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HomeMy WebLinkAbout10/05/2010, B4 - REQUEST TO AMEND THE AFFORDABLE HOUSING PLAN APPROVED FOR THE ROCKVIEW CLOSE PROJECT TO FACILITATE council ° j AcJenba Repoat 'mmNumi . P.) C I TY OF SAN L U IS O B I S P O FROM: John Mandeville, Community Development Directo9�11 Prepared By: Michael Codron; Acting Assistant City Manager SUBJECT: REQUEST TO AMEND THE AFFORDABLE HOUSING PLAN APPROVED FOR THE ROCKVIEW CLOSE PROJECT TO FACILITATE ITS COMPLETION (3301 ROCKVIEW; PD 155-02). RECOMMENDATION Adopt a resolution amending the Affordable Housing Plan approved for the Rockview Close project, as follows: 1) Rescind the $68,000 Affordable Housing Fund award made to the Rockview Close project for the provision of an "extra" affordable dwelling unit. 2) Allow the new owners of the project to pay the affordable housing fee ($73,787) in-lieu of building one affordable dwelling unit on-site. DISCUSSION Background The nine-unit residential project named Rockview Close (Attachment 1, Vicinity Map) was approved by the City Council in January 2003 with the adoption of Ordinance No. 1430 and Resolution No. 9412 (Attachments 2 and 3, respectively). The Council's action approved Planned Development (PD) zoning for the project in recognition of exceptional project features, including a substantial open space dedication within the South Street Hills Open Space area. As part of this action, the Council also approved an Affordable Housing Fund award for the project in exchange for two affordable dwelling units to be built on site. The City's Inclusionary Housing Ordinance only requires one unit, or an equivalent in-lieu fee, for this size project. In exchange for the one "extra" two-bedroom unit to be built on-site, the Council granted an award of$68,000. Construction Begins In May 2005, building permits were issued and construction began shortly thereafter. Progress continued until early 2006 when the pace of construction notably slowed. The City's building permit process requires construction projects to show adequate progress towards completion within one year of permit issuance, and on a regular basis thereafter. Prolonged inactivity at the site resulted in initiation of a code enforcement action to address site conditions the were fostering illegal habitation by transients and incidents of vandalism. �� I t - Rockview Close Affordable Housing Plan Page 2 By June 2007, the site had been secured and staff was actively engaged with the property owner to encourage completion of the project. Of particular note is that City staff did not expire the building permits even after substantial periods of inactivity. This turned out to be a prescient move, as on January 1, 2008, a new building code was enacted. Had building permits been expired then, new construction documents would be required now to pursue project completion at substantial additional expense. Caught in the Great Recession In 2007, Estate Financial, Inc., the construction lender for the project, foreclosed on the developer, Andy Fetyko. Estate Financial subsequently declared bankruptcy, and on July 25, 2008, a Trustee was appointed to administer the assets of the company, including the Rockview Close project. In March 2009 Central Coast Real Estate Services, Inc. was engaged by the Trustee to determine the best course of action to dispose of the property and recover as much as possible on behalf of Estate Financial's creditors. A Way Forward Proposed The initial course of action pursued by Central Coast Real Estate Services was an attempt to sell the partially-constructed project. According to the Trustee's representatives, offers were made to purchase the property, however, the Trustee refused to accept these offers because they were not financially acceptable to the creditors. After much consideration, the Trustee and the creditors made the decision to move forward and complete construction of the project themselves. They believe this course of action will provide the best results to achieve partial financial recovery for the creditors and complete this prominent project as envisioned by the community. Quality Assurance Throughout the transition, the Chief Building Official has consulted with project representatives to help them understand the requirements in order .to resume construction which include an evaluation by a licensed design professional of existing building materials that have deteriorated while exposed to the elements. The project representatives have hired a structural engineer to evaluate each structure to assess their deteriorated condition. The engineer has submitted a remediation and structural observation plan that will ensure substandard construction materials will be replaced. The plan has recently been reviewed and approved by the Chief Building Official. Affordable Housing Plan a Barrier to Project Completion During the period of time when the project was for sale, one of the most consistent questions asked by prospective developers was whether the requirement for two affordable dwelling units could be waived, and in-lieu fees paid instead, to make the project more.financially feasible. Based on staff s past experience with these prospective buyers, it was not a surprise when the Trustee also requested relief from the condition to build the two affordable units (Attachment 4). Staff is particularly supportive of the proposal to pay in-lieu fees for the project because approval of the request will result in a positive $141,787 swing in the Affordable Housing Fund which will be available to allocate to new projects. This amount reflects the new in-lieu fee that would Rockview Close Affordable Housing Plan Page 3 be paid shortly after the Council's approval plus release of the $68,000 Affordable Housing Fund award, which has been set aside for the Rockview Close project and remains undisbursed. In fact, based on the most recent project funded by the Affordable Housing Fund (Villages at Broad Street), staff believes it will be feasible to fund construction of four low-income family apartments with the funds made available through the loss of only two, two-bedroom moderate- income homes proposed in the Rockview Close project. The proposed change to the project's Affordable Housing Plan does not require a new CEQA environmental review. (See CEQA Guideline 15378(b)(4) [excluding government fiscal activities from CEQA review].) It should also be noted that the previously approved Affordable Housing Plan was not a mandatory project feature to qualify for PD rezoning in 2003. It is also noteworthy that the Rockview Close project would not require a PD overlay zone if it were being reviewed anew today, because recent changes to the City's Subdivision Regulations allow Common Interest Subdivisions to include lots of any size or shape. At the time, the PD overlay zone was the only method available to approve this type of subdivision. FISCAL IMPACTS As previously discussed, the proposed modification to the Affordable Housing Plan for Rockview Close will result in a fiscal benefit to the Affordable Housing Fund by making $141,787 available for allocation to new projects. The recommended action will have no fiscal impact on the General Fund, and will have a small positive impact on the water, sewer and transportation impact funds because the proposed change to the Affordable Housing Plan requires the developer to pay those fees before moving forward. ATTACHMENTS 1. Vicinity Map 2. Council Ordinance No.1430 (2003 Series) 3. Council Resolution No. 9412 (2003 Series) 4. Letter Requesting Modification of Affordable Housing Plan 5. Resolution Recommended for Adoption \\chstore4\Team\Counci1 Agenda Reports\Administration CAR\Rockview\rockview_CAR.DOC A , .A, - 1 - ORCUTT 'A O C-S-S ya M- D R-2-S ,a�ppe R-2-S p�B CIOS-40 M -2-S C-S-S-PD M- Vicinity Map 155-02 ® 30 0 30 60 Feet 3301 Rockview r ATTACHMENT 2 ORDINANCE NO. 1430(2003 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO AMENDING THE ZONING MAP FROM MEDIUM-DENSITY RESIDENTIAL WITH SPECIAL CONSIDERATIONS TO (R-2-S)TO MEDIUM-DENSITY RESIDENTIAL WITH A PLANNED DEVELOPMENT OVERLAY ZONE(R-2-PD)FOR PROPERTY LOCATED AT 3301 ROCKVIEW PLACE (PD 155-02). WHEREAS, the City Council conducted a public hearing on January 21, 2003, in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California for the purpose of considering PD rezoning for Tract 2502, a planned unit development (PUD)with 9 two-bedroom dwellings; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law;and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing on December 4,2002, and recommended approval of the project to the City Council; and WHEREAS, the Architectural Review Commission conducted a public hearing on December 16, 2002, and approved the proposed building designs for the project; and WHEREAS, the City Council has reviewed and considered the Mitigated Negative Declaration of environmental impact and the mitigation monitoring program prepared for the project;and WHEREAS, the City Council has duly considered allevidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations of the Planning Commission, Architectural Review Commission,and by staff presented at said hearing. NOW,THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Section 1. Planned Development Finding. Based upon all the evidence, the Council makes the following findings in support of Planned Development zoning for the project site: 1. The project design transfers allowable development, within a site, from areas of greater environmental sensitivity or hazard to areas of less sensitivity or hazard because the proposed buildings are moved closer to the street, as required by Land Use Element Policy 6.2.2Y, thereby avoiding putting people and development closer to Lot I1 and the hillside areas at the back of the project site where unique plant resources have been . identified. 01430 l ATTACHMENT 2 Ordinance No. 1430(2003 Series) Page 2 2. The project provides more affordable housing than would be possible with conventional development because the applicant is providing two affordable dwelling units, where the City's Inclusionary Housing Requirement only requires the development of one such unit. 3. The project provides exceptional public benefits because a large area of environmentally sensitive open space (Lot 11) will be dedicated to the City, insuring the preservation of unique plant resources that have been identified upslope from the development area. The proposed fee dedication is consistent with Open Space Element Policy 15.2.13 (GP Digest) because it will allow the City to monitor and enforce restrictions in this habitat area. Section 2. Approval. The City Council does hereby approve application PD 155-02, as depicted in Exhibit A,subject to the following conditions. 1. Skylights shall he incorporated into the proposed building designs to insure maximum use of natural day-lighting in indoor areas. 2. A pedestrian pathway shall be delineated within the proposed 20-foot wide driveway so that vehicles are more aware of people walking along the driveway. The pathway may be delineated with stamped,colored concrete,or other method to the approval of the Community Development Director. 3. The project Conditions,Covenants.and Restrictions shall include a requirement that garages be kept available for parking of vehicles at all times, and shall not be used for general storage. 4. All mitigation measures are hereby made conditions of approval of the project. 5. The applicant shall detail the disposal location for excess dirt removed during grading operations in the required construction materials recycling pian, which is reviewed and Approved by the City's Solid Waste Coordinator. 6. The applicant shall use an earthen swale instead of a concrete swale above the driveway for drainage, unless the hydrology analysis for the project shows that an earthen swale is not feasible. 7. The final map for the project shall reflect an Irrevocable Offer of Dedication for Lot 11, or an Easement Offer of Dedication, per the applicant's project description, to the approval of the Public Works Director and the Natural Resources Manager. C ATTACHMENT 2 Ordinance No. 1430(2003 Series) Page 3 8. The private driveway will be clearly marked and identified as a fire lane. Parking on Rockview Place will be limited due to the minimum 20' width required for fire apparatus access. 9. An avigation easement and real estate disclosure document shall be completed to the approval of the Community Development Director and Airport Land Use Commission Staff prior to recording of the Final Map for the proposed subdivision. INTRODUCED on the 21st day of January 2003, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 4th day of February 2003, on the following roll call vote: AYES: Council Members Ewan, Schwartz and Settle, Vice Mayor Mulholland, and Mayor Romero NOES: None ABSENT: None Mayor David F. Romero A EST: 1 Lee Price,C.M.C. City Clerk APPROVED AS TO FORM: Gilbert A Tru o Acting City Attorney MACHMENT3 Resolution No.9412 (2003 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A MITIGATED NEGATIVE DECLARATION AND VESTING TENTATIVE TRACT MAP FOR PROPERTY LOCATED ON 3301 ROCKVIEW PLACE AND ALLOCATING AFFORDABLE HOUSING FUNDS TO THE PROJECT;TRIER 155-02 (Tract 2502) WHEREAS, the City Council conducted a public hearing on January 21, 2003, in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California for the purpose of considering Tract 2502,a planned unit development(PUD)with 9 two-bedroom dwellings;and WHEREAS, notices of said public hearing were made at the time and in the manner required by law;and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing on December 4,2002,and recommended approval of the project; and WHEREAS, the Architectural Review Commission conducted a public hearing on December 16, 2002, and approved the proposed building designs for the project; and WHEREAS, the City Council has reviewed and considered the Mitigated Negative Declaration of environmental impact and the mitigation monitoring program prepared for the project;and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations of the Planning Commission,-Architectural Review Commission,and by staff presented at said hearing. NOW, THEREFORE,BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: Section 1. Subdivision Findings. Based upon all the evidence, the Council makes the following findings: 1. The proposed map is consistent with the General Plan because the subdivision will provide for medium density residential development in a manner consistent with the Hillside Development Standards of Land Use Element Policy 6.2.2. 2. As conditioned, the design or improvement of the proposed subdivision is consistent with the General Plan because each dwelling has access to a compact,private open space area and the development will occur as part of the neighborhood pattern anticipated for the medium density residential zone. 3. The site is physically suited for the proposed type of development because the soils engineering report has concluded that the site can support the proposed improvements, provided the recommendations of the report are followed. X9412 ATTACHMENT 3 Resolution No.9412(2002 Series) • Page 2 4. As conditioned, the site is physically suitable for the proposed density of development because the site is within an existing City block and is essentially surrounded by development that is at least as intense as proposed. New development in the vicinity of the project is occurring with a density of 12 units per acre, and due to the steepness of the slopes on the project.site,the proposed density of development is kept at 6 units per acre. 5. The design of the subdivision, or the type of improvements, is not likely to cause substantial environmental damage or substantially and unavoidably injure fish or wildlife or their habitat because the site does not have any creeks or other potentially significant habitat areas for fish or wildlife and the unique plant resources on the project site are going to be protected through a fee dedication of open space land to the City. 6. The design of the subdivision, or type of improvements, is not likely to cause serious public health problems because the type of improvements are residential and development will be designed to meet existing building and safety codes. 7. The design of the subdivision, or the type of improvements, will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision because no such easements exist. 8. The Mitigated Negative Declaration for the project adequately identifies and evaluates the potential impacts associated with this project and where impacts are potentially significant, mitigation measures are provided to reduce these impacts to less than significant levels. Section 2. Environmental Review. The City Council does hereby adopt a Mitigated Negative Declaration for the project, with the following mitigation measures and monitoring programs. 1. Mitigation: The applicant shall contact the Air Pollution Control District prior to submitting a building permit application for the project and shall comply with all requirements of the Asbestos ATCM, to the approval of APCD and the Community Development Director. • Monitoring Program: City staff will contact staff at the Air Pollution Control District to ensure that the applicant has complied with this mitigation measure at the time of building permit application submittal. 2. Mitigation: All recommendations of the Soils Engineering and Engineering Geology Report (soils report), prepared by Earth Systems Pacific, September 11, 2002, shall be implemented as part of the development of the project improvements where applicable, to the approval of the Chief Building Official. ATTACHMENT 3 Resolution No.9412(2002 Series) Page 3 • Monitoring Program: Plans submitted with the building permit application for the project will be reviewed with respect to the recommendations included in the soils engineering report, prepared by Earth Systems Pacific, September 11,2002, and City staff shall require the applicant to implement the recommendations of the report through the plan check process. 3. Mitigation: No new concentrated water flows are to be released downslope from the developed portions of the site. • Monitoring Program: The City will evaluate plans submitted with the building permit application for the project to insure incorporation of drains and gutters, and to insure that no surface gutters or swales are designed to dispose over grade on any steep slopes on the site. 4. Mitigation: The project shall employ small-scale Best Management Practices, such as listed in the handout attached to this initial study, wherever soil is disturbed. Soil disruption is anticipated to occur during construction of the road, extension of utilities, and with removal and recompaction of undocumented fill on the site. Soil disruption will also occur during construction of foundations for proposed buildings. • Monitoring Program: This mitigation measure will be monitored through the review of plans submitted with the building permit application for the project, including the project landscape plans and building and grading inspections of the work. If an early grading plan is issued, special care shall be taken to insure that disturbed areas that are not intended to be reworked within 30 days are hydro-seeded or stabilized in another approved manner to prevent erosion,in addition to other erosion control measures. Section 3. Action. The City Council does hereby approve application PD/TR/ER 155- 02,subject to the following conditions and code requirements. 1. The proposed Affordable Dwelling Units shall be sold under a 30 year contract of long- term affordability with the City of San Luis Obispo, and the buyers shall be eligible moderate income households,as verified by the San Luis Obispo Housing Authority. 2. Curb parking shall be prohibited between the project's access driveway and the south end of the individual driveway serving Unit B. 3. The subdivider shall dedicate a 2m wide public utility easement across the Rockview Place frontage and the common driveway,to the satisfaction of the utility companies. 4. The subdivider shall dedicate a minimum 3m wide street tree easement across the Rockview Place frontage. Said easement shall be adjacent to and contiguous with the public right-of-way. The street tree easement width shall be adjusted as necessary to provide adequate street tree clearances from the top of the existing and/or proposed retaining walls. �q -0 ATTACHMENT Resolution Pio.9412(2002Series) • Page 4 5. Curb, gutter, sidewalk, and street improvements shall be completed per city standards as a condition of final map approval. Curb and gutter shall be placed to conform to the existing curb alignment. The sidewalk shall be constructed to the base of the existing retaining wall and shall not be less than 1.5m (5') in width, inclusive of the curb. Sidewalk extensions per ADA and City standards shall be provided at all driveway approaches. Pedestrian access dedications shall be provided for all sidewalks where extended beyond the public right-of-way. 6. The existing retaining wall drain outlet locations shall be identified on the improvement plans and shall terminate at an approved location, to the satisfaction of the Public Works Director. New retaining walls shall include drainage provisions accordingly. 7. The proposed new retaining wall along the street frontage shall terminate within the subject property, unless an offsite easement is acquired to transition the grading and/or retaining wall beyond the tract boundary. Grading and/or slope bank stabilization beyond the end of sidewalk.shall be approved to the satisfaction of the Public Works Director and as recommended by the soils engineer. Since the adjoining property lies within unincorporated land, approval by the County Building Department must be submitted. 8. The public sewer main in Rockview Place shall be extended further to serve Lots 1 through 9, to the satisfaction of the Public Works Director and Utilities Director. Individual laterals for Lots 1 through 5 shall be provided. A common private main/lateral to serve Lots 6 through 9 shall be constructed (probably between Lots 6 & 7) and maintained by the Homeowner's Association (HOA), within an easement. The private sewer laterals shall include analysis of soil stability and incorporate recommendations from the soils engineer. 9. Rockview Sewer lift station charges may be required to be paid prior to building permit issuance for the new dwellings. 10. All utilities serving the existing dwellings shall be abandoned to the satisfaction of the city. 11. The demolition of the existing buildings triggers the Utilities Department Sewer Lateral Abandonment Policy. This policy states that the sewer lateral must be abandoned at the main prior to demolition unless the lateral is intended for reuse and it passes a video inspection. If the sewer lateral is intended for reuse, the owner shall submit a VHS videotape documenting the internal condition of the pipe to the Utilities Department for approval. 12. The subdivider shall place underground, all existing overhead utilities along the public street frontage to the satisfaction of the Public Works Director and utility companies. The existing terminal(Pac Bell)utility pole with street light#908 shall be replaced with a city standard street light. Power to the new street light shall be served by an underground service;per City standards. The street light location shall be placed with consideration for available sidewalk width and disabled access requirements. The existing phone and cable services shall be placed underground from the next service pole to the satisfaction of the Public Works Director and serving utility companies. ATTACHMENT3 Resolution No.9412 (2002 Series) Page 5 13. Separate utilities, including water, sewer, gas, electricity, telephone, and cable TV shall be served to each parcel to the satisfaction of the Public Works Director and serving utility companies. Utilities to new residences shall be underground. 14. The final map shall include any required public or private easements as required for the proposed development of the tract. Easements may include, but are not limited to, grading, drainage,water, sewer, storm drainage, access,vehicle turn-around, and utilities. Any maintenance or common driveway agreements shall be completed and recorded concurrent with final map approval;presumably in the tract CC&Rs. 15. All lots shall be graded to preclude cross-lot drainage, or, appropriate easements and drainage facilities shall be provided,to the satisfaction of the Public Works Director. 16. Improved or diverted upslope drainage shall be directed in a non-erosive manner to an approved point of disposal. Any needed off-site easements shall be secured prior to map recordation. Otherwise, the final drainage system design shall direct runoff to the public street. If it is discovered that the existing terrace drainage has a historic outlet to the easterly offsite property, level spreaders may be considered for approval by the Public Works Director and project soils engineer to re-establish sheet flow beyond the building pads. 17. .Improvement and building plans shall include a complete grading and drainage plan and appropriate calculations. The grading plan shall include existing and proposed contours to clearly depict the proposed grading and drainage for this development. 18. Final alignment and design of the rock barrier fence and drainage Swale shall be approved to the satisfaction of the Public Works Director. 19. Pursuant to Government Code Section 66474.9(b)(1), the subdivider shall defend, indemnify and hold harmless the city or its agents, officers and employees from any claim, action, or proceeding against the city or it agents, officers or employees to attack, set aside, void or annul an approval of the city, advisory agency, appeal board or legislative body concerning this subdivision. The city shall promptly notify the subdivider of any claim,action or proceeding and shall cooperate fully in the defense. 20. The C.C.&R's for the project shall include a restriction to prohibit residents from accessing the open space area above the project site (Lot 11), except by way of an approved City trailhead. Code Requirements: 21. A water allocation is required,due to the additional demand on the City's water supplies. The City currently has water to allocate, and does so on a"first-come, first-served"basis. Water is allocated at the time building permits are issued and the Water Impact Fee is paid. Both the Water and the Wastewater Impact Fees are based on a per residential unit basis. �J ATTACHMENT 3 Resolution No.9412(2002 Series) Page 6 22. By ordinance, the applicant is required to prepare a recycling plan for approval by the City to address the recycling of construction waste for projects valued at over$50,000 or demolition of structures over 1000 square feet. The recycling plan shall be submitted to the Building Department with the building plans. The City's Solid Waste Coordinator can provide some guidance in the preparation of an appropriate recycling plan. 23. The tentative map indicates a single meter will be replaced with two water meters. This may or may not be possible, depending on the size of the water service and the sizes of the proposed water meters. Generally, the water meters will need to be a minimum of 1" in order to provide sufficient flow to fire sprinklers. The water service must be 2" in order to serve two 1"water meters. 24. The tentative map shows a new a water service serving 7 water meters. This is not allowed. Up to four 1" water meters can be served by a single 2" water service. The tentative map shall be revised to show two separate 2" services, with up to four 1"water meters on each manifold. Mapping and Misc.Requirements 25. Complete public improvement plans including a street improvement and curb grade plan, prepared by a registered civil engineer, shall be submitted to the Public Works Director for review and approval. All grades, layout, staking and cut-sheets necessary for the construction of street paving and frontage improvements shall be the responsibility of the developer. 26. The subdivider shall submit a final map to the city for review, approval, and recordation. The map shall be prepared by, or under the supervision of a registered civil engineer or licensed land surveyor. The final map shall be prepared in accordance with the Subdivision Map Act and the Subdivision Regulations. 27. The map shall be tied to at least two points of the City's horizontal control network, California State Plane Coordinate System, Zone 5 (1991.35 epoch adjustment of the North American Datum of 1983 also referred to as "NAD 83"-meters) for direct import into the Geographic Information System (GIS) database. Submit this data either via email, CD or a 3-1/2" floppy disc containing the appropriate data for use with.AutoCAD,version 2000 or earlier (model space in real world coordinates, NAD 83 - m).. If you have any questions regarding format,please call prior to submitting electronic data 28. The final map, public improvement plans and specifications shall use the International System of Units (metric system). The English System of Units may be used on the final map where necessary (e.g. - all record data shall be entered on the map in the record units,metric translations should be in parenthesis),to the approval of the City Engineer. 29. Electronic files and stamped and signed drawings shall be submitted for all public improvement plans prior to map recordation or commencing with improvements, whichever occurs first. Submittal documents shall include the electronic drawing files (.dwg) and any associated plot files along with one original, stamped and signed, ink on . mylar set of plans. Resolution No.9412(2002 Series) ATTACHMENT 3 Page 7 30. Prior to acceptance by the City of public improvements, the developer's engineer shall submit a digital version of all public improvement plans and record drawings,compatible with Autocad (Digital Interchange Format, DXF) for Geographic Information System (GIS)purposes,to the satisfaction of the Public Works Director. Section 4.Financial Incentives. The City Council does hereby approve allocation of Affordable Housing Funds in an amount not to exceed$68,000,based on the following findings. 1. The project is eligible to receive financial incentives from the City because 22%of the units will be affordable to moderate income households, as guaranteed by a long-term affordability agreement with the City. 2. Eligibility. Use of the Affordable Housing Fund (AHF) for the requested purpose will increase or improve the City's affordable housing inventory because it will provide for two new affordable dwellings and will promote General Plan policies regarding housing because the project includes both market-rate and affordable housing units. 3. Need. There exists a substantial or overarching need for the type of housing be assisted because these units will be the fust for-sale units to be developed under the City's Inclusionary Housing Requirement and affordable housing is significantly constrained by land values in the San Luis Obispo area. 4. Timing. The project would better serve the City's needs if it were built immediately as opposed to later because the City presently has resources, including water and sewer capacity to allocate and the proposed housing is in demand at this time. 5. Financial Effectiveness. AHF funding leverages significant additional funding from the project sponsor, who will be developing a 9-unit housing project at an estimated cost of $3,477,000, with the hard costs (not including land) of the additional affordable dwelling unit estimated at$279,875. 6. Readiness. With the approval of this resolution, the project has all necessary City entitlements and is ready to proceed AITACHMEW3 Resolution No.9412 (2002 Series) Page 8 On motion of Coucnil Member Settle,seconded by Vice Mayor Mulholland and on the following roll call vote: AYES: Council Member Ewan, Settle and Schwartz,Vice Mayor Mulholland and Mayor Romero NOES: None ABSENT: None The foregoing resolution was passed and adopted this 21 day ofJanuary2003. Mayor David F.Romero ATEST: Cy Lee Price,C.M.0 City Clerk APPROVED AS TO FORM: Gilbert A.To,Ating City Attorney aq -15 ( _ > i TrACHMENT4 A S S E T L O G I C G R O U P Re: Rockview Place Affordable Housing Sept. 1, 2010 Mr. Michael Codron Housing Programs Manager City of San Luis Obispo Community Development San Luis Obispo, Calif.93401 Dear Mr. Codron, The trustee's for Estate Financial, Inc. now have the funding to complete the houses at Rockview Place. We have looked at various sales options and the one option that will work to cover the costs of finishing the houses is to pay the in lieu fees for affordable housing currently required on the project and be able to sell all houses at market sales prices. I am therefore requesting city approval of an amendment to the affordable housing plan for the project.The owner will pay the in lieu fees totaling$73,787.05 and the city will remove any conditions for affordable housing on the project. In addition the owner will forgo the$68,000.00 affordable housing award that was approved for the project. The owner will pay the in lieu fees following city council approval of this request. According to the trustee we will be able to start the construction to finish the houses in ten to fourteen days. I appreciate your help in getting the approval needed from the city to proceed with removing the affordable housing condition on the project. Please let me know what else you need to get the approval, and when you will need the in lei fee check. Sincerely, Mel McColloch Agent for Chapter 11 Trustee for Estate Financial, Inc. 1540 MARSH STREET SUITE 230 SAN LUIS OBISPO, CALIFORNIA 93401 T 805 543 4560 F 805 543 1980 asseUogicgroup.com ATTACHMENT RESOLUTION NO. XXXXX (I 010 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO APPROVING A MODIFICATION TO THE AFFORDABLE HOUSING PLAN FOR THE ROCKVIEW CLOSE PROJECT AND RESCINDING A$68,000 AFFORDABLE HOUSING FUND AWARD MADE IN 2003 BUT NOT YET DISBURSED (3301 Rockview; PD 155-02) WHEREAS, the City of San Luis Obispo, a charter city and municipal corporation, adopted Resolution No. 9412, which approved an Affordable Housing Plan on January 21, 2003, requiring the developer of the Rockview Close Project ("Project") to build two affordable dwelling units on the project site; and WHEREAS, the project's Affordable Housing Plan requires the developer to construct two homes on the project site and offer those homes for sale to moderate income households in compliance with the City's Affordable Housing Standards; and WHEREAS, the City Council approved Ordinance No. 1430 on January 21, 2003, approving Planned Development rezoning for the project site, which included a finding that the Project "provides more affordable housing than would be possible with conventional development because the applicant is providing two affordable dwelling units, where the City's Inclusionary Housing Requirement only requires the development of one such unit;" and WHEREAS, the inclusion of the extra affordable housing unit described in Ordinance No. 1430 was not necessary for the Project to qualifyfor approval of Planned Development rezoning, and payment of the in-lieu fee will fully meet the Project's Inclusionary Housing Ordinance requirement, per SLOMC 17.91;and WHEREAS, the City Council agreed to award the developer the sum of$68,000 from the Affordable Housing Fund to compensate the developer for the provision of an additional affordable dwelling unit(Council Resolution No. 9412); and WHEREAS, the Project received building permits and began construction during 2005 but because of a foreclosure, bankruptcy and a significant slowdown in the housing market, which resulted in declining residential values throughout the Country and the City of San Luis Obispo, construction on the project was halted; and WHEREAS, the proposed change to the Affordable Housing Plan for the Project will result in a positive fiscal impact to the Affordable Housing Fund of$141,787; and WHEREAS, recent experience has shown that $141,787 in Affordable Housing Funds can likely support the off-site construction of four low-income family apartments with the funds that would support the construction of two, two-bedroom moderate-income homes if left in the Project. R � _R ATTACHMENT 6 Resolution No. (2010 Series) Page 2 NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Affordable Housing Fund Award Rescinded. The City Council does hereby rescind the $68,000 Affordable Housing Fund award approved per Section 4 of Resolution No. 9412, making those funds available to allocate to new affordable housing projects to the approval of the City Council, and directs the Community Development Director, at the cost of the applicant, to remove any deed restrictions currently recorded against the Project relative to the affordable housing requirement. All City-wide impact fees that the project was previously exempted from because of the.previously approved affordable housing shall now be paid. SECTION 2. Interpretation of Finding #2 of Ordinance No. 1430. The City Council does hereby interpret Finding #2 to be met through the payment of the in-lieu fee for the project and the rescinding of the Affordable Housing Fund award for the project because the action will allow for the project to be completed and could result in the construction of four low-income family apartments with the funds that would support the construction of two, two-bedroom moderate-income homes if left in the Rockview Close project. Affordable housing in-lieu fees for the project shall now be paid. Upon motion of , seconded by , and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of , 2010. Mayor David F. Romero ATTEST: Elaina Cano, City Clerk 13 Ll ` /V Resolution No. (2010 Series) ATRCHME r I s Page 3 APPROVED AS TO FORM: C tine Dietrick, City Attorney I 1,34 -0