacliff Specific Plan. Exception: An In-Lieu Fee may be applied on small projects. Parcels one(1) acre in size or less may pay a fee established by the City Council in lieu of providing on-site affordable housing units. III-8 (hssp97) i • � ��- �.a .:.a - =- - g` m ., g, $each�Department�of Comrnunty�De�elopment = � � ���_ p�. aq t 3.a 7,» ; £.T sa ex'a,� .� '€.,y'P'aexi '� ..a ,.�-`� } -�:» `C �t '�a,X' aa• �" �` ,� ..r-� TO: Planning Commission FROM: Howard Zelefsky, Planning Director BY: Mary Beth Broeren, Senior Plann F " DATE: July 28, 1998 SUBJECT: HOLLY SEACLIFF AFFORDABLE HOUSING PLAN AMENDMENT NO. 1 (CONTINUED FROM JUNE 9, 1998 MEETING) LOCATION: Holly Seacliff Specific Plan Area STATEMENT OF ISSUE: The amendment to the Affordable Housing Plan would allow rental units to meet affordable housing goals in addition to for-sale units. This request was continued from the June 9, 1998 Planning Commission meeting to allow for additional analysis. The applicant initially requested that the rental units be allowed at Moderate income levels, but has indicated acceptance of a restriction at the.Median income level. Staff supports the applicant's request for affordable rental units because the allowance of affordable rental housing is consistent with the Holly Seacliff Specific Plan and the goals of the General Plan Housing Element. However, staff recommends the Planning Commission approve the allowance for rental units at an equal mix of Very Low and Low income levels because ♦ It is consistent with staff recommendations for affordable housing in other areas of the City; ♦ The maximum affordable Low and Very Low rents allowed for privately-funded develoment are comparable with average market rents for the city; and ♦ The Holly Seacliff Specific Plan allows for"subsidies"if a developer builds a Low or Very Low income project. These include: 1) direct financial assistance, 2)reduction in fees and/or exactions, and 3) deviations from specific development standards. Should the Planning Commission not support the restriction of Low and Very Low income levels for rental units, staff does not recommend any change to the Affordable Housing Plan. RECOMMENDATION: Motion to: "Approve Holly Seacliff Affordable Housing Plan Amendment No. 1 and forward to the City Council for approval (Attachment No. 1)." ALTERNATIVE ACTION(S): The Planning Commission may take alternative actions such as: A. "Deny Holly Seacliff Affordable Housing Plan Amendment No. L" B. "Continue Holly Seacliff Affordable Housing Plan Amendment No. 1 and direct staff accordingly." a � ZI NONE Oi i% 65 ■... ' �iCA'IIQIIII�[�I ImI: • 111,11,IIIII(I� 7 .. , . � T�I�_ ==i �� I�1��LI,,11 .I. I I,IITiI ■ loss .� E r,'m lvi 1L�lu911iii � �-_--- � �\ Ir] I■ :�� Inns IIIIIIII Iilll:el,rvi:ucfl,.lrlo_ ,!:rza��■■�1 ©Im 11{-,-1- G�i���1��IIf��l��lall; ;t -;IIIIIIII1,11 IIl�illllll �'llillll.11(_ 211i rr `ONE /�®�■�� ��/ / IEr�II.. \\III ���� „ ,� IIU 111E 4111l,,lllu.,�:I,.rtl �/ y` �1'lik.1 II111� (I� II'I'!''lllll7 �- \��i!'�i�• � ,�����Ilt��llllll� i^Iii ii:i Ir.3' 41 MOEN NN � I�IIl�16 .�� lill�l® � , +91111'I, - j, �■■■�� / l4iIIIII II�LIII Illllll Iflltll1111 11 inuuml a nunu � ....,I � I.. III III II II IIIIIIIIIIII IIIIIIIIIIiz 11 ONE R �t '�R8 �I IppII I{IIIIIIIIB Illllfll I • v���A�ry�' nii(ul IIIIIIIIIIII�llllllfllll �■ g1IX�OpCq8�f07 �� \IIIIIIIIIIII"Ill !Ipg $��1^g 4S �gp,�g¢pgp� �lummn� MMUNE Ill il;l Milk /-IF Fill,NIP, _5 .i9 .. a • ..C'� FIJI• ) 1 4 ll� 4 i ..al GENERAL INFORMATION: APPLICANT:Bill Holman,PLC Land Company,23 Corporate Plaza, Ste. 250,Newport Beach, CA 92660 REOUEST: To amend the Affordable Housing Plan to allow.rental.units.to meet affordable.housing goals. PROJECT PROPOSAL: Affordable Housing Plan Amendment No.I represents a request.to.amend the Holly Seacliff Affordable Housing Plan(Attachment No. 1) as follows: • .Page 1 -Eliminate.the words"for sale" from the second paragraph. The purpose of the amendment request is to allow rental units to meet affordable housing goals in addition to the currently allowed moderate for-sale units. Since PLC initially submitted their request for this amendment,they have indicated that they would be agreeable to having the rental units at Median income levels in lieu of the Moderate income levels. ISSUES: General Plan Conformance: The request is consistent with the following goals,policies and objectives of the City's General Plan Housing Element. Policy 2.0: To ensure adequate provision of housing for all economic segments of the community, the City of Huntington Beach shall encourage the provision and continued availability of a range of housing types throughout the community,with variety in the number of rooms and level of amenities. Policy 3.4.2.5.1: To provide and maintain a quality living environment so that members of all economic, social, and ethnic groups may reside in Huntington Beach by providing a variety of housing types in all areas of the City. Zoning Compliance: : Not applicable. Environmental Status: The proposed project is exempt pursuant to Section 15061(b)(3)of the California Environmental Quality Act which states that a project shall be extempt if it does not have the potential for causing a significant effect on the environment. Moreover,the subject site is covered by Environmental Impact Report No. 89- 1 which was certified by the City Council on January 8, 1990. Section 2.5.1 of Development Agreement No. 90-1 for the Holly Seacliffarea states: "City agrees that no subsequent or supplemental environmental impact report shall be required for any development approval unless the anticipated environmental impacts to any proposed project exceeds the level of impact indicated in Final Environmental Impact Report No. 89-L" Staff Report—7/28/98 2 (98SR50) Coastal Status: A small portion of the Holly Specific Plan Area is located within the Coastal Zone; however,the proposed project is exempt pursuant to Section 989.5.2 of the Huntington Beach Ordinance Code. Redevelopment Status: Not applicable. Design Review Board: Not applicable. Subdivision Committee: Not applicable. Other Departments Concerns:.There are-no concerns from City Departments. ANALYSIS: The HSSP requires that 15 percent of the units built within the Specific Plan area be restricted to moderate income households earning no more than 120 percent of the County median income for a period of 30 years. The HSSP allows such units to be for-sale or rental. It requires.that each developer submit an "affordable housing plan" for City approval (Attachment No. 2). In 1994,the City Council-approved an-Affordable Housing Plan(AHP) for Seacliff.Partners properties which covered almost all of the Holly.Seacliff residential area(448 of the total 565 acres in Holly Seacliff) (Attachment No. 1). These properties were acquired by PLC and MS Vickers II, LLC in May 1996. Notwithstanding the allowance of rental units in the HSSP,the AHP specifies that all of its affordable units be for-sale and be located.within Holly.Seacliff. Based on current County Median income figures, a.$300,000 three bedroom home sold to a four-person household earning no more than $78,960 would meet the affordable income and sales criteria of the AHP. The proposed amendment would make the AHP consistent with the general provisions of the HSSP which allows affordable rental units. Initially, the applicant proposed that the rental units be moderate income level, similar to the for-sale units. In response to staffs June 9'recommendation that a minimum of half of the rental units be restricted to very low income households (50 percent of County median income) and that none of the rental units exceed the low-income category (80 percent of County median),the applicant modified their request to indicate acceptance of the rental units at median income levels. A comparison of the recommendation/requests is provided in the table below for a three bedroom unit/family of four. Staff Recommendation PLC's PLC's (Half of Each Modified Initial Income Category) Request Request Income Level Very Low Low Median Moderate (50 %of (80 %of (120 %of Median) Median) Median) Maximum Annual Income ($) 32,900. 45,300 65,800 78,960 Maximum Monthly Rent ($) Redevelopment-Assisted Development 775 939 1,565 1,762 Privately-Funded Development 916 1 1,2771 1,875 1 2,259 Note: Annual Income and Monthly Rent based on a three bedroom unit and four person household after utilities allowance. See discussion of redevelopment-assisted development on the next page. Staff Report—7/28/98 3 (98SR50) The maximum monthly rent figures in the table are provided for two categories of development: projects assisted with redevelopment monies and privately funded(i.e. no public assistance) development. The Redevelopment category was included because it is possible that a developer could enter into an agreement with the City's Redevelopment Agency for an affordable housing project within the Holly Seacliff area_ As such,the maximum allowable rents would be more restricted. However,there is no requirement that a developer to use redevelopment funds or any other public monies/assistance.to.develop an"affordable"project: For these"Privately=Funded"prcjects;the:potentiaLmaximum affordable rents are significantly higher as shown,in the bottom-row-.of the table. Using the figures from the table;the applicant's modified request would-allow-a.three bedroom,.unit to rent for approximately$1,500 to $1,800 permonthand qualify.as-affordable. -Altematively,:staffs recommendation would yield affordable three bedroom units at approximately:$800 to;$1,200.monthly rent levels. For comparison_purposes;the average market rent.for athree.bedroom-unit in-Huntington Beach in 1996 was estimated at$1;197 by HUD.-.Adjusting.for the modest inflation-of the last two years yields a 1998 average market rent of approximately $1,250. Thus, only the Very Low_Income rents and the Low Income Redevelopment rent would be below the average market rent. Staff recommends the mix of Very Low and Low income_rental,units`because 1t.furthers the goals of the City's Housing-Element and isvconsistent with City-requirements in other-parts.of the,city. .Indeed, for non-Holly Seacliff projects;-staff-typically recommends a.mix of Very=Low.and:Low income-affordable housing units,and moderately-priced units are not accepted as.affordable.. Staff does not believe that these income restrictions are overly burdensome because: ♦ -The maximum affordable Low and`Very Low rents allowed-for privately-funded develoment are comparable with average market rents for the city; and ♦ The Holly Seacliff Specific Plan(Attachment No. 2) allows for"subsidies"if a developer builds a Low or Very Low income project. These include: 1) direct financial assistance, 2)reduction in fees and/or exactions, and 3) deviations from specific development standards. Should the Planning Commission not support the restriction of Low and Very Low income levels for rental units, staff does not recommend any change to the Affordable Housing Plan. ATTACHl`1lENTS: 1. Holly Seacliff Affordable Housing Plan 2. Holly Seacliff Specific Plan Affordable Housing Section SH:MBB:kjl Staff Report—7/28/98 4 (98SR50) . RCA ROUTING SH.EET INITIATING DEPARTMENT: Planning SUBJECT: Holly Seacliff Affordable Housing Plan Amendment No. 1 COUNCIL MEETING DATE: March 1 , 1999 ... RCA AT STATUS TACHMENTS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if.applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds (If applicable) Not Applicable Staff Report (If applicable) Attached Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable .... EXPLANATION FOR MISSING ATTACHMENTS REVIEWED., RETURNED FOR DED. Administrative Staff ( ) ( ) Assistant City Administrator (Initial) ( ) ( ) City Administrator (Initial) City Clerk ( ) EXPLANATION FOR RETURN OF ITEM (Below • . For Only) RCA Author: HZ:MBB:kl ^03/01/1999 09:05 PLC LAND COMPANY 917143741557 NO.266 D02 POIC March 1, 1999 s � G Dr. Peter Green, Mayor Huntington Beach City Council p 2000 Main Street .0 Huntington Beach, CA 92648 cl Subject: Amendment to 1.994 Affordable Housnlg Plan for Seacliff Partners' Trolly Seacliff Properties Mayor. Green and City Council Members: PLC is requesting City Council approval of an amendment to the Affordable Housing Plan (AHP) for Seacliff Partners' Properties, which was approved by the City Council in February, 1994, in conformance with the affordable housing requirements of the Holly Seacliff Specific Plan. (This AHP is applicable to properties within the Holly Seacliff Specific Plan acquired by PLC, MS Vickers II LLC and Shea Vickers Development in 1996). Simply stated, our request is to eariend the AHP to allow rental or apartment units constructed within the Holly Seacliff Specific P)an area to count toward The Specific Plan's 15 percent affordable housing requirement. Section I.II.C.12 of the Specific Plan allows both for sale and rental units to count toward. the 1.5 percent requirement, however, the 1994 AHP was approved. with language allowing only for sale units to count toward, this requirement. The attached Table 1 presents a comparison of what is allowed under the adopted. Specific Plan, the existing AHP, PLC's requested amendment, and staff s recommendation. Table 2 presents 1998 maximum income and rent figures for the various income levels and an. estimate of current market rents in Huntington Beach. As indicated in Table I. we are not asking to arn.en.d the AFP to be less restrictive than the adopted Specific Plan. The request is entirely consistent with the Specific Plan affordable housing requirement. Staffs recommendation, however, is significantly more restrictive than both the existing AHP and the Specific Plan. Staffs recommendation to restrict income levels on apartment projects to only the "low" and "very low" income levels would be economically infeasible for the private sector unless the City were to pen-nit density increases or deviations from adopted development standards, or provide some form of financial subsidy to offset land and development costs, none of which PLC is requesting or advocates in the Holly Seacliff area. PLC Land Company 23 Wporale No.508 250 949. 721.9777 ToJ9phnne Newpori Beach,California 92660 949.729. 1214 racslrrVe �03/01/1999 09:05 PLC LAND COMPANY 4 917143741557 NO.266 903 ism We believe there is a strong demand.for apartments in.the Holly Seacliff area and that new, well- designed rental housing would, expand housing opportunities and help the City to meet its affordable housing objectives. PLC owns several smaller properties that are well suited for apartment development, We are aixiena.ble to placing covenants on rental units restricting rents to the median income level, which world allow such units to be conventionally financed. and constructed, by the private sector without requests for City subsidies, density bonuses or deviations in development standards. We feel the staff-recomunended income limitations, in the absence of subsidies, are too restrictive and self-defeating. In reviewing the action of the Planning Commission on July 28, 1998, you will note that no straw vote was taken on PLC's amendment request as submitted; only a motion to deny the amendment as modified by staff was made and approved. We are asking the City Council to approve Alternative Action #1, with language as provided in Attachment 2 to the staff report, or such other alternative that.is mutually acceptable. Thank you for your consideration of our request. Very truly yours, William D. Holman Planning& Government Relations Attachments cc: Howard Zelefsky, Planning Director Mary Beth Broeren, Senior Planner Connie Brockway, City Clerk Ron Metzler, Shea Homes m W m N \ lD TABLE 1 HOLLY SEACLIFF AFFORDABLE HOUSING PLAN CD Requirement Holly Seacla Seacliff Partners PLC Amendment Staff Recommendation Ln Specific Plan Affordable Housing Plan Request April, 1992 February, 1994 October, 1997 r Inclusior�ary Percentage 15 percent 15 percent 15 percent .15 percent •D z ry Type of Unit g For Sate Units D Very Low (< 50% MFI Permitted Permitted * Permitted * Permitted ` * { Low(< 80% MFI) Permitted * Permitted * Permitted * Permitted * Median (<100% IWFI) Permitted Permitted . Permitted Permitted Moderate (< 12D% MFI) Permitted Permitted Permitted Permitted W A Rental Units Ul Very Low (< 50% MFI) Permitted * Not Permitted - Low(< 80%MR) Permitted * Not Permitted. Median (<100% MFI) Permitted Not Permitted Moderate(< 120% IAIIFI) Permitted Not Permitted. Not Permitted Not Permitted ifordability Covenant 30 years 30 ears 30 ears 3D ears • y v y '* City Financial Subsidy, Reduction in Fees or Exactions, or Deviation from Development Standards may be requested PLC proposal as agreed to in June 5, 1998 letter z 0 ry m m a m m w J (9 N TABLE 2 `D AFFORDABLE HOUSING 1998 INCOME AND HOUSING PAYMENT DATA � m cn Very Low Income Low Income Median income Moderate Income HB Market Rates <50%OCMFI c80%,CFI csr 10n%N"R < 80%OCMFI < 100%0CMF1 < 120%OCMFI (Estimated) T Household Unit Maximum Maximum Maximum Maximum Maximum Maximum Maximum Maximum Maximum Maximum Typical $1.00- � Size Size Income Rent income* Rent Inoarne** Rent Income Rent Income Rent S . Ft. $125 • z d 1 person Studio $23,050 $ 644 $ 31,700 $ 897 $ 36,840 $ 1,046 $46,050 $ 1,315 $55,250 $ 1,533 600 SF $600- r, 750 03 2 persons 1 bedroom $ 26,300 $ 736 $ 36,250 $ 1,026 $42,120 $ 1,197 $ 52,650 $ 1,505 $63,150 . $ 1,811 800 SF $800- z 1,000 { 3 persons 2 bedrooms $ 29,600 $ 922 $ 40,750 $ 1,148 $47,360 $ 1,340 $59.200 '$ 1,686 $ 71,050 $ 2,031 1,000 SF $1,000- y 1,250 4 persons 3 bedrooms. $ 32,900 $ 912 $ 45,300 $ 1,273 $ 52,640 $ 1,487 $65,800 $ 1,871 $ 78,950 $ 2,255 1,200 SF $1,200- A 1,500 A Income figures based on 1998 Orange County Median Family Income of$65,800 a * income listed is lesser of 80%OCMFI or 100%fdatiDnal MFI Actual 80%OCiU R Rent formula=Annual Income 112 x 35%allocation for housing expenses,minus Util-tlies Allowance (lJtilities Mlowance=$28Imo.for Studio,$31Imo_for 1 br.$41Imo.for 2 br,$481mo. for 3 br) Souroe: City of Huntington Beach Housing&Community Development Staff z 0 ry m m WiAS m 01 0 CITY CLERK{ CITY OF HUNTINGTON BEACH. CA 1359 MAP - I P ?: 22 Holly Seacliff Affordable Housing Plan Amendment No. 1 REQUEST - PLC requests to modify the Affordable Housing Plan (AHP) to allow rental units to meet affordable housing requirements. - PLC requests the rental units be allowed at Median income levels. - Existing allowance for for-sale units would remain the same. a BACKGROUND AHP applies to most (79%) of the Holly Seacliff residential area • AHP requires all affordable units be for-sale and allows them at Moderate income levels (120% of Median). • 1998 income levels for family of 4 are: Very Low: $32,900 Median: $65,800 Low: $45,300 Moderate: $78,960 ANALYSIS • Median income level rents are not more affordable than market rents. Very Income Low Low Median Market Max. Rent($) 916 19277 19875 1,177 Note: Data for a 3-bdrm. unit/family of 4; based on market rents as of June 1998 2 RECOMMENDATION • Planning Commission recommends denial of PLC's request because Median rental units not more affordable than market level • Staff recommends City Council approve use of rental units to meet affordable goals, if: • 50% of units for Very Low and 50% for Low income households • HSSP allows use of rental units 3 "M�= } �� 4 CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINCTON BEACH JAL 18159 �. 5 IMW TO: Linda Niles, Senior Planner FROM: Connie Brockway, City Clerk SUBJECT:_ Holly-Seacliff Affordable Housing Plan DATE: July 17, 1995 The Holly-Seacliff Affordable Housing Plan was approved, as amended, by Council on -" February 28, 1994. Please send a copy of the plan, as amended, to the office of the City Clerk to complete the records. ^z s ;J m Uri J4W g:\95cbmem\95-092 STI4. icy^ J! ' City of Huntington Beach .. 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF COMMUNITY DEVELOPMENT Building 536-5241 Planning 536-5271 Holiv-Seacliff Specific Plan Affordable Housing Plan For Seacliff Partners Properties Approved by City Council - February 28, 1994 I. INTRODUCTION & BACKGROUND A. Purpose & Intent This Affordable Housing Plan has been prepared by Seacliff Partners in compliance with the affordable housing requirements of the Holly-Seacliff Specific Plan. The intent of this Affordable Housing Plan is-to preserve and provide "for sale" housing opportunities for moderate income persons and households in furtherance of the goals, policies and programs of the Housing Element of the City of Huntington Beach.General Plan, and consistent with other City-adopted plans and project approvals. B. Background The Holly-Seacliff planning area encompasses a total of 768 acres of land within the central part of the City of Huntington Beach. The following is a summary of pertinent City-adopted plans and project approvals affecting the development of housing within the Holly-Seacliff planning area: 1. Holly-Seacliff General Development Plan: (General Plan Amendment No. 89-1) Adopted January 1990. Adopted a master plan of land use, circulation, open space, public facilities and community theme for the 768-acre Holly-Seacliff area (including the Ellis-Goldenwest Specific Plan). The Holly-Seacliff Master Plan allows for the development of a maximum 4,410 residential units at densities ranging for 3 to 25 .dwelling units per gross acre. Final Environmental Impact Report No. 89-1 was certified to contain mitigation measures for General Plan Amendment No. 89-1. 1 (003s) 2. City of Huntington Beach 1989 Housing Element Update: Adopted July 1990. Identifies local housing needs, opportunities and constraints, and establishes goals, policies and programs for the attainment of decent housing for households of all socioeconomic, racial and ethnic groups, the provision of a variety of housing opportunities and types, and the development of a balanced community. The Housing Element includes a regional assessment of needs by varying income groups. 3. Holly-Seacliff Development Agreement 90-1: Adopted December, 1990. Vested Seacliff Partners' right to develop 3,780 residential dNvelkng units within the Holly- Seacliff area in accordance with existing.City policies ana.regulations for a period of 15 years in exchange for accelerated park dedications and citywide public infrastructure improvements, neighborhood park improvements and payment of special traffic impact and public facility fees. 4. Holly-Seacliff Specific Plan: Adopted April 1992. Adopted zoning and comprehensive development standards for a total of 3,845 residential units within the Holly-Seacliff area. (The total number of residential units was subsequently amended to 3,895,by the adoption of Code Amendment No. 91-12 in May 1992.)- The Holly Seacliff Specific Plan contains the following affordable housing requirement. "All developers of residential projects shall be required to submit an affordable housing plan in conjunction with any subdivision in accordance with the City's adopted Housing Element. An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: a. Fifteen (15) percent of the total units proposed shall be for households earning less than 120% of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. v .. c. The estimated applicable sales price and rental rate of the.units. d. Residential projects for households earning less than 80% of the Orange County Median Lcome may request a subsidy by one or more of the following:. (1) Direct financial assistance. (2) Reduction in fees and/or exaction's. (3) Deviations from specific development standards of the Holly-Seacliff Specific Plan. 2 (x)osa) C. Definitions The following definitions apply to terms used in this plan: "Affordable Housing" - A residential unit that is affordable to households earning less than 120% of the County Median Income. "City" - The City of Huntington Beach, California. "County" - The County of Orange, California. - "Developer" - Where capitalized, means Seacliff Partners, a;oint venture between U.W.C. Development corp. and Pacific Coast Homes, or their successors or assigns. "Development Agreement" - Development Agreement No. 90-1 for the Holly-Seacliff area. "'Median Income" - The most current median income figure for Orange County as. published by the United States Department of Housing and Urban Development. "Moderate Income Household" - A household with a total annual gross income of between 80 - 120% of the Median Income as defined above. v "Plan" - Where capitalized, means the Holly-Seacliff Affordable Housing Plan. ".Specific Plan" -The Holly-Seacliff Specific Plan as it may be amended from time to time. H. Plan In accordance with the Specific Plan requirements, this section identifies the number, `location, type, size, phasing and estimated sales prices of the affordable units to be preserved or constructed by the Developer. A. Number of Affordable Units The approved total number of residential units in the Specific Plan is 3,895 units. The properties to be developed by the Developer within the Specific Plan are approved for. 3;537-residential units. Developer's Specific Plan affordable housing requirement is 531 moderate income units (15%x 3,537 total units). If fewer than 3,537 units are actually .built by Developer within the Specific Plan area, then the required number of affordable units required will be reduced proportionally. 3 NO3R) B. Location, Type and Size of Affordable Units The following table identifies a menu of proposed locations ,types and sizes of affordable housing units to be constructed within the Specific Plan area. The Table sets forth the maximum possible number of units within each planning area. The ultimate mix and number of units to be built will be at the discretion of the Developer. Each project providing affordable housing shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. Table I ri# t 1 Pr��os3ed I 1 1t rt,mat� 3 s....�r.. "`7Y2'tcE • Y� :.Z371173 YL 3'a •�': 170 II-4 9.5 Flats 500-1050 SF ( S136,685 to ` Studio, 1&2 BR { S182,900 150 II-5, -6 8 Flats 500-900 SF S136,685 to Studio, 1&2 BR S 182,900 575 IV-1 16 Flats 500-900 SF SI36,685 to IV-2 8 Studio, 1&2 BR l S182,900 IV-4 5 Note: Sources: City.of Huntington Beach, Affordable Housing Price/Income Guidelines updated February 1, 1992 (for sales prices). The estimated sales prices are as of February 1, 1992 and are subject to adjustment in proportion to increases or decreases in Orange County median income as published by HUD. C. Additional provisions 1. _Other Units construction by Developer Any other affordable housing units other than those affordable units listed in Table I constructed by Developer and sold to persons or families earning between 80% - I20% of OCMI within the Specific Plan area shall be counted towards the required total number of units. Developer shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. 4 (k1038) 2. Units Constructed by Others Any affordable housing units constructed by others within the Specific Plan under contract or agreement with Developer may be used to satisfy Developer's requirements. The affordable housing credit provisions of such contract or agreement shall be approved by the Director of Community Development prior to satisfaction.of Developers requirement. Units which have received City financial subsidy or other incentives of equal financial value shall not be eligible. 3. Preservation of At-Risk Units Although it is not the present intent of the City to allow such credit, the Developer may apply to the City Council for credit for preserving at-risk low or moderate income housing units through buy downs, financing, refinancing, or other means. Such applications cannot be approved without a separate amendment to the Holly- Seacliff Specific Plan. Any credit received may be applied towards the Developer's affordable housing requirement only on the basis approved by the Council. D. Incentives and Standards Consistent with the concept of the adopted Housing Element and Affordable Housing Task Force Report, the city should implement incentives, flexible development standards and otherwise provide encouragement in order to facilitate the construction of affordable_ housing. The following shall apply to the affordable housing units required under the Specific Plan: 1. Other Incentives and.Standards Any incentives, standards or programs adopted as part of'a City--,aide affordable housing program may apply to the Developer. E. Phasing The provisions of the affordable housing units shall be phased with the occupancy of the market rate units in accordance with the following phasing plan. . - .<A':..,.,.b�3:i9 Sti"w'•f'•:.' ...�.•::;: ;{ •':iCRi''�:s<:'; ,, ,,.:..> •,'.5$$�.;::%ii::`..t:;.::::. ...;}....:-:•.y.:..:->.' .3° �•, •:�•.,.. ...�,.. ::>..r:::•::..,;..:a::::5-=< %•f�wr:t:c:9i`.}vi}.::•:;::�: .�:fr:•.-:::;r::::..,;:•..:,ui.:-:::• `. � � � �•�1-q;y;,•.:r,,�,:a;.:Cr,.4.;•:.+nyn•:}Qr.• <�`:•• y ._�yKN;y.y,}..,.,:i�;'Y:''r::.,.::;::a:::.:.:-� ?o':'-::$+:'::�i::<`r>:;�e�:ii::y:,.,:rr.:.::;;..t:;,y,:: . ...b� ,- '';y,•;t;�i'$:. .`^iF}fi„i;';u,;.•�t.'• ",;�� •::sYR`ti.+•.f};::�':tir%K: ;. :;a•,•Yaa::"r•' ::tea. :: :h.v.<.:...•-:..:::y:tn-: .KG,d .;}�::•.:i ^^'+,c•'i,;w<>:is;�^::;':�;,.-:-•::_::::.�:.-:.: :��:;x::....{......•�,{. s.s. ..�.. .�.:.. ::Y..::.o:•:^.G.: :a`.:s:: '::`,pw;f,. ;>'•w•. >2.' .ate:.:::+.:,,-...::,:.)::., '.:'iiy:'• :�,G,+,:::aoc•,+.r. ��. .blt: •`•'r'`�.j-.:. ..,:;�':• `"t�... ..r.. Y.%':a3k..::.�..:. :y�:y ,.K.�:.t.:.::-.•::. �'::ti�5` . s-r ::;:,i..•icy.-t`t�'�'.-:•` :;<;-.x..�::��:;. '.3.,:.� ..• ... : ...Ya:�.l�"a.��..t..�... nits;:1�::;-�::>;-:i:}:::;•>:V,<�:<�:;:;A�f'f�rs�. b... .L:�}is�-�:;:.>v.<.:A;..�. 1 500 75 H 1000 150 III 1500 225 IV 2000 300 V 2750 375 VI 3250 total remainder 5 (U038) w 1. Within four months of the issuance of the Certificate of Occupancy of the cumulative market rate unit in Column A., Developer must have submitted tentative tract map and conditional use permit applications for the cumulative affordable units in Column B. (for example, within 4 months of issuance of.the Certificate of Occupancy, for.the 500th market rate unit, Developer must apply for permits for a cumulative total of 75 affordable units.) 2. Developer must be under construction with, or have completed, the total cumulative affordable units in a phase prior to issuance of the Certificate of Occupancy ofthe last cumulative market rate unit in the next phase. (for example, Developer must be under construction; or have completed, 75 affordable units prior to issuance of the Certificate of Occupancy of the 1000th market rate unit.) 3. The City shall use its best efforts to process all tentative tract map and final tract map applications in a timely manner. if a final tract map containing designated affordable housing units is not approved within 18 months of submittal of the tentative tract map by Developer, the above construction obligation for those affordable units shall be tolled based on the processing delay. 4. During the last phase of affordable units(affordable unit number 376 and.beyond), building permits«ill be issued on a one-for-one basis with the last phase of market rate units (market rate unit 3251 and beyond) until the Developer's total obligation of affordable units (15% of the total units built) has been met. v S. Developer may bond for the construction of the required affordable units in Column B riot under construction or completed, at the rate of S40,000/unit (adjusted yearly based on CPI). 6 (k)038) REQUEST FOR CITY COUNCIL A TION Date: ]anuary 18, 1994 Submitted to: Honorable Mayor and City Council Members AI'P1Z®VED PY CITY COfJ� IL Submitted by: Michael T. Uberuaga, City Administrator 1 a ' it 19 9V Prepared by: Howard Zelefsky, Planning Direct . CITY L 1{ Subject: HOLLY-SEACLIFF AFFORDABLE HOUSING PLAN a"h,Al 7a (CONTINUED FROM THE AUGUST 2, 1993 CITY COUNCIL '0 MEETING) en 3 Consistent with Council Policy? [X] Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE: Transmitted for City Council consideration is the Holly-Seacliff Affordable Housing Plan. The Holly-Seacliff Specific Plan requires all developers of residential projects to submit an affordable housing plan in conjunction with any subdivision. RECOMMENDATION: Motion to: "Approve Seacliff Partners Affordable Housing Plan as amended by the Planning Commission and staff." ANALYSIS: Manning Commission action on May 180 1993: ON A MOTION BY RICHARDSON, SECOND BY BOURGUIGNON, THE PLANNING COMMISSION RECOMMENDED APPROVAL OF THE HOLLY-SEACLIFF AFFORDABLE HOUSING PLAN AS AMENDED BY THE COMMISSION, BY THE FOLLOWING VOTE: AYES: Cook, Bourguignon, Biddle, Richardson, Inglee NOES Dettloff, Gorman \ ABSENT: None ABSTAIN: None MOTION PASSED f 0 . In April 1992, the city adopted the Holly-Seacliff Specific Plan which allows up to 3,895 dwelling units. As part of the Specific Plan requirements developers of residential property had the following obligation with respect to affordable housing: "All developers of residential projects shall be required to submit an affordable housing plan in conjunction with any subdivision in accordance with the City's adopted Housing Element. An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: a. Fifteen (15) percent of the total units proposed shall be for households earning less than 120% of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. c. The estimated applicable sales price and rental rate of the units. d. Residential projects for households earning less than 80% of the Orange County median may request a subsidy by one or more of the following: (1 )Direct financial assistance. (2)Reduction in fees and/or exaction's. (3)Deviations for specific development standards of the holly-Seacliff Specific Plan. Exce_ tion: An In-Lieu Fee may be applied on small projects. Parcels one (1 ) acre in size or less may pay a fee established by the City Council in lieu of providing on-site affordable housing units." On March 8, 1993, Seacliff Partners submitted an Affordable Housing Plan in an effort to comply with the Specific Plan requirement. The Planning Commission amended the affordable housing plan by adding language that would clarify the document's intent. On August 2, 1993, the City Council continued action on the Holly-Seacliff Affordable Housing Agreement at the request of the applicant in order to allow for further discussion between the City and applicant. The staff, applicant, and City Council representatives met to discuss issues of concern with the proposed affordable housing plan. Four issues were identified that needed further refinement. These include: 1 . Second units (granny flats) 2. Phasing 3. The appendix 4. Average level of affordability As a result of these discussions the applicant has revised the language of the Affordable Housing Plan in an effort to address the concerns raised. RCA- 1/18/94 2 (k1027) The topical summary of their responses as indicated in their transmittal of September 10, 1993, is as follows: ISSUE RESPONSE 1. Appendix: a. in-lieu fee a. delete section b. off-site units b. delete section c. preservation credits c. revised and incorporate into main text 2. Second "Granny" Units Delete section 3. Restrictions on other units Add specific restrictive built by developer language 4. 100% average affordability No change (see attached legal opinions) language 5. Phasing (connection of market Revised rate and affordable units; control of last affordable units) With respect to issue four, Average Affordability, Seacliff Partners indicates that their attorney has advised them that an additional land use control may not be imposed by the City. (see attached letter from Cox, Castle, and Nicholson.) The City Attorney's Office has reviewed this letter and agrees with this conclusion (see Attachment No. 2). After reviewing the most recent draft of the Holly-Seacliff Affordable Housing Plan, staff recommends that the City Council have the following changes incorporated into the Plan for clarity and consistency with the Planning Commission Action: Page 1 : No change. Page 2: Background Add: Tentative Tract Maps 14007 and 14009 - approved September, 1991. Subdivision of 31 acres within the Ellis-Goldenwest Specific Plan into 141 - 8,000 square foot minimum, single family lots. As a condition of approval, Seacliff Partners was required to submit an affordable housing plan to provide 20 percent of the total residential units for moderate income households, either within the tract or at an off-site location within the City. Through a subsequent agreement, the Huntington Beach City School District has agreed to acquire a site within Tract 14009 for a new elementary school, reducing the total number of units to 109. This Affordble Housing Plan addresses providing the 20 percent requirement (22 units) for these tracts. RCA- 1/18/94 3 (k1027) Page 2: Continued Add: Ellis-Goldenwest Specific Plan - adopted June, 1988. Established zoning and development standards and requirements for "Estate Residential" uses (less than or equal to 4 units per acre) within a 160-acre area within the north-central portion of the Holly-Seacliff planning area. The Ellis- Goldenwest Specific Plan permits a minimum residential for size of 8,000 square feet and a maximum density of 3 dwelling units per acre. Page 3: No change. Page 4: No change. Page 5: No change. Page 6: C2 - Units constructed by others Add: Units which have received City financial subsidy or other incentives of equal financial value shall not be eligible. Page 6: D - Incentives and Standards Delete: D 1-3 D4 - change shall to "may" FUNDING SOURCE: Not applicable ALTERNATIVE ACTION: The City Council may modify the Holly-Seacliff Affordable Housing Agreement as deemed appropriate. ATTACHMENTS: 1. Holly-Seacliff Affordable Housing Agreement 2. Letter from Cox, Castle and Nicholson 3. City Attorney's Legal Opinions MTU:HZ:kjl RCA- 1/18/94 4 (k1027) CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Michael T. Uberuaga, City Administrator FROM: Howard Zelefsky, Planning Director DATE: February 1, 1994 SUBJECT: HOLLY-SEACLIFF AFFORDABLE HOUSING PLAN (RCA F-4) I am in receipt of a letter from Seacliff Partners to Mayor Moulton-Patterson regarding the subject matter. The second paragraph of the letter states "We are in agreement with the materials before you except for the recent recommended staff changes to the document." All changes to the document have been made by the applicant in response to the concerns raised by the City Council Committee. Any other modifications to the plan were voted on by the Planning Commission at their May 18, 1993, meeting and confirmed by the Chairman. HZ:kjl XC: City Council Members Ray Silver, Deputy City Administrator Melanie Fallon, Director Community Development (k1050) ' I I FBCITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINCTON BEACH j'j4-,.18:. 1'9595 TO: Linda Niles, Senior Planner FROM: Connie Brockway, City Clerk �fi SUBJECT: Holly-Seacliff Affordable Housing.Plan DATE: July 17, 1995 The.Holly-Seacliff Affordable Housing Plan was approved, as amended, by Council on February 28, 1994. Please send a copy of the plan, as amended, to the office of the City Clerk to complete the records. C �r. y � � g:\95cbmem\95-092 1 _ U G� • 0 . City of Huntington Beach 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF COMMUNITY DEVELOPMENT Building 536-5241 Planning 536-5271 Holly-Seacliff Specific Plan Affordable Housing Plan For Seacliff Partners-Properties Approved by City Council -February 28, 1994 I. INTRODUCTION&BACKGROUND A. Purpose & Intent This Affordable Housing Plan has been prepared by Seacliff Partners in compliance with the affordable housing requirements of the Holly-Seacliff Specific Plan. The intent of this Affordable Housing Plan is to preserve and provide"for sale" housing opportunities for moderate income persons and households in furtherance of the goals; policies and programs of the Housing.Element of the City of Huntington Beach General Plan, and consistent with other City-adopted plans and project approvals. B. Background The Holly-Seacliff planning area encompasses a total of 768 acres of land within the central part of the City of Huntington Beach. The following is a summary of pertinent City-adopted plans and project approvals affecting the development of housing within the Holly-Seacliff planning area: 1. Hollv-Seacliff General Development Plan: (General Plan Amendment No. 89-1) Adopted January 1990. Adopted a master plan of land use, circulation, open space, public facilities and community theme for the 768-acre Holly-Seacliff area (including the Ellis-Goldenwest Specific Plan). The Holly-Seacliff Master Plan allows for the development of a maximum 4,410 residential units at densities ranging for 3 to 25 dwelling units per gross acre. Final Environmental Impact Report No. 89-1 was certified to contain mitigation measures for General Plan Amendment No. 89-1. I (k)03s) 2. City of Huntington Beach-]989 Housing Element Update: Adopted July 1990. Identifies local housing needs, opportunities and constraints, and establishes goals, policies and programs for the attainment of decent housing for households of all socioeconomic, racial and ethnic groups, the provision of a variety of housing opportunities and t%pes, and the development of a balanced community. The Housing Element includes a regional assessment of needs by varying income groups. 3. Holly-Seacliff Development Agreement 90-1: Adopted December, 1990. Vested Seacliff Partners' right to develop 3,780 residential d%velling units within the Holly- Seacliff area in accordance with existing City policies ana regulations for a period of 15 years in exchange for accelerated park dedications and citywide public infrastructure improvements; neighborhood park.improvements and payment of special traffic impact and public facility fees. 4. Holly-Seacliff Specific Plan: Adopted April 1992. Adopted zoning and comprehensive development standards for a-total of 3,845 residential units within the Holly-Seacliff area. (The total number of residential units was subsequently amended to 3,895 by the adoption of Code Amendment No. 91-12 in-May 1992.) The Holly Seacliff Specific Plan contains the following affordable housing requirement: "All developers of residential projects shall be required to submit an affordable housing plan in conjunction with any subdivision in accordance with the City's adopted v Housing Element. An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: a. Fifteen (15) percent of the total units proposed shall be for households earning less than-120% of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. c. The estimated applicable sales price and rental rate of the units. d. Residential projects for households earning less than 80% of the Orange County Median Income may request a subsidy by one or more of the following: (1) Direct financial assistance. (2) Reduction in fees and/or exaction's. (3) Deviations from specific development standards of the Holly-Seacliff Specific Plan. 2 (►aosa) C. Definitions The following definitions apply to terms used in this plan: "Affordable Housing" - A residential unit that is affordable to households earning less than 120% of the County Median Income. "City" - The City of Huntington Beach, California. "County" - The County of Orange, California. - "Developer" - Where capitalized, means Seacliff Partners, a joint venture between U.W.C. Development core. and Pacific Coast Homes, or their successors or assigns. "Development Agreement" - Development Agreement No. 90-1 for the Holly-Seacliff area. "Median Income" The most current median income figure for Orange County as- published by the United States Department of Housing and Urban Development. "Moderate Income Household" - A household-with a total annual-gross income of between 80 - 120% of the Median Income as defined above. "Plan" - Where capitalized, means the Holly-Seacliff Affordable Housing Plan. "Specific Plan" - The Holly-Seacliff Specific Plan as it may be amended'from time to -time. II. Plan In accordance with the Specific Plan requirements, this section identifies the number, location, type, size, phasing and estimated sales prices of the affordable units to be preserved or constructed by the Developer. A. Number of Affordable Units The approved total number of residential units in the Specific Plan is 3,895 units. The properties to be developed by the Developer within the Specific Plan are approved for 3,537 residential units. Developer's Specific Plan affordable housing requirement is 531 moderate income units (15% x 3,537 total units). If fewer than 3,537 units are actually .built by Developer within the Specific Plan area, then the required number of affordable units required will be reduced proportionally. 3 (003R) B. Location, Type and Size of Affordable Units The following table identifies a menu of proposed locations ,types and sizes of affordable housing units to be constructed within the Specific Plan area. The Table sets forth the maximum possible number of units within each planning area. The ultimate mix and number of units to be built will be at the discretion of the Developer. Each project providing affordable housing shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. - Table I � os .::.,.. � ;: f,�.}.•: t..Kati. n...:: . zt-ea e::_»::;::,::.;::.}: .....:..... ,... :: tc�t��t . >s� al<..:sl:�:�€_ 170 II-4 9.5 I Flats 500-1-050 SF I S136,685 to J Studio, 1&2 BR ` S182,900 150 II-5, -6 8- Flats 500-900 SF S-I36,695,to Studio-, 1&2 BR S182,900 575 IV-1 16 Flats 500-900 SF S136,685 to IV-2 8 Studio, 1&2 BR S182,900 IV-4 53 Note: Sources: Cit; of Huntington Beach, Affordable Housing Price/Income Guidelines updated February 1, 1992 (for sales prices). The estimated sales prices are as of February 1, 1992 and are subject to adjustment in proportion to increases or decreases in Orange County median income as published by HUD. C. Additional provisions 1. Other Units construction by Developer Any other affordable housing units other than those affordable units listed in Table I constructed by Developer and sold to persons or families earning between 80% - 120% of OCMI within the Specific Plan area shall be counted towards the required total number of units. Developer shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. 4 (k)o3s) 2. Units Constructed by Others Any affordable housing units constructed by others within the Specific Plan under contract or agreement with Developer may be used to satisfy Developer's requirements. The affordable housing credit provisions of such contract or agreement shall be approved by the Director of Community Development prior to satisfaction of Developers requirement. Units which have received City financial subsidy or other incentives of equal financial value shall not be eligible. 3. Preservation of At-Risk Units - Although it is not the present intent of the City to allow such credit, the Developer may apply to the City Council for credit for preserving at-risk low or moderate income housing units through buy downs, financing, refinancing, or other means. Such applications cannot be approved without a-separate amendment to the Holly- Seacliff Specific Plan. Any credit received may be applied towards-the Developer's affordable housing requirement only on the basis approved by the Council. D. Incentives and Standards. Consistent with the concept of the adopted Housing Element and Affordable Housing Task Force Report, the city should implement incentives, flexible development standards and otherwise provide encouragement in order to facilitate the construction of affordable_ housing. The following shall apply to the affordable housing units required under the Specific Plan: 1. Other Incentives and Standards Any incentives, standards or programs adopted as-'part ofa City-Aide affordable housing program may apply to the Developer. E. Phasing The provisions of the affordable housing units shall be phased with the occupancy of the market rate units in accordance with the following phasing.plan. kvv :ti:.v.:./..:.}...v r /•.O.{:•}?{"`ii�j'{' }:{xti�v}: .e` �y� p.:..v.. ti::i{'.y::•ir:!;:K:?ti r,V-.,.:{ x:1`f.•':::::.i' /� s' {: D :}.Y..y..,n ii$.r•:' w :{�.; {>:��iit�t;1;:3Al. :{.1'yr,'•.Y{>,.{$:{tr};}..:t v {..2}•:v:.., '� : .:\Y$}`.••. uu {• iv{ty?4.••:.:.;v::'r.}r?:n%::J::•:':v::;:::, ;'} ..rry.:. ...Y.4}}:{•} ' '2•.vv Z' v•.+}i.v. •v?:.y...... J p, S}%:. v.try\:: :}:{!..}: �:ii:S%{{.}�(.: �,. �++'<.iS?.},,;. 'k:. t..•r-atr> :.E�:. •::{x{tg.'h.: .,u;r,.;••::.}:{:;::;:'>{'' ::•o•::. s::�.xa•:••::{:$`i:•, r:ia}: v''")2*. •:}'4-:.SX' rr•::.:}•::.1'lu:iila�l�Ll�.�.',. �::r•,....-;:.c_.:::.• t•.�<-•}'••'-w::i}:i'::r;:xsf:i�.�iki iil�:t;�?�r,.::••:A:::,L... .•{�4:{.,.: .' :'.. :..::-..:asp: ..::.. • �.,,.. >f�:.,{,.� ':.,..:.::.::.: n. s:.:1 :�<�<€:> :�::::.......:.�....,? `f�zsl l. .L�.�s..s.. I 500 75 II 1000 150 III 1500 225 IV 2000 300 V 2750 375 VI 3250 total remainder 5 (K)03R) 1. Within four months of the issuance of the Certificate of Occupancy of the cumulative market rate unit in Column A, Developer must have submitted tentative tract map and conditional use permit applications for the cumulative affordable units in Column B. (for example, within 4 months of issuance of the Certificate of Occupancy, for the 500th market rate unit, Developer must apply for permits for a cumulative total of 75 affordable units.) 2. Developer must be under construction with, or have completed, the total cumulative affordable units in a phase prior to issuance of the Certificate of Occupancy of the last cumulative market rate unit in the next phase. (for example, Developer must be under construction, or have completed, 75 affordable units prior to issuance of the Certificate of Occupancy of the I000th market rate unit.) 3. The City shall use its best efforts to process all tentative tract map and final tract map applications in a timely manner. If a final tract map containing designated affordable housing units is.not approved within 18 months of submittal of the tentative tract map by Developer, the above construction obligation for those affordable units shall be tolled based on the processing delay. 4. During the last phase of affordable units(affordable unit number 376 and beyend), building permits will be issued on a one-for-one basis with the last phase of market rate units (market rate unit 3251 and beyond) until the Developer's total-obligation of affordable units (15% of the total units built)has been met. 5. Developer may bond for the construction of the required affordable units in Column B not under construction or completed, at the rate of S40,000/unit (adjusted yearly based' on CPI). 6 (iosa) Holly-Seacliff Specific Plan Affordable Housing Plan For Seacliff Partners Properties January 10, 1994 L INTRODUCTION& BACKGROUND A. Purpose & Intent This Affordable Housing Plan has been prepared by Seacliff Partners in compliance with the affordable housing requirements of the Holly-Seacliff Specific Plan, and conditions of approval for Tentative Tract Maps 14007 and 14009 located within the Ellis-Goldenwest Specific Plan. The intent of this Affordable Housing Plan is to preserve and provide housing opportunities for moderate income persons and households in furtherance of the goals, policies and programs of the Housing Element of the City of Huntington Beach General Plan, and consistent with other City-adopted plans and project approvals. B. Background The Holly-Seacliff planning area encompasses a total of 768 acres of land within the central part of the City of Huntington Beach. The following is a summary of pertinent City-adopted plans and project approvals affecting the development of housing within the Holly-Seacliff planning area: 1. Holly-Seacliff General Development Plan: (General Plan Amendment No. 89-1) Adopted January 1990. Adopted a master plan of land use, circulation, open space, public facilities and community theme for the 768-acre Holly-Seacliff area(including the Ellis-Goldenwest Specific Plan). The Holly-Seacliff Master Plan allows for the development of a maximum 4,410 residential units at densities ranging for 3 to 25 dwelling units per gross acre. Final Environmental Impact Report No. 89-1 was certified to contain mitigation measures for General Plan Amendment No. 89-1. 2. City of Huntington Beach 1989 Housing Element Update: Adopted July 1990. Identifies local housing needs, opportunities and constraints, and establishes goals, policies and programs for the attainment of decent housing for households of all socioeconomic, racial and ethnic groups, the provision of a variety of housing opportunities and types, and the development of a balanced community. The Housing Element includes a regional assessment of needs by varying income groups. 1 (k1038) • 3. Holly-SeacliffDevelopment Agreement 90-1: Adopted D•ber, 1990. Vested Seacliff Partners' right to develop 3,780 residential dwelling units within the Holly- Seacliff area in accordance with existing City policies and regulations for a period of 15 years in exchange for accelerated park dedications and citywide public infrastructure improvements, neighborhood park improvements and payment of special traffic impact and public facility fees. 4. Holly-Seacliff Specific Plan: Adopted April 1992. Adopted zoning and comprehensive development standards for a total of 3,845 residential.units within the Holly-Seacliff area. (The total number of residential units was subsequently amended to 3,895 by the adoption of Code Amendment No. 91-12 in May 1992.) The Holly Seacliff Specific Plan contains the following affordable housing requirement: "All developers of residential projects shall be required to submit an affordable housing plan in conjunction with any subdivision in accordance with the City's adopted Housing Element. An affordable housing plan shall provide for on-site affordable housing within the Holly-Seacliff Specific Plan. The contents of the affordable housing plan shall include the following: a. Fifteen(15)percent of the total units proposed shall be for households earning less than 120%of the Orange County Median Income. b. A detailed description of the type, size, location and phasing of the units being built. c. The estimated applicable sales price and rental rate of the units. d. Residential projects for households earning less than 80%of the Orange County Median Income may request a subsidy by one or more of the following: (1) Direct financial assistance. (2) Reduction in fees and/or exaction's. (3) Deviations from specific development standards of the Holly-Seacliff Specific Plan. NEW 5. T ntative Tract Map Nos. 14007 and 14009: Approved September, 1991. Subdivision of 31 acres within the Ellis-Goldenwest Specific Plan into 141 - 8,000 square foot minimum, single family lots. As a condition of approval, Seacliff Partners was required to submit an affordable housing plan to provide 20 percent of the total residential units for moderate income households, either within the tract or at an off-site location within the city. through a subsequent agreement, the Huntington Beach City School District has agreed to acquire a site within Tract No. 14009 for a new elementary school, reducing the total number of units to 109. This Affordable Housing Plan addresses providing the 20 percent requirement(22 units) for these tracts. 2 (k103 8) NEW 6. Ellis-Goldenwest Specific Plan: -Adopted June, 1988. Established zoning and development standards and requirements for "Estate Residential" uses (less than or equal to 4 units per acre)within a 160-acre area within the north-central portion of the Holly-Seacliff planning area. The Ellis-Goldenwest specific Plan permits a minimum residential for size of 8,000 square feet and a maximum density of 3 dwelling units per acre. C. Definitions The following definitions apply to terms used in this plan: "Affordable Housing" -A residential unit that is affordable to households earning less than 120% of the County Median Income. "City" - The City of Huntington Beach, California. "County" - The County of Orange, California. "Developer" - Where-capitalized, means Seacliff Partners, a joint venture between U.W.C. Development corp. and Pacific Coast Homes,or their successors or assigns. "Development Agreement" - Development Agreement No. 90-1 for the Holly-Seacliff area. "Median Income" - The most current median income figure for Orange County as published by the United States Department of Housing and Urban Development. "Moderate Income Household" -A household with a total annual gross income of between 80 - 120% of the Median Income as defined above. "Plan" - Where capitalized, means the Holly-Seacliff Affordable Housing Plan. "Specific Plan" - The Holly-Seacliff Specific Plan as it may be amended from time to time. II. Plan In accordance with the Specific Plan requirements,this section identifies the number, location,type, size, phasing and estimated sales prices of the affordable units to be preserved or constructed by the Developer. A. Number of Affordable Units The approved total number of residential units in the Specific Plan is 3,895 units. The properties to be developed by the Developer within the. Specific Plan are approved for 3,537 residential units. Developer's Specific Plan affordable housing requirement is 531 moderate income units (15%x 3,537 total units). If fewer than 3,537 units are actually built by Developer within the Specific Plan area,then the required number of affordable units required will be reduced proportionally. 3 (k1038) B. Location, Type and Size of Affordable Units The following table identifies a menu of proposed locations ,types and sizes of affordable housing units to be constructed within the Specific Plan area. The Table sets forth the maximum possible number of units within each planning area. The ultimate mix and number of units to be built will be at the discretion of the Developer. For these purposes of satisfying the affordable housing condition for Tentative Tract Maps Nos. 14007 and 14009,the location of the required units will be in the Holly-Seacliff Specific Plan, in Planning Units II-4, II-5 or II-6. Each project providing affordable housing shall enter into an affordable housing agreement with the City that assures continued affordability for 30 years through the use of a covenant on the property. 4 (k1038) Table I `'>} 170 II-4 9.5 Flats 500-1050 SF $136,685 to Studio, 1&2 BR $182,900 150 II-5, -6 8 Flats 500-900 SF $136,685 to Studio, 1&2 BR $182,900 575 IV-1 16 Flats 500-900 SF $136,685 to IV-2 8 Studio, 1&2 BR $182,900 IV-4 53 Note: Sources: City of Huntington Beach, Affordable Housing Price/Income Guidelines updated February 1, 1992 (for sales prices). The estimated sales prices are as of February 1, 1992 and are subject to adjustment in proportion to increases or decreases in Orange County median income as published by HUD. 5 '(k1038)