HomeMy WebLinkAboutAGENDA REPORT 2013 0904 CCSA REG ITEM 09B ITEM 9.13.
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MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: David C. Moe II, Redevelopment Manager
DATE: August 23, 2013 (CC Meeting of 9/4/2013)
SUBJECT: Consider Resolution Directing the Planning Commission to Study,
Conduct a Public Hearing, and Provide a Recommendation on the
Proposed Amendment to Adjust the Affordable Housing
Requirement in the Development Agreement Between the City of
Moorpark and Shea Homes for Tentative Tract 5425
BACKGROUND AND DISCUSSION
On April 6, 2005, the Moorpark City Council commenced a duly noticed public hearing
on the Development Agreement (DA) between the City of Moorpark (City) and Shea
Homes (Shea) for Tentative Tract Map 5425. Following the conclusion of the public
hearing, the City Council adopted Ordinance No. 313 on April 20, 2005, approving the
DA for the construction of 101(later reduced to 99 after final design) single family
attached homes.
Section 6.9 of the DA requires Shea to construct 20 affordable units to be made
available to very low, low, and moderate income households. Below is a breakdown of
the required affordable units by income category:
6 Very Low Income
9 Low Income
5 Moderate Income
20 Affordable Units
At the time the DA was negotiated, home values were appreciating. However, between
the years 2005 and 2013, home values have declined and have not fully recovered.
During this same time period, the median income for a family of four in Ventura County
increased from $77,400.00 to $89,300.00. This depreciation of home values and
increasing median income brought the sale price of the market rate units below the sale
price of the moderate income units. This sequence of events essentially eliminated the
market to sell the moderate income units with affordability restrictions.
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Honorable City Council
September 4, 2013
Page 2
Both the City and Shea realized the problem with the marketability of the moderate
income units. After working together to come up with a solution, both staff and Shea
agreed that the best option would be to remove the moderate income unit requirement
and have Shea pay an in-lieu fee of $50,000.00 per unit or $250,000.00. Of this total
$127,000.00 would be paid in cash by Shea. The remaining $123,000.00 would be
secured by a second deed of trust to round up from 8.33 to 9 additional low income
units from converting the very low income units to additional low income units further
described in the next paragraph.
Staff and Shea also discussed the possibility of converting the very low income units to
low income units due to the difficulty of finding buyers that qualify for the City's First
Time Home Buyer Program. Due to the deep subsidy ($257,000.00) for developing a
very low income unit, the 6 very low income units ($1,542,000.00 subsidy) could be
converted to 8.33 low income units for the same subsidy. Staff believes it would be
beneficial to use $123,000.00 of the in-lieu fee to fill the gap between 8.33 to 9 low
income units. After reviewing staff's proposal to convert the 6 very low income units to
9 low income units, Shea agreed to the conversion.
If the proposed amendment to the DA is approved by the City Council, section 6.9
would be amended to:
Current Affordability Requirement Proposed Affordability Requirement
6 Very Low Income 0 Very Low Income
9 Low Income 18 Low Income
5 Moderate Income 0 Moderate Income
20 Total Affordable Units 18 Total Affordable Units
No In Lieu Fee. Shea to pay City $127,000 in-lieu Fee for
Moderate Income units.
FISCAL IMPACT
If the proposed amendment to the DA is ultimately approved by the City Council, the
City would receive an in-lieu Fee of $127,000.00 which would be deposited in the City
Affordable Housing Fund.
STAFF RECOMMENDATION
Adopt attached Resolution No. 2013 - directing the Planning Commission to
study, conduct a public hearing, and provide a recommendation on the proposed
amendment to adjust the affordable housing requirement in the Development
Agreement between the City of Moorpark and Shea Homes for Tentative Tract Map
5425.
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RESOLUTION NO. 2013-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, DIRECTING THE PLANNING
COMMISSION TO STUDY, HOLD A PUBLIC HEARING, AND
PROVIDE A RECOMMENDATION ON AN AMENDMENT TO
THE DEVELOPMENT AGREEMENT WITH SHEA HOMES,
LIMITED PARTNERSHIP
WHEREAS, on April 20, 2005, the Moorpark City Council adopted Ordinance No.
313, approving a development agreement (DA) with Shea Homes for the construction of
101(later reduced to 99 after final design) single family attached homes in Tentative
Tract 5425; and
WHEREAS, the City of Moorpark and Shea Homes desire to amend section 6.9
of the DA with respect to the provisions of the affordable housing units; and
WHEREAS, Section 15.40.120 of the Moorpark Municipal Code establishes
procedures for the amendment of a DA.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. INITIATION OF PROCEEDINGS: The City Council hereby
authorizes the initiation of proceedings to amend the Development Agreement with
Shea Homes for Tentative Tract 5425.
SECTION 2. DIRECTION TO PLANNING COMMISSION: The Planning
Commission is hereby directed to study, hold a public hearing, and provide a
recommendation to the City Council on this matter.
SECTION 3. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 4th day of September, 2013.
Janice S. Parvin, Mayor
ATTEST:
Maureen Benson, City Clerk
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