HomeMy WebLinkAboutReso 2016-259RESOLUTION NO. 2016-259
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AFFORDABLE HOUSING
TRANSFER AGREEMENT BETWEEN THE CITY AND
HOMEFED VILLAGE III MASTER, LLC, TRANSFERRING A
PORTION OF THE VILLAGE 3 AFFORDABLE HOUSING
UNIT OBLIGATION TO VILLAGE 8
WHEREAS, the Housing Element of the City of Chula Vista's General Plan contains an
affordable housing policy which requires that residential development with fifty (50) or more
dwelling units provide a minimum of ten percent (10%) of the total dwelling units for low and
moderate -income households, one-half of these units (5% of the total project) being designated
to low-income and the remaining five percent (5%) to moderate -income households; and
WHEREAS, HomeFed Village III Master, LLC ("Village 3 Owner') owns the property
known as Village 3 of Otay Ranch. On December 2, 2014, the City approved the Tentative
Subdivision Map CVT -13-02 for Otay Ranch Village 3 North and a portion of Village 4
("Village 3 Tentative Map") by Resolution No. 2014-237. Tentative Map Condition No. 29
requires that the Village 3 Owner enter into an Affordable Housing Agreement ("Village 3
Agreement") with the City of Chula Vista. Village 3 Owner is required to enter into a Balanced
Communities Affordable Housing Agreement acceptable to the City in satisfaction of the
Balanced Communities Affordable.Housing Policy of the City's Housing Element of the General
Plan, Condition of Approval No..7 of City Council Resolution No. 2014-234, and Tentative Map
Condition of Approval No. 29 of City Council Resolution No. 2014-237. The Village 3
Tentative Map requires Village 3 Owner to build 80 low-income housing units and 80 moderate -
income housing units ("Village 3 Affordable Housing Obligation") based upon ten percent
(10%) of the total number of residential units of 1,597 within Village 3. Village 3 Owner and the
City are entering into an Affordable Housing Agreement that requires Village 3 to begin and
complete its Village 3 Affordable Housing Obligation ("Village 3 Agreement"); and
WHEREAS, consistent with Policy No. 3.1 of the City's Housing Element of the General
Plan, the City has determined that the unique conditions for the development of Village 3
provide an unreasonable hardship for the new construction of units within said Village. The City
finds that such new construction of units would present an "unreasonable hardship to the
developer" in light of factors such as the difficulty in integrating said units due to significant
price and product disparity. As described in the Village 3 SPA Plan, the residential
neighborhoods are predominately single-family and low-density neighborhoods; and
WHEREAS, as set forth in the Village 3 SPA Plan, the Village 3 Affordable Housing
Obligation may be deferred to a future village or location within Otay Ranch Planning owned by
Village 3 Owner or its affiliate. It is the intent of Village 8 Owner and the City, by execution of
the Transfer Agreement, to allow the transfer of the Village 3 Affordable Housing Obligation for
64 low-income housing units and 33 moderate -income housing units ("Transferred Affordable
Housing Obligation") to the development of Otay Ranch Villages Eight West and 8 East
(collectively, "Village 8") as shown on Exhibit 1 and more particularly described on Exhibit 2
(the "Property") of the Transfer Agreement. Village 8 Owner owns the property known as
Village 8 and is an affiliate of Village 3 Owner: and
Resolution No. 2016-259
Page No. 2
WHEREAS, Village 3 Owner is otherwise required to develop those Village 3 affordable
housing units not transferred from Village 3 to Village 8 by this Agreement as set forth in the
Village 3 Agreement; and
WHEREAS, on December 17, 2013, the City approved the Otay Ranch Village Eight
West Sectional Planning Area (SPA) Plan for the Project by Resolution No. 2013-270.
Condition No. 7 of the Project's SPA Plan requires the Village 8 Owner to comply with the
City's Affordable Housing Plan. The SPA Plan currently provides for the construction of
approximately 2,050 total dwelling units within Village Eight West, with a requirement for
five percent (5%) of these units being designated for low-income households and five percent
(5%) for moderate -income households, consisting of 205 affordable units; and
WHEREAS, on December 17, 2013, the City approved the Tentative Subdivision Map
for Chula Vista Tract No. 09-04 for Otay Ranch Village Eight West by Resolution No. 2013-
271. Tentative Map Condition No. 21 requires that the Village 8 Owner enter into an Affordable
Housing Agreement with the City of Chula Vista prior to approval of Village 8 Owner's first
Final Map for Village Eight West; and
WHEREAS, on December 2, 2014, the City approved the Otay Ranch Village Eight East
Sectional Planning Area (SPA) Plan for the Project by Resolution No. 2014-235. Condition No.
7 of the Project's SPA Plan requires the Village 8 Owner to comply with the City's Affordable
Housing Plan. The SPA Plan currently provides for the construction of approximately 3,568
total dwelling units within Village Eight East, with a requirement for five percent (5%) of
these units being designated for low-income households and five percent (5%) for moderate -
income households, consisting of 357 affordable units; and
WHEREAS, on December 2, 2014, the City approved the Tentative Subdivision Map for
Chula Vista Tract No. 13-03 for Otay Ranch Village Eight East by Resolution No. 2014-238.
Tentative Map Condition No. 32 requires that the Village 8 Owner enter into an Affordable
Housing Agreement with the City of Chula Vista prior to approval of Village Eight Owner's first
Final Map for Village Eight East; and
WHEREAS, the City finds that the public interest would be served by allowing the
Transferred Affordable Housing Obligation to be produced or operated within Village 8 based
upon: (1) proximity to public transit; (2) proximity to employment; (3) proximity to services and
entertainment; and (4) proximity to the proposed University, which would provide access to
university services for the residents and affordable units for students and faculty. Additionally,
the provision of the Transferred Affordable Housing Obligation within the Property will not be
significantly detrimental to achieving balanced residential communities and will provide at a
minimum the equivalent number of required affordable units with comparable rent and
occupancy restrictions; and
WHEREAS, Village 8 Owner and City wish by this Agreement to assure the satisfaction
of the Village 3 Transferred Affordable Housing Obligation, on the terms described in the
Transfer Agreement; and
Resolution No. 2016-259
Page No. 3
WHEREAS, the Director of Development Services has reviewed the proposed activity
for compliance with the California Environmental Quality Act (CEQA) and has determined that
the activity was adequately covered in previously adopted/certified Final Environmental Impact
Report for the Otay Ranch University Villages Project - (FEIR 13-01).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it adopts the above Recitals and Findings and approves the resolution of the City
Council of the City of Chula Vista approving Affordable Housing Transfer Agreement between
the City and HomeFed Village III Master, LLC, A Delaware Limited Liability Company
(Transfer Agreement), in substantially the form presented, with such minor modifications as may
be required or approved by the City Attorney, a copy of which shall be kept on file in the Office
of the City Clerk, and authorizes and directs the City Manager to execute same.
Presented by
Kelly . Broughton, FASLA
Director of Development Services
Approved as to form by
L)
Glen R. Ooogins
City orney
Resolution No. 2016-259
Page No. 4
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 6th day of December 2016 by the following vote:
AYES: Councilmembers:
NAYS: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
ATTEST:
Donna R. o is, CN4e, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
Aguilar, Bensoussan, McCann, and Salas
None
None
Miesen
Mary Alas, Mayor
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2016-259 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 6th day of December 2016.
Executed this 6th day of December 2016.
Donna R. N is, CMP, City Clerk