HomeMy WebLinkAbout05/19/2009, PH1 - REQUEST BY HABITAT FOR HUMANITY FOR APPROVAL OF A MINOR SUBDIVISION WITH EXCEPTIONS FOR LOT SIZE, L council
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CITY OF SAN LUIS OBISPO 917^
FROM: John Mandeville, Community Development Director ^
Prepared By: Michael Codron, Housing Programs Manager
SUBJECT: REQUEST BY HABITAT FOR HUMANITY FOR APPROVAL OF A
MINOR SUBDIVISION WITH EXCEPTIONS FOR LOT SIZE, LOT
DEPTH AND REDUCED STREET YARD, AND AFFORDABLE
HOUSING INCENTIVES (1324 Phillips; MS 23-09).
RECOMMENDATION
Adopt a resolution, approving the proposed project on 1324 Phillips with the following
components:
1. As recommended by the Planning Commission, approve a minor subdivision with
exceptions for lot size, lot depth and a reduced street yard.
2. Approve affordable housing incentives for the project, including a 45%density bonus and
a grant of$332,500 from the City's Affordable Housing Fund(AHF).
DISCUSSION
Situation
Habitat for Humanity (HFH) is proposing a development of two, three-bedroom homes on 1324
Phillips Lane (Attachment 1, Vicinity Map). The project site includes 5,000 square-feet of land
and is located in the R-3 zone. The proposal involves a minor subdivision to split the existing
property into two lots with 2,500 square feet each (Attachment 2, Project Plans). The homes
would be deed-restricted for owner occupancy by very-low income households ($35,400 is the
maximum income for a family of four). As a result, the applicant is eligible for affordable
housing incentives, per the City of San Luis Obispo's Municipal Code, Chapter 17.90. As an
affordable housing project, the project is also statutorily exempt from environmental review
under CEQA (CEQA Guidelines Section 15194).
Incentives Requested
The proposed affordable housing incentives include a density bonus and grant from the City's
AHF for property acquisition (Attachment 3). According to the City's Affordability Standards,
the maximum sales price for each home is $110,475. This amount is less than the expected
construction costs for the homes. As a result, the proposed grant from the City for property
acquisition is essential to the economic viability of the project.
The proposed incentives are supported by the City's Housing Element(HE), including HE Policy
3.4.2, which allows the Affordable Housing Fund to be used for property acquisition, and HE
Program 3.12.11, which says that projects committed to affordable housing are eligible for
density bonuses and financial assistance. jD`` l `I
Habitat For Humanity(1324 Phillips Lane) Pate 2
The following sections discuss the Planning Commission's review of the proposed subdivision
and provide the Council with a detailed evaluation of the proposed affordable housing incentives.
Planning Commission Review of Proposed Exceptions
On April 22, 2009, the Planning Commission reviewed the proposed subdivision and
unanimously recommended approval of the project (Attachment 4, Planning Commission
Resolution No. 5521-09 and draft minutes). The Commission's discussion focused on the
proposed subdivision exceptions and the design of the units, which they determined to be
compatible with the existing neighborhood. The Commission noted that the location of the
property on the comer of Johnson and Phillips allows each of the proposed lots to include 50 feet
of street frontage, which is the standard lot-width for the neighborhood. As a result,the proposed
lots will appear the same as other properties in the neighborhood when viewed from the street.
The Planning Commission is recommending that the City Council approve the exceptions listed
in the table below,based on findings and subject to conditions of approval.
Standard Normal Re uirement Proposal
Lot Size 5,000 S.T. 2,500 s. .
Lot Depth 80 feet 50eet
Street Yard Setback 15 feet 10feet @ Phillips Lane
During their discussion, the Commission noted that the same development could be
accomplished without exceptions under the City's Common Interest Subdivision Regulations.
However, that process would require the formation of a homeowner's association (HOA), which
would add upfront costs to the applicants, and ongoing costs to future owners. Staff is supportive
of the proposed subdivision exceptions, in-lieu of a common interest subdivision, because there
are no common improvements to be maintained that would benefit from formation of an HOA.
Density Bonus
The proposed density bonus of 45% will allow the project to be developed with two, three-
bedroom homes where normally two, two-bedrooms homes would be allowed. The density
bonus is required because of the way the City utilizes bedroom count as a factor in the density
calculation.
The three-bedroom homes proposed by HFH are modestly sized with 961 square feet for the
single-story building and 1,044 square feet for the two-story home on the comer. A single-car
garage is proposed for both units, meeting the City's low-income parking requirement of one car
space and one bicycle space per unit.
Staff and the Planning Commission support the proposed density bonus because the proposed
homes are clearly in-scale with the project site and surroundings. The density of development
proposed is expected to have no negative impacts on the surrounding neighborhood.
PR i --a-
Habitat For Humanity(1324 Phillips.Lane) Paste 3
Affordable Housing Fund Status
The Affordable Housing Fund is an extremely valuable and flexible source of funds that is used
to support local housing programs and development projects. Funds can be awarded at the
Council's sole discretion, allowing for a process that is efficient and direct. These funds have
been collected from developers "in-lieu"of actual housing units, therefore, these funds should be
allocated in a way that maximizes the number of units created, and in a way that is consistent
with other relevant City policies.
In making its recommendations to the City Council for how AHF funds should be allocated, City
staff considers Council adopted criteria including eligibility, need, suitability, timing, financial
effectiveness and readiness (Attachment 5, Council Resolution No. 9263). In addition, staff
considers the following questions for each proposal:
1. What is the balance of the fund and how quickly can allocated balances be restored for
future projects?
2. How does the current proposal compare to other requests for AHF assistance?
3. What is the cost per unit of the proposed AHF award, and how does this compare to costs
for other units of the same type and affordability?
With the recent slow-down in the construction of market-rate housing, the City has experienced
increased demand for funding through the Affordable Housing Fund. The following sections
show all of the currently proposed AFH expenditures and how well the proposed HFH project
meets the criteria discussed above.
Council Adopted Award Criteria
The proposed HFH development is consistent with each of the Council-adopted criteria for
evaluation of AHF awards, as discussed below.
EligibilityThe proposed HFH project is eligible for Affordable Housing Fund assistance
because it will create two, very-low income, owner-occupied dwellings.
Need: The City's Housing Element includes quantified objectives for housing construction at
various income levels. Because of the deep subsidies required for very low-income housing, the
vast majority of units constructed in the City for this income level will be rentals. However,
Housing Element Table 5, New Housing Construction Objectives, does establish a target of 20
units for single-family homes at the very-low income level (Attachment 6). The proposed two
units would bring the City's total for owner-occupied,very-low income units to four.
Suitability: As recommended by the Planning Commission, the proposed homes are suited to the
project site, the project is consistent with the development pattern of the neighborhood, and, it
will not harm the general health, safety or welfare of those living or working on the site or in the
project vicinity.
PN 3
I
Habitat For Humanity(1324 Phillips Lane) Page 4
Timing. The timing of the award is critical because the funds will be used for property
acquisition and HFH is currently in escrow to complete the purchase.
Financial Effectiveness: The financial effectiveness of the award is substantial because it
leverages other funds, including donations of goods and services, that will be used by HFH to
complete construction of the homes. The local HFH affiliate benefits from partnerships
developed at the national level with companies such as Whirlpool, PG&E, Owens Corning,
Simpson Strong-Tie, Valspar and Loew's and Home Depot. For instance, Whirlpool donates all
of the appliances used in the homes that HFH builds. These partnerships, along with the
requirement for each family to contribute 500 hours of labor to HFH, keep costs down and insure
the financial feasibility of each project they build. While these partnerships and volunteer labor
contributions help HFH address the costs of construction, the land for these housing projects is
almost always donated, or purchased with donated funds. In this case, the per-unit cost for
property acquisition is $166,250.
Normally, staff would seek to fund projects that have a lower per-unit subsidy, however; the
Housing Element recognizes that deep subsidies are required for single-family homes targeted to
very-low income families and still establishes production targets for these units. As a result,
HFH makes a perfect partner for the City because they are the only local, non-profit developer
producing this type of affordable housing.
Readiness: With City Council approval of the Planning Commission's recommendation, the
project will have all necessary entitlements and will be ready to proceed.
Fund Balance
Attachment 7 includes an overview of AHF revenues and expenditures since its inception in
2001. In total, the City has collected over $5 million from in-lieu fees to support the
development of affordable housing. The City has spent approximately $1.5 million of this
amount, and has committed an additional $1 million to approved projects, such as the Housing
Authority's Moylan Terrace development and for down-payment assistance to moderate-income,
first-time homebuyers in the Laurel Creek subdivision.
The fund has experienced consistent growth and interest earnings,bringing the current balance to
approximately $4.5 million. There is approximately$3.7 million currently available to allocate
to new programs. The total of all Affordable Housing Fund allocations currently proposed is
approximately $2.5 million. These proposed allocations are listed in the table below. Staff will
return with detailed evaluations of each of these requests during a subsequent Council hearing.
Current Requ - .posed Allocations
Habitat for Humanity 2 units $332,500
Wineman Hotel LLC 23 units $1,000,000
Villages at Broad(ROEM Development) 40 units $1,000,000
Judson Terrace Homes $45,000
AIDS Support Network 1 unit $82,780
SLO County Hcusinq Trust Fund $30,00-0-
Total
30000Total Proposed Allocations 66 units $2,490,280
Net.Available for New Programs if All Current Requests Appiuved $1,231,220
PT-7
I
Habitat For Humanity(1324 Phillips Lane) Paae 5
Currently, the overall average cost per unit for AHF expenditures and commitments is $22,350
per unit. If all of the allocations listed above are approved,the average AHF expenditure per unit
would increase to $28,400 per unit. This increase reflects both the higher cost to develop
affordable housing in the City since the fund was created, and the types of projects that would
receive funding. While the proposed HFH project is more expensive on a per-unit basis than
other City-funded projects, this cost is offset by the value created for the future homeowners and
the policy objectives that the project helps the City achieve.
Over the past year, the City has experienced a reduction in the total number of building permits
issued for new commercial buildings and a corresponding reduction in the amount of in-lieu fees
that have been collected. However, some large projects are still moving forward. In particular,
the Sierra Vista Medical Office Building pulled permits in early April, paying an in-lieu fee of
$250,000..
Based on a review of approved construction permit applications, staff has calculated pending
affordable housing in-lieu fees in the amount of$500,000. These are fees that will be collected
when construction permits are issued for approved projects, such as the Hampton Inn on Calle
Joaquin. Staff has confirmed that some of these projects are delayed by the current economic
recession, but remain viable projects with all of their entitlements. As a result, staff is optimistic
that fund balances will continue a strong growth pattern when the current recession fades and
construction permit activity returns to higher levels. Staff expects that the balance of the AHF
will be restored to current levels in four to five years, depending on when building permit activity
increases. However,new projects may also be funded during this time period.
FISCAL IMPACTS
The recommended financial award of $332,500 would be paid out of the Affordable Housing
Fund, which consists of in-lieu fees collected under the City's Inclusionary. Housing Ordinance.
The fund may only be used for projects or purposes that create or support affordable housing
within the City of San Luis Obispo. Based on prior expenditures and pending commitments,
there will be a balance of$1.2 million remaining in the AHF after this award. The project will
have no impact on the General Fund.
ALTERNATIVES
1. Do not authorize affordable housing incentives for the proposed project. This action
is not recommended because the project cannot be constructed without the proposed
incentives,including financial assistance for property acquisition.
2. Use CDBG funds for property acquisition. Although CDBG funding can be used to
purchase land for affordable housing, this process requires a willing and patient seller. In
this case, the seller is eager to close escrow and new CDBG funds will not become
available until October 2010.
3. Fund a smaller amount. The City Council could approve a smaller award,however,this
alternative is not recommended because the fund can support the proposed award amount
and full funding will help HFH complete the project sooner, consistent with the award
criteria for"readiness."
�FfI-5�
Habitat For Humanity(1324 Phillips Lane) Page 6
ATTACHMENTS
1. Vicinity Map
2. Project Plans
3. Affordable Housing Incentive Request
4. Planning Commission Resolution and draft minutes
5. Council Resolution No. 9263 (2001 Series)
6. Housing Element Table 5,Housing Construction Objectives
7. Affordable Housing Fund Status Summary
8. Draft Council Resolution
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Attachment 3
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March 2, 2009
City of San Luis Obispo
Community Development Department
919 Palm Street
San Luis Obispo, CA. 93401
Attn: Michael Codron
This application from Habitat for Humanity for San Luis Obispo County is to partner
with the City of San Luis Obispo to provide two simple, decent homes for very low-
income families at 1324 Phillips Lane. We are requesting the approval of a minor
subdivision to create two residential lots and$332,500.00 from existing affordable
housing funds to finalize the acquisition of the property.
HFHSLOCO is a 501(c) (3)non-profit organization, established as an affiliate of Habitat
for Humanity International in 1997. By utilizing partnerships with local governments,
churches,businesses and individuals, we have built homes in Paso Robles, Cambria, and
Atascadero. We are currently building in Grover Beach. Partnering with the City of San
Luis Obispo has been a goal.for many years.
Our program is unlike any other. Families are selected based upon.need, willingness to
partner and the ability to pay. From their required 500 hours of"sweat equity",to the
zero-interest loans we offer, families are given the opportunity to move beyond poverty.
We look forward to the opportunity this application represents. We believe changing
lives and improving local communities is a mutual goal. Please contact Penny Rappa,
our Executive Director or Jeff Dillon, from RRM Design, for additional information.
Sincerely,
President Paul Jagger
Habitat for Humanity for San Luis Obispo County
' > Attachment 4
RESOLUTION NO. 5521-09
A RESOLUTION OF THE SAN LUIS OBISPO PLANNING COMMISSION
RECOMMENDING APPROVAL TO THE CITY COUNCIL OF A PROPOSED MINOR
SUBDIVISION TO SPLIT ONE LOT INTO TWO, WITH EXCEPTIONS TO LOT SIZE,
LOT DEPTH, AND STREET YARD SETBACK STANDARDS
MS 23-09 (1324 PHILLIPS LANE)
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on
April 22, 2009, for the purpose of considering Application No. MS 23-09, a request by Habitat
for Humanity for approval of a minor subdivision to split one lot into two with exceptions to lot
size, lot depth, and street yard setback standards; and
WHEREAS, said public hearing was for the purpose of formulating and forwarding
recommendations to the City Council of the City of San Luis Obispo regarding the project; and
WHEREAS, notices of said public hearing were made at the time and in the manner
required by law; and
WHEREAS, the purpose of the minor subdivision is to allow for the construction of two
very-low-income, three-bedroom homes; and
WHEREAS, affordable housing projects that meet the threshold and affordability criteria
set forth in CEQA Guidelines Sections 15192 and 15194 are exempt from CEQA; and
WHEREAS, the Planning Commission has duly considered all evidence, including the
testimony of the applicant, interested parties, and the evaluation and recommendations by staff,
presented at said hearing.
BE IT RESOLVED, by the Planning Commission of the City of San Luis Obispo as
follows:
SECTION 1. Findings. The Planning Commission does hereby make the following
findings in support of the project and the proposed subdivision exceptions.
1. The design of the tentative parcel map is consistent with the General Plan because the
subdivision will provide for the construction of two small lots suitable for affordable
housing and the proposed project is consistent with the residential project objectives listed
in Land Use Element Policy 2.2.12.
2. The site is physically suited for the type and density of development allowed in the R-3
zone because the land is not sloping and the property can be developed as proposed with
only a minor setback exception that is consistent with the way other properties in the
neighborhood have been developed.
3. The design of the tentative map and the proposed improvements are not likely to cause
serious health problems, substantial environmental damage, or substantially and
PRI - I
Attachment 4
Planning Commission Resolution No. 5521-09
Page 2
unavoidably injure fish or wildlife or their habitat, because the site was previously
developed, is absent of any habitat areas or waterways, and is surrounded by similar
development.
4. The design of the subdivision will not conflict with easements for access through (or use of
property within) the proposed subdivision because the property is an existing parcel that is
being further subdivided and there are no easements recorded against the property.
5. It is impractical and undesirable, in this particular case, to conform to the strict application
of the Subdivision Regulations because the project is a small lot, affordable housing project
consisting of two lots, and constructing the proposed project in conformance with the strict
application of the regulations would necessitate the creation of a Homeowner's
Association, which is unnecessary because there are no common improvements proposed
that will need to be maintained.
6. The cost to the subdivider of strict or literal compliance with the regulations is not the sole
reason for granting the proposed exceptions because the proposed subdivision will create
two very-low-income units that are sold at a fixed price and, from the street, the proposed
lots will appear consistent with the development pattern of the neighborhood because they
are 50 feet wide and the improvements are designed to be in scale with the size of the lots.
7. The proposed exceptions will not be detrimental to the public health, safety, and welfare, or
be injurious to other properties in the vicinity because the project is a low-scale
development of two, single-family homes that will be permitted and inspected by the City's
Building Division and Public Works Department.
8. Granting the proposed exceptions is in accord with the intent and purposes of the
Subdivision Regulations and is consistent with the General Plan and with all applicable
specific plans or other plans of the City, in particular, the project is consistent with or
further the following policies and programs: Land Use Element Policy 2.2.12, Housing
Element Policy 3.3.4, Housing Element Policy 3.7.4 and Housing Element Policy 3.9.1.
Section 2. Action. The Planning Commission does hereby recommend to the City Council of
the City of San Luis Obispo approval of the proposed project, subject to the following conditions
of approval and code requirements, as noted.
1. The applicant shall enter into an affordability agreement with the City of San Luis Obispo,
insuring ongoing affordability for a minimum term of 30 years.
2. 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 structures shall be underground.
3. Any sections of damaged or displaced curb, gutter & sidewalk, or driveway approach must
be repaired or replaced to the satisfaction of the Public Works Director.
I fl
• - _ Attachment 4
Planning Commission Resolution No. 5521-09
Page 3
4. The existing curb ramps shall be altered or upgraded to comply with current City and ADA
standards. As a minimum, the ramp lip adjacent to the street surface shall be ground flush.
A minimum 4' landing shall be provided at the top of the ramp.
Code Requirements:
The following code requirements are included for information purposes only. They serve to give
the applicant a general idea of other City requirements that will apply to the project. This is not
intended to be an exhaustive list as other requirements may be identified during the plan check
process. The project is subject to all requirements in effect at the time of the building permit or
map vesting date.
1. A separate building permit shall be obtained for the upgrade, alteration, and/or relocation of
any on-site utilities. Any required utility alterations shall have all work completed and final
inspections approved to the satisfaction of the Building Official prior to recordation of the
map.
2. Any easements including but not limited to provisions for all public and private utilities,
access, drainage, common driveways, and maintenance of the same shall be shown on the
final map or recorded separately prior to map recordation if applicable.
Mapping Requirements
3. The subdivision map shall be recorded prior to final inspection approvals or occupancy of any
new unit.
4. All boundary monuments, lot comers and centerline intersections, BC's, EC's, etc., shall be
tied to the City's Horizontal Control.Network. At least two control points shall be used and
a tabulation of the coordinates shall be submitted with the final map or parcel map. All
coordinates submitted shall be based on the City coordinate system. A 3.5" diameter
computer floppy disk, containing the appropriate data compatible with Autocad (Digital
Interchange Format, DXF) for Geographic Information System (GIS) purposes, shall be
submitted to the City Engineer.
5. The final map, subdivision improvement plans, and specifications shall use U.S. Customary
Units (English Units) in accordance with the 2008 City Engineering Standards and
Standard Specifications.
6. The final map shall show and honor any easements that exist on the underlying parcels. No
easements are shown or proposed for extinguishment through this process.
7. Development plan submittals and the parcel map submittal shall include an updated soils
report. The report shall show and note compliance with the current California Building
Code (CBC). The report shall be referenced on the parcel map and development plans.
8. The county-assigned map number shall be confirmed by the applicant back to the City prior
to submittal of the final parcel map to the Public Works Department.
toyC-a-r
Attachment 4
Planning Commission Resolution No. 5521-09
Page 4
9. One 15-gallon street tree may be required for each 35 lineal feet of developed frontage.
The City Arborist shall approve the tree species, planting requirements, and whether the
street trees shall be planted in tree wells in the sidewalk area or behind the back of walk in
the front yard. Contact City Arborist Ron Combs at 781-7023 for specific questions or
requirements and to evaluate any existing trees.
Utilities
10. The plans shall show the water service from the water meter to the building it serves and a
note indicating what is to be done with the line (to be relocated, protected in place, etc.).
11. The existing sewer lateral is required to pass a video inspection before it will be allowed to
be reused. Most local plumbers are equipped to perform the video inspection for a nominal
fee. The City will assist by reviewing the video and making recommendations for repair or
replacement, as appropriate. All videotapes submitted to the City shall be clearly labeled
with the applicant's name and contact information, the project address, and the inspection
company's name and contact information.
On motion by Commissioner Meyer, seconded by Commissioner Draze, and on the following
roll call vote:
AYES: Commrs. Meyer, Draze, Singewald, Multari, Stevenson, Boswell, and Whittlesey
NOES: None
REFRAIN: None
ABSENT: None
The foregoing resolution was passed and adopted this 22nd day of April, 2009.
i
Doug Davi •on, Secretary
Planning Commission
61214 o�z
Attachment 4
DRAFT
SAN LUIS OBISPO
PLANNING COMMISSION MINUTES
April 22, 2009
ROLL CALL:
Present: Commissioners Michael Boswell, Michael Draze, Eric Meyer, Aidin
Singewald, Mary Whittlesey, Vice-Chairperson Michael Multari, and
Chairperson Charles Stevenson
Absent: None
Staff: Deputy Community Directors Doug Davidson and Kim Murry, Housing
Programs Manager Michael Codron, Associate Planner Tyler Corey,
and Recording Secretary Janet Miller
ACEPTANCE OF THE AGENDA:
The agenda was accepted as presented.
MINUTES: Minutes of March 25, 2009 were approved as presented.
Minutes of April 8, 2009 were approved as amended.
PUBLIC COMMENTS ON NON-AGENDA ITEMS:
There were no further comments made from the public.
PUBLIC HEARINGS:
1. 1324 Phillips Lane. MS 23-09: A minor subdivision to create two lots from one
with exceptions for lot size, lot depth; and exception to allow a 10-foot street yard on
Phillips Lane; R-3 zone; Habitat for Humanity, applicant. (Michael Codron)
Michael Codron, Housing Programs Manager; presented the staff report, recommending
the Planning Commission adopt a resolution which recommends that the City Council
approve the proposed minor subdivision with exceptions, based on findings and subject
to conditions which he outlined.
PUBLIC COMMENTS:
Erik Justesen, RRM Design Group, San Luis Obispo, spoke in support of the project.
Jeff Dillion, Project Architect, San Luis Obispo, spoke in the support of the project. He
presented slides to the Commission.
Penny Rappa, Habitat for Humanity, San Luis Obispo, spoke in support of the project.
She spoke on the behalf of Habitat for Humanity affordable housing projects in San Luis
Obispo.
- Attachment 4
Draft Planning Commission Minim.,
April 22, 2009
Page 2
Commr. Meyer requested clarification on the tax appraisal valuation. Penny Rappa
noted that the taxes were based on the sale closing cost.
Commr. Meyer requested clarification on the 30 year restriction. Penny Rappa replied
that the restriction made home ownership possible for the lower income.
Vallerie Steenson, San Luis Obispo, spoke in support of the project. She referenced
the letter that she sent to the Commission and Staff.
Jerry Rioux, San Luis Obispo, spoke in support of the project.
There were no further comments made from the public.
COMMISSION COMMENTS:
Vice-Chair Multari thanked Penny Rappa and all the people involved with the project.
Commr. Boswell voiced support for the project. He noted the City should craft its zoning
codes to allow future creativity of smaller lots for projects of this kind.
Chairperson Stevenson voiced support of the project. He thanked all those involved.
Mr. Stevenson noted that this project brought up the subject that small lots have the
opportunity for this type of project in the future. He discussed that not having a
homeowners association made this a more viable project.
There were no further comments made from the Commission.
On motion by Commr. Meyer, seconded by Commr. Draze to approve a resolution
recommending that the City Council approve the proposed minor subdivision with
exceptions, based on findings and subject to conditions
AYES: Comers. Michael Boswell, Michael Draze, Eric Meyer, Airlin Singewald,
Mary Whittlesey, Vice-Chairperson Michael Multari, and Chairperson
Charles Stevenson
NOES: None
RECUSED: None
ABSENT: None
The motion passed on a 7:0 vote.
2. City-wide. GPI 67-08: Amendments to various sections of the City's Zoning
Regulations; City of San Luis Obispo, applicant. (Tyler Corey)
Tyler Corey, Associate Planner, presented the staff report, recommending the Planning
Commission adopt a resolution which recommends that the City Council approve the
Negative Declaration of environmental impact (ER 67-08) and adopt the proposed
amendments to Title 17 (Zoning Regulations) of the Municipal Code, as submitted,
based on findings and subject to conditions which he outlined.
PP1-C q
Attachment
e
Attachment 5
RESOLUTION NO. 9253 (2001 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ESTABLISHING AWARD CRITERIA AND A REVIEW PROCESS FOR
ALLOCATING AFFORDABLE HOUSING FUNDS.
WHEREAS,the City Council adopted Ordinance 1348 (1999 Series)establishing
an Affordable Housing Fund for the collection and distribution of in-lieu housing fees to
promote affordable housing in San Luis Obispo; and
WHEREAS,as a result of the in-lieu fee payments to the City under the
Inclusionary Housing Ordinance,the City has a balance of approximately$400,000 in the
Affordable Housing Fund,and this fund is available to support affordable housing in San
Luis Obispo at the sole discretion of the City Council;and
WHEREAS,the City received requests by Judson Terrace Lodge and Sojourn
Services,Inc.for the use of$215,000 and$2.5,000,respectively,of Affordable Housing
Funds;and to evaluate these and future funding requests in a fair and timely manner,
Council wishes to establish award criteria and a review process for the Affordable Housing
Fund;and
WHEREAS,the City Council held a meeting on December 4,2001 to consider -
possible award criteria that balance the need to provide a fair, open and timely funding
award process with the desire to maintain funding flexibility to address local housing needs
and opportunities;
NOW,THEREFORE,BE IT RESOLVED by the Council of the City of San Luis
Obispo that based on its deliberations,public comments,the staff report,and on State law,
the following:
SECTION 1. Affordable Housing Fund Award Criteria. The City Council
establishes the following criteria for evaluating requests for use of the Affordable Housing
Fund-
1.
und1. Eligibility. Use of the Affordable Housing Fund(AHF)for the requested
purpose will increase or improve the City's affordable housing inventory and
promote General Plan policies regarding housing.
2. Need. There exists a substantial or overarching need for the type of housing to be
assisted.
3. Suitability. The project to be assisted is appropriate for its location,both in
terms of land use and design.
4. Timing. The project would be better serve the City's needs if it were built
immediately as opposed to later.
R 9263
i
4
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Attachment
Resolution No.9263 (v J1 Series) AttaChmen 5
Page 2
5.Financial Effectiveness. But for the requested assistance,the project would not
be economically feasible;or AHF funding"leverages"significant additional funding
from other sources.
6. Readiness. The project has all necessary City approvals and is ready to proceed.
SECTION 2. Use of Award Criteria. The Council will apply the above criteria
when evaluating funding requests. Requests that most closely meet the criteria will be given
the most favorable consideration in allocating Affordable Housing Funds. Under no
circumstances is Council obligated to award Affordable Housing Funds. The decision
whether to allocate funds and how much is at the sole discretion of the City Council whose
decision is final.
SECTION 3. Review Process. The Community Development Director shall be
responsible for processing requests for use of Affordable Housing Funds. Such requests
shall usually be considered concurrent with review of the City's Community Development
Block Grant Program.The Director is authorized to bring urgent funding requests to the
Council at any time,irrespective of the above review cycle.
SECTION 4. Funding Agreements. Recipients of Affordable Housing Funds
shall be required to execute an agreement with the City describing the purpose and terns of
funding. The project or program to be funded shall meet the City's Affordable Housing
Standards,including the requirement for an affordability term of at least thirty(30)years,
and City equity participation in the project where feasible and appropriate. The City
Administrative Officer is authorized to execute such agreements for the City.
Upon motion of Council Member Schwartz,seconded by Vice Mayor Marx,and on the
following roll call vote:
AYES: Council Members Ewan,Mulholland,Schwartz,Vice Mayor Marx,
and Mayor Settle
NOES: None
ABSENT: None
The foregoing resolution was adopted this 4m day of December 2001
Mayor Allen Settle
A
7:
Lee Price,City Clerk
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Attachment 6 7
Fiscal Status of Affordable Hou;..ag Fund A#arhFnemt 7
Revenues, Expenditures and Changes in Fund Balance
Revenues Expenditures Fund Balance
Fiscal Year In-Lieu Fees Interest Total Note 2 Beginning Ending
2000-01 (Note 1) 193,700 8,200 201,900 201,900
2001-02 464,900 20,000 484,900 201,900 686,800
2002-03 747,800 28,300 776,100 (215,000) 686,800 1,247,900
2003-04 60,500 8,500 69,000 (30,000) 1,247,900 1,286,900
2004-05 323,300 32,500 355,800 (30,000) 1,286,900 1,612,700
2005-06 1,863,700 68,500 1,932,200 1,612,700 3,544,900
2006-07 627,200 160,500 787,700 (530,000) 3,544,900 3,802,600
2007-08 682,400 155,600 838,000 (630,000) 3,802,600 4,010,600
2008-09 371,500 183,700 555,200 34,400 4,010,600 4,531,400
Cumulative Total $5,335,000 $665,800 1 $6,000,800 $1,469,400 $4,531,400
Commitments
Housing Authority, Humbert Project* 109,900
Laurel Creek BEGIN funds 10 units 700,000
Total Commitments 10 units $809,900
Net Available for New Programs at February 28,2009 $3,721,500
Current Req uests/P roposed-Al locations
Habitat for Humanity 2 units $332,500
Wineman Hotel LLC 23 units $1,000,000
Villages at Broad (ROEM Development) 40 units $1,000,000
Judson Terrace Homes $45,000
AIDS Support Network 1 unit $82,780
SLO County Housing Trust Fund $30,000
Total Proposed Allocations 66 units $2,490,280
Net Available for New Programs if All Current Requests Approved $1,231,220
NOTES
1. 2000-01 is the first year that in-lieu fees were received.
2. Expenditure Summary To-Date
PurposeYear
2002-03 Judson Terrace Lodge 32 units 215,000
2003-04 Operating Support: SLO County Housing Trust Fund 30,000
2004-05 Operating Support: SLO County Housing Trust Fund 30,000
2006-07 People's Self-Help Housing:Villas at South Higuera 38 units 500,000
2006-07 Operating Support:SLO County Housing Trust Fund 60,000
(Two-Year Commitment)"
2007-08 Housing Authority, Humbert Project 21 units 600,000
2008-09 First time home buyers'program 1 unit 34,400
Total Expenditure 92 units 1,469,400
Originally allocated for North Chorro project
*" $30,000 of these funds were disbursed in 2007-08.
Attachment 8
City Council Resolution No. (2009 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING A MINOR SUBDMSION TO CREATE TWO LOTS FROM
ONE,WITH EXCEPTIONS TO CITY STANDARDS FOR LOT SIZE,LOT
DEPTH AND STREET YARD SETBACK,AND AFFORDABLE HOUSING
INCENTIVES INCLUDING A DENSITY BONUS AND AFFORDABLE
HOUSING FUND AWARD
MS 23-09 (1324 Phillips)
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on April 22,
2009 for the purpose of considering Application No. MS 23-09, a request by Habitat for
Humanity for approval of a minor subdivision to split one lot into two with exceptions to lot size,
lot depth and street yard setback standards and affordable housing incentives including a density
bonus and affordable housing fund award; and
WHEREAS, said public hearing was for the purpose of formulating and forwarding
recommendations to the City Council of the City of San Luis Obispo regarding the project; and
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public
hearing on April 22, 2009, for the purpose of formulating a recommendation on the project to the
City Council, and determined that the project was consistent with the General Plan and that the
proposed exceptions are justified based on specific site conditions and the compatibility of the
project with neighboring properties and development; and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law; and
WHEREAS, the purpose of the minor subdivision is to allow for the construction of two
very-low income, three-bedroom homes consistent with the City's Housing Construction
Objectives (Housing Element Table 5); and
WHEREAS, affordable housing projects that meet the threshold and affordability criteria
set forth in CEQA Guidelines Sections 15192 and 15194 are exempt from CEQA; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff and the
Planning Commission,presented at said hearing.
BE IT RESOLVED,by the City Council of the City of San Luis Obispo as follows:
SECTION 1. Findings. The City Council does hereby make the following findings in
support of the project and the proposed subdivision exceptions.
1. The design of the tentative parcel map is consistent with the General Plan because the
subdivision will provide for the construction of two small lots suitable for affordable
d9m 1 -a 1
City Council Resolution No. ( ..,09 Series) Attachment 8
Paget
housing and the proposed project is consistent with the residential project objectives
listed in Land Use Element Policy 2.2.12.
2. The site is physically suited for the type and density of development allowed in the R-3
zone because the land is not sloping and the property can be developed as proposed with
only a minor setback exception that is consistent with the way other properties in the
neighborhood have been developed.
3. The design of the tentative map and the proposed improvements are not likely to cause
serious health problems, substantial environmental damage, or substantially and
unavoidably injure fish or wildlife or their habitat, because the site was previously
developed, is absent of any habitat areas or waterways, and is surrounded by similar
development.
4. The design of the subdivision will not conflict with easements for access through (or use
of property within) the proposed subdivision because the property is an existing parcel
that is being further subdivided and there are no easements recorded against the property.
5. It is impractical and undesirable, in this particular case, to conform to the strict
application of the Subdivision Regulations because the project is a small lot, affordable
housing project consisting of two lots and constructing the proposed project in
conformance with the strict application of the regulations would necessitate the creation
of a Homeowner's Association, which is unnecessary because there are no common
improvements proposed that will need to be maintained.
6. The cost to the subdivider of strict or literal compliance with the regulations is not the
sole reason for granting the proposed exceptions because the proposed subdivision will
create two very-low income units that are sold at a fixed price and, from the street, the
proposed lots will appear consistent with the development pattern of the neighborhood
because they are 50 feet wide and the improvements are designed to be in scale with the
size of the lots.
7. The proposed exceptions will not be detrimental to the public health, safety and welfare,
or be injurious to other properties in the vicinity because the project is a low-scale
development of two, single-family homes that will be permitted and inspected by the
City's Building Division and Public Works Department.
8. Granting the proposed exceptions is in accord with the intent and purposes of the
Subdivision Regulations, and is consistent with the General Plan and with all applicable
specific plans or other plans of the City, in particular, the project is consistent with or
finther the following policies and programs: Land Use Element Policy 2.2.12, Housing
Element Policy 3.3.4,Housing Element Policy 3.7.4 and Housing Element Policy 3.9.1.
Section 2. Action. The City Council does hereby approve the proposed project, subject
to the following conditions of approval and code requirements, as noted.
�� 1-3o
City Council Resolution No. k_,109 Series) Attachment 8
Page 3
1. The applicant shall enter into an affordability agreement with the City of San Luis
Obispo, insuring ongoing affordability for a term of 30 years.
2. 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 structures shall be underground.
3. Any sections of damaged or displaced curb, gutter & sidewalk, or driveway approach
must be repaired or replaced to the satisfaction of the Public Works Director.
4. The existing curb ramps shall be altered or upgraded to comply with current City and
ADA standards. As a minimum, the ramp lip adjacent to the street surface shall be
ground flush. A minimum 4' landing shall be provided at the top of the ramp.
Code Requirements:
The following code requirements are included for information purposes only. They serve to give
the applicant a general idea of other City requirements that will apply to the project. This is not
intended to be an exhaustive list as other requirements may be identified during the plan check
process. The project is subject to all requirements in effect at the time of the building permit or
map vesting date.
1. A separate building permit shall be obtained for the upgrade, alteration, and/or relocation
of any on-site utilities. Any required utility alterations shall have all work completed and
final inspections approved to the satisfaction of the Building Official prior to recordation
of the map.
2. Any easements including but not limited to provisions for all public and private utilities,
access, drainage, common driveways, and maintenance of the same shall be shown on the
final map or recorded separately prior to map recordation if applicable.
Mapping Requirements
3. The subdivision map shall be recorded prior to final inspection approvals or occupancy of
any new unit.
4. All boundary monuments, lot comers and centerline intersections, BC's, EC's, etc., shall
be tied to the City's Horizontal Control Network At least two control points shall be
used and a tabulation of the coordinates shall be submitted with the final map or parcel
map. All coordinates submitted shall be based on the City coordinate system. A 3.5"
diameter computer floppy disk, containing the appropriate data compatible with Autocad
(Digital Interchange Format, DXF) for Geographic Information System (GIS) purposes,
shall be submitted to the City Engineer.
5. The final map, subdivision improvement plans, and specifications shall use U.S.
Customary Units (English Units) in accordance with the 2008 City Engineering Standards
and Standard Specifications.
6'� t-31
City Council Resolution No. (..,J9 Series) Attachment 8
Page 4
6. The final map shall show and honor any easements that exist on the underlying parcels.
No easements are shown or proposed for extinguishment through this process.
7. Development plan submittals and the parcel map submittal shall include an updated soils
report. The report shall show and note compliance with the current California Building
Code(CBC). The report shall be referenced on the parcel map and development plans.
8. The county-assigned map number shall be confirmed by the applicant back to the City
prior to submittal of the final parcel map to the Public Works Department.
9. One 15-gallon street tree may be required for each 35 lineal feet of developed frontage.
The City Arborist shall approve the tree species, planting requirements, and whether the
street trees shall be planted in tree wells in the sidewalk area or behind the back of walk
in the front yard. Contact City Arborist Ron Combs at 781-7023 for specific questions or
requirements and to evaluate any existing trees.
Utilities
10. The plans shall show the water service from the water meter to the building it serves, and
a note indicating what is to be done with the line (to be relocated,protected in place, etc.).
11. The existing sewer lateral is required to pass a video inspection before it will be allowed
to be reused. Most local plumbers are equipped to perform the video inspection fora
nominal fee. The City will assist by reviewing the video and making recommendations
for repair or replacement, as appropriate. All videotapes submitted to the City shall be
clearly labeled with the applicant's name and contact information,the project address,
and the inspection company's name and contact information._
Section 3. Affordable Housing Incentives. The City Council does hereby a 45%
density bonus and an award from the Affordable Housing Fund in the amount of$332,500 for
property acquisition,based on the following findings and subject to the same conditions and code
requirements listed above.
Eligibility: The proposed HFH project is eligible for Affordable Housing Fund assistance
because it will create two, very-low income, owner-occupied dwellings.
Need: The City's Housing Element includes quantified objectives for housing construction at
various income levels. Because of the deep subsidies required for very low-income housing, the
vast majority of units constructed in the City for this income level will be rentals. However,
Housing Element Table 5, New Housing Construction Objectives, does establish a target of 20
units for single-family homes at the very-low income level. The proposed two units would bring
the City's total for owner-occupied,very-low income units to four.
Suitability. As recommended by the Planning Commission,the proposed homes are suited to the
project site, the project is consistent with the development pattern of the neighborhood, and, it
will not harm the general health, safety or welfare of those living or working on the site or in the
project vicinity.
�Hf- 3d-
City Council Resolution No. (,..,J9 Series) Attachment 8
Page 5
Timing: The timing of the award is critical because the funds will be used for property
acquisition and HFH is currently in escrow to complete the purchase.
Financial Effectiveness: The financial effectiveness of the award is substantial because it
leverages other funds, including donations of goods and services, that will be used by HFH to
complete construction of the homes.
Readiness: With City Council approval of the Planning Commission's recommendation, the
project will have all necessary entitlements and will be ready to proceed.
Upon motion of , seconded by
and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 19th day of May, 2009.
Mayor David F. Romero
ATTEST:
Audrey Hooper
City Clerk
APPROVED AS TO FORM:
Jo . Lowell
City Attorney
�'�! ( -33
Page 1 of 1
Council,SloCity
From: Penny Rappa [execdir@hfhsloco.org] Sent: Thu 5/14/2009 11:37 AM
To: Council, SloCity
Cc: Elaine Genasci
Subject: Habitat for Humanity Agenda Item
Attachments:
Honorable Mayor and Council Members,
The Phillips Lane project we met and discussed with you is on your agenda Tuesday, May 19th. Please contact
me at 782-0687 or by email with any questions or concerns. We are very excited about the opportunity to build
in San Luis Obispo. This has been a goal sine our affiliate first was organized.
Pevwvy Rappa,
Execs Vve/Director
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