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HomeMy WebLinkAbout05/19/1992, 4A - CONSIDERATION OF A REQUEST TO GRANT A WATER ALLOCATION TO THE VILLA ROSA PROJECT. �IIIN�II�IIIII�III�IIUIIIr MEETING DATE: city o Uunui� san LAs oBtspo 5-11 -1Z COUNCIL AGENDA REPORT Imo"' NUMBER: FROM: Arnold Jonas, Community Development Director PREPARED BY: Glen Matteson, A Associate Planner SUBJECT: Consideration of a request to grant a water allocation to the Villa Rosa project. CAO RECOMMENDATION: (A) By motion, deny the request to make available a water allocation for the Villa Rosa project at this time, consistent with previous Council direction explained in the companion staff report. (B) Decide whether to introduce an ordinance broadening the definition of affordable residential development so Villa Rosa and any similar projects would be eligible for any affordable housing reserve which may become available in the future. DISCUSSION Situation Stan Bell is asking the City to make available water allocations so he can build at least the 41 dwellings in the proposed 85- unit Villa Rosa project which would have limits on prices or price increases (attached letter) . If the Council wants to do so, it must adopt an ordinance changing the Water Allocation Regulations' definition of affordable housing; it must also modify, or not adopt, the ordinance recommended in the companion staff report which carries out recent Council direction to not make available allocation reserves at the end of mandatory conservation. Staff is offering ordinance language which would accommodate alternative actions. Explanation The Council has approved Villa Rosa, a residential condominium project which would include some dwellings to be sold at below- market prices. While the prices of some dwellings would be controlled for up to 12 years --possibly longer with Housing Authority ownership-- none are guaranteed to be controlled for a 30-year period which, among other criteria, qualifies a project as an affordable housing project for purposes of density incentives (Municipal Code Chapter 17.90) and, by extension, a water allocation (Chapter 17.89) . Further, the Council on April 21 directed that, upon the end of mandatory conservation, water allocations which have been held in reserve will not be made available for construction permit applications, regardless of affordability. (A companion report on this agenda includes ordinance changes in response to that direction. ) 4A -_I city of San t,_ o81Spo A COUNCIL AGENDA REPORT By May 1, retrofitting had been completed to enable 17 dwellings to be built; this leaves 68 dwellings (10.6 acre-feet allocation) to complete the Villa Rosa project. (All the indicated acre- foot quantities reflect use of an on-site well for landscape irrigation; quantities would be higher without the well. ) The currently effective Water Allocation Regulations provide 27.85 acre-feet for affordable housing projects upon the conclusion of mandatory water conservation. i If Council takes the action recommended in the companion staff ' report, as explained in that report, probably there will be no allocations available until 1996 or 1997, when it is anticipated that substantial allocations will become available. In the i meantime, projects will have to- retrofit to avoid waiting. ! The amount of properties available for retrofitting has diminished as retrofits have been completed, but many remain. ' Staff believes there are sufficient retrofitting opportunities to allow completion of the Villa Rosa project, but pursuing them will delay the project and add to its development costs, in comparison with having allocations available. I i Environmental review j Staff has determined that the recommended action and any of the alternatives listed below need not undergo additional environmental review. The recommended and alternative ordinance provisions would be categorically exempt as minor changes to land-use limitations. The 1988 Environmental Impact Report (EIR) i for the Water Allocation Regulations evaluated making no water or a substantial amount of water available to development. Circumstances have not changed significantly since the Council i certified that EIR. i I OTHER DEPARTMENT COMMENTS ` The Utilities Director concurs with the recommended action. ALTERNATIVES I 1. The Council may approve the request by introducing ordinance language which would make allocations available only for the controlled-price or "equity-sharing" dwellings in the Villa Rosa project, through changing the definition of affordable residential projects, leaving water in the affordable residential reserve, and establishing a cut-off date for applications (attached Exhibit A) . If the Council introduces, and at a following meeting adopts, ordinances making water allocations available to affordable residential development under the revised definition, Council would also 4A-� city o� San t, ~3 OBISpo COUNCIL AGENDA REPORT adopt a resolution making the required determination that Villa Rosa qualifies as an affordable housing project for water allocation purposes. 2 . The Council may make available allocations for the entire Villa Rosa project, or for other projects, as outlined in the companion staff report. 3 . The Council may broaden the definition of affordable residential projects so that Villa Rosa and similar projects which may be proposed in the future could be eligible for any water allocations which become available (a portion of the attached Exhibit A) . 4. The Council may continue action. I RECOMMENDATION � I (A) By motion, deny the request to make available a water allocation for the Villa Rosa project at this time, consistent with previous Council direction explained in the companion staff report. ' (B) Decide whether to introduce an ordinance broadening the ! I definition of affordable residential development so Villa Rosa and any similar projects would be eligible for any affordable housing reserve which may become available in the future. ATTACE24ENTS i Draft ordinance with legislative draft exhibit allowing individual affordable housing determinations and making available an allocation for Villa Rosa i Letter from Crawford Multari & Starr I I I gmH: VRWTR-CC.WP I - I 4A-3 ORDINANCE NO. (1992 SERIES) AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AMENDING THE WATER ALLOCATION REGULATIONS CONCERNING AFFORDABLE HOUSING DEVELOPMENTS WHEREAS, the City Council has held a hearing to consider appropriate provisions for allocating water; and WHEREAS, the City Council finds that the proposed provisions are consistent with the general plan, in particular the Housing Element and the Water and Wastewater Management Element; and WHEREAS, the Community Development Director has determined that this amendment is categorically exempt from environmental review as a minor change in land-use limitations, in accordance with the California Environmental Quality Act and the City' s Environmental Impact Procedures and Guidelines; and WHEREAS, the proposed amendment promotes the public health, safety and general welfare; BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. The Council determines that the amendment is categorically exempt from further environmental review as a minor modification to land use regulations. SECTION 2. Chapter 17.89 of the Municipal Code is hereby amended as fully contained in the attached Exhibit A. included in this ordinance by reference. SECTION 3 . A summary of this ordinance, approved by the City Attorney, together with the votes for and against, shall be published once, at least five (5) days prior to its final passage, in the Telegram-Tribune, a newspaper published and circulated in this city. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. A copy of the full text of this ordinance shall be on file in the office of the City Clerk on and after the date following introduction and passage to print, and shall be available to any interested member of the public. 4A-4 Ordinance No. (1992 Series) Water Allocation Regulations amendment Page 2 INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at its meeting held on the day of 1992 , on motion of , seconded by and on the following roll call vote: AYES: NOES: ABSENT: Mayor ATTEST: City Clerk APPROVED: City Administrative Officer rn Community De 1 pment Director Utilities Director gmH: wax-OxDS.WP qA-5 "Villa Rosa" amendment EXHIBIT A WATER ALLOCATION REGULATIONS (Legislative Draft - amended parts only are shown) 17.89. 020 Definitions. As used in this chapter, the following terms shall have the indicated meanings: A. "Affordable residential development" means a development having at least twenty-five percent of total dwellings affordable to low-income or moderate-income residents, as provided in Chapter 17. 90 of this Code, .........:....: .. .:.......... ar:>:€:a:;:€> eYe oilmen. ..n v vL'e:.:::ii:.!i pbi:?::v..S.:y.ii:i.iY..i:'n.....;.'F.'.i'v:(OY'.r iiiii::.Y.r.::.::..)iY..i::�.i••:n:?.i}5;y:.::.i..i''Y.Oi:y:•nMi:!?di i:�'vl+.:; ..:i :.i:.i'::::...:..:. ?vvrvN:,y' 3CcvrIg Substantia y etuivalent housing oppcsrtunities,. E G1 5 «L Drum. v: t?pt3 ? r'.. C#jar+kS� 1x1 G d t X31 .0 .. .. T...%Mr L @ 133C3s, .aS @3`i[t3h@d':.`13 S@ 1t :C{3#1t3Ci1 :... . CYl t ... .. .. ..... .....n.....m ... .::...a... ::..VJi:.:i.i:niii ii'i::'.iiY..i:/:?i'"'ii+��:^i:i:..:::i:`.i.••i:!4ii::.:Ni:GY::::ii:.Y:'iiiL�^iiii:!!; :i%"iSY:;: .......i'.H:..i:n..����:f. �i ! .:.iil:ii':..i::.:'.::........ . :..,.i;. :ts:>:: et ra iat he::€ csun :il;»<ma:.;:: s: ; .uA-Al , tath�nx4prct ha`v�ng doth >mart'.: ir;3e1 anc i .ax .. . \;i4 .................v.............................n..........................n . ...... ..........%::X]:.:..:.:e:. t.3....vu .:.:. 17.89.050 Allowed water-use increases. A. General reserve categories The following general reserve categories are created: general residential, affordable residential, nonresidential (see Section 17.89 . 020 for definitions) . }1 {1} Initial reserve amounts: Upon July 1, 1988 19:'.912`, the reserves shall have the following amounts. (a) Residential development: 1GI. 9 U. acre-feet. b Affordable residential development 17 . 9 21 5z ( ) acre-feet. c Nonresidential development: 49. 9 0 acre-feet. ( ) P 17.89. 060 Procedure for assigning water allocations. A. Water shall be allocated from the appropriate available genera-1 reserves, in the order complete construction-permit applications are received, until the next eligible application would deplete the appropriate reserve category. Applications shall then be held, with assignment of any future reserve amount in the order complete construction permit applications have been received. Water shall be _, , ___t_d frem she spee= al reserve eategery zeeelved, unless the eeunell by reseliatlen establishes anether manner ef assigning = L=- - - -Lo B. Total water allocations frem the general eategeries e# mea shall not exceed a two percent increase in the then-current July 1 safe annual yield during any year from July 1 to June 30. I , 3988 , threeElit Oume 39, i9sgthis limit shall be 147. 1 were `--t. ) C. Affordable heusing re:'TA eT%tEU applications shall be allocated water from the ejen."e-all residential category until that reserve is exhausted, after which such applications shall be eligible for allocations from the affordable he usine reserve. `tal``sa ' <€€> 3Tck"e""als>: oz n<„,;: ;; ac'atZE ons exceeds:>Ac3:t.:::,.? ater>€:>use €> :aPo'=3a1.e::.:re.s> 'r3ea° >!<al.i y.:>.... ......:. a. . .. .e>:.. s . ra:.:: s>< ;>Ya ;€ 'ev 'd`''>aa d scree unary lazsnang approvals b2f© 9 �7t11 ?` : . 1192 During any July the City Council may reassign all or part of any unused reserve from the affordable residential category to the general residential category, upon determining that there is no foreseeable need for the amount to be reassigned. 9M G:VRWTR-XA.WP i L4A-7 Crawford Multari & Starr plannina architecture public policy � Y March 30, 1992 Mayor Dunin and City Council ��«�® City of San Luis Obispo 990 Palm Street can Luis Obispo, CA 93403 MAR 3 0 192 CITY COUNCIL Dear Mayor Dunin and Council Members, SAN LUIS OBISao, CA First of all, we would like to thank you again for your support of the Villa Rosa housing project. Our construction and engineering plans are currently being rechecked and we hope to begin work on the first block of units shortly. We continue to believe that this is an innovative approach to bringing quality homes within reach of residents with modest incomes. You will be conducting your annual review of the water allocation situation shortly. You may recall that you have set aside a limited amount of water for low and moderate income housing projects. According to your regulations, this set aside could not be allocated while rationing was in effect. Now that the community no longer is on water rationing, this small amount of water can be allocated to affordable housing projects. We proposed in the Villa Rosa project that 41 units would be offered at various discounts "below market rate" so that persons with modest incomes could purchase them. In approving Villa Rosa, you required that at least 25 of these "below market rate" units must be affordable to households with low or moderate incomes as defined by the City and the state. (There may be more, of course, this was the minimum in those income categories.) Thus, Villa Rosa would appear to be eligible to use the affordable housing set aside for the water needs of at least the 25 units which will be for households which meet the formal definition of "low or moderate income." There is, however, one impediment. The regulations as written also require that the units have resale restrictions for at least 30 years. You may recall that our units do have resale restrictions based on a sliding scale: the bigger the discount, the longer the resale controls stay in effect. Our resale controls are adminstered by the Housing Authority and include a "recapture" provision through which 20% of all profit from sales goes to the Housing Authority for additional low income housing. However, in no case do the controls extend for 30 years. 4A-8 641 Higuera St., Suite 202 San Luis Obispo, CA 93401 (8 05) 541-5848 • Fax (.805) 5-',:9260 Villa Rosa Water AIIL _ .lion Page 2 Aside from the length of time for the resale controls, these units are otherwise eligible for the water you reserved for affordable housing projects. We have done sufficient retrofits to begin the first buildings, but using the water you have set aside for affordable housing would save us considerable time and money as we construct the other buildings in the project. Therefore, we respectfully request that you consider modifying the water allocation regulations to allow at least the tow and moderate income units in Villa Rosa to be eligible for the affordable housing water allocation. Please ask staff to let us know if you are willing to consider this request, and if so, when your discussion will be held. Thank you again for your support during this process. If you have questions, please call me, 6-1 Star, ar Elizabeth Sell. Sincerely, � Z ,0001'ov� Michael Multari oc: Stan and Elizabeth Bell John Dunn Arnold Jonas Crawford Multarl & Starr planning • architecture • public policy 14A -9