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HomeMy WebLinkAboutRES PC 2013 589 2013 0924 RESOLUTION NO. PC-2013-589 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MOORPARK, CALIFORNIA, RECOMMENDING TO THE CITY COUNCIL APPROVAL OF AMENDMENT NO. 1 TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MOORPARK AND SHEA HOMES, LIMITED PARTNERSHIP FOR TENTATIVE TRACT MAP NO. 5425 TO ADJUST THE AFFORDABLE HOUSING REQUIREMENT AND FINDING THE PREVIOUSLY ADOPTED MITIGATED NEGATIVE DECLARATION APPLICABLE WHEREAS, on April 6, 2005, the Moorpark City Council adopted Ordinance No. 313 approving a Development Agreement with Shea Homes, Limited Partnership for Tentative Tract Map 5425, on approximately 15 acres of land south of Los Angeles Avenue between Spring Road and Millard Street; and WHEREAS, Section 15.40.120 of the Moorpark Municipal Code establishes procedures for the amendment of a Development Agreement; and WHEREAS, on September 4, 2013, the City Council adopted Resolution No. 2013-3214, directing the Planning Commission to study, hold a public hearing, and provide a recommendation to the City Council on a proposed amendment to the Development Agreement with respect to the affordable housing requirement; and WHEREAS, at its meeting of September 24, 2013, the Planning Commission considered the agenda report and any supplements thereto and written public comments; opened the public hearing and took and considered public testimony both for and against the proposal; and reached a decision on this matter. NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF MOORPARK, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. ENVIRONMENTAL DOCUMENTION: On April 6, 2005, the City Council approved Resolution No. 2005-2303, adopting a Mitigated Negative Declaration for the project, including the General Plan Amendment, Zone Change, Residential Planned Development Permit, Tentative Tract Map, and Development Agreement. The proposed amendment to the Development Agreement, as a change only to the affordable housing provisions, would not result in any physical change to the previously approved project. In addition, there are no substantial changes to the circumstances under which the project would be undertaken, in that the project is on the same site, with the same anticipated surrounding uses and infrastructure as considered in the previously adopted Mitigated Negative Declaration, and the project with the Development Agreement as amended, would not result in new significant effects or substantially more severe significant effects. Finally, there is no new information of Resolution No. PC-2013-589 Page 2 substantial importance, which was not known and could not have been known at the time the previous Mitigated Negative Declaration was adopted that shows one or more new significant effects or substantially more severe significant effects from the project with the proposed amendment to the Development Agreement. Therefore, the Planning Commission finds the previously adopted Mitigated Negative Declaration is applicable and no subsequent environmental documentation is needed. SECTION 2. PLANNING COMMISSION RECOMMENDATION: The Planning Commission recommends to the City Council approval of a proposed Ordinance amending the Development Agreement by and between the City of Moorpark and Shea Homes, Limited Partnership as shown in Exhibit A, attached. SECTION 3. Filing of Resolution: The Community Development Director shall cause a certified resolution to be filed in the book of original resolutions. The action of the foregoing direction was approved by the following vote: AYES: Commissioners Hamous, Landis, Vice Chair Groff, and Chair Gould NOES: None ABSTAIN: None ABSENT: Commissioner Di Cecco PASSED, AND ADOPTED this 24th day of September, 2013. 477 Diana S. Gout., Chair / / l'i David A. Bobardt, Community Development Director Exhibit A- Draft Amendment to Development Agreement Resolution No. PC-2013-589 Page 3 Exhibit A Amendment to Section 6.9 of Development Agreement Between City of Moorpark and Shea Homes, Limited Partnership for Tentative Tract Map No. 5425 Section 6.9 of the Development Agreement is amended as follows: 6.9. Developer shall provide eighteennne (018) three (3) bedroom and two bath single family attached units with a minimum of 1,600 square feet to be sold to buyers who meet the criteria for low income (80 percent or less of median income ; _ - -- - _-_ __ • - ' e _ _- • lees of media i i .ce e). Developer shall also pay a two hundred fifty thousand dollars ($250,000.00) in-lieu fee to satisfy the requirement for providing moderate income units the Project. Payment of the in-lieu fee will be made by two methods. The first ; and five (5) three (3) - ,= " - - - - -- - -- - - - - - - - _ ---- -- - . - - - - -- ' - - - - - " "e'- ' -- •- one hundred twenty-three thousand dollars ($123,000.00) of the in-lieu fee shall be used by the Developer to increase the number of affordable low income units in the Project from seventeen (17) to eighteen (18) units. The remaining one hundred twenty-seven thousand dollars ($127,000.00) will be paid to the City. All single family attached units shall include a standard size two-car garage with roll-up garage door and a minimum driveway length of eighteen (18) feet measured from the back of sidewalk, meet minimum setback requirements of RPD 2003-02, include concrete roof tiles, and other amenities provided in the market rate housing of this Project (e.g., air conditioning/central heating, washer/dryer hookups, garbage disposal, built-in dishwasher, concrete driveway, automatic garage door opener). The aforementioned twenty eighteen (1820) units are collectively referred to as the affordable housing units or affordable units. Developer and City may upon mutual agreement reduce the number of required affordable units from eighteen (18) to sixteen (16), contingent on both of the following: 1. Developer purchases APN 506-0-020-240 (adjacent to Tract 5425) from City and constructs two (2) affordable units consistent with Plan 1A in Tract 5425 to be sold in the same manner as provided in this Section 6.9. Resolution No. PC-2013-589 Page 4 2. Developer offers City an opportunity to purchase two (2) Plan 1A units in Tract 5425 for then market price not to exceed $400,000 for each unit. These two (2) units shall be provided all the same features and amenities of the other affordable units in Tract 5425 consistent with this Section 6.9. Developer further agrees that it has the obligation to provide the required number of affordable housing units as specified above regardless of the cost to acquire or construct said housing units. Developer further agrees that City has no obligation to use eminent domain proceedings to acquire any of the required housing units and that this subsection 6.9 is specifically exempt from the requirements of subsection 7.2 of this Agreement. Prior to recordation of the first final Tract Map for this Project, the parties agree to execute a Purchase and Sale Agreement which further sets forth the Developer's obligations of this subsection 6.9. and City's obligations per subsection 7.7. The Purchase and Sale Agreement shall be in the form attached hereto as Exhibit "C". The Developer agrees to pay all City costs for preparation of the Purchase and Sale Agreement and its implementation and administration through the sale and occupancy of the last of the twenty-(20)-affordable housing units. The Developer agrees that the intent of this subsection 6.9. and the Purchase and Sale Agreement is to provide the twenty (20) affordable housing units consistent with applicable State and Federal laws and that said units remain affordable for the longest feasible time. Developer further agrees that the City at its sole discretion will make all decisions pertaining to the selection of eligible first time home buyers and all requirements placed on the sale of the twenty (20) affordable housing units to said buyers. The difference between the initial purchase price by a qualified buyer and market value shall be retained by the City as a second deed of trust. The actual initial purchase price (Affordable Sales Price) paid by a qualified buyer, market value, buyer eligibility, resale restrictions, equity share and second trust deed provisions, and any other items determined necessary by the City will be approved by the City Council in its sole and unfettered discretion prior to or at such time as qualified buyers are selected to purchase the affordable housing units. All units shall meet the criteria of all applicable State laws to qualify as newly affordable to moderate income,low income persons (in the quantity as specified in this Agreement) to satisfy a portion of the City's RHNA obligation and the Moorpark Redevelopment Agency's affordable housing goals. None of the Resolution No. PC-2013-589 Page 5 affordable units required by this Agreement shall duplicate or substitute for the affordable housing requirement of any other developer or development project. All subsequent approvals required of City under this subsection 6.9 shall be made at City's sole discretion. If any conflict exists between this Agreement and the Purchase and Sale Agreement or the conditions of approval for Tract Map No. 5425 and/or RPD No. 2003-02, then the provision providing the City the most favorable language for assisting eligible first time home buyers who - - - -- - • e -- - - -, - - - - -- •- shall prevail. Developer agrees to provide the same home warranties associated with the market rate units in the same project as the affordable units for the maximum time required by State law, but in no event less than ten (10) years. Developer agrees that all such warranties shall inure to the benefit of and be enforceable by the ultimate occupants of the moderate income, low income and very low income units, and that all warranties by subcontractors and suppliers shall inure to the benefit of and be enforceable by such occupants. The qualified buyer (or City in lieu of a qualified buyer at its sole discretion) shall have the same choices of finish options as purchasers of other units in the project and final walk-through approval of condition of unit before close of sale. Any options provided to buyers of units shall be provided to buyer(s) of the required affordable housing units including but not limited to color and style choices for carpeting and other floor coverings. Flooring selections shall be made within 10 days of Developer's request for selection. In the event the monthly HOA fees for the affordable units exceed $100.00 for each affordable unit, Developer shall deposit $120.00 for each dollar or portion thereof of the monthly HOA fees that are in excess of $100.00 into a City administered trust to assist with future HOA fees for each affected affordable unit. The Affordable Sales Price for the low-income buyers shall not exceed affordable housing cost, as defined in Sec. 50052.5(b) (2) of California Health and Safety Code. For a household of 4, the current monthly "affordable housing cost" would be 30% times 70% of $8089,600300.00, the current median income for a household of 4 in Ventura County, divided by 12. This monthly amount includes the components identified in Section 6920 of Title 25 of the California Code of Regulations shown below. (See Section 50052.5(c) of the Health and Safety Code.) The Affordable Sales Price for a low income household of 4 would be $ 205,000.00 under current market conditions, based upon the following assumptions: Resolution No. PC-2013-589 Page 6 Low Income Buyer Household of Four Item Detail Amount Affordable Sales Price $ 205,000 Down Payment 5% of Affordable Sales $610,250 Price Loan Amount Affordable Sales Price $ 194,750 less down payment Interest Rate 6,955_0% Property Tax 1.25% of Affordable $172214/mo. Sales Price HOA $100/mo. Fire Insurance $20/mo. Maintenance $30/mo. Utilities $4162/mo. -- • - - - - - -- - ' .-- - - - -- . _ • - - - - - - _ _ - household size. The assumptions associated with the above purchase price figures for low income households include a 5% down payment, based on the Affordable Sales Price, mortgage interest rate of 5.960%, no mortgage insurance, property tax rate of 1.25%, based on Affordable Sales Price, homeowners' association dues of$100 per month, fire insurance of $20 per month, maintenance costs of $30 per month, and utilities of $171 162 per month for a household of 4, assuming a 3 bedroom unit. The Affordable Sales Price for the very low income buyers shall not exceed - - - - - -- -. - - - - - - - - - - -- - - - - - - - - - - e- -e ,, - - - lo_ 110 _ I _ Il ll - . . _ would be $104,000.00 under current market conditions, based upon the following assumptions: Very 1 ow Income Buyer Item Detail Amount Affordable Salc:P-nso $40400 5% of Affordable Sales $5,200 Resolution No. PC-2013-589 Page 7 PT-ice Lean—Amount Affordable Sales Price $98,800 less-down-payment Interest Rate 5.95% Property Tax 1.25% of Affordable $4-08/mo, Sales-Pries 1=4QA $1-00/mo. Fire Insurance $20/mo. Maintenance Utilities $171/mo. - - - - - - -- - ' - - - - _ -- . ' • e. - - - • - _ household size. •- • - _- . - - - ° • -• - the Affordable Sates Price, mortgage interest rate of 5.95%, no•- - - -" - • , - e-•- - - I I • _ • • - The Affordable Sales Price for the moderate income buyers shall not exceed•- - - _ - - - -- , - - _ II_ - - - - - - - - - - - --° 9°. - I9.9 9•• -- - - - • - - .z ! I - - - - - - • - - - - • - -- • - - - - - - - - - - . - - - -- • e . - - - . - - - be $313,000.00 under current market conditions, based upon the following assumptions: Item Detail Amount Affordable Salesicc $ 000 5% of Affordable Sales 0 Price Lean/1c40-114t Affordable Sales—Price $2-9-77a50 less-down-payment Interest Rate 5.95-% Property Tax 1.25% of Market Pace $326/mo. Resolution No. PC-2013-589 Page 8 40A-clues $-100/me Fire/casualty ins. $50/me, Maintenance Utilities $171/mo. - - - - - - - - ' .-" - - -- " - " -- - " • - - - - - . - household size.•- - " -- - - - - - .e - -°. - - -- -- - the Affordable Sales Price, mortgage interest rate of 5.95%, no • - - - - - - - - --- - - . -0., - - e • ' - - - - -• Sales Price, homeowners' association dues of $100 per month, fire unit. Developer acknowledges that changes in market conditions may result in changes to the Affordable Sales Price, down payment amounts, mortgage interest rates, and other factors for the moderate, low income and very low income buyers. Furthermore, if "affordable housing cost", as defined in Section 50052.5 of California Health and Safety Code, should change in the future, the above guidelines will be modified to achieve substantially the same result as would otherwise have been obtained had it not been changed. In the event the City, at its sole discretion purchases one or more of the affordable units from Developer in lieu of a qualified buyer, the Affordable Sales Price shall be based on a household size of 4 persons and consistent with all requirements of this subsection 6.9. Developer agrees that prior to and upon the sale of a required unit to a qualified buyer (or City in lieu of a qualified buyer as determined by City at its sole discretion), City may at its sole discretion take any actions and impose any conditions on said sale or subsequent sale of the unit to ensure ongoing affordability to moderate, low and verythe low income households and related matters. After the sale of a housing unit by Developer to a qualified buyer (or City in lieu of a qualified buyer as determined by City at its sole discretion), City, not Developer, shall have sole responsibility for approving any subsequent sale of that affordable housing unit. Developer shall pay closing costs for each unit, not to exceed six thousand dollars ($6,000.00). Beginning March 1, 2007, and on March 1st for each of fifteen subsequent years, the maximum six thousand dollars ($6,000.00)$6000--to be paid for closing costs shall be Resolution No. PC-2013-589 Page 9 increased annually by any percentage increase in the Consumer Price Index (CPI) for All Urban Consumers for Los Angeles/Orange/Riverside metropolitan area during the prior year. The calculation shall be made using the month of December over the prior month of December. In the event there is a decrease in the CPI for any annual indexing, the amount due shall remain at its then current amount until such time as the next subsequent annual indexing which results in an increase. The referenced Developer funded closing costs shall be for the benefit of qualified buyers (or City in lieu of qualified buyers as determined by City at its sole discretion for one or more of the required units) in their acquisition of a unit from Developer not Developer's acquisition of a unit from one or more third parties. The Developer's escrow cost shall not exceed the then applicable maximum amount per unit regardless of the number of escrows that may be opened on a specific unit prior to the closing of the initial sale to a qualified buyer or City in lieu of a qualified buyer. As of March 1, 2013, the Developer not to exceed paid closing cost for each unit has indexed to six thousand seven hundred and twenty-four dollars and eighty-five cents ($6,724.85). No less than thirty (30) days prior to the offering for sale to the general public of units 33 and 80 as approved by RPD 2003-02, with approximately 1600 square feet (units), Developer shall provide City with notice of said intended sale. Said notice shall include the proposed sale price. Within thirty (30) days of receiving said notice, City may purchase one or both of the above-referenced units and enter into escrow at the stated price or such other price as may be negotiated by the parties. Developer warrants that said price shall be no higher than what would be offered to a bona fide qualified purchaser from the general public. City warrants that if it exercises its right to purchase, it will purchase said units for the purpose of reselling it to a qualified first time home buyer with income not exceeding moderate income. Upon mutual agreement of the parties, said first time home buyer may be substituted for City with the requirement that the City will work with buyer to finance the purchase of the unit. Buyer gets all the same new home warranties as the purchase of any market rate unit in the Project. The Developer with the written approval of the City Manager or designee may substitute a different unit location within the Project for either unit 33 or 80 so long as the unit contains no less than 1,600 square feet. The location of the twenty (20) affordable units within the Project and the schedule for providing the affordable units by the Developer to qualified buyers or City in lieu of said buyers shall be included in the Purchase and Sale Agreement.